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HomeMy WebLinkAboutNovember 22, 2004OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING NOVEMBER 22, 2004 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, November 22, 2004 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. Invocation: Father A1 Backmann, Immaculate Conception Church CALL TO ORDER/ROLL CALL Mayor Wyckoff called the meeting to order at 7:05 p.m. Present: Mayor Wyckoff, Councilmember Williams, Councilmember Nawrocki, Councilmember Ericson, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Wyckoff added Consent Agenda item #14 - Work session date of November 29, 2004. Wyckoff added Items for Consideration item #1 - Collateral of Assigmrtent Nawrocki requested items #3, #6, and #12 be removed fi'om the consent agenda. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS Recognition - Make a Difference Day Projects - Rising to New Heights Ericson introduced Ted Landwehr, Rising to New Heights, to present awards for the national Make a Difference Day program. Landwehr stated that Make a Difference Day was October 24, 2004 and he introduced the three award winning projects and their participants: Marvin and John Sowada. They grow vegetables and donate them to SACCA. They also contributed $120 toward the purchase of meat projects. Mr. Sowada asked that in the future those who have received benefits from programs such as SACCA contribute, when they are able, to help others. · Northeast Bank of Columbia Heights employees collected food items for SACCA. City of Columbia Heights employees, for the second year, put together birthday baskets for SACCA. This was organized by Carole Blowers. Each group was presented with a certificate and a $30 check. Landwehr indicated that Rising to New Heights would host a Housing Fair on April 3, 2005 at the High School, including breakfast and a video clip from the Heights Theater on the City of Columbia Heights. Wyckoff asked how to become a member of Rising to New Heights. Landwehr indicated all that is necessary is an interest in Columbia Heights. The group meets at the Crest View Boulevard building the first Tuesday of the month. He invited everyone to participate in the Make a Difference Day project next year. Nawrocki questioned how many projects were submitted. Landwehr indicated three projects. CONSENT AGENDA Walt Fehst, City Manager, took the City Council through the Consent Agenda items. I) Approve Minutes for October 25 and November 8, 2004 regular City Council meetina a) Motion to approve the minutes of the October 25, 2004, regular City Council meeting as presented. b) Motion to approve the minutes of the November 8, 2004, regular City Council meeting as presented. City Council Minutes November 22, 2004 Page 2 of 24 2) Accept Boards and Colmnissions Meeting Minutes a) Motion to accept the November 1, 2004 minutes of the Library Board. b) Motion to accept the November 1, 2004 minutes of the Traffic Colrnnission. c) Motion to accept d) Motion to accept e) Motion to accept f) Motion to accept g) Motion to accept the July 29, 2004 special minutes of the EDA. the September 21, 2004 minutes of the EDA. the October 25, 2004 special minutes of the EDA. the September 27, 2004 special minutes of the EDA. the September 15, 2004 special minutes of the EDA. 3) Adopt Resolution No. 2004-80, being a Resolution canceling the Monday, December 27, 2004 regular City Council meeting. Removed 4) Adopt Resolution No. 2004-82, being a Resolution authorizing the sale of $2,000,000 general obligation improvement bonds series 2004A The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's approxhnately $1,985,000 General Obligation Tax Increment Refunding Bonds, Series 2004A. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in Exhibit A attached to the Resolution. After due consideration of the proposals, Member Williams then introduced the following Resolution and moved its adoption: In accordance with the official Terms of Proposal the following adjustments were made: Principal Amount: Reduced by $15,000 to $1,985,000 Maturities: 2006 maturity reduced $5,000 to $600,000 2007 maturity reduced $5,000 to $610,000 2008 maturity reduced $5,000 to $625,000 Minimum Purchase Price: Reduced to $1,965,150 Shelly Eldridge, Ehlers and Associates, indicated five bids were received with United Bankers Bank low bid with 2.4752 percent true interest costs. This was a very competitive bid and allows the bond to be lowered by $15,000, with a cash flow savings of $335,000. Eldridge stated the close of the bond sale would be December 16. Columbia Heights received an A1 rating from Moody's Report and noted a sound financial operation with healthy reserves, despite budget deficits due to State Aid cuts. Columbia Heights also has a rapid rate of principal retirement. Motion to waive the reading of Resolution No. 2004-82 there being ample copies available to the public. Motion to adopt Resolution No. 2004-82, being a Resolution authorizing the sale of $2,000,000 general obligation improvement bonds series 2004A. Resolution attached to the end of this doc~tment. 5) Approve transfer of funds fi'om the General Fund to the Police Department Budget to Reimburse Overtime Fund Motion to transfer $6,076.75, the total amount received from Unique Thrift Store, Immaculate Conception Church, Robert Manson, Attorney at Law, Independent School District #13, Columbia Heights High school, and Keith Jotmson for off duty security work and/or testifying in court, fi'om the General Fund to the Police Department 2004 budget under line #1020, Police Overtime. City Council Minutes November 22, 2004 Page 3 of 24 6) Establish a Public Heating date of December 13, 2004 - Reallocating of CDBG funds Removed 7) Accept Change Order No. 1 and Final Payment for Miscellaneous Concrete Proiect #0400 Motion to authorize Contract Change Order No. 1 for additional work added to the contract by the City to Ron Kassa Construction, Inc. in the amount of $8,164.30 with funding out of the appropriate funds. Motion to accept the work for 2004 Miscellaneous Concrete Repairs and Installations, City Project #0400 and authorize final payment of $4,128.00 to Ron Kassa Construction, Inc. of Elko, Minnesota. 8) First reading of Ordinance No. 1478, being an Ordinance changing the street name of Rainer Pass to Rainier Pass Kevin Hanson, Public Works Director, stated this change is by petition request and would correct the street name, which was incorrectly recorded at Anoka County. Nawrocki asked how the post office would handle this. Kelzenberg stated they would change their database to allow for either spelling. Nawrocki asked if the Reservoir Boulevard sign has been corrected. Hansen stated he believed it was, but would check on it. Motion to waive the reading of Ordinance No. 1478, there being ample copies available to the public. Motion to set the second reading of Ordinance No. 1478 being an Ordinance changing the street name of Rainer Pass to Rainier Pass for December 13, 2004 at approximately 7:00 p.m. in the Council Chambers. 9) Approve final payment for the Supervisory Control and Data Acquisition (SCADA) System to Instrument Control Systems. Fehst stated this is for when we have an emergency with the pump or sewage station. Previously the telemetry station would malfunction and we would have to call people out. This will reduce a large amount of overtime. Motion to accept the work for the Supervisory Control and Data Acquisition (SCADA) System and to authorize final payment of $2,270 to Instrument Control Systems of Plymouth, MN. 10) Establish a Heating Date of December 13, 2004 for revocation or suspension of rental property license at 1308-10 Circle Terrace Blvd., 1132-1134 40th Avenue and 4927 & 4935 University Avenue N.E. Motion to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Edward Fragale at 1308-10 Circle Terrace Blvd. N.E. Motion to Establish a Hearing Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Myrna Bourcy at 1132-1134 40th Avenue N.E. Motion to Establish a Heating Date of December 13, 2004 for Revocation or Suspension of a License to Operate a Rental Property within the City of Columbia Heights against Haji Azam at 4927 & 4935 University Avenue N.E. 11) Approve Rental Housing Licenses Applications City Council Minutes November 22, 2004 Page 4 of 24 Motion to approve the items listed for rental housing license applications for November 22, 2004. Nawrocki stated concern expressed by a citizen on egress access to 3808 Reservoir Boulevard and questioned if access is checked prior to licensing. He also referred to the operation of a car cleaning business at this site, which was to have been stopped. Police Chief Tom Johnson stated that we have sited them several times. 