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HomeMy WebLinkAboutMarch 8, 1999OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL REGULAR COUNCIL MEETING MARCH 8, 1999 1. CALL TO ORDER/ROLL CALL Mayor Peterson called the Council Meeting to order at 7:00 p.m Present were Mayor Peterson and Councilmembers Szurek, Jolly and Wyckoff. 2, PLEDGE OF ALLEGIANCE 3. ADDITIONS/DELETIONS TO MEETING AGENDA The Public Works Director requested the removal of 4-A-16 "Resolution No. 99-20 Being a Resolution Ordering Improvements for the 1999 Storm Water Improvements" He advised there had been considerable interest expressed in this matter and felt it should be considered later in the meeting to accommodate any late-arriving residents. 4. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as next order of business.) A. Motion by Wyckoff, second by Jolly to approve the consent agenda as follows: 1) Minutes of Approval The Council approved the minutes of the February 22, 1999 Regular Council Meeting as presented. 2) Acknowledgment of Applications for City Council Vacancy The Council acknowledged the applications for the Council vacancy received from the following residents: Thomas W. Ramsdell, Kenneth P. Stumpf, Laura S. Lindahl, Roger A. Peterson, Robert C. Buboltz, James P. Johnson, John A. Hunter, Scott D. Neimeyer, Dolores P. Strand. Eric Kjos, Damon M. Powers, Gary Larson, Doug Hill, Ted Landwehr, Kathy Hofstedt, Robert Barnick, Barbara Gertsema and Rick Johnson 3) Approval of Costs Associated with Attendance at Explorer Conference The Council authorized the attendance of two Explorer advisors and six police Explorers at the 1999 State Law Enforcement Explorer Conference April 22-25, 1999, at Breezy Point, Minnesota, with costs to be covered out of the 1999 Police Department budget. REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 2 4) Resolution No. 99-18 Being a Resolution Authorizing Acceptance of State Grant and Appropriation of Matching Funds The reading of the resolution was waived there being ample copies available for the public. RESOLUTION NO. 99-18 WHEREAS, the Columbia Heights Police Department has been granted $10,305 in a grant from the State of Minnesota Department of Economic Security for a grant entitled "Minnesota Juvenile Accountability Incentive Block Grant," in order to pay the costs of Project Safety Net and for supervision of graffiti cleanup, and, WHEREAS, a condition of the gram is that the City provides $1,145 in a local match for this grant, and, WHEREAS, the Columbia Heights Police Department has been successful in obtaining this grant for the period of January 1, 1999, to December 31, 1999, NOW, THEREFORE, BE IT RESOLVED that the City of Columbia Heights enter into a cooperative agreement with the Minnesota Department of Economic Security for the project entitled "Minnesota Juvenile Accountability Incentive Block Grant for the period from January 1, 1999, to December 31, 1999, that the City Manager and Mayor are hereby authorized to execute such agreements and amendments as are necessary to implement the project on behalf of the City of Columbia Heights. Passed this 8th day of March, 1999. Offered by: Wyckoff Seconded by: Jolly Roll call: All ayes Mayor Gary L. Peterson Jo-Anne Student, Council Secretary 5) Amend Authorization for Community Development Copier The Council approved the purchase of a Panasonic Model 7750S2 copier from Technifax Business Systems, Inc. based upon their qualified, responsible bid in the amount of $6.078.00 plus tax with funds to be appropriated from the Capital Equipment Replacement Fund and also authorized the City Manager to enter into an agreement for the same. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 3 6) Selection of Consultant for Master Plan The Council awarded the contract for the Master Redevelopment Plan for downtown Columbia Heights to SRF Consulting Group, Inc. based on their qualified, responsible bid in the amount of $43,942 dated February 16, 1999, plus an additional $2,000 in contingency funds to be appropriated from 201-42400-3050 and also authorized the Mayor and City Manager to enter into agreement for the same. 7) City of Hilltop Agreement for Inspection Services The Council approved an Agreement for Plan Review and Inspection Services with the City of Hilltop and also authorized the Mayor and City Manager to enter into an agreement for the same. 8) Municipal Space Needs Study The Council authorized staff to seek RFP's for a space needs study for all City municipal buildings. 