HomeMy WebLinkAboutJuly 24CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
AGENDA
July 24, 2013
A. CALL TO ORDER:
B. ROLL CALL: LINDSTROM ____ HARRIS ____ GOSLINE ____
LONG ____ MERCER-TAYLOR ____
FISCHER ____
C. PRESENTATIONS:
D. APPROVAL OF MINUTES: July 10, 2013
E. PUBLIC HEARINGS:
F. CONSENT AGENDA:
1. General Disbursements through 7/18/2013: $
436,910.84
Payroll through 7/12/2013: $20,832.53
2. Approval of City Licenses
3. Declaration of Bond Reimbursement
4. Acceptance of University of Minnesota Grant Award
5. Acceptance of Scholarship Funds from Commonwealth Terrace Cooperative (CTC)
G: POLICY ITEMS:
1. Massage License Application
2. Chicken Ordinance
3. Acceptance of Bond Bid for the 2013 Street Improvement Project (Addendum)
H. INFORMATION/ANNOUNCEMENTS:
I. COMMUNITY FORUM:
J. ADJOURNMENT:
CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
2077 West Larpenteur Avenue
MINUTES
July 10, 2013
A. CALL TO ORDER: 7:00PM
B. ROLL CALL: LINDSTROM __AB__ HARRIS __X__ GOSLINE __X__
LONG __X__ MERCER-TAYLOR __AB__
FISCHER __X__
C. PRESENTATIONS:
1.
D. APPROVAL OF MINUTES: June 26, 2013 APPROVED
E. PUBLIC HEARINGS:
1. Hiawatha Conduit Bond Financing Pam Harris Moved, Approval 3-0
-City Administrator Bart Fischer presented the staff report
-Public hearing was opened at 7:04PM
-Bryan Olson (1592 Roselawn Avenue) expressed opposition to the conduit bond
financing mechanism in general
-Chris Reedy (2160 Folwell Avenue) spoke in support of the proposal
-Public hearing was closed at 7:06PM
F. CONSENT AGENDA: Pam Harris Moved, Approval 3-0
1. General Disbursements through 7/3/2013: $
185,142.51
Payroll through 6/30/2013: $20,751.07
2. 2013 Street Project Payment #2
3. Park Dedication Fee for Urban Farm/CommonBond Redevelopment
G: POLICY ITEMS:
H. INFORMATION/ANNOUNCEMENTS:
Council Member Chuck Long
-Announced the upcoming Ice Cream Social, which will take place Thursday, July 25th
from 6-8PM at Community Park
-Human Rights Commission will be hosting a dialogue with One Voice Minnesota on
Monday, August 19th
from 7-9PM at City Hall
City Administrator Bart Fischer
-Announced that tree debris removal from the recent storm is done
-Bryan Olson (1592 Roselawn Avenue) commented that better communication is needed
in the future regarding what tree debris would be picked up-boulevard tree debris vs.
private tree debris
I. COMMUNITY FORUM:
-Bryan Olson (1592 Roselawn Avenue) brought forth concerns about a lack of content in
the City Council meeting minutes and also expressed concerns with including materials
provided at meetings in Council and Planning Commission Packets. He also expressed
concerns about the City Hall summer hours as well as a concern with the City
Administrator attending Rotary Club lunch meetings.
J. ADJOURNMENT: 7:20PM
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item General Disbursements and Payroll
Description
General Disbursements through 7/18/2013: $436,910.84
Payroll through 7/12/2013: $20,832.53
Please note that the general disbursement total includes a previously approved $301,195.21
payment to T.A. Schifsky & Sons, Inc. for a portion of the Pavement Improvement Project.
Budget Impact
Attachment(s) General Disbursements and Payroll
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve general
disbursements and payroll.
Meeting Date July 24, 2013
Agenda Item Consent F1
Attachment General Disbursements and Payroll
Submitted By Roland Olson, Finance Director
Families, Fields and Fair
__________________________
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Approval of City Licenses
Description
The following individuals have applied for a Mechanical License for 2013. Staff
has received the necessary documents for licensure.
1. Hoffman Corner Heating & Air Conditioning
Budget Impact N/A
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve the 2013 City
License Applications.
Meeting Date July 24, 2013
Agenda Item Consent F2
Attachment N/A
Submitted By Michelle Tesser, Assistant to the City
Administrator
Families, Fields and Fair
__________________________
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Declaration of Bond Reimbursement
Description
It was brought to Staff’s attention by the City’s Financial Consultants Ehlers, that
the City Council should pass a resolution dealing with reimbursement of expenses
from bond proceeds.
The IRS has issued Treasury Regulations that require the City to have a Declaration
of Bond Reimbursement Resolution in place for the reimbursement of costs already
paid out for a project before the bonds are sold and proceeds received by the City.
There are a number of “exceptions” to this regulation including expending State
Aid Funds, etc. but it is still recommended that this resolution be passed so that
there is not confusion as to what funds were used to pay for project costs to this
point. The passing of this resolution will provide the City with the flexibility to
reimburse any funds used to pay for project costs with bond funds.
The City’s Financial Consultant, Bond Counsel and Staff recommend adoption of
the Declaration of Bond Reimbursement Resolution
Budget Impact Ability to reimburse already incurred 2013 Street Improvement Project costs with
bond proceeds.
Attachment(s) Draft Resolution No. 13-18
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve Resolution No. 13-
18, establishing procedures relating to compliance with reimbursement bond
regulations under the Internal Revenue Code.
Meeting Date July 24, 2013
Agenda Item Consent F3
Attachment Draft Resolution No. 13-18
Submitted By Bart Fischer, City Administrator
Families, Fields and Fair
__________________________
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
July 24, 2013
No. 13-18
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RESOLUTION ESTABLISHING PROCEDURES
RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council (the "Council") of the City of Falcon Heights,
Minnesota (the "City"), as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Treasury Regulations, Section
1.150-2 (as the same may be amended or supplemented, the "Regulations"), dealing with
"reimbursement bond" proceeds, being proceeds of the City's bonds used to reimburse the
City for any project expenditure paid by the City prior to the time of the issuance of those
bonds.
(b) The Regulations generally require that the City make a declaration of
intent to reimburse itself for such prior expenditures out of the proceeds of subsequently
issued bonds, that such declaration be made not later than 60 days after the expenditure is
actually paid, and that the bonding occur and the written reimbursement allocation be
made from the proceeds of such bonds within 18 months after the later of (1) the date of
payment of the expenditure or (2) the date the project is placed in service (but in no event
more than 3 years after actual payment).
(c) The City heretofore implemented procedures for compliance with the
predecessor versions of the Regulations and desires to amend and supplement those
procedures to ensure compliance with the Regulations.
(d) The City's bond counsel has advised the City that the Regulations do not
apply, and hence the provisions of this Resolution are intended to have no application to
payments of City project costs first made by the City out of the proceeds of bonds issued
prior to the date of such payments.
2. Official Intent Declaration. The Regulations, in the situations in which they
apply, require the City to have declared an official intent (the "Declaration") to reimburse itself
for previously paid project expenditures out of the proceeds of subsequently issued bonds. The
Council hereby authorizes the City Clerk to make the City's Declarations or to delegate from
A-1
time to time that responsibility to other appropriate City employees. Each Declaration shall
comply with the requirements of the Regulations, including without limitation the following:
(a) Each Declaration shall be made not later than 60 days after payment of the
applicable project cost and shall state that the City reasonably expects to reimburse itself
for the expenditure out of the proceeds of a bond issue or similar borrowing. Each
Declaration may be made substantially in the form of the Exhibit A which is attached to
and made a part of this Resolution, or in any other format which may at the time comply
with the Regulations.
(b) Each Declaration shall (1) contain a reasonably accurate description of the
"project," as defined in the Regulations (which may include the property or program to be
financed, as applicable), to which the expenditure relates and (2) state the maximum
principal amount of bonding expected to be issued for that project.
(c) Care shall be taken so that the City, or its authorized representatives under
this Resolution, not make Declarations in cases where the City does not reasonably
expect to issue reimbursement bonds to finance the subject project costs, and the City
officials are hereby authorized to consult with bond counsel to the City concerning the
requirements of the Regulations and their application in particular circumstances.
(d) The Council shall be advised from time to time on the desirability and
timing of the issuance of reimbursement bonds relating to project expenditures for which
the City has made Declarations.
3. Reimbursement Allocations. The designated City officials shall also be
responsible for making the "reimbursement allocations" described in the Regulations, being
generally written allocations that evidence the City's use of the applicable bond proceeds to
reimburse the original expenditures.
4. Effect. This Resolution shall amend and supplement all prior resolutions and/or
procedures adopted by the City for compliance with the Regulations (or their predecessor
versions), and, henceforth, in the event of any inconsistency, the provisions of this Resolution
shall apply and govern.
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Moved by: Approved by: ________________________
Peter Lindstrom
Mayor
July 24, 2013
LINDSTROM ____ In Favor Attested by: ________________________
GOSLINE Bart Fischer
HARRIS ____ Against City Administrator
LONG July 24, 2013
MERCER-TAYLOR
EXHIBIT A
Declaration of Official Intent
The undersigned, being the duly appointed and acting City Clerk of the City of Falcon
Heights, Minnesota (the "City"), pursuant to and for purposes of compliance with Treasury
Regulations, Section 1.150-2 (the "Regulations"), under the Internal Revenue Code of 1986, as
amended, hereby states and certifies on behalf of the City as follows:
1. The undersigned has been and is on the date hereof duly authorized by the City
Council to make and execute this Declaration of Official Intent (the "Declaration") for and on
behalf of the City.
2. This Declaration relates to the following project, property or program (the
"Project") and the costs thereof to be financed:
3. The City reasonably expects to reimburse itself for the payment of certain costs of
the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds") to be issued by
the City after the date of payment of such costs. As of the date hereof, the City reasonably
expects that $_____________ is the maximum principal amount of the Bonds which will be
issued to finance the Project.
4. Each expenditure to be reimbursed from the Bonds is or will be a capital
expenditure or a cost of issuance, or any of the other types of expenditures described in Section
1.150-2(d)(3) of the Regulations.
5. As of the date hereof, the statements and expectations contained in this
Declaration are believed to be reasonable and accurate.
Date: , 20__
City Clerk
City of ___________________, Minnesota
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Acceptance of U of M Good Neighbor Grant Award
Description
In February Staff member, Michelle Tesser submitted three grant applications to the
U of M Good Neighbors grant. The City was rewarded two of the grants: Spring
Together Event in the amount of $1,200 and Cleveland Avenue Beautification
Project in the amount of $9,000. Staff received $4,200 which represents the total
payment of the Spring Together grant and 1/3 payment of the Cleveland Avenue
Beautification Project. The Cleveland Avenue median trees which were pulled this
year because of disease will be replaced with Princeton American Elm. The project
should be completed in October of 2013. The final $6,000 grant award will be sent
after completion as per the Good Neighbor Grant procedures.
Budget Impact None
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council accept the $4,200.00 grant
award.
Meeting Date July 24, 2013
Agenda Item Consent F4
Attachment N/A
Submitted By Michelle Tesser, Assistant to the City
Administrator
Families, Fields and Fair
__________________________
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Acceptance of Scholarship Funds from Commonwealth Terrace Cooperative (CTC)
Description
For the last two years, the Parks and Recreation Department has focused on
expanding recreation programming at Commonwealth Terrace Cooperative (CTC)
located in Falcon Heights. This year we have increased programming to offer
Tennis, Pee Wee Sampler and Summer Discovery Playground. We continue to offer
Soccer. As part of our joint efforts the CTC Board of Directors approved scholarship
funding for their residents since CTC residents comprise mostly of student family
housing. The City received $300.00 earlier this year. Staff member Michelle Tesser
sent CTC Activities Coordinator, Janet Risinger the full scholarship amount
awarded to CTC children which was an additional $650.00. The check of $650.00
was received in June. Scholarships offer 50% off of the Falcon Heights’ recreation
program fee.
Budget Impact None
Attachment(s) N/A
Action(s)
Requested
Staff recommends that the Falcon Heights City Council accept the $650.00 donation
to the scholarship fund from CTC.
Meeting Date July 24, 2013
Agenda Item Consent F5
Attachment N/A
Submitted By Michelle Tesser, Assistant to the City
Administrator
Families, Fields and Fair
__________________________
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Therapeutic Massage License Application
Description
Staff recently received a Therapeutic Massage License Application. Per our City
Code, staff is required to obtain a criminal background check on all applicants who
apply for a massage license as well as a criminal background check performed
annually. The applicant’s background check was completed by St. Anthony Police
Department on July 10, 2013. The result of the applicant’s background check is a
concern to staff. Per City Attorney Roger Knutson, the background check is
available to Council and may be discussed during the Council meeting but is not
public information so will not be in the agenda packet or minutes. The arrest data is
removed per the City Attorney.
According to the City Attorney, City Council has two options on how to proceed
with the massage license application after discussing it. Council can approve the
application or if Council is not willing to approve the application, they can direct
staff to bring findings of fact for denial of the application at the next City Council
meeting.
Budget Impact N/A
Attachment(s) Massage License Application
Action(s)
Requested
Staff asks that the Council review the application and background check and
provide staff with direction on how to proceed forward.
Meeting Date July 24, 2013
Agenda Item Policy G1
Attachment Massage License Application
Submitted By Michelle Tesser, Assistant to the City
Administrator
Families, Fields and Fair
__________________________
REQUEST FOR COUNCIL ACTION
The City That Soars!
Description The Falcon Heights Planning Commission conditionally recommends adoption of
the proposed chicken ordinance.
Background
In March, 2013, the Environment Commission presented to the City Council a draft
ordinance allowing residents to keep chickens by permit under the conditions stated
in the ordinance. A majority of the Council directed staff to move forward with the
proposed ordinance. As the proposed ordinance amends the zoning code as well as
the animal chapter, the Council sent the matter to the Planning Commission for a
public hearing and recommendation.
In addition, at the request of the Mayor, staff had posted a poll on the website. The
poll expired and was reopened several times. The final tally was 149 in favor of
chickens. 74 opposed.
On May 28, 2013, the Planning Commission held a public hearing on this matter, but
the only comment received was a letter from a resident given to staff on the
morning of the hearing and attached to this report. Points made in the letter were
considered in the Commission discussion.
The Planning Commission voted 4 to 1 in favor of recommending adoption of the
ordinance, conditional on changing paragraph 10-35 (11) to read as follows:
Chickens must be kept in the roofed structure or attached pen whenever they
are unattended by the keeper; but when attended by the keeper, the chickens
are allowed in a mobile pen or in a completely fenced exercise yard.
As this section is in the proposed new Article IV of Chapter 10, not Chapter 113, the
Planning Commission has no direct jurisdiction over that portion of the ordinance,
but Commissioners strongly recommend this change.
Planning Commissioners were concerned that the proposed ordinance does not
place a maximum size on chicken coops and pens and that these structures do not
really fit anything in Section 113-240 Accessory Buildings and Structures.
Concluding that it would be unlikely this issue would arise in practice, given that
the ordinance limits the number of chickens to 4, they declined to make a specific
recommendation but asked staff to communicate this concern to the Council.
Budget
Impact
N/A
Meeting Date July 24, 2013
Agenda Item Policy G2
Title Ordinance amending the Falcon Heights
code to allow the keeping of chickens.
Submitted By Deborah Jones,
Zoning and Planning Director
Families, Fields and Fair
__________________________
Attachment(s) • Ordinance 13-04 allowing and regulating the keeping of chickens in the
City of Falcon Heights
• Letter received from Melissa Weber-Sanders, May 28, 2013
• Minutes of the May 28, 2013, Planning Commission
Action(s)
Requested
Discussion and Vote on the proposed ordinance.
ORDINANCE NO. 13-04
CITY OF FALCON HEIGHTS
RAMSEY COUNTY, MINNESOTA
AN ORDINANCE AMENDING CHAPTERS 10 AND 113
OF THE FALCON HEIGHTS CITY CODE
CONCERNING CHICKENS
THE CITY COUNCIL OF FALCON HEIGHTS ORDAINS:
SECTION 1. Chapter 10 of the Falcon Heights City Code is amended by adding Article IV to
read as follows:
ARTICLE IV. CHICKENS
10-34 Keeping of chickens.
A. Any person who keeps chickens in the City must obtain a permit
prior to acquiring the chickens. Chickens may only be kept in zoning
districts where chickens are an allowed accessory use. The initial permit
is valid for up to two (2) years beginning on the date the chickens arrive
on the site and ending on December 31 of the following year. Subsequent
permits are valid from January 1 of one year to December 31 of the second
year. Applications for permits must be made to the Zoning and Planning
Director.
(1) Fees charged for the issuance of a permit to keep chickens
will be set by the City Council.
(2) If the permit applicant is not the fee owner of the premises on
which the chickens are sought to be kept and for which the permit
would apply, the application shall be signed by all fee owners of
the premises.
(3) The City may refuse to grant or may revoke a permit if the
chickens become a nuisance, as evidenced by a second
substantiated violation (within 12 months of a first substantiated
violation) of this Section of the City Code, or Chapter 22 of the
City Code.
(4) The City may refuse to grant a permit to, or may revoke a
permit from, a person convicted of cruelty to animals.
Doc. #168232v.1
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(5) Permits are non-transferable and do not run with the land.
(6) A permit is a license granted to the chicken keeper by the
City and does not create a vested zoning right.
.
(7) Prior to issuance of a permit, the prospective permit holder
must acknowledge they have read the chicken run educational
material provided by the City.
(8) Prior to issuance of a permit, the prospective permit holder
must provide a detailed sketch plan of the premises on which
chickens are sought to be kept, including the location, the
dimensions and design of the coop and run, establishing
compliance with the chicken coop and run specifications provided
in this Article.
(9) Prior to issuance of a permit, the prospective permit holder
must provide a plan for maintaining an adequate temperature in the
coop for the safety of the chicken hens. The plan must address
both extreme winter and summer temperature conditions.
(10) The permit application will be processed administratively.
It will not be referred to the City Council for consideration.
10-35 Each person holding a permit to keep chickens within the City must
comply with the following:
(1) The principal use of the specific property must be either
single-family residential or two-family residential. A permit will
not be issued for any property which is used principally for
something other than single-family or two-family. If the property's
principal use is two-family residential, then the property owner
must sign the permit in addition to the chicken keeper;
(2) No person may keep more than four (4) chickens;
(3) No person may keep a rooster;
(4) No person may allow chickens to range freely without
fencing or without a mobile pen;
(5) No person may keep any chickens inside a house or garage;
(6) No person may slaughter any chickens within the City;
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(7) Chickens must be provided a secure and well ventilated
roofed structure ("chicken coop");
(8) The roofed structure for the chickens may only be located in
a rear yard and must meet setback and building separations as
established in City zoning and building codes, except that the
roofed structure and fencing must maintain a 20-foot separation
from dwellings on adjacent properties;
(9) The roofed structure shall be fully enclosed, wind proof, and
have sufficient windows for natural light;
(10) All premises on which hens are kept or maintained shall be
kept clean from filth, garbage, and any substance which attracts
rodents. The coop and its surrounding must be cleaned frequently
enough to control odor. Manure shall not be allowed to
accumulate in a way that causes an unsanitary condition or causes
odors to be detected on another property. Failure to comply with
these conditions may result in removal of chickens from the
premises or revocation of a chicken permit.
(11) Chickens must be kept in the roofed structure, an attached
pen, or a detached mobile pen whenever they are unattended by the
keeper; but when attended by the keeper, the chickens are allowed
in a completely fenced exercise yard;
(12) The coop's attached pen must be securely constructed with
at least a mesh type material and shall have protective overhead
netting to keep the chickens separated from other animals;
(13) The coop's attached pen must be well drained so there is no
accumulation of moisture; and
(14) The floor area of the roofed structure or a combination of
the floor area and attached pen area must equal at least ten (10)
square feet of area per chicken.
(15) All grain and food stored for the use of the hens on a
premises with a chicken permit shall be kept in a rodent proof
container.
(16) Leg bandings are required on all chickens. The bands must
identify the owner and the owner’s address and telephone number.
SECTION 2. Section 113-174(d) of the Falcon Heights City Code is amended by adding
subsection (13) to read as follows:
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(13) Keeping of chickens as regulated by the Code.
SECTION 3. Section 113-181(d)(1) of the Falcon Heights City Code is amended to read as
follows:
(13) All accessory uses as permitted in the R-1 and R-2 Districts except that the
keeping of chickens, as regulated by the Code, is only allowed as accessory to a single-
family or two-family home.
SECTION 4. This ordinance is effective immediately upon its passage and publication.
ADOPTED this ______ day of _______________, 2013, by the City Council of Falcon
Heights, Minnesota.
CITY OF FALCON HEIGHTS
BY: _______________________________________
Peter Lindstrom, Mayor
ATTEST:
___________________________________
Bart Fischer, City Administrator/Clerk
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May 20, 2013
Dear Mayor Lindstrom, Council Members Ms. Pamela Harris, Mr. Chuck Long, Ms.
Beth Mercer‐Taylor, and Mr. Keith Gosline,
It has recently come to my attention that the City of Falcon Heights is considering
bringing an ordinance to vote that would allow urban farming of chickens within
city limits.
I have great concerns about a city of our size allowing urban livestock farming of
any breed of animal. While I understand the value of healthy, locally grown food, the
city must also take into consideration the environmental and fiscal costs associated
with approving an ordinance that allows urban chicken farming. I am quite
concerned about how the city would be able to manage the implementation and
enforcement of an ordinance that would protect the health and safety of the animals,
their owners and the residents of Falcon Heights.
Even if the city does not allow roosters, a brood of laying hens can get quite noisy.
Proponents of chicken farming argue that a brood of four chickens is no louder than
a couple of people talking. However, many urban chicken farmers express concern
over the amount of noise their birds make. I have been to friends‘ houses who have
chickens and the animals are not quiet. Despite the arguments, there is no such
thing as a quiet breed of chicken. Unlike dogs, who can be brought inside if they are
barking and trained not to bark, chickens live outside and cannot be trained.
Chickens are early risers and even hens start to make noise if they are out of their
coop when the sun rises.
I have heard proponents of chicken farming compare chicken waste to dog waste. I
would like you to look at the comparison accurately. Chickens are live animals; they
will smell and produce waste. Arguably, a brood of four hens produces a small
amount of feces a day (112‐320 lb/ year for 4 average sized chickens. On average a
large dog produces 670 lbs of waste a year). However, this does not take into
account waste produced by the spilled feed (which can be a rodent attractant),
nesting hay or shavings and waste that saturates into the wooden coop boards. This
waste does produce an odor. Chicken waste tends to be liquidy and hard to contain
and clean until after it has dried.
While properly composted chicken waste can be a good garden fertilizer, fecal waste
that is not properly composted contains very high levels of nitrogen and can be very
harmful to plants and grasses. Unlike composting of plant matter, composting of
chicken manure does produce an odor. Furthermore, uncomposted chicken manure
contains live salmonella and should not be used to fertilize fruits and vegetables and
must be handled properly.
Chicken fecal matter is high in phosphorus (80% in chickens versus 0.25% in dog
feces). Minnesota currently has a law that restricts the sale of commercial fertilizers
containing phosphorus (Minnesota Statutes 18C.60). This law was enacted to
prevent an overabundance of algae and other aquatic plants in the rivers and lakes.
Just like restricted commercial fertilizers, chicken waste from urban farming that is
not properly disposed of or over‐applied as a garden fertilizer can leach into the
water table and negatively impact the Mississippi River and local lakes. I ask if the
City and Environmental Commission has looked into the issue?
The city currently has no way to enforce picking up dog waste. How would it
enforce the safe and timely removal of chicken waste?
Recently there have been a few coyote spotted in Falcon Heights. Small predatory
animals, like coyote, living in large urban settings have a limited food source. Sadly,
captive chickens are easy prey. Even chickens that are caged as required in the
proposed ordinance are vulnerable to predation. The only consistent method of
keeping predators out of a chicken run is electrified wire. I am concerned that
bringing captive prey into the city would result in an increasing coyote population.
Furthermore, chickens and their waste do attract many other vermin such as mice,
moles and rats. These animals and their associated diseases are a concern for the
health and safety of the residents of Falcon Heights, especially the younger and
older populations.
According to Minnesota Chicken Run Rescue the recent increase in interest in
having chickens has overwhelmed animal rescue organizations with inquiries from
people wanting to find homes for chickens who are no longer wanted or have been
abandoned. How does the city plan to address the issue of surrendering unwanted
or abused animals?
Because of these concerns the city does need to consider set back ordinances that
prevent chicken coops from being located too close to a neighbor’s property. The
proposed set back of 20 ft would provide a reasonable distance however the set
back distance may not be feasible on the majority of the lots in Falcon Heights and
would require significant administrative oversight.
Cities in the metro area that allow urban chickens have codes that require extensive
permits, inspections and welfare checks to protect the health and safety of the
residents and the animals. The proposed ordinance would require a large amount
of additional work for the City. I am concerned about City of Falcon Heights’ ability
to enforce a safe, healthy, and effective urban livestock ordinance. Implementation,
enforcement, and management of a safe and healthy urban livestock ordinance
would come at a great cost to the city. Larger cities, such as St Paul
(http://www.stpaul.gov/index.aspx?NID=5019) Minneapolis
(http://www.minneapolismn.gov/www/groups/public/@citycoordinator/docume
nts/webcontent/wcms1p‐099323.pdf) , Maplewood
http://www.ci.maplewood.mn.us/DocumentCenter/Home/View/2082) and
Roseville have staff that can address ordinance enforcement, concerns, or violations.
The City of Falcon Heights has a very limited staff to enforce code violations. Falcon
Heights has a shared police force and the City does not run or employ its own animal
control facility to aid in situations where animals are mistreated or needing to be
surrendered.
As the City moves forward in this discussion I implore you to consider the following
issues. How is the city equipped to respond to citizen concerns about odor, noise,
mistreated animals, vaccination requirements, coop permits and maintenance,
inspections, and animal health and public health concerns?
At this point in time I think it would be premature to vote on an ordinance allowing
urban chickens without investing a lot of time and money into the questions and
concerns I have raised above. As a resident of Falcon Heights I would like to see
your time and my money utilized in other ways to help the city of Falcon Heights.
Sincerely,
Melissa Weber‐Sanders
1711 Albert St N
mlwsanders@comcast.net
651‐646‐9562
http://www.brittonclouse.com/chickenrunrescue/predators_mn.pdf
http://www.brittonclouse.com/chickenrunrescue/
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 1 of 6
City of Falcon Heights
Planning Commission Minutes
May 28, 2013
PRESENT: Commissioners Black, Brown, Gustafson, Minns, Wartick, Council Member
Harris, Staff Liaison Jones, City Attorney Soren Mattick.
ABSENT: Commissioner Fite and Council Member Harris (with notice)
The meeting was called to order at 7:02 p.m. by the Chair, Commissioner Black, who noted
that a quorum was present.
Public Hearing on an amendment to the City Code allowing and regulating the keeping
of chickens.
Planning and Zoning Director Deb Jones introduced the subject of tonight's hearing. The
proposed ordinance on the keeping of chickens has already been seen by the Council after a
recommendation from the Environment Commission, but it has been referred to the Planning
Commission for a recommendation because it amends the Zoning Code (Chapter 113) as
well as adding a new Article 4 to Chapter 10, Animals. The Chapter 10 portion of the
ordinance would regulate the keeping of chickens - setting standards and requiring permits
and inspection - if this use is allowed. The zoning portion of the ordinance actually allows
the keeping of chickens in R-1 and R-2 zones. The entire ordinance is available online.
Commissioner Wartick asked if the Chapter 10, Article 4, is within the purview of the
Planning Commission. Jones said that if the Planning Commission recommends against even
allowing the keeping of chickens as a use, and if the Council follows that recommendation,
then all the proposed provisions to be added to the Animal Chapter become moot.
Commissioner Black pointed out that some paragraphs in the Chapter 10 section do pertain to
setbacks and other zoning type issues. Jones acknowledged that the Planning Commission
could weigh in on those items because they are directly related to the rules for accessory
structures.
Commissioner Minns asked if, for a duplex, the other tenant had to approve of one tenant
keeping chickens. Jones said the owner must approve, but the approval of the other tenant is
not required.
Commissioner Black opened the public hearing. Black cited a letter originally sent to the
Council and received by the Commission the morning of the hearing from Melissa Weber-
Sanders of 1711 Albert Street N stating concerns about the keeping of chickens and
expressing opposition to the ordinance. This was the only public comment received before
the hearing.
No one came forward to speak, so the hearing was closed.
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 2 of 6
Planning Commission Discussion and Action
Jones told the Commission that a quick poll was set up on the website at the request of
Mayor Lindstrom for a simple yes/no vote on "chickens in the neighborhood." The poll had
expired, and the final result was 154 in favor, 59 opposed. The poll was set up to allow only
one vote per computer. She added that the Council "narrowly" (3-2) supported the proposal,
which is why it has come to the Planning Commission.
Commissioner Gustafson asked about fees and additional costs to the City. Would the fee be
set to cover the costs of administration, inspections, enforcement, etc.? Jones said the
ordinance provides for the Council to set the fees in the Fee Schedule. They will make their
best estimation of what amount will be revenue-neutral and will look at what is charged in
other cities. St. Paul charges over $100 for the first year of a chicken permit. The City would
set up an application packet including educational material for permit applicants. She added
that the proposed ordinance was the result of a process similar to last year's Planning
Commission work on the special event ordinance - researching other cities and crafting an
ordinance for Falcon Heights using the elements of other city ordinances that seem to fit our
city. The proposed chicken ordinance contains elements from Stillwater, Eagan and
Maplewood.
Commissioner Black pointed out that Commission packet included a map of cities in the
metro area that allow or prohibit chickens. (The packet is available on the city website.)
Commissioner Minns asked if the letter from Ms. Weber-Sanders was received by the
Council prior to their earlier discussion. Jones said that she had only received it that morning
attached to an email. She did not have the email and could not remember the original date,
but since the Council had discussed chickens in early March, she did not think they had seen
it then. Minns cited concerns about complaints and asked how staff would handle them.
Jones said it would probably be similar to the way complaints about animals are already
handled.
Commissioner Brown asked how much interest has been expressed by residents in having
chickens. Jones said she has personal knowledge of at least half a dozen residents that have
approached the City over the years, but she would be very surprised if more than a few
households applied to keep chickens. Chickens are a lot of work, she said.
Brown asked if a lot of properties would be eliminated from eligibility due to not having
space to meet the setback requirements. Jones said most lots would have room for a small
accessory structure. There could be some exceptions, for instance, certain homes that have
almost no back yard. Answering a follow-up question, she said the ordinance does not set up
special zones where chickens would be allowed or not allowed other than the restriction to
R-1 and R-2.
Commissioner Black pointed out that the requirement that the chicken coop be a minimum of
20 feet from the house on an adjacent lot might put the chicken owner out of compliance if
the neighbors added on to their house. Jones said she would assume it would work like any
other nonconformity that becomes nonconforming after it exists, do to some change. State
law allows such nonconformities to be kept, but she would have to check that there is not
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 3 of 6
some difference in this case. Jones acknowledge that it was possible that this situation could
arise if a chicken owner built their coop far enough forward of the rear property line.
In response to a question from Commissioner Gustafson, Jones confirmed that the proposed
ordinance does not require neighbor approval. He also asked about the prohibition against
slaughtering chickens. Jones said she felt this was basically an esthetic choice and that most
cities which allow chickens prohibit slaughter. You can't slaughter other animals either.
There are probably resources easy to find for those who seek this service.
Wartick pointed out a potential inconsistency between the references to the coop structure
itself and the accessory pen. Is the 20 foot separation from the house next door intended to
keep all chickens at least 20 feet from the neighboring house (i.e. the pen) or does it just
apply to the roofed coop structure? Paragraph 8 does require both the coop and the fenced
pen to be 20 feet from the neighboring structure. Evidently this would include any mobile
pen the owner uses to move the chickens around the property.
Commissions had further discussion about the interaction of Paragraphs 8 and 11, regarding
the confinement of chickens under various circumstances, for instance, attended or
unattended. Again, the question came up regarding how much weight the Planning
Commission's recommendations might have regarding measures proposed for Chapter 10.
Commissioner Black asked for more background, saying that debating Chapter 10 provisions
is not of any use unless the use is allowed in the end, so the first priority is coming to a
recommendation on the use itself.
Jones said that she had left out much background for the sake of brevity but would be glad to
expand on the history of discussion in the Environment Commission, which she also staffs.
The Environment Commission took up this subject about a year ago, invited guest speakers
and researched other cities. Jones said she felt that Commission's interest is part of a general
movement taking place in urban areas all over the country in which people are seeking
options to live healthier lives and reduce the consumption of fossil fuel. It is a sustainability
movement, in line with the interests of the Environment Commission. They spent months
studying the issue and researching chicken ordinances - similar to the Planning Commission's
work on the front porch and special event issues in 2011 and 2012.
Commissioner Black enumerated other issues brought up in the letter from Ms. Weber-
Sanders - noise, odor, predators, and setbacks. He said he found the letter persuasive and
shares those concerns. He feels Stillwater is so different a city from Falcon Heights that
something based on their ordinance isn't necessarily good for a city like Falcon Heights with
small lots. He does not favor having chickens next door.
Minns pointed out that one household with chickens affects as many as five properties
around it, and those neighbors have no say. Brown countered that neighbors have no say
about dogs on a neighbor's property either, and dogs can be annoying. There are a lot of
things we don't get to weigh in on that happen on our neighbors' property. He said he has
some concern about the wording but not ready to disapprove in general. Gustafson pointed
out that there is a permit involved and that permits can be revoked if people are "not good
neighbors." Black said things can be difficult to manage once they are allowed; the time to
anticipate those difficulties is up front. Jones said that though she did not anticipate that
many people would apply for permits, she did not know how much staff time each permit
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 4 of 6
would consume. It is a legitimate concern. Commissioners continued to discuss enforcement,
staff time and related issues.
Jones said the Commission has three options: (1) recommend not adopting the ordinance, (2)
recommend adopting the ordinance as written, and (3) recommend adopting with certain
conditions. Commissioners agreed that it is not useful to consider the language issues that
have been brought up without having a consensus to adopt in the first place. The Chair asked
for a motion, up or down.
Brown move, Minns seconded, to recommend approval of some ordinance allowing
chickens. There was no discussion. The vote was 3 in favor, 2 opposed. When it clear that the
motion was not on the ordinance as proposed but for whether or not to recommend some
ordinance, one Commissioner changed his vote, and it was 4 in favor, 1 opposed.
The Commission then went on to consider conditions on their recommendation. Jones
reviewed the concerns she had heard in the prior discussion. First, there was a need for more
clarity in 10-35 (8) regarding the separation from the house on the adjoining property.
Second, there was some question about the meaning and intent of 10-35 (11) regarding the
amount of free movement chickens could have outside of their pen, with or without the
owner's supervision. These are both "zoning-type" provisions. Commissioners took up
discussion of these provisions.
The core of the discussion came down to where the chickens should be when the owner is not
physically with them and the status of the mobile pen and when it should be used. And does
this ordinance allow the chickens to run free in a fenced back yard when the owner is present,
or do they need additional confinement - say in a mobile pen - even when the owner is
present? Brown said he would be more comfortable requiring unattended chickens to be
either in their coop or in their pen (as in paragraph 12), not in a mobile pen. He would leave
up to the Council how to restrict attended birds.
Minns felt that the "exercise yard" phrasing was also confusing, and that there should be no
additional distinction for an "exercise yard" as separate from the back yard.
Jones apologized for a side comment but she wanted to point out that 10-34 requires sketches
and plans from any applicant for a chicken permit, so applicants would have to "jump
through some hoops" to get a permit in the first place. She said she didn't want the
Commission or the public to skip over those requirements. She said that the Commission's
role in the Chapter 10 portion of the ordinance is a little different from conditional
recommendations made on other ordinances because that is outside the zoning chapter but
she felt the Commission has some valid concerns and that the Council would be glad to have
those communicated.
Minns said he felt that whatever the City adopted most residents would behave responsibly
and be good neighbors, but there could be residents who would not be serious about doing it
right and would cause problems, no matter how it was written. Hopefully enforcement
measures would make sure they did not keep chickens long. But it would not be possible to
eliminate every such possibility up front. He was not opposed to recommending some form
of the ordinance.
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 5 of 6
After further discussion, Commissioners were satisfied that 10-35 (8) applies to the roofed
coop and the permanent pen and does not include any mobile pen, and therefore the
paragraph can stand, requiring these structures to be a minimum of 20 feet from a dwelling
on an adjacent property. Commissioners had some suggested changes to 10-35(11)
Commissioners returned to a concern raised earlier by Commissioner Minns that there is no
limit to the maximum size of a chicken coop. Would residents be able to build a very large
structure and would staff have the discretion to limit that size? Jones said that if it were
allowed by the code, staff would have to allow it. All other zoning requirements would apply
however - lot coverage and the accessory structure restrictions in Section 113-240. She read
aloud the 113-240(k), Standards for utility structures. This mostly fits coops except it sets a
minimum size of 35 square feet, which would be very large for a chicken coop. The best
practices in the educational materials applicants would have to read would recommend a
much smaller size, but those best practices are not in our ordinance. Black said we are
dealing with a new kind of accessory structure here. Jones said staff would feel more
comfortable processing permits without the ambiguity.
Commissioners seemed disinclined to add some amendment to 113-240 and asked if their
concerns could be communicated to the Council. Jones said yes, though if they felt the size
issue is enough of a concern to imperil the effectiveness of staff in administering the
ordinance, they might want to reconsider their earlier motion. No Commissioner felt that
level of concern.
The consensus on the recommended change to 10-35(11) is that it should read:
Chickens must be kept in the roofed structure or attached pen whenever they
are unattended by the keeper; but when attended by the keeper, the chickens
are allowed in a mobile pen or in a completely fenced exercise yard.
Minns moved, Brown seconded, that the Commission recommend adoption of the ordinance
with the amendment to 10-35(11) as stated above. The vote was 4 in favor, 1 opposed.
Jones said she would let the City Administrator know that the Commission has concerns
about the application of Section 113-240. If amendment is required later, this may need
another public hearing.
Approval of Minutes: The minutes for February 26, which had been tabled, were approved.
The minutes for April 23 were approved with minor corrections.
Information and Announcements:
Jones gave an update on the Hermes site. The Council acted on May 22 to approve all three
zoning measures. Various approvals are still needed from the Metropolitan Council and
Ramsey County. Construction is expected to start later this year. She said a lot of people
have heard about this redevelopment and very excited about it, especially those working with
related programs at the University.
City of Falcon Heights - Planning Commission Meeting of May 28, 2013 - Page 6 of 6
Movie in the Park is coming up in June, with an opportunity to camp out. This is the third
year of the program. Camping space needs to be reserved in advance.
Commissioner Black asked if there are any funding issues that might slow down the Hermes
site redevelopment. Jones said that the housing component will be financed by tax credit
financing, and that the financial picture had changed to the point that they would have to go
100% affordable, but she had heard there was a lot of interest from funding agencies. The
City has been assured that both components of the development will remain on the tax rolls.
The Planning Commission still has a vacancy.
ADJOURNMENT: The meeting was adjourned at 9:16 p.m.
Respectfully submitted,
Deborah Jones, Staff Liaison
REQUEST FOR COUNCIL ACTION
The City That Soars!
Item Approve Bond Bid for 2013 Street Improvement Project
Description
The City’s Financial Consultant Ehler’s and Associates has received bids back for
the bonds relating to the 2013 Street Improvement Project. Due to timing related to
the bond sale, they have asked that the Council approve the bond bid at the July
24th
City Council meeting.
Attached is a draft of the resolution provided by the City’s bond counsel and Ehlers
for Council approval. A representative will be at the meeting to provide more
information on the bond bid and resolution. In general, the bid came in favorably
for the City and lower than expected.
Staff recommends approval of the bond bid relating to the 2013 Street Improvement
Project.
Budget Impact Ehlers representatives will explain the budget impact at the Council meeting.
Levying for the bonds will need to start in 2015.
Attachment(s) Draft Resolution No. 13-19
Action(s)
Requested
That Council approve Resolution No. 13-19, approving the bond bid for the 2013
Street Improvement Project and providing for the issuance and sale of $445,000
general obligation improvement bonds, series 2013a, and pledging special
assessments and levying a tax for the payment thereof.
Meeting Date July 24, 2013
Agenda Item Policy G3 (Addendum)
Attachment Draft Resolution No. 13-19
Submitted By Bart Fischer, City Administrator
Families, Fields and Fair
__________________________
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
July 24, 2013
No. 13-19
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$445,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2013A, AND
PLEDGING SPECIAL ASSESSMENTS AND LEVYING A TAX
FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Falcon Heights, Minnesota (the
"City") has heretofore determined and declared that it is necessary and expedient to issue
$445,000 General Obligation Improvement Bonds, Series 2013A (the "Bonds"), pursuant to
Minnesota Statutes, Chapters 429 and 475, to finance the construction of various public
improvement projects within the City (the "Improvements"); and
B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville,
Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been
solicited by Ehlers pursuant to the Preliminary Offering Memorandum dated July 15, 2013; and
C. WHEREAS, the Improvements and all their components have been ordered prior
to the date hereof, after a hearing thereon for which notice was given describing the
Improvements or all their components by general nature, estimated cost, and area to be assessed;
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon
Heights, Minnesota, as follows:
1. Acceptance of Proposal. The proposal of United Bankers' Bank (the
"Purchaser"), to purchase the Bonds of the City (or individually, a "Bond"), in accordance with
the Terms of Proposal established for the Bonds, at the rates of interest hereinafter set forth, and
to pay therefor the sum of $______________, plus interest accrued to settlement, is hereby
found, determined and declared to be the most favorable proposal received and is hereby
accepted, and the Bonds are hereby awarded to the Purchaser. The Administrator is directed to
retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good
faith checks or drafts.
2. Bond Terms.
(a) Title; Original Issue Date; Denominations; and Maturities. The Bonds shall be
titled "General Obligation Improvement Bonds, Series 2013A", shall be dated August 21, 2013,
A-1
as the date of original issue and shall be issued forthwith on or after such date as fully registered
bonds. The Bonds shall be numbered from R-1 upward in the denomination of $5,000 each or in
any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds
shall mature on February 1 in the years and amounts as follows:
Year Amount
2015 $
2016
2017
2018
2019
2020
2021
(b) Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book
entry form only (the "Book Entry Only Period"), shall at all times be in the form of a
separate single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE
& CO., as the nominee (it or any nominee of the existing or a successor Depository, the
"Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall
have any responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds shown
on the books and records of the Participant (the "Beneficial Owner"). Without limiting
the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have
any such responsibility or obligation with respect to (A) the accuracy of the records of the
Depository, the Nominee or any Participant with respect to any ownership interest in the
Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than
the Depository, of any notice with respect to the Bonds, including any notice of
redemption, or (C) the payment to any Participant, any Beneficial Owner or any other
person, other than the Depository, of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the consent given or other action taken
by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of
securing the vote or consent of any Holder under this Resolution, the City may, however,
rely upon an omnibus proxy under which the Depository assigns its consenting or voting
rights to certain Participants to whose accounts the Bonds are credited on the record date
identified in a listing attached to the omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to
be the absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of obtaining any
consent or other action to be taken by Holders for the purpose of registering transfers
with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as
paying agent hereunder, shall pay all principal of and premium, if any, and interest on the
Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and
all such payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and premium, if any, and interest on the Bonds
to the extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to
the effect that the Depository has determined to substitute a new Nominee in place of the
existing Nominee, and subject to the transfer provisions in paragraph 10 hereof,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments
with respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the Bond
Registrar or City, as the case may be, to the Depository as provided in the Letter of
Representations to the Depository required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said Letter of Representations, together with any
replacement thereof or amendment or substitute thereto, including any standard
procedures or policies referenced therein or applicable thereto respecting the procedures
and other matters relating to the Depository's role as book-entry Depository for the
Bonds, collectively hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in
book-entry form shall be limited in principal amount to Authorized Denominations and
shall be effected by procedures by the Depository with the Participants for recording and
transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to
the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any
consent or other action to be taken by Holders, the Depository shall consider the date of
receipt of notice requesting such consent or other action as the record date for such
consent or other action; provided, that the City or the Bond Registrar may establish a
special record date for such consent or other action. The City or the Bond Registrar shall,
to the extent possible, give the Depository notice of such special record date not less than
15 calendar days in advance of such special record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under
this Resolution and any paying agency/bond registrar agreement, shall agree to take any
actions necessary from time to time to comply with the requirements of the Letter of
Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5
hereof, make a notation of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with
respect to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bond if it determines that the Depository is
no longer able to carry out its functions as securities depository or the continuation of the
system of book-entry transfers through the Depository is not in the best interests of the
City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the
preceding paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the City, is
willing and able to assume such functions upon reasonable or customary terms, or if the
City determines that it is in the best interests of the City or the Beneficial Owners of the
Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds
shall no longer be registered as being registered in the bond register in the name of the
Nominee, but may be registered in whatever name or names the Holder of the Bonds
shall designate at that time, in accordance with paragraph 10 hereof. To the extent that
the Beneficial Owners are designated as the transferee by the Holders, in accordance with
paragraph 10 hereof, the Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of
paragraph 10 hereof.
(d) Letter of Representations. The provisions in the Letter of Representation are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representation shall control.
3. Purpose; Cost. The Bonds shall provide funds to finance the Improvements in the
City. The total cost of the Improvements, which shall include all costs enumerated in Minnesota
Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. The City
covenants that it shall do all things and perform all acts required of it to assure that work on the
Improvements proceeds with due diligence to completion and that any and all permits and
studies required under law for the Improvements are obtained.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2014
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Year Amount
2015 $
2016
2017
2018
2019
2020
2021
5. No Optional Redemption. The Bonds shall not be subject to redemption and
prepayment prior to their stated maturity dates.
6. Bond Registrar. Bond Trust Services Corporation, in Roseville, Minnesota is
appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this
resolution.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF FALCON HEIGHTS
R-_______ $_________
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2013A
INTEREST
RATE
MATURITY
DATE
DATE OF
ORIGINAL ISSUE
CUSIP
____% FEBRUARY 1, ____ AUGUST 21, 2013
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: _______________________________ DOLLARS
THE CITY OF FALCON HEIGHTS, RAMSEY COUNTY, MINNESOTA (the
"Issuer"), certifies that it is indebted and for value received promises to pay to the registered
owner specified above, or registered assigns, in the manner hereinafter set forth, the principal
amount specified above, on the maturity date specified above, and to pay interest thereon
semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"),
commencing February 1, 2014, at the rate per annum specified above (calculated on the basis of
a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest Payment Date to which interest has
been paid or, if no interest has been paid, from the date of original issue hereof. The principal of
and premium, if any, on this Bond are payable upon presentation and surrender hereof at the
office of Bond Trust Services Corporation, Roseville, Minnesota (the "Bond Registrar"), acting
as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this
Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose
name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the
Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of
business on the fifteenth day of the calendar month next preceding such Interest Payment Date
(the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the
person who is the Holder hereof as of the Regular Record Date, and shall be payable to the
person who is the Holder hereof at the close of business on a date (the "Special Record Date")
fixed by the Bond Registrar whenever money becomes available for payment of the defaulted
interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days
prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond
are payable in lawful money of the United States of America. So long as this Bond is registered
in the name of the Depository or its Nominee as provided in the Resolution hereinafter described,
and as those terms are defined therein, payment of principal of, premium, if any, and interest on
this Bond and notice with respect thereto shall be made as provided in the Letter of
Representations, as defined in the Resolution, and surrender of this Bond shall not be required
for payment of the redemption price upon a partial redemption of this Bond. Until termination of
the book-entry only system pursuant to the Resolution, Bonds may only be registered in the
name of the Depository or its Nominee.
No Optional Redemption. The Bonds of this issue (the "Bonds") are not subject to
redemption and prepayment prior to their stated maturity dates.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $445,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege, which Bond has been issued pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a
resolution adopted by the City Council of the Issuer on July 24, 2013 (the "Resolution"), for the
purpose of providing money to finance the construction of various public improvement projects
within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation
Improvement Bonds, Series 2013A Fund of the Issuer. This Bond constitutes a general
obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal,
premium, if any, and interest when the same become due, the full faith and credit and taxing
powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered
bonds in Authorized Denominations (as defined in the Resolution) and are exchangeable for
fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts
at the office of the Bond Registrar, but only in the manner and subject to the limitations provided
in the Resolution. Reference is hereby made to the Resolution for a description of the rights and
duties of the Bond Registrar. Copies of the Resolution are on file in the office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney
duly authorized in writing at the office of the Bond Registrar upon presentation and surrender
hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution
and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar.
Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in
exchange for this Bond, one or more new fully registered Bonds in the name of the transferee
(but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided on the reverse side hereof with respect to the
Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither
the Issuer nor the Bond Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Falcon Heights, Ramsey County, Minnesota, by
its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of
its Mayor and its Administrator, the corporate seal of the Issuer having been intentionally
omitted as permitted by law.
Date of Registration: Registrable by: BOND TRUST SERVICES
CORPORATION
_______________________
Payable at: BOND TRUST SERVICES
CORPORATION
BOND REGISTRAR'S CITY OF FALCON HEIGHTS,
CERTIFICATE OF RAMSEY COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the /s/ Facsimile
Resolution mentioned Mayor
within.
/s/ Facsimile
Administrator
BOND TRUST SERVICES
CORPORATION
Roseville, Minnesota
Bond Registrar
By
Authorized Signature
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - _________________ as custodian for ___________________
(Cust) (Minor)
under the _____________________ Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
___________________________________________________ the within Bond and does hereby
irrevocably constitute and appoint _____________________ attorney to transfer the Bond on the
books kept for the registration thereof, 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:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners if the Bond is held by joint account.)
PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
DATE
AMOUNT
AUTHORIZED SIGNATURE
OF HOLDER
8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and Administrator and be sealed with the seal of the City;
provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate
seal has been omitted. In the event of disability or resignation or other absence of either officer,
the Bonds may be signed by the manual or facsimile signature of the officer who may act on
behalf of the absent or disabled officer. In case either officer whose signature or facsimile of
whose signature shall appear on the Bonds shall cease to be such officer before the delivery of
the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if the officer had remained in office until delivery.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
such Bond, substantially in the form hereinabove set forth, shall have been duly executed by the
Bond Registrar. The Bond Registrar shall authenticate the signatures of officers of the City on
each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the
date of registration in the space provided the date on which the Bond is authenticated, except that
for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as
a date of registration the date of original issue, which date is August 21, 2013. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the office of
the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond
Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the
registration of transfers of Bonds entitled to be registered or transferred as herein provided.
Upon surrender for transfer of any Bond at the office of the Bond Registrar, the City shall
execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration
(as provided in paragraph 9) of, and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like
aggregate principal amount, having the same stated maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any authorized
denomination or denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the office of the Bond Registrar. Whenever any
Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or his, her or its attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The Administrator is hereby
authorized to negotiate and execute the terms of said agreement.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth (15th) day of the
calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any
such interest not so timely paid shall cease to be payable to the person who is the Holder thereof
as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at
the close of business on a date (the "Special Record Date") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given by the Bond Registrar to the Holders not less than ten (10) days prior
to the Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether
or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected
by notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Administrator to the Purchaser upon receipt of the purchase price, and
the Purchaser shall not be obliged to see to the proper application thereof.
15. Funds and Accounts. There is hereby created a special fund to be designated the
"General Obligation Improvement Bonds, Series 2013A Fund" (the "Fund"), to be administered
and maintained by the Finance Director as a bookkeeping account separate and apart from all
other accounts maintained in the official financial records of the City. The Fund shall be
maintained in the manner herein specified until all of the Bonds and the interest thereon have
been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be
designated the "Construction Account" and "Debt Service Account", respectively.
(a) Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds, less capitalized interest, plus any special assessments levied
with respect to the Improvements and collected prior to completion of the Improvements and
payment of the costs thereof. From the Construction Account there shall be paid all costs and
expenses of making the Improvements, including the cost of any construction contracts
heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota
Statutes, Section 475.65; and the moneys in the Construction Account shall be used for no other
purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also
be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of
commencement of the collection of taxes or special assessments herein levied or covenanted to
be levied; and provided further that if upon completion of the Improvements there shall remain
any unexpended balance in the Construction Account, the balance may be transferred by the City
Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter
429, or transferred to the Debt Service Account; and provided further that any special
assessments credited to the Construction Account shall only be applied towards payment of the
costs of the Improvements upon adoption of a resolution by the City Council determining that
the application of the special assessments for such purpose will not cause the City to no longer
be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1.
(b) Debt Service Account. There are hereby pledged and there shall be credited to
the Debt Service Account: (i) all collections of special assessments herein covenanted to be
levied with respect to the Improvements and either initially credited to the Construction Account
and not already spent as permitted above and required to pay any principal and interest due on
the Bonds or collected subsequent to the completion of the Improvements and payment of the
costs thereof; (ii) any collections of all taxes herein or hereafter levied for the payment of the
Bonds and interest thereon; (iii) capitalized interest in the amount of $_______ (together with
interest earnings thereon and subject to such other adjustments as are appropriate to provide
sufficient funds to pay interest due on the Bonds on or before February 1, 2014; (iv) all funds
remaining in the Construction Account after completion of the Improvements and payment of the
costs thereof, not so transferred to the account of another improvement; (v) all investment
earnings on moneys held in the Debt Service Account; and (vi) any and all other moneys which
are properly available and are appropriated by the governing body of the City to the Debt Service
Account. The Debt Service Account shall be used solely to pay the principal and interest and
any premiums for redemption of the Bonds and any other general obligation bonds of the City
hereafter issued by the City and made payable from the Debt Service Account as provided by
law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (i) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued, and (ii) in addition to the above in an
amount not greater than five percent (5%) of the proceeds of the Bonds. To this effect, any sums
from time to time held in the Construction Account or Debt Service Account (or any other City
fund or account which will be used to pay principal or interest to become due on the bonds
payable therefrom) in excess of amounts which under then-applicable federal arbitrage
regulations may be invested without regard as to yield shall not be invested at a yield in excess of
the applicable yield restrictions imposed by said arbitrage regulations on such investments after
taking into account any applicable "temporary periods" or "minor portion" made available under
the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the
Construction Account or Debt Service Account shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof
if and to the extent that such investment would cause the Bonds to be "federally guaranteed"
within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended
(the "Code").
16. Assessments. It is hereby determined that no less than twenty percent (20%) of
the cost to the City of each Improvement financed hereunder within the meaning of Minnesota
Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied
against every assessable lot, piece and parcel of land benefitted by the Improvements. The City
hereby covenants and agrees that it will let all construction contracts not heretofore let within
one year after ordering each Improvement financed hereunder unless the resolution ordering the
Improvement specifies a different time limit for the letting of construction contracts. The City
hereby further covenants and agrees that it will do and perform, as soon as they may be done, all
acts and things necessary for the final and valid levy of such special assessments, and in the
event that any such assessment be at any time held invalid with respect to any lot, piece or parcel
of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken
by the City or this Council or any of the City officers or employees, either in the making of the
assessments or in the performance of any condition precedent thereto, the City and this Council
will forthwith do all further acts and take all further proceedings as may be required by law to
make the assessments a valid and binding lien upon such property.
The special assessments have heretofore been authorized. Subject to such adjustments as
are required by conditions in existence at the time the assessments are levied, it is hereby
determined that the assessments shall be payable in equal, consecutive, annual installments,
including both principal and interest, with interest at a rate per annum set forth below:
Improvement Designation Amount
Levy
Years
Collection
Years Rate
SEE ATTACHED SCHEDULE
At the time the assessments are in fact levied the City Council shall, based on the then-
current estimated collections of the assessments, make any adjustments in any ad valorem taxes
required to be levied in order to assure that the City continues to be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
17. Tax Levy; Coverage Test. To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of
other general property taxes in the City for the years and in the amounts as follows:
Year of Tax
Levy
Year of Tax
Collection
Amount
SEE ATTACHED SCHEDULE
The tax levies are such that if collected in full they, together with estimated collections of
special assessments and other revenues herein pledged for the payment of the Bonds, will
produce at least five percent (5%) in excess of the amount needed to meet when due the principal
and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the
Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce
the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61,
Subdivision 3.
18. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also discharge its obligations with respect to any prepayable Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
19. Compliance With Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than 60 days after the date of payment of a Reimbursement Expenditure,
the City (or person designated to do so on behalf of the City) has made or will have made a
written declaration of the City's official intent (a "Declaration") which effectively (i) states the
City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not
exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement
Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Bonds and in all events within the period ending on the date which is the later
of 18 months after payment of the Reimbursement Expenditure or one year after the date on
which the Project to which the Reimbursement Expenditure relates is first placed in service, but
not more than three years after the date of the Reimbursement Expenditure.
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating
in effect that such action will not impair the tax-exempt status of the Bonds.
20. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described:
(a) to provide or cause to be provided to the Municipal Securities Rulemaking
Board, by filing at www.emma.msrb.org, (i) at least annually, its audited financial statements for
the most recent fiscal year, and (ii) notice of the occurrence of certain events with respect to the
Bonds in not more than ten (10) business days after the occurrence of such event, in accordance
with the Undertaking; and
(b) its covenants pursuant to the Rule set forth in this paragraph and in the
Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and Administrator of the City, or any other officer of the City authorized to
act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the
City the Undertaking in substantially the form presented to the City Council subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
21. General Obligation Pledge. For the prompt and full payment of the principal and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are irrevocably pledged. If the balance in the Debt Service
Account is ever insufficient to pay all principal and interest then due on the Bonds payable
therefrom, the deficiency shall be promptly paid out of any other accounts of the City which are
available for such purpose, and such other funds may be reimbursed without interest from the
Debt Service Account when a sufficient balance is available therein.
22. Certificate of Registration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Ramsey County, Minnesota, together with such other
information as the County Auditor shall require, and there shall be obtained from the County
Auditor a certificate that the Bonds have been entered in the County Auditor's Bond Register and
the tax levy required by law has been made.
23. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
24. Negative Covenant as to Use of Proceeds and Improvements. The City hereby
covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit
them to be used, or to enter into any deferred payment arrangements for the cost of the
Improvements, 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.
25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(a) requirements relating to temporary periods for investments, (b) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (c) the rebate of excess investment
earnings to the United States if the Bonds (together with other obligations reasonably expected to
be issued and outstanding at one time in this calendar year) exceed the small-issuer exception
amount of $5,000,000.
For purposes of qualifying for the exception to the federal arbitrage rebate requirements
for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and
declares that (a) the Bonds are issued by a governmental unit with general taxing powers, (b) no
Bond is a private activity bond, (c) ninety-five percent (95%) or more of the net proceeds of the
Bonds are to be used for local governmental activities of the City (or of a governmental unit the
jurisdiction of which is entirely within the jurisdiction of the City), and (d) the aggregate face
amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all
subordinate entities thereof, and all entities treated as one issuer with 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.
26. Designation of 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 hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2013 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2013 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount of the Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
27. Payment of Issuance Expenses. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank, Chaska,
Minnesota on the closing date for further distribution as directed by the City's financial advisor,
Ehlers.
28. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
29. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
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Moved by: Approved by: ________________________
Peter Lindstrom
Mayor
July 24, 2013
LINDSTROM ____ In Favor Attested by: ________________________
GOSLINE Bart Fischer
HARRIS ____ Against City Administrator
LONG July 24, 2013
MERCER-TAYLOR
EXHIBIT A
PROPOSALS
[To be supplied by Ehlers & Associates, Inc.]
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