12) Approve Business License Applications Removed. 13) Approve Payment of Bills Motion to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 110578 through 110713 in the amount of $1,005,292.36. Motion by Williams, second by Ericson, to approve the Consent Agenda items, with the exception of items #3, 6, 12, 14. Upon vote: Ayes: Wyckoff, Willimns, Nawrocki, Ericson, Kelzenberg. Motion carried. Item #3 Adopt Resolution No. 2004-80, being a Resolution canceling the Monday, December 27, 2004 regular City Council meeting. Wyckoff indicated this would allow for only one Council meeting in December. There will be an EDA meeting on December 16. Fehst stated this would be to pledge the increment toward the bond payments. Ericson stated the date was moved because of the holidays. Fehst indicated staffwould propose a five minute EDA meeting prior to December 13th for this purpose. Nawrocki stated opposition to canceling the last City Council meeting in December, as it is necessary to complete end of the year business. He expressed concerned that there has not been enough time scheduled to discuss the budget. Fehst listed items for the November 29, 2004 work session agenda as follows: budget, Values First, 2 a.m. bar closing, and water rates for duplexes. Nawrocki stated that Values First was discussed at the last City Council meeting. Line items for each department have not been discussed. Fehst stated that other Councilmembers are not interested in line item discussions and that Values First is a budget discussion item. Barb Warren of Values First was present at the Council meeting to pass out awards. The Star Bar has requested a 2 a.m. bar closing, which Council asked to discussed at a work session. This could be delayed until January. Duplex discussion would be on licensing and nonconfonuing use. Nawrocki indicated the work session should be reserved for budget discussion. Fehst indicated the agenda could be cleared. Nawrocki stated that there is merit to the Values First progq'am, but it is a matter of needs; the $5,000 could go toward an additional police officer. Nawrocki asked that individual departments work to lower their budgets as the Council has with their own budget. Fehst indicated that has been attempted by all departments. Fehst stated his recmmnendation to freeze the 2005 and 2006 budgets at the current level. Nawrocki indicated that the last Monday in December should be committed to the budget and reiterated he is against canceling the last meeting in December. Fehst indicated the budget would come before the City Council on December 13th. Motion by Ericson, second by Kelzenberg, to waive the reading of Resolution No. 2004-80, there being ample copies available to the public. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, aye; Wyckoff, aye. 5 Ayes. Motion carried. City Council Minutes November 22, 2004 Page 5 of 24 Motion by Ericson, second by Kelzenberg, to adopt Resolution No. 2004-80, being a Resolution canceling the Monday, December 27, 2004 regular City Council meeting. Ericson stated this action is similar to last year, and that Councilmembers can be organized to finish business so that staff and Councihrtembers can enjoy the holidays. Nawrocki stated that more time is necessary to discuss the budget. Historically, the last meeting in December has been canceled, but he has been told this meeting is necessary to pay bills. Williams questioned when the budget must be finalized. Bill Elrite, Finance Director, indicated the levy must be certified to Anoka County by December 28th. Wyckoff stated that the Truth In Taxation meeting is December 6th. Williams asked if approval on December 27th would be too late. Ericson stated that, if necessary, she would rather meet sooner on a Tuesday or Wednesday. Williams indicated that line item consideration of the Council budget was worth it, and Councilmembers should lead by example. Fehst indicated that Council has a larger contingency fund, and it is up to the Council to indicate service levels. Ericson stated the desire to have all information prepared before the Truth in Taxation hearing. Nawrocki expressed desire for more details. Fehst indicated any further reductions would be personnel and services. Wyckoff stated there was a motion on the floor to hold only one Council meeting in December. Fehst refen'ed to the significant loss of funds, utilizing budget reserves and looking for other revenue sources. Nawrocki stated that residents do not agree with a 20 percent tax increase. Wyckoff stated her opinion that it is improper for Councilmembers to make line item cuts, as we do not know how to run these departments. We hire excellent people who should be allowed to do their job. Wyckoff called for the question. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 Ayes - 2 Nays. Motion carried. RESOLUTION NO. 2004-80 BEING A RESOLUTION CANCELING THE CITY OF COLUMBIA HEIGHTS REGULAR CITY COUNCIL MEETING OF MONDAY, DECEMBER 27, 2004 WHEREAS: The City of Columbia Heights offices are closed on Thursday, December 23, 2004 and Friday, December 24, 2004, and; WltEREAS: The City Council has agreed to cm~cel the regular Council meeting scheduled for Monday, December 27, 2004; NOW, THEREFORE, BE IT RESOLVED, that all interested parties be advised of this change. Item #6 Establish a Public Hearing date of December 13, 2004 - Reallocating of CDBG funds Nawrocki disagreed with demolition of the Burger King property, as we do not know what to do with the property. Motion by Ericson, second by Kelzenberg, to establish a Public Hearing date for December 13, 2004 for the purpose ofreallocating CDBG funds fi'om the sale of 4607 Tyler Street NE for the demolition of the City Council Minutes November 22, 2004 Page 6 of 24 Burger King Restaurant located at 3939 Central Avenue and the MGS Building at 322 40th Avenue NE, Columbia Heights. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff aye. 3 ayes - 2 nays. Motion carried. Item #12 - Approve Business License Applications Nawrocki stated that he is affiliated with the VFW on the license list and it would be inappropriate for him to vote on this item. Motion by Nawrocki, second by Williams, to approve the items as listed, except the VFW request, on the business license agenda for November 22, 2004 as presented regarding the new licenses for 2004 and the renewals for 2005. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Ericson, second by Williams, to approve the VFW license renewal request for 2005. Upon vote: Kelzenberg, aye; Williams, aye; Ericson, aye; Nawrocki, abstain; Wyckoff, aye. 4 ayes - 1 abstention. Motion carried. #14 November 29 Work Session Wyckoff recommended the November 29, 2004 work session be for budget review purposes only. Wyckoff indicated her interest to establish a Citizens Academy through the Cmmnunity Development Department and to continue being active in the community. She will present the proposal in writing. Motion by Ericson, second by Nawrocki, to establish a work session meeting on November 29, 2004 to discuss budget issues. Upon vote: Ayes: Wyckoff, Willimus, Nawrocki, Ericson, Kelzenberg. Motion carried. Wyckoff requested that Barb Warren be made aware that she does not need to attend this meeting. PUBLIC HEARINGS - none ITEMS FOR CONSIDERATION Other Ordinances and Resolutions 1) Collateral Assignment Brace Nedegaard, Nedegaard Construction, distributed a Collateral Assigmnent of Development Agreement with Colmnunity National Bank regarding Grand Central Lofts and indicated this request is relative to his obtaining a new business pmntner, Dave Kloeber, Jr., in New Heights LLC. This has been reviewed and approved by the City