9) Establish Hearing Dates - License Revocations, Rental Properties The Council established a hearing date of March 22, 1999 for revocation or suspension of a license to operate a rental property within the City of Columbia Heights against Steven Efterfield at 3807 Tyler Street. The Council established a hearing date of March 22, 1999 for revocation or suspension of a license to operate a rental property within the City of Columbia Heights against Katherine Crosby at 1162-1164 Cheery Lane. 10) Transfer of Funds from General Fund to Police Department Overtime Fund The Council authorized the transfer of $5,016, the total amount received from Norwest Bank for off duty security work, from the General Fund to the Police Department's 1999 budget under line # 1020, police overtime. 11) Transfer of Funds from General Fund to Police Department, PDI Bill The Council authorized the transfer of $1,005, the total amount of fees collected from police officer applicants, from the General Fund to the Police Department's 1999 budget under line #3050 to assist in covering the cost of the written test for entry level police officer. 12) First Reading of Ordinance No. 1386 Being a Request to Vacate Easements The reading of the ordinance was waived there being ample copies available for the public. REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 4 ORDINANCE NO. 1386 BEING AN ORDINANCE AMENDING ORDINANCE NO.853 CITY CODE OF 1977,VACATING CERTAIN WATER PIPES, MAIN OR HYDRANTS, UTILITY, SEWER AND STORM DRAIN EASEMENTS The City of Columbia Heights does ordain: Section 1: The City of Columbia Heights herewith vacates the water main easement as described in Easement No. 1 and the sanitary sewer and storm drain easement as described in Easement No. 2 as granted in the document recorded in the Office of the Anoka County Recorder as the Document No. 370691 described to wit: Easement No. 1. An easement for the purpose of constructing and maintaining a water main and it's appurtenances over and under a strip of land Ten (10) Feet wide. The Southerly line of which is described as follows: Beginning at a point on the Westerly line of Lot 8, Central Ave. Sub., distant Fifty-Seven (57) Feet Southerly of the Northerly line of said Lot 8; Thence Easterly and parallel with the said Northerly line to a point on a line parallel with, and Twenty (20) Feet Southerly of the Northerly line of Lot 12, Spain's Addition, Easement No. 2. An easement for the purpose of constructing and maintaining a sanitary sewer, a storm drain, and their appurtenances over and under a strip of land Ten (10) Feet wide, the Easterly line of which is described as follows: Beginning at the most Southerly corner ofOutlot C Central Ave. Sub.: Thence Northeasterly along the Westerly right-of-way line of Reservoir Boulevard to a point Twenty (20) Feet Southwesterly of the Northeasterly corner of Lot 12, Spain's Addition, Section 2: The City of Columbia Heights herewith vacates all easement rights reserved to it in Ordinance No. 1373, which was recorded with the Anoka County Recorder on September 29, 1998 as Doc. No. 1374362, to wit: electric or telephone poles and lines, gas and sewer lines, or water pipes, mains and hydrants, thereon or thereunder, to continue maintaining the same or to enter upon such way or portion thereof vacated to maintain, repair, replace, remove or otherwise attend thereto. Section 3: This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: March 8, 1999 REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 5 The Council established March 22, 1999 at approximately 7:00 as the second reading of Ordinance No. 1386, an ordinance amending Ordinance No. 853, City Code of 1977, vacating a portion of water pipes, main or hydrants, utility, sewer and storm drain easements as recorded in Document No. 370691 and Ordinance No. 1373. 13) Approval of License Applications The Council approved the license applications as listed. 14) Payment of Bills The Council approved the payment of bills as listed out of proper funds. 15) Resolution No. 99-19 Being a Resolution Receiving the 1999 Alley Improvements Feasibility Report and Calling for Public Improvement Hearing The reading of the resolution was waived there being ample copies available for the public. RESOLUTION NO. 99-19 BEING A RESOLUTION RECEIVING THE REPORT ON THE 1999 ALLEY IMPROVEMENTS WITH CONCRETE AND BITUMINOUS ALLEY CONSTRUCTION AND BITUMINOUS ALLEY RECONSTRUCTION WHEREAS, pursuant to Resolutions 99-12, 99-13, and 99-14, adopted by the City Council February 8, 1999, a report has been prepared by Mr. Kevin Hansen, City Engineer with reference to the following improvements: California and Main Summit and 40th University and 4th 40th and 41st Madison and Monroe 39th and 40th Jackson and Van Buren Peters and Reservoir Gould