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HomeMy WebLinkAboutMay 26, 1987'OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING MAY 26, 1987 The meeting was called to order by Mayor Nawrocki at 7:30 p.m.. 1. Roll Call Paulson, Petkoff, Carlson, Peterson, Nawrocki - present 2. Invocation The Invocation was offered by Pastor W. Karl Smith of Oak Hill Baptist Church. 3. Consent Agenda The following items were on the consent agenda for Council consideration: Approval of Minutes of Previous. Meetings The Council approved the'-minutes of the Public Improvement Hearing of May Ilth and the Regular Council Meeting of May llth. There were no corrections. Traffic Commission Public Hearing .- T~o WRY .StRR at the Intersection of 43rd Avenue and Washington Street The Traffic Commission held a public hearing to discuss with affected residents the placement of a two way stop sign at the intersection of 43rd Avenue and Washington Street. The Council approved the installation of a two way stop sign on Washington Street at 43rd Avenue and approved the removal of the "Yield" sign on the west leg of 43rd Avenue a't the intersection. Request of Athletic Boosters to Conduct Bingo and a Raffle at Fourth of July. Celebration The City Council requested that the City Manager advise the Minnesota Charitable Gambling Control Board that the City has no objections to the Columbia Heights Athletic Boosters Club (Minnesota Gambling License B-02072-001) conducting bingo and selling raffles in conjunction with the Fourth of July Celebration on July 4, 1987 at John P. Murzyn Hall, 530 Mill Street N.E.. Request for Temporary Sig?age at Little Caesar's Pizza of Minnesota The Council authorized the use of a temporary sign and the placement of a large balloon on the roof of Little Caesar's Pizza located at 4353 Central Avenue with the understanding that the permit shall not exceed five consecutive calendar days and that such permit may be issued upon receipt of a $100 refundable fee. Award of Sealcoat Bids - Project #8703 The Council awarded Project #8703 to Allied Blacktop Company based on their low, formal bid of $146,391.06 and the Mayor and City Manager were authorized to enter into an agreement for same. Award of Contract for Weed Cuttin9 The Council accepted the proposal from Mr. Archie Romslow to perform the City's week cutting duties at a rate of $25.00 per hour and authorized the Mayor and City Manager to enter into an agreement with Mr. Romslow. Adoption of Consent Agenda Motiqn by Paulson, second by Peterson to adopt the consent agenda as presented. Roll call: Ali ayes Regular Council Meeting May 26, 1987 page 2 4. Presentations A check for $550 was presented to the Council for use in John P. Murzyn Hall by the President of the Columbia Heights Youth Hockey Association. On behalf 6f the City Councilmember Carlson had received a plaque from the Traffic Safety Council in recognition of the City's merltorius safety record. He presented the plaque to the Council. 5. Oral Petitions There were no oral petitions. Ordinances and Resolutlons a. Resolution No..87-37; Being a Resolution Awarding the Sale of, and Providing the Form, Terms, Covenants and Directions for $9,090,000 General Obligation Tax Increment Refunding Bonds of 1987, Series A This bond would replace two earlier tax increment bonds; one issued in 1980 having a principal sum of $7,240,000 and an issue of 1985 having a principal sum of $1,860,OO0. The above amounts are the prlncipal sums to be refunded and not the amounts of the original bond issues. The bond counsel, Steve Emerson of Miller & Schroeder Financial, Inc., reviewed the bids received and the sale of the bonds. He noted that bids have been received from firms who have not bid in the past on issues of the City and added that Moody's had com- mented on the sound financial status of the City. The City's A-1 credit rating by Moody's continues. The City Manager advised the Council that issuance fees have increased because legal fees of the bond counsel!s firm have increased. The fees are now being charged based on increments of the bond sale. He reviewed the old fee schedule and the new schedule. The Mayor observed that the fees are fiscal fees and not legal fees. He was correct and the bond counsel noted that the bonds issued in 1985 had been charged at the higher rate than what Is in the 1984 contract. The difference of $2,825 will be rebated as the Council was not advised of this higher rate on the 1985 issue. Mayor Nawrocki felt the last contract the City had with the bond counsel's firm should be used and that it prevails as the City was not notified of the higher fee schedule. The bond counsel stated that the old fee schedule could be used if so desired rather than delay awarding the bonds. He noted that a delay would cost much more than the difference in fees. Motion by Petkoff, second by Carlson tO waive the reading of the resolution there being ample copies available to the publlc. Roll call: All ayes RESOLUTION NO. 87-37 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR $9,090,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF 1987, SERIES A. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AS FOLLOWS: Section 1. Award of Sale: Term of Bonds. 1.01 Award of Sale. The City Council (the "Council") of the City of Columbia Heights, Minnesota (the ~'lssuer") hereby awards the sale of $9,090,000 General Obligation Tax Increment Refunding Bonds of 1987, Series A (the "Bonds") to a syndicate headed by The First National Bank of Saint Paul (the "Purchaserm~) as Regular Councll Meeting May 26, 1987 page 3 the bidder offering the lowest net interest cost by its bid to purchase the Bonds at a price of $8,930,925 plus accrued interest of the date of delivery, the Bonds to bear interest at the rates per annum as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1991 5.75'~ 1997 7.00 ~ 1992 6.00 1998 7.10 1993 6.20 1999 7.20 1994 6.40 2000 7.30 1995 6.60 2001 7.40 1996 6.80 2002 7.50 The City Manager of the Issuer. is directed to return the good faith checks of the unsuccessful bidders. 1.02 Contract for Sale. The Mayor and the City Manager are hereby authorized and directed to execute a contract for the sale of Bonds on behalf of the Issuer in accordance with the terms of the accepted bid. The good faith check of the Purchaser shall be retained by the City Manager until the Bonds have been deliv- ered and the purchase price has been paid. 1.03 Maturities. The Issuer shall issue the Bonds in the aggregate principal amount of $9,090,000 dated June ), 1987 as fully registered bonds. The Bonds shall be in denominations of $5,000 or any integral multiple thereof not exce- eding the principal amount of a single maturity, sha)l be numbered from R-1 upwards in order of issuance, and shall bear interest at the rates set forth above, payable September ), 1987 and semiannually.thereafter on each March 1 and September l, and shall mature on March I in the years and amounts ms fo))ows: Year Amount Year Amount 1991' $525,000 1997 $910,000 1992 640,000 1998 960,000 1993 680,000 1999 930,000 1994 695,000 2000 900,000 1995 820,000 2001 875,000 1996 910,000 2002 245,000 Bonds issued in exchange for Bonds shall' be dated as of the date of authentication thereof and shall bear interest from the date to which interest due and payable has been paid in full on the Bonds surrendered, except that Bonds issued upon a transfer or exchange prior to the first interest payment date shall be dated as of June 1, 1987. 1.04 Redemption. All Bonds maturing on or after March 1, 1995, shall be subject to redemption and prior payment in whole or in part in inverse order of maturity and by lot within maturity at the option of the Issuer on March 1, 1994, and any interest payment date thereafter at a price of the principal amount thereof plus accrued interest. Thirty days' prior notice of redemption shall be given by mail to the Registrar and to the registered owners of the Bonds, and notice of redemp- tion will be published in the manner provided by Minnesota Statutes, Chapter 475. Upon notice having been so given, the Bonds or portions of Bonds there~nl specified shall be due and payable at the stated redemption date and price with accrued interest to the redemption date, and upon funds for such payment being held by or on behalf of the Registrar for such payment on the specified redemption date, interest thereon shall cease to accrue after such redemption date. No defect in Regular Council Meeting May 26, 1987 page q the mailed notice of redemption shall affect the validity of the call for redemption of any Bond. 1.05 R~glstratlon. The Issuer shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the ~Registrar"). The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a 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. (b) (c) 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 re- gistered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate prlncipal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registra- tion of any transfer after the fifteenth day of the month preceding each interest payment date until such interest payment date. Excha~.ge of Bonds. Whenever aqy Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver oae or more new Bonds of a like aggregate principal amount and maturity, as re- quested by the registered owner or the owner's attorney duly authorized in writing. (d) Cancellation. AI1 Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Issuer. (el 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 in- strument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which in its judgement deems improper or unauthori'zed. (f) Persons Deemed Owners. The Issuer 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 such Bond, whether such Bond shall be everdue or not, for the purpose of receiving payment of, or on account of, the prin- cipal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the llabillty of the Issuer upon such Bond to the extent of the sum or sums so paid. (gl Taxes, ~ees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to re- imburse the Registrar for any tax, fee or other governmental charge re- quired to be paid with respect to such transfer or exchange. .. Regular Council Meeting May 26, 1~87 page 5 (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of llke 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 such Bond lost, stolen or destroyed upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or des- troyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appopriate bond or indemnity in form, substance and amount satisfactory to it, in which both the Issuer and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancel- lation shall be given to the Issuer. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in ac- cordance with its terms, it shall not be necessary to issue a new Bond prior to payment. 1.06 Appointment of Initial Registrar. The Issuer hereby appoints Marquette Bank of Minneapolis, as the init'iai Registrar. The Mayor and City Manager are authorized to execute and deliver, on behalf of the Issuer, a contract with Marquette Bank Minneapolis, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authori- zed by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The Issuer agrees to pay the reasonable and customary charges of the Registrar for the services performed. The Issuer reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment 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. On or before each principal or interest due date, without further order of this Council, the City Clerk-Treasurer of the Issuer shall transmit to the Registrar, from the Bond Fund described in Section 5.01 hereof, moneys sufficlent, together with moneys, if any, available for the payment of debt service on the Bonds from the Escrow Agreements described below pursuant to the terms thereof, for the payment of a11 principal and interest then due. 1.07 Manner of Payment. The Bonds shal'l be payable as to principal upon presenta- tion at the main office of the Registrar. If the stated maturity date for payment of principal of any Bond shall not be a business day, then such payment shall be made on the next succeeding business day with the same force and effect as if made on the stated maturity, and without additional interest accruing thereon for the period after such stated maturity. Interest on each Bond shall be payable by check or draft of the Registrar mailed on the interest payment date or, if the interest payment date is.not e business day, then such payment shall be mailed on the first business day following the .interest payment date with the same force and effect as if payment were made on the interest payment date, to the person who was the registered holder thereof at the close of business on the lSth day (whether or not a business day) of the calendar month next preceding the interest payment date, at his or her address as it appears on the bond register. For purposes of this resolution "business day" shall mean any day other than a Saturday, Sunday, or other day on which banks in the city in which the principal office of the Registrar is located are authorized to be closed. Section 2. Form of the Bonds. Regular Council Meeting May 26, 1987 page 6 2.01 The Bonds shall be in substantially the following form, with the necessary variations as to number, CUSIP Number, rate of interest and date of maturity, the blanks to be properly filled in: UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF COLUMBIA HEIGHTS No. R- $ GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND OF 1987, SERIES A Rate Maturity Nominal Date CUSIP of Original Issue The City of Columbia Heights, Minnesota (the "Issuer"), for value received, hereby certifies that it is indebted and hereby promises to-pay to or registered assigns, the principal sum of dollars ($ ') on the maturity date specified above, upon the presentation and surrender hereof, and to pay the registered owner hereof interest on such 'principal sum at the interest rate specified above from June 1, 1987, or the most recent interest payment date to which interest has been paid or duly provided for as specified below, on March 1 and September 1 of each year, commencing September 1, 1987, until said principal sum is paid. Principal and the redemption price are payable in lawful money of the United States of America at as Registrar, Transfer Agent and Paying Agent, in , Minnesota, or at the offices of such owners at their registered addressed (the "Registrar"). Interest shall be paid on each March 1 and September I by check or draft mailed by first class mail, postage prepaid, on th~ ~terest payment date, or if the interest payment date is not a business day thc ~'he first business day thereafter, to the person to whose name this Bond is ~: ~,~ered at the close of business on the 15th day of the month, precediDq such interest payment date (whether or not a business day) at his or her address set forth on the bond'register maintained by the Registrar. Any such interest not punctually paid or provided for will be paid to the person in whose name this Bond is registered at the close of business on a special record date established by the Registrar for the payment of such defaulted interest. "Business Day" shall mean any day other than a Saturday, Sunday, or other day when banks located in the city in which the principal office of the Registrar is located are authorized to be closed. Bonds of this Series maturing in the years 1991 through 1994 are not subject to redemption prior to maturity. The Bonds of this series maturing on or after March l, 1995, are subject to redemption at the option of the Issuer in whole or in part in inverse order of maturity and by lot within a maturity, on March 1, )994 and any interest payment date thereafter at a price equal ~o the principal amount thereof and accrued interest. Thirty days' prior notice of redemption will be given by mail to the Registrar and to the registered owners, and notice of redemption will be published in the manner provided by Minnesota Statutes, Chapter 475. No defect in mailed notice Will affect the valldity of the call for redemption. This Bond is one of a series of Bonds in the aggregate principal amount of Nine Million Ninety Thousand Dollars ($9,090,000), all of like date and tenor except for number, interest rate, denomination, date of maturity and redemption prlvilege, and is issued for the purpose of providing funds to crossover-refund the outstand- ing principal amount of the Issuer's General Obligation Tax Increment Bonds of 1985, Regular Council Meeting May 26, 1987 page 7 Series A and its General Obligation Tax Increment Bonds of 1980 (together, the "Prior Issues"), and is issued pursuant to an authorizing resolution (the "Reso- lution''), duly adopted by the Issuer on May 26, 1987, and pursuant to and in full conformity with the City Charter of the Issuer and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter q75. The Bonds of this series are payable primarily from the Debt Service Fund of the Issuer estab- lished pursuant to a resolution of the Issuer adopted on August ll, 1980, except that prior to the refunding of the Prior Issues, a portion of the debt service on the Bonds will be payable from escrow funds established pursuant to separate Escrow Agreements relating to the Prior Issues dated as of June 1, 1987, between the Issuer and Marquette Bank Minneapolis, in which certain proceeds of the Bonds have been deposited. All taxable property within the l. ssuer is subject to the levy of ad valorem taxes required by law to be levied and extended if needed for this purpose, without limitation of rate or amount. The issuance of this bond does not cause the indebtedness of the Issuer to exceed any constitutional, statutory, or charter limitation thereon. The Bonds of this series are issuable only as fully registered bonds without coupons in denominations of $5,O00 or any integral multiple thereof not exceeding the principal amount maturing in any one year. As provided in the Resolution, and subject to certain limitat|ons set forth therein, this Bond is transferable upon the books of the Issuer kept for that purpose at the principal office of the Registrar, by the registered owner hereof in person or by such owner's attorney duly authorized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or such owner's du)'y authorized attorney; and may also be exchanged for Bonds of other authorized denominations. Upon such transfer or exchange and the payment of any tax, fee or governmental charge required to be paid by the Issuer or the Registrar with respect to such transfer, there will be issued in the name of the transferee a new Bond or Bonds of the same aggregate principal amount as the surrendered Bond, bearing interest at the same rate and maturing on the same date. It is hereby Certified and Recited that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed in order to make this Bond a valid and binding general obligation of the Issuer according to its terms, have been done, do exist, have happened and have been performed in due form, time and manner as so required. This Bond shall not be valid or/become obligatory for any purpose until the Authentication Certificate hereon shall have been manually signed by a person authorized to sign on behalf of the Registrar. IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota has caused this Bond to be executed with the facsimile signatures of its Mayor and by its City Manager, all as of the Nominal Date of Original Issue specified above. Dated: (Facsimile) CITY OF COLUMBIA HEIGHTS, MINNESOTA By (Facsimile) City Manager Mayor Certification of Authentication This is one of the Bonds described in the within mentioned resolution. Regular Councll Heetlng Hay 26, 1~87 page 8 Bond Registrar By Authorized Signature ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of' Transferee. Include information for all joint owners if the Bonds are held by joint account). The within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the wlthin Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed by: Signature(~)' must be guaranteed by a commercial bank or trust company or by a brokerage firm having member- ship in one of the major stock exchanges. Please insert social security number or other identifying number of Assignee. Notice: The signature(s~ on this assignment must correspond with the name(s) which appear on the face of this Bond in every par- ticular, without alteration or any change whatever. (Form of Certificate) CERTIFICATE AS TO LEGAL OPINION I, Robert S. Bocwinski, City Hanager of the City of Columbia Heights, Minnesota, hereby certify that except for the date line, the above is a full, true and com- pared copy of the legal opinion of Holmes & Graven, Chartered, of Minneapolis, Minnesota, which was dellvered to me upon dellvery of the bonds and is now on file in my office. (Facslmile) City Manager Section 3. Execution and Deliver~. The Bonds shall be executed on behalf of the Issuer by the signatures of the Mayor and City Manager of the Issuer, and shall be sealed with the official corporate seal of the Issuer; provided that said sig- natures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case of 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 a11 purposes, the same as if such officer had remained in office until deli- very. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any seeurity or benefit under this resolution unless and until a certl(icate Sf authentication on such Bond has been duly executed by Regular Council Meeting May 26, 1987 page 9 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 authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, and upon receipt of the approving legal opinion of Holmes & Graven, Chartered, they shall be delivered by the City Manager to the Purchaser thereof upon payment of the purchase pr,ice in accordance with the contract of sale to be made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Refunding of Prior Issue. 4.01 Escrow Agreement. The form of Escrow Agreement proposed to be made and entered into between the Issuer and Marquette Bank Minneapolis, relating to the General Obligation Tax Increment Bonds of 1985, Series A and the General Obligation Tax Increment Bonds of 1980 ( the "Prior Issues") is hereby approved and shall be executed on behalf of the Issuer by the Mayor and City Manager in substantially the form attached hereto as Exhibit A, with such changes therein (including the provision for a separate Escrow Agreement for each of the Prior Issues) not in- consistent with Section 475.67, Minnesota Statutes, or other law, as the officers executing the same may approve, which approval shall be conclusively evidenced by the execution thereof. The Escrow Agreement shall be irrevocable and the Issuer hereby covenants to perform the terms and conditions thereof as long as either of the Prior Issues is outstanding. The Issuer hereby agrees to pay the reasonable charges of the escrow agent for acting as such. Pursuant to Minnesota Statutes, Section 475.67, Subd. 13, and the Escrow Agreement, moneys, including investment earnings, in the escrow fund or funds, will be applied to the payment of a portion of the interest on the Bonds prior to the date when moneys in the escrow fund or funds, are applied to the redemption of the Prior Issues on the dates set fo6tb in the Escrow Agreement. 4.02 Application of Proceeds. The proceeds of the Bonds are hereby appropriated as follows: (al an amount sufficient to fund the escrow fund pursuant to the Escrow Agreement (currently estimated to be $8,863,500) shall be deposited in such Escrow Fund and applied in accordance with the Escrow Agreement; and (bi an amount equal to the costs of issuing the Bonds '(currently estimated to be $67,000) shall be applied to the payment thereof. 4.03 Verifications. The firm of Price Waterhouse, Independent public accountants and consulting actuaries, is hereby authorized and directed to verify that the deposits in the Escrow Fund for the Prior Issue will be sufficient to redeem the Prior Issues as provided in the Escrow Agreement, and to make such calcula- tions as may be necessary for the purpose of determining compliance wi'th Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") and the ap- plicable Treasury Regulations. Section 5. prpject Account, Rebate Subaccount, Pledges, Appropriations. 5.01 Project Account. The Issuer's Project Account (the "Project Account") created on the official records of the Issuer by a Resolution of the Issuer adopted on August ll, 1980, shall continue to be held and administered by the Clerk-Treasurer, deposited in one or more banks duty qualified as depositories of funds of the Issuer, separate from ali other bank accounts, and invested and reinvested in accordance with resolutions of the Issuer and Minnesota Statutes, Regular Council Meeting May 26, 1987 page 10 Section 475.66, and shall be used only to pay principal and interest and expenses of payment when due on genera] obligation tax increment bonds of the {~suer made payable therefrom, including the Prior Issues prior to their redemption pursuant to the Escrow Agreement, and including the Bonds to the extent debt service thereon is not payable from the escrow fund establlshed pursuant to the Escrow Agreement, until all such principal and interest and expenses have been fully paid; provided that if any payment falls due when the balance in the Project Account is insuf- ficient to pay it, the deficiency shal] be paid out of any other funds of the Issuer available for that purpose, and advances so made may be repaid from the Project Account when a sufficient balance is available therein, 5.02 Rebate Account. (a) There is hereby created an additional subaccount in the Project Account, designated the I'Rebate Subaccount~l. (bi No later than one year following the date of the closing on the Bonds, on each anniversary thereof, and on the date of retirement of the last outstanding Bond, the Issuer shall calculate or cause to be calculated (ii the amount to be transferred to the Rebate Subaccount, If any, neces- sary to increase the amount id the Rebate Subaccount to the amount of Excess Earnings (as defined below) for the period from the preceding twelve month period to such date of transfer, or (ii) the amount to be transferred from the Rebate Subaccount to the Debt Service Subaccount of the Project Account, if any, necessary to reduce the amount ,in the Rebate Subaccount to the amount of the Excess Earnings for such period; and the Issuer shall transfer such amount no later than the fifteenth (15th) day of the same month, (c) The Issuer shall pay to the United States of America from monies on deposit in the Rebate Subaccount the Excess Earnings on the fifth anniver- sary of the date of issuance of the Bonds, and on such date in each fifth year thereafter. (d) All amounts in the Rebate Subaccount shal! be used and withdrawn by the Issuer as required above solely for the purposes set forth in (b) and (c) above. In the event that the amount in the Rebate Subaccount is for any reason insufficient to pay to the United States the amounts due as calculated in this Section, the Issuer shall transfer to the Rebate Subaccount the amount of such deficiency. (e) Investment earnings on amounts held in the Rebate Subaccount shall be retained in the Rebate Subaccount. (fi For purposes of this resolution, "Excess Earnings" shall mean for any given period (ii the aggregate amount of interest, profits and other income earned in such period from the investment of amounts in the Project Account, and the investment of Bond proceeds in the Escrow Fund, less (2) the aggregate amount which would have earned in such period if such investments had been at the yield on the Bonds, calculated pursuant to Section 148 of the Code compounded semiannually, plus (3) investment earnings allocable to the dif- ference between (1) and (2) above. The amount described in clause (1) of this definition shall take into account.any gain or loss realized on the dispo- sition of investment securities credited to any such fund or account. On the date or retirement of the last Bond remaining unpaid, the amount described Regular Council Heating t4a¥ 26, 1~t87 page 1 i in clause (ii of this definition shall include any unreallzed gain or loss as of such date. Excess Earnings shall not include any amount earned on the Debt Service Subaccount if (1) the gross earnings on such account for the bond year is less than $100,000, and (ii) the Debt Service Sub- account is depleted at least once in such bond year except for a carryover amount which does not exceed the greater of one year's earnings on the debt service account or one-twelfth of annual debt service on the Bonds. 5.03 Appropriations. The following sums are hereby appropriated and shall be credited as received to the Debt Service Subaccount of the Project Account: (al From the proceeds of the Bonds: (ii the accrued interest paid by the Purchaser from the date of issue to the date of delivery thereof; and (ii) the amount of proceeds in excess of $8,926,380 received from the sale of the Bonds. (bi All income and gain from investment of the Project Account (to which all loss from such investment shall be charged). (c) All tax increment paid to the 'Issuer by The Housing and Redevelopment Authority in and for the City of Co]umbia Heights, Hinnesota (the "Authority"), pursuant to the Tax Increment Pledge Agreement (the "Pledge Agreement") dated as of August 11, )980, as the same has been and may be amended. (d) Any sums collected from taxes extended and assessed in connection with the Bonds or the Prior Issues. (el Investment earnings on the escrow fund established pursuant to the Escrow Agreement to the extent provided therein. 