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Home My WebLink AboutJuly 21, 1997 Work SessionNOTICE ADMINISTRATION OF COUNCIL WORK SESSION Mayor Joseph Sturdevant Councilmernbers Donald G..loll), Meg Jones Gat)' £. Paterson Robcrt tK Ruettimann City Manager ~'alt Fehst Notice is hereby given that a Council Work Session is to be held in the CITY OF COLUMBIA HEIGHTS as follows: Meeting of' CITY COUNCIL, CITY MANAGER AND CITY STAFF Date of Meeting: MONDAY, JULY 21, 1997 Time of Meeting: 7:00 P.M. Location of Meeting: CITY HALL CONFERENCE ROOM Purpose of Meeting: COUNCIL WOR[q SESSION AGENDA Assistant Fire Chief Salary Range Ordinance No. 1348 Regarding Exterior Parking MHFA Financing of Driveway Improvements "Slow - No Wake" Ordinance for Sih,er Lake Authorization to Purchase Replacement Dump Truck Off State Contract Rezoning of 40th Avenue Medtronic Expansion Proje6t Agreement for Loan Police Reserve Recognition Dinner Executive Session Regarding "Pending Litigation" to follow Council work session. Enclosed- Work Session Topic Update- Informational ~is The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment itt, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 782-2800, Extension 209, To make arrangements. (TDD/782-2806 for deaf only) CITY COUNCIL LETTER Meeting of: July 28, 1997 AGENDA SECTION: OTHER BUSINESS ORIGINATING DEPARTMENT: CITY MANAGER'S NO: ADMINISTRATION APPROVAL ITEM: ESTABLISH NEW SALARY RANGE FOR ASST. BY: L. L. MAGE~.~Y: ITEM NO.: At the request of the City Manager, the Police and Fire Civil Service Commission recently met to discuss and begin the process of filling the position of Assistant Fire Chief. As you are aware, the position of Assistant Fire Chief has been vacant since mid-March, 1997, due to the passing away of Lowell (Pat) DeMars. Currently, a two-tier salary range for Assistant Fire Chief exists, which was adopted when the City's Comparable Worth Implementation Plan was ratified in July, 1988. The ranges have been adjusted annually, consistent with the adjustments for non-union employees. The salary ranges for Assistant Fire Chief for 1997 and 1998 are: ENTRY 6 MONTHS I YEAR 2 YEARS 3 YEARS 1997' $4,026 $4,163 $4,301 $4,438 $4,575 1997'* $3,579 $3,701 $3,823 $3,945 $4,067 1998' $4,167 $4,309 $4,451 $4,593 $4,735 1998'* $3,704 $3,830 $3,956 $4,083 $4,209 * Employees hired in position prior to July 25, 1988 ** Employees hired in positions after July 25, 1988 Since the two-tier salary range was adopted, many changes have been made to the state statute governing comparable worth (pay equity). As a result, staff reviewed the salary range for new hires to the position of Assistant Fire Chief. Based on this review, our current compensation plan, internal equity and external comparability, staff recommends establishing the following monthly salary range for 1997 and 1998 for Assistant Fire Chief: ENTRY 6 MONTHS 1 YEAR 2 YEA~qS 3 YEARS 1997 Proposed $3,914 $4,048 $4,181 $4,315 $4,448 1998 Proposed $4,052 $4,190 $4,328 $4,466 $4,604 RECOMMENDED MOTION: Move to establish a new monthly salary range for the position of Assistant Fire Chief as follows: ENTRY 6 MONTHS I YEAR 2 YEARS 3 YEARS !997 Proposed $3,914 $4,048 $4,181 $4,315 $4,448 1998 Proposed $4,052 $4,190 $4,328 $4,466 $4,604 COUNCIL ACTION: JULY 21, 199'7 WORK SESSION WORK SESSION DISCUSSION ITEM - ORDINANCE NO. 1348 Ordinance No. 1348 regarding exterior parking received its second reading and passage at the June 23, 1997 Council Meeting. At that time, it was felt it should be placed on the agenda of a future Council work session. Attached is a copy of the minutes which address passage of the ordinance and the associated discussion. Also, attached is material received from the Inspections Department, a resident letter and a memo from staff regarding funding assistance. .! ''-=1 il 5A.208.1 Columbia Heights Fire Dept Inspection Violations by Violation Code Occupancy id greater than or equal to "90000" and Occupancy Id less than or equal to "99999" and Violation Code equal to "5A.208.1" Parking, Lighting, Commerical Vehicles, Jun[k Cars Article Div Page I 2 36 Date Occupancy 04/23;i 99E 91595 05/06/i 99~ 90526 05/06/1996 90527 05/06/1996 90532 05/06/1996 90020 05/06/1996 95125 05/06/1996 95084 05/07/1996 91406 05/07/1996 90538 05/07/1996 95181 05/07/1996 95142 05/07/1996 95070 05/08/1996 91349~'' 05/08/1996 90567 05/08/1996 90562 05/08/t 996 91344 05/08/1996 95180 05/08/1996 95123 05/08/1996 95106 05/14/1996 95021 05/24/1996 95002 05/24/1996 93251 05/24/1996 -21524 36/03/1996 95472 ::)6/03/1996 9,34563 ::)6/03/1996 2-.O638 ;)6/03/199~ 76/03/199E ~5557 )6/03/199E ~O548 ~6/03/199E 6/03/19~c.5 ~- 362 61031199,5 ~,.=~337 ~/03/199~ ~-,C338 9/03/199~ 9/03/199E 5/03/19_cE ~- 85 ;/03/199E ~--~ ~ 3 enotes V'~ ~orrected 21/1997 - Meier Duplex, Pdvate Single Family ANDERSON, STEVEN R. BLAISDELL, RACHEL L BCE, VINCENT B. KNEALING, CARL L. SYKORA, WILl_AM H & MURIEL C. TIMBEROSS, DONALD F.- VIRGINIA FINCH, RICHARD - CONNIE FINN, BRIAN SOLEM, DAVID E. SWANSON, MARTY & SUSAN TURPIN, LOREN J. - LYNN M. BLONIGAN, DALE - ALE-'XANDRA DAVlDSON, SCOTT R. HOVELAND, LYLE LEE, RICKY A. - MELISSA M. SPERR, MARK L. & TAMMY L. SWEET, WILLIAM TAYLOR, JOHN P. & ANN MARIE Wolfgram, Lee R.- Sharon K. Gulden, Cameron M. & Krista K. JOHNSTON, THOMAS R. - THERESA M. SOHWARZ, KURT OHARBONNEAU, AMANUAL J. DALEY, THOMAS F. DILLE, ROBERT G. - ARDICE L. ENNS, DEAN .~ .... ~ .... GAMBLE, SCOTT D. - LEEANN M. HILL, PEGGY J. JOHNSON, LYNN E. O'BRIEN, KEVIN - COLLEEN PFAFF, PAUL A. - ROSF M. PHILLIPS. LOUISE PITHAN, JAMES P. - KIRSTEN K. RESMAN, STEPHEN J. SORENSON, AUDREY J. VERA, LAWRENCE L. - DEBRA L or Variance Issued 4931 Jackson Street 4417 Van Buren Street 4429 Van Buren Street 4401 Monroe Street ~/4 808 45th Avenue ,' 4455 Monroe Street 4431 Jefferson Street 4432 Madison Street-o~< 4422 MADISON STREET 4400 Madison Street ,.-~ ~----~ 4453 Jefferson Street 4457 Madison Street 4233 4th Street--- 4205 University Avenue ,~ ~,- 4216 5TH STREET=..- 4219 4th Street -- 4221 University Avenue '"¢ ~ ~'¢,~ 4206 5th Street ~-,,~'.~ ~',~ 4244 5th Street~ 4356 5th Street/~,~,.-- 4518 Monroe Street/.,o~- ,¢ 4400 Arthur Street - 4300 Madison Street-- 4333 Washington Street ~'-~"' 4352 5TH STREET ,,,~r- ¢,, .--.~ 4345 7TH STREET o K 4340 WASHINGTON STREET 4352 Washington Street c 4335 6TH STREETo ~- 4335 4th Street ,o¢,,-~ ,;,~: 4316 4th Street ,¢o;..;~- 4324 7th Street o/( 4345 5th Street ~--' 7- ,~,¢- 4312 Washington Street ~ c.4326 7th Street ,,-'~ r ,4, ...~ 4323 Washington Street c ~4332 7th Street ,.-o~- ,~¢.'-z' Page 1 Inspection Violations by V~olation Code 06/03/1996 90173 06/11/1996 90592 06/24/1996 91338 07/05/1996 91471 07/05/1996 91339 07/05/1996 95089 07/05/1996 91564 07/05/1996 95093 07/11/1996 91331 07/11/1996 91569 07/11/1996 91369 07/11/1996 91420 07/11/1996 91329 07/11/1996 95266 07/11/1996 91499 07/11/1996 91396 05/09/1997 93623 Occupancy id greater than or equal to "90000" and Occupancy id less than or equal to "99999" and Violation Code equal to "5A.208.1" WATSON, MERLE - ANGLE Davidson, David R. SANETRA, KRISTY Carlson, David L. - Stephanie A. FORSBERG, MAX A. - RHONDA L. JOHNSON, BARBARA J. Matters, JoAnn THILL, LOUIS J. BJERKEN, THEODA C. DOUGHERTY, KEITH A. - CELESTINE DRUMMOND, MYRON E. HASS, HARVEY J. - SANDRA L. KLITZKE, ALVIN H. - LEONA E. RUDISUHLE, HELEN SCHMIDT, ROBERT/MARIANNE WARNER, LAURENCE-' D. Turnquist, Ty D. - Jennifer C. Total Occurrences of Violation Code: 4309 4th Street ~"~ 4311 Reservoir Boulevard G~4149 4th Street ~ 4740 5th Street 4129 5th Street ~ ~' ,'~ 4144 5th Street ~'=~ P'~"' 4101 5th Street ~' ~- 4116 5TH STREET~,~-r ~0'~'/~ 4141 6TH STREET ~' ~' ~="'~ 4150 JEFFERSON STREE 4153 7TH STREET~'=~' 4120 JEFFERSON STREET~ 4129 6TH STREET ~a'~'~' 4120 6TH STREET 4139 6TH STREET 4116 JEFFERSON STREET~ 1331 45th Avenue 54 Total Count of Violations for Code: I Grand Total Violations: 54 - ~ * Denotes Violations Corrected or Variance Issued 05/21/1997 13:41 Page June 20, 1997 City Council Members 590 40th Avenue N.E. Columbia Heights MN 55421-3578 Dear City Council Members, ! am writing to you in regards to the ordinance passed regarding the mandatory pavement of all parking areas in Columbia Heights. ! am a new home owner in Columbia Heights, but have lived in Heights for over ten years. I truly believe that this ordinance is unfair to many homeowners who prefer gravel rather than pavement on their driveways or other parking areas. ! feel that gravel or rocks on driveways is actually more aesthetically pleasing than cement or pavement, and feel that it is unfair of the city to try to force me to spend money ! do not have on paving my parking area. This money would be much better spent on painting my home, or adding more flowers and shrubs to my yard (or paying my school loans). ! feel that my home, and many others containing gravel parking areas, are very we].l maintained and attractive as they are. ! am assuming that all of your driveways are already paved, and that this unfair ordinance will not affect you; believe me, it will negatively affect a lot of people in Columbia Heights who are just trying to stay ahead of their bills. My mother is one of these people. She works long hours to support my brother and sister, and when she does get extra money, it is immediately sunk into home repairs and beautification. In fact, about a two months ago she spent her bonus check to regravel her driveway - now you are telling her she has to come up with another two thousand dollars to pave over what she just paid $500.00 to someone to do. This is not an efficient way to run a city, and it is not fair or necessary for you to impose this ordinance on people who already have well kept up houses with nice yards. SOME PEOPLE DO NOT LIKE PAVEMENT!!! (including me). Gravel driveways are not toxic or harmful to any one, so please do not impose your aesthetic values on the rest of the city, it really is not proper in a democratic country. Thank you for. your Jill R~GULAR COUNCIL MEETING JUNE 23, 1997 PAGE 12 Section 45. REFERE/qDUM PETITIONS. The requirements laid down in sections 38 and 39 above as to the formation of committees for the initiation of mee~ ~ and as to the form of petitions and signature papers shall apply to the referendum as far as possible, but with such verbal changes as may be necessary. A referendum petition shall begin as follows: REFERE~DUM PETITION Proposing the repeal of an ordinance (ct ~ _l_ticn az ~ case may bc) to .... (stating the purpose of the ~ ~ is hereto attached. This ~eee~e ~ is sponsored by, etc. Section 46. REFERENDUM BALLOTS. The ballots used in any referendum election shall conform to the rules laid down in section 42 of this charter for initiative ballots. Section 2: This ordinance shall be in full force and effect from and after ninety (90) days after its passage. First Reading: Second Reading: Date of Passage: June 9, 1997 June 23, 1997 June 23, 1997 Offered by: Seconded by: Roll call: Jones Ruettimann Ail ayes Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary C. Second Reading of OrdSnance No. ~49 Amending ChaDter 3, ~e~tiOn 97 O~ She ~h~rter o~ the ~it¥ of Columbia Heights PertaSninc to ~ules of procedure and Quorum Motion by Ruettimann, second by Peterson to table the second reading of Ordinance No. 1349 to a future date until it has been reviewed by the Charter Commission. Roll call: Ail ayes D. ~econ~ Reading O~ Qrdinance No. %~45 Being an Ordinance ~mending city Code Regarding Exterior Parkinc Motion by Peterson, second by Sturdevant to waive the reading of the ordinance there being ample copies available for the public. Roll call: Ail ayes REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 13 There was some discussion regarding the intent of this ordinance. It does not address requirements for garages. Its primary purpose is to extend the deadline for hard surfaced parking. It was felt this matter should be included on the agenda of a future Council work session. ORDINANCE NO. 1348 BEING AN AMENDMENT TO ORDINANCE NO. 853, CITY CODE 1977, SECTION 8 IN THE HOUSING MAINTENANCE CODE REGARDING THE REQUIREMENT FOR EXTERIOR PARKING, PEDESTRIAN WALKWAYS AND LIGHTING Section 8 currently reads as follows: The City of Columbia Heights does ordain: Section 8: Exterior Parking, Pedestrian Walkways and Lighting 5A.208(I) No person shall occupy as an owner-occupant or let to another for occupancy and dwelling or dwelling unit for the purposes of living, sleeping, cooking or eating there in which is located on premises which does not comply with the following requirements, to-wit: (a) Required off-street parking as defined in Section 9.116(4) of the City Code. Additionally, any building or structure in existence upon the effective date of this ordinance which does not currently comply with the parking requirements of Section 9.116(4), but does have the necessary space to provide the required parking shall be required to expand the provided parking in accordance with the Code by July 1, 1997. (b) The required parking space must have a minimum width of 9 feet and a minimum length of 20 feet. (c) Ail required parking spaces must be surfaced with asphalt or concrete. (d) Curb guards and/or guardrails must be provided for parking spaces situated above retaining walls. (e) An unobstructed path must be provided between parking areas and the dwelling unit. REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 14 (f) Lighting must be provided for parking areas and walkways between the parking area and the dwelling unit in dwellings consisting of three (3) or more units. Lighting must be available for parking areas and walkways between the parking area and the dwelling unit for dwellings of two (2) or less units. (g) In dwellings of three (3) or more units, parking areas and pedestrian walkways must have a minimum light of 1 foot candle, and the maximum light at the boundary line of the premises may not exceed 3 foot candles. (h) Driveways leading to parking areas and/or access ways to buildings must be maintained and kept in good repair. In cases of tenant parking areas all parking stalls and driveways with access to tenant parking shall be hard surfaced with asphalt or concrete by July 1, 1997. (i) Commercial Vehicles and Junk Cars. Commercial vehicles and junk cars shall be regulated in accordance with Chapter 7, Article II, Section 5 of the Columbia Heights City Code, which is incorporated herein by reference. 5A.208(2) Variances under 5A.207 and 5A.205 shall be enforced and administered in accordance with 9.105. The criteria contained in 9.105(3) (d) shall be applied in deciding whether or not an applicant is entitled to a variance. The proposed changes are date changes only to read July 1, 1998 as follows: The City of Columbia Heights does ordain: Section 8: Exterior Parking, Pedestrian Walkways and Lighting 5A.208(1) No person shall occupy as an owner-occupant or let to another for occupancy and dwelling or dwelling unit for the purposes of living, sleeping, cooking or eating therein which is located on premises which does not comply with the following requirements, to-wit: (a) Required off-street parking as defined in Section 9.116(4) of the City Code. Additionally, any building or structure in existence upon the effective date of this ordinance which does not currently comply with the parking requirements of Section 9.116(4), but does have the necessary space to provide the required parking shall be required to expand the provided parking in accordance with the Code by July 1, 1998. REGULkR COUNCIL MEETING J//NE 23, 1997 PAGE 15 (b) The required parking space must have a minimum width of 9 feet and a minimum length of 20 feet. (c) All required parking spaces must be surfaced with asphalt and concrete. (d) Curb guards and/or guardrails must be provided for parking spaces situated above retaining walls. (e) An unobstructed path must be provided between parking areas and dwelling units. (f) Lighting must be provided for parking areas and walkways between the parking area and the dwelling unit in dwellings consisting of three (3) or more units. Lighting must be available for parking areas and wa!kways between the parking area and the dwelling unit for dwellings of two (2) or less units. (g) In dwellings of three (3) or more units, parking areas and pedestrian walkways must have a minimum light of 1 foot candle and the maximum light at the boundary line of the premises may not exceed 3 foot candles. (h) Driveways leading to parking areas and/or access ways to buildings must be maintained and kept in good repair. In cases of tenant parking areas all parking stalls and driveways with access to tenant parking shall be hard surfaced with asphalt or concrete by July 1, 1998. (i) Commercial Vehicles and Junk Cars. Commercial vehicles and junk cars shall be regulated in accordance with Chapter 7, Article II, Section 5 of the Columbia Heights City Code, which is incorporated herein by reference. 