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HomeMy WebLinkAbout05/08/1989 Council MinutesCOUNCIL MEETING MAY 8, 1989 The regular Council meeting was called to order by Mayor Benson at 7:00 P.M., Monday, May 8, 1989. Council Members present: Neal, Bohjanen, Bisel, Reinert. Council Members absent: none. City Attorney, Bill Hawkins; Acting Engineer, John Davidson; Fiscal Agent, David MacGillivrary; Fire Chief, Archie Gay; Fire Commission Member, Neal Benjamin; Building Official, Pete Kluegel; Public Works Director, Don Volk; Planner, John Miller; Administrator, Randy Schumacher and Clerk- Treasurer Marilyn Anderson were also present. CONSIDERATION AND APPROVAL OF MINUTES Board of Review, April 19, 1989 - Mr. Bisel moved to approve these minutes as presented. Mr. Neal seconded the motion. Motion carried with Mayor Benson and Mr. Bohjanen abstaining. Work Session, April 24, 1989 - Mr. Reinert moved to approve these minutes as presented. Mr. Bisel seconded the motion. Motion carried unanimously. Regular Council Meeting, April 24, 1989 - Mr. Bohjanen moved to approve these minutes as presented. Mr. Neal seconded the motion. Motion carried unanimously. CONSIDERATION AND APPROVAL OF DISBURSEMENTS April 28, 1989 - Mr. Bisel moved to approve these disbursements as presented. Mr. Reinert seconded the motion. Motion carried unanimously. May 8, 1989 - Mr. Reinert moved to approve these disbursements as presented. Mr. Bohjanen seconded the motion. Motion carried unanimously. OPEN MIKE Centennial Fire Commission Quarterly Update - Mr. Benjamin told the Council that he is very pleased with the progress of the Steering Committee negotiations and it appeared that an agreement may be reached by the end of May. He noted that there are still a couple of issues that need legal counsel. The first is whether the Fire District can bill the Correctional Facility for fire protection. The second concerns the Rice Creek Chain of Lakes Regional Park. Mr. Benjamin noted a concern regarding the southeast corner of Lino Lakes and the difficulty with providing early response for fire emergencies. He explained that letters had been sent to these residents asking if they would be interested in participating in self- protection services. The response was poor. He suggested that the Fire District look for alternatives to decrease response time for fire station No. 3. 1 1 1 ' COUNCIL MEETING MAY 8, 1989 Mr. Benjamin explained that there is confusion regarding the role of the Fire Commission and its relation to the Steering Committee. Mr. Benjamin said he felt the Fire Commission's number one priority should be fire protection, the Steering Committee would not be involved in the operation of the Fire Department. He also noted that the Fire Commission is looking at reducing the amount of medical rescue responses. He did not see that it could be eliminated entirely. Chief Gay has interviewed eight new prospective firemen. It appears that most of these candidates would respond from station No. 2. Mr. Neal noted the need for a street that would provide faster response time to the southeast section of Lino Lakes. He noted that he also has given Mr. Miller a list of street names that appear to be duplicated. Chief Gay told the Council that an agreement between the three cities would do a lot to increase the morale of the firefighters. Mayor Benson said he felt most issues would be resolved by the end of this month. Mr. Reinert explained that positive progress is being made and he has not reason to believe that there will not be a satisfactory decision soon. Chief Gay said he would report this to the firefighters. Cable TV Update, Mike Cusick - Mr. Cusick handed out material regarding operation of the Cable TV system. He noted that the system is no longer for sale. Mr. Hauser, owner of this system owns six other systems and did sell one. Mr. Cusick report that this system is very healthy, the number of subscribers has increased and is expected to keep increasing. He noted that 43% of available subscribers do sign up. He also noted that rates have increased and he expected them to top out at about $20.00 a month for the basic service. Mr. Cusick also noted that the access cable system is doing well. More people are involved in producing programs. Mayor Benson asked when the Council meetings will be cable cast. Mr. Schumacher explained that he is arranging for some people from Centennial Schools to do this on a part -time basis. He is proposing to start with cable casting of the Planning and Zoning Board and the Park Board and then add the Council later. Mr. Cusick felt all cities would