HomeMy WebLinkAboutJune 8, 2009OFFICIAL PROCEEDINGS
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL MEETING
JUNE 8, 2009
The following are the minutes for the regular meeting of the City Council held at 7:00 p.m.
on Monday, June 8, 2009 in the City Council Chambers, City Hall, 590 40th Avenue N.E.,
Columbia Heights, MN. (Resolutions p~°inted at the end of this document)
CALL TO ORDER/ROLL CALL/INVOCATION
Rev. Dave Briley, Oak Hill Baptist Church, gave the Invocation.
Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki,
Councilmember Diehm, Councilmember Kelzenberg
PLEDGE OF ALLEGIANCE -recited
ADDITIONS/DELETIONS TO MEETING AGENDA
Peterson removed Resolution 2009-81 as the property has been brought into compliance,
and replace the bond approval Council letter, as a motion was added.
Nawrocki asked that the City Manager report on the June 1 work session and the May 27
EDA agenda. He questioned if the University Heights TIF District was to be on this
meeting. Scott Clark, Community Development Director, stated this would come forward
on June 22, 2009 and will be posted in the local paper.
PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS,
GUESTS
A. 2009 Citizen of the Year -Humanitarian Award -Howie Haeg
Mayor Peterson introduced Howie Haeg, Citizen of the Year. He read the bio on Mr.
Haeg and presented him with a plaque and gifts. Mr. Haeg thanked everyone and
indicated his pleasure to receive this award.
CONSENT AGENDA
Nawrocki requested to remove item C for discussion.
City Manager Walt Fehst took Councilmembers through the Consent Agenda items.
A. Approve the minutes of the May 26, 2009 City Council meeting
Motion to approve the minutes of the May 26, 2009 City Council meeting.
B. Accept the minutes of the Columbia Heights Boards and Commissions.
Motion to accept the Apri128, 2009 minutes of the Economic Development
Authority.
Motion to accept the June 2, 2009 minutes of the Planning and Zoning Commission.
C. Adopt Resolution 2009-72, being a resolution waiving the tort liability limits and
authorize insurance agreement with the LMCIT. -removed
D. Adopt Resolution 2009-73, being a resolution approving a Conditional Use Permit for
Outdoor Sale and Display at 4340 Central Avenue.
Motion to waive the reading of Resolution 2009-73, there being ample copies
available to the public.
Motion to adopt Resolution No. 2009-73, approving a Conditional Use Permit for an
outdoor sales/display establishment located at 4340 Central Avenue, subject to the
conditions outlined in Resolution No. 2009-73.
E. Approval of the attached list of rental housing license applications, in that they have
rnet the requirements of the Property Maintenance Code.
Motion to approve the items listed for rental housing license applications for June 8,
2009.
F. Approve Business License Applications
Motion to approve the items as listed on the business license agenda for June 8, 2009
as presented.
G. Approve payment of the bills.
Motion to approve the payment of the bills out of the proper fund as listed in the
attached register covering Check Number 130506 through Check Number 130645 in
the amount of $1,068,594.27.
Nawrocki questioned if the permit for outdoor sales at the hardware store allows sales
all year around. Fehst stated yes. Peterson stated that like at their previous location,
items will be removed after the growing season.
Motion by Nawrocki, second by Diehm, to approve the Consent Agenda items, with the
exception of item C. Upon vote: All ayes. Motion carried.
C. Adopt Resolution 2009-72, being a resolution waiving the tort liability limits and
authorize insurance agreement with the LMCIT.
Bill Elrite, Finance Director, stated this request is for renewal. of property and liability
insurance. We have been with the League of Minnesota Cities Insurance Trust for the last
seven years. This will reaffirm waiving the torte liability limits and increase of the
amount of liability insurance by $1,000,000. Under the torte liability limit only $400,000
could be collected. Waiving this allows collection up to our limit. The contract is
$257,226.00.
Motion by Nawrocki, second by Diehm, to authorize the Mayor and City Manager to
enter into an agreement with the League of Minnesota Cities Insurance Trust to renew the
City's liability and property insurance coverage, including excess liability insurance of
$1,000,000 and waiving the tort liability limits. Upon vote: All ayes. Motion carried.
Motion Nawrocki, second by Kelzenberg, to waive the reading of Resolution 2009-72,
there being ample copies available to the public. Upon vote: All ayes. Motion carried.
Motion by Diehm, second by Kelzenberg, to adopt Resolution 2009-72, being a
resolution waiving the tort liability limits. Upon vote: All ayes. Motion carried.
PUBLIC HEARINGS
A. Adopt Resolution 2009-74, awarding the Sale of $3,935,000 in General Obligation
Public Facilities Bonds Series 2009A and Resolution 2009-75 for $580 000 in
General Obligation Taxable Tax Increment Financing Bonds, Series 2009B.
Motion by Kelzenberg second by Williams, to waive the reading of Resolution 2009-
74, there being ample copies available to the public. Upon vote: All ayes. Motion
carried.
Motion by Williams, second by Kelzenberg, to adopt Resolution 2009-74 being a
resolution awarding the sale of $3,935,000 in General Obligation Public Facilities
Bonds, Series 2009A.
Elrite stated that Mark Ruff, Bond Counsel of Ehlers and Associates, would arrive at
7:30 p.m.
At 7:25 p.m. Mark Ruff indicated that Bond Resolution 2009-74 is for public service
including the public safety building, Murzyn Hall energy improvements, water lining
and repair work and the assessment portion of the 2007 and 2009 street
improvements; totaling $3,935,000. Five bids were received with interest rates
ranging from 4.1569 to 4.3594 percent. This did go through the City's Charter
process. We came in two-thirds of a percent lower than anticipated; saving on the
annual debt service cost by $10,000 per year over what was projected. Part of the
reason for this was a better market, but also that the City of Columbia Heights credit
rating was upgraded from an A range to a mid-AA range from Standard and Poor's.
This is something to be very proud of. They said we have healthy finances as
demonstrated by a strong fund balance. They pointed out the city's good financial
management planning and procedures, including the four year budget forecast.
Ruff presented a rating certificate upgrade plaque to the city from Ehlers and
Associates and read the inscription. Peterson stated that the City Manager and
Finance Director should be very proud of this, as should the Council. Ruff stated that
taking active steps is important.
Ruff stated that the low bid is Cronin and Company. He indicated that these interest
rates are very close to the interest rates obtained in 2008. On behalf of Ehlers and
Associates, Ruff recommended award of the bond sale to Cronin and Company.
Nawrocki stated that we are going heavier in debt than we need to. The bonding for
the public safety building was increased by $500,000 and we could have used existing
funds for the Murzyn Hall project.
Upon vote: All ayes. Motion carried.
Ruff indicated that, after discussion, the second bond amount of $930,000 was
reduced to $580,000, because the Legislature approved an extension of a five year
deadline. There were two bids for this bond at a rate of 4.8682 percent, lower than the
anticipated 4.9634 percent. He recommended, given the interest rates, Council
approval.