5A.208(2) Variances under 5A.207 and 5A.208 shall be enforced and administered in accordance with 9.105. The criteria contained in 9.105(3) (d) shall be applied in deciding whether or not an applicant is entitled to a variance. This ordinance is effective thirty passage. (30) days after its First Reading: Second Reading: Date of Passage: June 9, 1997 June 23, 1997 June 23, 1997 REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 16 Offered by: Seconded by: Roll call: Peterson Sturdevant All ayes Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions I) Resolution No. 97-41 Beinq a Resolution Acceptinq the COPS MORE 96 Federal Grant Motion by Ruettimann, second by Peterson to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes RESOLUTION NO. 97-41 BEING A RESOLUTION ACCEPTING THE COPS MORE 96 FEDERAL GP_ANT AND APPROPRIATING MATCH FUNDS TO THE GRANT WHEREAS, in October 1996 the Columbia Heights Police Department made application for a grant from the U.S. Department of Justice for an evidence technician and for technology/equipment in the form of lap top computers with MDT conversions and mounting stands, and WHEREAS, the grant will become available to the department in July 1997, and WHEREAS, the breakdown of the grant is as follows: ~xpense: Personnel Equipment Total Expense $34,860.00 $22,791.00 $57,651.00 Revenue: Grant City Match Total Revenue $43,238.00 $14,413.00 $57,651.00 CITY OF COLUMBIA HEIGHTS DATE: JUNE 20, 1997 TO: WALT FEHST, CITY MANAGER FROM: JEAN KUEHN, SPEC. PROJECT COORD. ASSISTANCE TO RESIDENTS TO PAVE AND PAY FOR DRIVEWAYS A resident inquired as to the possibility of the City making low interest loans available for those homeowners who need to comply with the new ordinance requiring the paving of driveways. She stated that Fridley had a similar ordinance in place and was giving this type of assistance to their homeowners. I spoke with Barb Dacy in the Fridley, Planning and Development and verified that they do have available to their residents a low interest loan (5%) for rehabilitation of home, and this in accepted as an approved improvement. Their HRA funds the program, thru a loan from the Council and so it is basically a self-financing, loan repayment program. The other program in conjunction xvith this, is a proposed group purchase of services from one contractor. The City of Fridley wrote bid specs for the driveways and have a list of 30 homeowners who would like to jointly purchase the services of a contractor. Fridley will have the bids back the 2nd week of July, and Barb was pleased at the prospect of perhaps including the City of Columbia Heights in the group and getting a better price for all parties. Fridley is faxing a copy of their bid specs to me. JULY 21, 1997 WORK SESSION WORK SESSION DISCUSSION ITEM - ORDINANCE NO. 1348 Ordinance No. 1348 regarding exterior parking received its second reading and passage at the June 23, 1997 Council Meeting. At that time, it was felt it should be placed on the agenda of a future Council work session. Attached is a copy of the minutes which address passage of the ordinance and the associated discussion. Also, attached is material received from the Inspections Department, a resident letter and a memo from staff regarding funding assistance. ill 5A.208.1 ~a Heights Fire Dept Inspection Violations by Violation Code Occupancy Id greater than or equal to "90000" and Occupancy Id less than or equal to "99999" and Violation Code equal to "5A.208.1" Parking, Ughting, CommeHcal Vehicles, Junk Cars Article Div Page I 2 36 Date Occupancy 04/23'i 9~ 91595 05/06/i 99~ 90526 05/06/199E~ 90527 05/06/1996 90532 05/06/1996 90020 05/06/1996 95125 05/06/1996 95084 05/07/1996 91406 05/07/1996 90538 05/07/1996 95181 05/07/1996 95142 05/07/1996 95070 05/08/1996 91349 05/08/1996 90567 05/08/1996 90562 05/08/1996 91344 05./08/1996 9518O 05/08/1996 95123 05/08/1996 95106 05/14/1996 95021 05/24/1996 95002 05/24/1996 93251 95/24/1996 91524 96/03/1996 95472 36/03/199E ~3663 36/03/199E 2-0638 ~)6/03/199E ~O634 ~6/03/199E ~557 ~6/03/199-.' ~'j648 ~6/03/199E_- 6/03/199-~ ~- 362 6/03/199E 5103119.c,.~ -~/03/19.C-_' ~--=..,2 ~, 7 ~/03/199E ~-"~28, 8 ~/031199'5_' ~ ° 2.5 ~/03/199E ,~-~,3'~ 3 Meier Duplex, Pdvate Single Family ANDERSON, STEVEN R. BLAISDELL, RACHEL L. BCE, VINCENT B. KNEALING, CARL L. SYKORA, WILl_AM H & MURIEL C. TIMBEROSS, DONALD F.- VIRGINIA FINCH, RICHARD - CONNIE FINN, BRIAN SOLEM, DAVID E. SWANSON, MAR'Pr' & SUSAN TURPIN, LOREN J. - LYNN M. BLONIGAN, DALE - ALE×ANDRA DAVIDSON, SCOTT R. HOVELAND, LYLE LEE, RICKY A. - MELISSA M. SPERR, MARK L. & TAMMY L. SWEET, WILLIAM TAYLOR, JOHN P. & ANN MARIE Wolfgram, Lee R. - Sharon K. Gulden, Cameron M. & Krista K. JOHNSTON, THOMAS R. - THERESA M. SCHWARZ, KURT CHARBONNEAU, AMANUAL J. DALEY, THOMAS F. DILLE, ROBERT G. - ARDICE L. ENNS, DEAN ..~..~ GAMBLE, SCOTT D. - LEEANN M. HILL, PEGGY J. JOHNSON, LYNN E. O'BRIEN, KEVlN - COLLEEN PFAFF, PAUL A. - ROSE M. PHILLIPS. LOUISE PITHAN, JAMES P. - KIRSTEN K. RESMAN, STEPHEN J. SORENSON, AUDREY J. VERA, LAWRENCE L. - DEBRA L. enotes V'~ ~on'ected or Variance Issued ~.'t/'199T - "; ;- 4931 Jackson Street ~'-~ ~- ~o-"-= 4417 Van Buren Street 4429 Van Buren Street 4401 Monroe Street 808 45th Avenue ,'~< 4455 Monroe Street ex 4431 4432 4422 4400 4453 4457 4233 4205 4216 4219 4221 4206 4244 4356 4518 4400 4300 ~J o 4333 4352 4345 ~.. ..... 4340 4352 4335 4335 4316 4324 4345 4312 tJ r.,4326 4323 ~v~,4332 Jefferson Street o~ Madison Street-o~ MADISON STREET ~'~' Madison Street ,.-,r Jeffe~on Street Madison Street o~ 4th Stmet~ Univemity Avenue ~ 5TH STREET~ 4th Street - Univemity Avenue 5th Street ~.~ 5th Street~ 5th Street/~? Monroe Street/~o~ A~hur Street - Madison Stmet_ W~hington Street ~ ~- 5TH STREET ~ ~.~ ~H STREET ~ ~ WASHINGTON STREET W~hin~0n Street 6TH STREETo < 4th Street ~¢~[ 4th Street ~¢¢¢~ 7th Street o ~( 5thStreet ~=r /~¢ Washington Street 7th Street ~r p, Washington Street 7th Street ~ ~ Page 1 Inspection Violations by Violation Code 06/03/1996 90173 06/11/1996 90592 06/24/1996 91338 07/05/1996 91471 07/05/1996 91339 07/05/1996 95089 07/05/1996 91564 07/05/1996 95093 07/11/1996 91331 07/11/1996 91569 07/11/1996 91369 07/11/1996 91420 07/11/1996 91329 07/11/1996 95266 07/11/1996 91499 07/11/1996 91396 05/09/1997 93623 Occupancy id greater than or equal to "90000" and Occupancy Id less than or equal to "99999" and Violation Code equal to "5A.208.1" WATSON, MERLE - ANGLE Davidson, David R. SANETRA, KRISTY Carlson, David L. - Stephanie A. FORSBERG, MAX A. - RHONDA L. JOHNSON, BARBARA J. Matters, JoAnn THILL, LOUIS J. BJERKEN, THEODA C. DOUGHERTY, KEITH A.- CELESTINE DRUMMOND, MYRON E. HASS, HARVEY J. - SANDRA L. KLITZKE, ALVIN H. - LEONA E. RUDISUHLE, HELEN SCHMIDT, ROBERT/lvIARIANNE WARNER, LAURENCE D. Turnquist, Ty D. - Jennifer C. Total Occurrences of Violation Code: 4309 4th Street ~"'~ 4311 Reservoir Boulevard ~.o[4149 4th Street ~ '~'4740 5th Street 4129 5th ~met ~ ~ 41~ 5th St~et~ 4101 5th Street ~ ~ 4116 5TH STREET~:~ 4141 6TH STREET ~ 4150 JEFFERSON STREE 4153 ~H STREET 4120 JEFFERSON STREET~ 4129 6TH STREET 4120 6TH STREET 4139 6~ STREETM 4116 JEFFERSON 1331 45th Avenue 54 Total Count of Violations for Code: I Grand Total Violations: 54 * Denotes Violations Corrected or Variance Issued 05/21/1997 13:41 Page June 20, 1997 City Council Members 590 40th Avenue Columbia Heights MN 55421-3878 Dear City Council Members, ! am writing to you in regards to the ordinance passed regarding the mandatory pavement of all parking areas in Columbia Heights. ! am a new home owner in Columbia Heights, but have lived in Heights for over ~en years. ! truly believe that this ordinance is unfair to many homeowners who prefer gravel rather than pavement on their driveways or other parking areas. ! feel that gravel or rocks on driveways is actually more aesthetically pleasing than cement or pavement, and feel that it is unfair of the city to try to force me to spend money I do not have on paving my parking area. This money would be much better spent on painting my home, or adding more flowers and shrubs to my yard (or paying my school ~oans). ! feel that my home, and many others containing gravel parking areas, are very well maintained and attractive as they are. I am assuming that all of your driveways are already paved, and that this unfair ordinance will not affect you; believe me, it will negatively affect a lot of people in Columbia Heights who are just trying to stay ahead of their bills. My mother is one of these people. She works long hours to support my brother and sister, and when she does get extra money, it is immediately sunk into home repairs and beautification. In fact, about a two months ago she spent her bonus check to regravel her driveway - now you are ~elling her she has to come up with another two thousand dollars to pave over what she just paid $500.00 to someone to do. This is not an efficient way to run a city, and it is not fair or necessary for you to impose this ordinance on people who already have well kept up houses with nice yards. SOME PEOPLE DO NOT LIKE PAVEMENT!!! (including me). Gravel driveways are no~ toxic or harmful to any one, so please do not impose your aesthetic values on the rest of the city, it really is not proper in a democratic country. Thank you for. you.r ~ / ,.~ Jill ':~ ~ REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 12 Section 45. REFERENDUM P]~TITIONS. The requirements laid down in sections 38 and 39 above as to the formation of committees for the initiation of meee~e~~DS-9~ and as to the form of petitions and signature papers shall apply to the referendum as far as possible, but with such verbal changes as may be necessary. A referendum petition shall begin as follows: REFERENDUM PETITION Proposing the repeal of an ordinance c=:c m=y be) to .... (stating the purpose of the ~ is hereto attached. This ~ee,~e ~ is sponsored by, etc. Section 46. REFERENDUM BALLOTS. The ballots used in any referendum election shall conform to the rules laid down in section 42 of this charter for initiative ballots. Section 2: This ordinance shall be in full force and effect from and after ninety (90) days after its passage. First Reading: Second Reading: Date of Passage: June 9, 1997 June 23, 1997 June 23, 1997 Offered by: Seconded by: Roll call: Jones Ruettimann All ayes Mayor Joseph Sturdevant Jo-Anne Student, Council Secretary C. Second Reading of Ordinance No. 1349 Amend~nc Chapter 3, Section 17 of the Char=er of the City of Columbia ~i~hts Pertaininc Do Rules of Procedure and Ouorum Motion by Ruettimann, second by Peterson to table the second reading of Ordinance No. 1349 to a future date until it has been reviewed by the Charter Commission. Roll call: All ayes D. Second Readinc of Ordinance No. 1348 ~ein~ an Ordinance ~mendSn~ Citv Code R~ardin~ ~xterior Parking Motion by Peterson, second by Sturdevant to waive the reading of the ordinance there being ample copies available for the public. Roll call: All ayes June 20, 1997 City Council Members 590 40th Avenue Columbia Heights MN 55421-3878 Dear City Council Members, ! am writing to you in regards to the ordinance passed regarding the mandatory pavement of all parking areas in Columbia Heights. ! am a new home owner in Columbia Heights, but have lived in Heights for over ten years. ! truly believe that this ordinance is unfair to many homeowners who prefer gravel rather than pavement on their driveways or other parking areas. ! feel that gravel or rocks on driveways is actually more aesthetically pleasing than cement or pavement, and feel that it is unfair of the city to try to force me to spend money ! do not have on paving my parking area. This money would be much better spent on painting my home, or adding more flowers and shrubs to my yard (or paying my school loans). I feel that my home, and many others containing gravel parking areas, are very well maintained and attractive as they are. I am assuming that all of your driveways are already paved, and that this unfair ordinance will not affect you; believe me, it will negatively affect a lot of people in Columbia Heights who are just trying to stay ahead of their bills. My mother is one of these people. She works long hours to support my brother and sister, and when she does get extra money, it is immediately sunk into home repairs and beautification. In fact, about a two months ago she spent her bonus check to !egravel her driveway - now you are telling her she has to come up with another two thousand dollars to pave over what she just paid $500.00 to someone to do. This is not an efficient way to run a city, and it is not fair or necessary for you to impose this ordinance on people who already have well kept up houses with nice yards. SOME PEOPLE DO NOT LIKE PAVEMENT!!! (including me). Gravel driveways are not toxic or harmful to any one, so please do not impose your aesthetic values on the rest of the city, it really is not proper in a democratic country. Thank you for your ,.~ REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 13 There was some discussion regarding the intent of this ordinance. It does not address requirements for garages. Its primary purpose is to extend the deadline for hard surfaced parking. It was felt this matter should be included on the agenda of a future Council work session. ORDINANCE NO. 1348 BEING AN AMENDMENT TO ORDINANCE NO. 853, CITY CODE 1977, SECTION 8 IN THE HOUSING MAINTENANCE CODE REGARDING THE REQUIREMENT FOR EXTERIOR PARKING, PEDESTRIAN WALKWAYS AND LIGHTING Section 8 currently reads as follows: The City of Columbia Heights does ordain: Section 8: Exterior Parking, Pedestrian Walkways and Lighting 5A.208(i) No person shall occupy as an owner-occupant or let to another for occupancy and dwelling or dwelling unit for the purposes of living, sleeping, cooking or eating there in which is located on premises which does not comply with the following requirements, to-wit: (a) Required off-street parking as defined in Section 9.116(4) of the City Code. Additionally, any building or structure in existence upon the effective date of this ordinance which does not currently comply with the parking requirements of Section 9.116(4), but does have the necessary space to provide the required parking shall be required to expand the provided parking in accordance with the Code by July 1, 1997. (b) The required parking space must have a minimum width of 9 feet and a minimum length of 20 feet. (c) Ail required parking spaces must be surfaced with asphalt or concrete. (d) Curb guards and/or guardrails must be provided for parking spaces situated above retaining walls. (e) An unobstructed ]path must be provided between parking areas and the dwelling unit. REGULAR COUNCIL MEETING JUNE 23, 1997 PAGE 15 (b) The required parking space must have a minimum width of 9 feet and a minimum length of 20 feet. (c) All required parkin~ spaces must be surfaced with asphalt and concrete. (d) Curb guards and/or 9uardraiis must be provided for parking spaces situated above retaining walls. (e) An unobstructedpath must be provided between parkin~ areas and dwelling units. (f) Lighting must be provided for parkin~ areas and walkways between the parkin~ area and the dwelling unit in dwellings consisting of three (3) or more units. Li~htin~ must be available for parkin~ areas and wa!kways between the parkin~ area and the dwellin~ unit for dwellings of two (2) or less units. (9) In dwellings of three (3) or more units, parkin9 areas and pedestrian walkways must have a minimum light of 1 foot candle and the maximum light at the boundary line of the premises may not exceed 3 foot candles. (h) Driveways leadin~ to parkin9 areas and/or access ways to buildings must be maintained and kept in good repair. In cases of tenant parking areas all parking stalls and driveways with access to tenant parking shall be hard surfaced with asphalt or concrete by July 1, 1998. (i) Commercial Vehicles and Junk Cars. Commercial vehicles and junk cars shall be regulated in accordance with~Chapter 7, Article II, Section 5 of the Columbia Heights City Code, which is incorporated herein by reference. 