be cable casting the Council meetings within the next two to three years. Mr. Cusick explained the situation regarding the cable sports channel and the situation with WCCO TV. Mr. Bisel expressed his concern regarding the number of areas in Lino Lakes where cable TV is not available because homes are spaced to far apart. He asked how many people in Lino Lakes cannot get cable and what percentage. of people in Lino Lake do not subscribe to the service? Mr. Cusick said he did G' ' COUNCIL MEETING MAY 8, 1989 not have this information available. He did know that this system has been very aggressive in reaching as many homes as possible and in certain places have extended cable TV to areas where there are only twenty homes per mile as opposed to forty homes per mile. Mr. Bisel said he heard that rates have doubled since the system was installed. Mr. Cusick said that rates have doubled since the system was first proposed. He noted that deregulation did have an affect on rates. Mayor Benson thanked Mr. Cusick for his report. ORDINANCE NO. 05 - 89, RENAMING 7TH AVENUE TO WEST SHADOW LAKE DRIVE - SECOND READING Mr. Bisel moved to approve the second reading of Ordinance No. 05 - 89. Mr. Reinert seconded the motion. All Council Members voted yea. Motion passed unanimously. This ordinance can be found at the end of these council minutes. RESOLUTION NO. 33 - 89 PROVIDING FOR ISSUANCE AND SALE OF GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1989A Mr. MacGillivrary gave the Council his written recommendations for the sale of $4,660,000 of Temporary General Obligation Bonds, Series 1989A. The proceeds are to pay for five construction improvements: West Central Trunk Sewer and Water, Sunrise Meadows, South Reshanau Lake Estates IIB and IIIB and Woodridge Estates. All the improvements with the exception of the West Central Trunk will be assessed. Mr. MacGillivrary explained that the primary reason for using a temporary bond is to get a good feel on how the assessments will be paid to the City. There should be substantial prepayment of assessments before the end of the temporary bond and this will reduce the size of the permanent bond. Mr. MacGillivrary noted the need to check with the City Auditor regarding the reporting procedures for cities with debts over $5,000,000.00. He explained that there are other improvements being processed and this will push the added debt in 1989 to over the $5,000,000.00. Bids for the $4,660,000 Temporary General Obligation Bond will be received June 12, 1989 at 11:00 A.M. Mr. Reinert asked what Mr. MacGillivrary expected for rates on this issue. Mr. MacGillivrary explained that rates have come down slightly since the first of the year. Mr. Reinert asked what impact our current bond rating of BAA1 will have on the sale. Mr. MacGillivrary explained that this is a good rating for Lino Lakes and noted other cities with the same rating. There was discussion regarding improving the rating and Mr. MacGillivrary explained the biggest factors are increasing 1 1 COUNCIL MEETING MAY 8, 1989 the reserve levels and controlling debt levels. Mr. Bisel asked Mr. MacGillivrary to assume the "worst case" scenario where interest rates rise extremely high and there is no development in these five areas. Mr. MacGillivrary explained that at the end of the first three year temporary bond another temporary bond could be issued. This would allow six years to lapse before a permanent bond would be sold. Mr. Reinert noted that there are currently a lot of small community meetings with consultants at city hall regarding possible improvements and asked about the long term impact of new development and how it is going to affect future bond issues. He asked that this be a topic at a future council work session. Mr. Bisel moved to adopt Resolution No. 33 - 89 Providing for the Issuance and Sale of General Obligation Temporary Improvement Bonds, Series 1989A. Mr. Reinert seconded the motion. Motion carried unanimously. CONSIDERATION OF ACCEPTING A PORTION OF THE BASEMENTS NEEDED FOR THE WEST CENTRAL TRUNK SEWER AND WATER MAINS Mr. Schumacher explained that two of the necessary easements have been forwarded for Council acceptance. He noted that several other easements will be forwarded shortly. Mr. Reinert moved to accept easements from Margaret G Strauss and Marcel Construction, Inc. Mr. Bisel seconded the motion. Motion carried unanimously. ENGINEER'S REPORT - JOHN DAVIDSON Resolution No. 30 - 89 Awarding Bid for Reshanau Lake Estates South, 3rd Addition - Mr. Davidson explained that at bid opening on Friday, it appeared that Albrecht Excavating, Inc. was