Nawrocki stated the present commitment to the K-Mart developer is $700,000. Ehlers
stated that we have collected over $400,000. Nawrocki stated that we expect to
receive $129,000 this year. We will have to get $700,000 for what is committed on
the site. Ruff indicated that is anticipated to be collected by 2011. The end of the term
for the district is 2020.
Nawrocki stated his opposition to this bond issue, as funds will not go to help pay for
city services and citizens will pay additional dollars. We have had double digit
increases over the past several years and the City Manager anticipates an increase
next year of 13.5 percent. We must rein in the property tax increases.
Motion by Diehm, second by Williams, the reading of Resolution 2009-75, there
being ample copies available to the public. Upon vote: All ayes. Motion carried.
Motion by Diehm, second by Williams, to adopt Resolution 2009-75 being a
resolution awarding the sale of $580,000 in General Obligation Taxable Tax
Increment Financing Bonds, Series 2009B. Upon vote: Kelzenberg, aye; Williams,
aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes - 1 nay. Motion carried.
Motion by Diehm, second by Kelzenberg, to authorize and approve the Tax
Increment Pledge Agreement by and between the City of Columbia Heights,
Minnesota and the Columbia Heights Economic Development Authority. Upon vote:
Kelzenberg, aye; Williams, aye; Diehm, aye; Nawrocki, nay; Peterson, aye. 4ayes -
nay. Motion carried.
Fehst commended this City Council and previous councils for maintaining a fund
balance. The fact that our bond rating has gone up two levels is significant.
B. Adopt Resolutions 2009-79, 4138 Quincy Street N.E., 2009-80, 3915 Tyler Street
N.E., and 2009-81, 4344 2nd Street N.E. being Resolutions approving rental license
revocation for failure to meet the requirements of the Property Maintenance Codes.
Gary Gorman, Fire Chief, stated that 413 8 Quincy Street has not had the re-
inspection completed and the 3915 Tyler Street revocation is for failure to submit an
application.
Motion by Nawrocki, second by Williams, to close the public hearing and to waive
the reading of Resolution Numbers 2009-79, 80, and 81, there being ample copies
available to the public. Upon vote: All ayes. Motion carried.
Motion by Nawrocki, second by Williams to adopt Resolution Numbers 2009-79 and
2009-80, 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.
Nawrocki stated that these properties also have very long grass.
Upon vote: All ayes. Motion carried.
C. Adopt Resolutions 2009-76, 4039 5th Street N.E., 2009-77, 4448 Quincy Street N.E.,
and 2009-78, 3930 University Avenue N.E. being declarations of nuisance and
abatement of violations within the City of Columbia Heights•
Gorman stated that all three properties abatements were for immediate securing of the
properties.
Motion by Williams, second by Nawrocki, to close the public hearing and to waive
the reading of Resolution Numbers 2009-76, 77, and 78 there being ample copies
available to the public. Upon vote: All ayes. Motion carried.
Motion by Nawrocki second by Williams, to adopt Resolution Numbers 2009-76, 77,
and 78 being resolutions of the City Council of the City of Columbia Heights
declaring the properties listed a nuisance and approving the abatement of violations
from the properties pursuant to City Code section 8.206. Upon vote: All ayes. Motion
carried.
ITEMS FOR CONSIDERATION
A. Other Ordinances and Resolutions -none
B. Bid Considerations -none
C. Other Business -none
ADNIINISTRATIVE REPORTS
Report of the City Manager
Fehst stated that discussion at the June 1 work session included a request from
Immaculate Conception School for fencing because of the new public safety building.
Councilmember Williams offered the Bobby and Steve's Youth Foundation to take on
this $4,000 obligation. This is in addition to their goal to raise funds for play equipment
at Castle Heights and Huset Park. Also discussed was presenting the annual audit at the
City Council meeting, insurance renewal, and ordinances for excessive calls for police
service and carrying of replica fire arms.
Fehst referred to the home tour taken by the EDA to view housing issues. The Council
has not made a decision to support any type of home sale compliance requirements, but
will continue to look at options. Habitat for Humanity is looking for endorsement to
rehab one home. Modification of the University Avenue C8 TIF District will be discussed
June 23. We hope to obtain funding from NSPII.
Nawrocki stated that with the audit report we must have enough time to go through the
audit and have our questions answered. The new fire service call charges should be
included in the City newsletter. He requested a regular report on the number of calls, how
they are being charged, and the number of Columbia Heights residents charged. On the
former RIBS program potential schedule, it appears this will come before Council before
a Council meeting for public comment. There should be more information on this in the
City newsletter. The duplex toured could be fixed up and should not be demolished.
Williams asked if our bond rating had ever been this high. Fehst stated no and Nawrocki
agreed. Williams stated this is quite an achievement for our city. Fehst stated he has
never been in a city that has had this big of a jump in one year. Williams stated that as the
rating goes up, our interest rate goes down. The City Manager and staff should receive
credit for this. Fehst commended the Council for looking at a three year tax plan. With
this type plan, we would not depend on Local Government Aid in four years. Extending a
tax increment district is a minimal way to work toward improvements.
Report of the City Attorney -nothing to report
CITIZENS FORUM
Dwayne Morrell, 4212 Reservoir Boulevard, suggested a referendum ballot for the
proposed bridge project. He had suggested a $10 or $20 million bond for rehabilitation of
homes. You are parlaying the funds to keep the program going.
Deb Johnson, 4626 Pierce Street, stated that the bridge discussion has been very open and
televised. Peterson stated that there are public hearings scheduled.
Donna Schmitt, 4260 Tyler Street, stated that the City of Coon Rapids refurbished an 800
foot square home, showing people how to upgrade to a 1,000 square feet home. They are
showcasing this home to the public with tours. This is just another option. We could have
such a program and possibly have a contest for people that have used our programs to
upgrade their home, have residents vote, and award a $1,000 incentive prize.
COUNCIL CORNER
Nawrocki
• Read the report from college students that attended our meeting on their view of
the meeting.
Diehm
• Referred to an article called "Jail time for dirty pools and dirty lawns" -from the
Wall Street Journal regarding criminal penalties for lenders that do not take care
of foreclosed homes.
• This is the last week of school for Columbia Heights students. Graduation is
tomorrow; we wish them the best of luck. Be aware that kids are out and about.
• The need at food shelves increases during the summer months. Oak Hill Baptist
Church will offer free lunches, all summer, to children up to 18 years of age.
• We will celebrate the grand opening of the two new gyms this Thursday from
4:00 to 8:00 p.m.
Kelzenberg
• Read a police item from the green sheet of a shooting incident. Watch out for
motorscooters. Talk to your children about bike safety.
Williams
• There will be a big fundraiser and celebration as a prelude to the Jamboree to
raise funds for play equipment for two parks. There will be a dinner and dance on
Friday night and on Saturday six bands will play in the park. Other supporter are:
MN Zoo, BBW, Sarna's, Bobby and Steve's AutoWorld, Holy Land, Tasty Pizza,
Porta Del Sol, and Smokin' Joes. Requested volunteers for Friday night and
Saturday.
