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HomeMy WebLinkAboutJuly 23, 1990OFFICIAL PROCEEDINGS COLUHBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL HEETING JULY 23, 1990 Mayor Carlson called the meeting to order at 7:30 p.m.. l. ROLL CALL NawrockI, Clerkin, Ruettimann, Peterson, Carlson - present 2. PLEDGE OF ALLEGIANCE 3. CONSENT AGENDA The following items were on the Consent Agenda: Approval of Minutes of Prevloug Heet.lng(s,) The Council approved the minutes of the Regular City Councll Hee~ing of July 9, 1990 as presented and there were no corrections. ~Fquest by Immaculate Conce~ion Church for Permission to Park Semi-Trailer on City-Owned Property The Council granted permission to the Immaculate Conception Church for parking of a semi-trailer on City-owned property at the Hunicipal Service Center yard with the Public Works Director designating a specific location. Ninth Annual Recyclln9 Cpngress The Council approved the attendance of Georgia Reay, Recycling Coordinator, at the Ninth Annual Recycling Congress to be held in 5an Oiego, California from August 19-2q, 1990 and that related expenses be reimbursed. Authorization to Enter into a Contract with Star & Tribune The Council authorized the Hayor and City Manager to enter into a classlfled contract with the Star & Tribune, effective dune 5, 1990 through June 5, 1991. Establlsh Startin9 Salary for Buildin9 Inspector The Council ratified the action of the Cit~'Hanager authorizing the hiring of Evelyn Nygaard at the one year rate of $2,985 of the 1990 Bulldlng Inspector salary range. Approval of License Applications The COuncil approved the 1990 license applications as listed upon payment of proper fees and ~alved the fees requested. .Payment of Bills The Council authorized the payment of bllls as listed out of orooer funds. APPROVAL OF CONSENT AGENDA I~otlon by Nawrockl, second by Clerkin to approve the Consent Agenda as pre- sented. Roll call: AI! ayes 2- PRESENTATIONS/PROCLAI''tATIONS/OPEN HIKE Mayor Carlson read the proclamation designating August 1, 1990 as Clarence Coffel Oay in Columbla Helghts In recognition of Hr. Coffel~s 90th Birthday. The proclamation was presented to Hr. Coffel~s son and grandson. Regular Council Meeting July 23, 199o page 2 Mayor Carlson read the proclamation designating August 7, 1990 as "Nationa] Night Out~ and presented it to Roger Paterson, Community Service Officer for the Columbia Heights Police Department. The Mayor presented a plaque to Richard Anderson in recognition of his thirteen years of service to the City as an HRA Commissioner. Senator Don Frank gave an update on what took place at the most recent Legis- lative Session. The resident at ~931 Jackson Street expressed her concern with a number of subjects regarding her property. It was noted that all of these concerns had been previously addressed in correspondence from the City Manager. Counci-lmember Nawrocki requested a copy of this letter again be sent to the property owner via certified mail. 6. PUBLIC HEARINGS~ ORDINANCES AND RESOLUTIONS a. Public Improvement Hearing for PIR 870, Project #902h, Construction of 38th Place The City Manager reviewed the project using an overhead slide projector. He pre- sented the estimated costs for the proposed road which would be 37~ from back of curb to back of curb. The project would also include new storm sewer, new aggregate base, new concrete curb and gutter including driveway aprons, new bituminous or concrete surfacing, resoddlng and miscellaneous associated construction items. Six property owners will be assessed for this project. Some of the affected property owners stated their opposition to this project, noting that they have no use for the street and it is being proposed only to benefit one business, that being, Invest Cast. Bill Walker, owner of Invest Cast, stated he needs access to his property and that there will be a truck turn-around area on his property. Councilmember Nawrocki inquired if there is an alternative to this proposal which may not been so expensive. The City Manager responded that the truck traffic and weight of vehlcles using the street was a consideration to constructing the street to a nine ton grade and making It thirty-seven feet wide. Councilmember Nawrocki inquired if it wou]d be feasib]e to put in the storm sewer and to put down an ~1 base and leave it as an oil street. Kathy Young, Assistant City Engineer, observed that this is basically what is there now. Councilmember Nawrocki suggested that the work as proposed regarding the excavation, sub-base, grade work to carry weight and oll be done and the blacktop surface, curb and gutter not be done. Young stated this could be done but it would be a higher maintenance street. Dis- cussion continued regarding water runoff. Walker stated that the required surface on his leased lot will Increase runoff into the street. Councilmember Paterson felt the gravel road was not a wise alternative as it would need frequent grading. Councilmember Nawrocki again stated he felt the amount of traffic on this road did not justify a full fledged paved road. The City Manager gave the per parcel costs for a project as suggested by Councilmember Nawrocki. Motion by Nawrockl, second by Ruettimann to continue the Public Hearing to the Council Meeting of August 13th and that staff be directed to return with a plan Regular Council Meeting July 23, 1990 page 3 that would do the sub base, no curb and gutter and no blacktop surface, but would have some sort of treatment to the surface and that staff prepare data which would show negative effects of this type of road and type of grading. Councilmember Paterson observed that this compromise ~ould take $25,000 off the project costs but would result In a very poor street which would not last. He would rather see the City pay more of the costs and result in a street whlch would last twenty-five to thirty years. Ro11 call: Nawrockl, Carlson - aye Motion fails. Clerkin, Ruettlmann, Paterson - nay Councllmember Nawrockl observed that no property owners have paid any street assessments on 39th Avenue as it Is a Minnesota