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Home My WebLink AboutAugust 27, 2007OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING AUGUST 27, 2007 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, August 27, 2007 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki, Councilmember Diehm, Councilmember Kelzenberg. Rev. Dan Thompson, Columbia Heights Assembly of God Church gave the Invocation. PLEDGE OF ALLEGIANCE -Recited ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson removed item 7B 5057 University and 7F 4516 5`h Street, as these properties have been brought into compliance. PROCLAMATIONS, PRESENTATION, RECOGNITION, GUESTS Peterson indicated that Representative Keith Ellison may attend this meeting to address the commmunity. Eric Hagen, Sun Focus newspaper, is present for his last meeting, as he has taken a position with the Anoka County Union. Peterson thanked him for the job he did for our community and wished him well in his new position. CONSENT AGENDA Nawrocki requested to remove items G, H,I, J, and L. City Manager Walt Fehst took Council members through the Consent Agenda items. A. Approve meeting minutes for the Columbia Hei htg s City Council meetin og_ f August 13 2007. Motion to approve meeting minutes for the regular City Council meeting of August 13, 2007 as presented. B. Accept Board and Commission meeting minutes. Motion to accept the minutes of the June 5, 2007 Library Board meeting. Motion to accept the minutes of the July 25 2007 Park & Recreation Commission meeting. C. AdoRt Resolution No. 2007-147 being a Resolution to accept certain gifts received by the City of Columbia Heights. Fehst referred to the gifts/donations received, noting the gift from the Edith Wargo estate for public safety services, Lloyd Schmidt estate for the Library, grants, $30,000 from the Columbia Heights Athletic Boosters for Recreation, fireworks donations including VFW Post 230 and several smaller donations. He stated appreciation to these individuals and groups. I~Iawrocki referred to requests for Wargo Park within. the Wargo Estate. Fehst stated that those would be brought to the Council at a later time. Motion to waive the reading of Resolution 2007-147, there being ample copies available to the public. pity Council Minutes Monday, August 27, 2007 Page 2 of 22 Motion to adapt Resolution 2007-147, being a resolution to accept certain gifts received by the City of Columbia. Heights. RESOLUTION N0.2007-147 ACCEPT CERTAIN GIFTS RECEIVED BY THE CITY OF COLUMBIA HEIGHTS WHEREAS, the City Of Columbia Heights has received the following gifts; FORM DATE DONOR AMOUNT PURPOSE CASH CASH CASH CASH CASH CASFI CASH CASH CASH CASH CASH CASH CASH NONCASH NONCASH NONCASH NONCASH NONCASH NONCASH NONCASH NONCASH NONCASH NONC'ASH NONCASH NONCASH NONC'ASH NONCASH NONC;ASH NONCASH NONC'ASH 4/11/07 SOWADA,PATRICIA 5/15/07 TOASTMASTEKS 5/08/07 FIRST CObtM1.1NTIY CREDIT LIN-ON 5/08/07 THE KORDIAK COMPANY 5/ 14/07 COLUMBIA HEIGHTS PCIST 23 5/18/07 NORTHEAST BANK 7/23/07 T C B PRECISION MACHINING 1 /??107 NOR H IEAST BANK 3/ 16107 COLUMBIA HEIGNTS WOMEN OF TODAY 4/17/07 COLUMBIA HEIGHTS LIONS CLUB 4/24{07 COLUMBIA HEIGHTS ATHLETICS BOOSTERS 7/03/07 COLUMBIA HEIGHTS A71 ILECICS BOOSTERS 7/03/07 BLA[NEJAYCEES,INC. 7/18/07 COLUMBIA HEIGI H~S AC'HVI'I'Y FUND 4/05/07-6120/07 GANDER MOUNTAIN 4/05/07-6/20/07 CAPRA'S SPORT{NG GOODS 4/05/07-6,/20/07 WALMART 4/05/07-6/20/07 I'RANKIES LIVE BAIT AND TACKLE 4/05/07-6/20/07 NORTHLAND TACKLE 4105/07-6/20/07 VOODOO BAITS 4/05/07-6/20/07 BEF2KL.EY PURE FISHING 4/05/07-6/20/07 RAPALA LllRES 4105/07-(1/20/07 GRIZ TIALLOF FAME FISTFERMAN 8(9/07 TASTY PIZZA 8/9/07 BOBBY & SIEVES AUiOWORLD 8/9/07 LETTUCE CATER 8/9/07 CULVERS 8/9/07 WALMART 8/9/07 CUB FOODS 8!9/07 G & K LINENS S[JI~TOTAI. F1.IND 881 CONTRIBUTED PROJECTS -RECREATION 6 25 MURZYN HAI 1 150 Mt IRZYN HALL 150 FIREWORKS 25 FIREWORKS 1,000 FIREWORKS 100 FIREWORKS 300 FIREWORKS 200 SENIOR PROGRAM 100 RECREATION 200 RECREATION 30,000 RECREATION 2,500 RECREATION 500 RECREATION 8,670 50%C1F' 2003 FORD VAN 244 TACKLE, ETC FOR FISHING CLINICS 89 TACKLE, ETC FOR FISHING CLINICS 100 TACKLE, ETC FOR FISHING CLINICS NOT AVAIL TACKLE, ETC FOR FISHING CLINICS NOT AVAIL TACKLE, ETC FOR FISHING CLINICS NOT AVAIL TACKLE, ECC FOR FISHING CLINICS NOT AVAIL TACKLE, ETC FOR FISHING CLINICS NOT AVAIL TACKLE, ETC FOR FISHING CLINICS NOT AVAIL TACKLE, ETC FOR FISHING CLINICS NOT AVAIL DINNER 1"ILMS FOR 200 (THEATER) NOT AVAIL DINNER ITEMS FOR 200 (THEATER) NOT AVAIL DINNER ITEMS FOR 200 (TTIEATL-R) NOT AVAIL DINNER ITEMS FOR 200 (THEATER) NOT AVAIL DINNER 1'I'E?NIS FOR 200 (THEATER) NOT AVAIL DINNER ITEMS FOR 200 (THEATER) NOT AVAIL, DINNER ITEMS FOR 200 (THEA'TEIZ) CASH CASH CASH CASH PLEDGE PLEDGE PLEIX;E CASTi CASH CASH CASH CAST 1 CASFI CASH. 44,353 2/16/07 GORMAN, LOLA 150 FIRE 4!13/07 RESIDENT[ALMORTGAGEGROUP 50 FIRE 6/15/07 COLLIMBIAHEIGTTCSPOST23 1,000 FIRE 6/28/07 HEDERMAN,JUDY 500 F[RE I/1?/07 ESTATE OF EDITH P WARGO UP TO 25,000 FIRE 1/1?/08 ESTATE OF EDI'111 P WARGO LIP TO 25,000 RESCUE 1/12/09 ESTATE C>F EDTTIi P WARCiO UP TO 25,000 POLICE 6127/07 HGDERMAN,DANNY&JUDY 500 POLICE 1129/07 ESTA`IB OF LOYD SCHMIDT 16,667 LIBRARY 6/25/07 ESTATE OF LOYD S('HMI DT 7,169 F_IBRARY 1/02/07 JCNINSON,BARBARA 25 LIBRARY 3/ 12107 ANONYM,C}US 10 LIBRARY 3/12/07 ARTHUR LIBRARY OUTREACH GRAM' 1,000 LIBRARY 7/02/07 TIIE FLANARY GROUP,INC. 100 LIBRARY SUBTEYI'AL FUND 883 C BU'['EDT'ROJECTS-OTITFR ]02,171 TOI'AT. $ 146,524 City Council Minutes Monday, August 27, 2007 Page 3 of 22 BE IT HEREBY RESOLVED by the City Council of the City Of Columbia Heights, that the City of Columbia Heights accepts these gifts, subject to the donor-prescribed terms listed. D. Approve Transfer of Funds from General Fund to Police Department Budget to Reimburse Overtime Fund Motion to approve transfer of $1,830 received from Anoka County for partial reimbursement of costs associated with detox transports from the General Fund to the Police Department 2007 Budget under Line #1020, Police Overtime. E. Approve transfer of funds from General Fund to Police Department Budget to reimburse Overtime Fund Motion to transfer $1,064.39 received from Unique Thrift Stores, $2,747.25 received from the Columbia Heights School District, $870 received from North Valley, Inc., $212 received from Candlin and Associates, for a total of $4,893.64 from the General Fund to the Police Department 2007 Budget under line #1020, Police Overtime. F. Approve Transfer of Funds from General Fund to Police Department 2007 Budg1et Overtime Line #1020 Motion to approve the transfer of $1,577.61, the total amount of money received from the State of Minnesota for our efforts in the Safe and Sober program from the General Fund to the Police Department 2007 Budget Line #1020, Overtime. G. Acceptance of Master Plan(s) and authorization to~roceed with construction plans for Sullivan Lake Park and Silver Lake Beach. Removed H. Approve the Professional Services Agreement with Brauer & Associates for preparation of plans anal specifications for Sullivan Lake Park. Removed I. AdoRt Resolution No. 2007-155, being a Resolution authorizing the execution and delivery of a Lease-Purchase Agreement and Related Documents. Removed J. Authorize a~,reeinents for Liquor Store Project Change Orders. Removed . > i r . i n T ~ ~ _ 1 4 _ .. _ _ t _ _ 711 ~..