Peterson
• The Heights Art Committee received a grant for a sculpture at the high school
gyms. We hope to have this in place by October of 2009.
• Sister City Committee Youth Art Contest winner, Ashley Genadek, won our local
art contest and went on to win the Washington DC contest. She won a $1,200
prize and $2,000 to attend the Sister City Conference in Belfast, Ireland.
• The Safety Camp is this Thursday. The cost is $5 with our Fire and Police
Departments, Minnesota Computer, and a State Patrol helicopter present.
• There are openings in our youth summer programs; Wild Wednesdays and youth
trips.
• The gyms are ready to use. Opening ceremony will be at 4:00 p.m. this Thursday
with a ribbon cutting and activities to follow. There will be a place to give your
ideas to utilize the gym or to volunteer. The goal is to wear the floor out. The
police have a 3-on-3 basketball program and we may have a boxing program -the
sky is the limit.
• Don't take ourselves too seriously and do a random act of kindness.
ADJOUPNMENT
~,. Mayor Peterson adjourned the meeting at 8:29 p.m.
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Patricia Muscovitz CMC Ci~y Clerk
RESOLUTION N0.2009-73
RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR FRATTALLONE'S ACE HARDWARE WITHIN THE
CITY OF COLUMBIA. HEIGHTS, MINNESOTA
WHEREAS, a proposal (Case #2009-0602) has been submitted by Michael Frattallone to the City Council requesting a
conditional use permit from the City of Columbia Heights at the following site:
ADDRESS: 4340 Central Avenue.
LEGAL DESCRIPTION: On file at City Hall.
THE APPLICANT SEEKS THE FOLLOWING PERMIT: A Conditional Use Permit per Code Section 9.110 (F)(3)(d), to allow
outdoor sales/display.
WHEREAS, the Planning Commission has held a public hearing as required by the city Zoning Code on .Tune 2, 2009;
WHEREAS, the City Council has considered the advice and recommendations of the Planning Commission regarding the effect
of the proposed conditional use permit upon the health, safety, and welfare of the community and its Comprehensive Plan, as
well as any concerns related to compatibility of uses, traffic,, property values, light, air, danger of fire, and risk to public safety in
the surrounding areas; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights after reviewing the proposal,
that the City Council accepts and adopts the following findings of the Planning Commission:
1. The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar
use as determined by the Zoning Administrator.
2. The use is in harmony with the general purpose and intent of the Comprehensive Plan.
3. The use will not impose hazards or distributing influences on neighboring properties.
4. The use will not substantially diminish the use of property in the immediate vicinity.
~. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing
or intended character of the surrounding area.
6. The use and property upon which the use is located are adequately served by essential public facilities and services.
7. Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate
on-site circulation of traffic.
8. The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in
the immediate vicinity.
9. The use complies with all other applicable regulations for the district in which it is located.
FURTHER, BE IT RESOLVED, that the attached conditions, maps, and other information shall become part of this permit and
approval; and in granting this permit the city and the applicant agree that this permit shall become nul I and void if the project has not
been completed within one (1) calendar vear after the approval date, subject to petition for renewal of the permit.
CONDITIONS ATTACHED:
1. The outdoor sales/display area is limited to the nine (9) parking stalls as denoted on the submitted site plan.
2. The outdoor sales/display use shall be accessory to a commercial use.
3. All outdoor sales/display areas shall meet the setback requirements for a principal structure in the zoning district in which it is
located.
4. Outdoor sales/display areas within the public right-of--way are prohibited.
5. All goods shall be displayed in a designated area that is hard surfaced.
6. All goods shall be displayed in an orderly fashion, with access aisles provided as needed.
7. Music or amplified sounds shall not be audible from adjacent residential properties.
RESOLUTION N0.2009-72
BEING A RESOLUTION WAIVING THE STATUTORY TORT LIABILITY LIMITS
WHEREAS, the City of Columbia Heights is a Minnesota political subdivision desiring to self-insure its property and liability risks through
participation in a joint powers arrangement known as the League of Minnesota Cities Insurance Trust (LMCIT); and
WHEREAS, Minnesota Statute Section 471.981 permits a city to extend the coverage of its self insurance to afford protection in excess of any
limitations on liability established by law; and
WHEREAS, Minnesota Statute Section 471.981 provides that unless expressly provided in the ordinance or resolution extending the coverage,
the statutory limitations on liability shall not be deemed to have been. waived.
NOW, THEREFORE, BE IT RESOLVED that the Columbia Heights City Council does hereby accept excess liability coverage limits of
$1,000,000 from the League of Minnesota Cities Insurance Trust and the City waives the monetary limits of tort liability established by
Minnesota Statute Section 466.04, to the extent of the limits of the liability coverage obtained from LMCTT.
RESOLUTION N0.2009-74
A RESOLUTION AWARDING THE SALE OF $3,935,000 GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2009A;
FIXING THEH2 FORM AND SPECIFICATIONS;DIltECTING TIIEIIt EXECUTION AND DELIVERY; AND PROVIDING FOR
THEHtPAYMENT
City Council Minutes
Monday, June 08, 2009
Page 8 of 25
BE IT RESOLVED By the Ciry Council (the "Council") of the City of Columbia Heights, Anoka County, Minnesota (the "City") as
follows:
Section I. Recitals.
1.01. Public Safety Center and Murzyn Hall. 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 and
any other public convenience from which a revenue is or may be derived. The City therefore intends to issue its general obligation bonds
pursuant to the Charter to finance (i) a new public safety center for the police and fire departments (the "Public Safety Center"), and (ii) energy-
efficient improvements to Murzyn Hall ("Murzyn Improvements"). The Public Safety Center and the Murzyn Improvements are collectively
referred to herein as the "Public Facilities Improvements." The City has previously issued its General Obligation Public Safety Center Bonds,
Series 20088, in the aggregate principal amount of $].0,000,000, to finance a portion of the construction and equipping of the Public Safety
Center.
1.02. Watermain Improvements. The City is authorized by Minnesota Statutes, Section 444.075, as amended (the "Utility Act"),
to issue its general obligation bonds to defray the costs of certain watermain improvements. The City therefore intends to issue its general
obligation bonds pursuant to the Utility Act and Minnesota Statutes, Chapter 475, as amended ("Chapter 475"), to undertake various water
lining projects within the City's watermain system (the "Watermain Improvements").
1.03. Street and Allev Reconstruction. The City is authorized by Minnesota Statutes, Chapter 429, as amended (the '`Assessment
Act"), to issue its general obligation bonds to defray the costs of certain street and alley improvements. The City therefore intends to issue its
general obligation bonds pursuant to the Assessment Act and Chapter 475 to undertake various street and alley rehabilitation and reconstruction
improvements, identified as Project No. 2007-02 and Project No. 2009-02 (collectively, the "Street Improvements"). The Public Facility
Improvements, the Watermain Improvements, and the Street Improvements are collectively referred to herein as the "Projects."