State Aid road. flotlon by Paterson, second by Clerkin to prepare the assessment rolls so there will be a street/avenue rate charged rather than only on a street basis for assessments. Councilmember Nawrocki requested staff to advise the Council of what the charges will actually be on the basis of a street/avenue charge for.each parcel Involved. A presentation was made on a street/avenue charge basis. Roil call: Clerkin, Ruettimann, Paterson, Carlson - aye Nawrockl - nay flot$on by Peterson, second by Ruettimann to waive the reading of the resolution there being ample copies available to the public. Roll call: All ayes RESOLUTION NO. 90-37 BEING A RESOLUTION ORDERING IMPROVEMENTS BE IT HEREBY RESOLVEO by the City of Columbia Heights by motion on the Ilth day of June, 1990, ordered notice of a hearing to be given to property owners, and WHEREAS, pursuant to a notice of hearing certain residents appeared at a Council Heetlng on the 23rd day of July. 1990, and WHEREAS, the Council determines to proceed with this local Improvement, a portion of the cost being defrayed by special assessments under Charter provisions. NOV, THEREFORE, IT IS HEREBY RESOLVED: 1. That the location and extent of such improvements ls as follows: Construction of 38th PJace N.E. Work Includes new concrete curb and gutter, including driveway aprons, new aggregate base, new bituminous or concrete surfacing, new storm Se~er, resodding and miscellaneous associated construction Items. The roadway width wi11 be 37' from back of curb to back of curb (existing width is approximately 30') 2. That the materials to be used are as follows: Filter fabric, aggregate base, bituminous surfacing, concrete curb and Regular Council Meeting July 23, 1990 page q gutter, concrete surfacing, concrete driveway aprons, sod, reinforced concrete storm sewer pipe, , concrete manholes and catch basins and various appurtenances. 3. That a careful estimate of the cost of the improvements has been made by the City Manager and the several lots and parcels of land fronting upon and adjacent to such proposed improvements, which be deemed benefited thereby, were properly notified of said hearings, and That the City Manager shall proceed with taking of bids for the improvements, or portions of the improvements as stated herein. 6. These improvements shal 1 be known as P.I.R. //870 - Project 9024. Passed this 23rd day of July, 1990. Offered by: Seconded by: Roll call: Peterson Ruettimann Clerkin, Ruettimann, Peterson, Carlson - aye Nawrocki - nay Jo-Anne Student, Council Secretary Mayor Edward Ft. Carlson b. Second Reading of Ordinance No. 1205; Being an Ordinance Amending Ordinance No. 853, Pertaining to the Rezoning of Certain Property This property is located approximately northof 37th Avenue, south of the north property lines on 38th, west of Madison Place and east of Industrial property. The City Manager requested this item be continued as he is not certain that all affected property owners received notice of this second reading. Motion by Clerkin, second by Ruettimann to continue this matter and direct staff to post notices of this public hearing and that notices of the public hearing be sent to the affected property owners. Roll call: All ayes c. Resolution No. 90-38; Being a Resolution Awarding the Sale of $2,399,720.75 General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A; Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment The bond counsels from Miller & Schroeder advised the Council that the bid opening was held today and three bids were received. The lowest bid was received from Prudential-Bache Capital Funding in Chicago. Councilmember Nawrockl noted that the architect's estimates were increased from $1.8 to $2.4. He stated that the HRA is in the process of looking at several alternatives to bring the costs down. The HRA Director reviewed with the Council the alternatives and the origlnal proposal received from the architect. Councilmember Nawrocki, who represents the Council on the HRA, inquired if members of the Council were amenable to finding other sources of funding if this project needed it. Some Councilmembers felt this would be possible. Regular Council Meeting July 23, 1990 page 5 Motion by Peterson, second by Clerkin to waive the reading of the reso]ution there being ample copies aval]able to the public. Roll call: AIl ayes RESOLUTION NO. 90-38 A RESOLUTION AWARDING THE SALE OF $2,399,720.75 GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990, SERIES A; FIXING THEIR FORM AND SPECIFICATIONS;' DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the. City of Columbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Sale of Bonds 1.01. The bid of Prudential-Bache Capital Funding (the"Purchaser") to purchase $2,399,720.75 General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A (the "Bonds") of the City described in the Official Notice of Sale thereof is found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and is hereby accepted, the bid being to purchase the Bonds at a price of $2,363,724.9q in the original principal amount of $2,399,720.75 for Bonds bearing terms and yields to maturity as hereinafter set forth. i.02. The City Manager is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful bidders forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City will forthwith issue and sell the Bonds in the total orlginal principal amount of $2,399.720.75 to be dated the date of settlement which is expected to be August 23, 1990, in the denomination of $5,000 Accreted Amount (as hereinafter defined) at maturity each or any integral multlple thereof, numbered No. R-l, upward, bearing interest payable at maturity at the approximate yields to maturity and which mature serially on September 1 in the years and amounts as follows: Year Total Accreted Amount at Maturit~ Total Original Original Principal Amount Prl. nc.ipal Amount per $5,000 at Maturity Approximate Yield: to Maturity 2002 $885,000.00 $391,515.15 $2,211.95 6.90~ 2003 920,000,00 377,917.60 2,053.90 6.95 2004 920,000,00 350,854,40 !,905.35 7.00 2005 920,000.00 327,271.60 1,778.65 7.00 2006 .920,000.00 300,821.60 1,634.90 7.10 2007 920,000.00 280,544.80 1,524.70 7.10 2008 920,000.00 259,375.60 1,409.65 7.15 2009 q25,000.OO i11,690.OO !',31q. OO 7.15 The original principal amounts set forth above will be adjusted as appropriate for any change in the settlement date. Regular Council Meeting July 23, 1990 page 6 The original principal ·mounts set forth above wiU be adjusted as appropriate for any change in the settlement date. 1.04. Optional Redemption. The City may el·et on September 1, 2005 and on any March I or September I thereafter to prepay Bonds maturing on or after September 1, 2006. Redemption may be in whole or in pitt of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having · common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. Prepayments will be at a prier equal to the Acer·ted Amount on the date of redemption. Section 2. Ret, tstratlon and payment. 