5.04 Pledge of Full Faith and Credit. The full faith and credit and taxing powers of the Issuer are irrevocably p)edged for the prompt and full payment of the prlncipa) of and interest on the Bonds and such other general obligation indebtedness as may be made payable from the Project Account, as such prin- cipal and interest respectively become due. 5.05 Tax Increment Pledge A~reement. In accordance with a Resolution of the Issuer adopted on August 1¥, '1~80', the Issuer has entered into the Pledge Agreement with the Authority. It is in the best interest of the Issuer to amend the P]edge Agreement to expressly refer to the Bonds. Accordingly, the Mayor and the City Manager are hereby authorized to enter into an amendment to the Pledge Agreement adding a specific reference to the Bonds, and the City Mana- ger is directed to cause a fully executed copy of such amendment to be filed with the County Administrator of Anoka County. ~ 5.06 Revenues Sufficient. It is estimated that the revenues pledged for the pay- ment of the Bonds will produce sums in an amount not less than 5~ in excess of the amounts needed to meet when due payments of principal of and interest on the Bonds, and accordingly no tax is levied by this Resolution for that purpose. Pursuant to the Pledge Agreement, as amended by the Authority will deposit in the Project Account prior to each debt service payment date during the term of the Bonds an amount sufficient to pay principal of, redemption price, if applicable, and interest on the Bonds due on the Bonds on the next succeeding-debt service payment.date. Regular Council Meeting May 26, 1987 page 12 5.07 The Clerk-Treasurer of the Issuer is directed to keep on file in his office a tabulation of the dates and amounts of the principal and interest pay- ments to become due on all bonds payable from the Project Account. Section 6. Defeasance. When all of the Bonds have been discharged as provided in this Section 6, all pledges, covenants and other rights granted by this reso- lution to the holders of the Bonds shall cease. The Issuer may discharge its obligations with respect to any Bonds which are due on any date by irrevocably 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 to the date of such de- posit. The Issuer may also discharge its obligations with r&spect to any pre- payable 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 a sum sufficient for the payment thereof in full, provided that notice of the redemp- tion thereof has been duly given as provided in Section 1.Oq hereof. The Issuer may also at any time discharge its obllgatlons 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 general obligations of the~ United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity or, if notice of redemp- tion as herein required has been duly provided for, to such earlier redemption date. Section 7. Non-Arbit?ge Covenants; Certification of Proceedings;'General Covenants. 7.01 Non-Arbitrage Covenants. (al The Issuer covenants and agrees with the Purchaser and holders of the Bonds that the investments.of gross proceeds of the Bonds, including the investment of any revenues pledged to the Bonds which are considered pro~ ceeds under the applicable regulations, and accumulated sinking funds, if any,'shall be limited as to amount and yield in such manner that the Bonds shall not be arbitrage bonds within the meaning of Section 148 of the Inter- nal Revenue Code of 1986, as amended, and applicable Treasury Regulations. On the basis of the existing facts, estimates and circumstances, including the foregoing covenant, the Issuer hereby certified that it is not expected that the proceeds of the Bonds will be used in such manner as to cause the Bonds to be arbitrage bonds under Section 148 and the applicable Treasury Regulations. The Mayor and City Manager shall furnish an arbitrage certi- ficate to the Purchaser embracing or based on the foregoing certification at the time of delivery of the Bonds to the Purchaser. (bi The Issuer further covenants to the United States of America any rebate payment required to be made pursuant to Section 1q8 of the Cdde as and at the times provided in Section 5.02 hereof. 7.02 Certification of Proceedings. The staff and officers of the Issuer are hereby authorized and directed to prepare and furnish to the Puwchaser and to Holmes & Graven, Chartered, Bond Counsel, certified copies of all proceedings and Regular Council Meeting May 26, 1987 page 13 and records of the Issuer, and such other affidavits, certificates and in- formation 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 under their custody and control~ or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the. Issuer as to the facts recited therein. 7.03 General Covenant. The Issuer eovenants and agrees 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 1954, as in effect immediately prior to the enforcement of the Tax Reform Act of 1986 (the "Act"), and read as including certain provisions of the Act as required by Section 1313(b) thereof, and the applicable Treasury Regulations, and eovenants to take any and all actions within its power to ensure that the interest on the Bonds will not become subject to taxation under the Code and such Treasury Regulatlons. 7.04 County Auditor Certificate. The City Manager is authorized and directed to certify a copy of this resolution, file the same with the County Auditor of Anoka County and obtain a certification from such Auditor that the Bonds have been entered upon the bond register maintained by the Auditor. Adopted this 26th day of May, 1987. Mayor Bruce G. NawroCki Attest: Robert S. Bocwinski, City Manager b. Resolution No. 87-38; Being a Resolution Awarding the 5ale of, and Providing the Form, Terms, Covenants and Directions for $2,230,000 General Obligation Refundin9 Improvement Bonds of 1987, Series A It was noted that the fiscal fee schedule of 1984 will be used with the issuance of these bonds. The fees of the new schedule were discussed relative to the old fee schedule. Motion by Peterson, second by Petkoff to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. B7-38 RESOLUTION AWARDING THE 5ALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR $2,230,000 GENERAL OBLIGATION REFUNDING BONDS OF 1987, SERIES A BE'IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AS FOLLOWS: Section 1. Award of Sale; Term of Bonds. 1.01 Award of Sale. The City Council (the "Council") of the City of Columbia Heights, Minnesota (the "Issuer") hereby awards the sale of $2,230,000 General Obligation Refunding Improvement Bonds of 1987, Series A (the "Bonds") to a syndicate headed by The First National Bank of Saint Paul (the "Purchaser") as Regular Council Meeting May 26, 1987 page 14 the bidder offering the lowest net interest cost by its bid to purchase the Bonds at a price of $2,203,240 plus accrued interest to the date of delivery, the Bonds to bear interest at the rates per annum as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1988 5.00 ~ 1992 6.00 1989 5.25 1993 6.20 1990 5.50 1994 6.40 1991 5.75 1995 6.60 The City Manager of the Issuer is directed to return the good faith checks of the unsuccessful bidders. 1.02 Contract for Sale. The Mayor and City Manager are hereby authorized and directed to execute a contract for the sale of the Bonds on behalf of the Issuer in accordance with the terms of the accepted bid. The good faith check of the Purchaser shall be retained by the City Manager until the Bonds have been deli- vered and the purchase price has been paid. 1.03 Maturities. The Issuer shall issue the Bonds in the aggregate principal amount of $2,230,000 dated June 1, 1987 as fully registered bonds. The Bonds shall be in denominations of $5,000 or any integral multiple thereof not exce- eding the principal amount of a single maturity, shall be numbered from R-1 upwards in order of issuance, and shall bear interest at the rates set forth above, payable September 1, 1987 and semiannually thereafter on each March 1 and September 1, and shall mature on March 1 in the years and amounts as follows: Year Amount Year Amount 1988 $ 245,000 1992 $ 275,000 1989 260,000 1993 280,000 1990 265,000 1994 300,000 199I 275,000 1995 330,000 Bonds issued in exchange for Bonds shall be dated as of the date of authentication thereof and shall bear interest from the date towhlch interest due and payable has been paid in full on the Bonds surrendered, except that Bonds issued upon a fransfer or exchange prior to the first interest payment date shall be dated June 1, 1987. i.04 Redemption. All Bonds maturing on or after March 1, 1992, shall be subject to 'redemption and prior payment in whole or in part in inverse order of maturity and by lot within maturity at the option of the issuer on March 1, 1991, and any interest payment date thereafter at a price of the prlncipal amount thereof plus accrued interest. Thirty days prior notice of redemption shall be given by mail to the Registrar and to the registered owners of the Bonds, and notice of redemp- tion will be publlshed in the manner provided by Minnesota Statutes, Chapter 475. Upon notice having been so given, the Bonds or portlons of Bonds therein specified shall be due and payable at the stated redemption date and price with accrued interest to the redemption date, and upon funds for such payment being held on or behalf of the Registrar for such payment on the specified redemption date, interest thereon shall cease to accrue after such redemption date. No defect in the mailed notice of redemption shall affect the validlty of the ca11 for redemption Regular Council Meeting May 26, 1987 page 15 of any Bond. 1.05 Registration. The Issuer shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a 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. (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 regis- tared owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the 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 precedln9 each interest payment date and untll such interest payment date. (c) Exchange of Bonds. Whenever any Bond is 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 duly authorized in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Issuer. (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 i's legally authorized. The Registrar shall incur no 1lability for its refusal, in 9ood raj. th, to make transfers which it, in its judgement, deems improper or unauthorized. (f) Persons Deemed Owners. The Issuer 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 such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Issuer upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, 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) Hutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen, or destroyed, the Registrar shal.1 deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution Regular Council Meeting May 26, 1987 page 16 for and upon cancellation of any such, mutilated Bond or in 1leu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection there- with; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, 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 Issuer and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Issuer. If the mutilated, lost, stolen or destroyed 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. 