1..04. Ordinance Readings. On April 13, 2009, the Council conducted a first reading of an ordinance authorizing the City to issue
its general obligation bonds in the maximum principal amount of $3,935,000 to finance the Projects (the "Ordinance"). On April 27, 2009, the
Council conducted a second reading of the Ordinance and adopted the Ordinance, subject to referendum as described in the Charter.
1.05. Publication of Ordinance; No Petition for Referendum. 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.
Section 2. Sale of Bonds.
2.01. Award to Purchaser and Interest Rates. The proposal of Cronin & Company, Inc. (the "Purchaser") to purchase $3,935,000
General Obligation Public Facilities Bonds, Series 2009A (the "Bonds") of the City described in the Terms of Proposal thereof is determined to be a
reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $3,937,298.20 for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2010 2.000% 2017 3.500%
2011 2.000% 201.8 4.000%
2012 2.000% 2019 4.000%
2013 2.250% 2020 4.000%
2014 3.000% 2021 4.000%
2015 3.000% 2022 4.000%
2016 3.250%
Term Bonds due February 1, 2024 at 4.100%.
Term Bonds due February 1, 2027 at 4.250%.
Term Bonds due February 1, 2030 at 4.500%.
Term Bonds due February 1, 2033 at 4.625%.
Term Bonds due February 1, 2038 at 4.750%.
Net interest cost: 4.2440617%.
2.02. Purchase Contract. The sum of $51,485.20 being the amount proposed by the Purchaser in excess of $3,885,813.00 will be
deposited in allocable amounts to the respective subaccounts in the Construction Account under Section 5.01 hereof. The City Finance Director
is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the
unsuccessful proposers forthwith. The Mayor and the City Finance Director are directed to execute a contract with the Purchaser on behalf of
the City.
2.03. Terms and Principal Amounts of the Bonds. The City will. forthwith issue and sell the Bonds pursuant to the City Charter, the
Utility Act,. the Assessment Act, and Chapter 475 in the total principal amount of $3,935,000, originally dated as of the date of delivery, in the
denomination of $5,000 each or any integral multiple thereof,, nwnbered No. R-1, upward, bearing interest as above set forth, and which mature
serially on February 1 in the years and amounts as follows:
City Council Minutes
Monday, June 08, 2009
Page 9 of 25
Year Amount Year Amount
2010 $40,000 2017 $225,000
2011 185,000 2018 235,000
2012 190,000 2019 200,000
2013 200,000 2020 130,000
2014 205,000 2021. 140,000
2015 205,000 2022 140,000
2016 220,000
Tenn Bonds due February 1, 2024 in the aggregate principal amount of $305,000.
Tenn Bonds due February 1, 2027 in the aggregate principal amount of $210,000.
Tenn Bonds due February 1, 2030 in the aggregate principal amount of $240,000.
Tenn Bonds due February 1, 2033 in the aggregate principal amount of $285,000.
Term Bonds due February 1, 2038 in the aggregate principal amount of $580,000.
$3,005,000 of the Bonds (the "Public Facilities Portion") maturing in the amounts and on the dates set forth below are being issued to
finance the Public Facilities Improvements:
Year Amount Year Amount
2011 $95,000 2025 $65,000
2012 95,000 2026 70,000
2013 100,000 2027 75,000
2014 105,000 2028 75,000
2015 105,000 2029 80,000
2016 115,000 2030 85,000
2017 110,000 2031 90,000
2018 120,000 2032 95,000
2019 130,000 2033 100.000
2020 130,000 2034 105,000
2021 140,000 2035 110,000
2022 140.000 2036 115,000
2023 150,000 2037 120,000
2024 155,000 2038 130,000
$325,000 of the Bonds (the '`Water Revenue Portion") m aturing in the amounts and on the dates set forth below are being issued to finance
the Watermain Improvements:
Year Amount Year Amount
2011 $30,000 2016 $35,000
2012 35,000 2017 40,000
2013 35.000 2018 40,000
2014 35,000 2019 40,000
2015 35,000
$605,000 of the Bonds (the "Street Improvements Portion") maturing in the amounts and on the dates set forth below are being issued to
finance the Street Improvements:
Year Amount Year Amount
2010 $40,000 2015
2011 60,000 2016
2012 60,000 2017
2013 65,000 2018
2014 65,000 2019
$65,000
70,000
75,000
75,000
30,000
2.04. Optional Redemption. The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after
February 1, 2020. 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 8 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.
2.05. Tenn Bonds. 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
City Council Minutes
Monday, June 08, 2009
Page 10 of 25
February 1,
2024 Term Bonds
2023
2024 (maturity) 155,000
2027 Term Bonds
2025
2026
2027 (maturity) 75,000
2030 Term Bonds
2028
2029
2030 (maturity) 85,000
2033 Term Bonds
2031
2032
2033 (maturity) 100,000
2038 Term Bonds
2034
2035
2036
2037
2038 (maturity} 130,000
The specific Term Bonds to be redeemed will be selected by lot by the Registrar
$150.000
65,000
70,000
75,000
80,000
90,000
95,000
105,000
110,000
115,000
120,000
All prepayments will be at a price of par plus accrued interest.
Section 3. Registration and Payment.
3.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond
the principal amount thereof; is payable by check or draft issued by the Registrar described herein.
3.02. Dates; Interest Pavment 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
is payable on February 1 and August 1 of each year, commencing February 1, 2010, 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, and will maintain, 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 must keep at its principal corporate trust office a bond register in which the Registrar provides
for 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 a Bond 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. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate
and deliver one or more new Bonds of a hke aggregate principal amount and maturity as requested by the registered owner or the owner's
attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter
disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to
transfer the Bond until the Registrar is satisfied that the endorsement on the 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.
(t) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the
bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of; or on account
of, the principal of and interest on the Bond and for all other purposes, and payments so made to a 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 swn or stuns so paid.
(g) Taxes. Fees and Charges. The Registrar may impose a charge upon the owner thereof for a 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 the transfer or
exchange.
(h) Mutilated. Lost. Stolen or Destroyed Bonds. If a Bond becomes mutilated or is 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 the
mutilated Bond or in lieu of and in substitution for any 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 the Bond was destroyed, stolen or lost, and of the ownership thereof,, and upon famishing to the Registrar an
appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the
City Council Minutes
Monday, June 08, 2009
Page 11 of 25
Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar 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 is not 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 after 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 Reg.sh'ar. The City appoints U.S. Bank National Association, Saint 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 is 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 must deliver all cash and Bonds in its possession to the successor Registrar and must
deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City
Finance Director must transmit to the Registrar monies 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 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 ceases 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 offrcer had remained in
office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit
under this Resolution unless and until a certificate of authentication on the 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 a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have
been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the Purchaser is not 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 4 hereof with such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 4. Form of Bond.
4.01. The Bonds will be printed or typewritten in substantially the standard form:
No. R-_ UNl"fED STATES OF AMERICA $_
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
GENERAL OBLIGATION PUBLIC FACILITIES BONDS,
SERIES 2009A
Date of
Rate Maturi Original Issue CUSIP
February 1, 20_ July 1, 2009
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 promises to pay to the Registered Owner specified above or
registered assigns, the principal sum 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 , 2010, 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 iJ.S. Bank
National Association, Saint Paul Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating 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 inevocably pledged.
The City may elect on February 1, 2019, and on any date thereafter to prepay Bonds due on or after February 1, 2020. 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:
City Council Minutes
Monday, June 08, 2009
Page 12 of 25
Sinking Fund Installment Date Principal Amount
February 1,
2024 Term Bonds
2023 $150.000
2024 (maturity) 155,000
2027 Term Bonds
2025 65,000
2026 70,000
2027 (maturity) 75,000
2030 Term Bonds
2028 75,000
2029 80,000
2030 (maturity) 85,000
2033 Term Bonds
2031. 90,000
2032 95,000
2033 (maturity) 100,000
2038 Term Bonds
2034 105.000
2035 ] 10,000
2036 115,000
2037 120,000
2038 (maturity) 130,000
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.
This Bond is one of an issue in the aggregate principal amount of $3.935,000, al] of like original issue date and tenor, except as to number,
maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 8, 2009
(the "Resolution"), for the purpose of providing funds to (i) construct a new public safety center for the police and fire departments within the City, (ii)
defray the costs of certain improvements to the City's watennain system, and (iii) defray the costs of certain street and alley improvements within the
City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and taws of the State of Minnesota, including
Minnesota Statutes, Section 444.075, Chapter 429, and Chapter 475, as amended. The principal hereof and interest hereon. are payable in part from net
revenues of the City's water utility, in part from special assessments levied or to be levied on property specially benefited by local improvements, and
in part from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and .powers thereby conferred.
The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional ad
valorem taxes on all taxable property in the City in the event of any deficiency in water revenues, special assessments, and taxes pledged, which
additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in
denominations of $5,000 or any 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 ot~ice of the 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 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 charge required to be paid with respect to such transferor exchange.
The City and the 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 Registrar will be affected by any
notice to the contrary.
The City Council has designated the issue of Bonds of which this Bond forms a par[ 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 $30 million limit allowed by the Code for the calendar year of issue.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule
charter of the City 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 Resolution until the Certificate of
Authentication hereon has been executed by the 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.
City Council Minutes
Monday, June 08, 2009
Page 13 of 25
Dated: June S, 2009
CITY OF COLUMBIA HEIGHTS, MINNESOTA
(Facsimile) (Facsimile}
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM -- as tenants LJNIF GIFT MIN ACT Custodian
in common (Gust) {Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN --as joint tenants with
right of survivorship and Act .. ...... . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
Bond and all rights thereunder, and does hereby irrevocably constitute and appoint
on the books kept for registration of the within Bond, with full power of substitution in the premises.
Dated:
the within
attorney to transfer the said Bond
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:
NOTICE: 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") 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 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 this 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 Signature of
Registered Owner Officer of Re is~ trar
Cede & Co.
Federal ID # 13-255 119
4.02. Approving Legal Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving legal
opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and cause the opinion to be
printed on or accompany each Bond.
Section 5. Payment; Security; Pledges and Covenants.
5.01. Funds and Accounts. (a) Generally. The Bonds are payable from the General Obligation Public Facilities Bonds, Series 2009A
Debt Service Fund (the "`Debt Service Fund"} hereby created. The City will maintain a Public Facilities Account (the "Public Facilities Account"), a
Water Revenue Account (the "Water Revenue Account"), and a Street Improvements Account (the ``Street Improvements Account") in the Debt
Service Fund.
(b) Public Facilities Account. The City Finance Director will timely deposit in the Public Facilities Account the taxes (the "Taxes")
levied or to be levied for hereunder, which Taxes are pledged to that account of the Debt Service Fund. There is also appropriated to the Public
Facilities Account of the Debt Service Fund $69,590.94, representing the amount necessary to pay interest on the Public Facilities Portion of the
Bonds on February 1, 2010. If any payment of principal or interest on the Public Facilities Portion of the Bonds will become due when there is not
City Council Minutes
Monday, June 08, 2009
Page 14 of 25
sufficient money in the Public Facilities Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal
or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Taxes when received.
(c) IY~ater Revenue Account. The City will create and continue to operate its Water Fund to which will be credited all gross revenues
of the City's water system and out of which will be paid all normal and reasonable expenses of current operations of the water system. Any balance
therein are deemed net revenues and will be transferred, from time to time, to the Water Revenue Account of the Debt Service Fund, hereby created in
the Water Fund, which account will be used only to pay principal of and interest on the Water Revenue Portion of the Bonds and any other bonds
similarly authorized. There will always be retained in the Water Revenue Account of the Debt Service Fund a sufficient amount to pay principal of
and interest on the Water Revenue Portion of the Bonds and the City Finance Director must report any current or anticipated deficiency in the Water
Revenue Account to the City Council If any payment of principal or interest on the Water Revenue Portion of the Bonds will become due when there
is not sufficient money in the Water Revenue Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such
principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of pledged net
revenues when received.
(d) Street Improvements Account. The City Finance Director will timely deposit in the Street Improvements Account the Taxes and
the special assessments (the "Assessments") levied or to be levied for the Street Improvements described in Section 1.03 hereof,, which Taxes and
Assessments are pledged to the Street Improvements Account of the Debt Service Fund. There is also appropriated to the Street Improvements
Account of the Debt Service Fund $4,367.7]., representing the amount necessary to pay interest on the Street Improvements Portion of the Bonds on
February 1, 2010. If any payment of principal or interest on the Street Improvements Portion of the Bonds will become due when there is not
sufficient money in the Street Improvements Account of the Debt Service Fund to pay the same, the City Finance Director is directed to pay such
principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Taxes and
Assessments when received.
(e) Construction Fund. The proceeds of the Bonds, less the appropriations made in paragraphs (b), (c) and (d) of this Section but
including any amounts in excess of the minimum proposal designated for deposit herein in accordance with Section 2.02 hereof; together with any
other funds appropriated for the Public Facilities Improvements, the Watermain Improvements, and the Street Improvements, respectively, as the case
may be, will be allocated to and deposited in a Public Facilities subaccount, a Water Revenue subaccount, and a Street Improvements subaccount,
respectively, in a separate "Construction Fund" to be used solely to defray expenses of the Public Facilities Improvements, the Watermain
Improvements, and the Street Improvements, respectively. When the Public Facilities Improvements, the Watermain Improvements, and the Street
Improvements, respectively, are completed and the costs thereof paid, the relevant subaccount in the Construction Fund is to be closed and any
balance in the respective subaccount therein is to be deposited in the Public Facilities Account, the Water Revenue Account, and the Street
Improvements Account, respectively, of the Debt Service Fund, as the case may be.
5.02. Covenants Re ardinQ Water Revenue Portion of Bonds. The Council covenants and agrees with the holders of the Bonds that so
long as any of the Water Revenue Portion of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and
agreements:
(a) Maintenance and Operation of Svstem. The City will continue to maintain and efficiently operate its water system as a public
utility and convenience free from competition of other like utilities and will cause all revenues theretom to be deposited in bank accounts
and credited to the water account as hereinabove provided, and will make no expenditures from that account except for a duly authorized
purpose and in accordance with this Resolution.