5A.208(2) Variances under 5A.207 and 5A.208 shall be enforced and administered in accordance with 9.105. The criteria contained in 9.i05(3) (d) shall be applied in deciding whether or not an applicant is entitled to a variance. This ordinance is effective thirty (30) days after its passage. First Reading: Second Reading: Date of Passage: June 9, 1997 June 23, 1997 June 23, 1997 CITY OF COLUMBIA HEIGHTS DATE: JUNE 20, 1997 TO: WALT FEHST, CITY MANAGER FROM: JEAN KUEHN, SPEC. PROJECT COORD. ASSISTANCE TO RESIDENTS TO PAVE AND PAY FOR DRIVEWAYS A resident inquired as to the possibility of the City making low interest loans available for those homeowners who need to comply with the new ordinance requiring the paving of driveways. She stated that Fridley had a similar ordinance in place and was giving this type of assistance to their homeowners. I spoke with Barb Dacy in the Fridley, Planning and Development and verified that they do have available to their residents a low interest loan (5%) for rehabilitation of home, and this in accepted as an approved improvement. Their HRA funds the program, thru a loan from the Council and so it is basically a self-financing, loan repayment program. The other program in conjunction with this, is a proposed group purchase of services from one contractor. The City of Fridley wrote bid specs for the driveways and have a list of 30 homeowners who would like to jointly purchase the services of a contractor. Fridley will have the bids back the 2nd week of July, and Barb was pleased at the prospect of perhaps including the City of Columbia Heights in the group and getting a better price for all parties. Fridley is faxing a copy of their bid specs to me. CITY OF COLUMBIA HEIGHTS TO: FROM: DATE: Honorable Mayor Sturdevant city Councilmembers Walt Fehst, City Manager Kenneth R. Anderson, Community Development Director July 16, 1997 RE: WORK SESSION OF JULY 21, 1997. MHFA FINANCING OF DRIVEWAY IMPROVEMENTS. As a result of the local ordinance which requires all driveways and parking areas to be hard surfaced with bituminous or concrete materials, the Community Development Department has researched available financing programs which may be available to assist owners in completing the required improvements. The Minnesota Housing Finance Agency (MHFA) provides below market interest rate loans through local lenders which includes the Columbia Heights Economic Development Authority (EDA). The program for which driveway improvements are an eligible expense is the Minnesota Fix-up Fund. The Fix-up Fund program features are summarized below: 1) 2) 3) 4) 5) 6) 7) 8) 9) Applicant must be a fee owner or contract-for-deed purchaser. Property to be improved must be the applicants home (may be up 4 units). Applicant must be a reasonable credit risk based upon staff review of creditworthiness, income, debts, equity, etc. Gross annual household income not to exceed $46,000. Improvements include additions, alterations, remodeling or repairs including garages and driveways. Maximum loan of $15,000. Second mortgage required if loan funds exceed $2,500. Loan term between six (6) months to fifteen (15) years. Loan interest is fixed rate based upon adjusted income from 2-8%. Adjusted Income Interest Rate Up to $10,000 $10,001 to $15,000 $15,001 to $21,000 $21,001 to $46,000 2% 4% 6% 8% This program is administered by the Housing Coordinator in the Community Development Department. Application forms and further information are available in the Department. The Community Development Director will be available to respond to questions. Attached please find a summary from the MHFA which includes information on both the Fix-up Fund and Home Energy Loan programs. Attachment Page 1 of 1 MINNESOTA HOUSING .FINANCE .AGENCY April 1996 HOME IMPROVEMENT LOAN PROGRAMS SUMMARY INTRODUCTION The Minnesota Housing Finance Agency (MHFA) was created by the State Legislature in 1971 for the purpose of financing decent, safe, and sanitary housing for Minnesotans with Iow and moderate incomes, in 1983, the State Legislature expanded the scope of MHFA authority to provide financing to additional homeowners for the purpose of improving the energy efficiency of their homes. To encourage and assist homeowners improve their homes, MHFA works with local lenders to provide below market interest rate loans through two Home Improvement Loan Programs: · The Great Minnesota Fix-up Fund · Home Energy Loans These are secondary-market loan programs. Participating lenders make qualified loans to eligible borrowers, and then sell the loans to MHFA. There are 411 lending institutions and housing organizations offering these loans through their 1,001 offices statewide. MHFA raises capital for these programs by selling bonds. Proceeds of these bond sales and recycled funds make it possible for MHFA to offer iow cost interest rates. GENERAL ELIGIBILITY To be eligible to receive a Fix-up Fund loan or Home Energy Loan: The applicant must be a fee owner or contract-for-deed purchaser of the property which will be Improved. The property to be improved must be located in Minnesota. The property to be improved must be the applicant's principal residence. The applicant must be a reasonable credit risk, with ability to pay the loan obligation. Not more than 15% of the total area of the residence may be used regularly and exclusively In a trade or business. !! the property Is new construction, it must be completed and occupied at least ninety (90) days prior to the date of the credit application. 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612) 296-7608 Telecommunications Device for the Deaf (TDD) (612) 297-2361 Equal Opportunity Housing and Equal Opportunity Employment APPENDIX "E-3" ADDITIONAL PROPERTY ELIGIBILITY Fix-up Fund: The property may be up to 4 units, if one of the units is occupied by the borrower. Personal property manufactured homes are not eligible. Home Energy Loans: Single family, owner-occupied properties are eligible. A set- aside of funds is also available for manufactured homes that are owner occupied and taxed as personal property. INCOME ELIGIBILITY Fix-up Fund: Gross annual household income must not exceed Home Energy Loans: No household income limit. I! ELIGIBLE USES OF LOAN FUNDS ~'"~ ' :" .... ' FIX-UP FUND ' ~' II Fix-up Fund loan proceeds must be used to pay for eligible new improvements to existing structures which improve the basic livability, utility or energy efficiency of the property. The improvements must be permanent general improvements which may include: Additions, alterations, remodeling or repairs to the structure Accessibility improvements Construction or repair of personal-use garages and driveways Fix-up Fund loan proceeds must not be used for: · Ineligible improvements, which include decks, patios, fireplaces, spas, tennis courts, swimming pools, conversion of a non-residential property into residential property, and conversion of a personal-property mobile home or vacation home into year-round residential real-property · Refinancing any previously existing loan or debt · Reimbursement for improvements begun :before the date of the credit application · Assessments for public improvements ELIGIBLE USES OF LOAN FUNDS ~ ~-¥'~"HOME ENERGY LOANS ....... ~.:~;*'/~:;:~"~:7~.:-~::~ Home Energy Loan proceeds must be used to improve the energy efficiency of the residence. Eligible improvements include: - Furnace replacement, repair or modification - Insulation - Storm doors and windows - Replacement doors and windows - Weatherstripping and caulking - Automatic set-back thermostats - Woodbuming stoves or fireplace stove inserts 2 APPENDIX "E-4" Home Energy Loan funds must not be used for: · Items related to new construction such as windows and doors for a room addition · Fireplaces · Roofs · Siding · Air conditioning (except where central air conditi6ning is being replaced.) II LOAN MAKING PROCEDURES A participating lender determines an applicant's eligibility, the loan amount, and makes a reservation of funds by telephone or fax for that applicant. MHFA gives a verbal commitment of funds and follows up with a written confirmation. The participating lender originates and closes a loan which meets the requirements of the procedural manual for Home Improvement Loan Programs. The lender disburses loan funds to the borrower. Following the lender's loan closing and disbursement of funds, the lender endorses the note without recourse to MHFA and submits the loan package to MHFA. MHFA staff reviews the loan package upon receipt, and if documentation is complete and accurate, the loan is approved for purchase. Following purchase, the lender receives reimbursement for the principal amount of the loan plus a processing fee of: $350 for Fix-up Fund $175 for Home Energy Loans No appraisals or title insurance policies are required (Borrower cannot be charged for these items.) , MHFA staff are always available to assist participating lenders on individual applications. .... · .'. ~' : ....... -' '~- LOAN TERMS Loan Amount: · The maximum Fix-up Fund loan amount is $15,000. (This amount may be further limited if the applicant previously borrowed money from a home improvement or energy conservation program financed with tax-exempt bond proceeds.) · The maximum Home Energy Loan amount is $5,000. (This amount may be further limited if the borrower previously received a Home Energy Loan.) 3 APPENDIX "E-5" Security: · Fix-up Fund loans in excess of $2,500 must be secured with a second mortgage. · Home Energy Loans are'generally not secured by a mortgage. Term: · The minimum term of Fix-up Fund loans is six (6) months; the maximum term of the loan is fifteen (15) years. · The minimum term of Home Energy Loans is six (6) months; the maximum term of the loan is 5 years. Loan terms may not extend for an unreasonable length of time. All loans must be paid in full upon sale of the property, or if the borrower moves from the home. Loans are simple interest and at a fixed rate. The rate of interest to be charged on each loan will correspond to the borrower's adjusted income. Interest accrues from the date of the note. All loans must be "direct loans". Loans involving "dealers" are not eligible. CONDITIONS PERTAINING TO COMPLETION OF WORK Improvements must be completed within nine (9) months from the date the loan is closed. Random inspections to verify completion of work are conducted by MHFA. All Fix-up Fund construction or work performed under contract must be in compliance with a warranty of workmanship and materials on a form supplied by MHFA. LENDER PARTICIPATION PROCEDURES To become a participating lender: · The lender must submit two completed Participation Application and Note Purchase Agreements to MHFA. This agreement indicates the lender's intention to originate eligible Fix-up Fund and Home Energy Loans for sale to MHFA under the terms of the programs. The agreement establishes the conditions of participation and the period during which loans r~ay be originated. · The agreement must be accompanied by a Participation Fee of $100. This is a one- time fee. 'No annual renewal fees will be due. MHFA reserves the right to refuse to execute Participation Agreements with lenders who, in the judgment of the MHFA Commissioner, do not have the capability to fully meet the terms of the Participation Application and Note Purchase Agreement. 4 "E 6" "' APPENDIX -- II LOAN PROCESSORS/£ENDER WORKSHOPS Lenders will be required to designate individuals in their institutions as "Loan Processors" who will be responsible for assembling and approving the loans to be submitted to MHFA for purchase. The designated Loan Processors will be required to attend a three and one-half hour workshop to become familiar with the program procedures. Any other staff members working with the program are also encouraged to attend. Workshops are held twice annually at various locations around the state. FORMS AND SUPPLIES MHFA will provide a procedural manual to all participating lenders. MHFA will also provide supplies of the following required forms: Fix-up Fund Note. Home Energy Loan Note. Fix-up Fund Credit Application, with an MHFA-approved Contractor Warranty form. Home Energy Loan Credit Application. MHFA Individual Commitment and Note Submission Voucher. Any other forms are provided by the lender and at the discretion of the lender. MHFA will provide various types of marketing materials, such as brochures, ad slicks, posters, and press releases, and other assistance to participating lenders to promote the program. MHFA will also perform statewide marketing of the program, including referrals to participating lenders. LOAN SERVICING MHFA will provide for the servicing of all loans through a servicer of MHFA's choice and at the expense of MHFA, FURTHER INFORMATION For further information call (612) 296-8215 in the metro area or toll-free 1-800-710-8871. A Housing Development Officer will be available to assist with your questions. 5 APPENDIX "E-7" CITY OF COLUMBIA HEIGHTS TO: FROM: D~TE: Honorable Mayor Sturdevant City Councilmembers Walt Fehst, City Manager Kenneth R. Anderson, Community Development Director July 16, 1997 RE: WORK SESSION OF JULY 21, 1997. MHF~ FIN~NCING OF DRIVEWAY IMPROVEMENTS. As a result of the local ordinance which requires all driveways and parking areas to be hard surfaced with bituminous or concrete materials, the Community Development Department has researched available financing programs which may be available to assist owners in completing the required improvements. The Minnesota Housing Finance Agency (MHFA) provides below market interest rate loans through local lenders which includes the Columbia Heights Economic Development Authority (EDA). The program for which driveway improvements are an eligible expense is the Minnesota Fix-up Fund. The Fix-up Fund program features are summarized below: 1) 2) 3) 4) 5) 6) 7) 8) 9) Applicant must be a fee owner or contract-for-deed purchaser. Property to be improved must be the applicants home (may be up 4 units). Applicant must be a reasonable credit risk based upon staff review of creditworthiness, income, debts, equity, etc. Gross annual household income not to exceed $46,000. Improvements include additions, alterations, remodeling or repairs including garages and driveways. Maximum loan of $15,000. Second mortgage required if loan funds exceed $2,500. Loan term between six (6) months to fifteen (15) years. Loan interest is fixed rate based upon adjusted income from 2-8%. Adjusted Income Interest Rate Up to $10,000 $10,001 to $15,000 $15,001 to $21,000 $21,001 to $46,000 2% 4% 6% 8% This program is administered by the Housing Coordinator in the Community Development Department. Application forms and further information are available in the Department. The Community Development Director will be available to respond to questions~ Attached please find a summary from the MHFA which includes information on both the Fix-up Fund and Home Energy Loan programs. Attachment Page 1 of 1 MINNESOTA HOUSING FINANCE AGENCY April 1996 HOME IMPROVEMENT LOAN PROGRAMS SUMMARY INTRODUCTION .... ' 11 The Minnesota Housing Finance Agency (MHFA) was created by the State Legislature in 1971 for the purpose of financing decent, safe, and sanitary housing for Minnesotans with Iow and moderate incomes, in 1983, the State Legislature expanded the scope of MHFA authority to provide financing to additional homeowners for the purpose of improving the energy efficiency of their homes. To encourage and assist homeowners improve their homes, MHFA works with local lenders to provide below market interest rate loans through two Home Improvement Loan Programs: · The Great Minnesota Fix-up Fund · Home Energy Loans These are secondary-market loan programs. Participating lenders make qualified loans to eligible borrowers, and then sell the loans to MHFA. There are 411 lending institutions and housing organizations offering these loans through their 1,001 offices statewide. MHFA raises capital for these programs by selling bonds. Proceeds of these bond sales and recycled funds make it possible for MHFA to offer Iow cost interest rates. II .... GENERAL To be eligible to receive a Fix-up Fund loan or Home Energy Loan: v' The applicant must be a fee owner or contract-for-deed purchaser of the property which will be Improved. v' The property to be Improved must be located In Minnesota. v' The property to be Improved must be the applicant's principal residence. v' The applicant must be a reasonable credit risk, with ability to pay the loan obligation. v' Not more than 15% of the total area of the residence may be used regularly and exclusively In a trade or business. v~ If the property is new construction, it must be completed and occupied at least ninety (90) days prior to the date of the credit application. 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (612) 296-7608 Telecommunications Device for the Deaf (TDD) (612) 297-2361 Equal Opportunity Housing and Equal Opportunity Employment APPENDIX "E-3" ADDITIONAL PROPERTY ELIGIBILITY Fix-up Fund: The property may be up to 4 units, if one of the units is occupied by the borrower. Personal property manufactured homes are not eligible. Home Energy Loans: Single family, owner-occupied properties are eligible. A set- aside of funds is also available for manufactured homes that are owner occupied and taxed as personal property. I1: .... INCOME ELIGIBILITY Fix-up Fund: Gross annual household income must not exceed ~0.