low bidder. However, after the bid was reviewed, corrected and recalculated B & D Underground is the actual low bidder. Mr. Davidson gave a brief background report on B & D Underground noting that it is a small company with seven full -time employees. They have at times struggled with projects but if the City awards the bid to the second low bidder the City may have to prove in a court of law that this company is not a responsible bidder. In addition, the company awarded the bid must submit a performance and payment bond prior to the signing of the contracts. Mr. Davidson outlined the background of the second low bidder, Richard Knutson, inc. This is a larger company with a good track record. Mr. Davidson recommended that the bid be awarded to the low bidder, B & D Underground subject to the fact that the City Engineer will have to keep a "good eye" on all of the project. COUNCIL MEETING MAY 8, 1989 Mr. Hawkins told the Council that he has not heard anything about B & D Underground that would be a basis of denial of the bid. Mr. Davidson also explained that there will be testing all during construction and a full -time inspector will be on the job. The performance and payment bond will insurance the project will be completed even if the contractor goes bankrupt. Mr. Reinert moved to approve Resolution No. 30 - 89 Awarding Bid for Reshanau Lake Estates South, 3rd Addition to B & D Underground for $163,414.78. Mr. Bohjanen seconded the motion. Motion carried unanimously. Mr. Reinert asked that progress reports be made to the Council on this project. Resolution No. 30 - 89 can be found at the end of these minutes. Resolution No. 31 - 89 Awarding Bid for Woodridge Estates and Surrounding Area - Mr. Davidson explained that this bid was also received on Friday and there was a wide variation in bids. The low bidder had left $108,000.00 "on the table" and Mr. Davidson contacted him and asked him if he had made an error. The low bidder said no and would perform the work as bid. Mr. Davidson explained the low bidder is C. W. Houle, Inc. Their office is in Shoreview and they have been in the business many years. He had no reservation of recommending the bid be awarded to C. W. Houle, Inc. Mr. Bisel moved to approve Resolution No 31 - 89 Awarding Bid for Woodridge Estates and Surrounding Area to C. W. Houle, Inc. for $630,716.60. Mr. Reinert seconded the motion. Mayor Benson asked how a company could be that far off in their bid. Mr. Davidson explained that they were expecting more competition. Voting on the motion, motion carried unanimously. Resolution No. 31 - 89 can be found at the end of these minutes. PUBLIC HEARING - PROPOSED SPECIAL ASSESSMENTS - D. ERICKSON'S 2ND ADDITION, PHASE II, RESOLUTION NO. 32 - 89 Mayor Benson opened the public hearing at 8:15 P.M. Mr. Davidson explained that the improvement is nearly completed, costs have been computed and landowners have been notified of this hearing. The actual assessment per lot is lower than what was estimated by the City Engineer. Mayor Benson asked if there was anyone in the audience to speak for or against this matter. There was no one. Mr. Bohjanen moved to close the public hearing at 8:17 P.M. Mr. Bisel seconded the motion. Motion carried unanimously. 1 1 1 1 1 1 COUNCIL MEETING MAY 8, 1989 Mr. Bisel moved to adopt Resolution No. 32 - 89 Adopting the Assessment for D. Erickson's 2nd Addition, Phase II. Mr. Reinert seconded the motion. Motion carried unanimously. Resolution No. 32 - 89 can be found at the end of these minutes. PUBLIC HEARING EXCLUDING ROSS' CORNER SHOPPES FROM TAX INCREMENT FINANCING DISTRICT NO. 1 -2 Mayor Benson opened the public hearing at 8:18 P.M. Mr. Miller explained that the City has been working with Mr. Ross for some time to get his planned improvement and property included in District No. 1 -2. Mr. Ross has been working with an architect and has been negotiating financing for his improvement. District No. 1 -2 includes Menkveld's subdivision, Sunrise Meadows. The Building Official has issued five building permits in this subdivision and since the filing of District No. 1 -2 has not been completed at the court house, the tax increment has been lost for these five building permits. The Building Official has seven more building permits waiting to be issued and the City will loose this increment if the permits are issued before the plan is filed at the court house. Mr. Ross has presented a commitment letter from his bank indicating that financing for his project is available provided that certain terms are acceptable to Mr. Ross. Mayor Benson explained that the City is