1.06 Appointment.~f I~i~iallR~gistrar. The Issuer hereby appoints Marquette State Bank Minneapolis, as the initial Registrar. The Mayor and City Manager are authori- zed to execute and deliver, on behalf of the Issuer, a contract with Marquette Bank Minneapolis, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company autho~ rized to act as successor Registrar. The Issuer agrees to pay the reasonable and customary charges of the Registrar for the services performed. The Issuer reserves the right to remove any Registrar upon thirty (30) days' notice and upon the ap- pointment 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. On or before each principal or interest due date, without further order of this Council, the Clerk-Treasurer of the Issuer shall transmit to the Registrar, from the Bond Fund described in Section 5.O1 hereof, moneys sufficient for the payment of all principal and interest then due. 1.~~'. ' of Payment. The Bonds shall be payable as to principal upon presen- tatic>~: ~' '-~ main office of the Registrar. If the stated maturi'ty date for pay- ment of p~;~.:ipal Of any Bond shall not be a business day, then such payment shall be made on the next succeeding business day with the same force and effect as if made on the stated maturity, and w!thout additional interest accruing thereon for the period after such stated maturity. Interest on each Bond shall be payable by check or draft of the Registrar mailed on the interest payment date or, if the interest payment date is not a business day, then such payment shall be mailed 6n the first business day following the interest payment date with the same force and effect as l'f payment were made on the interest payment date, to the person who was the registered holder thereof at the close of business on the 15th day (whether or not a business day) of the calendar month next preceding the interest payment date, ~t his or her address as it appears on the bond register. For purposes of this resolution "business day" shall mean any day other than a Saturday, Sunday, or other day on which banks in the city in which the principal office of the Registrar is located are authorized to be closed. Section 2. Form of the Bonds. 2.01 The Bonds shall be in substantially the following form, with the necessary variations as to number, CUSIP Number, rate of interest and date of maturity, the blanks .to be properly filled in: UNITED STATES OF AMERiCAi STATE OF MINNESOTA Regular Council Heeting Hay 26, 1987 page 17 No. R- ANOKA COUNTY CITY OF COLUHBIA HEIGHTS GENERAL OBLIGATION REFUNDING IHPROVEHENT BOND OF 1987, SERIES A Rate Haturity Nominal Date CUSIP of Original Issue June 1, 1987 The City of Columbia Heights, Hinnesota (the "Issuer"), for value received, hereby certifies that it is indebted and hereby promises to pay to or registered assigns, the principal sum of dollars ($ ) on the maturity date specified above, upon the presentation and surrender hereof, and to pay to the registered owner hereof interest on such principal sum at the interest rate specified above from June 1, 1987, or the most recent interest payment date to which interest has been Paid or duly provided for as specified below, on Harch 1 and September 1 of each year, commencing September 1, 1987, until such principal sum is paid. Principal and the redemption price are payable in lawful money of the United States of America at as Registrar, Transfer Agent and Paying Agent, in , Hinnesota, or at the offices of such successor agent as the Issuer may designate upon 30 days notice to the registered owners at their registered addressed (the "Registrar"). Interest shall be paid on each Hatch 1 and September 1 by check or draft mailed by first-class mail, postage prepaid, on the interest payment date, or if the interest payment date is not a Business Day, then on the first Business Day thereafter, to the person in whose name this Bond is registered at the close of business on the 15th day of the month preceding such interest payment date (whether or not a Business Day) at his or her address set forth on the bond register maintained by the Registrar. Any such interest not punctual]y paid or provided for will be paid to the person in whose name this Bond is registered at the close of business on a special record date established by the Registrar for the payment of such defaulted interest. "Business Day'~ shall mean any day other than a Saturday, Sunday, or other day when banks located in the city in which the principal office of the Registrar is located are authorized to be closed. Bonds of this Series maturing in the years 1988 through 1991 are not subject to redemption prior to maturity. The Bonds of this series maturing on or after March 1, 1992, are subject to redemption at thA option of the Issuer in whole or in part in inverse order of maturity and by lot within a maturity, on March 1, 1991 and any interest payment thereafter at a price equal to the principal amount thereof and accrued interest. Thirty days' prior notice of redemption will be 91yen by mail to the Registrar and to the registered owners, and notice of redemption will be published in the manner provided by Hinnesota Statutes, Chapter 475. N° defect in mailed notice will affect the validity of the call for redemption. This B~nd is one of a series of Bonds in the aggregate principal amount of Two Million Two Hundred Thirty Thousand Dollars ($2,230,000), all of llke date and tenor except for number, interest rate, denomination, date of maturity and redemp- tion privilege, and is issued for the purpose of providing funds to refund the outstanding principal amount of the Issuer's General Obligation Refunding Bonds of outstanding principal amount of the Issuer's General Obligation Refundin9 Bonds Regular Council Meeting May 26, 1987 page 18 of 1985, Series B, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Issuer on May 26, 1987, and pursuant to and in full conformity with the City Charter of the Issuer and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475. The Bonds of this series are payable primarily from the Permanent Improvement Fund Bonds of 1982 Debt Service Account in the I~suer's Sinking Fund. All tax- able property within the Issuer is subject to the levy of ad valorem taxes required by law to be levied and extended if needed for this purpose, without limitation of rate or amount. The issuance of this bond does not cause the indebtedness of the Issuer to exceed any constitutional, statutory, or charter limitation thereon. The Bonds of this series are lssuable only as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof not exceeding the principal amount maturing in any one year. As provided in the Resolution, and subject to certain limitations set forth therein, this Bond is transferable upon the books of the Issuer kept for that purpose at the principal office of the Registrar, by the registered owner hereof in person or by such owner's attorney duly authorized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or such owner's duly authorized attorney; and may also be exchanged for Bonds of other authorized denominations. Upon such transfer or exchange and the payment of any tax, fee or governmental charge required to be paid by the Issuer or the Registrar with respect to such transfer, there will be issued in the name of the transferee a new Bond or Bonds of the same aggregate principal amount as the surrendered Bond, bearing interest at the same rate and maturing on the same date. It is hereby Certified and Recited that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed in order to make this Bond a valid and binding general obligation of the Issuer according to its terms, have been done, do exist have happened and have been performed in due form, time and manner as So required. This Bond shall not be valid or become obligatory for any purpose until the Authentication Certificate hereon shall have been manually signed by a person authorized to sign on behalf of the Registrar. IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota has caused this Bond to be executed with the facsimile signatures of its Mayor and City Manager all as of the Nominal Date of Original Issue specified above. Dated: (Facsimile) City Manager CITY OF COLUMBIA HEIGHTS, MINNESOTA BY (Facsimile) Mayor Certification of Authentication This is one of the Bonds described in the within mentioned Resolution. Bond Registrar By Authorized Signature Regular Council Meeting May 26, 1987 page 19 ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (Please typewrite or print name and address of Transferee. include information for all joint owners if the Bonds are held by joint account.) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed by: Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having member- ship in one of the major stock exchanges. Notice: The signature(s) on this assignment must correspond with the name(s) which appear on the face of this Bond in every particular, without alteration or any change whatever. Please insert Social Security Number or Other Identifying Number of Assignee (Form of Certificate) CERTIFICATE AS TO LEGAL OPINION I, Robert S. Bocwinski, City Manager of the City of Columbia Heights, Minnesota, hereby certify that except for the date llne, the above is a full, true and com- pared copy of the legal opinion of Holmes & Graven, Chartered, of Minneapolis, Minnesota, which was delivered to me upon delivery of the bonds and is now on file in my office. (Facsimile) City Manager Section 3. Execution and Delivery. The Bonds shall be executed on behalf of the Issuer by the signatures of the Mayor and City Manager of the Issuer, and shall be sealed with the official corporate seal of the Issuer; provided that said signa- tures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. 