~_~. Home Energy Loans: No household income limit. ELIGIBLEUSESOFLOANFUNDSFix.~jp FUND " Fix-up Fund loan proceeds must be used to pay for eligible new improvements to existing structures which improve the basic livability, utility or energy efficiency of the property. The improvements must be permanent general improvements which may include: - Additions, alterations, remodeling or repairs to the structure - Accessibility improvements - Construction or repair of personal-use garages and driveways Fix-up Fund loan proceeds must not be used for: Ineligible improvements, which include decks, patios, fireplaces, spas, tennis courts, swimming pools, conversion of a non-residential property into residential prope~,, and conversion of a personal-property mobile home or vacation home into year-round residential real-property Refinancing any previously existing loan or debt Reimbursement for improvements begun before the date of the credit application Assessments for public improvements ELIGIBLE USES OF LOAN FUNDS HOME ENERGY LOANS ~ Home Energy Loan proceeds must be used to improve the energy efficiency of the residence. Eligible improvements include: ,, - Furnace replacement, repair or modification Insulation Storm doors and windows Replacement doors and windows Weatherstripping and caulking - Automatic set-back thermostats - Woodbuming stoves or fireplace stove inserts 2 APPENDIX "E-4" Home Energy Loan funds must not be used for: · Items related to new construction such as windows and doors for a room addition · Fireplaces · Roofs · Siding · Air conditioning (except where central air conditi6ning is being rep/aced.) LOAN MAKING PROCEDU'I~'E.S A participating lender determines an applicant's eligibility, the loan amount, and makes a reservation of funds by telephone or fax for that applicant. MHFA gives a verbal commitment of funds and follows up with a written confirmation. The participating lender originates and closes a loan which meets the requirements of the procedural manual for Home Improvement Loan Programs. The lender disburses loan funds to the borrower. Following the lender's loan closing and disbursement of funds, the lender endorses the note without recourse to MHFA and submits the loan package to MHFA. MHFA staff reviews the loan package upon receipt, and if documentation is complete and accurate, the loan is approved for purchase. Following purchase, the lender receives reimbursement for the principal amount of the loan plus a processing fee of: $350 for Fix-up Fund $175 for Home Energy Loans No appraisals or title insurance policies are required (Borrower cannot be charged for these items.) , MHFA staff are always available to assist participating lenders on individual applications. Ii ......: . .' LOAN TERMS .--__ ' ._ !1 l=0en Amount: · The maximum Fix-up Fund loan amount is $15,000. (This amount may be further limited if the applicant previously borrowed money from a home improvement or energy conservation program financed with tax-exempt bond proceeds.) · The maximum Home Energy Loan amount is $5,000. (This amount may be further limited if the borrower previously received a Home Energy Loan.) 3 APPENDIX "E-5" ~ ~ecurity: · Fix-up Fund loans in excess of $2,500 must be secured with a second mortgage. · Home Energy Loans are'generally not secured by a mortgage. .Term: · The minimum term of Fix-up Fund loans is six (6) months; the maximum term of the loan is fifteen (15) years. The minimum term of Home Energy Loans is six (6) months; the maximum term of the loan is 5 years. Loan terms may not extend for an unreasonable length of time. All loans must be paid in full upon sale of the property, or if the borrower moves from the home. Loans are simple interest and at a fixed rate. The rate of interest to be charged on each loan will correspond to the borrower's adjusted income. Interest accrues from the date of the note. All loans must be "direct loans". Loans involving "dealers" are not eligible. II, ,, "CONDITIONS PERTAINING ~"0' '"COMPLETION",O~ WORK,, Improvements must be completed within nine (9) months from the date the loan is closed. Random inspections to verify completion of work are conducted by MHFA. All Fix-up Fund construction or work performed under contract must be in compliance with a warranty of workmanship and materials on a form supplied by MHFA. LENDER PARTICIPATION PROCEDURES To become a participating lender: · The lender must submit two completed Participation Application and Note Purchase Agreements to MHFA. This agreement indicates the lender's intention to originate eligible Fix-up Fund and Home Energy Loans for sale to MHFA under the terms of the programs. The agreement establishes the conditions of participation and the period during which loans roay be originated. · The agre.ement must be accompanied by a Participation Fee of $100. This is a one- time fee. No annual renewal fees will be due. MHFA reserves the right to refuse to execute Participation Agreements with lenders who, in the judgment of the MHFA Commissioner, do not have the capability to fully meet the terms of the Participation Application and Note Purchase Agreement. 4 APPENDIX "E~6" I[ LOAN 'PROCES$OFI$/LENDER . WOFIKSHOP_-~ .... ~, Lenders will be required to designate individuals in their institutions as "Loan Processors" who will be responsible for assembling and approving the loans to be submitted to MHFA for purchase. The designated Loan Processors will be required to attend a three and one-half hour workshop to become familiar with the program procedures. Any other staff members working with the program are also encouraged to attend. Workshops are held twice annually at various locations around the state. FORMS AND SUPPLIES ....... -~ ,.iL'- ~ !1 MHFA will provide a procedural manual to all participating lenders. MHFA will also provide supplies of the following required forms: Fix-up Fund Note. Home Energy Loan Note. Fix-up Fund Credit Application, with an MHFA-approved Contractor Warranty form. Home Energy Loan Credit Application. MHFA Individual Commitment and Note Submission Voucher. Any other forms are provided by the lender and at the discretion of the lender. MHFA will provide various types of marketing materials, such as brochures, ad slicks, posters, and press releases, and other assistance to participating lenders to promote the program. MHFA will also perform statewide marketing of the program, including referrals to participating lenders. , LOAN SERWC/NG ....... .... 11 MHFA will provide for the servicing of all loans through a servicer of MHFA's choice and at the expense of MHFA. & Ii ,, FURTHER INFORMA T.i..ON i~ '. .... -- II For further information call (612) 296-8215 in the metro area or toll-free 1-800-710-8871. A Housing Development Officer will be available to assist with your questions. 5 APPENDIX "E-7" Public Works Department Worksession Discussion Item Worksession date: July 21, 1997 Prepared by: Mark A. Winson, Public Works Director/City Engineer Item: "Slow - No Wake" Ordinance for Silver Lake Background: During periods of high water, residents on Silver Lake experience a high incidence of erosion and damage to their lakeshore. In the past, Columbia Heights has locked the gate at the boat landing to keep casual users off the lake. Discussion: Earlier this year, staff ~vas informed that unless free and unlimited access is provided to Silver Lake, the DNR will not provide management services such as fish stocking or consider other amenities such as an aerator. Staff has taken the position this season that the boat landing will remain unlocked except from 10 PM to 6 AM for security reasons. With the recent heavy rains the level of Silver Lake has risen. Residents of the lake have requested that the landing be locked until the lake level drops. These requests have been denied and the residents have been referred to the DNR. The DNR has indicated that they would agree to the posting the lake with, "SLOW - NO WAKE" restrictions during periods of high water. For this to be enforceable, both the Cities of Columbia Heights and St. Anthony will need to pass an ordinance and joint powers agreement regarding the speed restriction. Staff feels that this is a fair and equitable way to handle the situation. Requested Action: Staff will prepare an ordinance and joint powers agreement for consideration of the Council. The intent is to bring these items to the July 28 Couucil meeting for consideration. In the mean time, signage will be placed at the boat landing requesting that a slow-no wake speed be maintained by boaters. __ _ II I I _ IIIII Minnesota Department Date Sent -- ! ! °f Natural Res°urees Ju~ 15, 1~97 II 5~ Lafaye~e Road - Box 46 ~umber f P es ~ I st,Paul, MN 55155-4046 Includin ~.~;~s II g nls ~ne II TO: FACSIMILE TRANSMITTAL COVER SHEET Walt Fehst - Columbia Hts. Adminis[mtor ' FROM: t® Fax Note 7671 iDate'~r/~6/~ Ip~a~fesl~ 3 Phone ~ Phone ~' ~ __~ ~/~ Klm Elverum Boat and Water Safety Coordinator Phone: (612) 296-0905 in~,ernet: kim. elverum(~dnr, state, mn. us REMARKS/COMM E NTS: F-lAs we discussed I-lAs you requested L-]For your information [JFor your approval 7'lPlease reply i-]No reply necessary CiReview and reply by telephone CJTake appropriate dctiun Walt: Here is the sample ordinance for high water slow-no wake speed on lakes during your high water problems. Both the City of Columbia Heights and the City of St. Anthony will need to pass the identical ordinance and obtain a joint powers agreement. The ordinances, joint powers agreement and the explanatory cover letter can be FAXed to us to save time if you would like - normally on these emergency ordinances, we are able to turn them around in a matter of days. I am turning this over to our boating staff specialist, Marc:ella Jerome - 29T-5708, who handles water surface use program. Please feel free to consult Maroella on any questions you ma), have. i hope this will help solve your' problem - we can also work with you on getting a permanent ordinance for high water conditions in effect if you would like. BOAT & VVATER SAFELY FAX #(612) 296-0902 $a~I¢ Emer~enc~ IliSh ~:~r Ordinance flown, C~ty orCoumy & State,) An Ordinance Regulating Operation o£Watercra~t on (body of wa:er) Thc. (au:hority) ordains: (0 Pucvuzv. Pursuant to Minncr, ota Statutes, §§ 86B.201- 205, 459.20 and Minn. Rules Parts 6110.3000 - 6110.3700, it's the purpose of this ordinance to temporarily regulate the operation and speed of watercraft on (body o/water) ~_/t///JP.t~ 2'he following words and pl~'ases when u~l in this ordinance have the meanings set forth below. (1) "Pcrsoro'" includes an individual, partner~ip, corporation or any body of persons whether incorporated or fomied imo an association or not. (2) "Ot~erate" means to navigate or otherwi~ ur~ a watercraft. O) "Watercraft" has the meaning given in M.S. § 86B.005, Subd, 8. (4) "Slow-no wake" means the operation of a watercraft at thc slowest possible speed neces~'y to maintain steerage and in no ca~ ~roater than 5 mph. (5)" "(body of water) mean9 (description} ~ No pcr~on shall operate a watercraft at gr~atcr than a slow-no wake sp~ed on (body of water) until thc level has dropped to at least fec't as determ|ne~l at thc staff'gauge located (description oflocatiotO, and remained at or bdow that levd for at leas~ three consecutlvc days. ~ Authorized resoume management, emergency and enforcement por~nnel, when acting in the performance of their duties, ab. aH be exempt from the provisions of this ordinance. The (pick one depetuttng on county or ctty ordinance): I) Shm'iff of (c~unty) or 2) City of (city) of thc shall be responsible for infon'ning th~ public, posting notification at all public accesses and marking or buoying areas ~t'ecte~l by this ordinance as necessary to ~ive reasonable notice et'the speed restriction of'this se~tlon. ~ Primary responsibility for enforcemerrt ofthis ordinance shall rest with the County Sheriff's Departtmmt. This, however, shall not preclude enforcement by other licensed peace officers. (s) Penalfiea Any person who shall violate any ofthe provisions of this ordimmce shall be. ~uiity ora Sgc'~rlol~ 2. EFFt;crrv~ DATt: aun~ ~RM. This ordinance becosr~s effective upon its passase, publication and approval by the Commissioner of the Department Of Natural Resources, for a period oftime not to exceed days (generally $0, 45 or O0). l'nSsro by thc (authority) this. day of . .. (month), ffear) (Title) Published in the (ncwspapcr) (date) JUL ' ~ ~997 C~TY OF COLU~fA HEIGHT~ SILVER LAKE ,RESIDENTS' ASSN. July 15, 1997 Dear Member, This is just a brief note regarding efforts to protect the shoreline during times of extremely high water as we are now experiencing. In the past, when water levels were high the City of Columbia Heights, which controls the public boat access, would lock the gates until levels fell. Residents would adhere to a "no wake" speed. The U. S. De~tment of Natural Resources is currently involved in Silver Lake management and will not allow public accesses to be locked. Public lake access has been compared to public road access: everyone has an equal right to use it, restrictions have to be in place to control use. The only recourse is for Columbia Heights and St. Anthony to enact surface use restrictions (slow, no wake) during high water. As of June 15, the cities are pursuing this course of action an~maybe able to move quickly to put this restriction into place on an emergency basis very soon. A sign would be posted at the boat landing stating the no wake restriction. Enforcement ccmes frcm citizens calling to report violations to the County Sheriff's office. As Silver Lake residents, we must continue to follow the informal "no wake" restrictions during high water to pr6tect the shoreline frcm further erosion. We look forward to seeing you on July 20th at 5:30 for the picnic and at the meeting following. Please bring any concerns or suggestions at that time. Sincerely, Bill and Kay McReavy 789-3211 Will and MaryMcQuarrie 788-1316 Jerry and Marge Cowan 788-5678 Phil Hoverston and Patti Sausser 789-9663 Public Works Department Worksession Discussion Item Worksession date: July 21, 1997 Prepared by: Mark A. Winson, Public Works Director/City Engineer Item: "Slow - No Wake" Ordinance for Silver Lake Background: During periods of high water, residents on Silver Lake experience a high incidence of erosion and damage to their lakeshore. In the past, Columbia Heights has locked the gate at the boat landing to keep casual users off the lake. Discussion: Earlier this year, staff was informed that unless free and unlimited access is provided to Silver Lake, the DNR will not provide management services such as fish stocking or consider other amenities such as an aerator. Staff has taken the position this season that the boat landing will remain unlocked except from 10 PM to 6 AM for security reasons. With the recent heavy rains the level of Silver Lake has risen. Residents of the lake have requested that the landing be locked until the lake level drops. These requests have been denied and the residents have been referred to the DNR. The DNR has indicated that they would agree to the posting the lake with, "SLOW - NO WAKE" restrictions during periods of high water. For this to be enforceable, both the Cities of Columbia Heights and St. Anthony will need to pass an ordinance and joint powers agreement regarding the speed restriction. Staff feels that this is a fair and equitable way to handle the situation. Requested Action: Staff will prepare an ordinance and joint powers agreement for consideration of the Council. The intent is to bring these items to the July 28 Council meeting for consideration. In the mean time, signage will be placed at the boat landing requesting that a slow-no wake speed be maintained by boaters. TO: Buat and Water Safety Section of Natural Resources 500 Lafayette Road - Box 46 St. Paul, MN 55155-4046 (612) 296-3310 ~ Ju~ 15,1~7 Number of p_a~es Including This One , FACSIMILE TRANSMITTAL COVER SHEET Walt Fehst - Columbia Hts. Administrator FROM: P..o~t~t* Fax Note 7671 Date-~,~.