Attorney. He stated that Kloeber, Jr. would be the owner and he would be the managing partner (50/50). Ericson stated that this assigmnent ackmowledges Nedegaard as the same company, with a new partner. Nawrocki questioned if this changes any liability or requirements to the developer. Jim Hoeft, City Attorney, indicated it does not; it only brings in a new partner. Hoeft recommended Council approve the assigmuent and authorize the City Manager and Mayor to execute this document. Motion by Nawrocki, second by Williams, to approve the Collateral Assigmnent as presented and authorize the Mayor and City Manager to enter into a contract for the same. Upon vote: Ayes - Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. City Council Minutes November 22, 2004 Page 7 of 24 2) Adopt Resolution No. 2004-52, being subdivision Request for 1226 43''d Avenue NE Wyckoff stated this was tabled 60 days ago. Pat Smith, City Planner, stated that the applicant, Lori Karnes, was present. The request is for a lot split at 43rd and Pierce Street. The lot next to Pierce Street would contain a single home and the new lot would be considered for a duplex, as allowed in this R2 district. The Planning and Zoning Commission (P&Z) held a public hearing on September 12, 2004 and approved the request, 4 ayes, 1 nay. Staffrecormnends approval of the resolution subject to the four conditions which Smith read. Wyckoff asked Hoeft to explain why the City Council's hands are tied on this issue. Hoeft stated that the applicant meets the ordinance and City Code requirements for a lot split. The ability to build on the lot would come with the building penrtit review, which does list soil condition requirements. Soil conditions are not a topic relative to a lot split. Wyckoff acknowledged resident complaints of soil conditions and excess size of the proposed house, but stated that requirements have been met and cannot be refused. Hoeft indicated there are other homes in the area on the same type of soil. Willimns asked if this could be tabled again. Hoeft stated no. Wyckoffread from the Cormrtunity Development Director's memo regarding changing the current ordinance to down zone these areas to R1. Legal issues would arise from existing duplexes becoming non-conforming. Wyckoff indicated displeasure with allowing large duplexes in a single family area, but there is no legal recourse for denial. Wyckoff asked Ms. Karnes if she would withdraw her request for the winter. Karnes stated she would not withdraw, as the zoning could be changed in that time period. Karnes indicated willingness to discuss sale of the property with the City. Wyckoff questioned possible purchase by the neighbors. Karnes did not feel that was possible. Nawrocki question Smith on maximum lot coverage. Smith indicated 30 percent, for which the planned structure would qualify. Hoeft stated that concern for the structure size is not part of the lot split request. Nawrocki indicated the soil in this area is bad, and other homes have been removed for that reason. Properties have also gone tax delinquent for this reason. Nawrocki stated it would be a mistake not to consider the status of the land prior to a lot split. Kelzenberg agreed with Councilmember Nawrocki, but stated that the request is for a lot split, and the Attorney has indicated the request meets the requirements. Ron Reichenberger, 1208 43rd Avenue, stated that at the last Council meeting it was indicated Staff would look into soil related water and sewer problems. Fehst stated this was looked at, but the question was regarding down zoning in the City. Wyckoff questioned drainage from the property. Hoeft stated that new lots are required to have drainage and utility easements. Ericson questioned if the park dedication fee is collected at the time of lot split or building permit. Fehst stated at the time of building permit application. Motion by Ericson, second by Kelzenberg to waive the reading of Resolution No. 2004-52, there being ample copies available to the public. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Ericson, second by Kelzenberg, to adopt Resolution 2004-52, a resolution approving a lot split of the property at 1226 43rd subject to the following conditions of approval that are deemed necessary to protect the public interest and ensure compliance with the provisions of the Zoning Ordinance: City Council Minutes November 22, 2004 Page 8 of 24 1. The applicant shall provide required utility and drainage easements for all newly created lots and be responsible for the cost of filing and recording written easements with the Anoka County Recorder's Office. 2. The applicant shall pay parkland dedication fees in the amount of $2,195 per lot for each of the two lots newly created lots. This fee is payable at the time of building permit. 3. Should soil conditions on the property wan'ant, information as to how soil conditions will be corrected shall be submitted to the Building Official along with the building permit application. 4. Upon approval of a minor subdivision, the applicant shall be responsible for filing the subdivision survey with the Anoka County Recorder's Office. The minor subdivision shall become invalid if not filed with the Anoka County Recorder within one (1) year of the date of the City Council action. Upon vote: Kelzenberg, aye; Williams, nay; Ericson, aye; Nawrocki, nay; Wyckoff, aye. 3 ayes - 2 nays. Motion carried. Wyckoff stated she was against this project, but felt no other recourse than to approve the application. She asked Ms. Karnes to work with the City, residents, or GMAC regarding purchase of the property. Karnes promised to discuss this with Mr. Streetar. RESOLUTION NO. 2004-52 SUBDIVISION REQUEST I, Laurie Karnes of LEK Holding Company, hereby request a split of PIN 36 30 24 24 0153 Legally described as: The west 60.00 feet of the North 150.00 feet of Lot 6, and the east 70.00 feet of Lot 7, lying north of the south 165.00 feet; All in Block 3, Reservoir Hills, Anoka County, Minnesota. THE DESCRIPTIONS HENCEFORTH TO BE: The west 60.00 feet of the north 150.00 feet of Lot 6, Block 3, Reservoir Hills, Anoka County, Minnesota. Subject to easements of record. The east 35.00 feet of Lot 7, Block 3, Reservoir Hills, Anoka County, Mhmesota, lying north of the south 165.00 feet of said Lot 7. Subject to easements of record. The west 35.00 feet of the east 70.00 feet of Lot 7, Block 3, Reservoir Hills, Anoka County, Minnesota, lying north of the south 165.00 feet of said Lot 7. Subject to easements of record. Be it further resolved that special assessments of record in the office of the City of Columbia Heights as of this day, against the above described property, are paid. Any pending or future assessments will be levied according to the new split as approved this day. Any lot split given approval shall become invalid if the resolution, motion or other Council action approving the said lot split is not filed with the County Recorder wiflfin one (1) year of the date of the Council action. 3) Adopt Resolution No. 2004-79, being a resolution regarding the labor agreement between the City of Columbia Heights and Law Enforcement Labor Services Local 311. Linda Magee, Assistant to the City Manager, indicated the Resolution accepts the Arbitrators Award on issues turned over to arbitration. Magee read the ten items resolved by arbitration. Motion by Nawrocki, second by Williams, to waive the reading of Resolution No. 2004-79, there being ample copies available to the public. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution No. 2004-79, being a resolution regarding the labor agreement between the City of Columbia Heights and Law Enforcement Labor City Council Minutes November 22, 2004 Page 9 of 24 Services Local 311. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. RESOLUTION 2004-79 REGARDING LABOR AGREEMENT BETWEEN CITY OF COLUMBIA HEIGHTS AND LAW ENFORCEMENT LABOR SERVICES, LOCAL 311 BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights that: WHEREAS, negotiations have proceeded between Law Enforcement Labor Services, Local 311, representing Police Officers of the City's Police Department, and members of the City' s negotiating team, and said negotiations have resulted in an impasse between the parties on the following issues as certified by the Bureau of Mediation Services: 1. Wages- Amount of Increase 2004 2. Wages- Amount of Increase 2005 3. Wages - Differential Amount Investigators 4. Wages - Differential Amount School Liaison Officers 5. Wages- Differential Amount Corporals 6. Licensure - Payment of License Fee 7. Insurance - Amount of Employer Contribution 2004 8. Insurance - Amount of Employer Contribution 2005 9. Longevity - Amount of Longevity 2004 10. Longevity - Amount of Longevity 2005 WHEREAS, an arbitrator ~vas selected by the parties to determine such issues; and WHEREAS, the arbitration hearing resulted in the following, effective January 1, 2004, for Law Enforcement Labor Services, Local 311, Police Officers of: 1. Wages - Amount of Increase 2004: 2% (effective July 1, 2004) 2. Wages - 2Mnount of Increase 2005: 2% (effective January 1, 2005) 3. Wages - Differential Amount Investigators: Increased from $110/month to $125/month 4. Wages - Differential Amount School Liaison Officers: Increased from $110/month to $125/month 5. Wages - Differential Amount Corporals: Increased from $11 O/month to $125/month 6. Licensure - Payment of License Fee: City shall pay POST licensing fee when due 7. Insurance - Amount of Employer Contribution 2004: $535/month (no change from 2003) 8. Insurance- Amount of Employer Contribution 2005: $555/month 9. Longevity- Amount of Longevity 2004: No change 10. Longevity-Amount of Longevity 2005: No change BE IT FURTHER RESOLVED, that the Mayor and City Manager are hereby authorized to enter into a contract with Law Enforcement Labor Services, Local 311, Police Officers, effective January 1, 2004 - December 31, 2005, in accordance with the arbitrator's award, and such contract is available for inspection at the office of the City Manager. Bid Considerations 1) Adopt Resolution No. 2004-81, being a Resolution for the 2004 Water Tower Fencing and Restoration to reject the bids and re-advertise the project in the first quarter of 2005. Kevin Hansen, Public Works Director, stated that previous approval to bid for an eight foot high water tower property fence, similar to Jackson pond, was let with the only bid received at 30 percent above the estimate. Hansen requested denial of this bid and permission to re-bid in the spring of 2005. Williams indicated this is the first bid he has ever been asked to reject. Nawrocki stated that Jackson Pond was to have screening, which is still not there. He asked if there would be screening on the water tower fence. Hansen stated there would not be, for security purposes. The intent is to put wood fencing next to the sprint PCS substation for the property owner to the north. The 40 foot wood fence was part of the bid. Hansen stated that the intent at Jackson Pond is to screen with landscaping, which has been planted. Hansen indicated screening is not necessary on the Quincy Street side. City Council Minutes November 22, 2004 Page 10 of 24 Motion by Nawrocki, second by Kelzenberg, to waive the reading of Resolution No. 2004-81, there being ample copies available to the public. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Nawrocki, second by Ericson, to Adopt Resolution No. 2004-81, being a Resolution for the 2004 Water Tower Fencing and Restoration, City Project No. 0307 to reject the bids and authorize re-advertise the project in the first quarter of 2005. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. RESOLUTION NO. 2004-81 BEING A RESOLUTION REJECTING THE BIDS FOR THE 2004 WATER TOWER FENCING AND RESTORATION PROJECT NO. 0307 WHEREAS, the City of Columbia Heights City Council ordered the bidding for the 2004 Water Tower Fencing and Restoration, City Project No. 0307, m~d WHEREAS, a formal bid opening was held on November 3, 2004, at 10:00 a.m., and WHEREAS, a single bid was received, and WHEREAS, the lowest bid is 30 percent over the Engineer's Estimate. NOW THEREFORE BE IT RESOLVED: The 2004 Water Tower Fencing and Restoration Project No. 0307 bid received November 3, 2004, be rejected and staff be authorized to re-advertise the project in the first quarter of 2005. Other Business 1) Renewal of Cigarette/Tobacco Sales License for Salem Tobacco and Jerusalem Caf6 Chief Johnson indicated the background check for Mr. Salem and associates at Salem Tobacco indicated no problem, but an article in the October 16, 2004 issue of the Star Tribune found he plead guilt to a bust out scheme. Johnson explained the scheme of mail fraud. Mr. Salem plead guilty in a federal court. Johnson read that portion of the City Ordinance which allows denial on this basis. Johnson stated that the license request for Jerusalem Market lists Mr. Salem as a manager. Kelzenberg questioned if they were also selling tobacco to minors. Johnson stated that was in a previous year. Wyckoff questioned the Jerusalem Market license. Johnson stated that the owner could apply if Mr. Salem was removed fi'om the position. Motion by Williams, second by Kelzenberg, to deny the 2005 application for a Cigarette/Tobacco Sales license for Mr. Adel Salem dba Salem Tobacco operating at 2325 37th Place NE based on the recommendation of the Police Departlnent. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Motion by Williams, second by Kelzenberg, to deny the 2005 application for a Cigarette/Tobacco Sales License for Ms. Aquel and Mr. Salem dba Jerusalem Caf6 operating at 4921 Central Avenue NE based on the reconuuendation of the Police Department. Upon vote: Ayes: Wyckoff, Williams, Nawrocki, Ericson, Kelzenberg. Motion carried. Williams stated this was a sharp catch by the Police Department. Johnson gave credit to Shelley Hanson, Permit Clerk, as she found the newspaper article. ADMINISTRATIVE REPORTS Report of the City Manager Willimrts asked if there was a way to relieve neighborhoods of an excess amount of cars. Fehst stated there is an ordinance in Bloomington that limits the number of vehicles owned to the number of licensed drivers in the home - plus one, which would not necessarily solve the problem. This can be fo~wvarded to the Planning and Zoning Conunission. City Council Minutes November 22, 2004 Page 11 of 24 Fehst addressed the request for relocation fees on the purchase of the building on 40th Avenue. He indicated that Steve Bubul, Attorney to the EDA, advises that this was not the proper location for a church. Staff believes they may file suit. Nawrocki referred to an agreement between the owner and the church group and requested that the matter be reviewed to protect the City. Fehst stated that we took due diligence and that they clearly had an illegal use. Wyckoff stated that they are still in the building. Fehst indicated his oldest son was married this weekend. Nawrocki referred to the width of the new fire vehicle making it difficult to maneuver on some streets with parking allowed on both sides. Fehst stated there are problematic areas such as Circle Terrace and Tyler. He stated that residents are not interested in going to an odd/even street parking system. Wing plows also have problems and ding several cars a year. Nawrocki indicated that the current system of no parking in the winter months clears the problems. Fehst stated that residents have been advised of the parking rules for this year. Nawrocki again brought up the need to obtain purchase orders prior to purchases. Fehst stated that a few departments could improve on this. Nawrocki stated that he asked for a monthly update on all costs in the industrial park. Fehst indicated this has been given to the Finance Director. Nawrocki referred to a request for remaining Christmas decorations to be placed on Fifth Street. Fehst stated that there were no extra decorations. Nawrocki referred to the request brought before the Traffic Co~xnrtission for a yellow strip in front of the building at 715 39th Avenue to control traffic. Nawrocki stated that there is an old Quonset building at 683 39th Avenue that is an eyesore and should be cleaned up. Nawrocki stated there are still cars on the street at the 51st and University car lot. Fehst stated that staff has met with the gentleman and advised him that he would be sited unless the lot