now in the position that it must file the necessary documents at the court house to protect the tax increment in the Sunrise Meadows subdivision. This tax increment is to help finance the West Central Trunk Sewer and Water Mains. Mr. Mark Smith of Business Development Consultants explained that they have agreed to the terms and conditions of the developers agreement, however, the amount of the letter of credit has not been received from the City. When this is included in the developers agreement the agreement will be signed immediately. A closing date has been set for June 15, 1989 with a different bank than the one indicated tonight for financing the entire improvement. Mr. Bisel moved to close the public hearing at 8:36 P.M. Mr. Neal seconded the motion. Motion carried unanimously. Mr. Bisel moved that as of May 10, 1989 at the close of regular city hall business hours Mr. Ross will be eliminated from Tax Increment Financing District No. 1 -2 if he has not completed all the necessary paper work and submitted it to the City. The Tax Increment District No. 1 -2 will be filed excluding Mr. Ross' property. Mr. Neal seconded the motion. Motion carried unanimously. _ i. 1 COUNCIL MEETING MAY 8, 1989 PLANNER'S REPORT - JOHN MILLER Final Plat Approval, Hidden Pond, R. Shoppe - Mr. Miller explained that this is a combination of three two acre lots to make one six acre lot. Mr. Shoppe has determined that he does not want to have immediate neighbors and does not anticipate selling any portion of his property in the near future. He has also been advised by the County Assessor that his land value will be lowered when the lots are combined since there will only be one building site instead of three. The Planning and Zoning Board has approved this request. Mr. Bisel moved to approve P & Z application No. 89 -04. Mr. Bohjanen seconded the motion. Motion carried unanimously. Set Public Hearing for Rezone of Rice Creek Chain of Lakes County Regional Park Reserve to Public Semi - Public - Mr. Bohjanen moved to set the public hearing for June 12, 1989 at 7:30 P.M. Mr. Reinert seconded the motion. Motion carried unanimously. Mayor Benson noted that he has heard that the matter of the Chomonix Golf Course building is moving in a positive direction. Mr. Schumacher explained that this matter will be on the P & Z agenda for this coming Wednesday. UPDATE ON STATUS OF EMERGENCY WARNING SYSTEM INSTALLATION Mr. Volk presented a map showing the location of the two sirens currently in operation and the areas that they cover. He noted that one additional siren is in the 1989 budget and the VFW has agreed to purchase the fourth siren. Both of these sirens will be installed this summer. Mr. Volk explained that by the end of 1990, 90% of the populated area in Lino Lakes will be covered with warning sirens. Mr. Bohjanen indicated that the VFW may also help the City of Centerville upgrade their siren system. LIAISON REPORTS Planning and Zoning Board, Mayor Benson /Mr. Bisel - Mr. Bisel noted that the Tilsen multi - family subdivision was reviewed by the P & Z Board and there was discussion of the building that was illegally installed on the Chomonix Golf Course. Park Board, Mr. Neal - Mr. Neal noted that the Park Board has not yet met for the month of May. He said the Arbor Day celebration was very good and felt everyone involved did an excellent job. The weather was not cooperative and this may be the reason that the turn -out was poor. Mr. Neal told the Council that the-prison has fifteen (15) persons available for tree planting in the open spaces and 1 • COUNCIL MEETING MAY 8, 1989 parks of this City. They have their own equipment and will be available all summer. The prison assumes all liability for these fifteen (15)people. 113 Economic Development Committee, Mayor Benson /Mr. Bisel - Mayor Benson noted that several members of this Committee and some Council members did travel to Michigan to tour an "outlet shopping mall ". Mr. Glenn Rehbein owner of the property where this type of mall is proposed is negotiating for installation to begin as soon as possible. Mayor Benson felt his chances of success were 70 to 80 percent. Mr. Bisel and Mr. Miller will have a meeting with the Council to update them on this matter. Centennial Fire District, Mayor Benson /Mr. Reinert - Mr. Reinert explained that the movement of the Steering Committee is positive but not as fast as originally planned. There will be another meeting of the Steering Committee on May 17, 1989 and the discussion will include penalties for withdrawal. Funding and location of various fire halls still have to be addressed. Mayor Benson noted that the first payment into the capital improvement program has been delayed until 1990. This payment will go into a pool that will be spent on a scheduled basis. Mr. Reinert noted that the length of the new agreement has not been finalized. Mr. Schumacher and Mr. Keinath from Circle Pines will put together a proposed formula for the purchase of equipment. Mayor Benson said there will be two meetings in May and a presentation will be prepared for each of the three city councils. OLD BUSINESS Discussion of Implementing Solid Waste /Recycling Program - Fran Kurk - Mrs. Kurk used the overhead projector to explain a volunteer solid waste recycling program for Lino Lakes. She has contacted all of the major refuge haulers in Lino Lakes and Ace Solid Waste and Lake Sanitation have agreed to collect metal, glass and plastic items for recycling. Paper will not be collected but residents can drop off paper at the two Boy Scouts sites in Lino Lakes. Mrs. Kurk showed the Council a number of items that were manufactured from recycled materials. Mayor Benson asked how would we begin to educate the Lino Lakes citizens about recycling. Mrs. Kurk explained a program she and Mr. Volk have put together. The programs includes flyers and newspaper articles. As the City gets further into the programs other educational materials -will be COUNCIL MEETING MAY 8, 1989 available to the City. Mrs. Kurk was asked if containers would be made available to residents. Mrs. Kurk explained that a good container costs about $8.00 to $10.00. If the City were to purchase the containers, the expense would probably take most of the Waste Abatement budget. However, citizens may not comply with the program if they have to buy the containers. There were suggestions regarding how a container could be earned or possibly won by the residents. Mr. Reinert asked that neighboring communities be called and asked how they handle this part of the program. Mrs. Kurk noted that several ordinances will have to be passed to implement the Waste Abatement Program. Collections will have to be organized as well. She suggested that the City could be divided into several areas with just one hauler serving this one area. There was discussion regarding allowing the City to bid a garbage hauling contract and then assessing every household for the service. Mr. Bisel expressed concern because other governmental agencies sometimes do not give projects a lot of thought before they mandate implementation. He said he was not sure that Lino Lakes was ready for this program. There is a lot of work to be done; advertising, incentives, preparation of brochures and contact with haulers. Mr. Volk explained that the City wide mailing would be completed before June 1st. Mr. Bisel said he would welcome any support from other organizations in Lino Lakes. Mr. Bisel noted a deeper concern and that is how will those residents who have never contracted with a hauler be addressed. This program is not likely to change their attitude regarding how they handle their own refuge. Mr. Volk outlined the several phases of the program; phase I, volunteer program with initial brochures sent to residents by June 1; phase II will require residents to have contracted with a license hauler, and phase III will be working toward organized collection, possibly designating areas for specific haulers. Mayor Benson noted that the success of the program depends on the items being separated in the home. He asked how do you accomplish this especially when there are children in the home. Mr. Volk explained that part of the educational program will be going directly to the children in the schools. Mr. Volk asked for Council approval of the first phase so that the June 1st brochure can be mailed to the residents. Mr. Reinert moved to approve. the implementation of the Solid Waste /Recycling Program and asked that Mr. Volk and Mrs. Kurk 1 COUNCIL MEETING MAY 8, 1989 come back to the Council with time tables and outlines of the program. Mr. Neal seconded the motion. Motion carried unanimously. Mayor Benson referred to a Council Work Session with Mr. Schumacher on February 11, 1989 and noted several items he would like addressed including non - union employee salary adjustments, newsletter and feedback to the Council on a bi- weekly basis. Mr. Schumacher explained that the non -union salary study should be completed within the next two weeks and he will set a special meeting with the Council on this matter. Mayor Benson asked if the format has been established for employees to give feedback regarding the City Administrator. Mr. Schumacher