2.01. Regtste.red Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal ·mount thereof, is payable by cheek or draft issued by the Registrar described herein. 2.02. Interest. The Bonds shall bear interest from their date of settlement. Interest on the Bonds of each maturity shall be compounded ·t the yield to maturity · pplleable to that maturity, ~s set out in Section 1.03 of this Resolution, commencing September 1, 1990, and semiannually thereafter on eanh March 1 and September 1, and interest on the Bonds shall be pay·bi·, together with the principal thereof, only ·t maturity or upon optional redemption thereof. For purposes of this Resolution ·nd the Bonds, the compound value of eanh Bond as of a given March I or September I shall be the original principal amount thereof plus the interest thereon eomDounded (in accordance with the foregoing provisions) and aa·rued to said date, as set forth in Exhibit A hereto, and shall be referred to herein as the "Acer·ted Amount". 2.03. Registration. The City will appoint, and shall maintain, · bond registrar, transfer asent, authenticating a~ent and paying a~ent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows.' (a) Ret;tster. The Registrar must keep at its principal corporate trust off lee a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and ex·hanses of Bonds entitled to be registered, transferred or ex·hanged. (b} Transfer of Bonds. Upon surrender for transfer of · Bond duly endorsed by the registered owner'"' thereof or accompanied by · written Instrument of transfer, In form satisfactory to the Registrar, duly Jexeeuted by the registered owner thereof or by an attorney duly authorized by the re,tat·red owner In writing, the Registrar will autbentle·te and deliver, in the name of. the designated trn~sfaree or transfareas, one or more new Bonds of · like agTregate principal amount and maturity, as requested by the transferor. The Registrar may, however, ·lose the books for registration of any transfer after the fifteenth day of the month preceding ··eh Interest payment data ~nd until such interest payment date. (e) ExehanKe Of Bond. st When Bonds are surrendered by the registered owner for exchange the Registrar will autbentie·te ·nd deliver one or more new Bonds of · like ·~,regate principal ·mount and maturttyi as requested by the registered owner or the owner's attorney in writing. Regular Council July 23, 1990 page 7 Meeting (d) Cancellation. Bonds suzTendered upon Lay transfer or exehanse will be promptly cancelled by the Registrsz' and thereafter disposed of as directed by the City. (e) Im fo_ eror U_nauthoriz~ed Transfer. When a Bond is presented to the Regixtr~r for transfer, abe Registr~ may refuse to trmmfer the Bond until the Regixtr~ is satisfied that the endorsement on such Bond or sep&~ate instrument of transfer is v&iid and ~enuine Lad that the requested tx~nsfer is legally authorized. The Registrar will incur no liability for the refusal, In ~)od faith, to make transfers which it, in its Judgment, deems improper or unauthorized. (f) Pe. rsons Deemed Owners. The City Lad the Registry. may treat the person in whose name a Bond is registered in the bond register ns the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of reeeivtnK payment of, or on account of, the principal of Lad interest on the Bond and for all other purposes, and payments so made to t registered owner or upon the ownerts order will be vstid and effeetu&l to satisfy and .disehaz~e the liability upon such Bond to the extent of the sum or sums so pa[d. (E) Taxest Fees and Charges. For a transfer or exehLa~e of Bonds, the Reristrar may impose a charge upon the owner thereof sufficient to reimburse the Registr&r for Lay tax, fee or other Eovernmenttl choke required to be paid with respect to the transfer or exehLaKe. (h) Mutilatedt I, ost~ Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the lteKistr~' will deliver 8 new Bond of like amount, number, maturity date Lad tenor' in exehLaKe and substitution for and upon cancellation of the mutilated Bond or in lieu of Lad in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registr8~ in eonne~tion therewithj and, in the ease of a Bond destroyed, stolen or lost, upon filinE with the Registrm' of evidence satisfactory to it that the Bond w~s destroyed, stolen or lost, and of the ownership thereof, and upon furnishinE to the ltegistrM' of an appropriate bond or indemnity in form, substLaee and amount satisfactory to the lte~fstrm', in which both the City and the Registrar must be named as obliKees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such eLaeellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has &lready matured or been called for redemption in aeeordLaee with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds ~e e~lled for t~lemption, notJae thereof identifyin~ the Bonds to be redeemed will be given by the ReLdstr~ by mailin~ a ropy of the redemption notlee by first elm mall (postaEe prepaid) not more thLa 60 Lad not less thLa 30 days prior to the date fixed for redemption to the registered owner of each Bond to bo redeemed at the address shown on the reEistration books kept by the Registr8~ m~d by publJshin~ the notice in the m~nner roquired by l~w. Failure to ~ive notice by publication or by mail to ~ny registered owner, or any defeat therein, will not affect the validity of any proeeedin~ for the ~demption of Bonds. Bonds so mailed for redemption will erase to bern' interest after the spo~lfied redemption date~ provided that the funds for the redemption ~e on deposit with the place of payment at that time. Regular Council · July 23, lggO page 8 Meeting 2.04. A~oointment of Initial Re,sitar. The City appoints Norwest Bank Minnesota, Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City~ a contract with the Registrar. Upon merger or eormolid&tJon 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 is authorized to art as successor Registrar. The City a~'ees to pay the reasonable and customary ehat~es of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of · successor Registrar, in which event the predecessor Rewistrar must deliver all rash and Bonds in its possession to the successor Re~'lstrar and must deliver the bond register to the successor Re~'istrar. On or before each principal or interest due date, without further order of this Council, the City Clerk Treasurer must transmit to the Re~istrar moneys sufficient for the payment of all amounts then due. 2.05. Exeeution~ Authentication and Delivery. The Bonds will be executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, en~'raved or lltho~raphed facsimiles of the originals. In ease any officer whose si~nature or a facsimile of whose st~ature appears on the Bonds erases to be such off leer before the delivery of any Bond, such siwnature or facsimile will nevertheless be valid and suffielent for all purposes, the same as if the officer had remained in off lee until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of auth.entieation on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of autbentieation on different Bonds need not be sl~q~ed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager shall deliver the same to the Purchaser upon payment of the porehase prier in accordance with the contract of sale heretofore made,end executed, and the Purchaser is not obligated to see to the application of the purohase prier. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3..F..orm of Bond. 3.01. The Bonds will be printed in substantially the following form: [Pare of the Bond] UNITED STATES OP AMERICA STATE O1~ MINNESOTA COUNTY OF ANOKA CITY Gl~ COLUMBIA HEIGHTS GENERAL OBLIGATION TAX INCREMENT CAPITAL APPRECIATION BOND O1' 1990, SERIES A Regular Council July 23, 1990 page 9 Heating No, Original Principal Maturity Date Amount . .Date of Orf~tnal !.ssue ,, , 19 CUSIP REGISTERED OWNER** ACCRETED AMOUNT AT MATURITY** The City of Columbia Heir, his, Minnesota, a duly organized and existin~ municipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises, to pay to the registered owner specified above or re~*istered assti,~ns, the Aeereted Amount set forth above on the maturity date specified above, bein~ the original principal amount set forth above with interest from the date of original issue stated above compounded and payable with principal at maturity at the rate which compounded, on each March I and September 1, eommenein~ September 1, 1990 results in the Aeereted Amount set forth for such date in the table printed on the reverse side hereof for each $$,000 maturity amount, subject to the provisions for prior redemption of this Bond hereinafter set forth. The Aeereted Amount of this Bond is payable to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the Immediately preeedlnw month upon presentation and surrender hereof, the prinelpal hereof, in lawful money of the United States of Amarlea by cheek or draft by Norwest Bank Minnesota, Minneapolis, Minnesota, as Bond Registrar, PayinW A~ent, Transfer Awent and AuthentleatinW Awent, or its designated successor under the Resolution described herein. For the prompt and full payment of such Aeereted Amount as the same becomes due, the full faith and credit and taxinw powers of the City have been and are hereby irrevocably pledwed. The City may elect on September 1, ~005, and on any March 1 or September 1 thereafter, to prepay Bonds of this issue maturin~ on or after September 1, 2006. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remainin~ unpaid whleh have the latest maturity date will be prepaid first. If only part of the Bonds havinw a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at the Aeereted Amount u of the date of redemption. The City Council has deslrnated the Bonds as **qualified tax exempt obliEations" within the meanJnw of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the *Code") relatina: to disallowance of interest expense for financial Institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond are contained on the reverse hereof and such provisions have the same effect as though fully set forth in this place. Regular Councll July 23, 1990 page 10 ~eet|ng This Bond will not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on Its behalf by the facsimile sirnatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated= CITY OF COLUMBIA HEIGHT9, MINNESOTA , (facsimile) (facsimile City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. NORWEST BANK MINNESOTA Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate original prineipal amount of $2,399,720_,_7.~nZ1 of like ort~tnal issue date and tenor, except as to number, maturity date, redemption privilege, and approximate yield to maturity, all Issued pursuant to a resolution adopted by the City Council on Ju:tv 23 ,1990 (the "Resolution"), for the purpose of providing money to aid in financing public redevelopment costs of a Redevelopment Project (the "Project") in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Seettorm 469.174 to 469.179, the Minnesota Tax Increment Financing Act, and Minnesota Statutes, Sections 469.001 through 469.047 and the City*s home rule charter and the Aeereted Amount hereof is payable primarily from tax increments resulting from increases in taxable valuation of real property in certain Tax Increment Financing Districts (the PrlF Districts") with the Project, as set forth In the Resolution to which reference is made for · full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself, to lev~ additional md valorem taxes on all taxable property In the City in the event of any deficiency of tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 Aeereted Amount at maturity or any Integral multiple thereof. As provided in the Resolution and subject to certain limitations set forth therein, this Bond Is transferable upon the books of the City at the prlneipal office of the Bond Registrar, by the registered owner hereof in person or by the owner*s attorney duly authorized in writing upon surrender hereof together with · written instrument of Regular Council July 23, 1990 page i I fteet i ng transfer satisfactory to the Bond Registrm., duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bern.lng Interest at the same rate and maturing on the same date, subject to reimbursement for any t~x, fee or governmental abm.ge required to be paid with respect to such transfer or exeh&nge. The City and the Bond Registrm. may deem and treat the person in whose name this Bond is registered ~s the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other po~oses, and neither the City nor the Bond Regtstrm. will be ~ffeeted by any notice to the eontrm'y. IT I~ HEREBY CERTIFIED, RECITED, COVENANTED AND AOREBD that all acts, conditions ~nd things required by the Constitution and laws of the State of Minnesota ,nd the City's home rule ebro'tar to be done, to exist, to happen ~nd to be performed p~eliminm-~ to ~nd in the i~uanee of this Bond in order to make it a va/id and binding general oblig~tion of the City in aeoord~nee with Itl terms, have been done, do exist, have happened mui have been performed M so requf~ed, ~nd tl~t the issuance of this Bond does not cause the indebtedness of the City to exoeed any eonstitutlon~l, statutory or eh~rtm, limitation of indebtedness. TABLE OF ACCRETED AMOUNTS Bonds Maturing September 1 Date 2002 2003 2004 2005 2006 200? 2008 Date of Original Issue September 1, 1990 · Mm.eh 1, 1991 September 1, 1991 Mm.eh 1, 1992 September 1, 1992 Mm.eh 1, 1993 September 1, 1993 Mm.eh 1, 1994 September 1, 1994 Mm'eh 1, 1995 September 1, 1995 Mm.eh 1, 1996 September 1, 1996 Mm.eh 1, 1997 September 1, 1997 Mm.eh 1, 1998 September 1, 1998 Mm.eh 1, 1999 September 1, 1999 Mm.eh 1, 2000 September 1, 2000 Mm.eh 1, 2001 September 1, 2001 Mm.eh 1, 2002 September 1, 2002 Mm.eh 1, 2003 September 1, 2003 Mm.eh 1, 2004 Regular Council July 23,1~90 page 12 September 1, 2004 March 1, 2005 September 1, 2005 Mm'eh 1, 2005 September 1, 2005 Mm'eh 1, 200? September 1, 200? Mar~h 1, September 1, Mm'eh 1, 2009 September 1, 2009 Meeting (Form of certificate to be printed on the reverse side of each Bond, following a full ropy of the legal opinion.) I certify that the above Is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of Bonds of the City of Columbia Heights, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. (Facsimile Si&nature) City Manager The following abbreviations, when used in the inscription on the fare of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations= TEN COM -- as tenants UNIF GIFT MIN ACT in common (Cust) TEN ENT- as tenants by entireties Custodian (Minor) under Uniform Gifts or Transfers to Minors JT TEN -- as Joint tenants with right of survivorship and not as tenants in common Art ......... (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for re~istration of the within Bond, with full power of substitution in the premises. Dated= Regular Council Meeting 3uly 23, 199o page 13 Notiee~ The aui~not~s si~ature to this assignment mu~teo~espond with the name ~ It appe~ u~n the face of tbs within ~nd ~ eve~ p~ti~l~, without ~teretion or ~y ehan~e whatever. Si&nature Guaranteed; Si~Tmture(s) must be guaranteed by a national bank or trust eompany or by a brokerage firm having a membership in one of the major stock exchanges* The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for alt Joint owners if this Bond is held by Joint account.) Please insert social security or other identifying number of assignee 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Holmes & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on each Bond, together with a certiflclte to be st~ned by the facsimile aiL*nature of the City Manager in substantially the form set forth in the form of Bond. The City Manager is authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices. Section 4. Paymentt Seeurit~*~ Pledj~es and Covenants. 4.01. The Bonds are payable from the Debt 6erviee Subaceount of the Project Account created on the official records of the City by a resolution of the City adopted on Au~mt 11, 1980, and all tax increments (the "Tax Increments0) received by the City from Tax Increment Financing Districts A3 end C7 (the ~TIF Districts*) pursuant to the Tax Increment Pledge Agreement between the City and the Housing and Redevelopment Authority of the City of Columbia Hel~hts (the °HRA*) are pledged to the Debt Service Subaccount. Ad valorem tues levied under 5action 4,02 are also pledged to the Debt Service Subaceount. If any payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Subeeeount to pay .the lame, the City Clerk-Treasurer is directed to pay such principal or interest from the general fund of the City, and the general fund is to be reimbursed for such advances out of the proceeds of Tax Increments when received. 4.02. It is determined that the estimated collection of Tax Increments for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed et this time. Regular Council July 23, 1990 page 14 Heeling 4.03. The City Manager is directed to file a certified espy of this Resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. Section S. Application of Proceeds. S.01. The proceeds of the Bonds shall be transferred to First Trust National Association (the #Escrow A~ant') on September 4, 1990 to be applied to redemption of the Tax Increment Revenue Bonds, Series 1990 (the "Revenue Bonds") of the HRA. Amounts received from the Escrow A~ent or the HRA constitutin~ proceeds of the Revenue Bonds th&Il be deposited In the Project Account and disbursed to pay or reimburse for payment of public redevelopment easts of the Project. Section 6. Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Put~haser and to the attorneys approvin~ the Bonds, certified copies of proceedings and records of the City relatinE to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledEe or as shown by the books and records In their custody and under their control, relatinK to the validity and marketability of the Bonds and such instruments, includinK any heretofore furnished, shall be deemed representations of the City as to the facts stated therein. 6.02. The Mayor and City ManaKer are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement Is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section ?. Tax Covenant. ?.01. The City covenants and arrees 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 aKents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Re~ulattorm promulKated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or aKents to take, all affirm·tire action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Re~ulations, as presently existln~ or as hereafter amended and made applicable to the Bonds, ?.02. (a) The City will comply with requirements necessary under the Code to establish end maintain the exclusion from Wross income of the interest on the Bonds under Section 103 of the Code, lncludin~ without limitation requirements ralatinw to temporary periods for investments, and limitations on ·mounts invested ·t · yield treater than the yield on the Bonds. (b) For purposes of quallfyinw for the small issuer exception to the federal arMtrawe rebate requirements, the City rind determines and declares that the staTe,ate race amount or all tax-exempt bonds (other than private activity bonds) issued by the City (and &ti subordinate entities of the City) durinw the calendar year in which the Bonds are Issued and outstandlnw at one time is not Regular Council Meeting July 23, lCJ90 page 15 ressonably expected to exceed $5,000,000, all within the 148(f)(4)(C) of the Code. meaning of Section 7.03. The City fu~her covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaninK of~ Sections 103 and 141 tlu'ouEh 150 of the Code. ?.04. In order to qualify the Bonds as #qualified tax-exempt obligations" within the meaning of Section 255(b)(3) of the Code, the City makes the following factual statements and representations~ (a) the Bonds ere not "private activity bonds" es defined in Section 141 of the Codel (b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Codel (e) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(e)(3) bonds as not being private activity bonds) which will be issued by the City (and ell subordinate entities of the City) during ealander year 1990 will not exceed $10,000,000~ and (d) not more than $10,000,000 of obligations issued by the City during calender year 1990 have been designated for porposes of Section 255(b)(3) of the Code. ?.OS. The City wtU use its best efforts to comply with any federal p~oeedutal requirements which may apply in order to effectuate the designations made by this section. The motion for the adoption of the foregoing resolution was duly seconded by Member ClerkJn , , and upon vote being taken thereon, the following voted in favor thereofl Carlson, Nawrockl, Clerkin, Ruettlmann, Paterson and the following voted against the samm None STATE OF MINNESOTA COUNTY OF ANOKA whereupon said resolution was deelered duly possed and adopted, ~. ~,~ ~. Mayor Edwa?d M: -C~rlson o-An~ Student, COuncil Secretary ) ) Deputy City I, the unde~i~ed, ~ing the duly qu~ified and acting C l ark of the City of Regular Council Meeting July 23, 1990 page 16 Columbia Heights, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on July 23, 1990, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $2,399,720.75 General Obligation Capita] Appreciation Tax Increment Bonds of 1990, Series A of the City. WITNESS My hand officially as such this 23rd day of July, 1990. ..... and the corporate seal of the City (SEAL) Jo-Anne Student, Deputy City Clerk RECESS: 10:15 p.m. RECONVENE: 10:25 p.m. d. Resolution No. 90-39; Formalizing Approval of Additional Senior Housing Site Notion by Peterson, second by Ruettlmann to-waive the reading of the resolution there being ample copies available to the public. Roll call: Ail ayes RESOLUTION NO. 90-39 BEING A RESOLUTION OF THE CITY COUNCIL OF COLUMBIA HEIGHTS FORMALIZING APPROVAL OF USE OF PARKVIEW VILLA SENIOR HOUSING SITE FOR ADDITIONAL SENIOR HOUSING AND APPROVING --~ HOUSING REPLACEMENT PLAN WHEREAS, the Housing and Redevelopment Authority of Columbia Heights (hereinafter referred to as "HRA") has an Annual Contribution Contract (ACC) with the Department of Housing and Urban Development (HUD) on Parkview Villa Highrlse; and WHEREAS, the HUD ACC on Parkview Villa (PVV) requires that we secure HUD's approval if we are to make any major changes to the building or site; and WHEREAS, the HRA plans on constructing 40 to 50 units of senior public housing on the PVV site and has requested HUD's concurrence in regard to such; and WHEREAS, HUD (Washington, DC.) has requested a resolution of the local governing body (City Council) formalizing their action by motion on May 14, approving the use Of the site for the additional 40-50 units of senior housing and including a new provision approving a replacement housing plan; THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights, Anoka County, Minnesota (the m~City~') as follows: 1. The City hereby confirms it's action of Play lqth granting approval for the HRA to acquire (utilize) a portion of the Parkview Villa Highrlse (Project MN 105001) site and to construct 40 to 50 units of senior public housing on the site adjacent to the existing buildlng. The approval is subject to City Council concurrence on the final plans for the project. 2. The City Replacement Housing Plan for the project is not a relevant issue as the City/HRA will not be removing any existing housing but will be adding 40-$0 units of new housing for low income seniors. Regular Councll Meeting July 23, 1990 page 17 Offered by: Seconded by: Roll call: Peterson Ruettimann A!! ayes Mayor Edward Pi. Carlson Jo-Anne Student, Council Secretary The Piayor declared the resolution approved as of the 23rd day of July, 1990. e. First Reading of Ordinance No. 1203 - Sale of Rea1 Estate near qqql Washington The narrow strip of property is located near hq41 - qqq3 Washington Street. The resident at aqq3 Washington Street is expressed an interest in purchasing this property and the City Attorney had been directed to contact this person to advise that she would be responsible for any costs associated with transfer of title to this property. This person had not been contacted by the City Attorney at this point in time, The City Attorney advised that.the ordinance may have its first reading as hls office must request the removal of the designation of use for a public purpose from the title before it can be transferred. Piotion by Nawrocki, second by Clerkin to waive the reading of the ordinance there being ample copies available to the public. Roll call: AI1 ayes ORDINANCE NO. 1203 BEING AN ORDINANCE APiENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO THE SALE OF REAL ESTATE NEAR qqql-qq43 WASHINGTON STREET The City of Columbia Heights does ordain: Section 1: The City shall sell the property at or near qqql-qqq3 Washington Street N.E., legally described as: South lq' front and rear (except So. 7') of Lot Twenty-six (26), Block Fifteen (15), Columbia Heights Annex to Minneapolis, Anoka County, Mn. to Gertrude Tabaka Section 2: The Mayor and City Pianager are hereby authorized to execute the documents necessary to complete the said conveyance. Section 3: This ordinance shall be in full force and effect from and after thirty (30) days after the date of passage. First reading: July 23, 1990 Moti:on by Nawrocki, second by Ruettimann to schedule the second reading of Ordinance No. 1203 for August 13, 1990. Roli call: All ayes Regular Council Meeting July 23, 1990 page 18 7. COMMUNICATIONS a. Traffic Commission The minutes of the July 9th Traffic Commission meeting were received. Councilmember Nawrocki observed that the bus layover usually on 4qth Avenue and Central has been moved to Central Avenue south of 39th Avenue due to the construction being proposed for 4qth Avenue. He had understood this layover location was to be temporary but noted that a representative of the MTC had been advised it would be permanent and that no layover on 44th Avenue at Central ~as Included in the plans for after completion of the construction. It was noted that the proposed bus layovers in the area would be operating through resldental neighborhoods. The Public Works Director observed that If the layover were to be placed back on 4qth Avenue it would be obstructing some of the new traffic patterns planned on 44th Avenue. Councilmember Nawrocki noted that patrons of the bus would, have to slt through the layover on Van Buren, qOth to 41st, until the layover was completed before the bus took them north of qlst AvenueL A layover on Van Buren had been recommended by the Traffic Commission. Counclimember Nawrocki requested that the layover on Central Avenue, south of Gould Avenue, be left there until the Traffic Commlsslon can address this matter at their August 6th.meeting. He noted that Dick Loeffler, a MTC representative, will attend this Traffic Commission meeting. 8. OLD BUSINESS a. Reconveyance of Non-Bulldable, Unusable, Tax Forfeit Parcels to the State The City Hanager reviewed some of the parcels included on the llst of tax- forfeit City-o~ned property. Councllmember Nawrocki explained the origlnal intent for keeping these sliver of property. Motion by Paterson, second by Clerkin to authorize the City Attorney to reconvey non-bulldable, unusable, tax-forfeit parcels numbered 1, 6, 12, 13, 14, 16, 17, 20, 24, and 25 back to the State of Minnesota since such parcels are no longer considered necessary for public purpose; and, to pursue a Torrens process on any remaining bulldable tax-forfeit parcels held by the City for public purpose. Hotion withdrawn Hotlon by Nawrocki, second by Clerkin to table until the next Council meeting. Roll call: Ail ayes b. Final Payment for. Municipal Project #9000 Motion by Ruettimann, second by Paterson to accept the work for Municipal Project.#9000 and to make flnal payment of $50,006.96 to Standard Sidewalk of Lindstrom, Minnesota. Roll call: All ayes Councllmember Nawrockl Inquired if any addltional work Is being considered for e lot on Royce Street. The Public Works 0irector advised the City wlll be doing this work. Regular Council Meeting July 23,1~90 page 19 c. Final Payment for Municipal Project #8909 Municipal Project #8909, underground fuel tanks and electronic fuel monitoring and dispensing equipment is completed. The Public Works Oirector advised that due to a power surge some of this equipment did not work and protection against this occurring again must be installed. Motion by Paterson, second by Clerkin to accept the work for Munlclpal Project #8909 and to make final payment of $4,119.69 to Pump and Meter Service, Inc. of Hopkins, Minnesota. Roll call: All ayes d. Bids for Work on Municipal Project #9005 Some of the work on this project will be done by volunteers from the Circle Terrace neighborhood. Councilmember Clerkin inquired about the liability of the City on behalf of these volunteers. The City Manager stated they could have the volunteers sign a waiver of responsibillty by the City. Notion by Clerkin, second by Peterson to award the LaBel]e playground equipment work to Viking Fence and Construction Company of Golden Valley, based upon their low formal bids received, for an amount of $14,150; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: All eyes Motion by Peterson, second by Carlson to authorize the award of the LaBelle Park playground paving work to Bituminous Consulting of Minneapolis, based upon low formal bids received, for an amount of $2,270.55; and furthermore, to authorize the Mayor and City Manager to enter into an agreement for the same. Roll call: All eyes e. Improvements at Huset Park Bail Fields Councilmember Nawrocki felt it is a poor budgetary practice to spend funds some place other than where it was originally intended. He was of the opinion that items previously removed from prior budgets should be prioritized and the process for recommendations for expenditures be reviewed. Notion by Peterson, second by Ruettimann to utilize the $20,000 included in the 1990 budget under line item 412-45202-5130 for Huset Park ball field improvements to replace the press box at Field No. 3, make improvements on the press box at Field No. 5, and replace the transformers containing PCB's on the light standards at Field No. 3. Roll call: Clerkin, Ruettimann, Peterson, Carlson - aye Nawrocki - nay f. Authorization to Purchase Recycling Containers The City t4anager requested this item be removed from the agenda. Councilmember Nawrockl observed that the request had included authorization to use funds in the 1990 budget. He knows of some cities who have requested and received funds for these types of purchases from other sources. The Recycling Coordinator was directed to investigate other sources for funding. g. Approval of Request for Proposal for Rubbish, Recycling and Yard Waste Mauling and Oisposal Contract The City Attorney read the newly-passed statute which addressed changes in rubbish disposal. He noted that there was no compliance date in the statute. Councilmember Nawrocki felt that negotiating for an extension to the Cityts present contract is usually not as beneficial for the City as going out for bids. Ragu]ar Council Meeting July 23, 1990 page 20 Motion by Nawrockl, second by Peterson to authorize staff to commence negotiations with Waste Management - Blaine to provide for an one-year extension to our existing rubbish, recycling, and yard waste hauling contract based on specifications similar to our present contract; the City Manager is authorized to advertlse for Requests for Proposals foranew hauling contract based on our current contract by duly 30th; that such specificatlons be brought back to the City Councll at a work session; and that the City Manager report to the City Council at the Council meeting on August 13th. Roll call: All ayes h. Establish Dates for Work Sessions Motion by Nawrockl, second by Clerkin to establlsh the following dates for Council work sessions: July 30th at 7:00 p.m., duly 31st at 7:00 p.m. and August 7th at 7:00 p.m. to be held in the Council Chambers. Roll call: AI1 ayes I. Other New Business The City Manager advised that the vacancy in the Building Inspector position has been filled. The posltlon has been accepted by Evelyn Nygaard and she will commence her employment on duly 30, 1990 The City Manager stated that the City of Fridley will cover the Inspections Oepart- ment on an on-cai1 basis until Ms. Nygaard commences her employment. Motion by Paterson, second by Ruettlmann to Indemnify the City of Frldley for any action by the Building Inspector for Fridley on behalf of the City of Columbia Heights. RD]! call: All ayes 10. REPORTS a. Report of the City Manager The City Manager's report was submitted in written form and the following Items were discussed: i. Operational Reports from Division Heads: It was observed that the report from the Police Chief addressed a squad car being lnoperational for a long period of time and members of the Council requested an explanation. The Public Works Oirector gave the history of diagnosing the problem and also mentioned that a number of Public Works Staff had been out of work due to injuries. The squad car will be back in service in the very near future. 2. Rezoning of Property: The Six Cities Water Management Organization is required to revlew any re. zonings wlthln the City which may affect this organization~s watershed. The City Manager advised that the proposed re. zoning on 38th Avenue In the multi-use redevelopment area must be submitted to this organiz~tlon for Its review and comment. Councilmember Nawrockl inquired what follow up had been done on the complaints received regarding.the property at 1222 - 1224 q5½ Avenue. The City Manager ad- vised that a partlal report has been received from the Assistant Building Inspector and she wlll be inspecting the property in the near future and a full report will be forthcoming to the Council. Councilmember Nawrockl had requested a copy of the document which transferred the parking ramp from HRA to the City. The City Attorney had 'not complied wlth this request but it will be done. Regular Council Meeting July 23, 1990 page 21 Council rnember Nawrocki again requested a copy of the State Statute which pro- hibits limiting change orders to 25~ of the project. He also inquired what staff had done regarding a complaint from the property owner at ~508 Polk Street and a problem concerning sewer back up. The City Manager indicated he will respond to all of Councilmember Nawrocki~s requests in writing. Mayor Carlson inquired what is being considered for filllng the pot holes on Second Street, 37th to qOth Avenues. He was advised that pothole filling will be done when the sealcoatlng project is done. The Mayor also inquired when the basketball court behind Murzyn Hall will be installed. The Public Works 0irector responded it is included in the 1991 budget. The City Manager stated that the position of Assistant Building Inspector has been offered to Chris Land. The City Manager advised he will be out of town from July 25th to the evening of July 27th. Stuart Anderson will be the Acting City Manager. b. Report of the City Attorney The City Attorney had been notified that someone in the City wanted to place a very large political sign in his yard but had been told this size sign would be in violation of the sign ordinance. The resident stated his intention to paint this sign on his garage or on his house. ADJOURNMENT Motion by Peterson, second by Ruettimann to adjourn the meeting at 12:10 a.m.. Roll call: All ayes Jo-Anne Student, Council Secretary Mayor Edward M, Carlson