is cleared to the 15 cars allowed. Nawrocki stated that debris, at 4232 5th Street fi'om the burned garage, needs to be cleaned up. Williams commented that the Canada goose program was a busy one in 2004, compared to last year. Twelve were trapped for removal. He questioned the dollar amount for each. Report of the City Attorney - none CITIZENS FORUM - none COUNCIL CORNER Nawrocki Noted the passing of Joe Klis, who was active in youth activities and the Boosters. Attended, along with Williams and Kelzenberg, the Neighborhood Block Captain meeting. Okerstrom is revitalizing the program. The Chief spoke on the Civilian Emergency Response Team. 30-35 people attended. If interested, call the Police Department. Attended the Legislative Policies review meeting. Has information on what the League of Minnesota Cities will advocate on our behalf. City Council Minutes November 22, 2004 Page 12 of 24 · Refen'ed to quote in the local paper by the Mayor and disagreed. Ericson Women of Today will hold a holiday carnival for children at Murzyn Hall Congratulated the 7th grade boys traveling basketball team for winning their tournament this weekend. · Wished everyone a Happy Thanksgiving. Take tilne to be thankful for things in our colmnunity. Williams Excited about revitalizing the Block Captain prograln. Citizens are the eyes and ears of our city. In two years we will be effective, and in four years very effective. The Citizens Emergency Response Program will also be a good thing. Chief Johnson stated they are looking for volunteers, approximately 1,800 people or ten percent of the population to be trained. Officers have been trained to be trainers. · Saturday, November 27th, Gary & Jaci Peterson will host a COlmnunity holiday party. · Continue to pray for the peace and health of our citizens. Kelzenberg Impressed with Johnson and Okerstrom and the Block Captain meeting. Encouraged residents to keep an eye on their neighbor's property. Residents should be aware we are short of police officers. If residents see suspicious activity, call the Police. Mail early! Have a nice Thanksgiving. Wy&off The last Wednesday with the Mayor will be held on December 1 st at the Library. The speaker will be Public Works Director Kevin Hanson. There is an opening on the Planning and Zoning Commission, the Library Board and Charter Cormnission. Don Murzyn Jr., EDA Chairperson, has recormnended the EDA, which currently has five council members and two residents, be restructured to two council members and five residents. If interested, contact Bob Streetar. Citizens should say how we want our town developed. - The City Managers budget would be a 14.35 percent increase, but Council vote allows for a 20 percent increase. The manager's recommendation would include one police officer, a building inspector, and the rehire ofa firefighter. If the levy is passed at 20 percent, we would retain the Special Project Coordinator at full time, hire another police officer, retain the Library smrnner reading program, performers, essential supplies and periodicals. The Library cut is $4,760. Allowing for these add backs would increase each tax bill by $6 per month. Copies of this information are available from the Deputy City Clerk. · Encouraged everyone to attend the budget work session next Monday night. ADJOURNMENT Mayor Wyckoff adjourned the meeting at 9:40 p.m. ¢atricia Muscovitz, CMC { Deputy City Clerk/Council Secretary City Council Minutes November 22, 2004 Page 13 of 24 Resolution 2004-82follows: CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO. 2004-82 A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A; FIXING TItEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Com~cil (the "City Council") of the City of Colmnbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. It is hereby determined by the City Council that: (a) the City and the Housing and Redevelopment Authority in and for the City (the "HRA") duly established the Central Business District Revitalization District (Nos. A3 and C7) and University Avenue Redevelopment Project (No. C8) (collectively, the "TIF Districts") pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the "TIF Act"); (b) the control, anthority and operation of the TIF Districts was transfelTed from the HRA to the Columbia Heights Economic Development Authority, a body corporate and politic and a political Subdivision of the State of Minnesota (the "EDA") by a resolution of the City Council of the City pursuant to Minnesota Statutes, Section 469.094, as amended; (c) the City is authorized by Section 469.178, Subdivision 2, of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development and redevelopment costs (the "Costs") related to the District as identified in a redevelopment plan and tax increment financing plan (collectively, the "Plans") for the District; (d) the City is authorized by the TIF Act and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), including Section 475.67, Subdivision 3, of the Act, to issue and sell its general obhgation bonds to refund obhgations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or deskable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (e) Section 475.67, Subdivision 13 of the Act permits the sale of crossover reftmding obligations by the City prior to the date on which the obligations to be refunded may be called for redemption; (f) it is necessary and desirable to reduce debt service costs of the City and therefore the City will issue its General Obligation Tax Increment Refunding Bonds, Series 2004A ("Bonds"), in the original aggregate principal amount of $1,985,000 to refund the City's outstanding General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Prior Bonds"), dated August 23, 1990, the proceeds of which were used by the City to finance a portion of the cost of a public redevelopment project (the "Project") in the District; (g) Prior Bonds in the accreted principal amount of $2,724,235.62 are cmTently outstanding on the date hereof and are subject to redemption at the option of the City on September 1, 2005; (h) the Mayor and City Manager are anthofized and directed to execnte a Tax Increment Pledge Agreement, dated on or after Decelnber 1, 2004 (the "Pledge Agn'eement"), between the City and the EDA in substantially the fon~ on file with the City on the date hereof; and (i) pursuant to the Pledge Agreelnent, the EDA pledges certain revenues derived from the TIF Districts (the "Pledged Tax Increment") to the payment of principal of, premium, if any, and interest on the Bonds, subject to the terms and conditions described in the Pledge Agreelnent. City Council Minutes November 22, 2004 Page 14 of 24 1.02. The proposal of United Bankers' Bank (the "Prrrchaser") to purchase the Bonds described in the Official Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $1,979,064.85, for Bonds bearing interest as follows: Date of Interest Date of Interest Matm'it¥ Rate Maturity Rate 2006 2.00% 2008 2.50% 2007 2.25% 2009 2.75% True interest cost: 2.4755% 1.03. The sum of $0 being the amount proposed by the Purchaser in excess of $1,965,150 will be credited to the Series 2004A Debt Service Fund hereinafter created. Ehlers and Associates, Inc., on behalf of the City Finance Dh'ector of the City, is directed to retain the good faith check of the Purchaser pending completion of the sale of the Bonds, and to rettLrn the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to the Act in the original aggregate principal amormt of $1,985,000,' originally dated December 16, 2004, in ln/nilmUn denominations of $5,000 each or any integral multiple thereof, numbered No. R-l, upward, bearing interest as above set forth, and which matm'e serially on September 1 in the years and amounts as set forth below: Date of Principal Date of Principal Maturity Amormt Maturity Adnormt 2006 $600,000 2008 $625,000 2007 610,000 2009 150,000 1.05. Optional Redemption. The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such matm'ity to be redeemed. Prepayments of the Bonds will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Fom~. The Bonds will be issued only in fully registered form. The interest thereon and, upon sm-render of each Bond, the principal