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HomeMy WebLinkAbout11/12/2013 Regular Meeting CITY OF COLUMBIA HEIGHTS Mayor Gary L.Peterson 59040 1h Avenue NE,Columbia Heights,MN 55421-3878 (763)706-3600 TDD(763)706-3692 Councilmembers Visit our website at:www.cLcolumbia-heiehts.mn.us Robert A. Williams Bruce Nawrocki Tammera Diehm Donna Schmitt City Manaeer Walter R.Fehst The following is the agenda for the regular meeting of the City Council to be held at 7:00 PM on Tuesday,November 12,2013 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights,MN. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services,programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611,to make arrangements. (TDDn06-3692 for deaf or hearing impaired only) 1. CALL TO ORDER/ROLL CALUIN`'OCATION 2. PLEDGE OF ALLEGIANCE 3. ADDITIONS/DELETIONS TO MEETING AGENDA (The Council,upon majority vote of its members,may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 4. PROCLAMATIONS,PRESENTATIONS,RECOGNITION,ANNOUNCEMENTS GUESTS A. Introduction of Assistant Community Development Director-Joseph Hogeboom 5. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve City Council Meeting Minutes of October 28 2013 Pg5 MOTION: Move to approve the City Council Meeting Minutes of October 28, 2013. B. Adopt Resolution 2013-101, being a resolution approving the terms of an inter-fund loan from pg4 2 the Community Development Capital Improvement Fund 420 to the Anoka County Community Development Programs Fund 202. MOTION: Move to waive the reading of Resolution 2013-101,there being ample copies available to the public. MOTION: Move to adopt Resolution 2013-101, being a resolution approving the terms of an inter-fund loan from the Community Development Capital Improvement Fund 420 to the Anoka County Community Development Programs Fund 202. C. Adopt Resolution 2013-102,being a resolution to transfer and appropriate $34,000 from the Pg44 2013 izeneral fund budget to the capital equipment replacement general government fund 431 MOTION: Move to waive the reading of Resolution 2013-102,there being ample copies 2 City Council Agenda Tuesday,November 12,2013 Page 2 of 3 available to the public. MOTION: Move to adopt Resolution 2013-102, being a resolution to transfer and appropriate $34,000 from the 2013 general fund budget to the capital equipment replacement general government fund 431. D. Adopt Resolution 2013-100 AM roving Amendment No. 2 to Water Agreement with the CitX Of P94 6 Minneapolis MOTION: Move to waive the reading of Resolution 2013-100, there being ample copies available to the public. MOTION: Move to adopt Resolution 2013-100 being a resolution approving Amendment Number 2 to the Water Agreement between the cities of Minneapolis and Columbia Heights and authorizing the Mayor and City Manager to execute amended agreement. E. Final Payment for Argonne Lift Station Improvements, Project 1114 Pg54 MOTION: Move to accept the work for Argonne Lift Station Improvements, City Project No. 1114, and to authorize final payment of$14,543.50 to Penn Contracting, Inc. of Blaine, Minnesota. F. Final Payment for MSC Floor Capacity Upgrade, Project 1310 P957 MOTION: Move to accept the work for MSC Floor Capacity Upgrade, City Project No. 1310, and to authorize final payment of$4,867.52 to J.S. Cates Construction, Inc. of Hamel, Minnesota. G. Award Sanitary Sewer Main and Storm Catch Basin Rolacement/Rgpair Project Pg5 9 MOTION: Move to accept quotes and award the Sanitary Sewer Main and Storm Sewer Catch Basin Replacement/Repair project to Minger Construction from Chanhassen, MN in the amount of$48,700, from City Utility Funds 602 (Sanitary) and 604 (Storm); and, furthermore,to authorize the Mayor and City Manager to enter into a contract for the same. H. Approve Business License Applications Pg6 0 MOTION: Move to approve the items as listed on the business license agenda for November 12, 2013 as presented. I. Payment of Bills MOTION: Move that in accordance with Minnesota Statue 412.271, subd.8, the City Council has Pg6 0 received the list of claims paid covering check number 149987 through 150176 in the amount of $791,791.78. MOTION: Move to approve the Consent Agenda items. 6.PUBLIC HEARINGS 7.ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions B. Bid Considerations 3 City Council Agenda Tuesday,November 12,2013 Page 3 of 3 C. New Business and Reports 8. ADMINISTRATIVE REPORTS Report of the City Manager Report of the City Attorney 9. CITIZENS FORUM At this time, citizens have an opportunity to discuss with the Council items not on the regular agenda. Citizens are requested to limit their comments to five minutes. Anyone who would like to speak shall state his/her name and address for the record. 10. ADJOURNMENT Walter R. Fehst, C ty Manager WF/tal 4 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MONDAY,OCTOBER 28,2013 THE FOLLOWING ARE THE MINUTES FOR THE REGULAR MEETING OF THE CITY COUNCIL HELD AT 7:00 PM ON MONDAY,OCTOBER 28,2013 IN THE CITY COUNCIL CHAMBERS,CITY HALL, 59040TH AVENUE N.E.,COLUMBIA HEIGHTS,MINNESOTA. 1. CALL TO ORDER/ROLL CALL/INVOCATION Mayor Peterson called the meeting to order at 7:05 PM. Members Present: Mayor Peterson, Council member Schmitt, Council member Williams, Council member Diehm, and Council member Nawrocki. Staff Present: City Manager Walt Fehst, Finance Director Joseph Kloiber, Fire Chief Gary Gorman, City Attorney Jim Hoeft, and City Clerk/Council Secretary Tori Leonhardt. Deacon Larry Palkert from Immaculate Conception Church gave the invocation 2. PLEDGE OF ALLEGIANCE Recited 3. ADDITIONS/DELETIONS TO MEETING AGENDA Mayor Peterson asked that Resolution 2013-95 and 2013-93 be removed as they have been brought into compliance. Nawrocki would like to add some items under the City Managers report on the City newsletter along with some other items. 4. PROCLAMATIONS,PRESENTATIONS, RECOGNITION,ANNOUNCEMENTS GUESTS Library Director Renee Daugherty introduced the new Children's Librarian Bethany Grabow. Grabow started with the City during M.E.A., which is one of the busiest weeks. Dougherty went on to say; in the short time that she has been here, she brought enthusiasm, initiative and professionalism to the library. Dougherty stated she feels Grabow will be an excellent addition to the library team. Grabow thanked the Mayor and Council and she was very pleased to be here. Mayor Peterson welcomed her, was glad to have her on board, and looked forward to working with her. 5. CONSENT AGENDA Council member Nawrocki asked that items C, D, and G be removed from the Consent Agenda for further discussion. 5 City Manager Fehst took the Council through the remaining items on the Consent Agenda A. Approve City Council Meeting Minutes of October 14, 2013 MOTION: Move to approve the City Council Meeting Minutes of October 14, 2013. B. _Approve Special Assessment Lew Hearing Meeting Minutes of October 7 2013 MOTION: Move to approve the Special Assessment Levy Hearing Meeting Minutes of October 7, 2013 for the Concrete Street Rehabilitation Programs, Project 1302. MOTION: Move to approve the Special Assessment Levy Hearing Meeting Minutes of October 7, 2013 to Certify Petition and Waiver Assessments MOTION: Move to approve the Special Assessment Levy Hearing Meeting Minutes of October 7, 2013 for the Special Assessment Roll and Special Assessment for Delinquent Accounts. C. Adopt Resolution 2013-98, being a resolution awarding the sale of general obli ation improvement and utility revenue bonds, series 2013A, in the original aggregate principal amount of$ • fixing their form and specifications; directing their execution and deliver providing for their payment.REMOVED D. Adopt Resolution 2013-99,being a resolution U12roving post-issuance compliance procedure and policy for tax-exempt governmental bonds.REMOVED E. Approval of attached list of rental housing applications MOTION: Move to approve the items listed for rental housing license applications for October 28, 2013 in that they have met the requirements of the Property Maintenance Code. F. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for October 28, 2013 as presented. G. Review Pavment of Bills REMOVED Motion by Williams, seconded by Nawrocki, to approve the consent agenda items with the acceptations of items C, D, and G which were pulled for further discussion. Upon Vote: All ayes. Motion Carried. Items pulled for discussion: Item C: Adopt Resolution 2013-98, being a resolution awarding the sale of general obligation improvement and utility revenue bonds, series 2013A, in the original aggregate principal amount of$ ; fixing their form and specifications; directing their execution and delivery; and providing for their payment. 6 Nawrocki stated he wanted to know why there was a part that was left blank and wanted some more explanation on the item. Kloiber informed the Council that Mark Ruff was here tonight from Ehlers and Associates to distribute the information on the bond sale that took place earlier today. Kloiber stated we had our bond rating updated and indicated they continued our bond rating at AA and the interest rate came in a little better than we anticipated at 1.8450%. Kloiber explained the reason the dollar amount was left blank was because some of the detail was not ready in time for the packet and indicated the amount is $2,775,000. Fehst stated he was very impressed by Kloiber's experience and wisdom with his ability at providing the information during this bond sale. Fehst stated that we will be saving over$50,000 on refinancing the$800,000. Nawrocki asked why we are spreading this over such a long period of time. Kloiber replied we are not extending any longer than we normally do, that ten years is a normal amount of time. Nawrocki expressed that originally we talked about going for less money we also talked about not going for so long of period of time. Kloiber indicated he did not recall that part of the conversation. Ruff informed the Council that the low bidder was United Bankers Bank. He indicated that they received seven bids, which is a good reflection on the City, as they believe Columbia Heights is a good place to invest their money. Fehst asked if Ruff could discuss the next item in regards to post-issuance compliance procedure and policy for tax-exempt governmental bonds. Ruff indicated the IRS is in charge of overseeing the tax exempt bonds and more recently they have been auditing local governing bond issues. They are asking if you have done a post issuance compliance policy and making sure you are adhering to all tax documents. Nawrocki asked if that has anything to do with changing the policy of the way readings are being done. Ruff indicated that it is totally unrelated. Schmitt commented that she liked that it stated in the bond documents under the forecast for the future, "we do not anticipate changing the rating in the next two years because we believe the City will maintain very strong reserves". That is a good reflection on the City and staff, Schmitt continued. Williams also commented that is the lowest rate he has ever seen. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2013- 98, there being ample copies available for the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Schmitt,to adopt Resolution 2013-98, being a resolution awarding the sale of general obligation improvement and utility revenue bonds, series 2013A, in the original aggregate principal amount of$2,775,000; fixing their form and specifications; directing their execution and delivery; and providing for their payment. Upon Vote: All ayes. Motion carried. Item D: Adopt Resolution 2013-99, being a resolution ap roving_post-issuance compliance procedure and policy for tax-exempt governmental bonds. 7 Motion by Williams, seconded by Schmitt to waive the reading of Resolution 2013- 99, there being ample copies available for the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Schmitt,to adopt Resolution 2013-99,being a resolution approving post-issuance compliance procedure and policy for tax-exempt governmental bonds. Upon Vote: All ayes. Motion carried. Item G: Review Payment of Bills Nawrocki wanted to know what the $40 reimbursement to the City Manager for peanuts from the Kiwanis was for. Fehst stated we donate them to our Park and Recreation program. Schmitt asked if Fehst could find out the results of the ash tree survey that Rainbow Tree Care did. Fehst indicated that he would get those results to her. Motion by Diehm, seconded by Schmitt, in accordance with Minnesota Statute 412.271, subd.8, the City Council has received the list of clams paid covering check number 149819 through 149986 in the amount of$618,810.80. Upon Vote: All ayes. Motion carried. 6. PUBLIC HEARINGS A. Adopt Resolutions 2013-96, 4030 Quincy Street N.E. and 2013-97 4056-58 5th Street N.E.,beiniz Resolutions of the City Council of the City of Columbia Heights approving rental license revocation for failure to meet the requirements of the Property Maintenance Codes. Gorman indicated that 4030 Quincy Street had a damaged fence and a missing handrail along with not submitting the fees and rental license application and at 4056- 58 5t' Street was for failure to submit rental license fees and application. The owner indicated he is letting the rental license go. Schmitt asked if 4030 Quincy was a new rental or a renewal as she did not believe there was ever a handrail on the property. Gorman replied this is a renewal and he was not sure how long the property had been without a handrail,but it needs to have one to be in compliance with the property maintenance code and sometimes things get missed. Motion by Diehm, seconded by Williams,to close the public hearing and to waive the-reading of Resolution Numbers 2013-96 and 2013-97 being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Diehm, seconded by Williams, to adopt Resolution Numbers 2013-96 and 2013-97 being Resolutions of the City Council of the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 8 5A.408(A) of the rental licenses listed. Upon Vote: All ayes. Motion Carried. B. Adopt Resolutions 2013-90, 1312 44th Avenue N.E., 2013-91, 4217 Central Avenue N.E. and 2013-92, 4811 Central Avenue N.E., being declarations of nuisance and abatement of violations within the City of Columbia Heights. Gorman indicated at 1312 44th Avenue there is a pool that has not been maintained. The property is also in foreclosure. At 4217 Central Avenue there is broken siding, screens need to be replaced, and they need to replace the fence. At 4811 Central Avenue there is a large hole in front of building. The drive lane is sinking around water stop box. The owner is in New York and has been passing the notices on to the tenant/manager. Mayor Peterson asked if there was a leak at that stop box. Gorman stated they are working with Public Works on it. Schmitt stated she noticed when she drove by that there was a truck parked in back with Missouri plates and a tow truck was just taking off. Gorman stated they are watching as they believe there is some illegal dumping. Sammy Hasan, 4811 Central Avenue, stated he rents the property and was aware of what is going on and is trying to find someone to work with him on the problem. He asked for some more time to correct the problems. Chief Gorman instructed Hasan to call the station tomorrow and they would work with them to get the situation resolved. Motion by Diehm, seconded by Williams, to close the public hearing and to waive the reading of Resolution Numbers 2013-90, 2013-91, and 2013-92 there being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Diehm, seconded by Williams, to adopt Resolution Numbers 2013-90, 2013-91, and 2013-92 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. 7. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions Second Reading Ordinance 1613,being an ordinance establishing a Public Arts Commission Motion by Williams, seconded by Schmitt, to waive the reading of Ordinance 1613, there being ample copies available to the public. Upon Vote: All ayes. Motion Carried. Motion by Williams, seconded by Schmitt,to adopt Ordinance 1613, being an ordinance establishing a Public Arts Commission. Ed Greacen, 1315 Pierce Terrace NE, approached the Council and indicated he has 9 been a resident for a little over 2 years. He indicated he has come to appreciate both the new and old and the diversity in Heights. He came to offer suggestions to the Council for the Art Commission. He indicated that he participated in the Banfill- Locke Center for the Arts in Fridley and thought it would be a great model to imitate. He strongly supports that the members of the commission should have a relation to the community. The mission should be to promote and encourage artistic communication. Nawrocki stated he was against creating the commission as part of the City. Feels it should be a private operation. Greacen responded that he feels it is the role of government to participate in the Arts Commission and it should go beyond just the schools. It engages the members of the community in opportunities and we need to make a start. Nawrocki replied that he has been out to the Fridley facility and they have done a good job, but he also looks at what we are expecting people to pay in this area and we have one of the lowest property income levels in the metro area and we have to try and keep down some of the taxes we are levying. Peterson stated even though we may have a lower income doesn't mean we should starve our citizens of opportunities. These things are virtually free. We have a very active art community here. We have plays at the Methodist Church and at the Recreation Center, along with the Frolic Follies at Immaculate Church to name a few. We just want to make things better and get more people involved in the community. In Northeast Minneapolis, the Art-a-Whirl is an economic benefit to their community. Peterson stated he believes Nawrocki is looking at it from the wrong end. Schmitt stated our goal is to be a community working together with our schools, churches, with the arts community, and residents. Getting them all together,to celebrate and work together to build on it. We have a lot of great talent in this community. The Heights Theater is great now that it has taken over and our Library does their annual Christmas event over there. It is amazing what it is doing for our community. The Arts Commission would be something to help draw people to our city. Nawrocki emphasized these are all good reasons for the commission but feels it would be better handled as a private organization. The City needs to watch where they are spending money. Upon Vote: Roll Call Vote: Schmitt; aye, Williams; aye, Diehm; aye, Nawrocki; nay, Peterson; aye. 4ayes:Inay. Motion Carried. Diehm asked if we will be getting the information out there to the residents on how to get on the commission. Fehst indicated yes, we will get the information out to the people by putting it on our website and cable. Peterson also indicated we would get it to local newspapers. B. Bid Considerations 10 C. New Business and Reports 8. ADMINISTRATIVE REPORTS Report of the City Manager Fehst stated we did have an executive session and no further negotiations are in the offering as we have not heard back from the owner. We are continuing to meet with Representative Ellison's office regarding the disposition with Parkview north and south on Aeon and we have run into a brick wall. We have had discussions with them and let them know that we are not going away and we are trying to work with HUD. There is a great need for additional services for these buildings and we have reached our limit as to how much we can provide. Nawrocki indicated his disappointment in how the City newsletter does not talk about the City budget and the increases that the citizens are going to be paying. Fehst stated there will be a decrease and the average decrease will be around 6.5%. Fehst went over fiscal disparities with Nawrocki and indicated that this will offset the increase in the levy. Nawrocki stated he had a call from a resident and he went out and looked at some light poles where the copper grounding wires were stolen and if lightning hits it, it may take out the transformer if not grounded. Peterson stated we could put it on the cable channel on who to call. Fehst stated we will contact Excel and find out what should be done. Nawrocki indicated at 4440 5h Street there are two trees, one by the vacant lot that is dead and the other one the roots have started to lift up the side walk and would like it looked at. On 40'' and University—what is going on there? Fehst stated they took out the fuel tanks as they no longer wish to make it a gas station and are going to set it up as a deli. The owners have been in contact with the Community Development department. Fehst announced that our Community Development Scott Clark is going to be retiring in April. He commended him on doing a fantastic job since he stepped in flawlessly six years ago. Report of the City Attorney Hoeft reiterated that there was an Executive Session on October 14, 2013 regarding the potential sale of 3989 University Avenue. 9. CITIZENS FORUM Nile Harper, 1437 Glacier, asked four questions. One, is there an ongoing commitment by the Council to continue to pursue negotiations for the building at 40`x' and Central? Fehst stated that they are at a standstill and we cannot comment more than that at this time. Diehm stated that she felt some of us on the Council could commitment that they are committed to finding a site for a new library. Second, are there any other possible sites for a new library being talked about?Fehst replied, not really at this time. Thirdly, Harper asked the Council if they were optimistic that the quietude that now exists, will be 11 overcome and further negotiations will proceed. Fehst indicated he did not feel this was something the Council could comment on at this time. Finally, Harper asked if the Council had a best guess as to if construction or renovations were to begin,would it begin in 2014. Fehst indicated the City does plan on meeting with the Economic Development Committee and discussing the future development of the City and a new library will more than likely come up,but at this point we cannot really put a date out there. Harper wanted to know if it was fair to say at this point that the primary barrier on reaching some type of a proposal among the relative parties is the owner. Fehst stated it is hard to say as there are many people and many variables involved. Harper thanked the City Manager and the Council for their time and their dedication to this project. Peterson stated that he is more committed now than ever to get a new library and he is making it his goal. Peterson announced that he will be kicking off the holidays with the Taste of Heights on November 22nd with food from area restaurants and music. He encouraged residents of all different ethnic backgrounds to come out and enjoy the food,music and fun. Mayor Peterson asked that we keep our service men and women in our thoughts and prayers and to do a random act of kindness. 10. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:25 PM Tori Leonhardt, City Clerk/Council Secretary Extract of Minutes of Meeting of the City Council of the City of Columbia Heights,Anoka County,Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Columbia Heights, Minnesota, was duly held in the City Hall in said City on Monday, October 28,2013, commencing at 7:00 P.M. The following members were present: Nawrocki,Williams,Diehm, Schmitt,and Mayor Peterson and the following were absent: None The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's General Obligation Improvement and Utility Revenue Bonds, Series 2013A,to be issued in the original aggregate principal amount of$2,775,000. 12 The City Manager presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in EXHIBIT A attached. After due consideration of the proposals,Member Williams then introduced the following written resolution,the reading of which was dispensed with by unanimous consent,and moved its adoption: 13 RESOLUTION NO.2013-98 A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BONDS, SERIES 2013A, IN THE ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $2,775,000; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Columbia Heights, Anoka County, Minnesota(the"City")as follows: Section 1. Sale of Bonds. 1.01. Authorization. Pursuant to a resolution adopted by the City Council of the City on September 23, 2013 (the "Authorizing Resolution"), the City Council gave preliminary approval to the issuance of the City's General Obligation hnprovement and Utility Revenue Bonds, Series 2013A (the "Bonds"). The Bonds were authorized to be issued pursuant to Minnesota Statutes, Chapters 429, 444, and 475, as amended (collectively, the "Act"), including Section 475.67, subdivision 3, in order to (i)finance certain assessable public improvements within the City designated as Street Rehabilitation Project No. 1302 (the"Assessable Improvements"); (ii) finance various improvements to the City's water, sanitary sewer, and storin sewer systems (the "Utility Improvements"); and (iii) refund a portion of the City's outstanding General Obligation Improvement and Utility Revenue Bonds, Series 2006A (the "Refunded Bonds"), dated December 7, 2006, and issued in the original aggregate principal amount of $4,075,000 and currently outstanding in the aggregate principal amount of$1,325,000, the proceeds of which were used to finance certain assessable public improvements in the City (the "Prior Assessable Improvements") and certain improvements to the water system and sewer system of the City (the "Prior Utility Improvements"). 1.02. Award to the Purchaser and Interest Rates. The proposal of United Bankers' Bank, Bloomington,Minnesota(the"Purchaser"),to purchase the Bonds is hereby found and determined to be a reasonable offer and is hereby accepted,the proposal being to purchase the Bonds at a price of$2,761,680 (par amount of $2,775,000, less underwriter's discount of $13,320), plus accrued interest to date of delivery,if any,for Bonds bearing interest as follows: Year Interest Rate Year Interest Rate 2015 0.400% 2020 1.700% 2016 0.550 2021 2.000 2017 0.800 2022 2.200 2018 1.100 2023 2.350 2019 1.400 2024 2.500 True interest cost: 1.8450555% 1.03. Purchase Contract. The sum of$14,430, being the amount proposed by the Purchaser in excess of $2,747,250, shall be credited to the accounts in the Debt Service Fund hereinafter created, deposited in the accounts in the Construction Fund hereinafter created, or deposited in the Redemption Fund hereinafter created, as determined by the Finance Director in consultation with the City's financial advisor. The Finance Director is directed to retain the good faith check of the Purchaser, pending 14 completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terins and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to the Act, including Section 475.67, subdivision 3 of the Act, in the total principal amount of$2,775,000, originally dated November 21,2013, 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: Year Amount Year Amount 2015 $395,000 2020 $235,000 2016 390,000 2021 215,000 2017 405,000 2022 220,000 2018 230,000 2023 225,000 2019 235,000 2024 225,000 (a) $235,000 of the Bonds, constituting the Improvement Bonds, maturing in the amounts and on the dates set forth below, are being issued to finance the Assessable Improvements: Year Amount Year Amount 2015 $25,000 2020 $25,000 2016 25,000 2021 25,000 2017 25,000 2022 20,000 2018 25,000 2023 20,000 2019 25,000 2024 20,000 (b) $1,685,000 of the Bonds, constituting the Utility Revenue Bonds, maturing in the amounts and on the dates set forth below,are being issued to finance the Utility Improvements: Year Amount Year Amount 2015 $105,000 2020 $190,000 2016 105,000 2021 190,000 2017 110,000 2022 200,000 2018 185,000 2023 205,000 2019 190,000 2024 205,000 (c) The remainder of the Bonds, constituting the Refunding Bonds, in the principal amount of$855,000, maturing in the amounts and on the dates set forth below, are being issued to redeem and prepay the 2015 through 2020 maturities of the Refunded Bonds: Year Amount Year Amount 2015 $265,000 2018 $20,000 2016 260,000 2019 20,000 2017 270,000 2020 20,000 15 (i) Furthermore, $620,000 of the Refunding Bonds (the "Assessable Improvement Refunding Bonds"), maturing in the amounts and on the dates set forth below, will be allocated to the Assessable Improvements Refunding Bonds: Year Amount Year Amount 2015 $185,000 2018 $20,000 2016 185,000 2019 20,000 2017 190,000 2020 20,000 (ii) The remainder of the Refunding Bonds, in the principal amount of$235,000 (the"Utility Improvements Refunding Bonds"), maturing in the amounts and on the dates set forth below, will be allocated to the Utility Improvements Refunding Bonds: Year Amount Year Amount 2015 $80,000 2017 $80,000 2016 75,000 1.05. Optional Redemption. The City may elect on February 1,2022, and on any day thereafter to prepay Bonds due on or after February 1,2023. 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. 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 August 1,2014, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such 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) Rte. 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. 16 (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 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. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose naive 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 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 furnishing 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 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. G) 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 17 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. Appointment 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 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 Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. 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 those 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 a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, 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. 2.06. 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 EXHIBIT B attached hereto 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 3. Form of Bond. 3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the forn set forth in EXHIBIT B. 3.02. Approving Legal Opinion. The City Manager 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 4. Payment; Security, Pledges and Covenants. 18 4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Improvement and Utility Revenue Bonds, Series 2013A Debt Service Fund (the"Debt Service Fund")hereby created. The Debt Service Fund shall be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The City will maintain the following accounts in the Debt Service Fund: the "Assessable Improvements Account" and the "Utility Improvements Account." Amounts in the Assessable Improvements Account are irrevocably pledged to the Improvement Bonds and the Assessable Improvements Refunding Bonds, and amounts in the Utility Improvements Account are irrevocably pledged to the Utility Revenue Bonds and the Utility Improvements Refunding Bonds. (a) Assessable Improvements Account. The Finance Director shall timely deposit in the Assessable Improvements Account of the Debt Service Fund(i)the special assessments levied against the property specially benefited by the Assessable Improvements and allocated to the payment of debt service on the Improvement Bonds, which are pledged to the Assessable Improvements Account; and (ii) the ad valorem taxes hereinafter levied and special assessments levied against the property specially benefited by the Prior Assessable Improvements, which are pledged to the Assessable Improvements Account. There is also appropriated to the Assessable Improvements Account a pro rata portion any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. (b) Utility Improvements Account. The City will continue to maintain and operate its Water Fund, Sanitary Sewer Fund, and Storin Sewer Fund, to which will be credited all gross revenues of the water system, sanitary sewer system, and storm sewer system,respectively, and out of which will be paid all normal and reasonable expenses of current operations of such systems. Any balances therein are deemed net revenues (the "Net Revenues") and will be transferred, from time to time, to the Utility Improvements Account of the Debt Service Fund,which Utility Improvements Account will be used only to pay principal of and interest on the Utility Revenue Bonds, the Utility Revenue Refunding Bonds, and any other bonds similarly authorized. There will always be retained in the Utility Improvements Account a sufficient amount to pay principal of and interest on all of the Utility Revenue Bonds and Utility Revenue Refunding Bonds, and the Finance Director must report any current or anticipated deficiency in the Utility Improvements Account to the City Council. There is also appropriated to the Utility Improvements Account a pro rata portion of any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03 hereof. 4.02. Construction Fund. The City hereby creates the General Obligation Improvement and Utility Revenue Bonds, Series 2013A Construction Fund (the "Construction Fund"). The City will maintain the following accounts in the Construction Fund: the"Assessable Improvements Account" and the"Utility Improvements Account." Amounts in the Assessable Improvements Account are irrevocably pledged to the Improvement Bonds, and amounts in the Utility Improvements Account are irrevocably pledged to the Utility Revenue Bonds. (a) Assessable Improvements Account. Proceeds of the Improvement Bonds, less the appropriations made in Section 4.01(a) hereof, together with any other funds appropriated for the Assessable Improvements and special assessments collected during the construction of the Assessable hnprovements, will be deposited in the Assessable Improvements Account of the Construction Fund to be used solely to defray expenses of the Assessable Improvements and the payment of principal of and interest on the Improvement Bonds prior to the completion and payment of all costs of the Assessable Improvements. Any balance remaining in the Assessable Improvements Account after completion of the Assessable Improvements may be used to pay the cost in whole or in part of any other improvement instituted under Chapter 429 of the Act, under the direction of the City Council. When the Assessable 19 Improvements are completed and the cost thereof paid, the Assessable Improvements Account of the Construction Fund is to be closed and any subsequent collections of special assessments for the Assessable Improvements are to be deposited in the Assessable Improvements Account of the Debt Service Fund. (b) Utility Improvements Account. Proceeds of the Utility Revenue Bonds, less the appropriations made in Section 4.01(b) hereof, will be deposited in the Utility Improvements Account of the Construction Fund to be used solely to defray expenses of the Utility Improvements. When the Utility Improvements are completed and the cost thereof paid, the Utility Improvements Account of the Construction Fund is to be closed and any funds remaining may be deposited in the Utility Improvements Account of the Debt Service Fund. 4.03. Redemption Fund. The City hereby creates the General Obligation Improvement and Utility Revenue Bonds, Series 2013A Redemption Fund (the "Redemption Fund"). All proceeds of the Refunding Bonds, less the costs of issuance of the Refunding Bonds and the appropriations made in Section 4.01(a) pertaining to the Assessable Improvements Refunding Bonds and in Section 4.01(b) pertaining to the Utility Improvements Refunding Bonds,will be deposited in the Redemption Fund to be used solely to redeem and prepay the 2015 through 2020 maturities of the Refunded Bonds. Any balance remaining in the Redemption Fund after the redemption of the Refunded Bonds on December 1,2013 (the "Redemption Date") shall be deposited on a pro rata basis in the Assessable Improvements Account and the Utility Improvements Account of the Debt Service Fund herein created. 4.04. Prior Debt Service Fund; Cancellation of Prior Tax Levy. The debt service fund heretofore established for the Refunded Bonds pursuant to the resolution authorizing the issuance and sale of the Refunded Bonds (the "Prior Resolution") shall be closed following the redemption of the Refunded Bonds, and all monies therein shall be transferred on a pro rata basis to the Assessable Improvements Account and the Utility Improvements Account of the Debt Service Fund herein created. Additionally, following the payment in full of all outstanding principal of and interest due on the Refunded Bonds on the Redemption Date, the Finance Director is directed to certify such fact to and request the Manager of Property Records and Taxation of Anoka County, Minnesota (the "Manager of Property Records and Taxation")to cancel any and all tax levies made by the Prior Resolution for collection thereafter. 4.05. City Covenants with Respect to the Improvement Bonds. It is hereby determined that the Assessable Improvements will directly and indirectly benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City will cause the special assessments levied for the Assessable Improvements to be promptly levied so that the first installment of the such special assessments will be collectible not later than 2014 and will take all steps necessary to assure prompt collection, and the levy of the special assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Assessable Improvement financed wholly or partly from the proceeds of the Improvement Bonds, and will take all further actions necessary for the final and valid levy of the special assessments and the appropriation of any other funds needed to pay the Improvement Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in special assessments, the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing receipts and disbursements in connection with the Assessable Improvements, special assessments levied therefor, 20 therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand,and the balance of unpaid special assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. (e) At least 20% of the cost to the City of the Assessable Improvements described herein will be specially assessed against benefited properties. 4.06. City Covenants with Respect to the Utility Revenue Bonds. The City Council covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the water system, sanitary sewer system, and storm sewer system as public utilities and conveniences free from competition of other like municipal utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the Water Fund, Sanitary Sewer Fund, and Storm Sewer Fund, respectively, as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Utility Improvements Account of the Debt Service Fund as a separate account and will cause money to be credited thereto from time to time out of Net Revenues from the water system, sanitary sewer system, and storm sewer system in sums sufficient to pay principal of and interest on the Utility Revenue Bonds when due. (c) 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, sanitary sewer system, and storm sewer system and which will be open to inspection and copying by any Bondholder, or the holder's 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) The City Council will cause persons handling revenues of the water system, sanitary sewer system, and storm sewer 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 such systems to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The City Council will keep the water system, sanitary sewer system, and storm sewer 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) The City and each and all of its officers will punctually perform all duties with reference to the water system,sanitary sewer system,and storm sewer system as required by law. (g) The City will impose and collect charges of the nature authorized by Section 444.075 of the Act, at the times and in the amounts required to produce Net Revenues adequate to 21 pay all principal and interest when due on the Utility Revenue Bonds and to create and maintain such reserves securing said payments as may be provided herein. (h) The City Council will levy general ad valorem taxes on all taxable property in the City when required to meet any deficiency in Net Revenues. 4.07, Prior Resolution Pledges. The City hereby restates and confirms in all respects the pledges and covenants of the City made by the Prior Resolution relating to (i) the Prior Assessable Improvements financed with the proceeds of a portion of the Refunded Bonds and the levy and collection of special assessments against property benefited by the Prior Assessable Improvements; and (ii) the ownership, protection of and other particulars governing the operation and financial management of the water system, sanitary sewer system, and storm sewer system of the City and the Prior Utility Improvements financed with the proceeds of a portion of the Refunded Bonds. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions hereof. 4.08. General Obligation Pledgee. For the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient balance is available therein. 4.09. Pledge of Taxes. For the purpose of paying the principal of and interest on the Assessable Improvements Refunding Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property 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 Assessable Improvements Account of the Debt Service Fund above provided and will be in the years and amounts as attached hereto as EXHIBIT C. 4.10. Certification to Manager of Property Records and Taxation as to Debt Service Fund Amount. It is hereby detennined that the estimated collection of the foregoing ad valorem taxes, special assessments, and Net Revenues will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the Finance Director may certify to the Manager of Property Records and Taxation the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Manager of Property Records and Taxation will thereupon reduce the levy collectible during such year by the amount so certified. 4.11. Registration of Resolution. The City Manager is authorized and directed to file a certified copy of this resolution with the Manager of Property Records and Taxation and to obtain the certificate required by Section 475.63 of the Act. Section 5. Refunding of Refunded Bonds; Findings, Redemption of Refunded Bonds. 5.01. Purpose of Refunding. The Refunded Bonds will be called for redemption on the Redemption Date (December 1,2013), in the aggregate principal amount of$1,325,000. It is hereby found and determined that based upon information presently available from the City's financial advisor, the issuance of the Bonds, a portion of which will be used to redeem and prepay the 2015 through 2020 22 maturities of the Refunded Bonds, is consistent with covenants made with the holders of the Refunded Bonds and is necessary and desirable for the reduction of debt service costs to the City. 5.02. Application of Proceeds of Refunding Bonds. It is hereby found and determined that the proceeds of the Refunding Bonds deposited in the Redemption Fund for the redemption and prepayment of the 2015 through 2020 maturities of the Refunded Bonds, along with cash on hand and any other funds on hand in the debt service fund established pursuant to the Prior Resolution to prepay the 2014 maturity of the Refunded Bonds, will be sufficient to prepay all of the principal of, interest on and redemption premium(if any)on the Refunded Bonds on the Redemption Date. 5.03. Redemption, Date of Redemption;Notice of Call for Redemption. The Refunded Bonds maturing on February 1, 2014 and thereafter will be redeemed and prepaid on December 1,2013. The Refunded Bonds will be redeemed and prepaid in accordance with their terns and in accordance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as EXHIBIT D, which terms and conditions are hereby approved and incorporated herein by reference. The registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of Call for Redemption to each registered holder of the Refunded Bonds at least thirty (30) days prior to the Redemption Date. 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 furnished,will be deemed representations of the City as to the facts stated therein. 6.02. Certification as to Official Statement. The Mayor, City Manager, and 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. 6.03. Other Certificates. The Mayor, City Manager, and Finance Director are hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, City Manager, and Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for and delivery of the Bonds. 6.04. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to K1einBank, Chaska, Minnesota on the closing date for further distribution as directed by the City's financial advisor, Ehlers&Associates,Inc. Section 7. Tax Covenant. 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 23 which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the"Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, 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 2013)exceed the small-issuer exception amount of$5,000,000. (b) With respect to the Improvement Bonds and the Utility Revenue Bonds, for purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City hereby 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 and outstanding at one time is not reasonably expected to exceed$5,000,000, all within the meaning of Section 148(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 141 through 150 of the Code. 7.04. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not"private activity bonds"as defined in Section 141 of the Code; (b) the City designates the Bonds as "qualified tax-exempt obligations"for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3)bonds)which will be issued by the City(and all subordinate entities of the City)during calendar year 2013 will not exceed$10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2013 have been designated for purposes of Section 265(b)(3) of the Code. 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 System;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 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in 24 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. 8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the naive of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers,banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the"Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or 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, the Registrar and the Paying Agent may treat and consider the person in whose naive 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 Paying Agent will pay all principal of,premium,if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the 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 Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co." will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 8.03. Representation 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 Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent,respectively,to be complied with at all times. 8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the 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 all notices with respect to the Bond 25 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. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 9.02. 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. 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 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. The motion for the adoption of the foregoing resolution was duly seconded by Member Schmitt, and upon vote being taken thereon,the following voted in favor thereof: Nawrocki,Williams,Diehm, Schmitt,and Mayor Peterson and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. Adopted: October 28,2013 EXHIBIT A PROPOSALS 26 BID TABULATION $2,795,000*General Obligation Improvement and Utility Revenue Bonds,Series 2013A CITY OF COLUMBIA HEIGHTS,MINNESOTA SALE:October 28,2013 AWARD:UNITED BANKERS'BANK RATING:Standard&Poor's Credit Markets"AA" BBI:4.56% NET TRUE NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST (February 1) YIELD COST RATE UNITED BANKERS'BANK 2015 0.400% 0.400% $2,781,584.00 $262,491.21 1.8483% Bloomington,Minnesota 2016 0.550% 0.550% 2017 0.800% 0.800% 2018 1.100% 1.100% 2019 1.400% 1.400% 2020 1.700% 1.700% 2021 2.000% 2.000% 2022 2.200% 2.200% 2023 2.350% 2.350% 2024 1500% 2.500% BAIRD 2015 2.000% $2,840,766.95 $267,336.18 1.8653% Milwaukee,Wisconsin 2016 2.000% 2017 2.000% 2018 2.000% 2019 2.000% 2020 2.000% 2021 2.250% 2022 2.250% 2023 2.500% 2024 2.500% PIPER JAFFRAY&CO. 2015 3.000% $2,920,168.80 $276,468.01 1.8990% Minneapolis,Minnesota 2016 3.000% 2017 3.000% 2018 3.000% 2019 3.000% 2020 3.000% 2021 3.000% 2022 3.000% 2023 2.500% 2024 2.500% *Subsequent to bid opening the issue size was decreased to$2,775,000. Adjusted Price-$2,761,680.00 Adjusted Net Interest Cost-$259,269.38 Adjusted TIC-1.8450% wmehlerS-inC.com E H L E RS Minnesota phone 651-697-&500 3060 Centre Pointe Drive LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois fax 651-697.8555 Roseville.MN 55113-1122 27 $2,795,000 General Obligation Improvement and Utility Revenue Bonds,Series 2013A Page 2 City of Columbia Heights,Minnesota NET TRUE NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST (February 1) YIELD COST RATE BMO CAPITAL MARKETS GKST INC. 2015 3.000% $2,909,367.90 $277,983.49 1.9035% Chicago,Illinois 2016 1000% 2017 2.000% 2018 2.000% 2019 3.000% 2020 3.000% 2021 3.000% 2022 3.000% 2023 3.000% 2024 3.000% FTN FINANCIAL CAPITAL MARKETS 2015 2.500% $2,878,629.80 $280,490.59 1.9408% Memphis,Tennessee 2016 2.500% 2017 2.500% 2018 2.500% 2019 2.500% 2020 2.500% 2021 2.500% 2022 2.500% 2023 2.750% 2024 2.750% STERNE AGEE 2015 2.250% $2,900,969.80 $290,681.24 1.9951% Birmingham,Alabama 2016 1250% 2017 2.250% 2018 2.250% 2019 3.000% 2020 3.000% 2021 3.000% 2022 3.000% 2023 3.000% 2024 3.000% LIMB BANK,N.A. 2015 2.000% $2,809,534.00 $309,646.28 2.1755% Kansas City,Missouri 2016 2.000% 2017 2.000% 2018 2.000% 2019 2.000% 2020 2.000% 2021 2.200% 2022 2.400% 2023 2.600% 2024 2.800% 28 EXHIBIT B FORM OF BOND No. R- UNITED STATES OF AMERICA $ STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BOND SERIES 2013A Date of Rate Maturity Original Issue CUSIP February 1,20 November 21,2013 Registered Owner: Cede& Co. The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation in Anoka County, Minnesota (the"City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal 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 August 1,2014, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof,the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond 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 irrevocably pledged. The City may elect on February 1,2022, and on any day thereafter to prepay Bonds due on or after February 1,2023. 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 The Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of$2,775,000 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 October 28,2013 (the "Resolution"), for the purpose of providing money to aid in financing certain assessable public improvements and improvements to the City's water system, sanitary sewer system, and storm sewer system and to refund a portion of certain outstanding general obligations of 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, Chapters 429, 444, and 475, as amended, including Section 475.67, subdivision 3, 29 and the principal hereof and interest hereon are payable in part from ad valorem taxes, special assessments levied against property specially benefited by the assessable improvements, and net revenues from the water system, sanitary sewer system, and storm sewer system of the City, 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 taxes, special assessments, and net revenues 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. The City Council has designated the issue of Bonds of which this Bond forms a part as"qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the"Code") relating to disallowance of interest expense for financial institutions and within the$10 million limit allowed by the Code for the calendar year of issue. IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the water system, sanitary sewer system, and storm sewer system free from competition by other like municipal utilities; that adequate insurance on said systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Water Fund, Sanitary Sewer Fund, and Storm Sewer Fund, into which it will pay all of the gross revenues from the water system, sanitary sewer system, and storm sewer system,respectively;that it will also create and maintain a Utility Improvements Account within the General Obligation Improvement and Utility Revenue Bonds, Series 2013A Debt Service Fund, into which it will pay, out of the net revenues from the water system, sanitary sewer system, and stonn sewer system, a sum sufficient to pay principal of the Utility Revenue Bonds and the Utility Improvements Refunding Bonds (as defined in the Resolution) and interest on the Utility Revenue Bonds and the Utility Improvements Refunding Bonds when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of the water system, sanitary sewer system, and storm sewer system. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done,do exist,have happened and have been performed as so required, and that the issuance of 30 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 Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF,the City of Columbia Heights,Anoka County, Minnesota,by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: November 21,2013 CITY OF COLUMBIA HEIGHTS, MINNESOTA (Facsimile) (Facsimile) Mayor City Manager CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S.BANK NATIONAL ASSOCIATION By Authorized Representative ABBREVIATIONS 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 in common UNIF GIFT MIN ACT Custodian (Cust) (Minor) TEN ENT-- as tenants by entireties under Uniform Gifts or Transfers to Minors Act, State of JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. 31 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder,and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond,with full power of substitution in the premises. Dated: 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, STEMP, 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 32 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. Signature of Date of Registration Registered Owner Officer of Re istrar Cede& Co. Federal ID #13-2555119 EXHIBIT C TAX LEVY SCHEDULE City of Columbia Heights, Minnesota $2,775,000 General Obligation Improvement and Utility Revenue Bonds,Series 2013A Dated Date: 11/21/2013 Tax Tax Bond Less: Less: Levy Collect Pay Total P&I Special Special Net Year Year Year P&I x 105% Assmts.(1) Assmts.(2) Levy 2013 / 2014 / 2015 218,976.26 229,925.07 (32.900.00) (104,917.78) 92,107.29 2014 / 2015 / 2016 216,675.00 227,508.75 (31,960.00) (100,328.63) 95,220.12 2015 / 2016 / 2017 220,520.00 231,546.00 (31,020.00) (95,739.49) 104,786.51 2016 1 2017 / 2018 48,800.00 51,240.00 (30.080.00) (21,882.00) - 2017 / 2018 / 2019 48,305.00 50.720.25 (29,140.00) (21,651.00) - 2018 / 2019 / 2020 47,675.00 50.058.75 (28.200.00) (21,357.00) 501.75 2019 / 2020 / 2021 26,910.00 28,255.50 (27,260.00) 995.50 2020 / 2021 1 2022 21,410.00 22,480.50 (26,320.00) - 2021 1 2022 / 2023 20,970.00 22,018.50 (25,380.00) - 2022 / 2023 / 2024 20,500.00 21.525.00 (24,440.00) - Totals 890,741.26 935,278.32 (286.700.00) (365,875.90) 293,611.17 (1) Projected special assessment revenue based on$235,000 assessed at 4.00%. (2) Projected remaining special assessment revenue based on original schedule for the Series 2006A Bonds. Notes: Excess bond proceeds in the amount of$224.21 (contingency)will be deposited into the Debt Service Fund for the Series 2013A Bonds. Original tax levies for collection years 2014 through 2019 on the Series 2006A Bonds will be cancelled. 33 EXHIBIT D NOTICE OF CALL FOR REDEMPTION $4,075,000 CITY OF COLUMBIA HEIGHTS,MINNESOTA GENERAL OBLIGATION IMPROVEMENT AND UTILITY REVENUE BONDS SERIES 2006A NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Columbia Heights, Anoka County,Minnesota(the"City"),there have been called for redemption and prepayment on December 1,2013 all outstanding bonds of the City designated as General Obligation Improvement and Utility Revenue Bonds, Series 2006A,dated December 7,2006,having stated maturity dates of February 1 in the years 2014 through 2020,both inclusive,totaling$1,325,000 in principal amount,and with the following CUSIP numbers: Year of Maturity Amount CUSIP Number 2014 $485,000 197684 LSO 2015 245,000 197684 LT8 2016 250,000 197684 LU5 2017 270,000 197684 LV3 2018 25,000 197684 LW 1 2019 25,000 197684 LX9 2020 25,000 197684 LY7 The bonds are being called at a price of par plus accrued interest to December 1,2013,on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of U.S. Bank National Association, St. Paul, Minnesota,at the following address,on or before December 1,2013: If by mail: If by hand or overnight: U.S. Bank National Association U.S. Bank National Association Corporate Trust Operations, 3rd Floor 60 Livingston Avenue P.O. Box 64111 EP-MN-WS3C St. Paul,MN 55164-0111 Bond Drop Window, 15`Floor St. Paul,MN 55107 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2003, the City is required to withhold a specified percentage of the principal amount of the redemption price payable to the holder of any Bonds subject to redemption and prepayment on the Redemption Date, unless the City is provided with the Social Security Number or Federal Employer Identification Number of the holder, properly certified. Submission of a fully executed Request for Taxpayer Identification Number and Certification, Forin W-9 (Rev. December 2011), will satisfy the requirements of this paragraph. D-2 Error!Unknown document property name. 34 Additional information may be obtained from: U.S. Bank National Association Corporate Trust Division Bondholder Services (800)525-8574 Dated: 92013. BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA By: /s/ Walter Fehst City Manager City of Columbia Heights,Minnesota STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF COLUMBIA HEIGHTS ) 1, the undersigned, being the duly qualified and acting City Clerk of the City of Columbia Heights, Anoka County,Minnesota(the"City"),do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on October 28, 2013, with the original minutes on file in my office and the extract is a full,true and correct copy of the minutes insofar as they relate to the issuance and sale of the City's General Obligation Improvement and Utility Revenue Bonds, Series 2013A, in the original aggregate principal amount of$2,775,000. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of 52013. City Clerk City of Columbia Heights,Minnesota (SEAL) D-3 Error!Unknown document property name. 35 City Council Meeting Minutes Monday,October 14,2013 Page 4 of 37 STATE OF MINNESOTA CERTIFICATE OF MANAGER OF PROPERTY RECORDS AND TAXATION COUNTY OF ANOKA AS TO TAX LEVY AND REGISTRATION I,the undersigned Manager of Property Records and Taxation of Anoka County,Minnesota,hereby certify that a certified copy of a resolution adopted by the governing body of the City of Columbia Heights, Minnesota (the "City"),on October 28,2013,levying taxes for the payment of the City's General Obligation Improvement and Utility Revenue Bonds, Series 2013A, in the original aggregate principal amount of$2,775,000, dated November 21, 2013, has been filed in my office and said bonds have been entered on the register of obligations in my office and that such tax has been levied as required by law. WITNESS My hand and official seal this day of ,2013. Manager of Property Records and Taxation Anoka County,Minnesota (SEAL) Deputy RESOLUTION 2013-91 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 Steven A Boyd (Hereinafter "Owner of Record"). Whereas, the owner of record is the legal owner of the real property located at 4217 Central Avenue 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 September 19, 2013. 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: D-436 Error!Unknown document property name. City Council Meeting Minutes Monday,October 14,2013 Page 5 of 37 FINDINGS OF FACT 1. That on August 12, 2013 an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2. That on September 19, 2013 inspectors re-inspected the property listed above. Inspectors noted that violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3. That on October 16, 2013 inspectors re-inspected the property and found that violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s)were found to exist, to wit: A. Shall scrape &paint house&trim. B. Shall repair/replace any/all broken siding. C. Shall repair/replace broken hand rail on rear stairs. D. Shall repair/replace the screen(s) on the building. E. Shall replace missing boards in fence on south side. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 1. That the property located at 4217 Central 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 4217 Central 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. Passed this 28th day of October 2013 RESOLUTION 2013-92 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 Gould Investors, LP (Hereinafter "Owner of Record"). D-537 Error!Unknown document property name. City Council Meeting Minutes Monday,October 14,2013 Page 6 of 37 Whereas, the owner of record is the legal owner of the real property located at 4811 Central Avenue 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 September 17, 2013. 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 August 15, 2013 an inspection was conducted on the property listed above. Inspectors found violations. A compliance order was sent via regular mail to the owner at the address. 2. That on September 17, 2013 inspectors re-inspected the property listed above. Inspectors noted that violations remained uncorrected. A compliance order and statement of cause was mailed via regular mail to the owner listed in the property records. 3. That on October 17, 2013 inspectors re-inspected the property and found that violations remained uncorrected. 4. That based upon said records of the Fire Department, the following conditions and violations of City Codes(s) were found to exist, to wit: A. Shall repair/replace front parking lot. B. Shall contact Public Works department to raise curb stop. 5. That all parties, including the owner of record and any occupants or tenants, have been given the appropriate notice of this hearing according to the provisions of the City Code Section 8.206(A) and 8.206(B). CONCLUSIONS OF COUNCIL 3. That the property located at 4811 Central Avenue N.E. is in violation of the provisions of the Columbia Heights City Code as set forth in the Notice of Abatement. 4. 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 3. The property located at 4811 Central Avenue N.E. constitutes a nuisance pursuant to City Code. 4. That a copy of this order shall be served upon all relevant parties and parties in interest. D-638 Error!Unknown document property name. City Council Meeting Minutes Monday,October 14,2013 Page 7 of 37 Passed this 28a'day of October 2013 RESOLUTION 2013-96 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of that certain residential rental license held by Walter Azizi (Hereinafter"License Holder"). Whereas, license holder is the legal owner of the real property located at 4030 Quincy Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on September 24, 2013 of a public hearing to be held on October 28, 2013. 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 August 16, 2013 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 September 24, 2013 inspectors for the City of Columbia Heights performed a reinspection and noted that violations remained uncorrected. A statement of cause was mailed via regular mail to the owner at the address listed on the rental housing license application. 3. That on October 9, 2013 inspectors for the City of Columbia Heights checked records for this property and noted that the violations remained uncorrected. 4. That based upon said records of the Enforcement Office, the following conditions and violations of the City's Property Maintenance Code were found to exist,to-wit: a. Shall repair/replace damaged fence in front. b. Shall install hand railing on front steps. c. Failure to submit renewal rental license application and fees. 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 5A, Article III 5A.306 and 5A.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F12290 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. D-739 Error!Unknown document property name. City Council Meeting Minutes Monday,October 14,2013 Page 8 of 37 3. All tenants shall remove themselves from the premises within 45 days from the first day of posting of this Order revoking the license as held by License Holder. Passed this 28t" day of October 2013 RESOLUTION 2013-97 Resolution of the City Council for the City of Columbia Heights approving revocation pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(A) of that certain residential rental license held by Anthony Brown(Hereinafter"License Holder"). Whereas, license holder is the legal owner of the real property located at 4056-58 5th Street N.E. Columbia Heights, Minnesota, Whereas, pursuant to City Code, Chapter 5A, Article IV, Section 5A.408(B), written notice setting forth the causes and reasons for the proposed Council action contained herein was given to the License Holder on September 11, 2013 of an public hearing to be held on October 28, 2013. 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 July 15, 2013 inspection office staff sent a letter requesting the owner of the property to renew the rental license for this property. The letter was mailed by regular mail to the owner at the address listed in the property records. 2. That on September 11, 2013 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: a. 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 5A, Article III 5A.306 and 5A.303(A). ORDER OF COUNCIL 1. The rental license belonging to the License Holder described herein and identified by license number F12187 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; D-840 Error!Unknown document property name. City Council Meeting Minutes Monday,October 14,2013 Page 9 of 37 3. All tenants shall remove themselves from the premises within 45 days from the first day of posting of this Order revoking the license as held by License Holder. Passed this 28"'day of October 2013 D-941 Error!Unknown document property name. CITY COUNCIL LETTER MEETING OF:November 12,2013 AGENDA SECTION: CONSENT ORIGINATING DEPT: CITY MANAGER NO: FINANCE APPROVAL ITEM: ADOPT RESOLUTION 2013-101, BEING BY: JOSEPH KLOIBER BY: A A RESOLUTION APPROVING THE TERMS OFf��'/ AN INTER-FUND LOAN FROM THE DATE: November 7,2013 COMMUNITY DEVELOPMENT CAPITAL IMPROVEMENT FUND 420 TO THE ANOKA COUNTY COMMUNITY DEVELOPMENT PROGRAMS FUND 202 Background In December 2012, the EDA purchased the Mady-Foss property at 3927 Central Avenue using available funds from the Community Development Capital Improvement Fund 420. Prior to the purchase of the property, the City passed a resolution (2012-51) requesting Anoka County HRA levy funds from 2008-2012 be used towards the purchase. These funds were disbursed from the Anoka County HRA and totaled $573,383.82. At the October 14, 2013 meeting, Council approved a grant agreement between the City and Anoka County HRA to apply levy funds collected in 2013 & 2014 to the remaining balance of the purchase price for 3927 Central Avenue. Analysis A temporary inter-fund loan between the Community Development Capital Improvement Fund 420 and the Anoka County Community Development Program Fund 202 should be established until the Anoka County HRA levies for 2013 and 2014 are collected and distributed to the City. Staff recommends that the City Council adopt the following motions: RECOMMENDED MOTION: Move to waive the reading of Resolution 2013-101, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2013-101, being a resolution approving the terms of an inter-fund loan from the Community Development Capital Improvement Fund 420 to the Anoka County Community Development Programs Fund 202. JPK 1311121COUNCIL Attachment COUNCIL ACTION: 42 RESOLUTION 2013-101 CITY OF COLUMBIA HEIGHTS RESOLUTION APPROVING THE TERMS OF AN INTER-FUND LOAN FROM THE COMMUNITY DEVELOPMENT CAPITAL IMPROVEMENT FUND 420 TO THE ANOKA COUNTY COMMUNITY DEVELOPMENT PROGRAMS FUND 202 RECITALS A. The City of Columbia Heights ("City") and its Economic Development Authority ("Authority"), by participation in the Anoka County Housing and Redevelopment Authority (the "ACHRA") economic development activities, can request funds to support the City's redevelopment and housing maintenance and improvement goals within the City. B. The Authority purchased 3927 Central Avenue NE (the "Property") in December 2012 using Community Development Capital Improvement Fund(fund 420). C. The City adopted Resolution 2012-51, requesting that the ACHRA dedicate the annual ACHRA levy collection for fiscal years 2008-2012 for the purchase of the Property, $573,383.82. D. October 14, 2013 the Council approved a grant agreement by and between the ACHRA and the City regarding the disbursement of levy funds. E. The grant agreement(Contract 2538)dedicates the annual ACHRA levy collected in the City for the tax levy payable in 2013 and 2014 towards the purchase of the Property. F. The City has determined to temporarily finance the remaining levy committed, $340,839.87, from fund 420 at 0% interest,until it is collected from the tax levy payable in 2013 and 2014. G. Upon annual receipt of ACHRA funds,payment will be made to fund 420,until the outstanding balance is paid. NOW,THEREFORE,BE IT RESOLVED, The City Council authorizes a loan to the Authority for $340,839.87, from the Community Development Capital Improvement Fund 420 until funds are disbursed from the ACHRA. Passed this 12th day of November 2013 Offered by: Seconded by: Roll call: Mayor Gary L. Peterson Attest: Tori Leonhardt City Clerk/Council Secretary 43 CITY COUNCIL LETTER MEETING OF: November 12,2013 AGENDA SECTION: CONSENT ORIGINATING DEPT: CITY MANAGER FINANCE APPROVAL ITEM: RESOLUTION 2013-102 BY: JOSEPH KLOIBER BY: TRANSFER AND APPROPRIATE $34,000 FROM THE 2013 GENERAL FUND BUDGET DATE: NOVEMBER 5,2013 TO THE CAPITAL EQUIPMENT REPLACEMENT GENERAL GOVERNMENT FUND 431. Background As discussed at the November 4th council work session, if the City defers certain equipment purchases budgeted in 2013 to 2014, the City can take advantage of the new sales tax exemption (effective 2014) and save almost 7% on the cost of this equipment. Analysis These equipment purchases are budgeted in the general fund for 2013, which is an operating budget. In an operating budget, the amounts budgeted expire if not used by the end of the year. Staff recommends that the council transfer this existing 2013 budget appropriation to a capital budget (Fund 431). In a capital budget, the amounts budgeted do not expire each year; they remain in effect until used for the equipment or capital project. Alternatively, to make these purchases in 2014, the council could increase the 2014 general fund budget by the amount not spent in 2013 on these items. While this would certainly work, staff judges that it would make general fund expenses somewhat more complex for the average person to compare across years. The $34,000 budgeted in the 2013 General Fund for this equipment consists of- * $19,000 for up to three multi-function copiers; for the departments of fire, community development, and recreation: Perhaps only two copiers will be required, if the City sells the Parkview Villa operation in time to re-deploy the copier currently there. • $11,000 for a machine that folds and stuffs mail,primarily used by the Finance department • $4,000 for high capacity printer, primarily used by the Finance department Staff recommends that the City Council adopt the following motions: RECOMMENDED MOTION: Move to waive the reading of Resolution 2013-102, there being ample copies available to the public. RECOMMENDED MOTION: Move to adopt Resolution 2013-102, being a resolution to transfer and appropriate $34,000 from the 2013 general fund budget to the capital equipment replacement general government fund 431. JPK 1311122COUNCIL Attachment COUNCIL ACTION: 44 RESOLUTION NO. 2013-102 TRANSFER AND APPROPRIATE $34,000 FROM THE 2013 GENERAL FUND BUDGET TO THE CAPITAL EQUIPMENT REPLACEMENT GENERAL GOVERNMENT FUND 431 WHEREAS, the City Council of the City of Columbia Heights has adopted a 2013 budget as required by the City charter and Minnesota statute, including a 2013 budget for the City's general fund; and WHEREAS, included within the total 2013 general fund budget is $34,000 for certain equipment purchases; and WHEREAS, a cost savings can obtained by the City of Columbia Heights if it were to defer the purchase of this equipment to 2014; and WHEREAS, the City of Columbia Heights has determined that an effective way to account for the extension of the budget authority for these purchases to 2014 is to transfer the 2013 authorization to the capital equipment replacement fund established for such purposes; NOW, THEREFORE, BE IT RESOLVED that the 2013 City of Columbia Heights' budget be amended to transfer and appropriate $34,000 from the 2013 general fund budget to the capital equipment replacement general government fund 431. Passed this 120'day of November, 2013 Offered by: Seconded by: Roll Call: Mayor Gary Peterson Tori Leonhardt City Clerk/Council Secretary 45 CITY COUNCIL LETTER Meeting of. November 12 2013 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS Al ,ITEM: ADOPT RESOLUTION 2013-100 BY: Kevin Hansen BY: �/ r' APPROVING AMENDMENT NO. 2 TO WATER DATE: 11/06/13 DATE: AGREEMENT WITH THE CITY OF MINNEAPOLIS Background: The City of Columbia Heights entered into a long-term cone^::,t with the City of Minneapolis Water Works (MWW) for the supply and purchase of water in 2004. In January of this year, Contract Amendment No. 1 was approved so that Minneapolis both owns and maintains the master meter. This amendment was approved for meter ownership for each of their municipal or wholesale customers. Over the last 15 months, Minneapolis has been updating the Water Cost of Service (COS) Study, involving each of their municipal customers. The current water contract provides that the COS will be updated every five years. From the 2012 COS update, Minneapolis is proposing Contract Amendment 2. Analysis/Conclusions: The Minneapolis Water Works has used Cost of Service studies since the 1990's to determine rates that will provide sufficient revenue for the utility. It is a very involved and somewhat complex analysis that evaluates costs that customers should pay. It includes all of the costs of owning and operating a water utility such as operations,pumping, treatment, storage, capital improvements and depreciation. For municipal customers, it takes into account only the costs in providing the product used. For instance, Columbia Heights does not pay anything for transmission lines to deliver the water,where the other customers do. Changes proposed in Contract Amendment No. 2 are identified as follows: 1. Rate Calculation 2. Water Supply 3. Frequency of Cost of Service Study 1. Rate Calculation: The current contract details that Columbia Heights will pay an"inside rate" or percentage of what Minneapolis customers pay. The percentage is determined by the COS, and may change with future COS updates. Our current inside rate is 57.78% of Minneapolis customer rates. In 2012, Minneapolis added a fixed charge to all customers. The existing contract did not have language to accommodate fixed plus consumption rates. Amendment No. 2 proposes to add language that defines the inside rate to be based on a residential customer, which includes the fixed charge. This results in a proposed rate increase for 2014 to Columbia Heights of 2.81%. Furthermore,based on the COS, Columbia Heights annual rate increases for the next three years are anticipated to be in the 2.9% - 3.1%range. Final rates may vary slightly depending on the customer rates Minneapolis sets through its annual budgeting process. 2. Water Supply: A paragraph is proposed to be added that details Minneapolis' intent to drill groundwater wells. The primary intent of the groundwater wells would be for an emergency backup source to the surface supply. The other primary reason is that groundwater wells may also be used for short-term interruptions or for water quality controls. 46 CITY COUNCIL LETTER Meeting of: November 12,2O 13 AGENDA SECTION: CONSENT ORIGINATING DEPARTMENT: CITY MANAGER PUBLIC WORKS ITEM: ADOPT RESOLUTION 2013-100 BY: Kevin Hansen BY: APPROVING AMENDMENT NO. 2 TO WATER DATE: 11/06/13 DATE: AGREEMENT WITH THE CITY OF MINNEAPOLIS Page 2 3. Frequency of the Cost of Service Study: The current contract calls for updating the COS every five years. Amendment 2 proposes to update the COS every three years. Furthermore, rather than use a single year as the base year for calculating volumes, the amendment proposes to average the past three years. This provides a benefit to the cities in the COS of leveling consumption volumes due to unusually dry or wet years. Staff recommends approval of Water Contract Amendment No. 2. Recommended Motion: Move to waive the reading of Resolution 2013-100, there being ample copies available to the public. Recommended Motion: Move to adopt Resolution 2013-100, being a resolution approving Amendment Number 2 to the Water Agreement between the cities of Minneapolis and Columbia Heights and authorizing the Mayor and City Manager to execute amended agreement. Attachments: Resolution 2013-100 MWW letter dated October 1, 2013 Amendment Number 2 to Water Agreement COUNCIL ACTION: 47 RESOLUTION 2013-100 RESOLUTION APPROVING AMENDMENT NUMBER 2 OF WATER AGREEMENT BETWEEN THE CITIES OF MINNEAPOLIS AND COLUMBIA HEIGHTS WHEREAS, the City of Minneapolis operates a municipal water system known as the Minneapolis Public Works—Division of Water Treatment and Distribution Services; and WHEREAS, on June 1, 2004 the City of Minneapolis and the City of Columbia Heights entered into an Agreement entitled"Minneapolis—City of Columbia Heights Water Agreement" for the City of Minneapolis to supply water to the City of Columbia Heights; and WHEREAS, the City of Minneapolis and the City of Columbia Heights deem it appropriate to make amendments to Section 2 and Section 10 of that agreement defining rate calculation, water supply and cost of service study; and WHEREAS, the City Council has determined that approving the amended agreement is reasonable,prudent, and in the best interest of the public; NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota as follows: Amendment Number 2 to the Water Agreement is approved and the Mayor and City Manager are authorized and directed to execute the amended agreement. Passed this 12`h day of November, 2013 Offered by: CITY OF COLUMBIA HEIGHTS Seconded by: Roll Call: By Mayor Gary L. Peterson Tori Leonhardt City Clerk/Council Secretary 48 Minneapolis City of Lakes October 1,2013 Department of Public Works Kevin Hansen Steven A Kotl e,RE. Public Works Director,City Engineer City Engineer ; . director City of Columbia Heights ti 350 South 5th Street-Roon203 637 38th Avenue NE Minneapolis MN 55415 Columbia Heights,MN 55421 Office 612 673-3000 Fax 612 673.3565 RE: Amendment Documents per Cost of Service Study M 612 673-2157 Dear Mr. Hansen: These prepared amendments have been out for review and discussion for a while and I have made some wording changes per comments from some customers. Basically all 5 major customers(MAC, Edina,JWC,Hilltop and Columbia heights)have somewhat similar language but dependent on each particular situation. Enclosed is a set of 4 amendments ready for processing and signatures. After your signatures, I will process it through Minneapolis and return a fully signed copy to you. If there are any questions,please call me at 612-673-2418. Sincerely, d6'c'" <t Bernie R.Bullert Director Water Treatment&Distribution Services City on and Servkx cohgsamendmentletterl00113.docx wm-cininneapolis.mn.us Affirmative Action Employer 49 AMENDMENT NO.2 MINNEAPOLIS-CITY OF COLUMBIA HEIGHTS WATER AGREEMENT-2004 AMENDMENT TO CONTRACT NO. C-20603 This agreement is made and entered into as of the day of , 2013, by and between the City of Minneapolis,a Minnesota home rule charter city in Hennepin County, Minnesota, and the City of Columbia Heights, hereinafter referred to as"City of Columbia Heights". WITNESSETH: RECITALS WHEREAS,the City ofMinneapolis operates amunicipal water system known as the Minneapolis Water Works ("MWW"); and, WHEREAS,the City of Minneapolis and the City of Columbia Heights have previously entered into an Agreement for the City to supply water to the City of Columbia Heights to be effective as of the 1 st day of June 2004 entitled "Minneapolis- City of Columbia Heights Water Agreement;" and, maintained by the Minneapolis Finance Department as Agreement"C-20603;"and, WHEREAS,The City and Columbia Heights have previously entered into an Amendment#1 as of the 21"day of March 2013,(Contract Management 4C-20603);and, WHEREAS,the City and the City of Columbia Heights deem it to be appropriate to make amendments to that Agreement as specified herein. NOW THEREFORE,it is mutually agreed as follows: I. That in Section 10,Paragraph D,a second paragraph be added as follows: The published price charged to residential customers living within the Minneapolis city limits is expressed as a fined charge plus a volume charge expressed on a dollars per hundred cubic feet (HCF) metered consumption basis. The published price may involve a rate structure involving more than a single rate per HCF, based upon season, volume of water consumed or any other variable factor that is reasonable. The City of Columbia Heights rate will be based on the percentage of the Minneapolis Inside Residential Rate as determined by the "Cost of Service Methodology"as described in this section. For years between the years when wholesale costs of service studies are prepared, each intervening-year rate change shall be based on the monthly cost change to a Minneapolis residential customer when the City adopts retail rates in its annual budget process. This cost shall be calculated by the percent (%) change year over year for an inside-city residential customer using a 5/8" meter and 7 billing units of water in a month. Therefore, the monthly cost for a residential customer is the sum of the monthly fixed cost for a 5/8" meter and the cost for 7 units of water per month. These rate increases will be based on rounding to the nearest one-hundredth of a per cent. The new rate to the City of Columbia Heights will be rounded to the nearest cent. 50 CI. That in section 2"Supply of water"paragraph C be added as follows: (a) The parties understand that Minneapolis is planning to drill groundwater wells so that it will have the ability to augment or replace all or a portion of its surface water supply with the water from these groundwater wells. The parties understand that in the future the City of Minneapolis may be using groundwater for one of two purposes: (i) Provide temperature control, hardness control,or supply water to remedy very short-term interruptions that could occur in the supply from the river. In these types of instances the groundwater would be used seamlessly to provide a continuous supply of softened drinking water to all customers, including customers of the City of Columbia Heights.This could occur when the groundwater supply reaches a fourth of its ultimate design capacity. (ii) Provide a backup supply of water(emergency source)to supplement or substitute for Minneapolis'own surface water supply. This will occur when the groundwater supply reaches full design capacity. (b) The parties understand that Minneapolis intends to keep its operating expenses, depreciation,and return on capital separate related to water supplied through its surface water supply and to water supplied through its groundwater supply as outlined above in subparagraph (a) (i)and in subparagraph(a)(ii). (c) In the event that Minneapolis should begin using groundwater as described in subparagraph (a) (i)to substitute for surface water on an occasional basis for distribution to customers inside and outside of Minneapolis that are part of the Minneapolis system,then Minneapolis and the City of Columbia Heights shall in good faith negotiate the parameters of a new cost of service model based on the prior methodology.These changes in the cost of service study caused by a planned use of groundwater by Minneapolis shall be effective for the three-year study period following Minneapolis' implementation of groundwater as a source of supply pursuant to subparagraph (a)(i).The new cost of service model shall allow Minneapolis to include costs related to its production of surface water including groundwater used as specified in subparagraph(a) (i). (d) The new cost of service model will include the costs of Minneapolis groundwater being constructed and maintained for use as a backup source of supply pursuant to subparagraph(a) (ii)from the cost model used to determine the City of Columbia Heights rates. These changes in the cost of service study caused by the planned use of groundwater by Minneapolis as a backup source of supply shall be effective for the three-year study period following Minneapolis'full or partial implementation of groundwater as a backup source of supply pursuant to subparagraph (a)(ii). 51 III. That in Section 10, paragraph D, be amended by deleting the 2nd paragraph and replacing it with the following two paragraphs: A cost of service study was completed in 2012 and shall be completed every three (3) years thereafter. The last basis year used was 2012. For the remainder of the contract, the cost of service basis years will be 2015,affecting rates starting in 2017; in 2018,affecting rates starting in 2020;and so on until the end of the contract. For future cost of service studies, the volume used for the base year cost of service calculations shall be an average of the three years, these three years being the base year and two immediately preceding prior years. For example, the 2015 cost year will be studied in 2016 and the volumes used shall be the average volumes for 2013,2014,and 2015. 52 IN WUNESS WHEREOF,the parties hereto have caused this Agreement to be executed the day and year first above written. Wrl'NESSETH: CITY OF NEWNEAPOLLS CITY OF COLUMBIA HEIGHTS 3e,^n ;e >Q. 12 u.1)t4-� By: Printed Name of Department Head Mayor Signature of Department Head By: City Manager Approved as to Form: City Attorney/Assistant City Attorney Printed Name of Finance Officer/Designee Signature of Finance Officer/Designee Date 100113amendment2colhgU.docx 53 CITY COUNCIL LETTER Meeting o£ November 12, 2013 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS / ITEM: FINAL PAYMENT FOR ARGONNE BY: K. Hansen BY: LIFT STATION IMPROVEMENTS, PROJECT DATE: 11/7/13 DATE: 1114 Background: The contractor has completed the Argonne Lift Station Improvement project. This work consisted of rehabilitating the existing pump structure, replacing the pumps and controls, replacing the SCADA controls, installing a permanent generator, and site restoration. Analysis/Conclusions: Staff recommends final payment to the contractor as work has been completed in accordance with the contract documents and the one-year warranty period has been completed. The final payment is $7,500 under the original contract. Recommended Motion: Move to accept the work for Argonne Lift Station Improvements, City Project No. 1114, and to authorize final payment of$14,543.50 to Penn Contracting, Inc. of Blaine, Minnesota. Attachment: Engineer's Report of Final Acceptance Bolton-Menk Recommendation Letter COUNCIL ACTION: 54 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY,MINNESOTA ENGINEER'S REPORT OF FINAL ACCEPTANCE ARGONNE LIFT STATION IMPROVEMENTS CITY PROJECT NUMBER 1114 November 7, 2013 TO THE CITY COUNCIL COLUMBIA HEIGHTS,MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to Penn Contracting, Inc. The work consisted of rehabilitating the existing structure,replacing the pumps and controls, and installing a permanent generator. The contractor has substantially completed the project in accordance with the contract. It is recommended; herewith, that final payment be made for said improvements to the contractor in the amount as follows: ORIGINAL CONTRACT PRICE $284,690.00 CHANGE ORDERS $ 0.00 FINAL CONTRACT AMOUNT $284,690.00 FINAL WORK APPROVED $277,190.00 ALL PRIOR PAYMENTS ($262,646.50) BALANCE DUE $ 14,543.50 Sincerely, CITY OF COLUMBIA HEIGHTS Kevin R. Hansen City Engineer 55 BOI-TON M F=N K , I I\IC. Consulting Engineers & Surveyors �� +l 1222A Nicollet Avenue • Burnsville, MN 55337 t — Phone (952) 890-0509 • Fax(952) 890-8065 www.bolton-menk.com November 4,2013 Kevin Hansen,P.E. Public Works Director/City Engineer City of Columbia Heights 637 38th Avenue N.E. Columbia Heights, MN 55421 RE: Argonne Lift Station Improvements City of Columbia Heights,MN BMI Project No.: M21.104158 Dear Kevin, Enclosed are three copies of Pay Request No. 5 from Penn Contracting,Inc. for the work completed on the above-referenced project. This is the final pay request for this project. The necessary close out documents from Penn Contracting are enclosed. We have reviewed this estimate and recommend payment to Penn Contracting, Inc. in the amount of$14,543.50. The original as bid price for this project was $284,690.00. The final construction project total was$277,190.00 which is a savings of$7,500. Please send an approved copy of the pay request to Penn Contracting, Inc. and return one copy to me. Respectfully submitted, BOLTON &MENK, INC. Seth A. Peterson, P.E. Project Manager Cc: Kevin Kielb,Bolton &Menk,Inc. Enc. G:\COLH\M21104158\1_Corres\hansen pay app 5 final.doc DESIGNING FOR t AETTER TOMORROW Bolton&Menk is an equal opportunity employer. CITY COUNCIL LETTER Meeting of. November 12, 2013 AGENDA SECTION: CONSENT AGENDA ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS ITEM: FINAL PAYMENT FOR MSC BY: K. Hansen BY: FLOOR CAPACITY UPGRADE, PROJECT DATE: 11/7/13 DATE: 1310 Background: The contractor has completed the MSC Floor Capacity Upgrade project. This work consisted of strengthening 3,925 s.f. of concrete flooring by steel beaming. Analysis/Conclusions: Staff recommends final payment to the contractor, as work has been completed in accordance with the contract documents and all punchlist items have been completed. A one year warranty is in effect for the proj ect. Recommended Motion: Move to accept the work for the MSC Floor Capacity Upgrade, City Project No. 1310, and to authorize final payment of$4,867.52 to J.S. Cates Construction, Inc. of Hamel, Minnesota. Attachment: Engineer's Report of Final Acceptance COUNCIL ACTION: 57 CITY OF COLUMBIA HEIGHTS ANOKA COUNTY,MINNESOTA ENGINEER'S REPORT OF FINAL ACCEPTANCE MSC FLOOR CAPACITY UPGRADE CITY PROJECT NUMBER 1310 January 23, 2013 TO THE CITY COUNCIL COLUMBIA HEIGHTS,MINNESOTA HONORABLE MAYOR AND CITY COUNCIL MEMBERS: This is to advise you that I have reviewed the work under contract to J.S. Cates Construction, Inc. The work consisted of strengthening approximately 3,925 s.f. of floor on the main level to allow heavy equipment to drive into the service bays. The contractor has substantially completed the project in accordance with the contract. It is recommended; herewith, that final payment be made for said improvements to the contractor in the amount as follows: ORIGINAL CONTRACT PRICE $101,000.00 CHANGE ORDERS $ 0.00 FINAL CONTRACT AMOUNT $101,000.00 FINAL WORK APPROVED $ 97,350.00 ALL PRIOR PAYMENTS ($ 92,482.48) BALANCE DUE $ 4,867.52 Sincerely, CITY OF COLUMBIA HEIGHTS Kevin R. Hansen City Engineer 58 CITY COUNCIL LETTER Meeting o£November 12,2013 AGENDA SECTION: BID CONSIDERATIONS ORIGINATING DEPARTMENT: CITY MANAGER NO: PUBLIC WORKS ITEM: AWARD SANITARY SEWER MAIN BY: Kevin Hansen BY ij/ AND STORM CATCH BASIN DATE: 11/7/2013 DATE: REPLACEMENT/REPAIR PROJECT Background: On September 9d', 2013 the City Council authorized staff to seek bids for the 2013 Miscellaneous Sewer Repair Project, including sewer lines and structures. Bidding documents were prepared and three contractors submitted bids to do this work. A bid summary is shown below: Minger Construction, Inc. $48,700.00 Metro Utilities, Inc. $49,680.00 Interstate Companies $53,500.00 Analysis/Conclusions: Approximately 43 LF of sanitary sewer pipe replacement is being done on Jefferson Street, north of 40d' Avenue. The pipe is broken, separated and settled, and must be replaced prior to lining. Catch basin replacements are also included at the following locations: 2 catch basin replacements on the south side 53rd Avenue, near the park trail entrance: The catch basins are constructed with concrete block and the block has failed. The street surface is being undermined at one location. 1 catch basin repair on Main Street at 39'"Avenue 1 catch basin repair in the alley between Polk Street and Buchanan Street, south of 39th Avenue Staff recommends acceptance of the bid from Minger Construction, Inc. from Chanhassen, MN. The work will be funded in the Public Works Department budgets for sanitary and storm. Recommended Motion: Move to accept quotes and award the Sanitary Sewer Main and Storm Sewer Catch Basin Replacement/Repair project to Minger Construction from Chanhassen, MN in the amount of $48,700, from City Utility Funds 602 (Sanitary) and 604 (Storm); and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. COUNCIL ACTION: 59 CITY COUNCIL LETTER Meeting of: November 12, 2013 AGENDA SECTION: Consent ORIGINATING DEPT.: CITY MANAGER NO: License Department APPROVAL ITEM: License Agenda BY: Shelley Hanson DATE: NO: DATE: November 6, 2013 BY: BACKGROUND/ANALYSIS Attached is the business license agenda for the November 12, 2013 Council meeting. This agenda consists of applications for contractor licenses for 2013 and 2014, and business licenses for 2014. At the top of the license agenda you will notice a phrase stating *Signed Waiver Form Accompanied Application. This means that the data privacy form has been submitted as required. If not submitted, certain information cannot be released to the public. RECOMMENDED MOTION: Move to approve the items as listed on the business license agenda for November 12, 2013 as presented. COUNCIL ACTION: 60 TO CITY COUNCIL November 12, 2013 *Signed Waiver Form Accompanied Application CONTRACTOR'S LICENSES-2013 BLDG *Valley-Rich Co 147 Jonathan Blvd, Chaska $ 60 CONTRACTOR'S LICENSES-2014 BLDG *Home Energy Center 2415 Annapolis LN, Plymouth $ 60 *Plumbing Czars 12000 P St, Blaine $ 60 TLC Plumbing LLC 14780 Hallmark Dr, Apple Valley $ 60 *Roberts Plumbing 565 So. Oak Dr, Vadnais Hts $ 60 *Arbor Barber PO Box 22222, Robbinsdale $60 *Avid Heating 7700 County Rd 110 W, Minnetrista $60 *Corporate Mechanical 5114 Hillsboro Ave,New Hope $60 FUEL DISPENSING DEVICE FIRE No Tier/SA Gas 5000 Central Ave University Auto 5257 University Ave $ 80 CIGARETTE SALES POLICE Family Dollar 4037 Central Ave $300 Hot Market 5011 University Ave $300 Jeff's Bobby & Steve's 3701 Central Ave $300 Rainbow Foods 4300 Central Ave $300 Superette Foods LLC 4635 Central Ave $300 Jerusalem Mkt 4945 Central Ave $300 SMOKE SHOP POLICE Sarah's Tobacco 4329 Central Ave $300 Hookah Kingdom 4919 Central Ave $300 Fouad's 4110 Central Ave $300 Top Value Tobacco 2311 37th Ave $300 GAMES OF SKILL POLICE American Amusements for Jeff's Bobby& Steve's 3701 Central Ave $ 60 Mendota Valley Amusements for VFW and Jimmy's Pool Hall $195 MOTOR VEHICLE RENTAL ZONING Col. Hts Rental 3901 Central Ave $ 50 MOTOR VEHICLE SALES POL David's Auto 573 40"'Ave $300 61 OFF SALE BEER POL.F,B, Z Rainbow Foods 4300 Central Ave $150 Jeff's Bobby& Steves 3701 Central Ave $150 CLUB LIQUOR POL, F,B,Z VFW Post#230 4446 Central Ave $700 Col. Hts. Lions Club Murzyn Hall $500 LIQUOR-2013-2014 POL,F,B,Z Jalapeno Mexican Restaurant&Cantina 3800 Central Ave $7,150 Sarna's Bar& Grill 3939 University Ave $6,700 TEMP LIQUOR POL Immaculate Conception Church 4030 Jackson St $100/day For their 2014 events WINE/BEER POL, F,B,Z Royal Orchid 4022 Central Ave $1,600 62 CITY OF COLUMBIA HEIGHTS FINANCE DEPARTMENT COUNCIL MEETING OF: November 12, 2013 . STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS Motion: Move that in accordance with Minnesota Statute 412.271, subd. 8 the City Council has received the list of claims paid covering check number 149987 through 150176 in the amount of$ 791,791.78. 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