„ O_ 7 1L. Approval or the Submtsslon of Sign lies~gn for ~ up v atu L~quur~ to t1~e narn~~ng; «. ~,o~~;in~ Commission Motion to direct staff to present the plan for the proposed sign to the Planning & Zoning Colninission with a request for a text change to the sign ordinance that would allow signs to be two feet higher. L. Approve Elected Official Out of State Travel. Removed M. Approve the items listed far rental housing license applications far August 27, 2007 Motion to approve the items listed for rental housing license applications for August 27, 2007. N. Approve payment of the bills otion to approve payment of the bills out of the proper funds as listed in the attached check register covering Check Number 122587 through Check Number 122736 in the amount of $1,628,254.58. Motion by Diehm second by Williams, to approve the Consent Agenda items with the exception of items G, H, I, J, and L. C'a<,~ council Minutes Monday, August 27, 2007 Page 4 of 22 Nawrocki questioned where funds would come from for check #122713 for $13,000 + to the State Department of Revenue for past use tax, which was not budgeted. Bi11 Elrite, Finance Director, stated that we were audited by the State Department of Revenue, which indicated that out of state purchases not charged sales tax are required to be paid to our state. The errors were mostly in the first of the three years this has been in place. There were several changes during that time to the requirements. We will have adequate funds in the 2007 budget, by department, to cover this. Nawrocki. questioned check #12294 to Kennedy and Graven for TIF extension work. We already paid about $6,500 on this. Wiil there be more bills for that? Fehst stated this bill covers through May when the legislative session ended. Upon vote: All ayes. Motion carried. G. Acceptance of Master Plan(s~and authorization to proceed with construction plans for Sullivan Lake Park and Silver Lake Beach. Motion by Diehtn, second by Kelzenberg, to accept the Park Master Plan(s) prepared by Brauer and Associates and order the preparation of construction plans and specifications for Sullivan Lake Park and Silver Lake Beach. Fehst stated that Park and Recreation Commission members were present in the audience. Peterson stated that Commission did have a work session on this topic. Nawrocki indicated his feelings that the Master Plan goes overboard by removing parking and replacing it on SIS` Street, replacing the shelter rather than adding a new roof and trim, and that he did not see bad concrete. New playground equipment would be desirable. Diehm stated that she was very impressed with the plan, the process followed, and the community participation in the process. This is a necessary expenditure. Some items discussed today are bonding. She read from an economic report, which indicated current levels compared to those of the past, and the importance of reinvesting in your community and being good stewards of the money. Nawrocki stated the average Columbia Heights household income is among the lowest in the metro area. it has been increasing each year as has the market value. Diehm stated that we are increasing in numbers but decreasing in position relative to others. Nawrocki recognized that the average income is less and will have to be taxed. He stated he was not opposed to improving some things in the park. However, from the taxpayer's viewpoint, we can do moderate improvements. Nawrocki stated there currently is an opening in the fence, at the Fire Department's request, for access besides S l S`. There is no provision in this plan for their drive access. Fehst stated that we would be sure there was access. Fehst indicated that the independent firm that did the evaluation would not do the work. Diehm indicated that by ii-ivestiilg iri our future we are encouraging residents to join our community and by improving our tax base we are better able to pay for improvements. Kevin Hansen, Public Works Director, stated that this recommendation went through the public process to develop a concept plan and then a master plan. It would include the replacement of the picnic shelter, playground equipment, improve parking, realign the trail and open up the view to the lake. Hansen indicated the cost would be $250,000 for Sullivan Park and $225,000 for Silver Lake Park. Additional funding is anticipated. Brauer and Associates have been paid $3,500 to this point. City Council Minutes Monday, August 27, 2007 Page 5 of 22 Peterson indicated that the park may not be utilized to its fullest extent now and would be if it were not substandard. He stated that originally he thought it would be enough to redo the roof until we heard from the experts the extent of rotting wood. We have good citizens with various incomes, and people are feed up with a community that can not afford things. If we don't invest in our own community, no one else will. The last time we put money into the parks was in 1968. It is imperative that we improve our community. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4 ayes - 1 nay. Motion carried. H. Approve the Professional Services Agreement with Brauer & Associates for preparation of plans and specifications for Sullivan Lake Park. Motion by Williams, second by Kelzenberg, to approve the Professional Services Agreement with Brauer and Associates for Architectural consultant services for the design and construction phase of Park Improvements for Sullivan Lake Park in an amount not-to-exceed $20,000. Fehst stated this is the low, responsible proposal and is not the firm that did the park assessments. Nawrocki questioned the advertisement process. Hansen indicated that responses were requested from two firms. Nawrocki stated that without solicitation, pencils do not get sharp. Nawrocki requested a copy of the proposed contract. Upon vote: Kelzenberg, aye; Williams, aye; Diehin, aye; Nawrocki, nay; Peterson, aye. 4 ayes - 1 nay. Motion carried. I. Adopt Resolution No. 2007-155 being a Resolution authorizingithe execution and delivery of a Lease-Purchase Agreement and Related Documents Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution 2007-155, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution 2007-1 S5, being a resolution authorizing the execution and delivery of aLease-Purchase Agreement and related documents. Fehst stated that prior to this meeting the EDA acted on selling bonds to borrow $5 million dollars to finance two liquor stores. Mark Ruff and Andrew Pratt from Kennedy and Graven were present to answer questions. Nawrocki stated he would not support the lease purchase bond, as interest fees are higher over the term and it does not allow citizens to seek a petition to request a referendum. Petersotl stated that was Councilmember Nawrocki's opinion. Nawrocki questioned why else this funding type would be used. Peterson stated. that was not his opinion and felt this was an accusation. Fehst stated that the Council is interested in maintaining flexibility on financing for other projects being considered, such. as an activity center, safety center, and a possible library down the road. This allows you to borrow funds outside the two percent assessed market value that we can borrow against for the future. It would cast an additional $30,000 to $50,000 over the 20 year period. Fehst stated that Councilmember Nawrocki is opposed to the City Council Minutes Monday, August 27, 2007 Page 6 of 22 use of interest when borrowing money. Nawrocki disagreed. Fehst wanted it on record that Councilmember Nawrocki would oppose borrowing using interest, as it will come up tomorrow. Nawrocki stated that you pay less interest with GO bonds than with lease purchase bonds. We are going this route to avoid residents being able to vote on this. Williams stated he had people say they were grateful that the city is not backing this and that it is the EDA doing so. Nawrocki indicated his hope that the new stores are a great thing for profitability, but some community members question this move, especially the Central Avenue store. He indicated his support of the store on 37`" because of the lease questions. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4 ayes - 1 nay. Motion carried. RESOLUTION N0.2007-155 RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF ALEASE-PURCHASE AGREEMENT AND RELATED DOCUMENTS BE IT RESOLVED by the City Council of the City of Colmnbia Heights, Minnesota, as follows: Section 1. Recitals. 