amount thereof, is payable by check or ch'afl issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of their date of issuance last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, tmless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the fn'st interest payanent date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on March 1 and September 1 of each year, commencing March 1, 2005, to the registered owners of record thereof as of the close of business on the fifteenth (15th) day of the prior month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the fights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar mnst keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. City Council Minutes November 22, 2004 Page 15 of 24 (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrmnent 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 will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amotmt 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 that interest pa3qnent date. (c) Exchange of Bonds. When Bonds are sun'endered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amotmt and matm'ity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon la'ansfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as dkected by the City. (e) hnproper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally autliorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgnnent, deems hnproper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and pa3qnents so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sun~ or sums so paid. (g) Taxes, Fees and Charges. The Registrar may flnpose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to rehuburse the Registrar for any tax, fee or other govermnental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, matm'ity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in counection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it tliat the Bond was destroyed, stolen or lost, and of the ownerslfip thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar nmst be named as obligees. Bonds so sm-rendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publislfing the notice if required by law. Failm'e to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager 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 attthorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and City Council Minutes November 22, 2004 Page 16 of 24 customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Dh'ector must transmit to the Registrar money sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatm'es of the Mayor and the City Manager, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facshnile of whose signatm'e appears on the Bonds ceases to be such officer before the delivery of a Bond, such signature or facshnile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any pm'pose or entitled to any secm:ity or benefit tinder this Resolution unless and tmtil 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 a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and anthenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of de£mitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Fonn of Bond. 3.01. The Bonds will be printed or typewritten in substantially the form on the following page. No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND SERIES 2004A Date of Original Issue Interest Rate Maturity Date CUSIP __% September 1, 20__ December 16, 2004 Registered Owner: Cede & Co. Principal Amount: Dollars The City of Colmnbia Heights, a duly organized and existing municipal corporation in Anoka Cormty, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified 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 March 1 and September 1 in each year, colmnencing March 1, 2005, to the person in whose name this Bond is registered at the close of business on the f'rffeenth (15th) day (whether or not a business day) of the prior month. The interest hereon and, upon presentation and sma'ender hereof, the principal hereof are payable in lawful money of the United States of America by check or ch'aft by U.S. Bank National Association, Sabot Paul, Minnesota, as Bond Regista'ar, Paying Agent, Transfer Agent and Authenticating Agent, 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 Ihith and credit and taxing powers of the City have been and are hereby h'revocably pledged. City Council Minutes November 22, 2004 Page 17 of 24 The City may elect on March 1, 2008, and on any day thereafter to prepay Bonds due on or after September 1, 2008. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust Company, New York, New York ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepaylnents of the Bonds will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $1,985,000 all of like original issue date and tenor, except as to number, matnrity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on November 22, 2004 (the "Resolution"), for the pm-pose of providing money to refund the outstanding principal mnount of certain general obligation bonds of the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Mi~mesota, including Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and Minnesota Statutes, Chapter 475, as amended, and the principal hereof and interest hereon are payable prflnarily fi'om tax increments resulting fi'om increases in taxable valuation of real property in certain tax increment financing districts in the City as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby confen'ed. The Columbia Heights Economic Developinent Authority, a body corporate and politic (the "EDA"), has pledged certain tax increments to the City for payment of the principal of and interest due on the Bonds pursuant to the terms of a Tax Increment Pledge Agreement, dated on or after December 1, 2004, by and between the City and the EDA. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency of tax increments pledged to the payment of the Bonds, which taxes may be levied without lhriitation as to rate or amount. The Bonds of tiffs series are issued only as fully registered Bonds in minimum denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain lhnitations set forth therein, this Bond is ti-ansferable upon the books of the City at the principal office of the Bond 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 Bond Registrar, duly executed by the registered owa~er or the owner's attorney; and may also be sttrrendered 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 stone rate and maturing on the same date, subject to reflnbm:sement for any tax, fee or goverrnnental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and ti'eat 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 Bond Registrar will be affected by any notice to the contrm3~. The City has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year 2004. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be perforn~ed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its teruas, have been done, do exist, have happened and have been performed as so requh'ed, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter lhnitation of indebtedness. This Bond is not valid or obligatory for any pin'pose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by Inanual signature of one of its authorized representatives. City Council Minutes November 22, 2004 Page 18 of 24 IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Cotmcil, has caused this Bond to be executed on its behalf by the facshnile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set folth. PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Signature of Date of Registration Registered Owner Officer of the Registrar December 16, 2004 Cede & Co. Federal ID # 13-2555119 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Mimaeapolis, Minnesota, which is to be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Bonds; Security; Escrow. 