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HomeMy WebLinkAboutCCAgenda_05Jun8• CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 West Larpenteur Avenue AGENDA June 8, 2005 A. CALL TO ORDER: 7:00 PM B. ROLL CALL: GEHRZ KUETTEL LAMB LiNDSTROM TALBOT WORTHINGTON SHEA KODLUBOY ATTORNEY ENGINEER C. COMMUNITY FORUM: D. PRESENTATIONS: None Scheduled ~--~ E. APPROVAL OF MINUTES: May 25, 2005 TAB 1 • F. PUBLIC HEARINGS: 4 '~ ~ 1. Public hearing on a housing program and the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C TAB 2 G. CONSENT AGENDA: ~~_~~ 1. General Disbursements through June 2, 2005: $ 35,544.15 Payroll (5/15/OS - 5/30/05) $ 14,908.67 TAB 3 c~ / p 2. Appointment of Beth Mercer-Taylor, 2231 Folwell Avenue, to the c~b"~ ~l Planning Commission TAB 4 ~~ 3. Appointment of firefighters TAB 5 H. POLICY AGENDA: ~~~ ~ 1. Approval of the purchase of a fire pumper TAB 6 I. REPORTS FROM COUNCIL MEMBERS: J. INFORMATION AND ANNOUNCEMENTS: • K. ADJOURNMENT CITY OF FALCON HEIGHTS • MINUTES May 25, 2005 Mayor Gehrz convened the regular City Council meeting at 7:00 PM. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington, Finance Director Roland Olson, Accounting Intern Mark Hansmeier and Deputy Clerk Mary Shea Kodluboy COMMUNITY FORUM: There was no commentary from the audience. PRESENTATIONS: Recognition of Kimberly Kuhens recipient of the Girl Scout Gold Award Mayor Gehrz introduced Kimberly Kuhens and said that Kimberly has received the highest award in scouting for girls 9-12 years of age, the Girl Scout Gold Award. There is an extensive process that they go through and they must complete fifty hours of community service over a period of four months. Kimberly also serves the City as a member of the Parks and Recreation • Commission. Kimberly said that one of her projects was atwo-hour workshop at City Hall for girls, ages 6-12, and they learned about subjects such as self-defense, nutrition, fitness, etc. Mayor Gehrz introduced Jackie Fritsche, the new reporter for the Roseville Review, and welcomed Eric Hagen, reporter for the SunFocus. APPROVAL OF MINUTES: The minutes dated May 1 1, 2005 were unanimously approved as submitted. PUBLIC HEARINGS: None Scheduled CONSENT AGENDA: Mayor Gehrz said that Consent Agenda Item 4 was an addition this evening. Initially, Debbie Tretsven submitted an application for an appointment to the Parks and Recreation Commission, but after discussions with Mayor Gehrz, she decided the Environment Commission would be a better fit for her because of her teaching background. Kuettel moved approval of the Consent Agenda, as outlined below. The motion was unanimously approved. 1. General Disbursements through May 19, 2005: $104,561.44 • Payroll (5/O1/OS - 5/15/OS) $ 12,855.86 • FALCON HEIGHTS CITY COUNCIL MINUTES _2_ May 25, 2005 CONSENT AGENDA (continued) 2. Appointment of Laura Kwong, 1700 Fry Street, to the Neighborhood Commission 3. Appointment of Richard Rodich, 1341 Idaho Avenue, to the Planning Commission 4. Appointment of Debbie Tretsven, 1775 Hamline Avenue, to the Environment Commission POLICY AGENDA: Presentation of the City's Comprehensive Audited Financial Report for 2004 and presentation of the 2003 GFOA Award for Excellence Finance Director Olson introduced Mark Hansmeier, a graduating senior from the University of Minnesota's Carlson School of Management, who has been an accounting intern with the City for over a year. He said Mark is an absolute whiz and has been a terrific intern for the City. The City was able to get a partial scholarship from the Government Finance Officers Association of • the United States and Canada (GFOA) to help pay for Mark's internship. Finance Director Olson introduced Mr. Matthew Mayer, partner in the accounting firm of Kern DeWenter Viere, Ltd., the City Auditors. Mr. Mayer commented that Finance Director Olson always does advance preparation for the audit, is always well prepared and is very efficient. Mr. Mayer presented the City's Comprehensive Annual Financial Report for 2004 (CAFR) and the Memorandum on Financial Analysis, Accounting Policies and Procedures, and Internal Control. He said that every year the Government Finance Officers Association of the United States and Canada (GFOA) reviews the comprehensive annual financial reports for governmental units and public employee retirement systems, and issues certificates of achievement for excellence in financial reporting if they determine the highest standards in government accounting and financial reporting have been achieved. The City of Falcon Heights has been awarded the GFOA Certificate of Achievement for its 2003 CAFR, the fourteenth year the City has received this prestigious national award. Council member Talbot commented that Mr. Mayer indicates the City is moving in the right direction. What does he tell cities that aren't moving in the right direction? Mr. Mayer said they try to train and educate them. Council member Lindstrom said the reportable condition about segregation of duties comes up every year. Short of hiring five to six more people, are there some things the City can do for • checks and balances? Is the City doing them? FALCON HEIGHTS CITY COUNCIL MINUTES • May 25, 2005 -3- Presentation of the City's Comprehensive Audited Financial Report for 2004 and presentation of the 2003 GFOA Award for Excellence (continued) Mr. Mayer said there are three major cycles: Cash receipts, cash disbursements and payroll. It is difficult to adequately get that segregation. Based upon their experience, there is not much more the City can do. Mayor Gehrz said that mayors from communities that are considerably larger have told her they get that same reportable condition in their annual audits. Council member Lamb said the CAFR is the most important thing that the City does to manage and account for taxpayers' money. This is the report card for the number one responsibility. It is very good and reassuring to get a good report. Mayor Gehrz said that later on the agenda, the City Council will be talking about conduit bonding and conduit bonding authority. Where will that fit into the City's financial statements? Mr. Mayer said the debt won't be presented on the City's financial statements. The administrative fees will go into the general fund to help with operations. Mayor Gehrz presented Finance Director Olson with the GFOA's Certificate of Achievement for Excellence in Financial Reporting for the City's Comprehensive Annual Financial Report for the • fiscal year ended December 31, 2003. Lindstrom moved acceptance of the City's Comprehensive Annual Financial Report for 2004. The motion was unanimously approved. Notice of intent to hold a public hearin re ardin~ the issuance of multifamily housing revenue bonds to finance a housing_program under Minnesota Statutes Chapter 462C Administrator Worthington said the City Council, at their February workshop, discussed the issue of conduit bonding as an alternate revenue source for Falcon Heights. The City has the authority to conduit issue up to $10 million in bank-qualified, tax-exempt 501(c)3 bonds each year. The City lends its authority to a qualified non-profit, tax-exempt entity, and can take an administrative fee in return for lending this authority. Maplewood Senior Housing has agreed to a fee of $25,000, or slightly less than .5% of the total issue of $5,500,000. There is no financial risk to the City, and this conduit bonding does not affect the City's bond rating. The City of Hutchinson, Minnesota, is asking Falcon Heights to utilize its conduit bonding authority in order to help with the issuance of housing bonds for Maplewood Senior Housing, Inc., a Minnesota non-profit corporation and tax-exempt 501(c)3 organization. These bonds will be utilized to construct a 50-unit independent senior housing facility in Hutchinson. The City of Hutchinson has agreed to lend host approval to this transaction, due to their inability to act as a conduit for these bonds because they are near their bank-qualified limit for 2005. • 3 • FALCON HEIGHTS CITY COUNCIL MINUTES _4_ May 25, 2005 Notice of intent to hold a public hearing regarding the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes Chapter 462Cr (continued) Administrator Worthington said the Council is not voting on this tonight. This evening the Council is being asked to adopt a resolution authorizing the publication of a notice of a public hearing on June 8, 2005, regarding the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C. Council member Talbot said this seems like a good deal for Falcon Heights and its residents. This could create a $50,000 a year cash stream. In response to a question, Administrator Worthington said the initial contact about this came from Mary Ippel, the City's Bond Counsel with Briggs and Morgan. Council member Lamb said the City Council had extensive discussions about this at its Council workshops. The City can engage in this at no cost or liability to the City. The City is just agreeing to hold a public hearing about this. The City will get $25,000 on the revenue side. • Because of the City's financial situation and how little the City uses its bonding authority, the City can lend that ability to other municipalities. He thinks there will be more municipalities in this market. This is very much a winner. Everyone should be very pleased at the outcome of our work sessions. RESOLUTION 2005-06 Talbot moved adoption of Resolution 2005-06, outlined below, calling for a public hearing on a proposal for financing elderly housing facilities and authorizing publication of a notice of the hearing. The motion was unanimously approved. (a) WHEREAS, Minnesota Statutes, Section 462C, as amended (the "Act"), authorizes municipalities to finance the acquisition and construction of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Section 46X.07 of the Act provides that such programs for multifamily housing developments may be financed through the issuance of revenue obligations payable exclusively from the revenues of the program or developments; and (b) WHEREAS, the City Council of the City of Falcon Heights, Minnesota (the "City"), has received from Pines of Hutchinson, LLC, a Minnesota limited liability company (the "Borrower"), a proposal that the City assist in financing a project hereinafter described, through the issuance of revenue bonds (the "Bonds") by the City pursuant to a Joint Powers Agreement between the City and the City of Hutchinson, Minnesota ("Hutchinson"); and (c) The Borrower or a related entity proposes to acquire a 50-unit independent senior • housing facility located at 1015 Century Avenue SW in Hutchinson; and 4 • FALCON HEIGHTS CITY COUNCIL MINUTES _5_ May 25, 2005 Notice of intent to hold a public hearing re ardin~ the issuance of multifamil housing revenue bonds to finance a housing_ rogram under Minnesota Statutes Chapter 4620 (continued) RESOLUTION 2005-06 (d) Pursuant to Minnesota Statutes, Section 471.59, as amended, the City and Hutchinson will enter into a joint powers agreement authorizing the City to issue revenue bonds to finance acquisition of the facilities; and (e) WHEREAS, before proceeding with consideration of the request of the Borrower, it is necessary for the City to hold a public hearing on the proposal. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: 1. A public hearing on the proposal of the Borrower will be held at the time and place set forth in the Notice of Public Hearing hereto attached. 2. The general nature of the proposal and an estimate of the principal amount of Bonds to be issued to finance the proposal are described in the attached form of Notice of Public Hearing. • 3. Drafts of documents including the housing program related to the Bonds are on file in the office of the City Administrator. 4. The actions of City staff in publishing notice of the hearing for one publication in the official newspaper of the City, not less than 15 days prior to the date fixed for the hearing, substantially in the form of the attached Notice of Public Hearing, are hereby ratified. Adopted by the City Council of the City of Falcon Heights, Minnesota, this 25th day of May, 2005. Mayor Gehrz was highly complimentary of Administrator Worthington's ingenuity, creativity and persistence in finding alternative sources of revenue for the City. Update on recodification costs related to electronic search and retrieval Administrator Worthington said the City Council, at its regular meeting on May 11, reviewed and approved a contract with Municipal Code to recodify the City code. Council member Lamb asked staff to look at options and costs regarding electronic search and retrieval, and location of the code on the Internet, keeping in mind cost, efficiency, timeliness, and accuracy, and report back to the Council on May 25. The contract with Municipal Code has two components: 1) Recodification of the "paper" code, and quarterly updates of the code, prepared by Municipal; and 2) Electronic updates of the code, and web-hosting on their website, with a link to the code from our City website, or an internal hosting of the code. Staff prepared an analysis of the • options regarding the electronic copy of the code. The overall goal is to establish an accurate, consistent code, both in paper form, and electronically (web-based). S FALCON HEIGHTS CITY COUNCIL MINUTES _6_ • May 25, 2005 Update on recodification costs related to electronic search and retrieval (continued) Administrator Worthington said that, in addition, the web-based code is consistent with the Council's goal of improving citizen to city online transactions. Staff strongly recommends that the City Council approve web hosting by Municipal Code for the following reasons: 1. Accuracy with updated or revised code sections will be better if one entity does all of the revisions-online and in the paper copy. Municipal Code is highly qualified to do this work. 2. Municipal's cost is extremely competitive with the projected staff costs of doing the work in-house-it is $517 less than having staff do the work. 3. With a small staff, it is advisable to look for cost-effective solutions that also maximize the efficiency of city operations. The Municipal provision fulfills that goal. A brief discussion followed. Kuettel moved that staff be authorized to enter into an agreement with Municipal Code that includes online hosting of the code, and quarterly updates of the code electronically. The motion was unanimously approved. • REPORTS FROM COUNCIL MEMBERS: Council member Lindstrom said that Richard Rodich, the new appointee to the Planning Commission, attended the Planning Commission on May 24, and is hitting the ground running. INFORMATION AND ANNOUNCEMENTS: Council members Kuettel and Talbot reminded everyone to make use of the City's parks. Mayor Gehrz said the City has a contract with Housing Resource Center to provide consultations to residents about a wide range of housing issues, i.e. scopes of work, repair projects, help with reviewing bids, etc. They offer a variety of services that are free. Use the Housing Resource Center. Call City Hall to get their phone number. She mentioned there was an excellent article and pictures about the CERT training program, in the May 24 edition of the Minneapolis paper. She thanked Administrator Worthington for giving up part of her Saturday on May 21 to host a tour of the SE Corner. The Mayor, City Council and staff from Champlin were quite impressed with the project. The City Council workshop on June 1 is the kickoff workshop for the 2006 budget cycle. The workshop, which begins at 6 PM, will focus on goal setting. There are four goal areas which create work plan direction for the staff. She invited residents to come and sit in. If residents have ideas they would like to share with the City Council, feel free to contact anyone on the Council to talk about those ideas. FALCON HEIGHTS CITY COUNCIL MINUTES _~_ • May 25, 2005 INFORMATION AND ANNOUNCEMENTS (continued) Council member Talbot commented that the Housing Resource Center is a great resource. The housing stock in Falcon Heights is 50 years old and needs help. The HRC can help with home remodeling contracts and negotiations, and can tell you if you aren't getting an honest deal. The regular City Council meeting was adjourned at 8:10 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk • PUBLIC HEARINGS F1 6/8/05 ITEM: Public hearing on a housing program and the issuance of multifamily housing revenue bonds to finance a housing program under Minnesota Statutes, Chapter 462C SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Trudy Halla, Briggs & Morgan Dave Canister, Financial Consultant, Ehlers Associates EXPLANATION: Summary: At the February workshop, the Council discussed the issue of conduit bonding as an alternate revenue source for Falcon Heights. The City has the authority to conduit issue up to $10 Million in bank-qualified, tax-exempt (501(c)3) bonds each year. The City lends its authority to a qualified non-profit, tax-exempt entity, and can take an administrative fee in return for lending this authority. Maplewood Senior Housing has agreed to a fee of $25,000, or slightly less than .5% of the total issue of $5,500,000. There is no financial risk or repayment liability to the City, and this conduit bonding does not affect the City's bond rating. • The City of Hutchinson, MN, is asking Falcon Heights to utilize its conduit bonding authority in order to help with the issuance of housing bonds for Maplewood Senior Housing, Inc., a Minnesota non-profit corporation and tax-exempt 501(c)3 organization. These bonds will be utilized to construct a 50-unit independent senior housing facility, The Pines of Hutchinson, LLC, located on a 2.53 acre project site at 1015 Century Avenue SW in Hutchinson. The City of Hutchinson has agreed to lend host approval to this transaction, due to their inability to act as a conduit for these bonds because they are near their bank-qualified limit for 2005. ATTACHMENTS: • Resolution 2005-07 on pages - 3 • Joint Powers Agreement on pages y • Program Documentation on pages - • Loan agreement extract showing administrative fee to be paid to Falcon Heights on page ~_ ACTION REQUESTED: • Discussion • Motion to approve Resolution 2005-07 and the joint-powers agreement with the City of Hutchinson, MN for the issuance and sale of up to $5,500,000 Senior Housing Revenue Bonds for the Pines of Hutchinson, LLC Project, Series 2005A and 2005B 8 • CITY OF FALCON HEIGHTS RESOLUTION 2005-07 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF UP TO $5,500,000 SENIOR HOUSING REVENUE BONDS PINES OF HUTCHINSON, LLC PROJECT, SERIES 2005A AND 2005B BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota (the "City"), as follows: 1. Authority. (a) The City of Falcon Heights, Minnesota (the "City"), is authorized by Chapter 462C, Minnesota Statutes, as amended (the "Act"), to issue revenue bonds for the purpose of financing or refinancing projects including any land, building or other improvement and real or personal property, whether or not in existence, to the end that more adequate residential housing facilities for seniors and low- and middle-income families and persons may be provided, to enter into financing agreements with others for the purpose of providing revenues to pay such bonds, and further to secure the payment of such bonds. (b) Minnesota Statutes, Section 471.59, as amended, provides that two or more governmental units, by an agreement • entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units. 2. Description of Project. Pines of Hutchinson, LLC, a limited liability company (the "Borrower"), has requested that the City assist in financing the acquisition of a 50-unit independent senior housing facility located at 1015 Century Avenue in the City of Hutchinson, Minnesota (the "Project") more fully described in the housing program attached hereto. 3. Plan of Financing. In order to finance the Project, the Borrower has proposed to this Council that the City enter into a Joint Powers Agreement dated as of June 1, 2005 (the "Joint Powers Agreement") with the City of Hutchinson, Minnesota ("Hutchinson") to issue its Senior Housing Revenue Bonds (Pines of Hutchinson, LLC Project) Series 2005A and its taxable Senior Housing Revenue Bonds (Pines of Hutchinson, LLC Project) Series 2005B in an aggregate principal amount not to exceed $5,500,000 (collectively, the "Bonds"). The Bonds will be purchased by Oppenheimer & Co. Inc., (the "Underwriter") pursuant to a Bond Purchase Agreement among the City, the Underwriter and the Borrower (the "Bond Purchase Agreement"). The City and Wells Fargo Bank, National Association (the "Trustee") will enter into an Indenture of Trust dated as of June 1, 2005 (the "Indenture"). The proceeds of the Bonds will be loaned to the Borrower pursuant to a Loan Agreement dated as of June 1, 2005 between the City and the Borrower (the "Loan Agreement"). 9 • Repayment of the Bonds will be secured by collateral provided by the Borrower including a Combination Mortgage, Security Agreement, Fixture Financing Statements and Assignments of Leases and Rents, dated as of June 1, 2005, from the Borrower to the Trustee (the "Mortgage"), by which the Borrower grants to the Trustee a mortgage lien on and security interest in the Project, as security for the payment of the Bonds and assigns to the Trustee its interests in all leases and rents with respect to the Project. The Borrower will agree to provide continuing disclosure with respect to the Project and the Borrower pursuant to a Continuing Disclosure Agreement dated as of June 1, 2005 between the Borrower and the Trustee (the "Disclosure Agreement"). 4. Documents Presented. Forms of the following documents related to the Bonds have been submitted to the City: (a) The Loan Agreement; (b) The Indenture; (c) The Joint Powers Agreement; (d) The Mortgage (not executed by the City); (e) The Disclosure Agreement (not executed by the City); and (f) The Bond Purchase Agreement. (g) Findings. In accordance with the Act, it is hereby found, determined and declared that: (h) Financing of the costs of the Project will promote the public health, welfare, safety, convenience and prosperity by providing more adequate residential housing facilities for seniors and low- and middle-income families and persons. (i) There is no litigation pending or, to the City's actual knowledge, threatened against the City or the City relating to the Bonds, the Joint Powers Agreement, the Loan Agreement, the Bond Purchase Agreement or the Indenture (collectively, the "Bond Documents") or questioning the due organization of the City, or the powers or authority of the City to issue the Bonds and undertake the transactions contemplated hereby. (j) The execution, delivery and performance of the City's obligations under the Bond Documents do not and will not violate any order of any court or other agency of government of which the City is aware or in which the City is a party, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other • instrument. /o (k) It is desirable that the Bonds be issued by the City upon the terms set forth • in the Indenture under the provisions of which the City's interest in the Loan Agreement will be pledged to the Trustee as security for the payment of principal of, premium, if any, and interest on the Bonds. (1) Under the provisions of the Act, and as provided in the Bond Documents, the Bonds are not to be payable from nor charged upon any funds other than amounts payable pursuant to the Loan Agreement and moneys in the funds and accounts held by the Trustee which are pledged to the payment thereof; the City is not subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall not constitute a general or moral obligation of the City or a charge, lien or encumbrance, legal or equitable, upon any property of the City (other than the interest of the City in the loan repayments to be made by the Borrower under the Loan Agreement); and each Bond issued shall recite that such Bond, including interest thereon, shall not constitute or give rise to a charge against the general credit or taxing powers of the City. 5. Approval and Execution of Documents. The housing program to finance the Project, the form of Bonds and the Bond Documents are approved. The Bond Documents are authorized to be executed in the name and on behalf of the City by the Mayor and the Administrator, at such time, if any, as they may deem appropriate, or executed or attested by other officers of the City, in substantially the form on file, but with all such changes therein, not inconsistent with the Act or other law, as may be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof; and then shall be delivered to the Trustee on behalf of the Bondholders. Modifications to the forms of Mortgage and Continuing Disclosure Agreement and other collateral security documents may be made at the discretion of the parties thereto. 6. Approval, Execution and Delivery of Bonds. The City is authorized to issue the Bonds, in an aggregate principal amount of not to exceed $5,500,000, in the form and upon the terms set forth in the Indenture, which terms are for this purpose incorporated in this resolution and made a part hereof; provided, however, that the interest rates on the Bonds shall be as set forth in the final form of the Indenture, to be approved, executed and delivered by the officers of the City authorized to do so by the provisions of this Resolution, which approval shall be conclusively evidenced by such execution and delivery; and provided further that, in no event, shall such rates exceed seven percent (7%) per annum. The Underwriter has agreed pursuant to the provisions of the Bond Purchase Agreement and subject to the conditions therein set forth, to place the Bonds for sale at par. The Mayor and Administrator and other City officers are authorized to execute the Bonds as prescribed in the Indenture at such time, if any, as they may deem appropriate, and to deliver them to the Trustee, together with a certified copy of this Resolution and the other documents required by the Indenture, for authentication, registration and delivery to the Underwriter. 7. Certificates, etc. The Mayor and Administrator and other officers of the City are • authorized at such time, if any, as they may deem appropriate, to prepare and furnish to bond counsel and the Underwriter, when issued, certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. Adopted by the City Council of Falcon Heights, this 8th day of June, 2005. Susan L. Gehrz, Mayor Attest: Heather M. Worthington, City Administrator • /~ • STATE OF MINNESOTA COUNTY OF RAMSEY ) ss. CITY OF FALCON HEIGHTS 1 I, the undersigned, being the duly qualified and acting Administrator of the City of Falcon Heights, Minnesota (the "City"), do hereby certify that attached hereto is a compared, true and correct copy of a resolution giving final approval to an issuance of revenue Bonds by the City on behalf of Pines of Hutchinson, LLC, duly adopted by the City Council on June 8, 2005, at a regular meeting thereof duly called and held, as on file and of record in my office, which resolution has not been amended, modified or rescinded since the date thereof, and is in full force and effect as of the date hereof, and that the attached Extract of Minutes as to the adoption of such resolution is a true and accurate account of the proceedings taken in passage thereof. WITNESS My hand this 8t" day of June, 2005. Heather M. Worthington, City Administrator n ~3 • JOINT POWERS AGREEMENT PROVIDING FOR THE ISSUANCE OF SENIOR HOUSING REVENUE BONDS (PINES OF HUTCHINSON, LLC PROJECT) THIS AGREEMENT is entered into as of the 1st day of June, 2005, between the City of Falcon Heights, Minnesota ("Falcon Heights") and the City of Hutchinson, Minnesota ("Hutchinson") (collectively, the "Municipalities," or individually, a "Municipality"). The Municipalities are each a municipal corporation, duly organized under the laws of the State of Minnesota. RECITALS A. Minnesota Statutes, Section 471.59, as amended (the "Joint Powers Act") provides that two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units. B. Pines of Hutchinson, LLC, a Minnesota limited liability company (the "Borrower") proposes to acquire a 50-unit independent senior housing facility located at 1015 Century Avenue SW in Hutchinson, known as the Pines of Hutchinson (the "Project"). C. The Borrower has proposed that the Municipalities enter into this agreement pursuant to the Joint Powers Act, pursuant to which Falcon Heights, on behalf of itself and Hutchinson, will issue revenue bonds, in one or more series or issues (the. "Bonds") under Minnesota Statutes, Section 462C (the "Act") in an aggregate amount not to exceed $5,500,000 and loan the proceeds thereof to the Borrower to finance acquisition of the Project. D. In order to assist in the marketing of the Bonds to investors at the lowest possible yield thereby enhancing the financial feasibility of the Project, the Borrower wishes Falcon Heights to facilitate the designation of the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended (the "Code"). E. Falcon Heights has not issued during calendar year 2005 nor expects to issue during calendar year 2005 any governmental bonds or qualified 501(c)(3) bonds within the meaning of Section 265(b) of the Code or any other obligations that need to be taken into account in determining whether Falcon Heights is a "qualified small issuer" within the meaning of 265(b) of the Code in excess of $10,000,000. ly NOW THEREFORE, in consideration of the mutual undertakings and covenants set forth • below and other good and valuable consideration, the Municipalities hereby represent and agree as follows: 8. The Municipalities hereby agree to jointly finance acquisition the Project. Falcon Heights is hereby designated as the issuer of any Bonds to be issued pursuant to this Agreement. 9. Each Municipality represents to the other parties hereto that it has (i) held a public hearing with respect to the Project and (ii) has adopted a resolution authorizing execution, delivery and performance of this Agreement. 10. Falcon Heights shall exercise the powers of the Act by adopting, approving and executing such resolutions, documents, and agreements as shall be necessary or convenient to authorize, issue, and sell the Bonds and such other resolutions, documents, and agreements as shall be necessary or required in connection with the issuance of the Bonds and giving effect to or carrying out the provisions of this Agreement and documents under which the Bonds are issued and/or secured. 11. Any Bonds to be issued pursuant to this Agreement shall be special, limited obligations of Falcon Heights, payable solely from proceeds, revenues and other amounts specifically pledged thereto. In no event shall the Bonds ever be payable from or charged upon the general credit, taxing powers or any funds of any of the Municipalities; the Municipalities are not subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of any of the Municipalities to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of any of the Municipalities; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of any of the Municipalities; and the Bonds do not constitute an indebtedness of any of the Municipalities within the meaning of any constitutional, statutory, or charter limitation. 12. This Agreement shall terminate upon the retirement or defeasance of the last outstanding Bonds and this Agreement may not be terminated in advance of such retirement or defeasance. 13. This Agreement may be executed in counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. [Remainder of page intentionally left blank; signature pages follow] /S IN WITNESS WHEREOF, each of the Municipalities has caused this Agreement to be executed on its behalf by its duly authorized officers, all as of the day and year first above written. CITY OF FALCON HEIGHTS, MINNESOTA By Susan L. Gehrz, Mayor By Heather M. Worthington, City Administrator • • CITY OF HUTCHINSON, MINNESOTA By Its Mayor By Its Administrator /~ FALCON HEIGHTS, MINNESOTA • PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City of Falcon Heights, Minnesota (the "Issuer") is authorized to develop and administer programs to finance the acquisition and construction of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Section 46X.07 of the Act provides that such programs for multifamily housing developments may be financed through the issuance of revenue obligations payable exclusively from the revenues of the program or developments. Pursuant to Minnesota Statutes, Section 471.656 and Section 471.59, as amended, the Issuer will enter into a Joint Powers Agreement with the City of Hutchinson ("Hutchinson") in order to preserve "bank qualification" and to provide for the Issuer to issue the Bonds, as hereinafter defined. The Issuer received a proposal from Maplewood Senior Housing, Inc. ("Maplewood"), a Minnesota nonprofit corporation and atax-exempt 501(c)(3) organization, that the Issuer approve a program providing for the design, construction, and equipping of a 50-unit independent senior housing facility (the "Project") located on a 2.53 acre project site at 1015 Century Avenue SW, on the southern edge of Hutchinson. The Project is to be owned by the Pines of Hutchinson, LLC, a Minnesota limited liability company (the "Owner") of which Maplewood is the sole member, and operated by Ecumen Services, Inc., awholly-owned management company of Ecumen, a Minnesota nonprofit corporation. The management contract shall conform to the management contract rules of the Internal Revenue Service as a "conforming" management contract. The design, construction, and equipping of the Project • is to be funded through the issuance of one or more series of up to $5,350,000 in aggregate principal amount of revenue notes, bonds or obligations (the "Bonds"), to be issued by the Issuer, pursuant to the terms of a Loan Agreement between the Issuer and Owner. The Project will be operated as a multifamily residential senior housing rental project. The units in the Project are designed for rental primarily to elderly or handicapped persons. The site is located adjacent to a 42 unit assisted living facility (The Oaks of Hutchinson) owned by Second Century Housing and managed by Ecumen Services, Inc. The Project will consist of a contiguous two-story building. It is slab on grade and contains approximately 51,550 gross square feet of interior area. The building is a wood frame structure with vinyl siding and an asphalt single roof. The facility contains 50 units in the following configuration: Unit Description Number of Units Square Feet/Unit One Bedroom 10 510 One Bedroom-Handicapped Accessible 2 510 One Bedroom-No PatioBalcony 8 ~ 640 One Bedroom-Balcony 8 640 One Bedroom-Patio 8 640 One Bedroom-Den 4 980 Two Bedroom-No PatioBalcony 4 851 Two Bedroom-Patio 2 851 Two Bedroom-Balcony 2 851 Two Bedroom 2 900 • -1- l~ All units have fully equipped kitchens, telephone and computer hook ups, and an urgency • response system connecting to on site health care professionals. The facility also includes one 8- space garage, a congregate dining room, a commercial kitchen facility, 2 laundry facilities, 4 common areas including a sun room, a media room and library, a chapel (not financed by the Bonds), a coffee shop, abarber/beauty shop, 2 executive offices, and an entry foyer with grand staircase serving the second level (along with a central elevator system). Monthly rents range between $1,350-$1,750 depending on the floor plan of the unit. Included in the rent is 24 hour staffing, weekly housekeeping and laundry/linen services, and a daily meal. Additional a la carte meal services are available. In addition, health related services including visits with an on site Registered Nurse, are available for an extra fee. The Project will be designed, constructed and equipped in accordance with the requirements of Subdivisions 1 and 4 of Section 46X.05 of the Act. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes, Chapter 462C, as currently in effect and as the same may be from time to time amended. "Bonds" shall mean the revenue bonds to be issued by the Issuer to finance the Program. "Code" shall mean the Internal Revenue Code of 1986, as amended. • "Housing Unit" shall mean any one of the apartment units, each located in the Project, occupied by one person or family, and containing complete living facilities. "Issuer" shall mean the City of Falcon Heights. "Land" shall mean the real property upon which the Project is situated. "Maplewood" shall mean Maplewood Senior Housing, Inc. ("Maplewood"), a Minnesota nonprofit corporation and atax-exempt 501(c)(3) organization "Owner" shall mean the Pines of Hutchinson, LLC, a Minnesota limited liability company of which Maplewood is the sole member, and its affiliates and assigns. "Program" shall mean this program for the financing of the Project pursuant to the Act. "Project" shall mean the multifamily senior residential rental housing development consisting of fifty (50) total Housing Units, of which ten (1) are standard one-bedroom units, two (2) are handicapped accessible one-bedroom units, eight (8) are no patio balcony one-bedroom units, eight (8) are balcony one-bedroom units, eight (8) are patio one-bedroom units, four (4) are den one-bedroom units, four (4) are no patio balcony two-bedroom units, two (2) are patio two-bedroom units, two (2) are balcony two- bedroom units, and two (2) are standard two-bedroom units, to be designed, constructed and equipped by the Owner, together with functionally related facilities. Section B. Program For Financing the Project. It is proposed that the Issuer establish this • Program to provide financing for the design, construction and equipping of the Project at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between The -2- i~ns6~~i q ~0 Issuer and the Owner. The Issuer expects to issue the Bonds as soon as the terms of the Bonds have been • agreed upon by The Issuer, the Owner, and the initial purchaser(s) of the Bonds. The proceeds of the Bonds will be loaned by The Issuer to the Owner to finance the design, construction, and equipping of the Project, and such proceeds are also to be applied to any of the following purposes: (i) fund debt service reserve funds or other reserves for the Bonds; (ii) fund interest on the Bonds during construction of the Project; and (iii) pay a portion of the costs of issuance with respect to the Bonds. It is anticipated that the Bonds will be sold simultaneously in two separate series as follows: (1) Series 2005A - $5,300,000 Tax-Exempt; and (2) Series 2005B - $ 200,000 Taxable. The Bonds will be sold on a negotiated sale basis to the retail and institutional marketplace. The Series A Bonds shall have a 30 year stated final maturity and shall amortize over a 27 year period. The Series B Bonds shall have a 3 year final maturity, amortize over a 2 year period, and shall have a fixed rate of interest for the term. While the final interest rate on the Bonds is subject to market conditions at the time of Bonds pricing, it is estimated that the interest rate on the Bonds in today's market would be as follows: Average,_Coupon Series A 5.89% -Fixed for 30 years Series B 6.00% -Fixed for 3 years The Issuer will not hire additional staff for the administration of the Program. No administrative costs will be paid from The Issuer's budget with respect to this Program. The Bonds will be special, limited revenue obligations of The Issuer and the Bonds and interest thereon will be payable solely from the revenues and assets pledged to the payment thereof. No Holder of any Bonds will ever have the right • to compel any exercise of the taxing power of The Issuer to pay the Bonds or the interest thereon, nor to enforce payment against any property of The Issuer (except revenues of the Borrower) to be paid to The Issuer and pledged to the payment of the Bonds. Section C. Standards and Requirements Relating to the Financing of the Project Pursuant to the Pry. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be applied to (i) the design, construction, and equipping of the Project, (ii) the payment of the costs of issuing the Bonds, (iii) the payment of interest on the Bonds during construction of the Project, and (iv) the funding of appropriate reserves. The proceeds will be made available to the Owner pursuant to the terms of a Loan Agreement or other revenue agreement, which will include certain covenants to be made by the Owner to The Issuer regarding the use of proceeds and the character and use of the Project. (2) The Owner, and any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, affectional preference, marital status, or status with regard to public assistance or disability. (3) The Project is designed primarily for rental to elderly persons. Thus, Section 46X.05, Subdivision 4 of the Act provides that the limitations set forth in Section 46X.05, Subdivision 2 of the Act are not applicable. • Subsection D. Evidence of Compliance. The Issuer may require from the Owner at or before the issuance of the Bonds, evidence satisfactory to The Issuer of the ability and intention of the Owner to 1771867v1 -3- /9 complete the design, construction, and equipping of the Project, and evidence satisfactory to The Issuer of • compliance with the standards and requirements for the completion of the financing established by The Issuer, as set forth herein; and in connection therewith, The Issuer or its representatives may inspect the relevant books and records of the Owner in order to confirm such ability, intention, and compliance. In addition, The Issuer may periodically require certifications from either the Owner or such other person deemed necessary concerning compliance with various aspects of this Program. Section E. Issuance of Bonds. To finance the Program authorized by this Section The Issuer may by resolution approve the issuance and sale of the Bonds by The Issuer. The Bonds shall be issued pursuant to Section 46X.07, subdivision 1, of the Act, and shall be payable primarily from the revenues to be derived by the Owner from the Project financed through this Program. Total costs of the Project are expected to not exceed $5,500,000. The costs of the Project may change between the date of preparation of this Program and the date of issuance of the Bonds. The Bonds are expected to be issued within one year following the adoption of this Program. Subsection F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of The Issuer or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Subsection G. Amendment. The Issuer shall not amend this Program, while the Bonds authorized hereby are outstanding, to the detriment of the holders of such Bonds. • Subsection H. State Ceiling. None of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended, and Chapter 474A of Minnesota Statutes, will be applied for with respect to the Bonds. Adopted: May _, 2005. -4- ~~ • Section 4.03 Additional Payments. The Borrower also agrees: (a) To pay to the Trustee, promptly after being billed, until the principal of, premium, if any, and the interest on the Bonds shall have been fully paid or provision for the payment thereof shall have been made in accordance with the provisions of the Indenture (i) all Ordinary Trustee Fees and Expenses and (ii) the reasonable fees and charges of the Trustee for necessary extraordinary services rendered by the Trustee and extraordinary expenses incurred by the Trustee under the Indenture, as and when the same become due; provided, that the Borrower may, without creating a default hereunder, reasonably contest in good faith the necessity for any such extraordinary services and extraordinary expenses and the reasonableness of any such fees, charges or expenses; (b) To pay to the Issuer any Issuer fees and to hold the Issuer and ~a.~~v~~yl~~ harmless from all liabilities, costs and other expenses (including attorney's fees) of the Issuer suffered, incurred or paid at any time in connection with any actions, transactions or other matters contemplated by or taken pursuant (or relating in any manner whatsoever) to the Bonds, the Indenture, the Mortgages, this Loan Agreement, the Tax Exemption Agreement or any of the other documents executed or delivered in connection with the issuance of or otherwise related to the Bonds, including without limitation any audit (regular or random) by the Internal Revenue Service, rebate calculations or rebate analysis required to comply with the Code or requests of the Internal Revenue Service, official statements, placement memoranda or other offering materials, or as may arise in connection with any of the foregoing; (c) Subject to the provisions of Section 5.04 of this Loan Agreement, to each public or private person, firm or corporation furnishing utility service or constructing or extending facilities for the furnishing of such service for the Projects, when due and payable during the Term, all reasonable fees, charges and rentals for such service and facilities; and • (d) To pay the Issuer the fees and expenses that the Issuer requires for the issuance of bonds as a conduit issuer of any tax exempt bonds. The fee of the Issuer for the issuance of the Series 2005 Bonds shall be $25,000 which shall be payable by the Borrower on the Date of Issuance. Section 4.04 No Set-Off: Borrower's Obligations Unconditional. The obligation of the Borrower to make the payments required hereby shall be absolute and unconditional. Subject to the preceding sentence, until such time as the principal of, premium, if any, and interest on the Bonds shall have been fully paid or provision for the payment thereof shall have been made in accordance with the Indenture, the Borrower (i) will perform and observe all of its agreements contained in this Loan Agreement, and (ii) will pay without abatement, diminution or deduction (whether for taxes or otherwise) all amounts required to be paid hereunder, regardless of any cause or circumstance whatsoever including, without limiting the generality of the foregoing: any defense, set-off, recoupment or counterclaim which the $orrower may have or assert against the Issuer, the Trustee, any Holder of a Bond or any other person; any failure of the Issuer to perform any covenant or agreement between the Issuer and the Borrower; any indebtedness or liability at any time owing to the Borrower by the Issuer, the Trustee, any Holder of a Bond or any other person; any acts or circumstances that may constitute failure of consideration; damage to or condemnation of the Projects; failure or delay in acquisition of the Project; eviction by paramount title; commercial frustration of purpose; bankruptcy or insolvency of the Issuer or the Trustee; any change in the tax or other laws of the United States of America or of the State or any political subdivision of either; foreclosure of the Mortgage; or any failure in the performance and observance any agreement, whether express or implied, or any duty, liability or obligation, arising out of or connected with this Loan Agreement, the Tax Exemption Agreement, the Mortgages, or the Indenture. 1752562v4 1 5 ~I r~ • ITEM: Disbursements and Payroll SUBMITTED BY: Roland O. Olson, Finance Director REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary 1. General Disbursements through June 2, 2005: 2. Payroll (5/15/OS - 5/30/05) ATTACHMENTS: • General Disbursements n pages ~3'"0~ • Payroll on page _~'~ ACTION REQUESTED: • Approval CONSENT G1 6/8/05 $ 35,544.15 $ 14,908.67 ~a DATE 06/02/05 TIME 01:14 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 1 APPROVAL OF BILLS PERIOD ENDING: 6-2-OS ~CK# VENDOR NAME DESCRIPTION DEPT. AMOUNT ------------------------- ------------------------ -------- ----------- HOAG, GREG WORKSHOP MEETING EXPS LEGISLAT 7.38 RCLLG RCLLG MEMBERSHIP LEGISLAT 265.30 LILLIE SUBURBAN NEWSPAPER FIRE TRK BID NOTICE LEGISLAT 21.92 *** TOTAL FOR DEPT 11 294 .60 ACTION IMPRINTS CLOTHING WITH CITY LOGO ADMINIST 111.38 AMERICAN OFFICE PRODUCTS INDEX CARDS/FOLDERS/OTHE ADMINIST 62.11 AMERICAN OFFICE PRODUCTS TONER/LEGAL PADS/SCISSOR ADMINIST 235.75 AMERICAN OFFICE PRODUCTS 3 HOLE PUNCH/PENCILS ADMINIST 27.38 AMERICAN OFFICE PRODUCTS INK CARTRIDGES/NOTEBOOK ADMINIST 86.50 HOAG, GREG OSHA TNG MEETING EXPS ADMINIST 14.57 60731 PERA PERA WITHHOLDINGS 5-31 ADMZNIST 1,671.41 COORDINATED BUS. SYSTEMS, STAPLES FOR COPY MACHINE ADMINIST 63.37 *** TOTAL FOR DEPT 12 2,272, 47 GFOA CAFR APPLICATION FEE FINANCE 350.00 KERN, DEWENTER, VIERE LTD BAL AUDIT FEES YEAR 2004 FINANCE 3,000.00 *** TOTAL FOR DEPT 13 3,350.00 MUNICIPAL CODE CORPORATIO ZONING CODE UPDATE LEGAL 2,205.00 *** TOTAL FOR DEPT 14 2,205 .00 MAUREEN ANDERSON REIMB:VIDEOTAPES COMMUNIC 21.30 CITY OF ROSEVILLE IT SUPPORT MAY/OS COMMUNIC 725.00 CITY OF ROSEVILLE VOICE MAIL/PRI ACCESS/LO COMMUNIC 882.62 • *** TOTAL FOR DEPT 16 1,628. 92 CITY OF LITTLE CANADA 1ST QTR BLDG INSPECTOR PLANNING 5,709.12 MN NCPERS LIFE INSURANCE LIFE INSURANCE- JONES PLANNING 16.00 *** TOTAL FOR DEPT 17 5,725. 12 MINNESOTA CONWAY RECHRG FIRE EXTINGUISHER EMERGENC 95.00 MINNESOTA CONWAY RECHRG FIRE EXTINGUISHER EMERGENC 35.00 XCEL ENERGY FIRE/CIVIL DEFENSE SIREN EMERGENC 5.22 *** TOTAL FOR DEPT 21 135. 22 AMERIPRIDE LINEN&APPAREL LINEN CLEANING FIRE FIG 59.55 BEARCOM BATTERIES FOR RADIOS FIRE FIG 53.50 ANOKA-HENNEPIN TECH COLLE EMT TEST FOR GRIFFITH FIRE FIG 75.00 NEXTEL COMMUNICATIONS,INC CELL PHONE FIRE DEPT FIRE FIG 95.35 *** TOTAL FOR DEPT 24 263. 40 HOAG, GREG TOILET PAPER /TOWELS CITY HAL 58.55 HOAG, GREG MAY OS MILEAGE REIMB CITY HAL 70.07 BOARD OF WATER COMMISSNRS H2O CITY HAL 9.73 BOARD OF WATER COMMISSNRS S.S. CITY HAL 11.69 TRUGREEN-CHEMLAWN WEED CONTROL CITY HALL CITY HAL 113.96 CINTAS CORPORATION #470 RUG SVC CITY HAL 78.63 INTEREUM MODULAR OFFICE FURNITURE CITY HAL 406.40 *** TOTAL FOR DEPT 31 749. 03 GRAINGER, W. W., INC. 2005 TRUCK BACKUP ALARM STREETS 53.06 CINDERS GARDEN CENTER FLOWERS STREETS 154.08 ~3 DATE 06/02/05 TIME 01:14 CITY OF FALCON HEIGH COUNCIL REPORT PAGE 2 APPROVAL OF BILLS PERIOD ENDING: 6-2-OS ~K# VENDOR NAME DESCRIPTION DEPT. AMOUNT -------- ------------------------- ------------------------ -------- ----------- CINDERS GARDEN CENTER FLOWERS STREETS 457.26 MUSKA ELECTRIC REPR LIGHTS:LARP&CITYLOT STREETS 1,186.41 *** TOTAL FOR DEPT 32 1,850.81 S & S TREE SPECIALISTS IN TREE TRIMMING-HOLLYWOOD TREE PRO 1,500.00 *** TOTAL FOR DEPT 34 1,500.00 ACTION IMPRINTS PUBLIC WORKS CLOTHING PARK & R 35.22 AMERICAN OFFICE PRODUCTS LETTER TRAY/OTHERSUPPLIE PARK & R 10.91 BOARD OF WATER COMMISSNRS H2O PARK & R 20.66 BOARD OF WATER COMMISSNRS S.S. PARK & R 23.38 TRUGREEN-CHEMLAWN WEED CONTROL PARKS PARK & R 190.64 CITY OF ST PAUL PARKS FUEL PARK & R 218.77 LANDS'END BUSINESS OUTFIT PW CLOTHING PARK & R 75.00 XCEL ENERGY AUTO PROTECTIVE LIGHTING PARK & R 23.03 QWEST TELEPHONE EXPENSE PARK & R 110.84 *** TOTAL FOR DEPT 41 708.47 AMERICAN OFFICE PRODUCTS FILE CABINET PARK PRO 183.71 AMERICAN OFFICE PRODUCTS STAPLER/OFFICE SUPPLIES PARK PRO 40.28 *** TOTAL FOR DEPT 50 223.99 CITY OF ROSEVILLE 2 LCD MONITORS GENERAL 639.00 *** TOTAL FOR DEPT 63 639.00 • TRUCK UTILITIE S MFG CO. BOX FOR F350 FORD TRUCK PUBLIC W 13, 887.60 *** TOTAL FOR DEPT 65 13,887.60 GRAINGER, W. W., INC. SANITARY SEWER SUPPLIES SANITARY 90.52 *** TOTAL FOR DEPT 75 90.52 *** TOTAL FOR BANK O1 35,544.15 *** GRAND TOTAL *** 35,544.15 ~4 PERIOD END DATE 05/31/05 **FILE NOT UPDATED** SYSTEM DATE 05/27/05 C H E C K R E G I S T E R CHECK CHECK EMPLOYEE NAME • TYPE DATE NUMBER PAGE 1 CHECK CHECK NUMBER AMOUNT 5 27 O5 6 SUSAN GEHRZ 50589 5.57 5 27 OS 12 LAURA A. KUETTEL 50590 277.05 5 27 OS 13 PETER C. LINDSTROM 50591 277.05 5 27 OS 14 RICHARD P TALBOT JR 50592 7.05 5 27 OS 15 ROBERT E LAMB 50593 277.05 5 27 OS 34 CLEMENT KURHAJETZ 50594 288.54 5 27 OS 42 MICHAEL D CLARKIN 50595 108.52 5 27 OS 66 ALFRED HERNANDEZ 50596 55.41 5 27 OS 74 MARK J ALLEN 50597 138.52 5 27 OS 85 DANIEL S JOHNSON-POWERS 50598 54.64 5 27 OS 91 RICHARD H HINRICHS 50599 38.64 5 27 OS 1003 HEATHER WORTHINGTON 50604 1655.17 5 27 O5 1007 PATRICIA PHILLIPS 50605 489.85 5 27 OS 1015 GREGORY R. HOAG 50606 1690.60 5 27 OS 1016 LISA A. ANDERSON 50607 984.27 5 27 OS 1030 MARY A. KODLUBOY 50608 1402.45 5 27 O5 1033 DAVE TRETSVEN 50609 1218.52 5 27 OS 1035 JOSEPH J. AUGER SR 50610 291.27 5 27 OS 1038 DEBORAH K JONES 50611 1215.08 5 27 OS 1136 ROLAND O OLSON 50612 1535.62 5 27 OS 1137 MARK C. HANSMEIER 50613 326.57 5 27 OS 1140 ROBERT M PILGRIM 50614 189.09 5 27 OS 1143 COLIN B CALLAHAN 50615 995.60 5 27 OS 1178 PETER M FISCHER 50616 678.20 5 27 OS 2067 ALEXANDER A. CISNEROS 50617 438.67 5 27 OS 2071 ERIC M. FLAHAVE 50618 269.67 COMPUTER CHECKS 14908.67 MAN[JAL CHECKS .00 NOTICES OF DEPOSIT .00 ****TOTALS**** 14908.67 CONSENT G2 06/08/05 ITEM: Appointment of Beth Mercer-Taylor, 2231 Folwell Avenue, to the Planning Commission SUBMITTED BY: Mayor Sue Gehrz EXPLANATION: Summary: I am recommending the appointment of Beth Mercer-Taylor to the Planning Commission. ATTACHMENT: • Beth Mercer-Taylor's application on pages ~' D ACTION REQUESTED: • Appointment of Beth Mercer-Taylor to the Planning Commission • ~6 HOME LATEST NEWS GOVERNMENT COMMUNITY RESOURCES POLICE & FIRE PARKS & RECREATION BUILDING PERMITS RECYCLING & TRASH STREETS 8e UTILITIES EVENTS PHOTO GALLERIES INFORMATION GUIDE CONTACT CITY HALL a~ ~ 2 ~~~i~-~ G~1~f~ ,~ City of Falcon Heic,~hts > Government > Cgmmis~ions > Application for Commissioner Position Note: This page is not an active form; applications are not accepted on line. To apply, you must send a written application. Print this page or download the PDF version(Adobe® Acrobats required) of this page to print . CITY OF FALCON HEIGHTS C4 M M ISSIO N APPLICATION ~ _1. DATE: a2,9 J '~"~ !O~^ ~ r' ~ G~1 NAME: - ADDRESS: Z Z 3 l G ~ . ~N ,r~ . y~ ~' PHONE: (H) ~"~ `! iy~iZr9v~.'.~(V1/) ~Sl ~ ~ HOW LONG AT ABOVE ADDRESS? ~ IN WHAT CAPACITY DO YOU WISH TO SERVE? ~~L~kr'lr+~-~1 C~/N~I~l3,j~ ~"~/" ~ 1r REASON YOU WISH TO SERVE ON ABOVE: Y`.~t-P.r/~ ?~,~«~P~-~2 bcL~/"ava,~ : r`~ ~~~' ire ,~e1Vil~-g, r`~ ~a' cad .Gi ~~e1~~e~~' /f/i~G M f/~~UC rt//f~r~ Gti! Gi c _C~tra U?i~'4/; Gt.h.GQ De ~ l~n%~~- w~f % f .3 ~i;!(~ ~o ~ /~ ~"~'~ PRIOR PUBLIC (OR RELATED) SERVICE: 2 i~Z 4Yu/S .~ lltr3~l~C2.. GZS D+Jb~Z- ~ /~ ! /~ A v ~i si N r~ R f,~)n/A/ '~ ~~1//~ SP~t' /S~IY D/'f/1iI!/~.ei c: ~O taO_/~1~I.tA_1J/~ ~C~/1.1T l~ OTHER RELEVANT BACKGROUND (OR COMMENTS): ~ ]~ ©2003 City of Falcon Heights ~.,'k~ L~lil Iti+ h~ oc ~ ~/r- ~'L~~ ~(/`2»I S/~~t /~ C- i~. a ~ ~ J~ ~~ 15' y~l ,e~c~~e vLcz. as j~~ ~~-~-- p Iti K ~.~ f i7T' lie ( r' ~' ~~~ r' J ~, 'Cl.~... f3~ httn://www.ci:falcon-heil?hts.mn.us/City-Meetin>?s/commann.html 4/29/2005 Falcon Heights Council and Commission Application Page 1 of 1 C.CiI~/ ~. `S C~~sr ~l,~,h era ~,~' ~ i~/~ .S'c Uv~ ~~~ u ;Sze f d ~ ~~,o/Z ~~' /~ ~~ ~~~~ d~ ~,~h~lasz, ~?~ ~ ~ ~? ul~ /~ ~i G7 ~~ vl ~G~-e_ .~~C~C~..si L-2 (/~ `vrt a42~' a~ C.A~~ U,~it ~ ~ ~~~'~C~c~ r • ~8 CONSENT G3 • 06/08/05 ITEM: Appointment of firefighters SUBMITTED BY: Chief Clem Kurhajetz REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary: The Fire Department wishes to appoint, on a probationary basis, the following firefighters, subject to an employment physical and background check: • Chris Leske • Abraham Kozemi • Abraham Kao ACTION REQUESTED: • Appointment of the above probationary firefighters to the Falcon Heights Fire Department, subject to employment physicals and background checks • ~9 POLICY Hl • 6/8/05 ITEM: Consideration of Resolution 2005-08 approving the bid for one triple combination pumper apparatus to be built on a 1,250 gallon per minute Fire Department Pumper with Sterling Acterra 2-door chassis cab, Full Response crew cab, Waterous fire pump system, and stainless steel body per City specifications issued March 9, 2005 SUBMITTED BY: Clem Kurhajetz, Fire Chief, Falcon Heights Fire Department FHFD Truck Committee REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary: The Council is being asked to approve Resolution 2005-08 awarding the low bid to Custom Fire Apparatus Inc., for a new fire pumper, for a total cost of $283,980. The City received only one bid for this fire apparatus. Goal 1: To protect the public health and safety Strategy 1: Provide public safety services to citizens • Background Information: The 2005 Capital Improvement Budget allocated $285,000 for the purchase of a new fire pumper. This truck will replace the 1978 LaFrance pumper, which has had transmission and pump problems over the past two years. Custom Fire Apparatus Inc. expects to deliver the new truck within 180-200 days of the City signing a contract with them for the purchase. Staff also requests that the Council authorize the $58,000 progress payment to the Osceola, Wisconsin factory for delivery of the truck chassis at this time. ATTACHMENTS: • Bid from Custom Fire Apparatus, Inc. on page ~_ • Resolution 2005-08 awarding bid to Custom Fire Apparatus Inc., on page • Motor vehicle purchase contract, and warranty information on pages ACTION REQUESTED: • Approve Resolution 2005-08 awarding the bid to Custom Fire Apparatus Inc. for one 1,250 gallon per minute Fire Department Pumper with Sterling Acterra 2-door chassis cab, Full Response crew cab, Waterous fire pump system, and stainless steel body per specifications issued by the City on March 9, 2005, for $283,980 3~ CUSTOM FIRE APPARATUS.INC. 509 68th Avenue Osceola, Wisconsin 54020-4044 USA • To: The Falcon Height Fire Department Falcon Heights, Minnesota Phone 715 294 2555 Fax 715 294 2168 May 27, 2005 SALES PROPOSAL Dear Sirs: We hereby propose and agree to furnish, after your acceptance of this proposal and the signing of a contract, the following Apparatus and Equipment: "One (1) 1250 gallon per minute Fire Department Pumper with Sterling Acterra 2-door chassis cab, Full Response® crew cab, Waterous Bre pump system, and stainless steel body. " All of which are to be manufactured in accordance with the Proposal specifications provided, and will be made part of the necessary contracts. PROPOSAL PRICE The above offered is made for the sum of: USD $283,980.00 TWO HUNDRED EIGHTY-THREE THOUSAND NINE HUNDRED EIGHTY and NO/100 Dollars. FOB Falcon Heights, Minnesota PROPOSAL VALIDITY 30 Calendar Days DELIVERY SCHEDULE Delivery in 180 - 200 Calendar Days after receipt of signed contract. SALES TERMS A Progress Payment in the amount of $58,000.00 is due upon shipment of the truck chassis to the Osceola, Wisconsin factory. Balance of payment is due on delivery and acceptance of apparatus and equipment. You may pre-pay any undue portion of the contract and receive .5% simple interest per each full calendar month (6.0% per annum). Respectfully Submitted, CUSTOM F~RF APPARATUS, INC. James M. 31 • No: 2005-08 CITY OF FALCON HEIGHTS COUNCIL RESOLUTION Date: June 8, 2005 RESOLUTION AWARDING THE BID FOR A NEW FIRE DEPARTMENT PUMPER WHEREAS, the City of Falcon Heights is interested in preserving the public safety through the use of appropriate fire equipment; WHEREAS, the City allocated capital funds for the replacement of the 1978 pumper truck in 2005; WHEREAS, Custom Fire Apparatus, Inc., is the low bid received at $283,980; NOW, THEREFORE, BE IT RESOLVED that the City Council of Falcon Heights awards . the bid supplying one fire pumper, per specifications issued by the City on March 9, 2005, to Custom Fire Apparatus, Inc., for $283,980. Moved by: Approved by: Susan L. Gehrz, Mayor June 8, 2005 Gehrz In Favor Attested by: Kuettel Heather M. Worthington Lamb City Administrator Lindstrom June 8, 2005 Talbot Against 3~ _' l~ullt F®a' Life Custom MOTOR VEHICLE PURCHASE CONTRACT THIS AGREEMENT, Made by and between CUSTOM FIItE APPARATUS, INC. of Osceola, Wisconsin, Party of the First Part, and: Party of the Second Part, hereinafter called the BUYER. WITNESSETH, That CUSTOM FIRE APPARATUS, INC. Agrees to sell, upon the conditions which are below written, the apparatus and equipment herein before described, all of which are to be in accordance with the specifications and warrantees submitted by CUSTOM FIRE APPARATUS, INC. and which are made a part of this agreement and Contract. The BUYER agrees to purchase and pay for the aforesaid property delivered as aforesaid, the Sum of: DOLLARS, ($ 1. TERMS OF PAYMENT: Progress Payment of $ is due upon delivery of truck chassis to the Osceola factory, Net Cash on Delivery. You may pre-pay any additional undue portion of this contract amount and receive . % simple interest per each full calendar month until such date as funds become due. ( % per annum.) GUARANTY: The BUYER hereby guarantees that the funds will be ready and available for transfer in the form of legal tender, a negotiable check or direct bank wire transfer on or prior to the day of delivery. And it is further mutually agreed that no misunderstanding, verbal or written, regarding equipment or otherwise, shall enjoin CUSTOM FIRE APPARATUS, INC. unless in this contract. DELIVERY: Is to be made to; F.O.B. within working/calendar days following receipt and approval of this Contract duly executed, subject to all causes beyond our control, or as soon thereafter as is consistent with good workmanship and proper finishing, and providing the delivery of the truck chassis has been made to our factory in Osceola, Wisconsin. LIABII.ITY: Physical damage to the truck or chassis will be the responsibility of CUSTOM FIRE APPARATUS, INC. on a primary basis, regardless of what other insurance is available, as long as the vehicle is in the care, custody and control of same. Any cornponentry furnished by the BUYER, including the truck chassis, will be insured for its purchase price, by and when in the possession of CUSTOM FIRE APPARATUS, INC. Upon arrival of delivery engineer with the apparatus, or upon delivery and acceptance of the same at the factory in Osceola, Wisconsin, Party of the Second Part (BUYER) does agree to provide all insurance to hold both parties harmless and free from any loss. WITNESS our hands and official seal this day of CUSTOM FIRE APPARATUS, INC. (Party of the Second Part) By: James M. Kirvida President of Custom Fire Apparatus, Inc. WARRANTY: As a condition of the acceptance of the apparatus, Custom Fire Apparatus, Inc. furnishes the following Warranty: We warrant each new piece of Fire and Rescue Apparatus to be free from defects in material and workmanship under normal use and service. Our obligation under this warranty is limited to repair or replacing, as the Company may elect, any part or parts thereof which are fabricated by Custom Fire Apparatus, Inc., returned to us with transportation charges prepaid and as to which examination shall disclose to the Company's satisfaction to have been defective, provided that such part or parts thereof shall be returned to us not later than one year after delivery of such vehicle. Such defective part or parts will be returned or replaced free of charge and, when re-installed in our factory service center, WITHOUT CHARGE FOR RE INSTALLATION, to the original purchaser. Accessories/components warranted by their original manufacturer may be subject to re-installation charges under the terms of their respective warranties. The water tank (Booster Tank) is to carry United Plastics Products unlimited Lifetime Warranty against any leaks or destruction due to cracks or corrosion caused by normal use • of the same. UPF will repair or replace, as they may elect, the tank and/or its components. This warranty will not apply: 1. To normal maintenance services or adjustments. 2. To any vehicle which shall have been repaired or altered outside of our factory in any way so as in our judgment, to affect its stability, nor which has been subject to misuse, negligence, or accident, nor to any vehicle made by us which shall have been operated at a speed exceeding the factory rated speed, or loaded beyond the factory rated load capacity. 3. To commercial chassis and associated equipment furnished with chassis, signaling devices, generators, batteries, or other trade accessories in as much as they are usually warranted separately by their respective manufacturers. This warranty is in lieu of all other warranties, expressed or implied all other representation to the original purchaser and all other obligations or liabilities, including liabilities for incidental or consequential damage on the part of the Company. Without limiting the foregoing, any express or implied warranties of merchantability or fitness for a particular purpose or warranties arising by Customer usage or by operation by law with regard to any products delivered pursuant hereto are expressly disclaimed. We neither assume any other warranty or liability on the Company's behalf unless made or assumed in writing by the Company. SEAL F:\FO RM S\ W ARRANTY\NE W UPF. 3~1 ,;~",=~, ~~ F Custom-~ ~~. ~~. __ CUSTOM FIRE APPARATUS. INC. 509 68th Avenue Osceola, Wisconsin 54020-4044 USA Phone 715 294 2555 Fax 715 294 2168 FIFTEEN YEAR FABRICATED ALL-BOLTED BODY STRUCTURAL WARRANTY Subject to the provisions, limitations, and conditions set forth in this warran Inc. hereby warrants to each original purchaser only that each new Foreman fire apparatus bodypstainless steel fabrications (exclusive of paint finish, hardwaze, moldings, windows, internal cabinets electrical components, fixtures and other accouterments and accessories*) is structurally sound and will retain it structural integrity for a minimum of [fifteen (1 S)J yeazs. [Surface corrosion or oxidation on any exposed body or underbody surface including bubbling or blistering of paint is not covered under this warranty. Failure to correct surface corrosion that then leads to covered damage will also not be covered. Body Damage that occurs when normal wear and tear to hinges, latches, or other fasteners results damage to doors or body panels, is not covered. It is the responsibility of the purchaser to maintain fzt and alignment of doors and latches. J This warrants, terminates upon transfer of possession or ownership by original purchaser. U This warranty is conditioned upon normal use and reasonable maintenance of such fire apparatus body; prompt written notice of all defects to factory; no repair or additions thereto except by factory or authorized by it; said defect not resulting from misuse, negligence, accident, remount, overloading beyond applicable weight rating by Customer or third parties. If any of such conditions are not complied with, this warranty shall become void and unenforceable. Should repairs become necessary under the terms of this warranty, the extent of that repair shall be determined solely by factory authorization and shall be performed solely at C~rstom Fire Appazatus, Inc. or a repair facility designated by the factory. Expenses for any h'ansportation to or from such repair facility [shall be the responsibility) of the purchaser and [are not) covered by this warranty, Custom Fire Apparatus, Inc. reserves the unrestricted right at any time and from time to time to make changes in the design and/or improvements on its products without thereby imposing any obligation on itself to make corresponding changes or improvements in or on its products previously manufactured. EXCLUSIONSAND LIMITATIONS.• This manufacturer's warranty rs provided in place of any and all other representations or implied warranties. No person is authorized to make any representations or warranty on behalf of Custom Fire Apparatus, Inc. or any of its representatives other than set forth in this manufacturer's warranty. Without limiting the foregoing, any express or implied warranties of merchantability or fitness for a particular purpose or warranties arising by Customer usage or by operation by law with regard to any products delivered pursuant hereto are expressly disclaimed. Your right to service and replacement of parts on the terms expressly set forth herein are your exclusive remedies and neither the manufacturer not any of its distributors shall be liable for damage, whether ordinary, incidental or consequential. * Covered by their own respective warranties Serial No. Date of Delivery: Authorization: F:\FORMSIFORMS\ W pRRppITY1FOREMAN. I S Y 3~ C I . 509 68th Avenue Osceola, Wisconsin 54020-4044 USA Phone 715 294 2555 Fax 715 294 2168 5-YEAR APPARATUS PAINT WARRANTY The FIVE (5) year paint performance guarantee will cover the areas of the vehicle as are originally finished by the apparatus body builder with the specified product for a period of FIVE (5) years beginning the day the vehicle is delivered to the purchaser. The areas as outlined on the Guarantee Certificate, will be covered for the following paint failures: GUARANTEE INCLUSIONS: FULL APPARATUS BODY: • * Peeling or delamination of the topcoat and/or other layers of paint. * Cracking or checking * Loss of gloss caused by cracking, checking, or hazing. * Any paint failure caused by defective finishes which are covered by this guarantee. All guarantee exclusions, limitations, and methods of claims are covered in the full certificate provided to the original owner. The warranty on the chassis paint is limited to the warranty of the chassis manufacturer thereof and adjustments for the same are to be made directly with the chassis manufacturer by the Purchaser. The 5cotchlite reflective tape will be warranted for a period not less than 5- years also. • 3(~ DEC-05-2002 12 00 tREIG~~vtri® - CORPORATION • • A DalmlerCruYsler ComPanY BOYER TRUCK 5. ST PRUL 6514509082 P. 02 New Vehicle Coverage STERLING ' STERLING L7500/L8500 SERIES, ACTERRA, AND CARGO ., S„r~,~es,,,whizE.~,ersn • cvxrorurron LT6001L8500 SERIES, ACTERRA, AND CARGO ~~~ • r ;~ • 5 Years r ~•'' Unlimited ~ Basco Vehicle Warranty Unle~ ezduded elsewhere M the warranty or described as having longer time and distance AmltaGona, all wmponents of the basic vehble are covered under the basic vehicle time and distance Innitatior-s. Betterles ere wamrJnted for 1 yssr or 100,000 mV 161000 Ian. (Some trattades are prorated up b 86 months. Please see your nearest dealer for speclfk manufacturots.) 0.„ V ~ Drivatraln Components Includes trarrsrnisalon (exckrdmg Allison transmissions); drive axles (differential assembiles, axle shafts, and axle housings); steering axle (beam. spindles, Idngpins, and kingpin bearings); and steering srm. - ~, Cab t3trtlcturo and 3hetet Metal (Doors and Conventional Hoods) Includes cab s[ntcbiral components, sheet metal panels, and eheel-molded compound hood_ Gab Corrosion Warranted against nrst-throuugh or pertoration due b corrosion from within. Faccludes: surface rust caused by chips o- scratches In the pairs. Frame Rape and Croaamembers Includes frame rails, attaching crossmembers, and gussets due to brealutg or cracking. EXCLUSIONS FROM WARRANTY Nornnal Maintenance Roupne maintenance services and adjustments as defined in the applicable vehicle maintenance and drivers manuals, are ex- cluded from warranty. The tightening of fasteners, fittings, hose damps. and electrical connectors which are loosened by normal operation of the vehicle fs considered to be nomtal malrttensnce; however, a courtesy warranlY witl be granted for the tightening of re items up to 25,000 mV40 5001an or the M1 service fnter- vel; whichever is greater. Please refer to these manuals for the required maintenance and service Intervals. Consumable Parts Parts that are subject to consumption during their normal service life end are nwtinely .replaced during nomtal maintenance ser- vice are not covered under warranty. Items included, but not lim- ited to: belts, brake 11n1n~, dutch brake, dutch linings, data log- ger batteries, filters; fuel. air, oil, water and desiccant cartridges, floor mats, iluores+rertt ballast and tubes, fuses. limit bulbs and non-reusable sealed t~l'tt assemblies, mud ft~s, receiver-drier filter/sud'~ort accumul~or, and wiper blades. Glass Blass and lens breakage and scratches are not covered by war- rant'. Chrome, Aluminum, and Stainless Steel Components General rust and/or staining, blueing arxilor yellowing, rust Pits and/or nicks caused by read debris, streaks, stains, and corro- sion caused fry severe wash solutions or road sags era not cov- ered bywarranty. Damages Damages caused by aoadents, negligence, abuse, misuse. im- properoperations, Improper or insufficient maintenance services, road tu~ards, chemical stains, storage, transport, or operation at excessive speeds, and loading beyond rated bad capacities are not covered by warranty. Axle/Wheel AJignment/Balancing 13alandng of tiresJwheels and adjustments tD camber are not warrantable. AI'rgnmeM of axles and wheels Including thrust an- gles, caster, and toe settings are warrantable if found to he out of Sterling Tnx:k Corporation's specifications prior' to, a during itr service of the veh'ide. Upholstery and Floor Mats Repair or replacement of upholstery or ibor mats caused by nor- mal wear or afwse are not covered under warranty, Refrigerators (Factory-Installed Only) Warranty on the refrigerator and refrigerator accessories ~ pro- vided by the refrigerate manufacturer. Miscellaneous Expenses Premium charges and work not directly r>alated to the repair or re- placement of a warrantably part will not be covered under war- ranty. Some examples include: state, provincial, and kx~l taxes, travel expenses, road service/calls: towing, loss of revenue, cus- tomer and overtime labor, downtime, driver's expenses, cost of rental equipment, foss of perishable cargo, general housekeep- ing supplies p.e., rags, solvents, sweeping compounds, cover- alls, etc.), communication drarges, repair or replacement of op- tional items not sold or installed by Sterling Truck Corporation. IMPORTANT Extended warranty coverage programs are available for cus- tomers to purchase at time of sale or up to 9o days from pur- chase date. Sterling Truck Corporation reserves the right to change these provisions. For complete details on this warranty, see the vehicle Ow'ner's Warranty Information Book or contact your local Sterling dealer. Please refer to the reverse side o(thls sheet /or more warranty inr~vrmation. 3? ~~ U DEC-05-2002 12 01 BOYER TRUCK S. ST PAUL Sterling New Vehicle Limited Warranty 5terftng warrants that each new vehicle (truck, tractor, or glider kit), with the exception of certain excluded components and parts, will be manu- factured to the speeifieatlons agreed upon and will be free from defects in material and workmanship which appear under nomral use and service, subject to different time and distance Ilmitations for specific components and parts as described by the previous graph. This warranty applies only to vehicles sold and domiclled in the USA and Canada. Thla warranty does not apply to engines (axoept Freightliner t;orpo- vatlon proprfaeary engines), Allison transmissions, flies, Norcold re- f-Igeretore, or other components or pares which are not mm~ufa~ tared by Sterling and which are warranted directly by their respective manufacturers, onto routine matntanance requirements as described In the Owner's Warranty Information Book. With respect to the fore- going, Sterling makes no warranty whether express, Implied, statu- t ~ry~orbio~tetwtae Including, iwt not limited to, any warranty of mer~ ny or fitness for purpose. Purchaser mist notify Sterling, within the applicable warranty period, of any failure of the vehicle to comply with this limited warranty and Pur- chaser must, at Purchaser's expense, promptly return the vehicle, com- ponent or pert to an authorized dealer for inspection of any defect in ma- tertal or workmanship occurring within the applicable time or distance limits. Sterling's sole obligation shad be the repair or replacement, at Sterling's option, of any defective component or part thereof. Aft components and paKS are covered by the Basic t/ahide Warranty unless specr'firatly cov- ered by other descriptbns, or otherwise excluded herein. Such repair or replacement shall be without cost to Purchaser when performed within • -the time or distance limits, whichever occurs first. On expiration of Sterling's obligation for the cost of parts and labor in sa cordance with the time and distance limits stated herein, all kabilities of Sterling to Purchaser under this Im-ited warranty shag temtir-ate. Waw ratrtty t'epalra do not constitute an extension of the orfglnal trrarranty period for the vehicle yr for wry spsdlk component or part. The foregoing limited warranty Is exclusive and In Ilea of all outer warranties•whethsr trwrlttsn, oral or Implied Including, but not Itmftad to arty warranty of rnerchantab1111y or flfrrsss for purpose. This Ilmfled warranty epeclflcaNy excludes any other warrarttles or condltlons provided for by taw, whether statutory or otherwise. This limited warranty shah be void. and Sterling shall not be obll- gated to repair or repNce any component or part, where the ttecea- slty of such rsplsoernsnt or repair, M Sterling's oplttMn, is due in whole or in part to loads in excess of stated factory rated capacltl~, improper maintenance or service, modifkatlon or alteration, acci- dent, or other misuse or abuse of the vehlNe, The vetttde must be maintained and serviced according to the ~~~~ scMbed schedules outlined in the vehl~ rnahrtanance and driver's manuals. Recelpted bills or other evidence that required mainte- nanceand service have been performed are required by Sterling as s condition of this warranty. To the extent arty Provision of this warranty contravenes the law of any jurisdiction. such provision shell be inapplicable in such jurisdiction, and the remainder of tfte warranty shall not be affected. Sterling- Purchaser's Exclusive Remr®dy The foregoing limited warranty shall be the Purchaser's sole and exclu- sive remedy against Sterling, whether in contract, under statute (includ- ing statutory provisions as to conditions as 1b quality or fitness for any paNcular purpose of goods supplied pursuant to the contract of safe), warranty, tort, strict liability, or arty other legal theory. Sterling Limitation on Liability Sterling's liability ro a Put+ct-aser on any claim for loss or damage arising out of, connected with, or resulting from the contract or sale, or the per- formance or breach thereof, or from the design, manufacture, sale, deliv- ery, service, repair or use of any vehicle manufactured by Sterling, shall not exceed the price to Purchaser allocable to the part of such vehicle which gives rise to the claim, and in no event shall it exceed the purchase price of the vehicle. In no event shall Staring bs liable for special or consequential damages Including, but not limited to, Injuries to per- sona or damage to property, loss of profits or antlclpated profits, or loss of vehicle use. Sterling Exceptions to Normal Warranty Guidelines ENGINE Engine (except Freightliner Corporation proprietary engines) and engine accessories are warranted only by the engine manufacturer. For ®ngine warranty or service, contact specific engine manufacturer's authorized sales and service facility. ENGINE ACCESSORIES Alr Compressor6 Detroit Diesel Engines Any (allure to air compressors installed by Detroit 6514509082 P. 03 Cummins Engines Cummins air compressor claims must be filed through their distributors. MidlandTM and 8endix compressors installed by Cummins are covered by Cummins for installation workmanship only. File these claims directly to Cummins. Any failure caused by material defect or es- sembfy of the air compressor should be-filed through Freightliner r ration Warranty Department. Caterpilla-e Engines: Any failure of air compressors installed by Cat, ' lar must be filed through their distributors. _ Engine Brakes Detroit Diesel Engines: Detroft Diesel and Jacobs® Brake engine brake claims must be filed through their distributors. All other engine brakes that were factory Installed by Detroit Diesel are fa't ul re aused b mat~eria- d~efeact or assembly of the girte breke should be filed through Frelghtllt'rer Corporation Warranty Department Cummins Engines Cummins C Brake and Jacobs Brake engine brake claims must be filed through their distributors. All other engine brakes that were factory installed by Cummltts are cov- ered by Cummltt8 warranty for installation worlartanship only_ Arty failure caused by material defect or assemby of the engine brake should be filed through Freightliner Corporation Warranty Department Caterpillar Eng/rwe~s: Jacobs Brake engine brake Balms must be filed through Caterpillar. All other engine brakes that were factory installed by Caterpillar are eov: Bred by Caterpillar wananty for installation workmanship only- Any failure caused by material defect or assembly of the engine brake should be filed through Freightliner Corporation Warranty Department ALLISON TRANSMISSIONS . For Allison transmission warranty or service contact your Allison distributor or your authorized salsa and service facility. TIRES Warranty on the original tires Is provided by the fire manufacturer. FIFTH WHEELS Adjustment of the locking mechanism, slide locking plungers, and the re- pair or replacement of lock guards are oonsWered routine maintenance. Sterling Modifications to Original Equipment Starting neither approves nor drsapprvves and does not warrant, veh: component or chassis modifications or equipment installations, array h.,,. by dealersor customers, since Sterling has rto control overthe work being performed by the variota vehicle body/equipment builders. Statiing is unable to accept extra time to remove body builder uutalled items to work on a warrantable repair unless Stetting sells the complete chasslslbody/equipment as a package. H dealers or customers have any vehicle modlflcatlons or equip- ment installafkx~s pertormad, to the- extent these modifications or equlpmertt Installations adversely affect ,other vehkle components or vehicle pertormancs, SteHMg shall not accept any product Ilabll- hY or clal-ns under the terms of the vehicle warranty. Thsae Balms become the sole respor-slblNty of the person performing the tnodifi- catlona or equipment installations. Sterling Transfer of Warranty When a used Sterling vehicle is purchased prior ro the expiration of the orfglnal warranty, the new owner is entitled to the remaining portbn of the warranty. To ensure the owner receives proper warranty recognition, complete the "Notice of Purchase of Used Trtrd~ coupon at the back of the Owners Warranty Information Book and mail to Freightliner Corpora- tion Warranty Department. Sterling Change of Customer Reglstratlon Information To ensure Ste~ng's continued stilly to reach the owner with Recall or Feld service campaign Information, it ~ imperative that the 'Change of Address Notice" coupon at the back of the Owner's Warranty Information book be completed and mailed to Freightliner Corporation Warranty De- panment when an owner has moved to a new address. Sterling Product Improvement Sterling reserv®s the right to make product improvements or changes at any time, without incurring any obligation to make such changes or im- provements to any other vehicle. Sterling Owner's Warranty R®sponsibilities • It is the owners responsibility to ensure the vehicle is maintained as our lined in the vehicle maintenance and driver's manuals. It is important the new owner becomes familiar with the contents of the Owners Warranty Information Book. When the owner first receives the vehicle, the Owner's Warranty Information Book should be reviewed by the dealer, ge by page, with the owner_ ~ ~•, o `o Y '° 'O a a ~ .~ ` 'fl `'~ N v °~ w c y ° is ~ ~ b m • ° ~ ~° G ~ ~ C N N y O o .. ~ ~ _ ° a c c ¢, ° ma ° 13 ~ ~ g o 3 ° o d •v ° ~° 'pC^p c ~ 7 m ti -= ~ w° v aUi c?i N ~ 0= C ~ O iy ~ yh" U 3' N y d O y~ d= 'D m ~ ~+ =y v ~ C C aNi O C N y b M y •O C C U etl ~ ~ ~ U .« O N R. O O E p N Z ~' O ~ R. 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The warranty is transferable* within the United States and Canada by notifying UPF within thirty (30) days of the vehicle transfer date. Every UPF POLY-TANK®IIE is thoroughly inspected and tested for leaks before leaving our facility and must be installed in accor- dance with the United Plastic Fabricating Installation Guidelines. Should any problems develop with your UPF POLY-TANK®IIE Booster/Foam Tank, please notify UPF in writing or call our TOLL FREE HOTLINE at 1-800-USA-POLY and provide UPF with the serial number and a description of the problem. If UPF determines that the tank problem has rendered the truck out-of-service, UPF will dispatch a service technician WITHIN 48 HOURS (2 DAYS) to repair the tank (This time period is for the United States and Canada only). If it is determined that the vehicle can remain in service, UPF will dispatch a service technician within a mutually agreed upon time period. Should the vehicle be located outside of the United States and Canada, UPF will assume costs for labor and mate- rial for the repair and for any travel costs to the U.S. port of embarkation. Cost for airline or other means of travel outside of the U.S. and Canada will not be the responsibility of United Plastic Fabricating, Inc. UPF will repair or, at its option, replace the tank with a new UPF POLY-TANK®IIE. UPF will cover customary and reasonable costs to remove and install the UPF POLY TANK®IIE. This warranty will not cover tanks that have been improperly installed, misused or abused, and the serial number must not have been altered, defaced or removed. UPF will not cover any unauthorized third party repairs or alterations. Any of these actions may void the warranty. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, WHICH EXTEND BEYOND THE DESCRIPTION OF THE FACE HEREOF. THERE IS NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR A WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ADDITIONALLY, THIS WARRANTY IS IN LIEU OF ALL OTHER OBLIG- ATIONS OR LIABILITIES ON THE PART OF UNITED PLASTIC FABRICATING, INC. This warranty contains the entire warranty. It is the sole warranty and price agreements or representation, whether oral or written, are either merged herein or expressly canceled. UNITED PLASTIC FABRICATING, INC. neither assumes, nor authorizes any person • supposing to act on its behalf to change, nor assume for it, any warranty or liability concerning its product. IN NO EVENT WILL UNITED PLASTIC FABRICATING, INC. BE LIABLE FOR AN AMOUNT IN EXCESS OF THE CURRENTLY PUBLISHED RETAIL PRICE PLUS INSTALLATION AND REMOVAL COST OF THE BOOSTER TANK, FOR ANY LOSS OR DAMAGE, WHETHER DIRECT OR INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR OTHER- WISE ARISING OUT OF FAILURE OF ITS PRODUCT. This warranty gives you specific legal rights, and you may also have other rights which vary from state to state. Some states do not allow exclusion or limitation of incidental or consequential damage, so the above limitation or exclusion may not apply to you. Since some states do not allow limitations on the length of an implied warranty, the above limitation may not apply to you. UNITED PLASTI C ~ABRI CA T/NG, INC. ~~Think Tank , , ,Think UPF" Transfer of Ownership Form Serial Number: Original Owner: Address: St: Zip: FILL IN THE INFORMATION CONTAINED ON YOUR City/Town: WARRANTY CARD IN THE FORM TO THE RIGHT. PLEASE KEEP THIS INFORMATION IN A SAFE PLACE FOR REFERENCE. IF SERVICE SHOULD EVER BE NEEDED, CALL 1-800-USA-POLY. POLY-TANK®IIE is a registered trademark of UPF, Inc. ALL-OUTT"' and PT2ET"' are all trademarks of UPF, Inc. AccTufT"" is a trademark of Amoco Polymers, Inc. ©October 1999 UPF, Inc. Printed in the USA Complete and fax or-mail to UPF to transfer warranty Date, of: transfer: New Owner: Address: City/Town: St: All transfers subject to approval by UPr= Zip: 44