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 if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be va]id or obligatory for any pur- pose or entitled to any security or benefit under this reso]utlon unless and until. a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authe- ntication on differen~ 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 so executed and authenticated, and upon receipt of the approving legal Opinion of Holmes & Graven, Chartered, they shall be delivered by the City Manager to the Purchaser thereof upon payment of the purchase price in accordance Regular Council Meeting May 26, 1987 page 20 with the contract of sale to be made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Refundin~ of Prior Issue. 4.01. Application of Proceeds. The proceeds of the Bonds are hereby appropriated as follows: (al an amount sufficient to redeem the outstanding balance of the Issuer's General Obligation Refunding Bonds of 1985, Series B (the "Prior Issue") (currently estimated to be $2,195,000) shall be deposited in United States Trea- sury Obligations maturing on or before September 1, 1987, and shall be applied to the redemption of the outstanding principal balance of the Prior Issue ($2,195,O00) on September 1, 1987; and(b) an amount equal to the costs of issuing the Bonds (currently estimated to be $10,000) shall be applied to the payment thereof. Section 5. Bond Fund, Account, Pledges, Appropriations. 5.01 Bond Fund. The Issuer's Permanent Improvement Fund Bonds of 1982 Debt Service Account in the Issuer's Sinking Fund (the "Debt Service Account") created on the official records of the Issuer by Resolution No. 82-55, adopted on October 25, 1982, shall continue to be held and administered by the Clerk-Treasurer, deposited in one or more banks duly qualified as depositories of funds of the Issuer, separate from all other bank accounts, and invested and reinvested in accordance with resolutions of the Issuer and Minnesota Statutes, Section 475.66, and shall be used only to pay principal and interest and expenses of payment when due on general obligation impro- vement bonds of the Issuer made payable therefrom, including the Bonds, until all such principal and interest and expenses have been fully paid and the Issuer has been fully reimbursed from special assessments as provided in Resolution No. 82-55; provided that if any payment falls due when the balance in the Debt Service Account is insufficient to pay it, the deficiency shall be paid out of any other funds of the Issuer available for that purpose, and advances so made may be repaid from the Debt Service Account when a sufficient balance is available therein. 5.02 Rebate Account. (al There is hereby created an additional account in the Issuer's Sinking Fund designated the "Series 1987 A Refunding Improvement Bonds Rebate Account'l. (bi No later than one year following 'the date of the closing on the Bonds, on each anniversary thereof, and on the date of retirement of the last outstanding BOnd, the Issuer shall calculate or cause to be calculated (ii the amount to be transferred to the Rebate Account, if any, necessary to increase the amount in the Rebate Account to the amount of Excess Earnings(as defined below) for the preceding twelve month period, or (ii) the amount to be transferred from the Rebate Account, if any, necessary to reduce the amount in the Rebate Account to the amount of the Excess Earnings for such period; and the Issuer shall deposit such amount in the Rebate Fund no later than the fifteenth (15th} day of the same month. (c) The Issuer shall pay to the United States of America from monies on deposlt in the Rebate Account the Excess Earnings on the fifth anniversary of the date of issuance of the Bonds, and on such date in each fifth year thereafter. (d) All amounts in the Rebate Account shall be used and withdrawn by the IsSuer as required above solely for the purposes set forth in (bi and (c) above. In the Regular Council Meeting May 26, 1987 page 2] I event that the amount in the Rebate Account is for any reason insufficient to pay to the United States the amounts due as calculated in this Section, the Issuer shall transfer to the Rebate Account the amount of such deficiency. (e) Investment earnings on amounts held in the Rebate Account Shall be retained in the Rebate Account. (f) For purposes of this resolution, "Excess Earnings" shall mean for any given period (1) the aggregate amount of interest, profits and other income earned in such period from the investment of amounts in the Bond Fund, and the Investment of Bond proceeds in the Escrow Fund, less (2) the aggregate amount which would have been earned in such period if such investments had been at the yield on the Bonds, calculated pursuant to Section 148 of the Code compounded semi- annually, plus (3) investment earnings allocable to the difference between (1) and (2) above. The amount described in clause (1) of this definition shall take into account any gain or loss realized on the disposition of investment securities credited to any such fund or account. On the date of retirement of the last Bond remaining unpaid, the amount described in clause (1) of this defi- nition shall include any unrealized gain or loss as of such date. Excess Earnings shall not include any amount earned on the Debt Service Account if ([) the gross earnings on such account for the bond year is less than $100,000, and (ii) the Debt Service Account is depleted at least once in such bond year except for a carryover amount which does not exceed the greater of one year's earnings on the debt service account or one-twelfth of annual debt service on the Bonds. 5.03 Appropriations. The following sums are hereby appropriated and shall be credited as received to the Debt Service Account: (a) From the proceeds of the Bonds: (i) the accrued interest paid by the Purchaser from the date of issue to the date of delivery thereof; and (ii) in the amount of proceeds in excess of $3,240.00 received from the sale of the Bonds. (b) All income and gain from the investment of the Debt Service Account (to which all loss from such investment shall be charged) other than Excess Earnings required to be deposited in the Rebate Account. (c) All special assessments paid to the Issuer pledged to the payment of the Prior Issue pursuant to Resolution No. 85-43 of the Issuer adopted on September 9, 1985. (d) Any sums collected from taxes extended and assessed in connection with the Bonds. 5.Oh ~ledge of Full Faith and Credit. The full faith and credit and taxing powers of the Issuer are irrevocably pledged for the prompt and full payment of the prlncipal of and interest on the Bonds and such other general obligation indebtedness as may be made payable from the Debt Service Account, as such principal and interest res- pectively become due. 5.05. Revenues Sufficient. It is estimated that the revenues pledged for the payment of the Bonds wi11 produce sums in an amount not less than 5% in excess of the amounts needed to meet when due payments of principal of and interest on the Bonds, and accordingly no tax Is levied by this Resolution for that purpose. 5.06. The Clerk-Treasurer of the IssUer is directed to keep on file in his office Regular Councll Meeting Hay 26, 1987 page 22 a tabulation of the dates and amounts of the principal and interest payments to become due and amounts of the principal and interest payments to become due on all bonds payable from the Debt Service Account. Section 6. Defeasance. When all of the Bonds have been discharged as provided in this Section 6, a]l pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The Issuer may discharge its obligations with respect to any Bonds which are due on any date by irrevocably despositing 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 dis- charged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The Issuer may also discharge its obligations with respect to any prepayable Bonds called for redemp- tion on any date when they are prepayab]e according to their terms, by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of the redemption thereof has been duly given as pro- vided in Section 1.04 hereof. The Issuer may also at any time discharge its obllta- tions 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 general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity or, if notice or redemption as herein required has been duly provided for, to such earlier redemption date. Section 7. Non-Arbitra~e Covenants; Certification of Proceedings; General Covenants. 7.01 Non-Ar.bitrage Covenants. (al The Issuer covenants and agrees with the Purchaser and owners from time to time of the Bonds that the investments of gross proceeds of the Bonds, including the investment of any revenues pledged to the Bonds which are considered proceeds under the applicable regulations, and accumulated sinking funds, if any, shall be limited as to amount and yield in such manner that the Bonds shall not be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations. On the basis of the existing facts, estimates and circumstances, including the foregoing covenant, the Issuer hereby certifies that it is not expected that the proceeds of the Bonds will be used in such manner as to cause the Bonds to be arbitrage bonds under Section 148 and the applicable Treasury Regulations. The Mayor and the City Manager shall furnish an arbitrage certificate to the Purchaser embracing or based on the foregoing certification at the time of delivery of the Bonds to the Purchaser. (bi The Issuer further convenants to the United States of America any rebate payments required to be made pursuant to Section 148 of the Code as and at the times provided in Section 5.02 hereof. 7.02 Certification of?r~ceedin~s. The staff and officers of the Issuer are hereby authorized and directed to prepare and furnish to the Purchaser and to Holmes & Graven, Chartered, Bond Counsel, certified copies of all proceedings and records of the Issuer, and such other affidavits, certificates and information as may be Regular Council Meeting May 26, 1987 page 23 required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the Issuer as to the facts recited therein. 