HomeMy WebLinkAbout10/28/2013 Regular Meeting 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, 590 40TH 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 Dougherty 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.
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
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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 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.REMOVED
D. Adopt Resolution 2013-99, being a resolution approving 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 Payment 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 deliver
providing for their payment.
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
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Monday,October 28,2013
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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 approving post-issuance compliance
procedure and policy for tax-exempt governmental bonds.
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
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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.,
being Resolutions of the City Council of the City of Columbia Heights approving rental license
revocation for failure to meet the requirements of the Property Maintenance Codes.
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 5,' 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 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.
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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 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
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Monday,October 28,2013
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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
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 5th 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 40th 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 Central Avenue.
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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 40th and Central? Fehst stated that they
are at a standstill and we cannot comment more than that at this time. Diehrn 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 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
+ d
Tori Leon \dt, City Cler w,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
City Council Meeting Minutes
Monday,October 28,2013
Page 8 of 25
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.
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:
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Monday,October 28,2013
Page 9 of 25
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 Improvement 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 storm 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 detennined 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 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. Terms 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
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Monday,October 28,2013
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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
(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
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Monday,October 28,2013
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(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 detennine 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) Register. The Registrar must keep at its principal corporate trust office a bond register in
which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered,transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered
owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed
by the registered owner thereof or by an attorney duly authorized by the registered owner in writing,the Registrar will
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as requested by the transferor. The Registrar may,however, close the books
for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that
interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the
Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as
requested by the registered owner or the owner's attorney in writing.
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(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 name a
Bond is registered in the bond register as the absolute owner of the Bond,whether the Bond is overdue or not, for the
purpose of receiving payment of, or on account of,the principal of and interest on the Bond and for all other purposes,
and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and
discharge the liability upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a
transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed,
stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for 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.
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by
first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the
registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by
publication or by mail to any registered owner,or any defect therein, will not affect the validity of the proceedings for
the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption
date,provided that the funds for the redemption are on deposit with the place of payment at that time.
2.04. 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
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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 form 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.
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 hmprovements 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 Storm 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
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and Utility Revenue Refunding Bonds, and the Finance Director must report any current or anticipated deficiency in
the Utility Improveinents 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 Improveinents
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 Improveinents and
special assessments collected during the construction of the Assessable Improveinents, will be deposited in the
Assessable Improveinents 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 Improvements are completed and the cost thereof paid, the Assessable Improveinents 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 Improveinents. 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 Improveinents 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
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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, 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 stonn 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.
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(f) The City and each and all of its officers will punctually perform all duties A ith 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 tunes and in the amounts required to produce Net Revenues adequate to 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 th6 extent necessary to give full effect to the provisions
hereof.
4.08. General Obliization Pledge. 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 determined 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 maturities of the Refunded Bonds, is consistent with
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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 terms 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 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.
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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 ystem;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 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
name of Cede & Co., as nominee of DTC, the City,the Registrar and the Paying Agent will have no responsibility or
obligation to any broker dealers,banks and other financial institutions from time to time for which DTC holds Bonds
as securities depository(the"Participants") or to any other person on behalf of which a Participant holds an interest in
the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records
of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any
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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 name each Bond is registered in the registration books kept by the Registrar as the holder and
absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such
Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The 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 detennined
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,
detennines 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 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
terns thereof.
9.02. City ompliance with Provisions of Continuinjz Disclosure Certificate. The City hereby covenants and agrees
that it will comply with and cant'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.
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Sectionl0. 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, Diehin, 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
CITY OF COLUMBIA HEIGHTS,MINNESOTA
RESOLUTION NO. 2013-99
RESOLUTION APPROVING POST-ISSUANCE COMPLIANCE
PROCEDURE AND POLICY FOR TAX-EXEMPT GOVERNMENTAL BONDS
BE IT RESOLVED By the City Council(the"Council")of the City of Columbia Heights,Minnesota(the"City")
as follows:
Section 1. Recitals.
1.01. The City from time to time issues tax-exempt governmental bonds to finance various public projects.
1.02. Under Sections 103 and 140 to 150 of the Internal Revenue Code of 1986,as amended(the"Code") and
related regulations, the City is required to take certain actions after the issuance of such bonds to ensure that interest on
those bonds remains tax-exempt.
1.03. The City has determined to adopt written procedures regarding how the City will carry out its bond
compliance responsibilities, and to that end has caused to be prepared a document titled Post-Issuance Compliance
Procedure and Policy for Tax-Exempt Governmental Bonds(the"Policy").
1.04. The Council has reviewed the Policy has determined that it is in the best interest of the City to adopt the
Policy.
Section 2. Policy Ap roved.
2.01. The Council approves the Policy in substantially the form on file in City Hall.
2.02. City staff are authorized to take all actions necessary to carry out the Policy.
Approved by the City Council of the City of Columbia Heights,Minnesota,this 28th day of October,2013.
City Council Meeting Minutes
Monday,October 28,2013
Page 21 of 25
Mayor
ATTEST:
City Clerk/Council Secretary
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:
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
City Council Meeting Minutes
Monday,October 28,2013
Page 22 of 25
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").
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.
City Council Meeting Minutes
Monday,October 28,2013
Page 23 of 25
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.
Passed this 28th 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
City Council Meeting Minutes
Monday,October 28,2013
Page 24 of 25
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.
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 28th 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.
City Council Meeting Minutes
Monday,October 28,2013
Page 25 of 25
Now, therefore, in accordance with the foregoing, and all ordinances and regulations of the City of
Columbia Heights, the City Council of the City of Columbia Heights makes the following:
FINDINGS OF FACT
1. That on 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;
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 28th day of October 2013