1.01. The City is authorized by Minnesota Statutes, Section 465.71, as amended, to acquire real and personal property under alease-purchase agreement. 1.02. The City will lease the real property identified as on Exhibit A to the Lease (the "Sites") to the Columbia Heights Economic Development Authority (the "Authority") pursuant to a Ground Lease, dated as of September 1, 2007 (the "Ground Lease"). Simultaneously with the execution and delivery of the Ground Lease, the City and the Authority will enter into aLease- Purchase Agreement (the "Lease") providing for the City's lease and purchase of the Sites and the Facilities (hereinafter defined) from the Authority. 1.03. Pursuant to a Mortgage and Security Agreement and Trust Indenture, dated as of September 1, 2007, between the Authority and U.S. Bank National Association, as Trustee (the "Indenture"), the Authority will issue its $5,040,000 Public Facility Lease Revenue Bonds (Municipal Liquor Stores Project), Series 20078 (the "Bonds"), to finance the construction and equipping of two municipal liquor stores on the Sites (the "Facilities"). 1.04. The Lease requires the City to make Lease Payments representing principal and interest on the Bonds during the term of the Lease, subject to the right of the City at the end of any fiscal year to determine not to appropriate moneys for future Lease Payments. Upon payment of all Lease Payments, the Grow~d Lease and the Lease will terminate, and the Sites and Facilities will be the property of the City. 1.05. Forms of the Lease and Ground Lease have been prepared and submitted to this Council and are on file with the Citv Manager. Section 2. Findings. On the basis of information given the City to date, it is hereby found, determined and declared that: (a} It is desirable and in the best interests of the City to enter into the Ground Lease and the Lease. (b) The terms of the Ground Lease and the Lease are found to be advantageous to the City and the form and tenors thereof are hereby approved. (c) The Sites described in the Lease constitute essential government property, and the City presently intends to appropriate all Lease Payments under the Lease for the tern of the Lease; however, the obligations of the City under the Lease are not to be payable from nor charged upon any funds of the City other than the funds appropriated annually to the payment thereof, and the Lease shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except its interest in the Lease and in the Sites under the Lease. Section 3. Authorization of Documents. The Mayor and the City Manager are authorized. and directed to execute and deliver the Ground Lease, the Lease and other documents necessary or desirable in connection with the Ground Lease and the Lease, substantially in the fornls on tile, but with all such changes therein as shall be approved by the officers executing the same, which approval snail be conclusively evidenced by 'the execution thereof. Copies of all of the transaction documents s1ta11 be delivered, Bled and recorded as provided therein. The Mayor, the City Manager and other City officers are also authorized and directed to execute such other instruments as may be required to give effect to the transactions herein contemplated. Section 4. Payment of Lease Payments. The City wilt pay to the Authority, as assigned to the Trustee under the Indenture, promptly when due, all of the Lease Payments and other amounts required by the Lease. To provide moneys to snake such payments, the City will include in its annual budget, for eac11 Fiscal Year dining the teen of the Lease, commencing with the Fiscal Year ending on December 31, 2008, moneys sufficient to pay and for the purpose of paying all Lease Payments, a reasonable cstin~ate of Additional Lease Payments, and other amounts payable under the Lease, and will take all other actions necessary to City Council Minutes Monday, August 27, 2007 Page 7 of 22 provide moneys for the payment of the obligations of the City under the Lease from sources of the City lawfully available for the purpose. The agreement of the City in this Section is subject to the City's right to terminate the Lease at the end of any Fiscal Year, as set forth in the Lease. Section 5. Miscellaneous. 5.01.. The ot~cers of the City are authorized and directed to prepare and furnish to the Authority, and to the attorneys approving the Lease, certified copies of all proceedings and records of the City relating to the power and authority of the City to enter into the Ground Lease and the Lease within their knowledge or as shown by the books and records in their custody and control, and such certified copies and certificates shall be deemed representations of the City as to the facts stated therein. 5.02. Capitalized terms used herein and defined in the Initial Lease or the Lease have the meanings given in the Initial Lease or the Lease. Authorize agreements for Liquor Store Project Change Orders Motion by Williams, second by Kelzenberg, to authorize the Mayor and City Manager to enter into an agreement with Oertel Architects for a change order to their contract in the amount of $27,000 and to enter into an agreement with Copeland Building Corporation for change orders totaling $53,346.02, and to authorize waiving building permit fees for the construction of the two liquor stores. Nawrocki asked that the motion be divided. He opposes the fee for the architect, as they submitted architectural drawings for a mezzanine and a partial basement, and should have known we needed a full basement because of the elevation. We were taken by the contractor on soil testing to pay an additional $40,000 for soil removal. He stated he could vote for the contractor's change order, but not the architect's. The maker and second agreed to split the motion. Motion by Williams, second by Kelzenberg, to authorize the Mayor and City Manager to enter into an agreement with Oertel Architects for a change order to their contract in the amount of $27,000. Upon vats: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried. Motion by Kelzenberg second by Williams, to enter into an agreement with Copeland Building Corporation for change orders totaling $53,346.02, and to authorize waiving building permit feet for the oonstnaotinn of the two liquor Stores. 1 Jpon vote: All ayes. Motion carried, L. Approve Elected Official Out of State Travel Motion by Diehm, second by Williams, to approve attendance of Mayor Peterson, Councilmember Williams, and Councilmember Kelzenberg at the 2007 National League of Cities Congress of Cities & Exposition in New Orleans, Louisiana, November 13 to 18, 2007, as budgeted monies are available, and to authorize payment in advance for registration, airfare and lodging and provide reimbursement for meals and incidental costs in accordance with limitations and guidelines outlined in the city's policy for out-of--state travel by city employees. Nawrocki. indicated the motion. should read National League of Cities. He stated that the cost estimates are not detailed enough. Food allowance was discussed, along with the need to supply receipts for such. Dieh~m stated that she is not attending, but the motion is to allow Peterson, Williams, and Kelzenberg to attend the NLC conference. She stated that Nawrocki is an advocate of attending these conferences for the information received and. connections you can make. City Council Minutes Monday, August 27, 2007 Page 8 of 22 Diehm stated that it is wonderful that these Council members want to do this. Nawrocki stated that he did not have a problem with. the three attending. He questioned where the money would wine from and read the current account balances. Fehst stated that funds would come from somewhere in the Mayor/Council budget. Fehst painted out that the Mayor has attended to two conferences, Kelzenberg has attended one and Williams has not yet attended a conference, whereas Nawrocki has attended about 50 such conferences. Diehm called for the question. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, aye; Peterson, aye. Motion carried. Peterson referred to a member filing reimbursement forms for meals and mileage, which he has never done. ITEMS FOR C01~1SIDERATI®N A. Other Ordinances and Resolutions 2nd Reading: Adopt Ordinance No. 1529, being an Ordinance for the Rezoning of Property at the 4800 Block of Central Avenue. Motion Diehm, second by Kelzenberg, to waive the reading of Ordinance No. 1529, being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Ordinance No. 1529, being an Ordinance rezoning the properties located at 4849 Central Avenue, 4811 Central Avenue, 4801 Central Avenue, 4757 Central Avenue and 4755 Central Avenue from "Mixed Use Development District" to "General Business". Jeff Sargent, City Planner, indicated this would rezone Savers, Buffalo Wild Wings, Welle Auto Supply, Subway, and the Big Marina Grill and Deli back to the General Business Zone it was in 2003. It was rezoned to house a possible hotel and as such a proposal is not coming forth, it is recommended to change it back to be consistent with other commercial businesses in the area. Upon vote: All ayes. Motion carried. B. Bid Considerations -none C. Other Business 1. Adopt Resolution No 2007-151 being_a Resolution awarding the sale of $1 000,000 in General Obligation Improvement Bands, Series 2007A. Motion Diehm, second by Williams, to waive the reading ofResolutiorl 2007-1;1, there being ample copies available to the public. Upon. vote: All ayes. Motion carried. otion Diehm, second by Williams, to adopt Resolution 2007-151 being a resolution awarding the sale of $1,000,000 in General Obligation Improvement Bonds, Series 2007A. Upon vote: All ayes. Motion carried. Resolution avc~ilczble at the end of this document. 2. Distribution of the 2008 Cit~Manager`s Proposed Budget and Tax Levy. amity council Minutes Monday, August 27, 2007 Page 9 of 22 Fehst stated this is the distribution of the proposed budget as required by the City Charter. Nawrocki stated that the presentation of the budget requires some explanation. Fehst indicated that the Council has not seen the budget and it will be discussed at length over the next three months. Motion by Diehm, second by Kelzenberg, to accept the distribution of the City Manager's proposed 2008 budget and tax levy as a more detailed presentation is forthcoming. Nawrocki stated this would bring the tax levy to 6.4 percent. Dielnm stated that we are not accepting the proposal. at this time, only the distribution. Nawrocki stated concerns for residents to pay this, as we have had double digit increases in past years and reductions in state aid. He indicated that he directed the City Manager to change the city newsletter article to remove "modest" increase. Nawrocki stated the need to get this information out to the public with sufficient time to do so. Diehm stated that we have more public budget meetings than any other city she has ever encountered. She called for the question. Upon vote: All ayes. Motion carried. Nawrocki questioned when the Truth in Taxation hearing would be held. Fehst stated it would be set in September. 3. Public Safety Facilit~pdate Gary Gorman, Fire Chief, stated that on August 15, the Police Chief, Police Captain, Assistant Fire Chief and himself met with Beutow and Associates to reviewed the survey. The Police Department has set up f ve different focus groups to meet with the architects and the Fire Department has set up three focus groups to zmeet with the architects in September. There will also be a group of five from each department that will meet to discuss shared space in a new facility. Nawrocki questioned. when funding would be discussed and resident concerns on how the would be paid for. Fehst stated that Council has a number of items they are considering and they will have to prioritize the needs. The Activity Advisory committee will meet this week and we will speak to them about the public safety center. This could be a very expensive site, but other sites could be considered. We will soon have information from the YMCA to see if they are interested to work with us on an activity center. Council will then be able to meet and consider the projects and haw to optimize the money available, while still considering the needs of the future. Nawrocki requested copy of the activity center committee meeting agenda. IP~Tl&LiC HEARINGS A. Adopt Resolution Na 2007-148 being a resolution for rental hausin~ license revocation at 1231-1233 40th Avenue N.E Fire Chief Gary Gorman stated the property has been sold and is vacant. The new owner has not submitted a rental license request. City Council Minutes Monday, August 27, 2007 Page 10 of 22 Mayor Peterson asked if there was anyone present to represent the property. There was not. Motion by Williams, second by Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-14$, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution No. 2007-148, Resolution of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of the rental license held by Sean Hokland regarding rental property at 1231-1233 40th Avenue N.E. Upon vote: All ayes. Motion carried. RESOLUTION 2007-148 Resolution of the City Council for the City of Colwnbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Sean Hokland (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 1231-1233 40`h Avenue N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article 1V, Section SA.408(B}, written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on August 8, 2007 of an public hearing to be held on August 27, 2007. Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Colwnbia Heights makes the following: FINDINGS OF FACT I. That on June 15, 2007, inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on August 8, 2007, inspection office staff reviewed the property file and noted that the property remained unlicensed. A Statement of Cause was mailed by regular mail to the owner at the address listed in the property records. 3. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Residential Maintenance Code were found to exist, to-wit: Failure to submit a rental license application. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code, Chapter SA, Article 111 SA.306 and SA.303(A). ORDER OF COUNCIL l . The rental license belonging to the License Holder described herein and identitied by license number F781 t is hereby revoked: 2. The City will post for the purpose of preventing occupancy a copy of this order on the buildings covered by the license held by License Holder; 3. All tenants shall remove themselves from the premises within 60 days from the first day of posting of this Order revoking the license as held by License Holder. B. Adapt Resolution No. 2007-149 being a Resolution for abatement of violations at 5057 University Avenue N.E. -Removed C. Adopt Resolution No 2007-150 being a Resolution for abatement of violations at 4236 Polk Street N.E. Gorman stated this property has changed from single family to rental and 'back again. The property is now vacant. This is for a driveway violation. Mayor Peterson asked if there was anyone present to represent the propet~ty. Thera was not. Mohan by Wil lams, second by Kelzenberg, to close the public hearing and to waive the reading of Resolution No. 2007-150, there being ample copies available to the public. Upon vote: All ayes. Mahon carried. City Council Minutes Monday, August 27, 2007 Page I l of 22 Motion by Kelzenberg, second by Williams, to adopt Resolution No. 2007-150, a resolution of the City Council of the City of Columbia Heights declaring the property at 4236 Polk Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Upon vote: All ayes. Motion carried. RESOLUTION 2007-150 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Al-Noor Agil (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4236 Polk Street N.E., Columbia Heights, Minnesota. And whereas, pursuant to Colmnbia Heights Code, Chapter 8, Article II, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on August 6, 2007 Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Colmnbia Heights, the City Council of the City of Columbia Heights makes the following; FINDINGS OF FACT 1. That on August 8, 2006 an inspection was conducted on the property listed above. Inspectors found one violation. A compliance order was sent via regular mail to the owner at the address. 