7.03. General Covenant. The Issuer covenants and agrees 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 1954, as in effect immediately prior to the enactment of the Tax Reform Act of 1986, (the "Act") and read as including certain provisions of the Act as required by Section 1313(b) thereof, and the applicable Treasury Regulations, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and such Treasury Regu- lations. 7.O4 County Auditor Certificate. The City Manager is authorized and directed to certify a copy of this resolution, file the same with the County Auditor of Anoka County and obtain a certification from such Auditor that the Bonds have been entered upon the bond register maintained by the Auditor. Adopted this 26th day of May, 1987. Attest: Mayor City Manager c. Resolution No. 87-39; Being a Resolution Calling for a Public Hearing Motion by Petkoff, second by Peterson to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes Councilmember Petkoff introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: CITY OF COLUMBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. 87-39 RESOLUTION CALLING FOR A PUBLIC HEARING ON THE MODIFICATION BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS OF THE DOWN- TOWN CBD REVITALIZATION PLAN FOR THE REDEVELOPMENT PROJECT; AND THE ESTABLISHMENT OF THE SULLIVAN LAKE TAX INCREMENT FINANCING DISTRICT AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO, LOCATED WITHIN THE REDEVELOP- MENT PROJECT BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City"), as follows: Section 1: Public Hearing. This Council shall meet on Monday, June 15, 1987, at ap- proximately 7:30 p.m., to hold a public hearing on the following matters: (al the Regular Council Meeting May 26, 1987 page 24 modification by enlargement of the geographic.project area of the Redevelopment Project by the Housing and Redevelopment Authority in and for the City, and the establishment by the Authority of the Sullivan Lake Tax Increment Financing District located within the Redevelopment Project, (bi the modification of the Downtown CBD Revitalization Plan for the Redevelopment Project, (¢) the adoption and approval of the Tax Increment Financing Plan for the Sullivan Lake Tax Incre- ment Financing District within the Redevelopment Project all pursuant to and in accordance with Minnesota Statutes, Sections 462.4ll to 462.716, inclusive, as amended, and Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended. Section 2. Notice of Hearipg; Filing of Plans. The Clerk-Treasurer is authorized and directed to cause notice of the hearing, substantially in the form attached hereto as Exhibit A, to be given as required by law, to place a copy of the pro- posed Modified Downtown CBD Revitalization Plan and proposed Tax Increment Finan- cing Plan on file in the City Clerk-Treasurer's office and to make such plans available for inspection by the public, commencing June 1, 1987. Adopted by the City Council of the City of Columbia Heights, Minnesota on May 26, 1987. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Paterson, and upon vote being taken thereon, the following voted in favor thereof: Nawrocki, Paul'son, Petkoff, Carlson, Peterson and the following voted against the same: None whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested to by the City Clerk-Treasurer. Mayor ATTEST: City Clerk-Treasurer EXHIBIT A NOTICE OF PUBLIC HEARING CITY OF COLUHBIA HEIGHTS COUNTY OF ANOKA STATE OF MINNESOTA NOTICE IS HEREBY GIVEN that the Council of the City of Columbia Heights will hold a public hearing on Monday, June 15, 1987, at approximately 7:30 p.m., relating to the modification by the Authority to reflect an enlargement of the geographic project area of the Redevelopment Project (the "Project") and the establishment of the Sullivan Lake Tax Increment Financing District located within the Project pursuant to Minnesota Statutes, Sections 462.411 to 462.716, inclusive, as amended, and Minnesota Statutes, Sections 273.7i to 273.78, inclusive, as amended. The hearing is also relative to the proposed modification of the Downtown CBD Revitalization Plan for the Project and the proposed adoption of the Tax Increment Financing Plan for Columbia Heights Sullivan Lake Tax Increment Financing District, copies of which Regular Council I,tay 26, 1987 page 25 Meeting will be on file and available for public inspection in the office not later than June 1, 1987. The property proposed the Project is legally described as follows: ADDITIONAL PROPERTY TO BE INCLUDED WITHIN THE REDEVELOPMENT PROJECT PIN #~s 25-30-24-22-0066 25-30-2~-23-0001 25-30-24-23-0003 25-30-24-23-0006 25-30-24-23-0010 25-30-24-23-0017 25-30-24-23-0018 25-30-24-23-0019 25-30-24-23-0020 25-30-24-23-0065 25-30-24-23-0104 25-30-24-32-0001 25-30-24-32-0002 25-30-24-32-0003 25-30-24-32-000~ 25-30-24-32-0061 '25=30-24-32-0062 25-30-24-33-0043 25-30-24-33-004~ 25-30-24-33-0045 25-30-24-33=00~6 25-30-24-33-0042 25-30-24-33-004~ 25-30-24-33-00~9 25-30-24-33-0050 25-30-24-33-005! 25-30-24-33-0053' 25-30-24-33-0064 35-30-24-11-0007 35-30-24-1i-0008 '35-30-24-]I-0009 35-30-24-11-0010 35-30-24-11-0011 35-30-24-11-0083 35-30-24-11-0084 36-30-24-22-0037 36-30-24-22-oo39 36-30-24-22-oo4o 36-30-24-22-0041- 36-30-24-22-0042 36-30-24-22-0043 36-30-24-22-0044 36-30-24-22-0045 36-30-24-22-0046 36-30-24-22-0047 36-30-24-22-0050 36-30-24-22-0052 '' PIN #'s 25-30-24-33-0065 25-30-24-33-0066 26-30-24-11-0003 26-30-24-11-0004 26-30-24-11-0006 26-30-24-11-0007 26-30-24-1]-0008 26-30-24-]]-0009 26-30-24-11-00]] 26-30-24-11-0012 26-30-24-11-0014 26-30-24-11-0016 26-30-24-]1-0017 26-30-24-{2-0001 26-30-24-]2-0021 26-30-24-12-0022 26-30-24-12-0023 26-30-24-12-0024 26-30-24-12-0025 26-30-24-12-0026 26-30=24-12-0027 26-30-24-12-0028 26-30-24-12-0047 26-30-24-]2-0049 26-30-24-12-00~1 26-30-24-12-00~2' 26-30-24-12-0053 26-30-24-12-0054" 35-30-24-32-0036 35-30-24-32-0037 35-30-24-32-0088 35-30-24-32-0090 35-30-24-32-0093 35-30-24-32-0095 35-30-24-32-0097 35-30-24-32-0098 35-30-24-32-0099 35-30=24-32=0100 35-30-24-32-0102 35=30-24=32=0103 35-30-24=32=0002 35=3O-24=32=0003 35-30=24=32=00O4 35-30-24-32=0005 35=30=24-32=0008 35-30-24-32-0009 C1erk-Treasurer~:s to be located within PIN #'s 26-30-24-12-0057 26-30-24-12-0058 26-30-24-12-0060 26-30-24-12-0061 · 26-30-24-12-0062 26-30-24-12-0065 26-30-24-12-0066 26-30-24-12-0067 '26-30-24-12-0070 26-30-24-12-0071 26-30-24-1&-0004 '26-30-24-14-0005 26-30-24~14-0010 26-30-24-14-0011 26-30-24-14-0012 26-30-24-14-0013 26-30-24-14-0014 26-30-24-14-0016 '26-30-24-14-0139 26-30-24-14-0140 35-30-24-11-0001 35-30-24-11-0002 35-30-24-11-0003 35-30-24-11-0004 35-30-24-11-0006' 35-30-24-34-0015 35-30-24-34-0016 35-30-2~-34-0017 35-30-24-34-0020. 35-30-24-34-0021 35-30-24-34=0022 35-30-24-34-0028 35-30-24-34-0031 35-30-24-34-0032 35-30-24-41-0090 35-30-24-41=0091 35-30-24-41-0093 35-30-24-41-0094 35=30-24-41-0095 35-30=24=41=0096 35,30=24-41=0097 35=30=24=41=0099 Regu I ar Play 26, page 26 Counc i ] 1987 Meeting PIN #'s 36-30-2~-22-0107 36-30-2a-22-0108 36-30-2a-22-0111 36-30-24-22-0113 36-30-24-22-0114 36-30-2a-22-0115 36-30-2a-22-0117 36-30-2~-22-0153 36-30-2a-23-0083 36-3D-2~-24-0017 36-30-24-24-0018 36-3o-2a,2a-oo19 36-3o-2~-2~-oo2o 36-3o-2~-2a-oo21 36-3o-2A-2~-oo22 36-3o-2~-24-oo23 36-3o-2a-2a-oo24 36-3o-24-24-oo25 36-3o-24-2~-oo26 36-3o-2~-31-oo26 36-3o-2~-31-oo27 36-3o-2~-31-oo28 36-3o-2~-31-oo29 36-3o-2a-31-oo3o 36-3o-24-31-oo31 36-3o-2a-31-oo32 36=3o-24-31-oo33 35-3o-2~-32-oo27 35-3o-2~-32-oo28 35-3o-2~-32-oo29 35-30-24-32=0030 35-3o-24-32-oo31 35-30-24-32-0032 35-30-24-32-0033 35-30-24-32-0034 35-30-24-32-0035 35-30-24-43-0001 35-30-24-43-0002 35-30-24-43-0003 35-30-24-43-0004 35-30-24-43-0005 35-30-24-43-0006 35-30-24-43-0007 35-30-24-63-0008 35-3O-24-43-OOO9 35-30-24-43-0010 35-30-24-43-0011 35-30-24-43-0013 35-30-24-43-0014 35-30-24-43-0015 35-30-24-43-0016 35-30-24-43-0017 35-30-24-43-0018 35-30-24-43-0019 PIN #'$ 35-30-24-32-0035 35-30-24-32-0061 35-30-24-32-0062 35-30-24-32-0063 35-30-24-32-0064 35-3O-24-33-OO65 35-30-24-33-0066 35-30-24-33-0076 35-30-24-33-OO78 35-30-24-33-0079 35-30-24-33-0080 35-30-24-33-0092 35-30-24-33-0093 35-30-24-33-0094 35-30-24-33-0095 35-30-24=33-0096 35-30-24-33-0o97 35-30-24-33-0038 35-30-24-33-0099 35-30-24-33-0100 35-30-24-33-0101 35-30-24-33-0102 35-30-24-33-0103 35-30-24-33-0104 35-30-24-33-0105 35-30-24-33-0106 35-30-24-34-0002 35-30-24-34-0OO3 35-30-24-34-00O4 35-3O-24-34-0008 35-30-24-34-0009 35-30-24-34~0010 35-30-24-34-0011 35-30-24-34-0012 35-30-24-34-0013 35-30-24-'34-0014 35-30-24-43-0020 35-30-24-43-0021 35-30-24-43-0022 35-30-24-43-0023 35-30-24-43-0028 35-30-24-43-0029 35-30-24-43-0030 35-30-24-43-003! 35-30-24-43-0032 35-30-24-43-003~ 35-30-24-43-0034 35-30-24-43-0035 35-30-24-43-0038 35-30-24-43-0039 35-30-24-43-0040 35-30-24-43-004! 35-30=24-43=0044 35-30-24-43-0047 PIN #'s 35-3o-24-~!