(b) Yt~ater Revenue Account to be Maintained as Separate Account. The City will also maintain the Water Revenue Account of the
Debt Service Fund as a separate account in the Water Fund and will cause money to be credited thereto from time to time, out of net
revenues from the water system in sums sufficient to pay principal of and interest on the Water Revenue Portion of the Bonds when due.
(c) Books of Records and Accounts Relating to the Svstem. The City will keep and maintain proper and adequate books of records
and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the
water system and which will be open to inspection and copying by any bondholder, or the bondholders agent or attorney, at any reasonable
time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be
audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon
request.
(d) Persons Handling Revenues and Banks Receiving Deposits. The Council will cause persons handling revenues of the water
system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account
of the operations of the water system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law.
(e) Insurance. The Council will keep the water system insured at all times against loss by fire, tornado and other risks customarily
insured against with an insurer or insurers in good standing; in such amounts as are customary for like plants, to protect the holders, from
time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good
any such loss.
(f) Performance of Duties. `the City and each and all of its officers will punctually perform all duties with reference to the water
system as required by Caw.
(g) Pledge to Produce Revenues. The City will impose and collect charges of the nature authorized by the Utility Act at the times
and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Water Revenue Portion of
the Bonds and to create and maintain such reserves securing said payments as may be provided in this Resolution.
City Council Minutes
Monday, June 08, 2009
Page 15 of 25
(h) Paynsent of lleficiencies, if Any. The Council will levy general ad valorem taxes on all taxable property in the City when
required to meet any deficiency in net revenues with respect to the Water Revenue Portion of the Bonds.
5.03. Pledge of Tax Levv. For the purpose of paying the principal of and interest on the Public Facilities Portion and the Street
Improvements Portion of the Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable properly in the City, which will
be spread upon the tax rolls and collected with and as part of other general taxes of the City. The Taxes will be credited to the respective subaccounts
of the Debt Service Fund. above provided and will be in the years and amounts as follows (year stated being year of collection):
Year Levv
(See EXHIBIT B}
5.04. Certification to Countv Auditor as to Debt Service Fund Amount. (a) It is hereby determined that the estimated collections
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 Public Facilities Portion of the Bonds. It is hereby determined that the estimated collections of the foregoing Taxes and Assessments will
produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Street Improvements
Portion of the Bonds. The tax levy herein provided is irrepealable until all of those respective portions of the Bonds are paid, provided that at
the time the City makes its annual tax levies the City Finance Director may certify to the County Auditor of Anoka County the amounts
available in the Public Facilities Account or Street Improvements Account of the Debt Service Fund, as the case may be, 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.
(b) It is hereby determined that the estimated collection of net revenues for the payment of principal and interest on the Water
Revenue Portion of the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest
payments on such portion of the Bonds and that no tax levy is needed at this time with respect to the Water Revenue Portion of the Bonds.
5.05. Countv Auditor Certificate as to Registration. The City Finance Director is 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 4~~.63.
Section 6. Authentication of Transcript.
6.01. City Proceedings and Records. The officers of the City are 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 famished, will be deemed representations of the City as to the facts stated therein.
6.02. Certification as to Official Statement. The Mayor, the City Manager, and the City Finance Director 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 a complete and accurate representation of the facts and representations made
therein as of the date of the Official Statement.
6.03. 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 Bank of America, N.A. on the
closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc.
Section 7. Tax Covenants.
7.01. Tax-Exempt 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 etTect at the time of such actions,
and 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.
7.02. No Rebate Required. (a) 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 if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2009)
exceed the small issuer rebate exception amount of $5,000,000.
(b) For purposes of qualifying for the small issuer rebate exception to the federal arbitrage rebate requirements, the City finds,
determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all
subordinate entities of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000, within
the meaning of Section l48(f)(4)(D) of the Code.
7.03. 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 ] 41 through 150 of the
Code.
7.04. Oualitied 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 Ciry 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 hereby 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 any private activity bonds which will be
issued by the City (and all subordinate entities of the City) during calendar year 2009 will not exceed $30,000,000; and
(d) not more than $30,000,000 of obligations issued by the City during calendar year 2009 have been designated for
purposes of Section 26~(b)(3) of the Code.
City Council Minutes
Monday, June 08, 2009
Page 16 of 25
7.05. 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 8. Book-Entry Svstem; Limited Obligation of City.
8.01. 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 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 o'f the outstanding Bonds will be registered in the registration books kept by the Registrar in the name
of Cede & Co., as nominee of DTC.
8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as
nominee of DTC, the City and the Registrar 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 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 premium, if any, or interest on the Bonds. The City and the Registrar 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, premium and
interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Registrar 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 Registrar, and all such payments will be valid and eti'ectual 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 Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon
delivery by DTC to the City Finance Director 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 Finance Director will promptly
deliver a copy of the same to the Registrar.
8.03. Renresentation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations
(the "Representation Letter") which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the
Bonds. Any 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, to be complied with at all times.
8 04. Transfers Outside Book-Entry Svstem. In the event the City, by resolution of the 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.
8.05. 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, premium, if any, and interest on the Bond and 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 9. Continuing Disclosure.
9.01. City ComRliance with Provisions of Continuing Disclosure Certificate. The City covenants and agrees that it wilt comply with
and carry out all of the provisions of the Continuing Disclosure Certificate (hereinafter defined). Notwithstanding any other provision of this
Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not 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.
9.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing
Disclosure Certificate executed by the Mayor and the 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 10. 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 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 (or relevant portion thereof) 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.
RESOLUTION N0.2009-75
A RESOLUTION AWARDING THE SALE OF $580,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 2009B; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEH2 EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVF_D By the City Council of the City of Columbia Heights, Anoka County, Minnesota (the "City") as follows:
Section l .Sale of Bonds.
City Council Minutes
Monday, June 08, 2009
Page 17 of 25
1.01. Background. It is hereby determined that:
(a) the City and the Columbia Heights Economic Development Authority (the "Authority") have duty established the
Kmar-t/Central Avenue Tax Increment Financing District (the "TIF District") within the Downtown CBD Redevelopment Project (the
``Project") pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (the "TIF Act") and Sections 469.001
through 469.047, as amended, which TIF District was certified by the Anoka County Auditor on July 23, 2004;
(b) the City is authorized by Section 469.178 of the TIF Act and Minnesota Statutes, Chapter 475, as amended (the
"Bond Act"), to issue and sell its general obligation bonds to pay all or a portion of the public redevelopment costs of the Project, as
identified in the tax increment financing plan (the "TIF Plan") for the TIF District;
(c) the following costs of the Project to be financed by the Bonds (herein defined) are authorized by the TIF Plan:
Activity Cost
Project Construction Fund $500,000.00
Underwriter's Discount 8,1.20.00
Costs of Issuance 15,450.00
Capitalized Interest 54,135.42
Rounding Amount 2,294.58
Total $580,000.00
(d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $580,000
Taxable General Obligation Tax Increment Bonds, Series 2009B (the "Bonds") to provide financing for the above-identified costs of
the Project;
(e) the Mayor and the City Manager are authorized and directed to execute a Tax Increment Pledge Agreement between
the City and the Authority (the'`Pledge Agreement"), in substantially the form on file in City Hall, pursuant to which the Authority pledges
certain Available Tax Increment (as defined in the Pledge Agreement) from the TIF District to pay principal of and interest on the Bonds;
and
(f) the Authority has requested the City to issue and sell its general obligation bonds to finance a portion of the above-
identified costs of the Project.