said it has not been distributed to the Department Heads to date. Mayor Benson asked for an update as soon as possible. Mayor Benson explained that he has received several telephone calls regarding the recently adopted ordinance changing Chapter No. 8 of the Lino Lakes City Charter. One concern appears to be in reference to the ability of the City to use General Fund money for repayment of a general obligation bond if assessments are running short. Mr. Hawkins explained that now bonds can be issued according to Chapter 429 of the State Statutes. Mr. Schumacher explained that this is the portion of the Charter where the Bond Attorney had problems. NEW BUSINESS Petition Regarding 24th Avenue (Elmcrest Avenue) - Mr. Schumacher explained a petition has been received to upgrade 24th Avenue. The Hugo citizens have recently visited their City Council regarding this matter. Mr. Schumacher suggested that the next step is to set up a meeting with the Hugo staff to determine what their options are. This would be an expensive project because of poor soil conditions. Mr. Bisel asked how many gravel roads are left in Lino Lakes. Mr. Volk said about ten (10) miles of roadway. Mr. Bisel said he felt one City objective should be getting these roads upgrade. Mayor Benson said that financing such improvements would be the first concern. He asked that Mr. Volk put together budget and proposal for financing this objective. Mr. Miller noted that he had sent a memorandum to the Council on Friday asking the Council to set a public hearing for Mr. Robert Simons Conditional Use Permit request. Mayor Benson asked if this matter had been considered by the P & Z Board and Mr. Miller explained that it would be addressed this coming Wednesday evening. Mayor Benson said he hesitated to order the public hearing prior to any P &.Z Board action. Mrs. Anderson explained that the public hearing could be set 114 COUNCIL MEETING MAY 8, 1989 at the May 22 Council meeting for June 12th since there are three weeks between Council meetings. Mr. Volk explained that there was a water main break on Black Duck Drive in the same area as a break earlier this spring. He noted that Lino Lakes has not experienced many of these failures but expects that this situation may change because new mains are being constructed each year. Mr. Neal noted that the manhole in his street appears to be moving up and down with the weather conditions. Mr. Volk explained that it was the street that was moving up and down. Mr. Schumacher referred to an Action Alert bulletin from the League of Minnesota Cities regarding severe tightening of the levy. He has prepared a letter on behalf of the City Council on this matter opposing the proposals now before the legislature. Mr. Schumacher explained that he has met with staff from the City of Shoreview regarding Ash Street (County Road J). Ramsey County has now included this street in their 1990 capital improvements program. He will check with Anoka County to see if they have done the same. Mr. Schumacher told the Council that he has met with the staff from the City of Shoreview to discuss a temporary hook up to their water system to service the Woodridge Estates area. This means another Joint Powers Agreement with Shoreview. Mr. Bisel was concerned that Lino Lakes place their own pipe in the ground and only the connection be made. Mr. Schumacher explained that there is a termination clause in the Agreement that would allow this City to construct our own water main if growth warrants it. This connection will save about $130,000 on the Woodridge Estates improvement at this time. Mayor Benson asked for cost estimates for both the temporary connection to Shoreview and extension of the Lino. Lakes water main to this area. League of Minnesota Cities Conference — Mr. Reinert, Mr. Neal and Mr. Volk indicated that they would be attending this conference. Mr. Bisel moved to adjourn at 10:02 P.M. Mr. Reinert seconded the moton. Aye. 1 1 1 CITY OF LINO LAKES COUNTY OF ANOKA STATE OF MINNESOTA Ordinance No. 05 - 89 AN ORDINANCE RENAMING A PUBLIC STREET KNOWN AS 7TH AVENUE TO BE HEREINAFTER CALLED WEST SHADOW LAKE DRIVE Pursuant to the authority granted by M. S. A. S412.221, Subd. 18, the City Council of the City of Lino Lakes, Anoka County, Minnesota, does ordain: I. The following described public street is hereby renamed and said public street shall hereinafter be called West Shadow Lake Drive: The public street dedicated to the City of Lino Lakes or Anoka County, Minnesota according to the map thereof on file and of record in the office of the County Recorder in and for Anoka County, Minnesota, known and described as 7th Avenue. II. This Ordinance shall be in full force and effect from and after its passage and publication according to the Lino Lakes City Code. Passed by the City Council this day of May, 1989- Marilyn G. Anderson, Clerk - Treasurer enjam G. Benson, Mayor Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, May 8, 1989, commencing at 7:00 P.M. The following members of the Council were present: Mayor Benson, Members Bisel, Bohjanen, Neal, and Reinert and the following were absent: None * * * * * * * ** The following written resolution was presented by Member Bisel who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 33 -89 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $4,660,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1989A BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (City) as follows: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 and the City's home rule charter (collectively referred to as the Act): 1 1 1 1 Project Designation & Description: Total Project Cost 1989 Improvement Projects Nos: 8976, 9196, 9013, 9185, 9401, 9191 Construction $4,120,767 Capitalized Interest 496,020 Subtotal $4,616,787 Discount 46,600 Reinvestment Earnings (3,387) TOTAL $ 4,660,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $4,660,000 General Obligation Temporary Improvement Bonds, Series 1989A (Bonds) pursuant to the Act to provide temporary financing for the Improvements. 2. To provide temporary financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $4,613,400. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $46,600. The excess of the purchase price of the Bonds over the sum of $4,613,400 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: 117 1x8 OFFICIAL TERMS OF OFFERING $4,660,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1989A Sealed bids for the Bonds will be opened by the City on Monday, June 12, 1989, at 11:00 A.M., Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated July 1, 1989, as the date of original issue, and will bear interest payable on January 1 and July 1 of each year, commencing January 1, 1990. Interest will be computed upon the basis of a 360 -day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature July 1, 1992. OPTIONAL REDEMPTION The City may elect on July 1, 1991, and January 1, 1992, to prepay Bonds due on July 1, 1992. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, 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. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefited property. The proceeds will be used to finance various improvement projects within the City. TYPE OF BID A sealed bid for not Tess than $4,613,400 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $46,600, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Bidders shall specify a single rate from the date of the Bonds to the date of maturity. - _. • -i- 1 1 1 1 9 AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the Registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SE I I LEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the Purchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no- litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City, or its designee, not later than 1:00 P.M., Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non - compliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 50 copies of the Official Statement. Dated May 8, 1989 BY ORDER OF THE CiTY COUNCIL Is/ Marilyn G. Anderson Clerk- Treasurer 3. The Clerk - Treasurer is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, June 12, 1989, to consider bids on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Reinert, and upon vote being taken thereon the following members voted in favor of the motion: Mayor Benson, Members Bisel, Bohjanen, Neal and Reinert and the following voted against: None whereupon the resolution was declared duly passed and adopted. 1 Exhibit A NOTICE OF BOND SALE $4,660,000 GENERAL_ OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1989A CITY OF LINO LAKES, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 11:00, a.m., C.T. on Monday, June 12, 1989, in the offices of Springsted, Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101 -2143, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:00 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated July 1, 1989, will bear interest payable semiannually on each January 1 and July 1, commencing January 1, 1990, and will mature on July 1, 1992. The City may elect on July 1, 1991 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part by lot at a price of par plus accrued interest to date of re- demption. Bidders must specify a price of not less than $4,613,400 plus accrued interest. A legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minne- apolis, Minnesota. The proceeds of the bonds will be used to finance a portion of the costs of various assessable public improvements in the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk- Treasurer Dated: May 8, 1989. (). STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting Clerk - Treasurer of the City of Lino Lakes, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, May 8, 1989, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $4,660,000 General Obligation Temporary Improvement Bonds, Series 1989A of the City. WITNESS My hand as City Clerk - Treasurer and the corporate seal of the City this i) day of I!:'' City Clerk- Treasurer , 1989. City of Lino Lakes, Minnesota (SEAL) L6:05270589.RAU 1 1 CITY OF LINO LAKES RESOLUTION NO. 30 - 89 RESOLUTION ACCEPTING BID FOR THE IMPROVEMENT OF RESHANAU LAKE ESTATES SOUTH, PHASE IIb (3RD ADDITION) WHEREAS: pursuant to an advertisement for bids for the improvement of Reshanau Lake Estates South, Phase IIB (3rd Addition), bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: CONTRACTOR AMOUNT B. & D. Underground Richard Knutson, Inc. Northdale Construction Annandale Contracting Albrecht Excavating, Inc. Nodland Construction C. W. Houle, Inc. Burschville Construction F. M. Frattalone Arcon Construction Volk Sewer & Water $163,414.78 170,478.35 173,946.83 174,793.86 180,688.84 184,525.40 193,464.80 201,875.29 203,213.02 214,944.79 223,719.29 AND WHEREAS, it appears that B. & D. Underground of 2950 Long Lake Road, Roseville, Mn. is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Mayor and Clerk are hereby authorized and directed to enter into the attached contract with B & D Underground of 2950 Long Lake Road, Roseville, Mn. in the name of the City of Lino Lakes for the improvement of Reshanau Lake Estates South, Phase IIB, (3rd Addition) according to the plans and specifications therefor approved by the City Council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the Lino Lakes City April, 1989. is 24t, :enson, Mayor Benjam yn nderson, Clerk - Treasurer 123 3. �.4 1 CITY OF LINO RESOLUTION NO. 31 — 89 RESOLUTION ACCEPTING BID FOR THE IMPROVEMENT OF WOODRIDGE ESTATES I & II AND SURROUNDING AREA WHEREAS: pursuant to an advertisement for bids for the improvement of Woodridge Estates I & II and surrounding area, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: CONTRACTOR AMOUNT C. W. Houle, Inc. F. M. Frattalone Richard Knutson, Inc. Kenko, Inc. Brown & Cris, Inc. Arcon Construction Landwehr Heavy Moving Northdale Construction $630,716.60 738,800.00 759,107.55 778,695.66 824,603.80 836,536.92 885,577.75 1,051,741.75 AND WHEREAS, it appears that C. W. Houle, Inc., 1300 West. County Road I, Arden Hills, Mn. is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Mayor and Clerk are hereby authorized and directed to enter into the attached contract with C. W. Houle, Inc., 1300 West County Road I, Arden Hills, Mn. in the name of the City of Lino Lakes for the improvement of Woodridge Estates I & II and surrounding area according to the plans and specifications therefor approved by the City Council and on file in the office of the City Clerk. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted by the Lino Lakes City,eouncil this 8th day-of May 1989. \ / Mar ly�nderson, Clerk — Treasurer B�njamin Benson, Mayor 1 1 1 1 CITY OF LINO LAKES RESOLUTION NO. 32 - 89 RESOLUTION ADOPTING ASSESSMENT FOR THE IMPROVEMENT OF D. ERICKSON'S 2ND ADDITION, PHASE II WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the above improvement of D. Erickson's 2nd Addition, Phase II. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years, the first of the installments to be payable on or before the first Monday in January, 1990 and shall bear interest at the rate of nine (9) per cent per annum from the date of the adoption of this assessment resolution. to the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 1989. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this resolution; and he may at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31, of the year in which such payment is made. Such payment must be made before October 15, or interest will be charged through December 31 of the next succeeding year. 4. The Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. PAGE 1 CITY OF LINO LAKES Adopted by the County this 8th day of May, 1989. Benjamin� Benson, 'ayor Mari PAGE 2 .Anderson, Clerk - Treasurer 1