-o!oo 35-30-24-41-0101 35-30-24-41-0102 35-30-24-41-0103 .35-30-24-41-0104 35-30-24-41-0105 35-30-24-41-0106 35-30-24-41-0108 35-30-24-41-0109 35-30-24-41-0110 35-30-24-41-0111 35-30-24-41-0116 35-30-24-41-0117 35-30-24-41-0118 35-30-24-41-0119 35-30-24-41-0120 35-30-24-41-0121 35-30-24-41-0122 35-30-24-41-0123 35-30-24-41-0124 35-30-24-41-0125 35-30-24;41-0126 35-30-24-41-0127 35-30-24-41-0128 35-30-24-41-0129 35-30-24-41-0130 35-30-24-41-0131 35-30-24-41-0132 35-30-24-41-0133 35-30-24-41-0134 35-30-24-41-0135 35-30-24-41-0139 35-30-24-41-0140 35-30-24-41-0141 35-30-24-41-0142 35-30-24-43-0048 35-30-24-43-0049 35-30-24-43-0050 35-30-24-43-0051 35-30-24-43=0053 35-30-24-43-0056 35-30=24=44=0012 35-30-24-44-0013 35-30-24-44-0014 35-30-24-44-00!5 35-30-24-44-0016 35-30-24-44-00!7 35-30-24-44-0018 35-30-24-44-0019 35-30-24-44-0020 35-30-24-44-0o21 35-30-24-44-0012 Regular Council Meeting May 26, 1987 page 27 PIN #'s PIN #'s PIN #'s 35-30-24-44-0024 35-30-24-44-0026 35-30-24-44-0027 35-30-24-44-0028 35-30-24-44-0029 35-30-24-440030 35-30-24-44-0031 35-30-24-44-0032 35-30-24-44-0033 35-30-24-44-0034 35-30-24-44-0143 35-30-24-44-OI44 ' 35-30-24-44-0145 35-30-24-44-0146 35-30-24-44-0147 35=30-24-44-0148 35-30-24-44-0149 35-30-24-44-0150 35-30-24-44-0151 PROPERTY TO BE INCLUDED WITHIN THE SULLIVAN LAKE TAX INCREMENT FINANCING DISTRICT PIN #'s PIN #'s' PIN #'s 26-30-24-12-O021 26-30-24-12-0022 26-30-24-12-0023 26-30-24-12-O024 26-30-24-12-0025 26-30-24-12-0026 26-30-24-12-0027 26-30-24-12-OO28 26-30-24-12-OO65 Further information relating to the above parcels may be obtained in the office of the Clerk-Treasurer. Dated May 26, 1987. d. Resolution Aut'horizing the Housing and Redevelopment Authority in and for the City of Columbia Heights to proceed with Execution of a Contract for Private Redevelopment By and Between the Housing and Redevelopment Authority and the Rottlund Company, Inc. Mayor Nawrocki felt the action being authorized in.this resolution was premature and that the hearing set for June 15th should be completed before this authori- zation is considered. He also noted that this document excludes park dedication funds. Motion by Carlson, second by Paulson to table further action on this resolution until after the hearing on June 15th. Roll call: All ayes e. Financial Consultant Contract with Miller & Schroeder, Inc. The fee schedule attached to this contract Was discussed. Motion by Peterson, second by Petkoff to authorize the Mayor and City Manager to execute a financial consultant contractwith Miller & Schroeder Financi'al, Inc. and that such contract shall apply to any bond issues awarded after this date. Roll call: All ayes f. First Reading of Ordinance No. ~ Being an Ordinance Authorizing Issuance of $1,100,000 General Obligation Taxable Tax Increment Bonds of 1987, Series A Motion by Petkoff, second by Peterson to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes ORDINANCE NO. ]~ES-/I S~ AUTHORIZING ISSUANCE OF $1,100,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS OF 1987, SERIES A The City of Columbia Helghts does ordain: 1. Bond Purpose and Authorlzatlon Sale. Regular Council Meeting May 26, 1987 page 28 a. Pursuant to the provisions of Minnesota Statutes, Chapter q75, the City of Columbia Heights (the "City") is authorized to issue general obllgation tax increment bonds for the purpose of financing public redevelopment costs of the redevelopment project established by The Housing and Redevelopment Autho- rity in and for the City of Columbia Heights, Minnesota, designated as the 'Downtown C.B.D. Revitalization Project (the "Project"). b. It is hereby found, determined and declared that the financing of certain public redevelopment costs of the Project is necessary and desirable and in the best interest of the public health and welfare, and that the City should issue, and the City hereby authorizes and directs the issuance and sale of, its General Obligatlon Taxable Tax Increment Bonds of 1987, Series A In the principal amount of $1,1OO,O00 (the "Bonds"). 2. Sale. This City Council (the "Council") shall meet at the time and place specified in the forms of Official Notice of Bond Sale for the Bonds attached hereto as Exhibit B for the purpose of opening and considering sealed bids for, and awarding the Sale of the Bonds. 3. Notice of Bond Sale. The Council hereby authorizes and directs the City Manager or his designee to cause to be published the notice of advertisement for sealed bids for the Bonds in the officlal newspaper of the City, and in Commercial West, at Minneapolis, Minnesota, in substantially the form attached hereto as Exhibit B. Each and all of the terms and provisions set forth in such notices are adopted and con- firmed as the terms and conditions of the Bonds and the sale thereof. 4. Official Terms of OfferinQ. The Offlcial Terms of Offering of the Bonds in sub- stantially the form attached hereto as Exhibit A shall constitute the terms and con- ditions for the sale of the Bonds, and the Council hereby authorizes the incorpora- tion of such terms and.conditions in the material to be distributed to prospective bidders for the Bonds. Information and bidding forms may be obtained from the undersigned or from Miller Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55440; 612-831-1500, financial consultants to the City. 6. This ordinance shall be in ful'l force and effect from and after 30 days after its passage. First Reading: May 26, 1987 hCJ The second reading of Ordinance No.~ and the public hearing will be held on a Special Council Meeting on June 15, 1987. Communications The City Manager noted that a petition had been received bearing three signatures stating opposition to pidgeons being kept at a home in the area. Copies of this petition had not been received by the Council. The City Manager's Administrative Assistant will distribute copies of this petition to the Council and the item will be on the agenda of the next Regular Council meeting. Regular Council Meeting May 26, 1987 page 29 Old Business Air Conditioni.ng. Units at John P. Murzyn Hall Complaints have been received regarding the noise eminating from the air conditioning units located outside of Murzyn Hall. Several attempts have been made to solve this noise problem. At the present time these corrections have not brought the units into compliance with the noise standards which are acceptable. The Mayor requested this problem continue to be addressed and be an agenda item at each ensuing Council meeting until a solutlon is found. New Business Authorization for Removal and Installation of Emergency Equipment on Police Squad Cars Bids 'had been received for this work and they were discussed by the Council. The City Manager noted that seven other cities had been contacted regarding work done by the low bidder. The Mayor noted that it would be a cost savings for the City staff to do this work. Mayor Nawrocki requested that careful records be kept on this work and the Council receive an informal report. Motion by Carlson, second by Paulson to reject the bids received and the work be done in the City Shop. Rol1 call: All ayes Additional Appropriation fo~ M. urzyn Hall Addition/Renovation Motion by Paulsoni second by Petkoff to table this item for additional information. Roll call: Ail ayes Other New Business Fige Foot Easement Vacation The property owner at 3856 Quincy Street requested the City to vacate part of an easement or right-of-way for five feet. The City Attorney had spoken to the title company regarding this situation and they advised him they would close on this property if the City were to grant the easement. The City Attorney noted that the roadway adjacent to this property, 39th Avenue, is a State Aid Street and if a five foot easement were granted that State Aid funds could be jeopardized for use if the width were decreased. PresentlY, the street is sixty feet wide which is the minimum acceptable. No Council action was taken as this was an informational item. Retaining Wall at 4458 Stinson Boulevard The City Manager advised that a stop order has been issued on the construction of a retaining wall at 4458 Stinson Boulevard. A portion of the wall is being built on the right-of-way. He felt a permit should be taken out for the construction, He suggested that the wall be allowed to remain and be finished but it be author- ized on a contingent basis as it is partially on the right-of-way. The City Mana- ger requested members of the Council view the wall. Banners on Central Avenue in Downtown Redevelopment Area The City Manager had received a memo from the Community Development Director, Todd Stutz, requesting authorlzatlon to use Some funds to replace some of the banners in the Downtown Redevelopment Area. He is requesting permission to purchase eleven banners for a total cost of $q,2t8.22. It was noted that the Bicentennial Commission has authorized funds totalling $1,174.36 for this purpose. Stutz recommended the balance of the costs come from the Downtown Improvement Fund. Mayor Nawrocki re- quested that some other type of fabric be looked for these banners as the banners Regular Council Meeting May 26, 1987 page 30 purchased previously had not proven to be very weatherworthy. The City Manager will also instruct Stutz to contact other vendors. Motion by Peterson, second by Paulson to authorize the Mayor and City Manager to execute a contract to purchase/order banners for the downtown area. Ro11 call: AI1 ayes Reports a. Report of the City Manager The City Manager's report was submitted in written form and the following items were discussed: 1. Appointment of Fire Chief: Effective May 12, 1987 Charles Kewatt was appointed Fire Chief. He will be compensated at the rate of $2,943 per month, which is the 1986 entry rate for the Fire Chief position. 2. Repair of High Pressure pump on Sewer Vactor Equipment: The anticipated cost of this repair is approximately $700. The City Manager will contact each member of the Council if the repair estimate exceeds $1,000 regarding their position on authorizing the additional costs. 3. Status Regarding Recycling Program Coordinator Position: The individual the City Manager had recommended for this position had declined. Additional infor- mation will be given to the Council as the situation dictates. 4. Meeting with Residents at University Heights, 300 ~lst Avenue: The City Manager had met with residents of this development and outlined in his report what their concerns are. He also noted some of the causes of the problems as well as pro- posed solutions. The City Manager will be meeting with the developer in the near future wlth the intent of negotiating some items to eliminate the water- ponding problems. b. Report of the City Attorney The City Attorney had nothing to report at this time. Licenses Motion' by Carlson, second by Peterson to approve the licenses as listed upon pay- ment of proper fees and that the fee be waived for the Columbia Heights Boosters food concession license to be used at the Fourth of July Celebration. Roll call: All ayes Payment of Bills Motion by Petkoff, second by Paulson to pay the bills as listed out of proper funds. Roll call: All ayes A Council Work Session was scheduled for June 2nd at 8:30. Mayor Nawrocki noted that the Audit Management Letter was completed and given to staff. He felt this should have come directly to the Council. Adj ou rnmen t u~/ Moltion 'by' Carlson, second by Peterson to ad jo~~.mi· Roll call: All ayes t M~y~ar~ Bruce G. Nawrocki -A'nne Student, (~ouncil Secretary