1.02. Award to Purchaser and Interest Rates. The proposal of Northland Securities, Ina (the "Purchaser") to purchase the Bonds
as described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is hereby accepted, the proposal being to
purchase the Bonds at a price of $571,880.00 for Bonds bearing interest as follows:
Term Bonds due February 1, 2014 at 3.400%.
Term Bonds due February 1, 2016 at 4.150%.
Term Bonds due February 1, 2018 at 4.650%.
Term Bonds due February 1, 2021 at 5.100%.
Net interest cost: 4.8550129%.
1.03. Purchase Contract. The sum of $580 being the amount proposed by the Purchaser in excess of $571,300 shalt be credited to
the Project Fund hereinafter created. The City Finance Director is directed to retain the good faith check of the Purchaser, pending completion
of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The Mayor and the City Finance Director are
directed to execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the TIF Act and
the Bond Act in the total principal amount of $580,000, originally dated July 1, 2009, in the denomination of $5,000 each or any integral
multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as
follows:
Term Bonds due February 1, 2014 in the aggregate principal amount of $1 10,000.
Term Bonds due February 1, 2016 in the aggregate principal amount of $120,000.
Term Bonds due February 1, 2018 in the aggregate principal amount of $130,000.
Term Bonds due February 1, 2021 in the aggregate principal amount of $220,000.
1.05. Combined Maturities. The maturity schedule of the Bonds shall be combined with the maturity schedule of the City's
$3,935,000 General Obligation Public Facilities Bonds, Series 2009A, which combined maturities conform to Section 475.54, Subdivision 1 of
the Bond Act.
1.06. Optional Redemption. The City may elect on February 1, 201.9, and on any date thereafter to prepay Bonds due on or after
February 1, 2020. 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 (oY the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus
accrued interest.
l .07. Mandatory Redemption. 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,
2014 Term Bonds
2013 $55,000
2014 (maturity) 55,000
2016 Term Bonds
201.5 60.000
2016 (maturity) 60,000
City Council Minutes
Monday, June 08, 2009
Page 18 of 25
2018 Term Bonds
2017 65,000
2018 (maturity) 65,000
2021 Term Bonds
2019 70,000
2020 7,000
2021 (maturity) 7,000
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.
Section 2.Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each
Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein.
2.02. 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 is payable on February 1 and August 1 of each year, commencing February 1, 2010, 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.
2.03. 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) Re ig ster. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar
provides for 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 a Bond 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. When 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 or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and
thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may
refuse to transfer the Bond until the Registrar 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 a Bond is registered in
the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or
on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a 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
so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a 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 the
transfer or exchange.
(h) Mutilated, Lost. Stolen or Destroyed Bonds. If a Bond becomes mutilated or is 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 the mutilated Bond or in lieu of and in substitution for a 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 the 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 the Registrar, in
which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the
Registrar 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 is not 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 after the
specified redemption date, provided. that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Anpointment of Initial Registrar. The City appoints U.S. Bank National Association, Saint 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 is authorized to act as successor Registrar. The City agrees to pay the reasonable and
City Council Minutes
Monday, June 08, 2009
Page 20 of 25
2020 7.000
2021 (maturity) 75,000
The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments wilt be at a price of par plus accrued interest.
This Bond is one of an issue in the aggregate principal amount of $580,000, all of like original issue date and tenor, except as to
number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on Lune 8, 2009
(the "Resolution"), for the purpose of providing money to aid in financing certain public redevelopment costs within the Downtown Central
Business District Redevelopment Project in the City, pursuant to and in full conformity with the home rule charter of the City and the
Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.1.74 to 469.1799, Sections 469.001. through
469.047, and Chapter 475, as amended, and the principal hereof and interest hereon are payable primarily from tax increments resulting from
increases in taxable valuation of real property in the K-Mart/Central Avenue Tax Increment Financing District within the Project, as set forth in
the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on alt taxable property in the
City in the event of any deficiency in tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of
this series are issued only as fully registered Bonds in denominations of $5,000 or any 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 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 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 charge required to be paid
with respect to such transferor exchange.
The City and the 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 Registrar will 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 home
rule charter of the City 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 Resolution until the Certificate of
Authentication hereon has been executed by the 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
(Facsimile) (Facsimile)
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will. be construed as though they were written out
in full according to applicable laws or regulations:
1`EN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
IT TEN -- as joint tenants with
right of survivorship and Act . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
City Council Minutes
Monday, June 08, 2009
Page 21 of 25
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
said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises.
Dated:
attorney to transfer the
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:
NOTICE: 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")
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 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 this 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 Signature of
Registered Owner Officer of Registrar
Cede & Co.
Federal ID #13-255119
3.02. Anprovin~ Legal Opinion. The City Finance Director is authorized and directed to obtain a copy of the proposed approving
legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the
opinion to be printed on or accompany each Bond.
Section 4.Pavment: Security: Pledges and Covenants.
4.01. Funds and Accounts. (a) Debt Service Fund. The Bonds are payable from the Taxable Genera] Obligation Tax
Increment Bonds, Series 2009B Debt Service Fund (the "Debt Service Fund") hereby created, and all Available Tax Increment (as defined in the
Pledge Agreement) received by the City from the Authority pursuant to the Pledge Agreement is pledged to the Debt Service Fund. 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 is directed to 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 Available Tax Increment when received. There is additionally appropriated to the Debt Service Fund
proceeds of the Bonds in the amount of $54,13.42, representing capitalized interest through August 1, 2012: and any rounding amount, to the
extent directed for deposit therein by the City's financial advisor.
(b) Project Fund. The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other fiords
appropriated for the Project, will be deposited in a separate Project Fund to be used solely to defray costs of the Project described in Section
1.01 hereof. When the identified activities are completed and the costs thereof paid, the Project Fund is to be closed and any balance therein
shall be deposited in the Debt Service Fund.
4.02. No Tax Levy. It is determined that the estimated collection of Available Tax Increment for payment of principal and
interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on
the Bonds and that no tax levy is needed at this time.
4.03. County Auditor Certificate as to Registration. The City Finance Director is directed to file a certified copy of this
Resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63.
Section S.Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are 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 Manager, and the City Finance Director are authorized and
directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds
and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
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 Bank of America, N.A., on
the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc.
the
City Council Minutes
Monday, June 08, 2009
Page 22 of 25
Section 6.Book-Entry System: Limited Obligation of City.
6.01. 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 1.04 hereof. Upon initial issuance, the ownership of each. Bond will be registered in the registration
books kept by the 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 Registrar in the name of Cede & Co., as nominee of DTC.
6.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as
nominee of DTC, the City and the Registrar 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 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; premium, if any, or interest on the Bonds. The City and the Registrar 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, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to
such Bonds, and for all other purposes. The Registrar 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 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
Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Finance Director 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 Finance Director will promptly deliver a copy of the same to the
Registrar.
6.03. Representation Letter. The City has heretofore executed and delivered to 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 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 to be complied with at all times.
6.04. Transfers Outside Book-Entry S ~s~. 1n 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.
6.05. 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, premium, if any, and interest on the Bond and
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 7.Continuing Disclosure.
7.01. City Compliance 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 specific
performance by court order, to cause the City to comply with its obligations under this section.
7.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing
Disclosure Certificate executed by the Mayor and the 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 8. 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 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 Registrar a sum sufficient for the payment thereof in full with interest accrued to
the date of such deposit.
RESOLUTION 2009-79
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 Ali Mirdanadi (Hereinafter "License I folder").
Whereas, license holder is the legal owner of the real property located at 4138 Quincy Street N.E., Columbia Heights, Minnesota,
Whereas, pursuant to City Code, Chapter 5A, 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 May 12, 2009 of an public hearing to be held on June 8, 2009.
City Council Minutes
Monday, June 08, 2009
Page 23 of 25
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 January 12, 2009 inspectors for the City of Columbia Heights, inspected the property described above and noted 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 March 20, 2009 inspectors for the City of Columbia Heights performed a reinspection and noted that violations remained
uncorrected.
3. That on May 12, 2009 inspectors for the City of Columbia Heights performed a final inspection at the property and noted violations
remained uneon•ected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing
license application.
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:
a. Shall remove the electrical 6 Alex from the outlet at washer/dryer
b. Cleanout plug missing from floor drain. Replace cover
c. Sump pump pit not properly installed
d. Laundry room waste piping Fernco fitting is upside down wye with CO plug. This is not allowed
e. Laundry tub has flexible waste pipe. This is not allowed
£ GFI outlet required within 6 feet of kitchen sink
g. Light switch plate is too small in hallway
h. Tempered glass is required in window at top of stairway
i. Smoke detector and CO detector are missing from hallway
j. Trap for tub is leaking into basement ceiling. Repair and also install access panel
k. Exhaust fan grille is not in place for mechanical exhaust
1. Door knob in bathroom is loose
m. Repair wallboard in bedroom
n. Switch plate is to small in BR
o. Smoke detectors are missing in 2 BR's
p. Cover plate missing on outlet in porch
q. Intall lights in storage room
r. Vacuum breaker is missing from outside faucets
s. Shall replace the garage slab
t. Shall mount the handrail on the basement stairway
u. Shall replace the broken window and screen in the N W bedroom
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 5A.303(A).
ORDER OF COUNCIL
1. The rental license belonging to the License Holder described herein and identified by license number F9373 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 Hoider.
RESOLUTION 2009-80
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 Patricia Eligio Rubio (Hereinafter "License Holder").
Whereas, license holder is the legal owner of the real property located at 3915 Tyler Strreet N.E. Columbia Heights, Minnesota,
Whereas, pursuant to City Code, Chapter SA, Article ]V, 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 May 18, 2009 of an public hearing to be held on June 8, 2009.
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 May 1, 2009, inspection office staff sent a letter requesting the owner of the property to submit a rental license
application and schedule a rental inspection for this property. The letter was mailed by regular mail to the owner at the address listed
in the property records.
2. That on May 18, 2009 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).
City Council Minutes
Monday, June 08, 2009
Page 24 of 2S
ORDER OF COUNCIL
1. The rental license belonging to the License Holder described herein and identified by license number U39] 5 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 2009-76
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 Evelyn M. Granvoos (Hereinafter "Owner of Record").
Whereas, the owner of record is the legal owner of the real property located at 4039 S`h Street N.E. Columbia Heights, Minnesota.
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 May 22, 2009.
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 December 13, 2008 the Fire Department responded to a fire at the address listed above. After the situation was under control
the Fire Chief ordered an immediate abetment and that the building be secured. The owners were not able to secure the building. The
Fire Chief ordered DuAll Services to respond to the scene and secure the building with plywood.
2. That on April 27, 2009 DuAll Services contacted the Fire Department and advised the Fire Chief that they were unsuccessful in
getting paid from the homeowners insurance company.
3. That on May 22, 2009 the Fire Department sent statement of cause to the registered owner of the property at the address listed in the
Anoka County Property Records database.
4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and
have been abated, to wit: Approve the immediate abatement of the hazardous situation located at 4039 S`h Street N.E.
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 4039 5`~ 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 4039 S`h 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.
RESOLUTION 2009-77
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 Federal Home Loan Mortgage (Hereinafter "Owner of
Record").
Whereas, the owner of record is the legal owner of the real property located at 4448 Quincy Street N.E., Columbia Heights, Minnesota.
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 May 22, 2009.
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 May 22, 2009 the Fire Department responded to a complaint that the building located at 4448 Quincy Street N.E. was
abandoned and unsecured. Inspectors found the building open and unsecured. The Fire Chief ordered an immediate abetment and that
the building be secured. The Fire Chief ordered DuAll Services to respond to the scene and secure the building.
2. That on May 22, 2009 the Fire Department sent statement of cause to the registered owner of the property at the address listed in the
Anoka County Property Records database.
3. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and
have been abated, to wit:Approve the immediate abatement of the hazardous situation located at 4448 Quincy Street N.E.
4. 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
I. That the property located at 4448 Quincy Street N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in
the Notice of Abatement.
City Council Minutes
Monday, June 08, 2009
Page 25 of 25
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 4448 Quincy 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.
RESOLUTION 2009-78
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 Gregory Stull (Hereinafter "Owner of Record").
Whereas, the owner of record is the legal owner of the real property located at 3930 University Avenue N.E., Columbia Heights, Minnesota.
And whereas, pursuant to Columbia I-Ieights 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 April 6, 2009.
Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of Columbia Fleights, the City Council of the
City of Columbia Heights Makes the following:
FINDINGS OF FACT
1. That on March 25, 2009 the Fire Department responded to a complaint that the building located at 3930 University Avenue N.E. was
abandoned and unsecured. Inspectors found the building open and unsecured. A notice was sent to the owners of record for the
property.
2. That on March 31, 2009 the Fire Department reinspected and found the building unsecured. A notice was sent to DuAll Services to
abate the violations at the property per city policy.
3. That on April 6, 2009 DuAll Services performed the work and secured the building. The Fire Department sent statement of cause to
the registered owner of the property at the address listed in the Anoka County Property Records database.
4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist and
have been abated, to wit: Approve the immediate abatement of the hazardous situation located at 3930 University Avenue N.E.
~. 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 3930 University 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 property located at 3930 University 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.