and 40th Circle Terrace and Reservoir West of Reservoir Reservoir and Tyler Reservoir and Tyler Reservoir and Tyler 4th and 5th Peters Place to Gould Avenue REGULAR COUNCIL MEETING 283' North of 39th to 521' North of 39th Lookout to 5th 47th to 48th N/S Alley to Jefferson 48th to 49th Jackson to N/S Alley 44th to 45th Peters to Gould N/S Alley to 86' East of N/S Alley 654' South of 41st to 41st 173' South of 42nd to 42nd 40th to 41st 224' South of 43rd to 43rd N/S Alley to West of N/S Alley 300' North of 52nd to 53rd Peters Place to North-South Alley MARCH 8, 1999 PAGE 6 and this report was received by the Council on March 8, 1999, and, WHEREAS, the report provides information regarding whether the proposed project is necessary, cost-effective and feasible, NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA, that the Council will consider the improvement of such alleys in accordance with the report and the assessment of abutting property (parcel unit basis) on the closest intersecting street for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $525,000. AND BE IT FURTHER RESOLVED that a Public Hearing shall be held on such proposed improvements on the 29th day of March, 1999 in the Council Chambers located at 590 40th Avenue N.E., at 7:00 p.m., and the City Manager shall give mailed and published notice of such hearing and improvement as required by law. Dated this 8th day of March, 1999. Offered by: Wyckoff Seconded by: Jolly Roll call: All ayes Mayor Gary L. Peterson Jo-Anne Student, Council Secretary CERTIFICATION State of Minnesota County of Anoka City of Columbia Heights I hereby certify that the foregoing resolution is a true and correct copy of a resolution presented to and adopted by the City Council of Columbia Heights at a meeting thereof held in the City of Columbia Heights, Minnesota, on the 8th day of March, 1999, as disclosed by the records of said city in my possession. Jo-Anne Student, Deputy City Clerk REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 7 16) Resolution No. 99-20 Being a Resolution Ordering Improvements for the 1999 Storm Water Improvements This item was removed from the Consent Agenda at the request of the Public Works Director. 17) Request for Day Care Parking Restriction at 3741 Reservoir Boulevard The Council approved the designation for parking restrictions in front of 3741 Reservoir Boulevard as day care parking restriction 6 a.m. to 8 a.m. and 3 p.m. to 5 p.m., Monday through Friday, until July 1, 1999 at which time the signs will be removed, based on the recommendation of the Traffic Commission. Roll call on Consent Agenda: All ayes Resolution No. 99-20 Being a Resolution Ordering Improvements for the 1999 Storm Water Improvements The Public Works Director requested this item be moved to the end of "New Business" to accommodate anyone who may wish to speak to it. 5. PROCLAMATIONS, PRESENTATIONS, RECOGNITIONS AND GUESTS A. Recognition of Police Officers Columbia Heights Police Officers Kurt Klosterman and Paul Bonesteel were recognized by the Anoka County Chapter of MADD for their DWI Enforcement efforts. B. Citizen Recognition Mayor Peterson presented a plaque to Ms. Janet Davis who assisted in the arrest of an armed robbery suspect at Apache Tan. Ms. Lois Nygaard also assisted in the arrest. She was unable to attend the Council Meeting. Her plaque will be delivered to her. C. Introduction of Newly-Hired Employee Joel Ostmoe, who was recently hired in the Fire Department in the position of Clerk-Typist II, was introduced. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 8 6. PUBLIC HEARINGS A. Close Public Hearing - Rental License Revocation, 4222 Monroe Street, Robert Witt The Public Hearing was closed regarding the revocation or suspension of the rental license held by Robert Witt for rental property at 4222 Monroe Street in that the property is in compliance with the Housing Maintenance Code. B. Second Reading of Ordinance No. 1383 Being an Ordinance Providing for the Issuance and Sale of Bonds The ordinance was reviewed by staff and what will change regarding wall signage was addressed. It was noted that the Planning and Zoning Commission had reviewed this ordinance and recommended its approval. Based on this, Councilmember Wyckoffstated she could support the ordinance. Motion by Jolly, second by Szurek to waive the reading of the ordinance there being ample copies available for the public. Roll call: All ayes ORDINANCE NO. 1383 BEING AN ORDINANCE AMENDING ORDINANCE NO. 853, CITY CODE OF 1977, PERTAINING TO ZONING AMENDMENTS The City of Columbia Heights does ordain: Section 1: Section 9,117A(10)(b)(i) of Ordinance No. 853, City Code of 