2. That on October 2, 2006, a seasonal extension of time was granted so that the violation could be corrected. The reinspection was extended to August 6, 2007. 3. That on August 6, 2007 inspectors reinspected the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 4. That on August 17, 2007 inspectors reinspected the property and found that one violation remained uncorrected. 5. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: Shall repair the driveway that is in very poor shape. 6. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the Ciry Code Section 8.206(A} and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4236 Polk Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, nave expired, or such rights have been cxerci~cd acrd curnpicteii. ORDER OF COUNCIL 1. The property located at 4236 Polk Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon alt relevant parties and parties in interest. D. Adopt Resolution No 2007-152 being_a Resolution for abatement of violations at 660-662 47- 1/2 Avenue N.E. Gorman stated this was rental property that went into foreclosure. There is a broken window and scrub growth around the property. ~/layar Peterson asked if there ~~Jas anyone present to represent the property. There was not. ZVlotion by Nawrocki, second by Williams, to close the public hearing and to waive the reading of Resolution No. 2007-152, there being ample copies available to the public. Upon vote: All ayes. Motion carried. otion by Nawrocki, second by Williams, to adapt Resolution No. 2007-152, a resolution of the City Council ofthe City of Columbia Heights declaring the property at 660-662 47 r/z Avenue N.E. a nuisance and approving the abatement of violations from the property pursuant City Council Minutes Monday, August 27, 2007 Page 12 of 22 to City Code section 8.206. Upon vote: All ayes. Motion carried. RESOLUTION 2007-152 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of City Code, of the property owned by Christopher Decker (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 660-662 47 %2 Avenue N.E., Columbia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article lI, Section 8?06, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on August 7, 2007 Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on July 5, 2007 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on August 7, 2007 inspectors reinspected the property listed above. Inspectors noted that two violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on August 16, 2007 inspectors reinspected the property and found that two violations remained uncorrected. 4. That based upon said records of the Fire Deparnnent, the following conditions and violations of City Codes(s) were found to exist, to wit: Shall repair broken window in front on 660side and shall remove all areas of scrub growth. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206(8). CONCLUSIONS OF COUNCIL 1. That the property located at 660-662 47-1/2 Avenue N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The properly located at 660-662 47-1 /2 Avenue N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. E. Adopt Resolution No 2007-153 being a Resolution for abatement of violations at 4544-4546 Filllnore Street N.E. C_nrrnan etatPd thic i5 a rental pratnerty from which the rent0l license 1105 been. revoked. Item B has been completed, and there is now graffiti to deal. with. This abatement is now for items A and C. Mayor Peterson asked if there was anyone present to represent the property. There was not. Motion by Nawrocki, second by William, to close the public hearing and to waive the reading of Resolution No. 2007-153 removing item B, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution No. 2007-153, a resolution of the City Council of the City of Columbia 1-leights declaring the property at 4544-4546 Fillmore Street N.E. a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Upon vats: All ayes. Motion carried. RESOLUTION 2007-153 Resolution of the City Council for the City of Columbia Heights declaring the property a nuisance and approving abatement of ordinance violations pursuant to Chapter 8, Article II, of Ciry Code, of the property owned by Kyle Smith (Hereinafte~- "Owner of Record"}. City Council Minutes Monday, August 27, 2067 Page 13 of 22 Whereas, the owner of record is the legal owner of the real property located at 4544-4546 Fillmore Street N.E., Coluarobia Heights, Minnesota. And whereas, pursuant to Columbia Heights Code, Chapter 8, Article It, Section 8.206, written notice setting forth the causes and reasons for the proposed council action contained herein was sent via certified mail to the owner of record on July 26, 2007 Now, therefore, in accordance with. the foregoing, and all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: FINDINGS OF FACT 1. That on June 18, 2007 an inspection was conducted on the property listed above. Inspectors found three violations. A compliance order was sent via regular mail to the owner at the address. 2. That on July 26, 2007 inspectors reinspected the property listed above. Inspectors noted that three violations remained uncorrected. A compliance order and statement of cause was mailed via certified and regular mail to the owner listed in the property records. 3. That on August 16, 2007 inspectors reinspected the property and found that three violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: Shall remove all/any trash-garbage-debris from the property and shall remove the rock pile next to the south side of the garage. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A} and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4544-4546 Fillmore Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 2. That all relevant parties and parties in interest have been duly served notice of this hearing, and any other hearings relevant to the abatement of violations on the property listed above. 3. That all applicable rights and periods of appeal as relating to the owner of record, occupant, or tenant, as the case may be, have expired, or such rights have been exercised and completed. ORDER OF COUNCIL 1. The property located at 4544-4546 Fillmore Street N.E. constitutes a nuisance pursuant to City Code. 2. That a copy of this order shall be served upon all relevant parties and parties in interest. F. Adopt Resolution No. 2007-154 being a Resolution for abatement of violations at 4516 5th Street N.E. Removed. Miscellaneous Nawrocki stated that 4644 Washington. Street was brought to Council in March, but still needs clean. up. Gorman indicated he would get him a report on this property. tS~9MIi~IS T 12A'I'IVE ~tEla(3I2TS Report of the City Manager • Item for the September 5th work session are the review of the 200& tax levy and the new property maintenance code. • This is a busy time in the police department, and we will be glad to see the kids back in school. Nawrocki • l omorrow night the Ei~A will discuss changes in the i~mart development agreement. i-Ie referred to a newspaper article indicating Nedegaard's misrepresentation on the sale of properties. He stated concern on changing the names of whom we are dealing with, ownership status, legal problems, and wha the authority will be. Fehst stated the new owner would cover this. This is the same LCL with a new manager. Fehst stated this would be discussed tomorrow night. • Referred to a letter from the Tilkens at 3975 Johnson Street regarding assessable work on Ulysses Street. What is the fallow up to this`? Fehst indicated that staff has spoken to them, City ~ounciP Minutes Monday, August 27, 2007 Page 14 of 22 bTCt then are not satisfied with the response, which was more liberal than any other projects to date. Anything else we would be setting a precedent. Hansen will be instructed to talk to them again. • Dana Wiglnan of the Library posted a request for comments on the Hometown Helper web site where they are seeking a community project grant. Fehst requested to receive this information. • City newsletter -requested correction on the liquor store profits and minimal tax amount. • When will the Truth and Taxation meeting be. The date should be in the newsletter. Fehst stated that Council sets that date, but it is generally the first Mondav in December. The levy is set at the first or second meeting i~a September. • 1040 49`h Avenue regarding the berm -the outflow is higher than the yard and the berm is starting to fill up. This needs to be addressed. Fehst referred to the large amount of rain received recently. • Damage claims from sewage back up of two to three years ago at 49`", 50`" and Madison did not get reimbursed by insurance. They deserve to be looked at again. • Waiting for a written opinion from the City Attorney regarding City Council and Charter Commission members not being able to write a letter to the editor indicating their view on a subject if it is contrary to the consensus of the Council or Charter Commission. Jim Hoeft, City Attorney asked for this in writing, to which he would give a written response. Report of the City Attorney -none CITIZENS FORUM Jan Koope, 4020 - 4022 Central Avenue, stated that the City contractor changed the level of her stoop and popped the seal on her windows, to which she has received no satisfaction. The concrete was replaced, but is not correct. She requested to be there when the work was done, but was not notified. A phone call would have saved this trouble. There is now water coming into the basement, and they have made changes that are not acceptable. Ms. Koope indicated she would get a contractor to redo it and replace popped seal windows, and would expect the city to pay for it. Fehst stated that he has received a quote of $300 to redo the work again, with Ms. Koope present, if r ., «r Ine l;0unC11 W1sheS t0 d0 So. W e are nut dWare of wrrldUW probieriis grid %Vlii iiCit Cuter taierTa. Koope stated that she would not accept anyone associated with the city doing the work. Nawrocki stated he viewed this and it is a lousy job, which the contractor should be liable for. Fehst referred to past contacts on the problem. Peterson suggested the Manager have a contractor redo the work or contribute $300 to $600 to the contractor of her choice. Peterson stated that Thompson and Sons did the original work, but our present contractor is Kassa. Fehst stated that her quote of $1,600 is out of line. Koope stated her pride in this building and her desire is that a quality job be done. Fehst suggested that our present contractor redo the work with her present, as we want her to be satisfied. Koope indicated that she would want to meet with them and see some of their work first. Peterson asked rf this would be sans actoiy'. Koope stated she would r-nake up her mend after r~reeting they. Nawrocki suggested a city employee also be on hand. If she wants to get her own contractor, we would pay $500 alld she wouid pay the rest. Peterson asked that everyone be sure that they understand one another far reasonable satisfaction. Koope stated dissatisfaction with the building of new liquor stores and the current housing projects in the city. COUNCIL C E City Council Minutes Monday, August 27, 2007 Page 15 of 22 Peterson indicated that keeping comments to five minutes would be enforced. Kelzenberg • Congratulated the Post Office employees for winning the softball game against the Police and Fire Department employees and winning the faint game against the Girl's All Stars. Funds raised will go to SACA. Williams • We are fortunate not to have had the excessive rain received in southern Minnesota and indicated sorrow for those in the bridge collapse. • School starts next week -for safety, be aware of children and buses. • Referred to the large amount of mortgage foreclosures sweeping the country. We should have classes on budgeting. • Have a great fall and nice Labor Day. Remember our officers will be tagging drunk drivers. Diehm • Received an email regarding changes for disposal of TV's. Asked for this information to be placed on cable TV and our web site. • Congratulated the recreation staff on their great summer programs in the parks and the Library on the great activities they had. • Also asked everyone to have a safe Labor Day -keep an eye out for kids. Nawrocki • Asked that a follow up letter be sent regarding electronics disposal. Fehst stated that residents now have to pay for electronic disposals. Resident indicated he called BFI, but then had to call another place. Peterson asked if residents could take other people's items to Public Works for disposal. Hoeft indicated a new policy is being drawn up. • 43 - 44t" Central Avenue fence has had problems. The shopping center people say it is not their fence. Peterson stated that the owner has ordered a new fence. Fehst stated that they have ordered the replacement parts and will repaint it. The building inspector has looked at it for safety and for the liability of the shopping center. • National Night Out was pretty good. People are interested in what is happening in the city. • Complimented the Finance Director on his weekly liquor store construction update report. • The Focus published the story on the changes to the Manager's compensation. They did not include the increase to deferred compensation. Peterson indicated that Council Corner was complete. Peterson: Don't take yourself too seriously, and honor our service men and women. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:58 p.m. Patricia Muscovitz CMC City Clerk C'it-y Council Minutes Monday, August 27, 2007 Page 16 of 22 CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION N0.2007-151 RESOLUTION AWARDING TIIE SALE OE $1,000,000 GENERAL OBLIGATION STREET REHABILITATION BONDS, SERIES 2007A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE 1T RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City") as follows: Section 1. Recitals. I.O1. The City is authorized by the Charter of the City of Columbia Heights (the "Charter") to issue its general obligation bonds for, among other things, the construction and rehabilitation of streets within the City (the "Street Rehabilitation"}. 1.02. On July 9, 2007 the Council conducted a first reading of an ordinance to issue its general obligation bonds in the aggregate amount of $1,000,000 to finance the Street Rehabilitation (the "Ordinance"). 1.03 On July 23, 2007, the Council conducted a second reading of the Ordinance and adopted the Ordinance, subject to referendum as described in the Charter. 1.04 The Ordinance was published at least once in the City's ofticial newspaper. The City Clerk did not receive a petition signed by the requisite amount of registered voters in the specified time frame to require a referendum on the issuance of the Bonds (hereinafter defined) under the Charter. Section 2. Sale of Bonds. 