4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be borrowed and repaid on the Bonds and the Prior Bonds (as de£med in the resolntion providing for the issuance and sale of the Bonds), and to provide adequate and specific security for the Purchaser and holders from tinge to time of the Bonds and Prior Bonds, there is hereby created a special fund to be designated the Tax Increment Refunding Bonds, Series 2004A Debt Service Fund (the "Series 2004A Debt Service Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund will be maintained in the manner herein specified until all of the Prior Bonds have been paid and until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the Fund two separate accounts, to be designated the Escrow Account and Debt Service Account. (a) Escrow Account. The Escrow Account will be maintained as an Escrow Account (the "Escrow Accotmt") with U.S. Bank National Association ha St. Paul, Minnesota, which is a suitable fmancial institution within the State, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said £mancial institution is hereby designated escrow agent (the "Escrow Agent") for the Escrow Account. All proceeds of the sale of the Bonds will be received by the Escrow Agent and applied to frmd the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow Account, together with all investment earnings thereon. The Escrow Account will be invested in securities matm'ing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other ftmds retained in the Escrow Account, to pay when due the interest to accrue on each Bond to and including September 1, 2005 (the "Redemption Date"), and to pay when due on the Redemption Date the principal amount of each of the Prior Bonds then outstanding. From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on, the Bonds to and including the Redemption Date, and (ii) the principal of the Prior Bonds due by reason of redemption on the Redemption Date. The Escrow Account will be irrevocably appropriated to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are applied to prepayment of the Prior Bonds. The moneys ha the Escrow Account will be used solely for the pm-poses herein set forth and for no other purpose, except that any sm-plus in the Escrow Accotmt may be remitted to the City, all in accordance with the Escrow Agreement (hereafter defined) by and between the City and the Escrow Agent. Any moneys remitted to the City upon termination of the Escrow Agreement will be deposited in the Debt Service Account. (b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably appropriated and there will be credited: (i) any balance remitted to the City upon the termination of the Escrow Agreement; (ii) any balance remaining on September 2, 2005, in the Debt Service Fund created by the City Council resolution authorizing the issuance and sate of the Refunded Bonds (Prior Resolution); (iii) any collections of all taxes hereafter levied for the payment of the Bonds and interest thereon; (iv) all investment earnings on funds in the Debt Service Account; (v) after the Redemption Date, all Pledged Tax Increment received by the City from the EDA City Council Minutes November 22, 2004 Page 19 of 24 pm'suant to the Pledge Agreement; (vi) accrued interest (if any) received upon delivery of the Bonds to the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are properly available and are appropriated by the City Council to the Debt Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds and interest thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act. 4.02. Findings. It is hereby found and detennined that based upon information presently available fronl the City's financial advisers, the issuance of the Bonds will result in a reduction of debt service cost to the City on the Prior Bonds, such that the present value of such debt service or interest cost savings (the "Reduction") is 8.595% of the debt service on the Prior Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivisions 12 and 13. 4.03. The moneys in the Debt Service Account will be used solely to pay the p~4ncipal of and interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. No portion of the proceeds of the Bonds will be used dkectly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the ptu-pose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any stuns from true to thne held in the Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of muounts which under the applicable federal arbitrage regulations may be invested withottt regard as to yield will not be invested at a yield in excess of the applicable yield resta'ictions imposed by the arbitrage regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund will not be invested in obligations or deposits issued by, guaranteed by or insm'ed by the United States or any agency or instnanentahty thereof if and to the extent that such investment would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 4.04. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid ont of monies in the general Amd of the City which are available for such purpose, and such general fund may be reimbnrsed with or without interest from the Escrow Account or Debt Service Account when a sufficient balance is available therein. 4.05. It is determined that estimated collection of Pledged Tax Increment for the payment of principal and interest on the Bonds after the Redemption Date will produce at least five percent in excess of the amount needed to meet when due, the principal and interest pa3qnents on the Bonds matm'ing after the Redemption Date, and that no tax levy is needed at this time. 4.06. Filing. The City Manager is authorized and directed to file a certified copy of this resolution with the Manager of Property Records and Taxation' of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.07. Prior Resolution Pledges. The pledges and covenants of the City made by the Prior Resolution relating to the tax increments and improvements ftuanced by the Bonds and the Prior Bonds are restated and confmned in all respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions of this resolution. Section 5. Reftmding; Findings; Redemption of Refunded Bonds. 5.01. As of the date of delivery of and payment for the Bonds proceeds of the Bonds, in the mnount of $2,711,259.02 plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds (Proceeds), together with other funds (Funds) in the mnount of $765,325.15 are hereby pledged and appropriated and will be deposited in the Escrow Account. City Council Minutes November 22, 2004 Page 20 of 24 5.02. It is hereby found and determined that the Proceeds and Ftmds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account, to pay principal of and interest on the Bonds through the Redemption Date, and to pay at maturity or redemption all of the principal of and redemption premimn (if any) on the Refunded Bonds. 5.03. Securities purchased from the mmfies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Ehlers & Associates, as agent for the City of Colmnbia Heights is hereby attthorized and directed to purchase for and on behalf of the City of Columbia Heights and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the secm'ities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and the Resolution. 5.04. The Refunded Bonds matm'ing on September 1, 2006 and thereafter will be redeemed and prepaid on the Redemption Date. The Refunded Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Attachment A wl~ich terms and conditions are hereby approved and incorporated herein by reference. The Registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of Redemption to each registered holder of the Refunded Bonds. 5.05. Escrow Agreelnent. On or prior to the delivet~j of the Refunding Bonds, the Mayor and the City Manager are hereby authorized and directed to execute on behalf of the City an escrow agreement (Escrow Agreement) with the Escrow Agent in substantially the form now on file with the City Manager. All essential terms and conditions of the Escrow Agreemeut including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a pmX of tlfis resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. Section 6 Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to Kennedy & Graven, Chartered, as bond counsel, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of tlie City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 6.02. The Mayor, City Manager and Finance Director are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amotmts payable to Kennedy & Graven, Chartered, as bond counsel) to U.S. Trnst Company, Minneapolis, Minnesota on the closing date for fm'ther distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Section 7. Tax Covenants. 7.01. The City covenants and agn'ees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the trine of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended andmade applicable to the Bonds. 7.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation reqnirements relating to temporary periods fbr investments, lhnitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2004) exceed the small-issuer exception amount of $5,000,000. City Council Minutes November 22, 2004 Page 21 of 24 (b) For pm-poses of qualifying for the small issuer exception to the federal arbitrage rebate requkements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar yea' in which the Bonds are issued and outstanding at one thne is not reasonably expected to exceed $5,000,000, all witlfin the meaning of Section 148(f)(4)(C) of the Code. Furthermore: (i) each of the Prior Bonds was issued as part of an issue which was ~eated as meeting the rebate requh'ements by reason of the exception for govermnental traits issuing $5,000,000 or less of bonds; (ii) the average maturity of the Bonds does not exceed the remaining average maturity of the Prior Bonds; and (iii) no maturity of the Bonds has a maturity date wlfich is later than the date which is 30 years after the date the original bonds were issued. 7.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be or become "private activity bonds" within the meaning of Sections 103 and 141 tltrough 150 of the Code. 7.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2004 wilt not exceed $10,000,000; (d) not more than $10,000,000 of obligations issued by the City during calendar year 2004 have been designated for purposes of Section 265(b)(3) of the Code; and (e) the Bonds have a maturity date which is not later than the date which is 30 years after the date the original tax-exempt obligation related to the Prior Bonds was issued. 7.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book-Entry System; Lhnited Obhgation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the lnaturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered h~ the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 8.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other £mancial institutions fi'om thne to thne for which DTC holds Bonds as securities depository ("Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not lhnited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including m~y notice of redemption, or (iii) the payment to any Participant or any other person, other than a City Council Minutes November 22, 2004 Page 22 of 24 registered owner of Bonds, of any amount with respect to principal of, prelnium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may ti'eat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the ptu'pose of payment of principal, premitun and interest with respect to such Bond, for the ptu'pose of registering transfers with respect to such Bonds, and for all other ptu-poses. The Paying Agent will pay all principal of, premitun, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premkun, if any, or interest on the Bonds to the extent of the stun or stuns so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitnte a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and npon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its se~wices with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the conti'ary, so long as a Bond is registered in the nmne of Cede & Co., as nominee of DTC, payments with respect to principal of; premiuln, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by tiffs resolution to the holders of the Bonds will cease, except that tlie pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a stun sufficient for the payment thereof in full. 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 to the date of such deposit. Section 10. Continuing Disclosure. 10.01. In order to qualify the Bonds for limited continuing disclosure tu~der paragraph (d)(2) of Securities and Exchange Commission Rules, Section 15c2-12 (the "SEC Rule"), the City makes the following factual statement and representation: As of the date of delivery of the Bonds, the City will not be an obligated person (as de£med in paragraph (f) of the SEC Rnle) with respect to more than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds and excluding lnunicipal securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof. 10.02. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosm'e Cel~ificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeldng mandate or specific performance by court order, to cause the City to comply with its obligations under this section. City Council Minutes November 22, 2004 Page 23 of 24 10.03. "Continuing Disclosure Certificate" lneans that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be alnended fi'om thne to thne in accordance with the terms thereof. EXHIBIT A BID TABULATION $2,000,000' General Obli~lation Tax Increment Refundin[I Bonds, Series 2004A CITY OF COLUMBIA HEIGHTS, MINNESOTA SALE: November 22, 2004 AWARD: UNITED BANKERS' BANK RATING: Moody's Investors Service "Al" BBI: 4.52% NAME OF BIDDER NET TRUE MATURITY RATE REOFFERING PRICE INTEREST INTEREST (September 1) YIELD COST RATE UNITED BANKERS' BANK Bloomington, Minnesota 2006 2.000% 2.000% 2007 2.250% 2.250% 2008 2.500% 2.500% 2009 2.750% 2.750% $1,994,015.00 $141,960.52 WELLS FARGO BROKERAGE SERVICES, LLC Minneapolis, Minnesota 2006 2.250% 2007 2.375% 2008 2.450% 2009 2.750% $1,996,776.40 $142,696.85 NORTHLAND SECURITIES, INC. Minneapolis, Minnesota 2006 2.150% 2007 2.300% 2008 2.700% 2009 2.950% $1,994,000.00 $150,443.65 CRONIN & COMPANY, INC. Minneapolis, Minnesota 2006 2.500% 2007 2.500% 2008 3.000% 2009 3.000% $2,006,062.50 $152,691.67 UMB BANK, N.A. Kansas City, Missouri 2006 2.300% 2007 2.550% 2008 2.700% 2009 2.850% $1,992,220.00 $157,231.77 *Subsequent to bid opening the issue size was $600,000, the 2007 maturity decreased $5,000 maturity value. decreased to $1,985,000 with the 2006 maturity decreased $5,000 to to $610,000, and the 2008 maturity decreased $5,000 to $625,000 in Adjusted Price - $1,979,064.85 Adjusted Net Interest Cost - $140,971.61 Adjusted TIC - 2.4755% EXItIBIT B NOTICE OF CALL FOR REDEMPTION $2,399,720.75 2.4752% 2.4870% 2.6228% 2.6523% 2.7440% City Council Minutes November 22, 2004 Page 24 of 24 GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990, SERIES A CITY OF COLUMBIA HEIGHTS, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Cotmcil of the City of Colmnbia Heights, Anoka Cotmty, Minnesota, there have been called for redemption and prepayment on SEPTEMBER 1, 2005 all outstanding bonds of the City designated as General Obligation Tax Increlnent Capital Appreciation Bonds of 1990, Series A (the "Bonds"), dated August 23, 1990, having a stated maturity date of September 1, in the years 2006 tl~rough 2009, both inclusive, totaling $953,903.45 in principal amount, and with the following CUSIP numbers: Year ofMatm'ity Principal Amount CUSIP 2006 $301,281.60 197684JD6 2007 280,977.20 197684JE4 2008 259,780.40 197684JF1 2009 111,864.25 197684 JG9 The bonds a'e being called at a price of par plus accrued interest to September 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of Wells Fa'go Bank, National Association, in the City of Minneapolis, Minnesota (formerly known as Norwest Bank Minnesota, National Association), on or before September 1, 2005, at the following address: Wells Fa'go Bank, National Association Attention: Corporate Trust Operations 255 Second Avenue South Minneapolis, MN 55479-0113 hnportant Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social secm-ity number or federal employer identification nmnber, properly certified. This requkement is fi~lfilled by submitting a W-9 Form, which may be obtained at a bank or other fmancial institution. The Registrar will not be responsible for the selection or use of the CUSIP nmnber, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders.