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HomeMy WebLinkAboutJuly 14, 2008OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGIITS CITY COUNCIL MEETING JULY 14, 2008 The fallowing are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, July 14, 2008 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Rev. Ruth Hograbe, Community United Methodist Church gave tl~e Invocation. Present: Mayor Peterson, Councilmember w, Councilmember Nawrocki, Councilmember Dielnn, Councilmember Kelzenberg PLEDGE OF ALLEGIANCE -recited ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson added a Request for Out of State Travel for Councilmember Kelzenberg and himself, which he placed under item C 1 -other business. Mayor Peterson removed Resolutions 2008-158 for 3723 Jackson Street, 2008-152 for 666 40t~' Avenue, and 2008-151 for 1308-1310 Circle Terrace Blvd. in that the properties have been brought in to compliance. Nawrocki added discussion. on the gym and the 2007 Audit. Peterson indicated they could be discussed under the City Manager's report. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS A. Recognition of term end for Charter Commission members Michael Hartel, Jim Johnson, and Scott Kyseth Peterson indicated that Johnson and Kyseth were not present. He acknowledged Michael Hartel's eight years on the Charter Commission and stated that he has been the chair for the last four years. Peterson read the certificate of appreciation. Hartel stated it was a fast eight years and that he learned a lot under aim Hoeft's tutelage and Carole Blowers hard work and Patty Muscovitz's help. He stated his pride to have served. B. Presentation of check by the Boosters Association Mark Vescio, CEO, Columbia Heights Athletic Booster Association, presented the Recreation Departmeni with a $1 S,G00 donation in support of youth activities and athletics to Keith Windschitl, Recreation Director. Windschitl thanked the organization for their continued generosity and support, and indicated the donation would allow a reduction in the cost for youth programs. Mark encouraged all parents of youth to join the Boosters for their monthly meetings held the third Wednesday of each month at Murzyn Hail. Windschitl indicated that the Booster's Golf Tournament spots have been filled. Fehst indicated that the Boosters have donated over $1,000,000 to local youth. He also thanked the organization. Kelzenberg commented on the two triple plays in one inning at the Jamboree tournament and asked if this has ever happened before. Windschitl stated that the coach indicated that he had never before seen it happen and it will be written up in an article, which he will get to Councilmember Kelzenberg. City Council Minutes Monday, July 14, 2008 Page 2 of 18 Nawrocki stated that last Thursday, at Murzyn Hall, Liz Bray and the Recreation Department presented the play "Phantom of the Op'ry" with third through fifth grade participants. There were over 250 people in attendance. On August 6th and 7th, the Moonshoe Players will put on a play called "Who Killed Elvis". They are looking for anyone that might have an Elvis costume to loan. them and asked that you contact Liz Bray at the Recreation Department. Nawrocki noted the passing of Ann Kramer, an active citizen of Columbia Heights. CONSENT AGENDA Nawrocki asked that item 4 -Murzyn Hall renovation be removed far discussion. City Manager Walt Fehst took Council members through the consent agenda items: A. Approve minutes of the June 23, 2008 Columbia Heights City Council meeting, Motion to approve the minutes of the June 23, 2008 City Council meeting. B. Accept minutes of the Columbia Heights Boards and Commissions. Motion to accept the minutes of the Library Board meeting of June 3, 2008. Motion to accept the minutes of the Planning and Zoning Commission of July 1, 2008. Motion to accept the minutes of the Park and Recreation Commission of May 7, 2008. C. Approve the Transfer of Funds from General Fund to Police Department Budget to Reimburse Overtime Fund Motion to transfer $2,427.52 received from Unique Thrift Stores and $3,212.95 received from School District #13, a total of $5,640.47, from the General Fund to the Police Department 2008 Budget under line # 1020, Police Overtime. D. Approve the Transfer of Funds from General. Fund to Police Department Budget Overtime Fund (DTF funds Motion to transfer $1,200, the amount of money received from Anoka County as partial reimbursement for overtime worked by our member in the Anoka/Hennepin Drug Task Force, far the first quarter of 2008 from the General Fund to the Police Department 2008 Budget line # 1020 Overtime. E. Authorize intent to proceed to the next stake of the Murzyn Hall renovation proiect. -removed for discussion. F. Establish a Public Hearing to consider an alle~ght based upon a petition received. Motion to establish Monday, July 28, 2008 at 7:00 p.m. as a Public Hearing for consideration of an alley light behind 4020 Reservoir Blvd. G. Approval of the reissuance of the license to operate a rental unit(s) within the City of Columbia Heights at 1214-16 Cheery Lane N.E. Motion to issue arental-housing license to Peter Sax to operate the rental property located at 1214-16 Cheery Lane N.E. in that the provisions of the residential maintenance code have been complied with. H. Approval of the reissuance of the license to operate a rental unit(s) within the City of Columbia Heights at 563 38th Avenue N.E. Motion to issue arental-housing license to Peter Sax to operate the rental property located at 563 38th. Avenue N.E. in that the provisions of the residential maintenance code have been complied with. City Council Minutes Monday, July 14, 2008 Page 3 of 18 I. Approve Business License Applications Motion to approve the items as listed on the business license agenda for July 14, 2008 as presented. Fehst stated there is an out of state travel policy request for Mayor Peterson and Councilmember Kelzenberg for the National League of Cities conference in Orlando in November. J. Approve payment of the bills. Motion to approve payment of the bills out of the proper fund as listed in the attached check register covering Check Number 126365 through Check Number 12b617 in the amount of $5,285,342.52. Motion by Williams, second by Diehm, to approve the Consent Agenda items with the exception of item E. Upon vote: All ayes. Motion carried. E. Authorize intent to proceed to the next stage of the Murzyn Hall renovation project. Nawrocki stated this action was premature. He spent two hours with staff member Henry Henry, who was very helpful in reviewing the problems. Nawrocki stated that he felt we should have at least one other proposal and referenced Johnson Controls. He questioned where the money would come from, and indicated the understanding that this would be a 15 year program to pay back the cost. There would be a reduction in the contract cost with Honeywell, if we continued with their contract. Williams suggested a study to see if we need to enlarge Murzyn Hall before proceeding with this spending. Fehst indicated that staff did entertain other firms, which were willing to do the initial study; but they gave no guarantee for a savings in energy. The project would be about $1,000,000. Staff considered only replacing the air and heat units to eliminate freezing on the roof, which has caused drainage into the facility. Fehst described other resulting issues, such as rotting wood and sheetrock. He indicated the advantages to look at energy savings for the entire building. Approval of this request would allow Honeywell to submit only specifications and is not a contract. Fehst referred to the excellent service Murzyn Hall lass received from Honeywell. The engineering fees are only part of their total cost. They will get bids on the renovation work. The savings would be about $8,000 a year and would save us $15,000 annually in maintenance costs. Repairs can be considered as pay now or pay later. Diehm stated it is important to understand this is a guaranteed savings program with a unique opportunity to enter into contracts that allows you to replace old, non-energy efficient equipment with equipment that will save money in maintenance and energy consumption. By entering into this program we are guaranteed that we will recover the costs that it takes to install this equipment. We will receive regular reports and if we do not recognize the savings after the 15 years, the contractor writes us a check. This allows us to get the equipment today, without borrowing our own money to proceed. This is a very worthwhile program. Diehm stated she had not realized how bad the issues at Murzyn Hall were. It is a facility that we rent out and shows who we are. It is disturbing to hear stories of weddings where the air conditioning did not work. Staff has worked with Honeywell since last November to put these figures together. Diehm is not opposed to more information, but does not see haw we lose with a guaranteed savings. Waiting another nine to ten months for someone else to do a study would mean. we would wait another year to implement this program. There is a need to have the work done and move forward. Motion by Diehan, second by Kelzenberg, to authorize the Mayor and City Manager to enter into City Council Minutes Monday, July 14, 2008 Page 4 of 18 an agreement with Honeywell indicating the City of Columbia Heights intent to proceed to the next stage of the Murzyn Hall renovation project. Nawrocki stated that you will not get another boiler that will last 69 years. There will also be annual costs to pay off. The savings would be the $1.5,000 reduction in the Honeywell contract, if we continue the contract; and savings in the energy consumption. Fehst referred to energy cost savings of $8,000 per year. Nawrocki stated that we do not know how much of the walls will have to be replaced. He indicated that staff did not get anything in writing from Johnson Controls. We should get at least one other review of the facility. Nawrocki asked again where the funds would came from and wanted to be sure the work would be approved by Council before it is done. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, abstain.; Peterson, abstain ayes, 2 abstentions. Motion carried. Peterson stated that he abstained as he was absent from the work session and would like to research this further. Nawrocki questioned what the lease purchase concept would be. Bill Elrite, Finance Director, indicated it would be a lease purchase agreement or bond sale next year, to cover the cost of the project. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions -none B. Bid Considerations Resolution Awarding the Sale of $10,000,000 in General Obligation Public Safety Center Bonds, Series 20088 Mark Ruff, Ehlers and Associates, indicated this bond sale was this morning. He gave the background of the ordinance process as authorized by City Charter. We worked with the Council. on sizing the bond issue for optimal interest rates by staying at $10,000,000 or lower to take advantage of bank qualification allowed by the IRS. If the Council wishes to go further with additional financing, they would have to go through the Charter provision again. There were seven bids received. The winning bid was Stifel, Nicolaus with a true interest cost of 4.49 percent. The City received an "A-1"rating from Moody's, which is the City's traditional rating. The low bidder did choose to purchase bond insurance, which means the underwriters paid the fee to upgrade these to an AAA rating. Costs were $1,0001ess than projected for the underwriter fees and the cost of issuance was about $15,000 less than projected. Money will be taken from the bond issue to help pay for the first few interest payments, timing the first full payment with the decertification of the tax increment district. With the lower interest rate, the annual debt service is about $23,000 less or about $122,000 on average the first year and a little more than that the later years. The closing will be August 6t". Ruff reviewed the list of bidders and the updated debt service schedule. He indicated the bond resolution for review. The bond ratings agency and the bond purchasers applaud cities that work to improve themselves. Nawrocki stated that the taxpayers should be thanked as they will have to pay for this. Ruff explained the collection timing and indicated their job is to bring in the lowest interest rate for the approved project. Nawrocki questioned the splitting of the bond amounts, which Ruff clarified. City Council Minutes Monday, July 14, 2008 Page 5 of 18 Williams stated that our citizens should be grateful to do this now when the interest rate is low. We will have a legal facility rather that the situation we have now. Diehm echoed his comments and referred to the excitement by the community toward this project. We as council, and staff, have moved the project forward quickly. Motion by Diehm, second. by Williams, to waive the reading of Resolution 2008-160, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Williams, to adapt Resolution 2008-160 being a resolution awarding the sale of $10,000,000 in General Obligation Public Safety Center Bonds, Series 2008B. Peterson thanked Mark Ruff for the good job he has done and accepted his compliment for council, staff, and the conmmunity for moving forward. It is nice to hear positive remarks from outside of our area. Upon vote: All ayes. Motion carried. C. Other Business Authorization to seek bids for Public Safety Center Fehst stated that Randy Engle, Buetow and Associates, and Doc Smith, EDS were present. We are now ready to move forward on this project. There will be up to 20 contracts involved. Doc Smith, Construction Manager, described the soil survey, soil borings, and boundary survey. It was determined that 10,000 yards of material needs to be removed dried and replaced. Doing this should save about $150,000. Bid requests are for earth work, concrete package, bituminous package for construction, ar~d site lighting. Motion by Williams, second by Kelzenberg, to authorize EDS to advertise for bids for the Columbia f-Ieights Public Safety Center. Nawrocki referred to his visits at the Bloomington and Champlin Police facilities. He stated his feeling that we are over-sizing our facility for the police, The direction their city council gave the architect was for a facility that would last 30-40 years, that would be functional, and cost effective. He would like to see the cost of the project brought down. Fehst stated that it is the requirement of the construction imanager to look at alternate bids. He stated that he heard Champlin would now do some things differently than they did. If we can save more money and do the job well, we will. We will make the building as green as we can, including looking to geothermal heating, by Council direction. Nawrocki this would be about an eight percent tax increase. Kelzenberg stated that our Police and Fire Chiefs are happy with this project. Kelzenberg questioned if we are already $150,000 ahead by drying out the soil. Smith described the reason to dry the soil. Kelzenberg thank Smith for his work on this. Upon vote: Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, aye; Peterson, aye. All ayes. Motion carried. City Council Minutes Monday, July 14, 2008 Page 6 of 18 Smith indicated his joy to work with this group, as they are very money conscious. Peterson asked when they would break ground. Smith indicated August 26tH PUBLIC HEARINGS A. Continuation of New Persuective Senior Living Tax Abatement (3801 Hart Blvd Motion by Williams, second by Kelzenberg, to continue the published July 14, 2008 Abatement Public Hearing, for the property located at 3801 Hart Boulevard, to the July 28, 2008 City Council meeting. Upon vote: All ayes. Motion carried. B. Adopt Resolutions being declarations of nuisance and abatement of violations within the City of Columbia Heights• Fire Chief Gary Gorman described the deficiencies. Resolution 2008-153, 4251 Jefferson Street N.E. -repair and replace roof on a shed. Motion by Williams, second by Kelzenberg, to close the public hearing and to waive the reading of Resolution Number 2008-153 there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Williams, second by Kelzenberg, to adopt Resolution Number 2008- 153 a being resolution of the City Council of the City of Columbia Heights declaring the properties listed a nuisance and approving the abatement of violations from the property pursuant to City Code section 8.206. Upon vote: All ayes. Motion carried. C. Adopt Resolutions being Resolutions of the City Council of the City of Columbia Heights approving rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Fire Chief Gary Gorman described the deficiencies. Resolution 2008-154; 4427-29 Main Street -failure to sched~~le inspection and sub?rtit license fees. Resolution 2008-155, 1313-15 Circle Terrace Bivd. - failure to schedule inspection and submit license fees. Resolution 2008-156, 1355-57 Circle Terrace Blvd. -failure to schedule inspection and submit license fees. Resolution 2008-157, 4101 5th Street -scrape/paint and rotten siding on the garage, replace driveway material, repair chimney. Resolution 2008-159, 1324-26 Circle Terrace Bivd. -failure to schedule inspection and submit license fees. Motion by Nawrocki, second by Williams, to close the public hearing and to waive the reading of Resolution Numbers 2008-154, 155, 156, 157, 159 there being ample copies available to the public. Upon vote: Ail ayes. Motion carried. Motion by Nawrocki, second by Williams, to adopt Resolution Numbers 2008-154, 155, 156, 157, 159 being Resolutions 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 licenses listed. Upon vote: All ayes. Motion carried. ADMINISTRATIVE REPORTS Report of the City Manager Nawrocki requested an update on the gym and what it will cost the city for the project. Fehst stated City Council. Minutes Monday, July 14, 2068 Page 7 of 18 that he sent out the list of bids that are to be awarded. Nawrocki questioned what was what is left to be awarded. Windschitl stated the gym equipment, basketball hoops and volleyball nets. The low bid may not be what we want and we want to verify that. The concession area was also delayed to rebid some of the amenities. Nawrocki again questioned the city portion of the cost. Fehst stated that it is on a per foot basis; they will pay for the pool and we will pay for the foundation. Our space is about 13,000 square feet and theirs is about 17,000 square feet. Nawrocki questioned if we are meeting the bid goal. Fehst stated the project is three to four percent under bid. Nawrocki questioned if we have program costs. Fehst has directed staff to research what programs work in other communities. We will have staff there on a regular basis far public use. Nawrocki asked again for casts to operate the public safety facility. Fehst stated that the geothermal will basically be the cast of the electric. Peterson estimated that staffing the gym will cost approximately $75,000 to $125,000 a year. Fehst stated that City Council members just completed a one hour review with our auditor and were given a clean audit. It is typical to have your auditor do a surmnary report. He and the Finance Director did a good job. Fehst referred to mandates and legal stipulations covered in the audit. We are short in fund balances by two to three percent. We do not receive our tax funds until the seventh month of the year, so we are required to carry a large fund balance of almost 50 percent. If anyone is unsatisfied with answers received at the meeting, they can request a special meeting with the auditor. Nawrocki gave his history working with auditors and stated it was ludicrous to only spend an hour on the audit review. We did not get an award for excellence; we received a certificate of achievement, which we paid for, plus our extra time spent to prepare the report. We have trustworthy people in the city, but years ago we did have someone abscond with some money. The point is that part of the audit function is to be assured that things are done properly. He stated his faith in our Finance Director, Bili Elrite. Nawrocki stated he had questioned if a temporary rental license was allowed, referring to a call he received from a LaBelle condo resident. Fehst stated that staff has ilot submitted a final recommendation on the rental license moratorium. He stated that he would not recommend a temporary license. Nawrocki requested a tall grass inspection in the area of 37`h and University. Report of the City Attorney - nothing to report CITIZENS FORUM Tina. Utz announced that he is running for State House Representative in District SOA. He indicated his desire to work with the City Council and staff. COUNCIL CORNER Kelzenberg • Referred to the Green Sheet report of Police Department activity and indicated the new Police Chief is being very pro-active. Listed the number of arrests made. Williams • Jamboree event -the Chief clamped down on the event. Pleased with the Mayor's decision to hire him. Have not heard any negatives from staff. • We need to continue to work with the School District - it has been the highlight of his Council career to work with them. City Council Minutes Monday, July 14, 2008 Page 8 of 18 Tasted the rancid water in Minneapolis and heard that our residents have also experienced this. Fehst stated it will be a problem for several weeks, but the water is still pure. Continue to have a great summer. Diehm Volunteered to serve on the Housing and Economic Development Policy committee. It is a great opportunity to have input and hear what other communities face. If anyone has concerns they would like to voice, let her know. Will not be present at the next City Council meeting. Encouraged everyone to plan for and attend National Night Out on August Stn Nawrocki • On committees for both. the State and League Metro Cities on financial issues for cities. Last week attended the state meeting. Offered his copy of the information received • There was talk of budget issues and the three year 3.9 percent levy limit at the State League meeting. He is the only one to support this. It is not a total levy limit, only on specific sections. The public safety facility would be exempt. It makes you prioritize what you are doing and how you are spending money. Staff can call Gary Carlson at the State offices to find how that will apply. • Governing magazine had an article on performance audits to look at how you are carrying out your duties and if there are more economical ways to care them out. Asked that performance audits be looked at and considered. Peterson • Our Police Officers are doing a fantastic jab. Referred to the Fire department Green Sheet article and their increase of call responses to an average of seven to ten calls a day. He referred to the calls being potentially unsafe. behavior must change. if residents witness something like this, call 911. We will not only improve our houses, but also our community. Our police are doing an excellent job -even being short handed. We want a good community to live in, but it is going to take all of us to do that. • Don't forget our service men and women. • Don't take ourselves too seriously and do a random act of kindness. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:38 p.tn. } ...~..w°'~ 1 4 'k Patricia Muscovitz CMC _ ~ City Clerk/Council Secretary RESOLUTION 2008-153 Resolution. of the City Council far 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 David Bernier (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located. at 4251 Jefferson Street, Columbia Heights, Minnesota. City Council Minutes Monday, July 14, 2008 Page 9 of 18 And whereas, pursuant to Columbia 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 regular mail to the owner of record on June 3, 2008. 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 fallowing: FINDINGS OF FACT 1. That on October 19, 2007 an inspection was conducted on the property listed above. Inspectors found five violations, A compliance order was sent via regular mail to the owner at the address. 2. That on December 1, 2007 an extension far the winter season was granted. Additional time was given to complete repairs of one item 3. That on June 3, 2008 inspectors re-inspected. the property listed above. Inspectors noted that one violation remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 4. That on July 3, 2008 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/replace the roof on the shed. 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 City Code Section 8.206(A} and 8.206(B}. CONCLUSIONS OF COUNCIL l . That the property located at 4251 Jefferson Street is in violation of the provisions of the Columbia Heights City Cade 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 4251 Jefferson Street 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. RESOLUTION 2008-1.54 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental. license held by Bryant Bentley (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4427-4429 Main Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section. SA.40$(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 12, 2008 of an public hearing to be held on July14, 2008. 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 or about April 15, 2008, 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 3une 12, 2008 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 schedule a rental property inspection and failure to submit renewal rental license application and fees. 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 III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8421 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; City Council Minutes Monday, July 14, 2008 Page 10 of 18 3. All tenants shall remove themselves from the premises within 60 days from the first day of pasting of this Order revoking the license as held by License Holder. RESOLUTION 2008-155 Resolution of the City Council for the City of Columbia Heights approving revocation. pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Mortgage Electronic Registration System (Hereinafter "License Holder"}. Whereas, license holder is the legal owner of the real property located at 131.3-1.315 Circle Terrace Blvd. N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, 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 June 12, 2008 of an public hearing to be held on July14, 2008. 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 or about April 15, 2008, 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 June 12, 2008 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 schedule a rental property inspection and failure to submit renewal rental license application. and fees. 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 III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8438A is hereby revoked; 2. The City wilt 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. RESOLUTION 2008-156 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section 5A.408(A) of that certain residential rental license held by Judith Germain (Hereinafter "License Holder"). Whereas, license holder is the legal. owner of the real property Located at 1355-1357 Circle Terrace Blvd. N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, Section. 5A.408(B}, written. notice setting forth. the causes and reasons for the proposed Council action contained herein was given to the License Holder on June 12, 2008 of an public hearing to be held on July14, 2008. 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 or about April I5, 2008, 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 June 12, 2008 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 properly 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 schedule a rental property inspection and failure to submit renewal rental license application and fees. 4. That all parties, including the License Holder and any occupants or tenants, have been given the appropriate notice of City Council Minutes Monday, July 14, 2008 Page 11 of 18 this hearing according to the provisions of the City Code, Chapter SA, Article III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8363 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 pasting of this Order revoking the license as held by License Holder. RESOLUTION 2008-1.57 Resolution of the City Council. for the City of Columbia Heights approving revocation pursuant to City Code, Chapter SA, Article IV, Section SA.408(A) of that certain residential rental license held by Amir Shahsaband (Hereinafter "License Holder"). Whereas, license holder is the legal owner of the real property located at 4101 5`'' Street N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, 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 June 10, 2008 of an public hearing to be held. on July 14, 2008. 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 April 30, 2008 inspectors for the City of Columbia Heights, inspected the property described. above and noted seven violations. A compliance letter listing the violations was mailed by regular mail to the owner at the address listed on the Rental Housing License Application. 2. That on June 10, 2008 inspectors for the City of Columbia Heights, performed a final inspection at the property and noted four violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed. on the rental housing license application. 3. That on July 1, 2008 inspectors for the City of Columbia Heights performed a reinspection and. noted that four violations remained uncorrected. 4. 