2.01. Award to Purchaser. The proposal of Wells Fargo Brokerage Services, LLC (the "Purchaser") to purchase the City's $1,000,000 General Obligation Street Rehabilitation Bonds, Series 2007A (the "Bonds"} described in the Tenns of Offering thereof is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $997,695.20 plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year Interest Rate 2009 4.00% 2010 4.00% 201.1 4.00% 2012 4.00% 2013 4.25% 2014 4?5°/n 2015 4.25% 2016 4.25% 2017 4.375% 201$ 4.3 /J %o True Interest cost: 4.2901% The City Manager is directed to deposit the good faith check of the Purchaser on behalf of the City pending completion of the sale and delivery of the Bonds, and to return the checks of the unsuccessful proposers forthwith. The sum of $4,388.95 being the amount offered by the Purchaser in excess of $1,000,000 will be credited to a separate construction account to defray the costs of the Street Rehabilitation, as detern~ined by the City's financial advisor. 2.02. Tenns and Principal Amounts of the Bonds. The City will forthwith issue the Bonds pursuant to the Charter, in the total principal amount of $1,000,000, originally dated as of September 19, 2007, the Bonds being in fully registered form and issued in the denomination of $5,000 or any integral multiple thereof, numbered No. R-1 and upward, bearing interest as above set forth, and maturing Jerially (9i7 Febitiaty 1 ill the years and aimvuntS as tCiiiow5: City Council Minutes Monday, August 27, 2007 Page 17 of 22 Year Amount 2009 $65,000 2010 85,000 201 t 90,000 2012 95,000 2013 100,000 2014 105,000 2015 105,000 2016 110,000 20I 7 120,000 2018 125,000 2.03. Optional Redemption. The City may elect on February 1, 2015, and on any day thereafter to prepay Bonds due on or after February 1, 2016. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 3. Form; Registration. 3.01. Registered Fonn. The Bonds will be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof will be payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond. will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on February I and August 1 in each year, commencing August 1, 2008, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 3.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar will keep at its principal corporate trust office a bond register in which the Registrar will provide far the registration of ownership of Bonds and the registration. of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duty executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bands of a like aggregate principal amount and maturity, as requested. by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner's attorney in writing. (d) Cancellation. A11 Bonds surrendered upon a transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of directly by the City. (e} ImproRer or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, The Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (tl Persons Deemed Owners. The City and the Registrar may treat the person in whose Warne any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Band is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Band and far all other purposes, and all such payments so made to any such registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Band to the extent of the sum or sums to be paid. City Council Minutes Monday, August 27, 2007 Page I8 of 22 (g) Taxes, Fees and Char>;es. The Registrar may impose a charge upon the owner thereof for every transfer or exchange of Bonds, sufficient to reimburse the Registrar far any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond becomes mutilated or destroyed, stolen or lost, the Registrar will deliver a new Band of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon tiling with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar will be named as obligees. All Bands so surrendered to the Registrar will be cancelled by it and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it will not be necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redc~nption are on deposit with the place of payment at that time. 3.04. Appointment of Initial Re tg_strar. The City hereby appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Clerk are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation will be authorized to act as successor Registrar. The City agrees to pay the rea- sonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar will deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this City Council, the City Manager or a designee will transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and will be executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds will cease to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient far all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, no Bond will be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on a Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed. by the same representative. The executed certificate of authentication on each Bond will be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the contraci of sale heretofure made and executed, and the Purchaser will not be obligated to see to the application of the purchase price. 3.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the forn~ set forth in Section 3.07 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. 3.07. Fonn of Bonds. The Bonds will be printed or typewritten in substantially the following form: No. R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUhdTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION STREET REHABILITATION BONDS, SERIES 2007A Date of Rate Maturity Date Original Issue CUSIP September 14, 2007 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing home rule charter city and political subdivision in Anoka County, Minnesota (the 'City"), acknowledges itself to be indebted and far value received hereby promises to pay to the registered owner specified above or registered assigns, the Principal Amount specified above an the Maturity Date specified above, payable February 1 and City Council Minutes Monday, August 27, 2007 Page 19 of 22 August 1 in each year, commencing February 1, 2009, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day} of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota, as Bond Registrar, Authenticating Agent and Paying Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2015, and on any day thereafter to prepay Bonds due on or after February 1, 2016. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $1,000,000, all of like original date and tenor, except as to number, maturity date, redemption privilege and interest rate, issued pursuant to a resolution adopted by the City Council on August 27, 2007 (the "Resolution"), for the purpose of providing funds for the construction and rehabilitation of streets within the City, as authorized by the Charter of the City of Columbia Heights (the "Charter"), pursuant to and in full conformity with the Constitution, the Charter and the laws of the State of Minnesota. The principal hereof and interest hereon are payable from ad valorem taxes levied on all taxable property in the City, and if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or an_y integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon. the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be sun•endered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Band or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental change required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, the Charter and the laws of the State of Minnesota to be done, to happen and to be performed preliminary to and in the issuance of this Bond have been done, have happened and have been performed in regular and due form, time and manner, that prior to the issuance of this bond the City Council of the City of Columbia Heights has provided funds for the payment of principal and interest on the Bonds of this series as the same become due, but the full faith and credit of The City is pledged for their payment and additional taxes will be levied, if required for such purpose, without limitation as to the rate of amount; and that this Bond, together with all other indebtedness of the City outstanding on the date of its issuance, does not exceed any charter, constitutional or statutory limitation thereon. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication. hereon will have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated CITY OF COLUMBIA HEIGHTS, MINNESOTA (facsimile) (facsimile) City I~,anager I<~Iayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative ASSIGNMENT City Council Iviinutes Monday, August 27, 2007 Page 20 of 22 For value received, the undersigned hereby sells, assigns and transfers unto within Band and all rights thereunder, and does hereby irrevocably constitute and appoint said Bond on the books kept for registration of the within Band, with full power of substitution in the premise. Dated: attorney to transfer the Notice: The assignor's signature to this assigmnent must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP°'), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") ar other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1.934, as amended. provided. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is Name and Address: (Include information for all joint owners if the Bond is held by joint account) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-2555119 the Signature of Officer of the Registrar 3.08. Leal Opinion. The City Manager will obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, as bond counsel, which will be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Security; Payment. 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Street Rehabilitation Bonds, Series 2007A Debt Service Fund (the "Debt Service Fund") hereby created, and the proceeds of the ad valorem taxes hereinafter levied are hereby pledged to the Debt Service Fund. If a payment of prineipai or interest on the Bands becomes due when tlteie is nut sufiicicnt ~noncy in the Debt Se; mice Fund to pay the same, the City Manager will pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of the taxes levied by this resolution, when collected. There is appropriated to the Debt Service Fund (i) capitalized interest financed from Bond proceeds, if any, and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any. 4.02. Tax Levy. For the purpose of paying the principal of and interest on the Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in Che City, to be spread upon the tax ro11s and collected with and as part of other general taxes of the City. The tax will be credited to the Debt Service Fund above provided and is in the years and amounts as follows (year stated being year of collection): Year Levy (See EXHIBIT B) 4.03. Debt Set mice Cavera„ e. It is determined that the estimated co!!ect:or. of the toregamg taxes w~~! pronure at toast nve percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds. The tax levy herein provided will be inepealable until all of the Bands are paid, provided that at the time the City makes its annual tax levies the Ciry Manager may certify to the County Auditor of Anoka County the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the County Auditor wilt thereupon reduce the levy collectible during such year by the amount so certified. 4.04. Registration of Resolution. The Ciry Manager is authorized and directed to file a certified copy of this resolution with the County Auditor and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. Cit~Proceedings and Records. The officers of the City are hereby authorized and. directed to prepare and famish to the Purchaser and to the attorneys approving the bonds, certified copies of proceedings and records of the City relating to the bands and to the City Council Minutes Monday, August 27, 2007 Page 21 of 22 tinancial condition and affairs of the City, and such other certificates, aftidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, will be deemed representations ofthe City as to the facts stated therein. 5.02. Certification as to Official Transcript. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the Official Statement, dated August 16, 2007, prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is, as of the date thereof, a complete and accurate representation of the facts and representations made therein as it relates to the City. 5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel} to the Registrar on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 6. Tax Covenants. 6.01. Tax Exemption. The City will comply with requirements necessary under the Internal Revenue Code of 1986, as amended (the "Code") to establish and maintain the exclusion from gross income of the interest on the Bonds under Section I03 of the Code, including without limitation requirements relating to the temporary periods for investments, limitations on amounts invested at a yield greater Chan the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2007) exceed the small-issuer exception amount of $5,000,000. 6.02. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.03. Procedural Requirements. The City will use its best efforts to comply with any federal ptrocedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entry System; Limited Obligation of City. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 2.02 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other tinancial institutions from time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar) of any notice with respeeC to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premiwn, if any, or interest on the Bonds. The „• , „ . - _ •' -~ "^ '"^ ^' ` '~ the re^ strat;On iffy, Cne Bona t~eglstrat atld the raying r~gcnt iffay treat ditd Wueid~Z t15c person in vJhG~c uaiue each Blind iS regFS~ere., in g; books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for alt other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Band Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the effect that DTC has detern~ined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Represen±ation Letter. The City has hPrerLforP eXecuted and delivered rn DTC' a Blanket Issuer letter of Representations (the "Representation Letter") which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Band Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the Ciry will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Band ecrtiftcates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any tune by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. Fn such event, if no successor securities depository is appointed, the City will City Council Minutes Monday, August 27, 2007 Page 22 of 22 issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede 8r Co. Notwithstanding any other provision of this Resolution to the cantrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and all notices with respect to Che Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and cany out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 9. Defeasance. 9.01. Pledges, Covenants, and Other Riehts to Cease. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registraa• a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The motion for adoption of the foregoing resolution was made by Councilmember Diehm and duly seconded by Member Williams, and upon vote being taken thereon, the following voted in favor thereof: Aye: Peterson, Williams, Nawrocki, Diehm, Kelzenberg. and the following voted against the same: None whereupon said resolution was declared. duly passed and adopted the 27`h day of August 2007. YEAR. EXHIBIT A PROPOSALS EXHIBIT B TAX LEVY SCHEDULE TAX LEVY 2008 $38,191.57 2009 128,475.17 2010 130,587.20 20 i 1 i 32,267.20 2012 133.737.20 2013 134,997.20 2014 135,784.70 2015 131,099.07 2016 131,663.45 2017 137,254.70 2018 136,992.20 * Year tax levv collected.