1977, which currently reads as follows, to wit: 9.117A(10)(b)(i) Any number of wall signs on any side of a building not to exceed one hundred (100) square feet of total surface area for wall sign surfaces and limited to one surface per sign. Provided, however, that if a parcel of land on which a building is located directly abuts residentially zoned land, no wall sign may be located on the side of the building that faces the abutting residential parcel. Shall be repealed and hereafter be amended to read as follows: REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 9 9.117A(10)(b)(i) Any number of wall signs on any side of a building not to exceed one hundred (100) two hundred (200) square feet of total surface area for all wall sign surfaces and limited to one surface per sign. Provided, however, that if a parcel on which a building is located directly abuts residentially zoned land, no wall sign may be located on the side of the building that faces the abutting residential parcel. Section 2: This ordinance shall be in full force and effect from and after thirty (30) days after its passage. Offered by: Jolly Seconded by: Szurek Roll call: All ayes First Reading: Second Reading: Date of Passage: February 22, 1999 March 8, 1999 March 8, 1999 Mayor Gary L. Peterson Jo-Anne Student, Council Secretary 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1) Second Reading of Ordinance No. 1384 Being an Ordinance Providing for the Issuance and Sale of Bonds Motion by Szurek, second by Jolly to waive the reading of the ordinance there being ample copies available for the public. Roll call: All ayes ORDINANCE NO. 1384 PROVIDING FOR THE ISSUANCE AND SALE OF $860,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 10 The City of Columbia Heights does ordain: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements)have been duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act); Total Project Designation & Description: Project Costs: 1998 Zone 3 Improvements 1999 Alley Improvements 2000 Zone 4 Improvements Less Other Funding Sources Net Project Costs Costs of Issuance Discount Rounding TOTAL Project Cost 749,000 532,500 500,000 (940,731) 840,769 15,120 6,880 (2,769) $860,000 (b) It is necessary and expedient to the sound financial management of the affairs of the City to issue $860,000 General Obligation Improvement Bonds, Series 1999A (Bonds) pursuant to the Act to provide financing for the Improvements. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $853,120. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $6,880. The excess of the purchase price of the Bonds over the sum of $853,120 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $860,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A (BOOK ENTRY ONLY) REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 11 Proposals for the Bonds will be received on Monday, April 12, 1999, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2000. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2001 $ 50,000 2005 $95,000 2009 $85,000 2002 $105,000 2006 $90,000 2010 $65,000 2003 $100,000 2007 $90,000 2004 $95,000 2008 $85,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 12 Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due on or after February 1, 2008. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance street and alley improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $853,120 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $8,600, payable to the order of the City. Ifa check is used, it must accompany each proposal. Ifa Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 13 The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 14, 1999 SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Faegre & Benson LLP, of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon its receiving the Continuing Disclosure Certificate at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 1 00, Saint Paul, Minnesota 551 01, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 15 Dated February 22, 1999 BY ORDER OF THE CITY COUNCIL /s/William Elrite Finance Director/City Clerk 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 p.m. on Monday, April 12, 1999, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. First Reading: Second Reading: Date of Passage: Offered by: Seconded by: Roll call: February 22, 1999 March 8, 1999 March 8, 1999 Szurek Jolly All ayes Mayor Gary L. Peterson Jo-Anne Student, Council Secretary STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of Columbia Heights, Minnesota, hereby certify that I have carefully compared the attached and foregoing Ordinance No. 1384, with the original on file in my office and the foregoing is a full, true and correct copy of Ordinance No. 1384. WITNESS my hand as Deputy City Clerk and the corporate seal of the City this 8th day of March, 1999. Jo-Anne Student Deputy City Clerk 2) Second Reading of Ordinance No. 1385 Being an Ordinance Providing for the Issuance and Sale of Bonds Motion by Wyckoff, second by Szurek to waive the reading of the ordinance there being ample copies available for the public. Roll call: All ayes REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 16 ORDINANCE NO. 1385 PROVIDING FOR THE ISSUANCE AND SALE OF $1,93 5,000 GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 1999B The City of Columbia Heights does ordain: 1. It is determined that: (a) the City engineer has recommended the construction of various improvements to the City's sanitary sewer and water utility, and has further recommended the creation of a storm sewer utility and the construction of various improvements thereto (Project). (b) the City is authorized by Minnesota Statutes, Section 444.075 (Act) to finance all or a portion of the cost of the Project (Project Costs) by the issuance of general obligation bonds of the City payable from the net revenues of the system. The Project Costs are presently estimated by the engineer to be as follows: Project Designation & Description: Total Project Cost Project Costs Storm Sewer Projects Utility Projects Water Meters Total Project Costs Less DNR Grants Net Project Costs Costs of Issuance Discount Rounding $1,027,983 721,820 600,000 $2,349,803 (447,750) $1,902,053 19,120 15,500 (1,673) TOTAL $1,935, 000 (c)it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,935,000 General Obligation Utility Revenue Bonds, Series 1999B (Bonds) pursuant to the Act to provide financing for the Project. REGULAR COUNCILMEETING MARCH 8,1999 page 17 2. In order to provide financing for the Project, the City will therefore issue and sell Bonds in the amount of $1,919,500. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $15,500. The excess of the purchase price of the Bonds over the sum of $15,500 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,935,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 1999B (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, April 12, 1999, until 1 0:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax (651) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 18 DETAILS OF THE BONDS The Bonds will be dated May 1, 1999, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2000. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: 2001 $110,000 2005 $195,000 20095225,000 2002 $175,000 2006 $200,000 20105235,000 2003 $180,000 2007 $210,000 2004 $185,000 2008 $220,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar, OPTIONAL REDEMPTION The City may elect on February 1, 2007, and on any day thereafter, to prepay Bonds due on or after February 1, 2008. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 19 SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues to be derived from the City's storm sewer, water and sanitary sewer charges. The proceeds will be used to acquire property and finance improvements to the City's storm sewer, water and sanitary sewer systems. TYPE OF PROPOSALS Proposals shall be for not less than $1,919,500 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $19,350, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashiers check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 20 BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Faegre & Benson LLP, of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds and a Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon its receiving the Continuing Disclosure Certificate at or prior to delivery of the Bonds. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 21 OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 75 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated February 22, 1999 Offered by: Wyckoff Seconded by: Szurek Roll call: All ayes Mayor Gary L. Peterson Jo-Anne Student, Council Secretary STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS I, the undersigned, being the duly qualified and acting Deputy City Clerk of the City of Columbia Heights, Minnesota, hereby certify that I have carefully compared the attached and foregoing Ordinance No. 1385, with the original on file in my office and the foregoing is a full, true and correct copy of Ordinance No. 1385. REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 22 WITNESS my hand as Deputy City Clerk and the corporate seal of the City this 8th day of March, 1999. Jo-Anne Student, Deputy City Clerk B. Bid Considerations None C. Other Business Motion by Jolly, second by Szurek to authorize the Assistant Fire Chief to attend the 1999 Fire Department Instructors Conference in Indianapolis, Indiana from March 17- 21, 1999. Roll call: All ayes 2) First Time Home Buyer Program The Community Development Director reviewed the history of this program relative to the Columbia Heights' experience. In 1998, the City was approved for funding in the amount of $485,303. In 1999, the approved amount was $529,279. He stated that very little staff time is required for this program. In previous years, all of the yearly allocations have been totally used. Motion by Wyckoff, second by Jolly to approve the Minnesota Housing Finance Agency Minnesota Cities Participation Program (MCPP) Program Application - Committment Agreement and to approve the payment of the allocation fee and processing fee in the total amount of $5,392.79 out of proper funds; and furthermore, to authorize the City Manager to enter into an agreement for the same. Roll call: All ayes Resolution No 99-20 Being a Resolution Ordering Improvements for the 1999 Storm Water Improvements Program Representatives of BRA made a presentation regarding two elements of the program; those being storm water improvements for the Prestemon Park area and Tyler Street and 44th Avenue. It is hoped that the bids can be awarded early in May and construction can start in June. Discussion followed regarding specific concerns with the proposals. It was noted that there had been notices sent to affected property owners relative to Prestemon Park. REGULAR COUNCIL MEET1NG MARCH 8, 1999 PAGE 23 Motion by Szurek, second Jolly to waive the reading of the resolution there being ample copies available to the public. RESOLUTION NO. 99-20 BEING A RESOLUTION ORDERING IMPROVEMENT FOR THE 1999 STORM WATER IMPROVEMENTS WHEREAS, the City of Columbia Heights hired BRA & Associates, Inc. to perform the feasibility study for Project Nos. 1997-21, 1998-06, 1998-10 and 1998-13. WHEREAS, that the feasibility report was prepared and accepted by the City Council on July 13, 1998. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA, that: 1. Said improvements identified in BRA & Associates, Inc. feasibility study(s) and listed herein for the 1999 Storm Water Improvements, are hereby ordered. Prestemon Park Ponding and Storm Sewer Improvements Tyler Place and 44th Avenue Storm Sewer Improvements Jackson Pond Spillway Construction Monroe Street and 49 lA Avenue Catch Basin Improvements 4201 2nd St. Localized Improvements, Material Acquisition 4232 3rd St. Localized Improvements, Material Acquisition 2. BRA & Associates, Inc. and the City Engineer are hereby designated the engineer for these improvements and they shall prepare the plans and specifications for the making of such improvements. 3. The contract for these improvements shall be let no later than two (2) years after the adoption of this resolution. Dated this 8th day of March, 1999. Offered by: Szurek Seconded by: Wyckoff Roll call: All ayes Mayor Gary L. Peterson Jo-Anne Student, Council Secretary REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 24 CERTIFICATION State of Minnesota County of Anoka City of Columbia Heights I hereby certify that the foregoing resolution is a true and correct copy of a resolution presented to and adopted by the City Council of Columbia Heights at a meeting thereof held in the City of Columbia Heights, Minnesota, on the 8th day of March, 1999, as disclosed by the records of said City in my possession. Jo-Anne Student, Deputy City Clerk 8. ADMINISTRATIVE REPORTS A. Report of the City Manager The City Manager had nothing to report at this time. B. Report of the City Attorney The City Attorney had nothing to report at this time. 9. GENERAL COUNCIL COMMUNICATIONS A. Minutes of Boards and Commissions Included in the agenda packet were minutes from the following meetings: February 24, 1999 Park and Recreation Commission; March 1, 1999 Traffic Commission: March 2, 1999 Planning and Zoning Commission. 10. CITIZENS FORUM TO ADDRESS THE COUNCIL ON MATTERS NOT ON AGENDA Councilmember Jolly observed that a condemned structure on 46th Avenue is not yet completely demolished. He felt it presented a hazard to the neighborhood. The Director of the EDA advised that the property is posted but court action is being awaited to complete the removal. He will draft a written report on the status of this property for the Council. REGULAR COUNCIL MEETING MARCH 8, 1999 PAGE 25 1 1. ADJOURNMENT Motion by Jolly, second by Wyckoffto adjourn the Regular Council Meeting at 8:10 p.m. Roll call: All ayes Submitted by: Jo-Anne Student, Council Secretary