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: Sha11 scrape/paint the garage, shall repair the rotten siding on the garage, shall replace all/any driveway material that is not asphalt o_r c_oncrPte, shall repair the chimney on the house that is falling apart. 5. 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 III SA.306 and SA.303(A). ORDER OF COUNCIL I. The rental license belonging to the License Holder described herein and identified by license number F8926 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. RESOLUTION 2008-159 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 Greg Wilson {Hereinafter "License Holder"}. Whereas, license holder is the legal owner of the real properly located at 1324-1.326 Circle Terrace Blvd. N.E., Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter SA, Article IV, 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 June 12, 2008 of an public hearing to be held on July14, 2008. 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 or about April 15, 2008, 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 City Council Minutes Monday, July 14, 2008 Page 12 of 18 records. 2. That on June 12, 2008 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 renewal rental. license application and fees. 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 III SA.306 and SA.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F8333 is hereby revoked; 2. The City will past 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. RESOLUTION N0.2008-160 RESOLUTION AWARDING THE SALE OF $10,000,000 GENERAL OBLIGATION PUBLIC SAFETY CENTER BONDS, SERIES 2008B, FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council (the "Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. 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 purchase or erection. of needful public buildings within the City. The City therefore intends to issue its general obligation bonds pursuant to the Charter to finance a new public safety center for the City's police and fire departments (the "Project'"). 1.02. On March 24, 2008 the Council conducted a first reading of an ordinance authorizing the City to issue its general obligation bonds in the maximum principal amount of $l 1,500,000 to finance the Project (the "Ordinance"). 1.03. On April. 14, 2008, 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 official 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. 1.05. At its June 23, 2008 meeting, the Council authorized the reduction of the principal amount of the Bonds to $1.0,000,000, with the intent tc issue future additional obligations to finance the Project. Section 2. Sale of Bonds. 2.01. Award to Purchaser. The proposal of Stifle, Nicolaus & Co., Inc., Minneapolis, Minnesota (the "Purchaser') to purchase the City's $ 10,000,000 General Obligatio n Public Safety Center Bonds, Series 20088 (the "Bands") described in the 'Perms oI' Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $9,925,904.85, for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2011 4.30% 2018 4.30% 2012 4.30 2019 4.30 2013 4.30 2020 4.30 2014 4.30 2021 4.30 2015 4.30 2022 4.30 2016 4.30 2023 4.30 2017 4.30 2024 4.35 Term Bonds due February 1, 2026 at 4.35%. Term Bonds due February 1, 2028 at 4.35%. Term Bonds due February 1, 2030 at 4.40°ro. Term Bonds due February 1, 2032 at 4.45%. Term Bonds due February 1, 2035 at 4.50%. Term Bonds due February 1, 2038 at 4.55%. True Interest Cost: 4.4946197% 2.02. Purchase Conh~act. The sum of $904.85 being the amount proposed by the Purchaser in excess of $9,925,000 shall be credited to the Construction Fund under Section 4.O1 hereof. The City Finance Director 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 Mayor and the City Manager are directed to execute a contract with the Purchaser on behalf of the City. City Council Minutes Monday, July t4, 2008 Page 13 of 18 2.03. Terms and Principal Amounts of the Bonds. The City will forthwith issue the Bonds pursuant to the Charter, in the total principal amount of $10,000,000, originally dated as of August 6, 2008, 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 serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2011 $190,000 2018 $250,000 2012 200,000 2019 260,000 2013 205,000 2020 270,000 2014 215,000 2021 285,000 2015 220,000 2022 295,000 2016 230,000 2023 310,000 2017 240,000 2024 320,000 Term Bonds due February 1, 2026 in the aggregate principal amount of $685,000. Term Bonds due February 1, 2028 in the aggregate principal amount of $755,000. Tenn Bonds due February 1, 2030 in the aggregate principal amount of $830,000. Term Bonds due February 1, 2032 in the aggregate principal amount of $910,000. Term Bonds due February 1, 2035 in the aggregate principal amount of $1,545,000. Term Bonds due February 1, 2038 in the aggregate principal amount of $1,785,000. 2.04. Optional Redem tp ion. The City may elect on February 1, 2018, and on any date thereafter to prepay Bonds due on or after February 1, 2019. 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. 2.07. Mandatory Redem tp ion. The Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date Principal. Amount February 1, 2026 Term Bonds 2025 2026 (maturity) 350,000 2028 Term Bonds 2027 2028 (maturity) 385,000 2030 Term Bonds 2029 2030 (maturity) 425,000 2032 Term Bonds 2031 2032 (maturity) 465,000 2035 Term Bo_n_ds 2033 2034 2035 (maturity} 540,000 2038 Term Bonds 2036 2037 2038 (maturity} 625,000 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. $335,000 370,000 405,000 445,000 490,000 515,000 565,000 595,000 All 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 1 and August 1 in each year, commencing February 1, 2009, 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: City Council Minutes Monday, July 14, 2008 Page 14 of 18 (a) Register. The Registrar will keep at its principal corporate trust office a bond register in which the Registrar will provide for the registration of ownership of fonds and the registration of transfers and exchanges of Bonds entitled to he registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any fond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar. duly executed by the 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 Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month 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. All Bonds surrendered upon a transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of directly by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer 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. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond is overdue or not, for the purpose of receiving payment of or on account of,, the principal of and interest on such Bond and for all. other purposes, and all such payments so made to any such registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums to be paid. (g) Taxes, Fees and Charees. The Registrar may impose a charge upon the owner thereof for every transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h} Mutilated, Lost. Stolen or Destroyed Bands. In case any Bond becomes mutilated or destroyed, stolen or lost, the Registrar will deliver a new Bond 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 filing 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 Bonds 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.) 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 a11er the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 3.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or 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 reasonable 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 Finance Director will transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 3.0~. 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 for 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 Finance Director will deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore 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 form 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. Form of Bonds. The Bonds will be printed. or typewritten in substantially the following form: City Council Minutes Monday, July 14, 2008 Page I S of 18 No. R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGI-ITS GENERAL OBLIGATION PUBLIC SAFETY CENTER BONDS, SERIES 20088 Date of Rate Maturity Date Original Issue CUSIP February 1, 20_ August 6, 2008 Registered Owner: Cede & Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation and political subdivision located in Anoka County, Minnesota (the "City"}, acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner specified above or registered assigns, the principal amount of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and 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 fifteenth 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, 2018, and on any date thereafter to prepay Bonds due on or after February 1, 2019. 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. The Term bonds are subject to mandatory sinking fund redemption and shall be redeemed in part by lot at par plus accrued interest on the sinking fund installment dates and in the principal amounts as follows: Sinking Fund Installment Date Principal Amount February 1, 2026 Term Bonds 2025 $335,000 2026 (maturity) 350,000 2028 Term Bonds 202 7 370,000 2028 (maturity) 385,000 2030 Term Bonds 2029 405,000 2030 {maturity/ 425,000 203 Term Bonds 2031 445,000 2032 (maturity) 465,000 2035 Term Bonds 2033 490,000 2034 515,000 2035 {maturity} 540,000 2038 Term Bonds 2036 565.000 2037 595,000 2038 {maturity} 625.000 The specific Term Bonds to be redeemed will. be selected by lot by the Registrar. All. prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $10,000,000, 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 July 14, 2008 (the "Resolution"), for the purpose of providing funds for the construction of a new public safety center for the police and fire departments 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, including Minnesota Statutes, Chapter 475. The principal hereof and interest hereon are payable from ad valorem taxes levied on all taxable property hi 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 any integral multiple thereof of single maturities. City Council Minutes Monday, July 14, 2008 Page 16 of 18 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 the owner's 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 surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal. amount, 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 wii3 be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Charter and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Kesolution 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 the City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF COLUMBIA HEIGHTS, MINNESOTA CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint Bond on the books kept for registration of the within Bond, with full power of substitution in the premise. Dated: the attorney to transfer the said Notice: The assignor's signature to this assignment 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: Signatures} must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP'"), the Stock Exchange l~ledallion Prcgram ("SE1v.P"), the New York Stock Exchange, Inc. Medallion Signatures Program ("1`vISP'") or 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 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account) PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond bas been registered on the books of the Registrar in the name of the person last noted below. Signature of Date of Kegistration Registered Owner Officer of the Registrar Cede & Co. Federal ID #13-2555119 3.08. Legal Opinion. The City Finance Director 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. (a) Debt Service Pund. The Bonds will be payable from the General Obligation Public Safety Center Bonds, Series 20088 Debt Service Fund (the "Debt Service Fund") hereby creased, and the proceeds of the ad valorem taxes hereinafter levied are hereby pledged to the Debt Service Pund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director 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 $314,193.92, representing capitalized interest financed from Bond proceeds. (b) Construction Fund. The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Project and any amounts in excess of the minimum proposal designated for deposit herein in accordance with Section 2.02 hereof, will be deposited in a separate construction fund (the "Construction Fund") to be used solely to defray expenses of the Project. When City Council Minutes Monday, 3uly 14, 2008 Page I7 of 18 the Project is completed and the cost thereof paid, the Construction Fund is to be closed and any balance in the fund is to be deposited in the Debt Service Fund. 4.02. Pledge of Taxes. 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 the Ciry, to be spread upon the tax rolls and collected with and as part of other general taxes of the City. The tax will be credited to the Debt Service Fnnd above provided and is in the years and amounts as follows (year stated being year of collection): Year Levv (See EXHIBIT B) 4.03. Debt Service Coverage. It is determined that the estimated collection of the foregoing taxes will produce at least five 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 irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the City 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 will thereupon. reduce the levy collectible during such year by the amount so certified. 4.04. Registration of Resolution. The City Clerk is authorized and directed to file a certified copy of this Resolution with the County Auditor of Anoka County and to obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. City ProceedinQS and Records. The officers of the City are hereby authorized and directed to prepare and furnish. to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial. condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their 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 of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, the City Finance Director and the City Manager are hereby authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is, 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. Pavment 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-Exemnt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken. by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, anal that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. No Rebate Required. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States, to the extent the Bonds do not qualify for an exemption from rebate under the Code and related Treasury Regulations. 6.03. 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. 6.04. Qualified, Tax-Exempt Obligations. In order to qualify the Bonds as ``qualified tax-exempt obligations" within. the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a} the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b} the City designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b}(3} of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2008 will not exceed $10,000,000; and (d) not more than $10,000.000 of obligations issued by the City during calendar year 2008 have been designated for purposes of Section 265(b}(3) of the Code. 6.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Enirv System: Limited Oblieation 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 2.03 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 Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial 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 City Council Minutes Monday, July 14, 2008 Page 18 of I8 any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Registrar) of any notice with respect 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 or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. 7'he Paying Agent will pay all principal of 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 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 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 Registrar, will receive a certificated Bond evidencing the obligation of this Resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined 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 Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter"j which shall govern payment of principal of and. interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or 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 Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entr~S sue. 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 City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. 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 time by giving notice to the City and discharging its responsibilities with. respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the 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 & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of and interest on the Bond and all notices with. respect to the 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. Ci Com Hance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry 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 specifrc 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 anal 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. 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 halders of the Bands will cease, except that the pledge of the full faith acid credit of the City for tl~e prompt and full payment of the principal of and interest on the Bonds will remain in fuII 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 Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit.