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HomeMy WebLinkAbout11/24/1986 Council Minutes052 COUNCIL MEETING November 24, 1986 IIThe regular meeting of the Lino Lakes City Council was called to order at 7:00 P.M. by Mayor Benson. Members present: Marier, Reiner„, Bohjanen. Mr. Bisel arrived at 7:22 P.M. Members ab- sent: None. Attorney, Bill Hawkins; Engineer, Ron Stahlberg; Administrator, Randy Schumacher; Building Inspector, Pete Kluegel, and Clerk- Treasurer, Marilyn Anderson were also present. CONSIDERATION AND APPROVAL OF MINUTES - NOVEMBER 10, 1986 Mr. Marier moved to approve these minutes as presented. Mr. Bohjanen seconded the motion. Motion carried unanimously. CONSIDERATION OF DISBURSEMENTS - NOVEMBER 24, 1986 Mr. Schumacher noted that the disbursement for Computerland is to be removed. The fee of $163.00 is covered by the maintenance agree- ment. Mr. Bohjanen moved to approve the Disbursements except Com- puterland. Mr. Reinert seconded the motion. Motion carried un- animously. OPEN MIKE A. Chris Ross - Ross' Liquors - Mr. Jerry Anderson of Jamb -Archi- tects, representing Mr. Ross gave the Council a courtesy presentation of the proposed redevelopment of the southeast corner of Lake Drive and Main Street. Mr. Anderson also presented a model of how the cor- ner would look. He further explained that to accomplish the project Iand meet City Codes and the requirements for Tax Increment Financing (TIF), a variance would be required for a five (5) foot building set- back on the east lot line. He had presented the request to the Plan- ning and Zoning Board, November 12, 1986 and was told that they would not recommend to the Council a variance be issued because it did not meet the six findings of fact required by the Zoning Ordinance. He discussed applying the zero lot line code to the project, however, the City Planner felt that this section of the ordinance would not apply in this case. Mr. Ross is expecting to start construction dur- ing the coming winter so that the lease area is ready by June 1, 1987. Also Mr. Anderson explained while construction is progressing on the new building, Mr. Ross will continue the operations in his present buildings. There was discussion regarding acquiring an additional 30 feet from the lot owner to the east. Mr. Ross explained this owner has decided not to sell any of his land. Mr. Ross is trying to obtain the right of first refusal from this neighbor so that he could later enlarge his business. Mr. Reinert asked what is required for a zero lot line and what is re- quired for a five foot setback. Mr. Kluegel explained the five foot setback requires a variance and the zero lot line a Conditional Use Permit. Mr. Marier suggested the ordinance be amended to allow for the five foot setback, but be written in such a manner that no other areas could meet the restrictions. Mayor Benson suggested granting a variance COUNCIL MEETING November 24, 1986 detailing the special conditions of this request, thereby eliminating a precedence setting variance. Mayor Benson asked that Mr. Hawkins look at both avenues of allowing this construction, either by variance or changing the Ordinance and bring his recommendations to the next Council Meeting. Mayor Benson thanked Mr. Ross and Mr. Anderson for coming this evening. CONSIDERATION OF AWARDING $475,000 G.O. IMPROVEMENT BONDS - RESOLUTION NO. 49 -86, DAVE MACGILLIVARY Mr. MacGillivary of Springsted, Inc. explained to the Council that his firm had advertised for bids for the sale of $475,000 of G.O. Improvement Bonds to refinance the Black Duck Bonds and to fund con- struction of sewer and water on Sunset Road. He had received ten (10) bids and considered the rate of interest excellent. He explained the City will save approximately $64,000 by refinancing the Black Duck Bonds. The lowest bid was from Norwest Investment Services, Inc. and Mr. MacGillivary recommended the Council accept this bid. Mr. Marier moved to adopt Resolution #49 -86. Mr. Bisel seconded the motion. Motion carried unanimously. Resolution #49 -86 can be found at the end of these minutes. PLANNING AND ZONING REPORT - PETE KLUEGEL 1 Sign Crafters - Advertising Sign - Mr. Kluegel explained this request is for two signs to be constructed along 35W on property owned by Glenn Rehbein. Mr. Schumbert of Sign Crafters explained the construction of the sign and Mr. Kluegel noted the Planning and Zoning did recommend approval of the request. Mr. Marier moved to approve application #86 -37 and #86 -38 with the stipulations that.the sign in place be removed prior to construction of the new signs and if 4th Avenue is completed the new signs be moved to comply with setback requirements Mr. Bohjanen seconded the motion. Motion carried unanimously. Amended Conditional Use - Bob Hohl - Set Public Hearing for December 22, 1986, 7:30 P.M. Mr. Bohjanen moved to set the public hearing. Mr. Bisel seconded the motion. Motion carried unanimously. Kennel License - Conditional Use Permit - James Flannery, Set Public Hearing for December 22, 1986, 7:45 P.M. Mr. Bohjanen moved to set the public hearing. Mr. Bisel seconded the motion. Motion carried unani- mously. Minor Subdivision - Lot Realignment - Harold Bisel. Mr. Kluegel_ex- plained that Mr. Bisel is requesting that the lot line between two lots he owns be realigned so that his driveway will be on the same lot as his house. The lots will remain exactly the same size as they are now. The Planning and Zoning Board had recommended approval of the request. Mr. Marier moved to approve this request. Mr. Bohjanen seconded the motion. Motion carried with Mr. Bisel abstaining. 1 053 COUNCIL MEETING November 24, 1986 Schwan's Ice Cream - Minor Subdivision - Site and Building Plan Review. Schwan's Ice Cream is requesting a minor subdivision to divide a 1.07 acre,lot from an existing lot owned by Glenn and Raymond Rehbein and combine the 1.07 acre lot with the lot now owned by Schwan's Ice Cream. Mr. Kluegel explained this request is consistent with the Land Use Plan, the Transportati -on Plan, consistent with keeping commercial areas near proposed sewer and water designated areas and is consistent with the Zoning Ordinance. The Planning and Zoning Board did recommend ap- proval of this request and the Planners and Engineers comments have been addressed. Mr. Bisel moved to approve application #86 -30 for a minor subdivision. Mr. Bohjanen seconded the motion. Motion carried unanimously. Mr. Kluegel explained the request for site and building_ plan__ review. Schwan's is proposing to build an additional building on the site for expansion of their business. The Planning and Zoning Board had re- viewed the. plan and recommended some changes. On Thursday, November 20, 1986 Mr. Kluegel had met with Mr. Bob Rypekma of Schwan's and John McLean and Bob Doocy to review the plans that. had been redrawn to meet the Board's request. These items were addressed in the new plan: Altered front of building on 77th Street to show brick and cedar and place the large doors so that they face west; include a 30 foot blacktop apron in the loading dock area; extend landscaping from building to existing driveway to act as buffer; substitute Fitzer Juniper for the Tauten Yew and eliminate gold flame spirea and moving blue spruce so that it will not obstruct view. Mr. Bisel moved to approve application #86 -31 with the revisions out- lined by Mr. Kluegel. Mr. Marier seconded the motion. Motion car- ried unanimously. ENGINEER'S REPORT - RON STAHLBERG Authorizing Feasibility Report Dennis Erickson Plat - Resolution No. 51 -86. Mr. Stahlberg explained that Mr. Erickson has submitted a sketch plan for a subdivision south of Birch Street near Black Duck Drive and has requested that sewer and water be extended to the prop- erty. He has also submitted the initial fees. Mr. Marier moved to approve Resolution #51 -86. Mr. Bisel seconded the motion. Motion carried unanimously. CITY OF LINO LAKES RESOLUTION NO. 51 - 86 A RESOLUTION ORDERING PREPARATION OF FEASIBILITY REPORT ON IMPROVE- MENT I WHEREAS, it is proposed to conduct the following described improve- ment; COUNCIL MEETING November 24, 1986 Installation of municipal water, sanitary sewer, streets, curbs, gutters and storm sewers on property described as follows: the northeast 4 of the southeast 4 of Section 28, Township 31, Range 22, City of Lino Lakes, Anoka County, Minnesota, And to assess the benefited property for all of or a por- tion of the costs of the improvement, pursuant to Chapter 8 of the Lino Lakes Home Rule Charter; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: That the proposed improvement be referred to the City En- gineer for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated costs therefor which shall be set out both in unit price and in total. The estimated number of benefited property owners by such improvement is one. Adopted by the Council this day of November, 1986. - -- 4111111P AV 'Benja 'n G. :enson, Mayor Marilyn G. Anderson, Clerk- Treasurer Authorizing Feasibility Report - Gary Uhde Plat - Resolution No. 52 -86. Mr. Uhde has submitted a sketch plan for a subdivision south of Birch Street just west of the transmission tower and has requested that sewer and water be extended to the property. He has also submitted the initial fees. Mr. Bisel moved to approve Resolution No. 52 -86. Mr. Bohjanen seconded the motion. Motion carried unanimously. CITY OF LINO LAKES RESOLUTION NO. 52 - 86 A RESOLUTION ORDERING PREPARATION OF FEASIBILITY REPORT ON IMPROVE- MENT. WHEREAS, It is proposed to conduct the following described improve- ment; 1 1 .a 054 COUNCIL MEETING November 24, 1986 Installation of municipal water, sanitary sewer, streets, curbs, gutters and storm sewers on property described as follows; the southeast 14 of the southeast 14 of Section 29, Township 31, Range 22 and the northeast 14 of the north east 1 of Section 32, Township 31, Range 22, City of Lino Lakes, Anoka County, Minnesota, And to assess the benefited property for all of or a por- tion of the costs on the improvement, pursuant to Chapter 8 of the Lino Lakes Home Rule Charter; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: That the proposed improvement be referred to the City En- gineer for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated costs therefor which shall be set out both in unit price and in total. The estimated number of benefited property owners by such improvement is one. Adopted by the Council hi 4th day of November, 1986. Marilyn G. Anderson, Clerk- Treasurer jam G. Benson, Mayor Lang Correspondence - Mr. Stahlberg explained that the Lang property backs up to the holding pond for School Subdivision. There is no outlet on this pond, therefore no way of getting water out of the pond. There are a total of six parcels that abut this pond as well as Aenon Street. Mr. Volk has been pumping the water to the north, however those property owners have been complaining. Mr. Lang has sent a letter to the Council outlining his problems caused by the overflow of this pond. A petition has been received signed by the adjoining property owners requesting the Council to take steps to alleviate the flooding. Mr. Stahlberg explained there are only two methods of providing an outlet for the pond. The first is to continue pumping north toward the county ditch. This method will bring continued opposition from landowners to the north because it is just moving the problem to another area. The second method is to provide a lift pump and pump COUNCIL MEETING November 24, 1986 the water into the storm sewer that is to be constructed when Main Street is upgraded in 1987. This method will be very costly. Mr. Reinert was concerned that the approval by the City for construc- tion of the holding pond has created the flooding resulting in inop- erable septic systems which could cause a health hazard. Mr. Marier said he did inspect the area and suggested the pond could be dug deeper and possibly require the abutting residents to install mound septic systems. Mr. Stahlberg said this may not help. The residents may have to fill in their back yards and then build mound systems. After further discussion it was decided to send all homeowners af- fected by this pond a letter stating the matter is being discussed by the Council and presently they are looking into preparing an overall water management plan for the City and offer engineering assistance to them. Consideration of Resolution #53 -86, Ordering 4th Avenue Project. Mr. Marier moved to approve this Resolution and dispense with the reading. Mr. Bisel seconded the motion. Motion carried unani- mously. CITY OF LINO LAKES RESOLUTION NO. 53 - 86 A RESOLUTION ORDERING IMPROVEMENT ON 4TH AVENUE WHEREAS, a resolution of the City Council adopted on the 25th day of August, 1986, fixed a date for a Council hearing on the following described improvement: 4th Avenue between Main Street and Lilac Street WHEREAS, published and mailed notice of the hearing as required by the Lino Lakes City Charter was given and a hearing was held thereon on the 22nd day of September, 1986, at which all persons desiring to be heard were given an opportunity to be heard thereon. WHEREAS, a period of sixty (60) days has elapsed after the public hearing and no petitions have been filed against the im- provement as provided by in Section 8.04, Subd. 1 of Chapter 8 of the Lino Lakes City Charter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, 1. Such improvement is hereby ordered as proposed in the Council resolution adopted the 25th day of August, 1986. 1 1 INOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, 055 COUNCIL MEETING November 24, 1986 2. Ronald Stahlberg, Toltz, King, Duvall, Anderson and Associates is hereby designated as the engineer for this improvement. He shall prepare plans and, specifications for the making of such improvement. Adopted by the Lino Lakes City Council this 24th day of November, 1986. :enjam G. B- son, Mayor Marilyn G. Anderson, Clerk - Treasurer Consideration of Resolution #54 -86, Ordering 80th Street Project. Mr. Bohjanen moved to approve this Resolution and dispense with the reading. Mr. Bisel seconded the motion. Motion carried unanimously. CITY OF LINO LAKES RESOLUTION NO. 54 - 86 A RESOLUTION ORDERING IMPROVEMENT OF 80TH STREET: WHEREAS, A resolution of the City Council adopted on the 25th day of August, 1986, fixed a date for a Council hearing on the following described improvement: 80th Street from 20th Avenue on the west to 24th Avenue or the east City Boundary on the east. WHEREAS, published and mailed notice of the hearing as required by the Lino Lakes City Charter was given and a hearing was held thereon on the 22nd day of September, 1986, at which all persons desiring to be heard were given an opportunity to be heard thereon. WHEREAS, a period of sixty (60) days has elapsed after the public hearing and no petitions have been filed against the im- provement as provided by in Section 8.04, Subd. 1 of Chapter 8 of the Lino Lakes City Charter. COUNCIL MEETING November 24, 1986 1. Such improvement is hereby ordered as proposed in the Council resolution adopted the 25th day of August, 1986. 2. Ronald Stahlbera, Toltz, King, Duvall, Anderson and Associates and Jon Olsen, Anoka County Engineer are hereby designated as the engineers for this improvement. They shall prepare plans and specifications for the making of such improvement. Adopted by the Lino Lakes City Council this 24th day of November, 1986. Marilyn G. Anderson, Clerk- Treasurer Presentation of Feasibility Report - Deer Pass Trail - Resolution #58 -86. Mr. Stahlberg outlined this area using the overhead pro- jector. It is a feasible project with the landowners who previously invested money in the street getting credit for their investment. Mrs. LaBuda questioned if it was reasonable to further upgrade this street when streets leading to Deer Pass Trail are in greater need of upgrading. Mr. Stahlberg explained that this will be addressed at the public hearing. Mr. Marier moved to approve Resolution #58 -86 and set the•public hearing for January 12, 1987 at 7:30 P.M. Mr. Bohjanen seconded the motion. Motion carried unanimously. CITY OF LINO LAKES RESOLUTION NO. 58 - 86 A RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT FOR DEER PASS TRAIL. WHEREAS, pursuant to a motion of the Council adopted the 27th day of October, 1986, a report has been prepared by the City Engineer with reference to the following described improvement: Upgrade the entire length of Deer Pass Trail to cur- rent City standards. Lots 18 through 28 of Otter Lake Hills are lots affected by this Resolution. 1 056 COUNCIL MINUTES November 24, 1986 and this report was received by the Council on the 10th day of November, 1986. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Council will consider the above described improvement in accordance with the report of the City Engineer and the assessment of benefited property for all of the costs of the improvement pur- suant to Chapter 8 of the Lino Lakes City Charter and Minnesota Statutes Chapter 429. 2. The estimated unit price of such improvement is outlined in the attached list. The estimated total cost of the project is $17,042.00. 3. A public hearing -shall be held on the proposed improvement on the twelfth day of January, 1987 in the Council Chambers at the City Hall at 7:30 P.M. The City Clerk shall cause this Res - olution.to be published twice, at least one week apart, in the official newspaper of the City, no less than two weeks prior to the date of said hearings, and in addition thereto, a copy of this Resolution shall be mailed to each benefited property owner at their last known address at least two weeks prior to the date of the hearing. Adopted by the Council this twenty- fourth day of November, 1986. Marilyn G. Anderson, Clerk - Treasurer ATTORNEY'S REPORT - BILL HAWKINS Mr. Hawkins did not have a report. CONSIDERATION OF ORDINANCE #13 -86 GRANTING A NON - EXCLUSIVE FRANCHISE TO THE CITY OF CIRCLE PINES Mr. Marier moved to accept the first reading of this ordinance. Mr. Bisel seconded the motion. Mr. Schumacher explained there are por- tions of the Franchise that will need further-clarification such as purchase option, franchise fees, classes of customers. Circle Pines has agreed to the general language regarding these issues but ad- ditional language will have to be worked out. He asked for authorization COUNCIL MEETING November 24, 1986 to complete this with the help of Mr.Hawkins. Mayor Benson asked that the motion include that these items be resolved by the next Council Meeting. Mr. Marier and Mr. Bisel accepted the addition. Voting on the motion, motion carried unanimously. ORDINANCE NO. 13 - 86 CITY OF LINO LAKES ANOKA COUNTY STATE OF MINNESOTA GAS FRANCHISE ORDINANCE :11J ORDINANCE GRANTING TO THE CITY OF CIRCLE PINES, BY AND THROUGH ITS PUBLIC UTILITIES COMMISSION, A NON - EXCLUSIVE FRANCHISE AND RIGHT FOR A PERIOD OF 25 YEARS TO USE THE STREETS AND PUBLIC WAYS FOR THE PURPOSE OF CONSTRUCTING, OPERATING, AND MAINTAINING A SYSTEM FOR THE MANUI'ACTURE, DISTRIBUTION AND SALE OF GAS; PRESCRIBING THE TERMS AND CONDITIONS OF THE FRANCHISE; AND REPEALING ORDINANCE NOS. 28 AND 29. WHEREAS, the City of Circle Pines ( "the Grantee "), a Minnesota municipal corporation, by and through the Circle Pines Public Utilities Commission ( "the Utilities Commission "), owns and operates property used and useful in the manufacture, distribution and sale of gas in the City of Lino Lakes; and WHEREAS, the City of Lino Lakes ( "City "), a Minnesota municipal corporation, on October 9, 1961, duly adopted, and, on March 25, 1962, duly amended, an ordinance granting a franchise ( "the 1961 franchise ") to the Circle Pines Public Utilities Corrunission to construct, maintain and operate a gas distribution system in the City, and the Utilities Commission duly accepted the franchise; and WHEREAS, meetings have been held between representatives of the Grantee and representatives of the City relative to the adoption of new franchise ordinance; and WHEREAS, the City Council of the City has determined that it is desirable, in the public interest and to the advantage of the ci)n'Illi?er`i DE c a:; in th r.:', r'; that a 'ew t r nchi ho ar:1:1 to 1 1 1 1 COUNCIL MEETING November 24, 1986 O J 7 the Grantee upon the terms and conditions contained herein, and that the 1961 franchise be repealed and all rights and privileges of ,the Grantee thereunder be surrendered and cancelled; J WHEREAS, it is the intent of the Grantee and the City to promote the expansion of the Grantee's gas distribution system in the City; and WHEREAS, the Grantee, as and for part consideration and compensation for the franchise herein granted, has agreed, as provided in this franchise, to supply gas service in the City, and to perform the contractual obligations prescribed herein and pay certain amounts to the City; NOW, THEREFORE, the City Council of the City of Lino Lakes does ordain as follows: Section 1: Definitions. The following terms shall mean: 1.1. City. The City of Lino Lakes, Minnesota, as its boundaries now exist and as they may be changed during the term of this franchise. 1.2__ Grantee. The.City of Circle_Pines, Minnesota, its successors and assigns. 1.3.. Council. The City Council of the City of Lino Lakes. 1.4. Gas. Natural gas, manufactured gas, or a mixture of natural gas and manufactured gas. 1.5. Street and Public Way. Any street, avenue, highway, boulevard, sidewalk, road, parkway, alley, square, bridge or other public way in the City. COUNCIL MEETING November 24, 1986 1.6. 1961 Franchise. The franchise granting to the Grantee, its successors and assigns, permission to use the streets and public places in the City for the construction, maintenance and operation of a system of mains, pipelines and other facilities for the distribution and sale of gas, subject to certain terms and conditions, pursuant to the City's Ordinance Nos. 28 and 29. 1.7. Utilities Commission. The Public Utilities Commission of the City of Circle Pines, as now existing or hereafter constituted. Section 2: Grant of Franchise. There is hereby granted to the Grantee until October 31, 2011, the right to construct, operate and maintain a gas system or gas plant, or both, and to import, manufacture, transport, distribute and sell gas, in the City, and for these purposes to construct, operate and maintain the necessary facilities and equipment and to lay and maintain mains, service pipes and any other appurtenances necessary to the sale, manufacture and distribution of gas in and along the streets and public ways of the City, and to do all things which are reasonably necessary or customary in the accomplishment of these objectives, subject to the provisions of this franchise. 2.1. Effective Date; Acceptance by Grantee. This franchise and the rights granted herein shall take effect on and be in force from 1986, provided that the Grantee has filed, within 30 days after publication of said franchise, a 1 1 1 1 1 COUNCIL MEETING November 24, 1986 058 written acceptance thereof by the Utilities Commission with the City Clerk. The written acceptance by the Utilities Commission sha11 also surrender all of its rights and privileges under the 1961 franchise. 2.2. Non - Exclusive Grant. The rights hereby granted are not exclusive and the City may grant like rights to other persons during the term of this franchise. 2.3. Area. The rights hereby granted extend throughout the entire geographic area of the City, as said area currently exists and may be changed. Grantee may, from time to time, make reasonable additions and extensions to its existing gas distribution system in the City. The City and the Grantee shall • t cooperate to promote the development and expansion of Grantee's gas distribution system in the City. The Grantee shall comply with the underground permit requirements of the City. Section 3: Rates. Rates charged by the Grantee to its customers for service hereunder shall not be higher, for comparable classes of customers, than the rates Grantee charges its customers in the City of Circle Pines. Section 4: Franchise Fee. Commencing with the calendar year 1987, the Grantee shall annually pay to the City seven percent (7 %) of the Grantee's gross revenues from the sale of gas within the City. The franchise fee to be paid pursuant to this Section shall be paid based on the receipts from gas sold to the. Grantee's customers in COUNCIL MEETING November 24, 1986 the City from January 1 through December 31 of the applicable calendar year. The franchise fee shall be paid annually, commgncing in 1988, on or before May 15, such fee to be based on receipts from sales during the prior calendar year. In the event of termination or expiration of the franchise for any reason, the Grantee shall pay the applicable franchise fee within four and one -half months of termination or expiration of this franchise. Section 5: Purchase by City; Termination of Franchise. 5.1. Option to Purchase. Commencing on November 1, 1991, the City shall have the option -to purchase all, but not less than all, of the real property, utility plant and equipment, and any other property used by the Grantee in operation under this franchise and located in the City. The City's option shall be exercised by the City giving the Grantee written notice of its intent to purchase the Grantee's gas distribution system in the City of at'least 18 months priori to the proposed date of the purchase. The notice shall set forth the proposed date of the purchase. The terms and conditions of any purchase pursuant to this_ Section 5.1 shall be as set forth in Section 5.4 hereof. 5.2. Purchase Upon Revocation, Termination or Expiration. Upon the revocation, termination or expiration of the term of the franchise granted hereby for any reason whatsoever, including default by the Grantee, the City shall purchase, within 180. days after the effective date of the revocation, termination or expiration, all, but.not less than all, of the real property, utility plant and equipment, and any other property used by the Grantee in operation under this franchise and located in the 1 1 1 COUNCIL MEETING November 24, 1986 059 City. The terms and conditions of any purchase pursuant to this Section 5.2 shall be as set forth in Section 5.4 hereof. 1:) 5.3. Option to Terminate. Commencing on November 1, 1991, a the Grantee shall have the option to terminate this franchise. The Grantee's option to terminate the franchise shall be exercised by the Grantee giving the City, at least one year prior to the proposed date of termination, written notice of Grantee's intent to terminate the franchise, which notice shall set forth the proposed date of termination. After Grantee gives notice of its intent to terminate the franchise, either the parties shall negotiate a new franchise on terms and conditions mutually acceptable to the parties, or the City shall purchase Grantee's gas distribution system in the City on the date of termination proposed by Grantee. The terms and conditions of any purchase pursuant to this Section 5.3 shall be as set forth in Section 5.4 hereof. 5.4. Terms and Conditions of Purchase. The Grantee and the City shall negotiate all terms and conditions of any purchase by the City of the gas distribution system in the City pursuant to this Section 5 or otherwise. The price to be paid for the property to.be acquired pursuant to any purchase of the gas distribution system in the City shall be the fair value of said system as an ongoing business as of the date of closing on the purchase. In no event, hwoever, shall the price be less than the ccst of retiring all outstanding bonds or other obligations 1 COUNCIL MEETING November 24, 1986 issued by the Grantee attributable to.the gas distribution system in the City, plus the amount of any contract demand costs allocable to the Grantee's gas distribution system in the City that Grantee is unable to eliminate. The entire purchase price shall be paid at the time of closing. If the Grantee and the City cannot agree on the terms and conditions of any purchase by the City pursuant to this Section 5, either the Grantee or the City may proceed to arbitration pursuant to Section 13 of this ordinance. 5.5. Eminent Domain. The provisions of this Section 5 are intended to supersede any right or authority possessed by the City under statutory, constitutional, common or other law to acquire any part or all of Grantee's gas distribution system in the City, and are intended to supersede any method of determining the terms and conditions of any such acquisition. The City hereby waives any such right or authority of eminent domain with respect to the gas distribution system of the Grantee within the City. 5.6. Right of First Refusal. In the event that, at any time after any purchase by the City of all or any part of the C::antee's gas distribution system in the City, the City desires to sell or transfer all or any part of the gas distribution system formerly owned by the Grantee, and the City receives an offer to purchase all or any part of any gas distribution system then owned by the City, which offer includes all or any part of the gas distribution system formerly owned by the Grantee, the City shall, within ten days after receipt of said offer, offer in 1 1 COUNCIL MEETING November 24, 1986 060 writing to sell the entire gas distribution system for which the City received an offer to the Grantee on terms identical to those contained in the offer made to the City. Said offer shall include a statement of the intention to transfer, the name and address of the prospective purchaser, the portion of the gas distribution system formerly owned by the Grantee to be transferred, a description of the entire gas distribution system to be transferred, and the terms of the transfer. Within 120 days after receipt of the offer, the Grantee may, at its option, elect to purchase all, but not less than all, of the gas distribution system offered to the Grantee. The Grantee shall exercise its election to purchase by giving written notice to the City of its intention to urchase the P gas distribution system offered on the terms set forth in the offer. The closing for the purchase and sale to the Grantee pursuant to this Section 5.6 shall take place no later than 30 days after the City received notice of Grantee's intent to purchase. In the event of any purchase by the Grantee pursuant to this Section 5.6, the City shall enact an ordinance granting a franchise to the Grantee on terms identical to those contained in this ordinance, for a period of at least ten years. The provisions of this Section 5.6 shall survive any expiration, forfeiture, revocation, or termination of this franchise for any reason whatsoever, and shall survive any repeal or amendment of this ordinance. Section 6: Service and Standards. 6.1. Supply of Gas. The Grantee agrees to provide and to maintain its entire plant and system in the City in condition to COUNCIL MEETING November 24, 1986 furnish safe, adequate and continuous service, subject, however, to the further provisions of this section. ,.6.1.1. Failure to Deliver or Receive Gas. The Grantee is not liable to any of its customers or to the City for its failure to deliver gas, and said customers and the City are not liable to the Grantee for their failure to receive gas when such failure is dua to any of the following causes: accident to or breakage of pipelines, machinery or equipment; fires or floods, weather conditions; strikes; riots; inability of the Grantee's pipeline supplier t"o furnish an adequate supply; legal impediments, acts of Cod or' public enemy; shutdowns for necessary repairs or maintenance; or without limitation by enumeration, any other cause beyond the reasonable control of the parties failing to deliver or receive gas. If gas service by the Grantee is temporarily suspended for any of said causes, occurring through no fault or negligence of the Grantee, such suspension shall not form the basis for any action or proceeding to terminate this franchise. G.1.2. Negligence Not Excused. Section 6.1.1 is not intended to relieve any person of liability for damages or expenses caused or contributed to by his own negligence which is the proximate cause of his failure to deliver or receive gas. 6.1.3. Remedial Action. A party failing to deliver or receive gas for any of the causes enumerated in Section 6.1.1 shall promptly and diligently take such action as may be reasonably necessary and practicable under the then existing circumstances to remove the cause of failure and resume the delivery or receipt of gas. 1 1 1 1 COUNCIL MEETING November 24, 1986 0 61 6.2. Rules and Regulations. The Grantee shall have the right to promulgate such rules, regulations, terms and conditions governing its distribution of gas pursuant to this franchise, not in conflict with this franchise, as shall be reasonably necessary to enable the Grantee to exercise its rights and perform its obligations under this franchise, and to assure safe, adequate and continuous service to its customers. Section 7: Conditions of Street Use. 7:1. Use of Streets. In order to effect the rights granted pursuant to this franchise, the Grantee is authorized subject to the City's underground permit requirements to make all necessary excavations in the street and public ways of the City. All mains, service and utility facilities shall be located, constructed, installed and maintained so as not to endanger or unnecessarily interfere with the usual and customary traffic and travel upon the streets and public ways of the City. The City may inspect and examine at reasonable times the Grantee's facilities used and useful in furnishing gas service in the City. 7.2. Restoration of Streets. The Grantee shall, upon the completion of any work requiring an opening or disturbance of the surface of any street or public way in the City, restore the street or public way, including the paving or permanent resurfacing and foundations, to the same order and conditions as before the opening or disturbance was made insofar as reasonably possible. Section 8: Indemnification. The Grantee shall indemnify and hold the City free and harmless from all liability and out -of- pocket expenses, except COUNCIL MEETING November 24, 1986 attorneys' fees, on account of injury or damage to persons or property caused by the Grantee's construction, maintenance, repeir or operations in the City during the term of this franchise, unless such injury or damage is the result of the negligence of the City, its elected officials, its employees, officers, agents or inhabitants. Section 9: Assignment. This franchise, and the rights and privileges granted pursuant to it, may not be assigned by Grantee without the prior written consent of the City. Consent by the City shall not be unreasonably withheld. The assignee of such rights, by accepting the assignment, shall be deemed to have accepted the terms of this franchise, and shall be subject to all the terms and conditions of this franchise. Section 10: Default. If the Grantee is in default in the performance of any material part of this franchise for more than 90 days after receiving written notice from the City of such default, the Council may, by ordinance, terminate all rights granted to the Grantee pursuant to this franchise. A notice of default must specify the provision of this franchise under which the default is claimed and state the bases therefor. Such notice shall be served on the Grantee by personally delivering it to the city administrator of the Grantee. The reasonableness of any ordinance declaring a termination of the rights and privileges granted by this franchise shall be subject to judicial review by a court of competent jurisdiction. The right of termination on default is the City's sole remedy. 1 1 1 COUNCIL MEETING November 24, 1986 0 6 2 Sr :c•tion 11: Utilities Commission Membership. The City Councils of the City and the Grantee have, by a joifit resolution dated members to serve on the Utilities Commission and the number of , 1986, set the number of said members to be recommended by the Council. Any failure by the Grantee to abide by the provisions of said joint resolution, or any duly adopted sucessor joint resolution, shall be deemed to be a default under this franchise, and shall entitle the City to eNercise its rights provided for in this franchise in the event of a default by the Grantee. Section 12: Accounting Requirements. The Grantee shall provide to the City on an annual basis the audited statement prepared by the Grantee's certified public accountant. In addition, the City shall have access at all reasonable hours to all of the Grantee's plans, contracts engineering records, accounts, financial statements, and customer and service records. The City may also cause, at its sole expense, an audit of the Grantee's gas distribution system in the City. Section 13: Arbitration. 13.1. Disputes Subject to Arbitration. In the event of a dispute pursuant to Section 5.4 of this ordinance, either the City or the Grantee may proceed to arbitration, said arbitration to take place as hereinafter provided. In the event of any other dispute between the City and the Grantee pursuant to this ordinance, the parties may, but need not, agree to proceed to arbitration, said arbitration to take place in the manner hereinafter provided. COUNCIL MEETING November 24, 1986 13.2 Procedure. Arbitration shall commence according to applicable Minnesota law, except as follows: (a) The parties shall, within 30 days of a party's decision to proceed to arbitration, or the parties' agreement to proceed to arbitration, appoint one arbitrator each who is experienced and knowledgeable in the purchase and valuation of business property. The arbitrators so selected shall each agree upon the selection of a third arbitrator, similarly qualified, within 30 days after appointment of the second arbitrator. (b) Within 30 days after appointment of all arbitrators, and upon 10 days' written notice to the City and to the Grantee, the arbitrators shall commence a hearing on the dispute. (c) The hearing shall be recorded and may be transcribed at the request And expense of either party. All hearing proceedings, debates and deliberations shall be open to the public and shall take place at such times-and places as contained in the notice or as thereafter publicly stated in the order to adjourn. (d) In the event of a dispute pursuant to Section 5.4 of this ordinance, the arbitration panel shall be required to determine the purchase price and any other terms and conditions for the purchase of the system in the City according to the standards established in this ordinance. (e) At the close of the hearings and within 30 days, the arbitrators shall prepare written findings and make a written decision agreed upon by a majority of the arbitrators, which decision shall be served by mail upon the City and the Grantee.. (f) The decision of a majority of the arbitrators shall be binding upon both the City and the Grantee. (g) Either party may seek judicial relief to the extent authorized under Minnesota Statutes Sections 572.09 and 572.19 as the same may be amended, and, in addition, under the following circumstances: the party fails to select an arbitrator; the arbitrators fail to select an a third arbitrator; one or more arbitrators is unqualified; designated time limits have been exceeded; the arbitrators have not proceeded expeditiously; or, based upon the record, the arbitrators abused their discretion. (h) In the event a court of competent jurisdiction determines the arbitrators have abused their 1 COUNCIL MEETING 063 November 24, 1986 discretion, it may order the arbitration procedure repeated and issue findings, orders and directions, with costs of suit to be awarded to the prevailing party. (i) The costs of arbitration shall be borne equally by the City and the Grantee. Each party shall pay its own attorneys' fees. Section 14: Severability. If any section, provision or clause of this franchise is adjudged to be invalid, the same shall not affect the validity of this franchise as a whole, or any section, provision or clause other than the part declared to be invalid. Section•15: Notices. Any notice required to be sent pursuant to this ordinance shall be sent registered mail, postae prepaid, return receipt requested, to the city administrator of the municipality to which the notice is to be sent. Section 16: Binding Effect. The agreement of the City and the Grantee, as set forth in this ordinance, shall be binding on and inure to the benefit of the City and the Grantee, and their respective successors and assigns. Section 17: Ordinances Repealed. The 1961 franchise is hereby repealed and all rights thereunder granted to the Grantee are hereby cancelled and required to be surrendered. Lino Lakes Gas Franchise Ordinance No. 23, entitled "AN ORDINANCE GRANTING UNTO THE UTILITIES COMMISSION OF THE VILLAGE OF CIRCLE PINES, ETC. ", is hereby repealed. Village of Lino Lakes Ordinance No. 29, entitled "AN ORDINANCE AMENDING ORDINANCE NO. 28, ETC." is hereby repealed. COUNCIL MEETING_ November 24, 1986 Section 18: Effective Date The Ordinance shall be effective thirty (30) days after its passage and publication as required by City Charter. Passed by the Council of the City of Lino Lakes this 94 day of November , 1986. ATTEST: en j a i n G. enson , Mayor Marilyn G. Anderson, Clerk - Treasurer CONSIDERATION OF A JOINT RESOLUTION #48 -86 ESTABL- ISHING THE NUMBER OF MEMBERS ON THE CIRCLE PINES PUBLIC UTILITIES COMMISSION Mr. Marier explained that the Commission will consist of five mem- bers of which one will be a Lino Lakes resident. When the total Circle Pines gas sales and other gas related charges in Lino Lakes reaches and maintains for a period of twelve months a level of 45% the Utilities Commission will be made up of two Lino Lakes members and three Circle Pines members. The Council was concerned that Circle Pines would deny approval of the Lino lakes representative. Would it be possible that Circle _Pines could continue to deny approval of each new prospective Lino Lakes member so that there is never a Lino Lakes member. There was a suggestion that a stipulation be included stating that Circle Pines Utility Commission could not meet until a Lino Lakes member is accepted. Mr. Hawkins felt this would not be a problem, if Circle Pines rejects the Lino Lakes .member, they must state the reasons for rejection. Mr. Bohjanen asked who would prepare the criteria for appointing the Lino Lakes member. Mayor Benson said this will be an important position because this person will have a voice in the expenditures of the gas system. Mr. Hawkins noted that the Lino Lakes member will have full voting rights including considerations of regarding Circle Pines sewer and water issues. Mr. Marier moved to approve Resolution #48 -86 and to dispense with the reading. Mr. Bisel seconded the motion. Motion passed with Mr. Bohjanen voting no. 1 1 1 1 COUNCIL MEETING November 24, 1986 JOINT RESOLUTION #48 -86 CITY OF CIRCLE PINES CITY OF LINO LAKES COUNTY OF ANOKA STATE OF MINNESOTA JOINT RESOLUTION OF THE COUNCILS OF THE CITIES OF CIRCLE PINES AND LINO LAKES SETTING THE NUMBER OF MEMBERS TO SERVE ON THE CIRCLE PINES PUBLIC UTILITIES COMMISSION, AND SETTING THE NUMBER OF MEMBERS TO BE RECOMMENDED BY THE COUNCIL OF THE CITY OF LINO LAKES. WHEREAS, there has been enacted by the Minnesota Legislature a special law, Laws 1985 Chapter 90, providing that the Cities of Circle Pines and Lino Lakes may determine, by joint resolution, the number of members to .serve on the Circle Pines Public Utilities Commission ( "the Utilities Commission "); and WHEREAS, the Councils-of said Cities have approved said special law by joint resolution; and WHEREAS, the Councils of the Cities have determined the number of members to serve on the Utilities Commission; and WHEREAS, the Circle Pines Council has enacted or will enact an Ordinance embodying the terms of this joint resolution; and WHEREAS, the Cities have entered into an agreement, effective , 1986, whereby the City of Lino Lakes has granted a franchise to the City of Circle Pines, by and through its Utilities Commission, to operate a gas distribution system in the City of Lino Lakes. NOW, THEREFORE, BE IT RESOLVED by the Councils of the Cities of Circle Pines and Lino Lakes as follows: 1. Number of Utilities Commission Members. The membership of the Utilities Commission shall consist of five (5) natural persons appointed by the Circle Pines Council. 2. Members Recommended by the Lino Lakes Council. One (1) member of the Utilities Commission shall be a person who has been recommended by the Lino Lakes Council and approved pursuant to the procedure hereinafter set forth: The Lino Lakes Council shall submit its recommendation in writing to the City.Administrator of the City of Circle Pines. The Circle Pines Council shall approve the person recommended by the Lino Lakes Council if that person is a resident of the City of Lino Lakes, meets any reasonable requirements for membership on the Utilities Commission then applicable 064 COUNCIL MEETING November 24, 1986 to all members, and will act in the best interests of the Circle Pines public utilities in serving on the Utilities Commission. The Circle Pines Council shall approve or refuse to approve the person recommended by the Lino Lakes Council and communicate its decision in writing to the City Administrator of Lino Lakes within thirty (30) days after receiving notice of the Lino Lakes Council's recommendation. In the event the Circle Pines Council refuses to approve the person recommended by the Lino Lakes Council, the ,recommendation and approval procedure set forth above shall be followed until a person recommended by the Lino Lakes Council is approved. 3. Appointment of Lino Lakes Member. The term of the first person recommended by the Lino Lakes Council and appointed by the Circle Pines Council following the date of this joint resolution shall commence on January 1, 1987 and shall terminate on December 31, 1988, or on such other date as is set forth in the then effective Circle Pines ordinance establishing the Utilities Commission. Thereafter, the member appointed pursuant to the recommendation of the Lino Lakes Council shall serve for a term of three (3) years. 4. Additional Member Recommended by the Lino Lakes Council. (a) At such point that Circle Pines' total gas sales and other gas related charges in Lino Lakes reaches and maintains for a period of twelve (12) months a level of forty -five percent (45 %) of Circle Pines' total utility sales and other utility - related charges to all of its utility customers, including its gas customers in Lino Lakes, the Utilities Commission shall include a total of two (2) persons who have been recommended by the Lino Lakes Council. The additional Lino Lakes member shall be recommended and appointed as provided in Paragraph 2 of this Joint Resolution. The effective date of the appointment of the additional Lino Lakes member shall be the day after the expiration of the term of the first Circle Pines member whose term expires after verification by the Utilities Commission that gas sales and other gas- related charges in Lino Lakes has maintained a level of 45% of Circle Pines' total utility sales and other utility- related charges to all of it utility customers, including its gas customers in Lino Lakes. 1 1 1 1 1 COUNCIL MEETING 065 November 4 , PA4 (b) If, during the entire term of any member of the Utilities Commission who has been recommended by the Lino Lakes Council, Circle Pines' total sales of gas and other .gas related charges. in Line Lakes remains below thirty -five percent (35 %) of Circle Pines' total utilities sales and other utility - related charges to all of its utility customers, including its gas customers in Lino Lakes, then the Circle Pines Council shall appoint the successor to said member, and Lino Lakes shall lose its right to recommend a second member, until such time as Lino Lakes requalifies for a second member pursuant to the requirements of Paragraph 4 (2) of this Joint Resolution. 5. Voting Rights. Members on the Utilities Commission recommended by the Lino Lakes Council shall have full voting rights-on all matters before the utilities Commission 6. Contingency. In the event that the above - referenced franchise terminates or expires for any reason and is not renewed, then the term of any Utilities Commission member who was recommended by the Lino Lakes Council shall expire concurrently with the termination or expiration of the franchise. Adopted by the City Council of Lino Lakes 24 day of November . 1986. -- Benjamin G: BeAa , Mayor Marilyn G. Anderson, Clerk- Treasurer Adopted by the City Council of Circle Pines, this 24 day of November , 1986. Administrator -Clerk Mayor COUNCIL MEETING November 24, 1986 SECOND READING, ORDINANCE #11 -86, SIGN ORDINANCE Mr. Bisel moved to approve the second reading. Mr. Bohjanen seconded the motion. Motion failed with Mr. Reinert and Mr. Marier voting, no. FIRST READING, MORATORIUM ON POLE STRUCTURES IN COMMERCIAL AND INDUSTRIAL DISTRICTS, ORDINANCE #12 -86 Mr. Bisel moved to approve the first reading. Mr. Marier seconded the motion. Mrs. Anderson read the ordinance. Motion carried unani- mously. CITY OF LINO LAKES COUNTY OF ANOKA STATE OF MINNESOTA Ordinance No. 12 - 86 AN INTERIM ORDINANCE AMENDING APPENDIX B OF THE LINO LAKES CITY CODE RESTRICTING THE ISSUANCE OF BUILDING PERMITS FOR POLE TYPE CONSTRUCT- ION WITHIN THE CITY OF LINO LAKES, MINNESOTA. I. The Council of the City of Lino Lakes has authorized the Planning and Zoning Board to study the current regulations governing the con- struction of pole type buildings in the Neighborhood Business, Lim- ited Business, General Business, Light Industrial and General Indust rial Districts of Lino lakes. The City Council of the City of Lino Lakes, Anoka County, Minnesota does ordain: II. A moratorium of one hundred - twenty (120) days in length shall be placed on these districts to allow the Planning and Zoning Board to complete the study and present their recommendations to the Council for their action. The Ordinance shall be effective thirty (30) days after its passage and publication as required by City Charter. Passed by the Council of the City of Lino Lakes this 24 November , 1986. day of 066 1 1 COUNCIL MEETING November 24, 1986 CONSIDERATION OF RESOLUTION 155-86 SETTING PUBLIC HEARING ESTABLISHING A TAX INCREMENT FINANCING DISTRICT Mr. Sdhumacher explained that this resolution is calling for a public hearing and sets out four steps: 1) create development district #1; 2) adoption by Lino Lakes of development program #1 for District #1; 3) creation of housing district #1; 4) adoption of tax increment financing plan. Mr. Marier moved to approve Resolution #55 -86. Mr. Bisel seconded the motion. Motion carried unanimously. Mayor Benson asked that all agenda materials be sent with the agenda to allow time for Council Members to review the material. RESOLUTION NO. 55 - 86 RESOLUTION CALLING PUBLIC HEARING ON THE CREATION OF DEVELOPMENT DISTRICT NO. 1 AND THE ADOPTION BY THE CITY OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE CREATION OF HOUSING DISTRICT NO. 1 -1 AND THE ADOPTION OF THE TAX INCREMENT FINANCING PLAN FOR HOUSING DISTRICT NO. 1 -1 BE IT RESOLVED, by the City Council (the "Council ") of the City of Lino Lakes, Minnesota (the "City "), as follows: Section 1. Public Hearing. This Council shall meet on December 22, 1986, at approximately 8:00 P.M., to hold a public hearing on the following matters: (a) the proposed adoption of the City's Development Program for Development District No. 1 and the creation of Development District No. 1, and (b) the proposed creation of Housing District No. 1 -1 and the proposed adoption of a Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Chapter 472A, as amended and Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended. Section 2. Notice of Hearing; Filing of Program. The City .Clerk- Treasurer is authorized and directed to cause notice of the hearing, substantially in the form attached hereto as Exhibit A, to be given as required by law, to place a copy of the Development Program and the Tax Increment Financing Plan on file in the Clerk- Treasurer's office at City Hall and to Imake such copy available for inspection by the public no later than December 8, 1986. COUNCIL MEETING November 24, 1986 That motion for adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted by the City Council of the City of Lino Lakes, Minnesota, on November 24, 1986. ATTEST: Clerk- Treasurer CONSIDERATION OF RATIFYING THE APPOINTMENT OF TERRY WOLD AS DISTRICT FIRE CHIEF Mr. Marier moved to approve the appointment of Terry Wold as District Fire Chief. Mr. Bohjanen seconded the motion. Motion carried unani- mously. Mr. Schumacher said Mr. Wold would be at the Strategic Plan- ning Meeting. CONSIDERATION OF THE ANOKA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP'S PROJECT REQUEST Mr. Schumacher explained this is a request from Anoka County Economic Development partnership to the Anoka County Board of Commissioners for the establishment and funding of the Anoka County Business Net- work. This program provides a central office staffed by an adminis- trator to provide assistance or referral to businesses in the County. Funding will come from the Community Development Block Grant. _ There were several questions about the program which were answered by Mr. Schumacher. 1 Mr. Reinert moved adoption of this project request from ACEDP and that the City Administrator update the Council April, July, October and December on what is happening with this project. Mr. Bohjanen seconded the motion. Motion carried unanimously. 1 1 uor COUNCIL M EETING November 24, 1986 OLD BUSINESS Budget Hearing - Mr. Reinert moved to set the budget hearing for December 22, 1986 at 8:15 P.M. Mr. Bohjanen seconded the motion. Motion carried unanimously. NEW BUSINESS Mr. Al Ross from the audience noted that tonight he had witnessed an accident at the intersection of Lake Drive and Highway #49. He suggested that there be more flashing lights to mark the construction area. The Council asked that Chief Campbell contact the construction company and upgrade the warnings in that area. Mr. Marier suggested that Mr. Al Ross be appointed as the Lino Lakes member to the Circle Pines Gas Utility Commission. He is a member of the negotiating committee, is available and would be acceptable to Circle Pines: Mr. Marier made this a motion, but the motion died be- cause there was not a second. The Council felt it was premature to appoint a member at this time since Circle Pines has not approved the resolution setting the number of positions on the commission. Mayor Benson asked the City Admin- istrator to prepare criteria for selecting a Lino Lakes representative. Strategic Planning Session - Mr. Schumacher said the meeting is set for December 5th and 6th at the White Bear Country Inn. He will have an agenda prepared. Mr. Hawkins has checked the legal aspect of this meeting and the City Clerk will be required to publish a notice of the meeting. Outlot H Drainage - Mayor Benson asked if this has been resolved. Mr. Schumacher explained Mr. Kluegel and Mr. Stahlberg will be meeting on the site November 25, 1986 and will report to the Council on this matter. Mr. Bohjanen moved to adjourn at 9:21 P.M. Mr. Bisel seconded the motion. Aye. These minutes were considered and approvel at a regular couciI meeting on December 8th 1986. MARILYN G. ANDERSON Clerk - Treasurer Mayor RESOLUTION NO. 49 -86 RESOLUTION AWARDING THE SALE OF $475,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1986A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Lino Lakes, Minneso- ta, (City) as follows: Section 1. Sale of Bonds. 1.01. The bid of Norwest Investment Services, Inc. (Pur- chaser) to purchase $475,000 General Obligation Improvement Bonds, Series 1986A (Bonds) of the City described in the Official Terms of Offering thereof is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, the bid being to purchase the Bonds at a price of $ 470.725. plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1988 4.00% 1993 5.40% 1989 4.40% 1994 5.60% 1990 4.70% 1995 5.80 %. 1991 5.00% 19'96 6.00% 1992 5.20% 1997 6.00% The City Clerk- Treasurer is directed to retain the good faith check of the Purchaser on behalf of the City pending completion of the sale and delivery of the Bonds, and to return the checks of the unsuccessful bidders forth- with. The sum of $ 2,850 being the amount offered by the Purchaser in excess of $467,875 shall be credited to the Debt Service Fund created by Section 3. 1.02. The City shall forthwith issue and sell the Bonds in the total principal amount of $475,000, originally dated as of December 1, 1986, the Bonds being in fully registered form and issued in the denomination of $5,000 or any integral multiple thereof, numbered no. 1 upward, bearing interest as above set forth, and which Bonds mature serially on February 1 in the years and amounts as follows: 1 1 1 1 YEAR AMOUNT YEAR AMOUNT 1988 $ 10,000 1993 $15,000 1989 125,000 1994 15,000 1990 125,000 1995 15,000 1991 125,000 1996 15,000 1992 15,000 1997 15,000 In the event that pursuant to federal laws and regulations the City is required to use unexpended Bond proceeds for early redemption of Bonds in order to continue exemption of the Bonds from federal taxation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date after notice is given pursuant to law. Those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All such prepayments shall be at a price of 102% plus accrued interest. The Bonds shall not otherwise be subject to prepayment. The City. may elect on February 1, 1991, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1992. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemp- tion is in part, those Bonds remaining unpaid which have the latest maturi- ty date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. Section 2. Form: Registration. 2.01. Registered Form. The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond shall be dated as of the date of original issue. The interest on the Bonds shall be payable on February 1 and August 1 in each year, com- mencing August 1, 1987, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. • 2..03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: 068 (a) Register. The Registrar shall keep at its principal corpo- rate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, trans- ferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by- the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered -owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be . promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is pre- sented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof suffi- cient to reimburse the Registrar for any tax, fee or other govern- mental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the 1 1 1 1 Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reason- able expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so sur- rendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. 2.04. Appointment of Initial Registrar. The City hereby appoints Norwest Bank Minneapolis, N.A. , as the initial Registrar. The Mayor and the Clerk- Treasurer are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the result- ing corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Clerk- Treasurer shall transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the Clerk- Treasurer and shall be executed on behalf of the City by the signatures of the Mayor and the Clerk - Treasurer, provided that all signatures may be printed, engraved or litho- graphed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certif- icate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same repre- sentative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the Clerk- Treasurer shall deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the contract 069 of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.06. Form of Bonds. The Bonds shall be printed in substantially the following form: 1 1 1 1 [Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1986A Date of Rate Maturity Original Issue CUSIP December 1, 1986 No. _ $ The.City of Lino Lakes; a duly organized and existing municipal corpo- ration in Anoka County, Minnesota (City), acknowledges itself to be indebt- ed and for value received hereby promises to pay to or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, com- mencing August 1, 1987, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presenta- tion and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by , as Bond Registrar, Authenticating Agent and Paying Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevo- cably pledged. In the event that pursuant to federal laws and regulations the City is required to use unexpended Bond proceeds for early redemption of Bonds in order to continue exemption of the Bonds from federal taxation, the City shall use such unexpended Bond proceeds to redeem Bonds on any date after notice is given pursuant to law. Those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All such prepayments shall be at a price of 1022 plus accrued interest. The City may elect on February 1, 1991, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1992. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemp- tion is in part, those Bonds remaining unpaid which have the latest maturi- ty date will be prepaid first. If only part of the Bonds having a common 070 maturity date are called for prepayment, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth in this place. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Clerk- Treasurer and has caused this Bond to be dated as of the date set forth below. _ Dated: CITY OF LINO LAKES, MINNESOTA a■•-41 �iL:w.�% .� City Clerk- Treasurer Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $475,000, all of like original date and tenor, except as to number, maturi- ty date, interest rate and redemption privilege, issued pursuant to a resolution adopted by the City Council on November 24, 1986 (the Resolu- tion), for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full 1 1 1 conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the Home Rule Charter of the City, and of providing money to refund, pursuant to Minnesota Statutes, Section 475.67, in advance of their maturity, the outstanding principal amount of certain general obligation improvement bonds of the city which have been issued for the purpose of providing money for various assessable public improvements in the City pursuant to and in full conformity with the constitution of laws of the State of Minnesota, including Minnesota Stat- utes, Chapter 429, and the Home Rule Charter of the City. This Bond is payable primarily from special assessments against property specially benefited thereby, but constitutes a.general obligation of the City and, to provide moneys for the prompt and full payment of said principal and interest as the same become due, the full faith and credit of the City is hereby irrevocably pledged, and the City Council will levy ad valorem taxes, if required for such purpose, which taxes may be levied on all of the taxable property in the City withcut limitation as to rate or amunt. The bonds of this series are issued only as fully registered bonds in denominations of $5,000 or any integral multiple thereof of single matu- rities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Home Rule Charter of the City, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory or charter limitation of indebtedness. (Form of certificate to be printed on the reverse side of each Bond, following a full copy of the legal opinion.) 071 I certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of Bonds of the City of Lino Lakes, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. City Clerk- Treasurer The following abbreviations, when used in the inscription of 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 UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and trans- fers unto the within Bond and all rights thereunder, and . does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. 1 1 1 1 1 1 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. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this .Bond is held by joint account.) Please insert social security or other identifying number of assignee 072 2.07. The Clerk- Treasurer shall obtain a copy of the proposed approv- ing legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Profes- sional Association, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause the opinion to be printed on each Bo9d, together with a certificate to be signed by the facsimile signature of the Clerk- Treasurer in substantially the form set forth in the form of Bond. The Clerk- Treasurer is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices. Section 3. Security: Payment. 3.01. The Bonds shall be payable from the General Obligation Improve- ment Bonds, Series 1986A Debt Service Fund (Debt Service Fund) hereby created, and the proceeds of any general taxes hereafter levied and special assessments (Assessments) to be levied for the improvements (Improvements) financed by the Bonds are hereby pledged to the Debt Service Fund; provid- ed, however, that special assessments heretofore levied and collected for the City's $750,000 General Obligation Improvement Bonds of 1982, dated October •1, 1982 (1982 Bonds) and special assessments levied for the 1982 Bonds which are received during 1986 and 1987 shall continue to be pledged to the payment of the 1982 Bonds until such time as the General Obligation Improvement Bonds of 1982 Debt Service Fund contains funds sufficient to pay principal and interest when due on those 1982 Bonds which are not refunded by the Bonds, whereupon all further collections of special assess- ments shall be pledged and paid to the General Obligation Improvement Bonds, Series 1986A Debt Service Fund. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in the Debt Service Fund to pay the same, the Clerk- Treasurer shall pay such principal or interest from the general fund of the City and such fund may be reimbursed for such advances out of proceeds of Assessments for the Improvements when collected. 3.02. It is hereby determined that the City will levy Assessments in the principal amount of at least 20% of the cost of the Improvements. It is hereby determined that the estimated collection of Assessments and Taxes for the payment of the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds. The Clerk- Treasurer is directed to file a certified copy of this resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. 3.03. For the purpose of paying the principal of and interest on the Bonds, there is hereby levied upon all of the taxable property in the City a direct annual irrepealable ad valorem tax, which shall be spread upon the tax rolls and collected with.and as part of other general taxes of the City. Such tax shall be credited to the Debt Service Fund and shall be in the years and amounts as follows (year stated being year of levy for collection:: the following year): 1 1 1 1 1 Year Levy 1986 -0- 1987 $29,801 1988 34,838 1989 35,639 1990 2,508 Year Levy 1991 $1,689 1992 839 1993 -0- 1994 -0- 1995 -0- It is further determined that upon the deposit of funds (as hereinafter provided) in the General Obligation Improvement Bonds of 1982 Debt Service Fund, that an irrevocable appropriation to the debt service fund for the 1982 Bonds shall have been made within the meaning of Section 475.61, Subdivision 3 of the Act, and the City Clerk- Treasurer is hereby authorized and directed to certify such fact to and request the County Auditor to cancel any and all tax levies made by the resolutions awarding the sale of and issuing the 1982 Bonds. 3.04. The tax levy herein provided shall be irrepealable until all of the Bonds are paid, provided that the City Clerk - Treasurer may annually, prior to October 10th, certify to the County Auditor the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the County Auditor shall thereupon reduce the levy collectible during such year by the amount so certified. 3.05. It is hereby determined that the Improvements to be financed by the Bonds will directly and indirectly benefit the abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City will cause the Assessments for the Improve- ments to be promptly levied so that the first installment will be collectible not later than 1987 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council shall cause all further actions and proceedings relative to the making and financing of the Improvements financed hereby to be taken with due diligence that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and for the final and valid levy of special assessments and the appro- priation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in the Assessments, the City Council will levy ad valorem taxes in the amount of said current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with the Improvements, the taxes and Assessments levied therefor and other funds appropriated for their payment, and all collections thereof and disbursements therefrom, moneys on hand and balance of unpaid Assessments. 073 (d) The City will cause its books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any interested person upon request. Section 4. Refunding: Findings: Redemption of Refunded Bonds. 4.01. The Refunded Bonds are those $750,000 General Obligation Improvement Bonds of 1982, of the City, dated October 1, 1982, maturing on and after February 1, 1989. It is hereby found and determined that the issuance of the Bonds will result in a reduction of debt service or interest cost to the City on the Refunded Bonds. 4.02. The sum of $ 320,000 received as proceeds from the sale of the Bonds is hereby appropriated and pledged to the General Obligation Improve- ment Bonds of 1982 Debt Service Fund for redemption of the Refunded Bonds. The City Council hereby finds and determines that the funds available and appropriated to the General Obligation Improvement Bonds of .1982 Debt Service Fund will be sufficient, together with the permitted earnings on the investment of said Fund to pay at maturity or redemption all of the principal of, interest on and redemption premium (if any) on the Refunded Bonds. 4.03. The Refunded Bonds maturing on February 1, 1989, and thereafter shall be redeemed and prepaid on February 1, 1987. The Refunded Bonds shall be redeemed and prepaid in accordance with their terms and in accor- dance with the terms and conditions set forth in the form of Notice of Call for Redemption attached hereto as Exhibit C -1 which terms and conditions are hereby approved and incorporated herein by reference. The City Clerk - Treasurer is hereby authorized and directed to forthwith publish the Notice of Call for Redemption in a publication qualified under Section 475.54 of the Act and to send written notices of call to the paying agent for the Refunded Bonds, provided that published notice alone shall be effective. Section 5. Authentication of Transcript; Covenants. 5.01. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and market- ability of the Bonds and such instruments, including any heretofore fur- nished, shall be deemed representations of the City as to the facts stated therein. 5.02. The Mayor, Administrator and City Clerk- Treasurer are hereby authorized and directed to certify that they have examined the Official Statement dated November 11, 1986 prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their know- ledge and belief the Official Statement is, as of the date thereof, a complete and accurate representation of the facts and representations made therein as it relates to the City. 1 1 1 1 5.03. The City hereby covenants and agrees with the holders from time to „time of the Bonds that it will not take or permit to be taken by any of itg:officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take, or cause its officers, employees or agents to take, all affirmative actions within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made appli- cable to the Bonds. 5.04. The bonds of this issue are hereby designated by the City as qualified tax exempt obligations and as a part of its $10,000,000 limita- tion of such obligations within the meaning of Section 902 of the Tax Reform Act of 1986. 5.05. Pending the preparation of definitive Bonds, the Mayor and Clerk— Treasurer may execute, authenticate and deliver a temporary Bond or Bonds which are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any denomination, substantially of the tenor of the definitive Bonds in lieu of which they are issued, in registered form, and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Bond or Bonds may determine, as evidenced by their signing of such Bond or Bonds. If a temporary Bond or Bonds are issued, the City shall cause definitive Bonds to be prepared without unreasonable delay. After the preparation of definitive Bonds, the temporary Bond or Bonds shall be exchangeable for definitive Bonds upon surrender of the temporary Bond or Bonds at the principal office of the Registrar, without charge to the holder. Upon surrender for cancellation of any one or more temporary Bonds the City shall execute and the Registrar shall authenticate and deliver in exchange therefor a like principal amount of definitive Bonds of authorized denominations. Until so exchanged the temporary Bond or Bonds shall in all respects be entitled to the same benefits under this Resolution as definitive Bonds, and interest thereon, when and as payable, shall be paid to the holders of temporary Bonds upon presentation thereof for notation of such payment thereon. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Bisel and upon vote being taken thereon, the following voted in favor thereof: All members and the following voted against: None whereupon said resolution was declared duly passed and adopted. 074 Exhibit C -1 NOTICE OF CALL FOR REDEMPTION $750,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1982 CITY OF LINO LAKES ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN, that, by order of the City Council of the City of Lino Lakes, Anoka County, Minnesota, there have been called for redemp- tion and prepayment on February 1, 1987 all outstanding bonds of the City designated as General Obligation Improve- ment Bonds of 1982, dated October 1, 1982, having stated maturity dates of February.1 in the years 1989 through 1991, both inclusive, and totalling $375,000 in principal amount. The bonds are being called at a price of par plus accrued interest to February 1, 1987, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of First Bank Saint Paul, in the City of St. Paul, Minnesota on or before February 1, 1987. Dated: November 24, 1986. BY ORDER OF THE CITY COUNCIL By Marilyn G. Anderson City Clerk- Treasurer City of Lino Lakes Further Information: Springsted, Inc. Public Financial Advisors 85 East Seventh Place Suite 100 St. Paul, Minnesota 55101 -2143 (612)223 -3000 1