~/~?ipages_l # of · ~ Phone~ ~ Phone*' ~0--~ ~/~ Klm Elverum Begat and Water Safety Coordinator Phone: (612) 296-0905 InterneS: I~'m. elverum~dnr, state, mn. us REMARKS/COMM E NTS: I--lAs we discussed []As you requested L-'iFor your information LtFor your approval [:3Please reply F-lNg reply necessary L-iReview and reply by telephone ~JTake appropriate action Walt: Here is the sarape ordinance for high water slow-no wake speed on lakes during yo,.a' high water problems. Both the City of Columbia Heights and the City of St. Anthony will need to pass the identical ordinance and obtain a joint powem a~eernent. The ordinances, joint powers agreement and the explanatory cover letter can be FA,Xed to us to save time if you would tike - normally on these emergency ordinances, we are able to turn them around in a matter of days. ! am turning this over to our boating staff ipe0ialist, Marceila Jerome - 297-5708, who handles water surfaoe use progrm~. Please feel free to con~ult Marcella on any questions you may have. I hope this will help solve you problem - we can also work with you on getting a permanent ordinance for high water conditions in effect if you would like. BOAT & WATER SAFELY FAX #(612) 296-0902 $~mq~l¢ Emer~enc~ H~& ~:w Ordinance flown, Oty orCoun:y & State) An Ordinance Regulating Operation o£Watercrafl on (body of wa:er) The. (mt thor#y) ordains: ....... (bo~, o/water) Speed Restdctlons. Pur_vozv. Pursuant to Minnc~t~ Statutes §§ $6B.201- 205, 459.20 and Minn. Rules Parts 6110.3000 - 6110.3700, it's the purpose ofthis ordinance to tcmporar~ regulate the operation and speed ofwatercraft onw (body of water) ~tflJ//P.t~ The following words and phr~es when used in this ordinance have the meaninSs set forth bcJow. (1) "Per~oro'" includcs an individual, pertnerc, hip, corporation or any body ofperwns whether incorporated or £om~ed into an as~x~iation or not. (2) "O/~erale" mcans to navisate or otherwise use a watercraft. (3) "Watercraft" has the moaning given in M.S. § 86B.005, Subd 8. (4) "Slow-no wake" means the operation ora watercraR at thc slowest po~ble ~peed neces~z~y to maintain steerage and in no case greater than 5 mph. (5)" "(body of water) rae, t~s (description} ~ No po'son shall operate a watercraft at greater than a slow-no wake ~p~,d on (body of water) until the level ha~ dropped to at Ioast fe~t as de~e, rn~neni at thc staff gauge located __ (description oflocatiotO, and remained at of below that level for at least three con.~cudv¢ days. ~ Authorized resource raar~m, emergency and eafor~t personnel, when acting in the perfom-,ance of their Clutic% shall be exempt from the proviaions ofthis ordinance. The (pick one depending on county or city ordinance,): I) Shcriffof (cvntnty) or :2) City of (cffy) of thc shall be respons~ole for informing the public, posting noti~ion at all public accesses and markin8 or buoying a~ea, af~'o~;ted by this ordinance ns necessary to ~ive reasonable notice of'the ~peed restriction of'this section. ~ Primary responn'bt'lity for enforcement of'lids ordinance shall rest with the County Sheriff's D~artrrent. This, however, shall no~ preclude e~or~ by other licensed peace o~ccrs. ~ Any penon who dali violat~ an)' ot'tl~ provisions ofthis ordinance dali be. ~uilty ora 8ECTIO]~ 2. EFn;C~rv'z DAT~ ANO 1T. RM. TI~s ordinance becomes effective upon its ~, publication and approval by the Conurdssione- of the Oepanment Of Natural Resources, for a period oftlme not to exceed days (ooenerally $0, 45 or f.~O). ]~ASS~.O by thc (authority,) tl~s , day of (mo~lth) , __ (rear) ATTF~T: (Title) Published in the (newspaper), (date) ,JUL '" 1997 SILVER I. AKE .RESIDENTS' ASSN. July 15, 1997 This is just a brief note regarding efforts to protect the shoreline during times of extremely high water as we are now experiencing. In the past, when water levels were high the City of Columbia Heights, which controls the public boat access, would lock the gates until levels fell. Residents would adhere to a "no wake" speed. The U. S. Dep~tment of Natural Resources is currently involved in Silver Lake management and will not allow public accesses to be locked. Public lake access has been ccmpared to public road access: everyone has an equal right to use it, restrictions have to be in place to control use. , The only recourse is for Col%~nbia Heights and St. Anthony to enact surface use restrictions (slow, no wake) during high water. As of June 15, the cities are pursuing this course of action and may be able to move quickly to put this restriction into place on an emergency basis very soon. A si~n would be posted at the boat landing stating the no wake restriction. Enforcement ccmes frcm citizens calling to report violations to the County Sheriff's office. As Silver Lake residents, we must continue to follow the informal "no wake" restrictions during high water to protect the shoreline frcm further erosion. We look forward to seeing you on July 20th at 5:30 for the picnic and at the meeting following. Please bring any concerns or suggestions at that time. sincerely, Bill and Kay McReavy 789-3211 Will and MaryMcQuarrie 788-1316 Jerry and Marge Cowan 788-5678 Phil Hoverston and Patti Sausser 789-9663 Public Works Department Worksession Discussion Item Worksession date: July 21, 1997 Prepared by: Mark A. Winson, Public Works Director/City Engineer Item: Authorization to purchase replacement dump truck off State contract Background: The 1997 Budget includes replacement of truck #2i, a 1981 Ford F700 dump truck. The budgeted amount is $97,000 with an additional $7,000 budgeted in 1998 for the plow and sander. Discussion: Boyer Ford holds the State contract for heavy trucks this year. They have informed us that Ford is moving their heavy truck manufacturing to a Canadian plant later this year and in order to get delivery this year, orders need to be in by the end of the day on July 16. Staff has reviewed the available models and specifications on the State contract and desires to purchase a LB000 cab and chassis offthe contract. This unit is the same as/_Jnit #99, which was delivered in 1996. This unit has performed very well for us. It is proposed to equip the new vehicle with a dump box, front ploxv, under body plow and sander. The estimate for the package with box, plo~vs and sander is $85,000. In order to reserve a truck, we forwarded a letter of intent to purchase to Boyer Ford on July 16. Requested Action: Staff proposes to have on the July 28 agenda an item authorizing the City to enter into an agreement to purchase the replacement for #21 off the State Contract. Department of Administration Materials Ivlanagement Division I t2 Adminis~'afion Building 50 Sherbume Aven,ae St. Paul, ~' 55155 Voke: 6 I2.296.2600 Fmx: 6 I2.~97.3996 ~Y: 612.282.5799 Materials Management Updates FLASH !!!!!!!!!!! July 14, 1997 WE HAVE JUST RECEIVED AN IMPORTANT NOTIFICATION FROM BOYER FORD. DUMP TRUCK UPDATE Boyer Ford has advised the state that all purchase orders for T-113(5) or T-114(5) must be received at their office no later than July 16, 1997, 6:00 P.M. Please contact Daryl Anderson or Bruce Rioux with any questions. Phone: 612-378-1851 Fax: 612-627-5550 T-113fS} Single Axle Ford L-8511 cab & chassis CA 84" - $45,800 T-114(5} Tandem Axle Ford LT-9511 cab & chassis CA 126" - $54~700 For verification or questions on prices and specifications contact Steve Burgstahler at (612)725-234i or David Strege at (612)725-2355. ] OyEn FORD TRUCKS R£OE. IVED 1 97 July 8, 1997 To: Whom It May Concern Re: MinnesOta Department of Transportation (MN DOT) Cooperative Purchasing Venture Program (CPV) Boyer Ford Trucks is pleased to announce that we have been selected as the "Vendor" for the 1998 Model Single and Tandem Axle Heavy Duty Snow Plow Trucks. (These chassis cabs may also be used for other applications as well). Copies of the proposal tabulations are attached for your review. You can "Tag-On" to the MN DOT contract (Solicitation #2006106) and eliminate the need for the bidding process. The best reason to act now is to take advantage of the state's volume buying power and to save a substantial amount of money versus a single bid situation. If you have any trades, we will be happy to offer a bid for them. Since Ford's 1998 production is already nearly sold-out, we would like to knoxv your buying intentions as soon as possible. We can deliver chassis cabs to your body company of choice during the fourth quarter of 1997. If you prefer first quarter of 1998 delivery, please let us know what month. For a cop>, of the specifications and options list, please call me today. I look forward to your call. Sincerely, yl Anderson Government Sales Heavy Duty Truck Sales & Sera,ice 2811 Broadway Street NE Minneapolis, Minnesota 55413 612~378- t 851 Fax 612-627-5550 Equal Opportunity / Affirmative Action Employer CITY OF COLUMBIA HEIGHTS TO: FROM: Honorable Mayor Sturdevant City Councilmembers Walt Fehst, City Manager Kenneth R. Anderson, Community Development Director DATE: July 16, 1997 RE: WORK SESSION OF JULY Zlv 1997. MEDTRONICv INC. EXPANSION PROJECT AGREEMENT FOR LOAN As part of the Medtronic, Inc. expansion project, the financing for the 60,000 sq. ft. addition to the Medtronic, Inc. Neurological Business Center included a $250,000 forgivable loan for machinery and equipment. Funds in the total amount of $500,000 are to be provided to the City of Columbia Heights from the Minnesota Department of Trade and Economic Development (DTED) Minnesota Investment Fund (MIF). The remaining $250,000 of MIF monies in the grant agreement will be used by the City as a grant to construct the relocation and extension of the sewer main, increased lift station capacity, sedimentation basin, landscaping, screening and berming, walking trail extension, and the engineering and inspection services related to 'these improvements. The City has previously entered into a grant agreement with DTED for this project. An additional agreement between Medtronic, Inc. as developer and the City of Columbia Heights as the lender is also necessary to outline the terms and conditions of the equipment loan. The attached Agreement for Loan of Minnesota Investment Fund ,(Agreement) constitutes the necessary agreement between the parties. The Agreement has been reviewed and revised by Medtronic's legal counsel, Dan Greensweig of Kennedy and Graven on behalf of the City, and the DTED. All parties are comfortable with the terms of the Agreement which has already been signed by Medtronics. A summary of specific information regarding the terms of the Agreement with Medtronics are as follows: Amount: $250,000 (Forgivable). Purpose: Purchase of equipment. Payment: City to disburse 56% of amount of equipment invoice(s) when submitted up to total amount. Term: Five (5) years (60 months). Commencing November 1, 1996. Interest Rate: Zero Percent (0%). Job Creation: At least sixty-five (65) new jobs created by November 1, ].998. At least a total of 156 new full-time equivalent, permanent jobs by November 1, 2000 (in addition to the existing jobs). Page 1 of 2 - Wages at least $10.00 per hour, excluding benefits. Collateral: First security interest in equipment up to $250,000. Forgiveness Date: If all terms and conditions are met, the loan will be forgivable on November 1, 2001. A full copy of the proposed Agreement with exhibits is included for your review. Please note that Exhibit A includes a summary of equipment purchases and Exhibit B is a copy of the security agreement with attachments. Staff recommends City Council approval of the Agreement at the July 28, 1997 regular meeting. The Community Development Director will be present to discuss the Agreement and answer questions at the work session of July 21, 1997. Attachments ken/memo Page 2 of 2 AGREEMENT FOR LOAN OF MINNESOTA INVESTMENT FUND TI-lIS AGREEMENT is made and entered into as the day of , 1997, by and between the City of Columbia Heights, ("the City") and Medtronic, Inc. ("the Developer"); WlTNESSETH: WHEREAS, the City has applied to the Minnesota Department of Trade and Economic Development for a Minnesota Investment Fund Grant (the "MIF Grant") pursuant to an application (the "Grant Application") and received preliminary approval for said grant; and WHEREAS, Grant Agreement, (#CDAP-95-0333-H-FY97) ("the Grant Agreement") between the Minnesota Department of Trade and Economic Development and the City has been executed and requires that the Developer provide sufficient financing to complete financing and agree to loan terms with the City regarding the MIF Grant; and WHEREAS, all parties to this agreement agree to incorporate into this agreement by reference said Grant Application and Grant Agreement as if fully set forth herein word for word; NOW THEREFORE, it is agreed by and between the parties hereto as follows: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "City" means the City of Columbia Heights. "Developer" means Medtronic, Inc., a Minnesota corporation. "Development C~ntraet" means the Contract for Private Development by and among the City, the Developer, and the Housing and Redevelopment Authority of Columbia Heights, Minnesota dated , 1996. "Development Property" means the real property, described as Tract B, Registered Land Survey No. 63, Anoka County, Minnesota. "Equipment" means the machinery and equipment purchased by the Developer with the Loan and described at Exhibit A hereto. "Forgiveness Date" means November 1, 2001. "Grant Agreement" means Minnesota Department of Trade and Economic Development Grant Agreement # CDAP-95-0333-H-FY497. "Grantor Agency" means Minnesota Department of Trade and Economic Development. "Leveraged Funds" means the funds provided by or for the account of the Developer pursuant to Section 2.1. "Loan" means the funds loaned by the City to the Developer pursuant to this Agreement. "MIF" means Minnesota Investment Fund. "Project" means the expansion of Medtronic, Inc. with the assistance of MIF funds for the purchase of new machinery and equipment. "State" means the State of Minnesota. DJG118433 CL160-79 2 ARTICLE 2 Financing for Projects Section 2.1. Project Financing. The Developer shall secure from the City a commitment for funds necessary to complete the Project, in a form and under conditions satisfactory to both parties. Section 2.2. Developer's Equity and Other Financine. The Developer shall commit not less than $6,952,977 of equity to be used for the completion of the Project. In addition, at least $11,000 shall be committed to the Project by the City, pursuant to the terms and conditions of the Development Contract Section 2.3. MIF Loan/Grant. The $500,000 Minnesota Investment Fund Grant award will be used as follows: The City will make a loan of $250,000 to the Developer for the Equipment; the remaining $250,000 wSll be a grant to the City for the construction and installation of the extension of sewer main and of increased li~t station capacity, sedimentation basin, landscaping, screening and berming, walking trail extension, and engineering design and inspection related thereto. ARTICLE 3 MIF Loan Terms and Conditions Section 3.1. Basic Loan Terms. The principle amount of the Loan shall not exceed $250,000. The loan shall not bear interest. The Loan terms may not be modified without prior written approval from the Grantor Agency. The full Loan amount shall be used for the purchase of the Equipment. The term of the Loan shall be as set forth in Section 5.4 of this Agreement. Section 3.2. Prepayment. Prepayment of the Loan may occur at any time during the Loan without penalty. Section 3.3. Assignment. If, prior to the Forgiveness Date the Developer sells, conveys, transfers, further mortgages or encumbers or disposes of the Development Property, or any part thereof, or any interest therein, except to a wholly-owned subsidiary of Developer upon the prior written approval of the Grantor Agency, or agrees so to do, the Developer shall immediately repay all mounts then outstanding on the Loan. This shall be in addition to any other remedies at law or equity available to the City. Section 3.4. Termination. This agreement shall automatically terminate without any notice to Developer (1) if the Loan proceeds have not been disbursed to the Developer prior to November 1, 1998; or (2) ifa petition is filed by or against the Developer under the U.S. Bankruptcy Code, or if voluntary, such a petition is not dismissed within sixty (60) business days following such petition. DJG118433 3 -CL160-79 Section 3.5. Promissow Note. The Developer shall execute a promissory note in substantially the form set forth at Exhibit C. ARTICLE 4 Default and Collateral Section 4.1. Default. The Developer shall be in default under this agreement upon the happening of any of the following events: (a) nonpayment, when due, of any amount payable on the Loan or failure to observe or perform any term of this Agreement; provided such nonpayment is not remedied within ten (10) business days after written notice thereof by either the Developer or the City; (b) if Developer is in breach of any material respect of any obligation or agreement of the Developer under this agreement, provided Developer remains in breach in any material respect for thirty (30) business days after written notice thereof to the Developer by the City; provided, however, that if such breach shall reasonably be incapable of being cured within such thirty (30) business days after notice, and if Developer commences and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long as Developer is proceeding to cure such breach; (c) if any material covenant, warranty or representation of Developer shall prove to be untrue in any material respect, provided such covenant, warranty or representation of Developer remains untrue in any material respect for thirty (30) business days after written notice thereof to the Developer by the City; provided, however, that if such untruth shall reasonably be incapable of being corrected within such thirty. (30) business days after notice, and if Developer commences and diligently prosecutes the appropriate steps to correct such untruth, no default shall exist so long as Developer is so proceeding to correct such untruth; (d) if the Developer becomes insolvent or generally unable to pay debts as they mature or makes an assignment for the benefit of creditors, provided such insolvency or general inability to pay is not remedied within sixty (60) business days after written notice thereof by either Developer or the City; (e) entry of a final judgment against Developer where such judgment the City reasonably deems will have a material, adverse impact on Developer's ability to comply with its obligations under this agreement; (f) transfer by the Developer, of any part of the Equipment to any entity other than a v~holly-owned subsidiary of Developer, proVided such transfer is not approved in writing by the City, which approval will not be unreasonably withheld. (g) merger or consolidation where such merger or consolidation is not approved in writing by the City, which approval will not be unreasonably withheld; or DJGl18433 CL160-79 4 (h) loss, theft, substantial damage, destruction, or encumbrance of any of the Equipment, provided that such is not remedied within sixty (60) business days after written notice thereof by either Developer or the City (including, without limitation, by a pledge of insurance proceeds or by substitute collateral satisfactory to the City); Section 4.2. Remedies Upon Default. (a) In the event of a default and the failure to cure it in the time allotted therefor or to commence and diligently proceed to cure such default if reasonably incapable of being cured within the time allotted therefor), the City shall have the fight as its option and without demand or notice, to declare all or any part of the Loan immediately due and payable, and in addition to the rights and remedies granted hereby, the City shall have all of the rights and remedies under the Uniform Commercial Code or any applicable law. (b) Developer agrees in the event of a default and the failure to cure it in the time allotted therefor, to make the Equipment available to the City and the Development Property. In the event of any lawsuit under this agreement, reasonable attorney's fees and costs will be awarded to the prevailing party. If any notice of sale, disposition or other intended action by the City is required by law to be given to Developer, such notice shall be deemed reasonably and properly given if mailed to Developer at the Development Property or at such other address of Developer as may be shown on the City's records, at least fifteen (15) days before such sale, disposition or other intended action. Waiver of and default hereunder by the City shall not be a waiver of any other default, or of the same default, on a later occasion. No delays or failure by the City to exercise any fight or remedy shall be a waiver of such right or remedy and no single or partial exercise by the City of may right or remedy shall preclude other or further exercise thereof of the exercise of any other right or remedy at any other time. Section 4.3. Collateral. The Developer shall grant to the City a first security interest in the Equipment up to an amount of $250,000, pursuant to a security agreement in substantially the form set forth at Ex. hibit B. ARTICLE 5 Loan Disbursement Provisions Section 5.1. Payment Requisition Documentation and Format. Loan disbursements shall be for purchase of the Equipment and shall not exceed $250,000. The Loan shall be disbursed to the Developer only after the City has received from the Developer an invoice or invoices for Equipment purchase costs. Upon receipt of such invoice or invoices, the City will disburse an amount equal to 56% of amount of th.e invoice or invoices, up to a total disbursement amount of $250,000. Section 5.2. Provision for Evidentiary Materials. No disbursements of Loan funds shall be made until all evidentiary materials required by the Grantor Agency have been submitted and approved by the Grantor Agency. DJGli8433 5 CL160-79 Section 5.3. Project Time Frame. The time frame outlined in the Grant Application pertaining to the Project shall be met by the Developer. Section 5.4. Loan Terms. The term of the Loan shall be five (5) years, commencing as of November 1, 1996. The interest rate shall be -0-% per annum for the 60 months of the Loan period. Section 5.5. ,Loan Repayments Schedule. The Loan shall be forgiven if the Developer complies with the terms of Section 7.1 of this Agreement and all other terms and conditions of this Agreement. Section 5.6. Leveraged Funds. The Leveraged Funds described in the Grant Application must be used for the same purposes and under the same terms, rates, and conditions as specified therein unless prior written consent is received from the Grantor Agency. ARTICLE 6 Provision of Evidentiarv Material Requirement Section 6.1. Provision of Evidentiarv Materials. The Developer shall agree to provide to the City all evidentiary materials according to the format and timetable cited in the Grant Agreement. The City will forward said materials to the Grantor Agency and assist in expediting reviews leading to a release of the Loan. Section 6.2. Documentation of Use of Funds. The Developer must provide the City with necessary documentation that the Loan proceeds and leveraged funds have been used for the items and purposes stated in the Grant Application, prior to submitting the final progress report and requesting grant closeout from the Grantor Agency. Section 6.3. Equipment Cost. The Developer must document that the EquiPment is of reasonable cost. .aRTICLE 7 Provision of New Permanent Jobs Section 7.1. Wage and Job Covenants. (a) On the Forgiveness Date, the Developer shall be maintaining at the Development Property at least 156 new full-time equivalent, permanent jobs (the "New Jobs"), at wages of at least $10.00 per hour, excluding benefits. At least sixty-five New Jobs shall be created by November 1, 1998. The remaining New Jobs shall be created by November 1, 2000. These New Jobs shall be in addition to any jobs that existed at the Development Property as of November 1, 1996. DJGl!8433 CL160-79 6 (b) If the Developer fails to comply with any of the terms of Section 7.1(a), the Developer shall immediately repay to the City upon written demand from the City the full amount of the Loan. The Developer specifically acknowledges that a failure to comply in ever~ regard with the provisions of this Section 7.1 shall constitute a default hereunder, and that no opportunity to cure shall be allowed. Section 7.2. Employment Documentation. The Developer shall complete and provide to the City notification of employment semi-annually of hiring each new employee. This notification requirement shall terminate on November 1, 2000, provided the employment objective set forth in Section 7.1 has been met. Section 7.3. Job Ci'eation Documentation. Until the Forgiveness Date, the Developer shall submit to the City a written report by April 1 of each year describing employment and wages in sufficient detail to enable the City to determine compliance with this Article 7. This information shall be provided by the Developer and must include: (a) jobs created; (b) job title per job, (c) date employee(s) hired; and (d) wages and benefits paid. Section 7.4. First Source Employment Referral Aereement. The Developer shall list any vacant or new positions with the jobs services of the Commissioner of Job Services or a local service unit operated by a county or counties operating under a joint powers agreement, one or more cities of the first class operating under a joint powers agreement, or a city of the first class. ARTICLE 8 Provision of Monitoring Information Related To Proiect Progress Section 8.1. Provision of Progress Information. The Developer shall provide to the City information for incorporation into progress reports, as required by the Grantor Agency and as needed by the City, to monitor project implementation for compliance with grantor and local guidelines. ARTICLE 9 Nondiscrimination Section 9A. NondiscriminatiOn. The provisions of Minnesota Statutes, Section 181.59, which relate to civil rights and discrimination, shall be considered a pa~ of this Agreement as though wholly set forth herein. DJGi18433 ARTICLE 10 Developer's Acknowledgments Representation, and warrants Section 10.1. Acknowledaments. The Developer acknowledges that the City, in order to obtain funds for part of the City's activities in connection with the Project, has applied for the MIF Grant to the Commissioner of the Minnesota Department of Trade and Economic Development (the "Commissioner") under the Minnesota Investment Fund Program, Business and Community Development Division, and that the City has entered into the Grant Agreement with the Commissioner setting forth the terms, conditions, and requirements as to the Grant. The Developer further acknowledges that the Developer has made certain representations and statements as to those activities of the Project to be carried out and completed by the Developer which were contained in and made part of the Grant Application and that the Developer is designated and identified under the Grant Agreement. A copy of the Grant Agreement shall be on file in the office of the City. In the event any provision of this Agreement relating to the Developer's obligations hereunder shall be inconsistent with the provisions of the Grant Agreement relating to the Developer's activities thereunder, the provisions of the Grant Agreement shall prevail. The Developer acknowledges that nothing contained in the Grant Agreement or this Agreement, nor any act of the Commissioner or the City shall be deemed or construed to create any relationship or third-party beneficiary, principal and agent, limited or general partnership, or joint venture, or of any association or relationship involving the Commissioner. Section 10.2. Representations and Warranties. Developer xvarrants and represents, in connection xvith the Grant and for the benefit of the Commissioner and the City, that: (a) Representations, statements, and other matters provided by the Developer relating to those activities of the Project to be completed by the Developer, which were contained in the Grant Application, were true and complete in all material respects as of the date of submission to the City and that such representations, statements, and other matters are true as of i:he date of this Agreement and that there are no adverse material changes in the financial condition of the business. (b) To the best of the Developer's knowledge, no member, officer, of employee of the City, or its officers, employees, designees, or agents, no consultant, member of the governing body of the City, and no other public official of the City, who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the Project or in any activity, or benefit therefrom, which is part of this Project. (c) The Developer acknowledges that the Commissioner, in selecting the City as recipient of the Grant, relied in material part upon the assured completion of the Project to be DJGl18433 CL160-79 8 carried out by the Developer, and the Developer assures the City that said Project will be carried out by the Developer. (d) The Developer warrants that to the best of its knowledge, it has obtained all federal, state, and local governmental approvals, reviews, and permits required by law to be obtained in connection with the Project. (e) The Developer warrants that it shall keep and maintain books, records, and other documents relating directly to the leveraged funds and that any duly authorized representative of the Commissioner shall, at all reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of the Developer until the completion of all closeout procedures respecting the MIF Grant and the final settlement and conclusion of all issues arising out of the grant. (f) The Developer warrants that no transfer of Loan proceeds by the City to the Developer shall be or be deemed an assignment of the Loan proceeds and the Developer shall neither succeed to any rights, benefits, or advantages of the City under the Grant Agreement, nor attain any fight, privileges, authorities, or interest in or under the Grant Agreement. (g) The Developer warrants that it has fully complied with all applicable state and federal laws pertaining to its business and will continue said compliance throughout the terms of this Agreement. If at any time notice of noncompliance is received by the Developer, the Developer agrees to take any necessary action to comply with the state or federal law in question. ARTICLE 11 Other Special Conditions Section 11.1. Antitrust. Developer hereby ,assigns to the State of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this contract resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the State of Minnesota. Section 11.2. Workers Compensation Insurance. Developer has obtained worker's compensation insurance as required by Minnesota Statutes, Section 176.181, subd. 2. Developer's workers' compensation insurance information is as follows: (a) Company Name: (b) Policy Number: (c) Local Agent: Section 11.3. Business with the State of Minnesota/State Tax Laws. Notice to Developer. You are required by Minnesota Statutes, Section 2790.66, to provide your Minnesota tax identification number if you do business with the State of Minnesota. This information may be used in the DJGI18433 CL160-79 9 enforcement of Federal and State tax laws. Supplying these numbers could result in an action to require you to file State tax returns and pay delinquent State tax liabilities. This contract will not be approved unless these numbers are provided. These numbers will be available to Federal and State tax authorities and State personnel involved in the payment of State obligations. Minnesota Tax ID: Federal Employer ID: Section 11.4. Grant Closeout. The Developer shall, prior to grant closeout from the Grantor Agency, provide the City with all documentation necessary to demonstrate that the Loan has been used for the items and purposes set forth in the Grant Application, such documentation to be in substantially the form set forth at Exhibit D, subject to modification by the Grantor Agency. Section 11.5. Reviexv of Documents. The City's legal counsel and the Grantor Agency must review and approve this Agreement, the promissory note attached hereto as Exhibit C, and the security agreement at Exhibit B, before disbursement to the Developer of any part of the Loan. Section 11.6. Effect on Other Agreements. Nothing in this Agreement shall be construed to modify any term of the Development Contract or any other agreement to which the City and the Developer are parties. Section 11.7. Release and Indemnification Covenants. Except for any breach of the representations and warranties of the City or the negligence or other wrongful act or omission of the following named parties, the Developer agrees to protect and defend the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and funaher agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the acquisition, construction, installation, ownership, maintenance, and operation of the Equipment. Section 11.8. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Developer and the City and approved by the Grantor Agency. Section 11.9. Notices and Demands. Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally: (a) as to the City: City of Columbia Heights 590 - 40th Avenue N.E. Columbia Heights, MN 55421 ATTN: City Manager DJG118433 w.,~o-79 10 (b) as to the Developer: Medtronic, Inc. 7000 Central Avenue NE Legal Department MS300 Minneapolis, MN 55432 ATTN: Cindy Amdt or at such other address with respect to any party as that party may, from time to time, designate in writing and forward to the others as provided in this Section 11.9. Section 11.10. Conflict of Interests; Representatives Not Individually Liable. No officer or employee of the City may acquire any financial interest, direct or indirect, in this Agreement, the Equipment or in any contract related to the Equipment. No officer or employee of the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or on any obligation or term of this Agreement. Section 11.11. Binding Effect. The covenants and agreements in this Agreement shall bind and be to the benefit of the heirs, executors, administrators, successors, and assigns of the parties to this Agreement. This Agreement shall be construed in accordance with the laws of Minnesota. CL160o79 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf as of the date first above written. Subscribed and sworn to before me this ~ day of , 1997 Notary Public CITY OF COLUMBIA HEIGHTS By Its By Its Subscribed and sworn to before me this ?.e,,',. day of ~ ."~. ~ c/., , 1997 :, ,,f~- " Notary Public MEDTRONIC, INC. By Its By Its DJG118433 c~o-79 12 SUMMARY OF EQUIPMENT PURCHASES Actual Purchases Thru April 30, 1997 Projected Purchases May 1, 1997 Thru Apdl 30, 1998 Projected Purchases May 1, 1998 Thru October 31, 1998 TOTAL $ 447,827 $ 780,425 ? ? ? $ 1,228,252 CAPITAL EQUIPMENT PURCHASED FOR NEURO PRODUCTION 6/27/97 STATE LOAN GRANT FY 97 (November 1996 through Apdl 1997) h:loangcap.xls APPROVAL ITEM PRICE EA TOTAL TOTAL DATE Before TAX With TAX ITEMS APPROVED BEFORE NOV. 1996 BUT RECEIVED AND PAID FOR AFTER NOV. 1996 1 9/9/96 Simco Tray Cleaning System (installed in new clean room) 2 Simco 24" dual Neutro-Vac tray cleaning hoods 4921 $ 9,842 $ 10,482 2 Simco#DC1200 3bp 1200 CFM hepa filters 10021 $ 20,042 $ 21,345 10/30/96 Computer for Stim Development Compaq Deskpro 4000 Model 5166/1620, CPQ-247200-002 $ 2,100 $ 2,237 Audio CPQ 185430-001 $ 115 $ 122 16 MB Mem Exp CPQ-243012-002 $ 335 $ 357 Nec XV 17+ MultiSync Monitor NEC-JC-1745VMA-1 $ 798 $ 850 10/24/96 Met One A2408 Particle counter with pdnter (clean room) $ 5,890 $ 6,273 6/5/96 Production Mold for Burr Cap PN 104596-001 $ 8,425 $ 8,973 (completed in January 1997) - 8/6/96 Lead Laser Welder System for new clean room Laser, fiber, and focusing head $ 43,907 Enclosure $ 4,619 Gantry Mounting System $ 2,100 Motion system $ 8,101 Camera sysstem $ 2,789 Lead tooling $ 4,974 Work tables $ 1,724 Nikon SMZ-IB Stereo Microscope & mount $ 2,257 Energy meter $ 3,821 9/11/96 ;Four cavity mold for 7495 & 7496 extensions sleeves & boot end $ 16,800 (not yet complete as of 6/23/97) 9/17/96 Two air press crimp fixtures for 7495 & 7498 extensions $ 6,766 Page 1 EXHIBIT A ITEMS APPROVED NOV. 1996 THROUGH APRIL 1997 - 11/20/98 Computer equipment for Mfg secretary $ 2,572 $ 2,739 Compaq Deskpro 200 Model 5133/1200, network card, memory expansion, monitor - 11/20/96 Computer equipment for Mfg engineer CompaqLTE 5280 5/120, network card, $ 6,420 $ 6,837 memory expansion, keyboard, mouse, monitor, carrying case 11/22/96 Perc Extension Mold enhancement $ 6,650 $ 7,082 Housing force and cavity block 11/13/96 New Mold for Neuro Stim $ 7,225 $ 7,695 117299-004 permanent four-cavity mold 11/21/96 Air powered wire cutter for 7495 connector assemblies Simonds A-3 blank jaw assy #129432 $ 136 $ 418 $ 445 Simonds SP-002-F activator $ 225 $ 225 $ 240 Simonds A-201-2 mounting base $ 57 $ 57 $ 61 Tax $ 27 $ 27 $ 29 Foot switch and maintenance support $ 400 $ 400 $ 426 40 tool room hours T60163 $ 2,000 $ 2,000 $ 2,000 4/18/97 16 Chairs for Leads Mfg area Gibo-Kodama C3000ET-V523-H-01 $ 238 $ 1,427 $ 1,520 4/18/97 lAC Tables for Leads Mfg area $ 6,138 $ 6,537 2 2000084 star, er units 2 2001084 add on units 4 1020833 seal worksurfaces 4 2012303 light fixtures 4 2012013 open wire shelves 4 2012153 footrests 8 2012157 footrest pans 4 292299 electrical channels 3/17/97 Package pdnting system for Stim Mfg S 6,607 $ 7,037 QMS 2425EX Print System printer & controller QMS 2425 2000-sheet input paper deck 1//29/97 Keithley 7011-S Multiplexer Card for R&D lab $ 1,095 $ 1,166 1/29/97 lET Programmable Resistance Substituter $ 2,082 $ 2,217 1/20/97 DCl Tray Redesign & tooling #119959-001 Innertray- one up tooling $ 2,000 $ 2,130 #119964-001 Outertray - one up tooling $ 2,000 $ 2,130 11/23/96 Eight-cavity mold for Part 211987 for Dual Channel Itrel $ 8,000 $ 8,520 1/9197 New computer for Stim Product Development Compaq Deskpro Model 5166 $ 1,773 $ 1,888 16 Mg RAM expansion $ 335 $ 357 CD-ROM drive $ 179 $ 191 Business audio $ 115 $ 122 ViewSonic 21" Model P810 color monitor $ 1,785 $ 1,901 Page 2 EXHZBIT A 3/17/97 Production Mold for 2x4 lead paddle $ 9,225 $ 9.825 12/23/96 Crimp assembly fixture for 3998 2x4 surgical lead $ 2,400 $ 2,556 11/13/96 Electrode stamping die with press for 2x~t surgical lead $ 7.800 $ 8,30¢ 11/29/96 FIowhood to monitor clean room hepa filters ADM Model 860 electronic flowhood $ 2,695 $ 2,870 FIowhood kit 8405 $ 1,600 $ 1,704 Dec-96 Dionized Water System for manufacturing $ 122.950 Dec-96i~Vet and Dry Vacuum System $ 34.650 Dec-961 Compressed Air System $ 53,200 SUBTOTAL THUR 04/30/97 $ 447,827 PROJECTED PURCHASES MAY-97 THRU APRIL-98 Cost Center 43510 2 New PC's $ 6,400 Cost Center 43562 Itrel 3 SA Tray Tooling $ 5,000 Itrel 3 SA Seal Tooling $ 6,000 - PC - Electrical Technician $ 3,200 - PC - Contract Engineer $ 3,200 PC - Contract Technician $ 3,200 3 PC Monitors $ 5.800 2 PC's for Lab Tools $ 6,400 - Replacement Computer (G. Hrdicka) $ 8,400 Cost Center 43564 - N4011 TBB In-Line Surgical $ 7,500 N4011 TBB In-Line Surgical $ 2,500 - Computer $ 3,200 Monitor $ 1,800 - Toolmaker Scope $ 10,000 - Matedal Cage $ 1,300 - Strain Gage Amplifier (Vishay) $ 5,000 - Instron $ 15,225 Cost Center 43611 - Incorporate Lab Space (Stim Portion) $ 22,500 - PC's for New Hires (Stim Hal0 $ 5,000 - LeCroy Oscilliscope $ 6,000 - Power Supplies $ 2,000 Page 3 EXHIBIT A - Textronix Multimeter $ 1,000 - Lab Tables (Stim Hal0 $ 5,000 Cost Center 43616 - Sterile Product Tooling, $ 11,000 - External Tooling $ 2,000 - Kits Tooling $ 4,000 - Computer $ 8,400 Cost Center 43682 - Lab Bench $ 1,400 - Microscope & Monitor $ 5,000 Docking Station $ 4,000 - Micrometer $ 1,000 Cost Center 43686 - Lifelines Team $ 30,000 - Energizers Team $ 30,000 - Receivers Team $ 30,000 - Leads Team $ 30,000 - Next Team $ 30,000 - GeoMED Team $ 30,000 Final Pack Team $ 30,000 Sterile Pack Team $ 30,000 -Percs Plus Team $ 30,000 - Material Handler/Parts Cleaning Team $ 30,000 Laser Welder $ 100,000 - SADAR Equipment $ 120,000 - Training Equipment $ 60,000 Cost Center 43687 - New Computers (4) $ 28,000 SUBTOTAL MAY 1, 1997 THRU APRIL 30, 1998 $ 780,425 PROJECTED PURCHASES MAY-98 THRU NOV-98 ? ? ? TOTAL, $ 1,228,252 h:loangcap.xls mi Page 4 EXHIBIT B SECURYI.~ AGREEMENT This security agreement (the "Sectwity Agreement") is made and given as of this ~ day of , 1997, by MEDTRON'IC, INC., a Minnesota corporation with its principal place of business at 7000 Central Avenue NE, Minneapolis, MN 55432 (the "Borrower") in favor of THE CITY OF COLUMBIA HEIGHTS, a municipal corporation under the laws of Minnesota, with its offices at 590 NE 40th Avenue, Columbia Heights, MN 55421 and its endorsees, successors and assigns (the "Lender"). RECITALS A. Lender and Borrower have emered into a certain Loan Agreement, dated as of the date hereof (the "Loan Agreement"), pursuant to which Lender will loan to Borrower up to $250,000 (the "Loan") to finance the acquisition of the equipment (the "Equipment") described on the Exhibit B attached hereto, such Equipment to be located at the property described on the Exhibit A attached hereto (the "Property"). Borrower's payment obligations under the Loan Agreement will be evidenced by a promissory note (the "Note") dated as of the date hereof. B. As security for the repayment of the Loan, Lender has required that Borrower execute and deliver to Lender this Security Agreement granting a security interest to Lender in the Equipment. C. The Note, this Security Agreement, and any other instruments or documents given as security for the Loan are herein referred to as the "Loan Documents". NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by Borrower, it is agreed as follows: 1. Grant of Security Interest. As security for the payment and performance of the Note and ail other liabilities, obligations and indebtedness of Borrower to Lender due or to become due, direct or indirect, absolute or contingent, joint or several, howsoever created, arising or evidenced, now or hereafter at any time created, arising or evidenced under or pursuant to the Note or this Agreement or any other document or instrument evidencing or securing the Note, Borrower does hereby transfer, assign and grant to Lender a security interest in all of Borrower's right, title, and interest in and to the following (hereinafter collectively referred to as the "Collateral"), whether now owned or hereafter acquired or arising: (a) The Equipment; and (b) Any and all proceeds (as def'med by Minnesota Statutes, Section 336.9- 306(1) of the foregoing. DJG1!8433 c~60-79 B-1 2. l~orrower's Representations, Warranties and Covenants. Borrower represents, warrants, covenants and agrees: (a) Organization. Borrower is a corporation, validly existing and in good .standing under the laws of the State of Minnesota, and Borrower has full power and authority to execute, deliver, and perform the Loan Documents, and to own its property and conduct its business as presently conducted and as proposed to be conducted. (b) Authorization. The execution, delivery and performance of this Security Agreement has been duly authorized by all necessary action and will not: (i) require any consent or approval of any entity which has not been obtained; or (ii) violate any provision of any indenture, contract, agreement or instrument to which Borrower is a party or by which it is bound. (c) Performance by Borrower. Unless Borrower obtains Lender's written consent to the contrary, Borrower shall not: (i) terminate its interest in any of the Collateral; or (ii) sell, transfer, or assign, or offer to sell, transfer or assign all or any part of the Collateral or permit all or any part of the Collateral to be sold, transferred or assigned; or (iii) Property. remove or consent to the removal of any of the Equipment from the This Section 2(c) shall not prevent Borrower from taking any action set forth in this Section 2(c) with respect to Equipment which Borrower reasonably concludes has no further use to Borrower for the purposes for which it was designed. (d) Title to Collateral. Borrower shall keep good marketable title to all of the Collateral, and none of the Collateral is subject to any lien or security interest except for the security interest created by this Security Agreement and other security interests consented to in writing by Lender. Borrower has not granted, and will not grant or permit to exist, any lien or security interests in all or a portion of the Collateral other than the liens in favor of Lender and other liens consented to in writing by Lender. Borrower shall defend the Collateral against all claims and demands of all and any other persons at any time claiming any interest therein adverse to Lender. (e) Actions and Proceedings. There are no actions at law, suits in equity or by other proceedings before any governmental agency, commission, bureau, tribunal, or other arbitration proceedings against or affecting Borrower that if adversely determined would adversely affect Borrower's interest in the Collateral or would adversely affect the rights DJG118433 ~o-~ B-2 of Borrower to pledge and assign all or a part of the Collateral or the rights and security afforded Lender hereunder. (f) Insurance. Borrower agrees it will keep the Equipment insured at all times against loss by fire and/or other hazards concerning which, in the judgment of Lender, insurance protection is reasonfibly necessary and in amounts sufficient to protect against loss or damage of the Equipment. Such policy or policies will contain a loss payable clause in favor of Lender or its successors or assigns, in form satisfactory to Lender, provided, however, that Borrower may, at its reasonable discretion, self-insure the Equipment. (g) No Fixture. If any of the Collateral is or becomes a fixture, Borrower agrees to furnish Lender, at Lender's request, with a statement or statements signed by all persons who have or claim an interest in the real estate concerned, which statements shall provide that the signer consents to the security interest created hereby and disclaims any interest in the Collateral as fixtures. (h) Understandings Re~arding Collateral. Borrower acknowledges that the Collateral is of the design, capacity, and manufacture specified for and by Borrower, and that Borrower is satisfied that the same is suitable for its intended purposes. Borrower further acknowledges and agrees that Lender has not made, and does not make, any representation, warranty, or covenant with respect to merchantability, fitness for any purpose, durability, patent, copyright or trademark infringement, suitability, or capability of any item of Collateral in any respect or in connection with any other purpose or use of Borrower, or any other representation, warranty, or covenant of any kind or character expressed or implied with respect thereto. Borrower accordingly agrees not to assert any claim whatsoever against Lender based thereon. Borrower further agrees, regardless of cause, not to assert any claim whatsoever against Lender for loss of anticipatory profits or consequential damages. (i) Use of Collateral. The Collateral will be used for its intended business purpose and will at all times be located at the Property. (j) Condition of Collateral. Borrower will keep the Collateral in good condition and repair, reasonable wear and tear excepted, and will permit Lender to enter upon the Minimum Improvements at reasonable times for the purpose of examining the Collateral. (k) Costs of Collection. In the event of any action or proceeding to collect or realize upon the Collateral or to enforce any of Lender's rights hereunder, Borrower shall pay: (i) all of Lender's attorneys' fees and legal expenses, with interest thereon, incurred by Lender; (ii) all taxes, levies, insurance expenses, and costs of repairs to, or maintenance of, the Collateral; and CL160-79 (iii) ail costs of Lender incurred in taking possession of, disposing of or preserving the Collateral after any Event of Default (defined below). 3. ,Event of Default. Upon the event of a default under the Loan Agreement, Lender may exercise any remedy available to it under the terms of the Loan Agreement. 4. Further Assurances. Borrower shall execute and deliver to Lender, promptly and at Borrower's expense, Uniform Commercial Code ("Code") financing statements and evidence of tax filings and payments, including without limitation a UCC-1 Financing Statement in substantially the form set forth at Exhibit C. Borrower agrees that Lender is authorized, at its option, to file a carbon, photographic or other reproduction of this Agreement as a financing statement and shall be sufficient as a financing statement under the Code and to file financing statements or amendments thereto without the signature of Borrower and, if a signature is required by law, then Borrower appoints Lender as Borrower's attorney-in-fact to execute any such financing statements. 5. Cumulative Remedies. All of Lender's rights and remedies herein are cumulative and in addition to any rights or remedies available at law or in equity including the Code, and may be exercised concurrently or separately. Borrower shall pay all costs, expenses, losses, damages and legal costs (including attorneys' fees) incurred by Lender as a result of enforcing any terms or conditions of this Agreement. 6. No Liability Imposed on Lender. Lender shall not be obligated to perform or discharge, nor does it hereby undertake to perform or discharge any obligation, duty, or liability, nor shall this Agreement operate to place responsibility for the control, care, or management of the Equipment upon Lender. 7. Indemnification. Borrower shall and does hereby agree to indemnify against and to hold Lender harmless of and from any and all liability, loss, or damage which it may or might incur under or by reason of this Agreement, and of and from any and all claims and demands whatsoever which may be asserted against it by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants or agreements contained herein. Should Lender incur any such liability or be required to defend against any such claims or demands, or should a judgment be entered against Lender, the amount thereof, including costs, expenses, and reasonable attorneys' fees, shall bear interest thereon at the rate then in effect on the Note, shall be secured hereby, shall be added to the Loan, and Borrower shall reimburse Lender for the same immediately upon demand, and upon the failure of Borrower so to do, Lender may declare the Loan immediately due and payable. 8. Expenses of Lender. All expenses in protecting, storing, warehousing, insuring, handling and shipping of the Collateral, all costs of keeping the Collateral free of liens, encumbrances and security interests (other than the security interest created by this Agreement) and the removing of the same and all excise, property, sales and use taxes imposed by state, federal, or local authority on any of the Collateral or with respect to the saie thereof, shall be borne and paid for by Borrower and if Borrower fails to promptly pay any amounts thereof when due, Lender may, at its option, but shail not be required to, pay the same, and upon such payment DJG118433 c~o-~ B-4 the same shall constitute obligations and shall bear interest at the rate specified in the Note and shall be secured by the security interests gl'anted hereunder. 9. Continuing Rights. The rights and powers of Lender hereunder shall continue and remain in full force effect until the Loan is paid in full. 10. Books and Records. Borrower will permit Lender and its representatives to examine Borrower's books and records (including data processing records and systems) with respect to the Collateral and make copies thereof at any time and from time to time, and Borrower will furnish such information reports to Lender and its representatives regarding the Collateral as Lender and its representatives may from time to time request. Lender shall have the authority, at any time, to require Borrower to place upon Borrower's books and records relating to the Collateral and other fights to payment covered by the security interest created in this Agreement a notation stating that any such Collateral and other rights of payment are subject to a security interest in favor of Lender. 11. Successors and Assigns. This Agreement and each and every covenant, agreement, and provision hereof shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. 12. Governing Law. This Agreement is executed pursuant to and shall be governed by the laws of the State of Minnesota. 13. Severabilitv. It is the intent of this Agreement to confer to Lender the fights and benefits hereunder to the full extent allowable by law including all fights available under the Code. The unenforceability or invalidity of any provisions hereof shall not render any other provision or provisions herein contained unenforceable or invalid. Any provisions found to be unenforceable shall be severable from this Agreement. 14. Miscellaneous. (a) Waiver. The performance or observance of any promise or condition set forth in this Agreement may be waived only in writing. No delay in the exercise of any power, fight or remedy operates as a waiver thereof, nor shall any single or partial exercise of any other power, fight or remedy. (b) Assignment. This Agreement shall be binding upon Borrower and its successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Ail fights and powers specifically conferred upon Lender may be transferred or delegated by Lender to any of its successors and assigns.' (c) Other Matters. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect, and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. All representations and warranties contained in this Agreement or in any other agreement between Borrower and Lender shall survive the CL160-79 execution, delivery and performance of this Agreement and the creation and payment of any indebtedness to Lender. Borrower waives notice of the acceptance of this Agreement by Lender. (d) Notice. All notices required hereunder shall be given by depositing in the UJS. mail, postage prepaid, certified mail, remm receipt requested, to the following addresses (or such other addresses as either party may notify the other): To Borrower: Medtronic, Inc. 7000 Central Avenue NE Legal Department MS300 Minneapolis, MN 55432 ATTN: Cindy Amdt To Lender: City of Columbia Heights 590 NE 40th Avenue Columbia Heights, MN 55421 ATTN: City Manager DJG118433 ~o-79 B-6 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf as of the date f~rst above written. Subscribed and sworn to before me this ~ day of , 1997 Notary Public CITY OF COLUMBIA HEIGHTS By Its By Its Subscribed and sworn to before me this ~ day of ., 1997 Notary Public MEDTRONIC, INC. 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I~- · EXHIBIT B SUMMARY OF EQUIPMENT PURCHASES Actual Purchases Thru Apdl 30, 1997 Projected Purchases May 1, 1997 Thru April 30, 1998 Projected Purchases May 1, 1998 Thru October 31, 1998 TOTAL 447,827 780,425 ? ? ? ,228,252 CAPITAL EQUIPMENT PURCHASED FOR NEURO PRODUCTION 6/27/97 STATE LOAN GRANT FY 97 (November 1996 through Apdl 1997) h:loangcap.xls ~APPROVAL ITEM PRICE EA TOTAL TOTAL DATE Before TAX With TAX ITEMS APPROVED BEFORE NOV. 1996 BUT RECEIVED AND PAID FOR AFTER NOV. 1996 I 9/9/96'Simco Tray Cleaning System (installed in new clean room) 2 Simco 24" dual Neutro-Vac tray cleaning hoods 4921 $ 9,842 $ 10,482 2 Simco#DC1200 3hp 1200 CFM hepa filters 10021 $ 20,042 $ 21,345 10/30/96 Computer for Stim Development Compaq Deskpro 4000 Model 5166/1620, CPQ-247200-002 $ 2,100 $ 2,237 Audio CPO 185430-001 $ 115 $ 122 16 MB Mem Exp CPQ-243012-002 $ 335 $ 357 Nec XV 17+ MultiSync Monitor NEC-JC-1745VMA-1 $ 798 $ 850 10/24/96 Met One A2408 Particle counter with pdnter (clean room) $ 5,890 $ 6,273 6/5/96 Production Mold for Burr Cap PN 104596-001 $ 8,425 $ 8,973 (completed in January 1997) 8/6/96 Lead Laser Welder System for new clean room Laser, fiber, and focusing head $ 43,907 Enclosure $ 4,619 Gantry Mounting System $ 2,100 Motion system $ 8,101 Camera sysstem $ 2,789 Lead tooling $ 4,974 Work tables $ 1,724 Nikon SMZ-1B Stereo Microscope & mount $ 2,257 Energy meter $ 3,821 9/11/96 Four cavity mold for 7495 & 7496 extensions sleeves & boot end $ 16,800 (not yet complete as of 6/23/97) I 9/17/96 Two air press cdmp fixtures for 7495 & 7498 extensions $ 6,766 Page I EXHIBIT B ITEMS APPROVED NOV, 1996 THROUGH APRIL 1997 11/20196 Computer equipment for Mfg secretary $ 2,572 $ 2,739 Compaq Deskpro 200 Model 5133/1200, network card, memory expansion, monitor ~ 11/20/96 Computer equipment for Mfg engineer CompaqLTE 5280 5/120, network card, $ 6,420 $ 6,837 memory expansion, keyboard, mouse, monitor, carrying case 11/22/96 Perc Extension Mold enhancement $ 6,650 $ 7,082 Housing force and cavity block 11/13/96 New Mold for Neuro Stim $ 7,225 $ 7,695 117299-004 permanent four-cavity mold 11/21/96 Air powered wire cutter for 7495 connector assemblies Simonds A-3 blank jaw assy #129432 $ 136 $ 418 $ 445 Simonds SP-002-F activator $ 225 $ 225 $ 240 Simonds A-201-2 mounting base $ 57 $ 57 $ 61 Tax $ 27 $ 27 $ 29 Foot switch and maintenance support $ 400 $ 400 $ 426 40 tool room hours T60163 $ 2,000 $ 2,000 $ 2,000 4/18/97 6 Chairs for Leads Mfg area Gibo-Kodama C3000ET-V523-H-01 $ 238 $ 1,427 $ 1,520 4/18/97 IAC Tables for Leads Mfg area $ 6,138 $ 6,537 2 2000084 starter units 2 2001084 add on units 4 1020833 seal worksurfaces 4 2012303 ligl~t fixtures 4 2012013 open wire shelves 4 2012153 footrests 8 2012157 footrest pans 4 292299 electrical channels 3/17/97 Package printing system for Stim Mfg $ 6,607 $ 7,037 QMS 2425EX Print System printer & controller QMS 2425 2000-sheet input paper deck 11129/97 Keithley 7011-S Multiplexer Card for R&D lab $ 1,095 $ 1,166 1/29/97 lET Programmable Resistance Substituter $ 2,082 $ 2,217 1/20/97~ DCI Tray Redesign & tooling #119959-001 Innertray - one up tooling $ 2,000 $ 2,130 #119964-001 Outertray- one up tooling $ 2,000 $ 2,130 11/23/96 Eight-cavity mold for Part 211987 for Dual Channel Itrel $ 8,000 $ 8,520 1/9/97 New computer for Stim Product Development Compaq Deskpro Model 5166 $ 1,773 $ 1,888 16 Mg RAM expansion $ 335 $ 357 CD-ROM drive $ 179 $ 191 Business audio $ 115 $ 122 ViewSonic 21" Model P810 color monitor $ 1,785 $ 1,901 Page 2 EXHIBIT 3117/97 Production Mold for 2x4 lead paddle $ 9,225 $ 9,825 12/23/96 Crimp assembly fixture for 3998 2x4 surgical lead $ 2,400 $ 2,556 11/13/96 Electrode stamping die with press for 2x4 surgical lead $ 7,800 $ 8,307 11/29/96 Flowhood to monitor clean room hepa filters ADM Model 860 electronic flowhood $ 2,695 $ 2,870 Flowhood kit 8405 $ 1,600 $ 1,704 Dec-96; Dionized Water System for manufacturing $ 122,950 Dec-96 ~Vet and Dry Vacuum System $ 34,650 Dec-96 Compressed Air System $ 53,200 SUBTOTAL THUR 04/30/97 $ 447,827 PROJECTED PURCHASES MAY-97 THRU APRIL-98 Cost Center 43510 - 2 New PC's $ 6,400 Cost Center 43562 - Itrel 3 SA Tray Tooling $ 5,000 - Itret 3 SA Seal Tooling $ 6,000 PC - Electrical Technician $ 3,200 PC - Contract Engineer $ 3,200 - PC - Contract Technician $ 3,200 3 PC Monitors $ 5,800 2 PC's for Lab Tools $ 6,400 Replacement Computer (G. Hrdicka) $ 8,400 Cost Center 43564 - N4011 TBB In-Line Surgical $ 7,500 - N4011 TBB In-Line Surgical $ 2,500 - Computer $ 3,200 - Monitor $ 1,800 - Toolmaker Scope $ 10,000 - Material Cage $ 1,300 - Strain Gage Amplifier (Vishay) $ 5,000 - Instron $ 15,225 Cost Center 43611 - Incorporate Lab Space (Stim Portion) $ 22,500 - PC's for New Hires (Stim Hal0 $ 5,000 - LeCroy Oscilliscope $ 6,000 - Power Supplies $ 2,000 Page 3 EXHIBIT B - Textronix Multimeter $ 1,000 - Lab Tables (Stim Hal0 $ 5,000 Cost Center 43616 -Stedle Product Tooling $ 11,000 - External Tooling $ 2,000 - Kits Tooling $ 4,000 - Computer $ 8,400 Cost Center 43682 Lab Bench $ 1,400 - Microscope & Monitor $ 5,000 - Docking Station $ 4,000 - Micrometer $ 1,000 Cost Center 43686 - Lifelines Team $ 30,000 - Energizers Team $ 30,000 - Receivers Team $ 30,000 - Leads Team $ 30,000 - Next Team $ 30,000 - GeoMED Team $ 30,000 - Final Pack Team $ 30,000 -Stedle Pack Team $ 30,000 - Percs Plus Team $ 30,000 - Material Handler/Parts Cleaning Team $ 30,000 Laser Welder $ 100,000 - SADAR Equipment $ 120,000 - Training Equipment $ 60,000 Cost Center 43687 New Computers (4) $ 28,000 SUBTOTAL MAY 1, 1997 THRU APRIL 30, 1998 $ 780,425 PROJECTED PURCHASES MAY-98 THRU NOV-98 ? ? ? TOTAL $ 1,228,252 h:loangcap.xls mi Page 4 EXHIBIT C TO SECURITY AGREEMENT FOR USE BY FILING OFFICER ONLY STATE OF MINNESOTA UCC-! FINANCING STATEMENT This statement is presented for filing pursuant to Minnesota Statutes 336.9-402 DEBTOR Medtronic, Inc. 7000 Central Avenue NE Legal Department MS300 Minneapolis, MN 55432 SECURED PARTY City of Columbia Heights 590 NE 40th Avenue Columbia Heights, MN 55421 COLLATERAL See attached Exhibit A. RETURN ACKNOWLEDGMENT COPY TO: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 MEDTRONIC, INC. By Its By Its Its ~a~a4~a B--C-1 CL160-79 EXHIBIT C TO SECURITY AGREEMENT FOR USE BY FILING OFFICER ONLY STATE OF MINNESOTA UCC-1 FINANCING STATEMENT This statement is presented for filing pursuant to Minnesota Statutes 336.9-402 DEBTOR Medtronic, Inc. 7000 Central Avenue NE Legal Department MS300 Minneapolis, MN 55432 TIN: SECURED PARTY City of Columbia Heights 590 NE 40th Avenue Columbia Heights, MN 55421 COLLATERAL See attached Exhibit A. RETURN ACKNOWLEDGMENT COPY TO: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 MEDTRONIC, INC. By Its Its Its By By DJG118433 c~o-7~ B-C-1 EXHIBIT A to UCC-1 Financing Statement naming Medtronic, Inc., as Debtor and City of Columbia Heights as Secured Party Pursuant to the provisions of the Security Agreement dated as of , 1997 (the "Agreement") between the Debtor and Secm:ed Party, the Debtor does hereby assign to and grant to the Secured Party all of its right, title and interest in and to: NEED EQUIPMENT DESCRIPTION (the "Equipment"), contract rights (including contract rights pertaining to performance bonds, fidelity bonds, or insurance contracts) now or hereafter belonging or in any way pertaining to the Equipment, and all proceeds and products of the foregoing. DJG118433 ~2~o- ~, ]B-C-A-1 EXHIBIT C PROMISSORY NOTE $250,000 , 1997 Medtronic, Inc., a Minnesota corporation (the "Maker"), for value received, hereby promises to pay to the City of Columbia Heights (the "City") or its assigns (the City and any assigns are hereinafter referred to as the "Holder"), at its designated principal office or such other place as the Holder may designate in writing, the principal sum of Two Hundred Fifty Thousand and No/100ths Dollars ($250,000) or so much thereof as may be advanced under this Note, with interest as hereinafter provided, in any coin or currency which at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Note is payable in installments due as follows: 1. The Loan shall not accrue interest. 2. The principal shall be paid on the first day of the sixty-first month after the date of the loan agreement between the Borrower and the City dated , 1997 (the "Loan Agreement"); provided, however, that the entire balance of the principal shall be forgiven if the Borrower complies with the conditions for forgiveness set forth in Section 5.5 of the Loan Agreement. 3. The Maker shall have the right to prepay the principal of this Note, in whole or in part, without prepayment penalty. 4. This Note is given pursuant to the Loan Agreement and is secured by a security agreement of even date herewith (the "Security Agreement") covering certain property located in Anoka County, Minnesota. In the event any such security is found to be invalid for whatever reason, such invalidity shall constitute an event of default hereunder. All of the agreements, conditions, covenants, provisions, and stipulations contained in the Loan Agreement, or any instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If a default occurs under the Loan Agreement, or any instrument securing this Note, then the Holder of this Note may at its fight and option, without notice, declare immediately due and payable the principal balance of this Note, together with any costs of collection including attorney fees incurred by the Holder of this Note in collecting or enforcing payment hereof, whether suit be brought or not, and all other sums due hereunder, or under any instrument securing this Note. The Maker agrees that the Holder of this Note may, without notice to the Maker of this Note and without affecting the liability of the Maker of this Note, accept additional or substitute security for this Note, or release any security or any party liable for this Note or extend or renew this Note. 5. The remedies of the Holder of this Note as provided herein, and in the Loan Agreement, or any other instrument securing this Note, shall be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Holder of this DJG118433 c~o-79 C-1 Note, may be exercised as often as occasion therefor shall occur; and the failure to exercise any such fight or remedy shall in no event be construed as a waiver or release thereof. The Holder of this Note shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Holder of this Note and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any fight or remedy as to-a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. If any term of this Note, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those to which it is invalid or unenforceable shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law. 7. It is intended that this Note is made with reference to and shall be construed as a Minnesota contract and governed by the laws thereof. $. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed, precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the day of , 1997. MEDTRONIC, INC. By Its By Its By Its ~160-79 CITY COUNCIL LETTER Meeting of July 28, 1997: AGENDA SECTION: NO. ITEM: Police & Fire Reserve Appreciation NO. Dinner ORIGINATING DEPARTMENT POLICE BY: M. Dugdale ~ DATE: July 17, 1997 In the past, the City Council has hosted an annual appreciation night for members of the civil defense Police and Fire Reserve Units and their guests, with funding budgeted in the civil defense fund. In 1996, funds were not budgeted in the civil defense fund, but were budgeted in the recognition/special events fund #45050 and the civil defense volunteer recognition was combined with the general recognition. For 1997, funds were not budgeted in civil defense, with only minimal funding budgeted in the recognition/special events budget. This year the Reserve Units requested a return to the former practice of having their own recognition evening. The Police Reserve Unit provided over 2,300 hours of patrol and special event assistance in 1996 and are an invaluable resource for the City of Columbia Heights. In recognition of their dedication and service, we are requesting approval of the City Council of this recognition event and necessary funding for it. RECOMMENDED MOTION: "Move and authorize the appropriation of $3,080 in the civil defense budget for volunteer recognition, with the appropriation coming from undesignated fund balance in the general fund, and to authorize the Mayor and City Manager to enter into an agreement with Chanhassen Dinner Theatres for this appreciation event." CD97-13 COUNCIL ACTION: