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Home My WebLink About07/08/1991 Council Minutes (2)1 1 1 COUNCIL MEETING CITY OF LINO LAKES COUNCIL MINUTES JULY 8, 1991 DATE • TIME STARTED : TIME ENDED • MEMBERS PRESENT: MEMBERS ABSENT : July 8, 1991 6:40 P.M. 10:27 P.M. Bisel, Bohjanen, Kuether, Neal, Reinert None Mayor Bisel called the regular session of the Lino Lakes City Council to order on Monday, July 8, 1991 at 6:40 P.M. City staff present: City Engineer's, Dan Boxrud and Darrell Schneider; Attorney, Bill Hawkins; Public Works Director, Don Volk; Planner, John Miller; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. CONSENT AGENDA ITEM DISPOSITION DISBURSEMENTS: June 30, 1991 July 8, 1991 Centennial Fire Department OPEN MIKE No one appeared under Open Mike. CONSIDERATION AND APPROVAL OF MINUTES Approved Approved Approved Work Session (5:30 P.M.), June 24, 1991 - Council Member Neal moved to approve these minutes as presented. Council Member Reinert seconded the motion. Motion carried with Council Member Kuether abstaining. Regular Council Meeting, June 24, 1991 - Council Member Bohjanen moved to approve these minutes as presented. Council Member Neal seconded the motion. Motion carried with Council Member Kuether abstaining. Work Session (10:00 P.M.), June 24, 1991 - Council Member Neal moved to approve these minutes as presented. Council Member Reinert seconded the motion. Motion carried with Council Member PAGE 1 253 254 COUNCIL MEETING JULY 8, 1991 Kuether abstaining. RESOLUTION NO. 61 - 91 AWARDING THE SALE OF $4,260,000.00 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A Mr. David MacGillivray, Springsted, Inc. explained that bids were received this morning on this bond issue. He gave the Council copies of each of the four bids. Mr. MacGillivray explained that the proceeds of this bond will refinance a small portion of the 1988 General Obligation Temporary Improvement Bond and five subdivision improvements currently in progress and the construction of the Reshanau Trunk Sewer currently in progress. Mr. MacGillivray noted that FBS Investment Services, Inc. was low bid. This bid is very close to the estimate he had prepared and Mr. MacGillivray recommended approval of this bid. Mr. MacGillivray explained that because of the size of this bond issue ($4,260,000.00), Juran & Moody's in New York reviewed the credit rating for this City. A BAA rating was issued which is the same as last year. Mr. MacGillivray explained that it is normal to receive this number of bids with this credit rating. Council Members asked Mr. MacGillivray questions regarding how the credit rating was established. Mr. MacGillivray explained the process. He also presented a Connection Report to the Council and explained that this is a method of monitoring whether or not the connections projected for each new development is actually occurring. Mr. MacGillivray explained that the Council will receive updated copies of this report at least annually. He noted that it is essential that growth is focused where improvements are already in the ground and where connection charges are needed to pay for the improvement bonds. Council Member Kuether asked what would happen if the housing market completely stopped. Mr. MacGillivray explained that the City has a developers agreement with the developer. This agreement says that approximately three years of assessments must be guaranteed by a letter of credit. This allows the City time to acquire the property in the event that taxes and assessments are not being paid as agreed. Council Member Reinert moved to accept Mr. MacGillivray's recommendation and award the bid to FBS Investment Services, Inc. for $ 4,260,000.00. Council Member Kuether seconded the motion. VOTING ON THE MOTION: Bisel Neal Bohjanen Reinert El Kuether PAGE 2 1 1 COUNCIL MEETING Abstained: none Motion carried un Resolution No. 61 RESOLUTION NO. 68 AGREEMENT FOR USE ASSOCIATION JULY 8, 1991 animously. - 91 can be found at the end of these minutes. - 91 AUTHORIZING JOINT AND COOPERATIVE OF PERSONNEL AND EQUIPMENT, REGIONAL MUTUAL AID Mr. Volk explained that in 1989, the Regional Mutual Aid Association was established to aid a sister city or county in time of disaster. It had been the experience of some cities that any given government agency may not be able to handle a disaster with its own resources. Because of this, the Public Works Director's of this area developed an association and to date approximately 49 cities and counties are members. The joint agreement was given to the Council Members in their packet. It explains all the provisions of the agreement. Council Member Kuether moved to accept the recommendation of the Public Works Director and approve Resolution No. 68 - 91. Council Member Bohjanen seconded the motion. Motion carried unanimously. Resolution No. 68 - 91 can be found at the end of these minutes. CONTINUATION OF THE PUBLIC HEARING, AMELIA LAKE ESTATES REZONE, ORDINANCE NO. 10 - 91 Mr. Miller explained that this matter was before the Council on June 24, 1991 and public testimony was taken at that time. The Council requested that staff meet with area residents to answer questions and explain the planned development. This meeting was held on July 1, 1991. Mr. Miller has received correspondence from the Metropolitan Council stating that the Comprehensive Plan Amendment request has been received and approved by the Metropolitan Waste Control Commission. The Amendment has been forwarded to Metropolitan Council and this body will consider the Amendment probably within the next two weeks. Since the Metropolitan Council has not approved the Amendment, the Council will be unable to make a decision on the rezone request this evening. There is a Tax Increment Financing (TIF) public hearing scheduled this evening as well and a preliminary plat hearing and an improvement hearing. The Council will be unable to take action on any of these matters until after the Metropolitan Council approves the Comprehensive Land Use Plan Amendment. Mr. Miller suggested that PAGE 3 255 256 COUNCIL MEETING JULY 8, 1991 the Council hold the public hearings this evening and take no further action until after the Metropolitan Council takes action. Mr. Miller explained that he had met with the neighboring residents and tried to inform them of the development planned for this area. One (1) question asked at that meeting was what would happen if the area were rezoned to Single Family Residential (R- 1). Mr. Boxrud estimated that approximately the same number of housing units could be located on the property, however the developer would not be able to meet all set back requirements and units would be lost. The developer must be able to develop the number of units that are proposed in the town house proposal to make the project financial feasible. Because the area is long and narrow and because of the ponds and shore land set back requirements, it is not financially possible to develop the area into single family lots. The Council must consider either the plan presented tonight or some other multi- family development or simply divide the area into two (2) 10 acre parcels. Mr. Miller noted that staff has met with John Steine of the DNR and a letter has been received from the DNR stating their official position. The set back from the lake shore is acceptable as shown on the current preliminary plat plan. Mr. Miller explained that by rezoning to PUD, the Council will be able to vary the shore land setback requirement. Mr. Hawkins explained that a separate variance will not be required since approval of the PUD means approval of all variances required to meet the specifications of the PUD. Mayor Bisel opened the public hearing at 10:30 P.M. He asked that a letter from Concerned Local Residents be accepted into the record as well a letter from Mr. Lee Jester, 6101 Centerville Road, the Sierra Club and Mr. Art Hawkins who are all opposing the development. Mr. Art Hawkins, 6101 Centerville Road stated that he was aware that local governments were required to prepare a Comprehensive Land Use Plan. He was also aware that the Lino Lakes plan was updated in October, 1990 and this update does not include the proposal that is before the Council this evening. He said he felt that since the most recent update did not include the Amelia Lake development, this development was a "spur of the moment" project and not in the long range plan. Mr. Hawkins referred to the Comprehensive Land Use Plan several times and noted that the Metropolitan Council has classified Lino Lakes as generally rural in nature. Mr. Hawkins felt this would mean that Lino Lakes could only develop according to rural standards which is four (4) housing units per 40 acres. He noted that any other development would be in conflict with the Lino PAGE 4 1 1 1 1 1 1 COUNCIL MEETING JULY 8, 1991 Lakes Comprehensive Land Use Plan. Mr. Hawkins asked what are the proposed growth patterns for Lino Lakes. He said he felt this present Council policy is not controlled growth. He said he liked much of what the Comprehensive Plan said but it lacked a clear understanding of the number of residential units versus the open space plan. Mr. Hawkins asked if his property was included in MUSA. If it is, why was this not brought to his attention. Bob Johnson, 1900 Bloom Court, noted that his property is very near the proposed town home project. He explained that he had attended the informational meeting and felt good that the citizens were given the opportunity to be heard. He expressed concern about the "tricky way things are going about ". He asked if the feasibility study had been extended to Phase II and Phase III of the development. He said trying to address the three Phases as separate issues was unfair. He also asked how the salability of Phase I would affect Phase II and Phase III. Mr. Johnson recommended that an EAW be completed on the entire development. He explained that about 50 to 60 different agencies would be addressing the development if an EAW was requested. Mr. Johnson noted that Mr. Birch has invested a lot of money in this development and he felt many issues should have been resolved prior to this investment. Mr. Johnson asked if Mr. Birch had certain assurances from the Council that the project would be completed? Mr. Johnson explained that there were some hard feelings created at the informational meeting. He noted that the information was directed to neighbors who have a vested interest in the area. He said the citizens were insulted when Mr. Birch seated his children in the audience to act as his spokes persons. Mr. Johnson said he felt that this was unprofessional and showed an attitude of "do whatever is necessary to get this project through ". Mr. Johnson asked the Council to view his findings and facts against those of Mr. Birch and Mr. Miller. He also said it was difficult to comprehend a study that showed less building would not be feasible. He noted that once Phase I is completed the balance of the area will be developed in the same manner. Mr. Johnson explained that the present development in the area has made the bay a permanent part of Amelia Lake. He asked the Council to go to the site and look it over. Kirk Hawkinson, 1909 Birch Street asked if the price of $175,000.00 is for one (1) residential unit or one (1) twin home? He asked how close are the buildings to the ponds? Mayor Bisel said that this would be discussed during the preliminary plat hearing. Mr. Hawkinson asked if just the south 20 acres were PAGE 5 258 COUNCIL MEETING JULY 8, 1991 rezoned, does this open up the entire area to be rezoned in the same manner? Would this be setting a precedent? Mark Winiecki, 6387 - 20th Avenue explained that he had received a telephone call from Mr. and Mrs. Roland Wong and they were "overwhelmed" by the proposed development. Mr. Winiecki read the letter to the Council. Mrs. Jacqueline Farm, 6209 Centerville Road reada.presentation from the Concerned Residents Living Near the Proposed Project. She noted that this project has brought a lot of residents together who did not know one another previously. She presented the letter to the Council and noted that it was signed by several residents who attended this meeting. Gerald Rehbein, 6266 Otter Lake Road explained that he has lived in the area for more than 40 years and said he would "love" to see something done with the gravel pit area. He noted that he had talked to 20+ residents who also feel that the best use of the area is as proposed by Mr. Birch. Ron Birch, 3788 LaBore Road explained that he purchased the property (gravel pit) in 1986. He noted that he attended all of the task force meetings during the revision of the Lino Lakes Comprehensive Land Use Plan and all meetings held when Metropolitan Council representatives were present. During this time he personally gave input into the process. Also, during this period of time a feasibility report was prepared by White Bear Township and it was stated that sewer and water utilities was available to Lino Lakes through White Bear Township. The gravel pit area was to be protected by the Comprehensive Land Use Plan until the sewer and water utilities were available. Mr. Birch gave dates when he appeared before the Council and dates when action was taken by the Council making sewer and water utility service available to his property. In December, 1990, knowing that the utility service was available and experiencing many problems over the years because of unauthorized dumping by the public, Mr. Birch presented a request for a berm on the property. The Council conducted a hearing and the berm permit was issued. During this period of time Mr. Birch consulted with several City staff members, realtors and bankers trying to determine if development should be attempted. In February, 1991 Mr. Birch appeared before the Council with a sketch plan which was approved. On March 11, 1991 the City Council set the public hearing for the Comprehensive Land Use Amendment that would allow development of the property. Mr. Birch explained that he starting working with the DNR in 1986 on how the property could be developed. He noted that in May, PAGE 6 1 1 1 1 1 1 COUNCIL MEETING JULY 8, 1991 1991 a lengthy development procedure was approved and the development was approved by the Vadnais Water Management Organization. Mr. Birch explained that he has been before the Park Board, the DRB and on June 20, 1991 White Bear Township gave approval of the extension of the utilities by a joint powers agreement. Mr. Birch noted that this process has taken a long time and he has worked with many agencies. Streets will have to be constructed to City standards although they will be private streets maintained by the homeowners organization. Environmental concerns have been addressed. DNR presented strict requirements and complimented Mr. Birch's engineers who designed ponds that are larger than needed. Mr. Birch said he was trying to do a nice project. He said he felt that he had accomplished all of the goals set before him. He noted that to make the project work, both the south 20 acres and the north 28 acres will have to be rezoned. He asked the Council to look at his project in a positive manner. Theresa Hawkinson, 1909 Birch Street explained that before they purchased their home they did a lot of investigation. She said she was very disappointed when she was made aware of this development. Paul Montain, 6510 Centerville Road said that his family has been in the area for more than three generations and the gravel pit area has been unsightly and unsafe for most of that time. He said he would like the City to do something useful with the area. He asked the Council to use their best judgement. Mrs. Ron Birch, 3788 LaBore Road noted that the entire process has been encouraged by the City. She expressed concern regarding the way the Hawkins family was conducting their business. Mayor Bisel said this matter strikes close to home for him. He expressed appreciation for being able to conduct the hearing in a friendly manner. Everyone's opinion should be respected. He noted that the Council will have to take into consideration state law and City ordinances when making their decision. He noted that the City Charter does not permit "under the table" action by the Council. It requires that the people be notified and publications printed. The meetings are all open to the public. Mayor Bisel explained that the Comprehensive Land Use Plan is just a plan and not carved in stone. It can be amended. Originally the City had planned that development in the gravel pit area would be on 2 1/2 acre lots. The Metropolitan Council said no to this because it makes it to difficult to extend sewer and water utilities in areas with such large lots. Mayor Bisel PAGE 7 259 260 COUNCIL MEETING JULY 8, 1991 noted that when sewer landowners can submit Council must react to guideline. and water utilities become available, their requests for extension. The City these requests using the City Code as their Mr. Miller explained that there is sewer capacity available to serve 268 homes in Lino Lakes. However, the only request for service at this time is for Mr. Birch's south 20 acres. He noted that if someone north of Mr. Birch's 20 acres were to request a rezone and extension of services, the Council would have to go through this entire action again. Council Member Kuether asked why the property is best suited for multifamily housing. Mr. Miller explained that single family housing would require a much larger parcel of land to meet various setback requirements. Mr. Boxrud explained that "bunching" the housing allows costs to remain so that project is feasible. Council Member Neal asked if Metropolitan Council does not approve the Comprehensive Plan Amendment and the land is not rezoned, who will have to pay for the cleanup of the property. Mr. Boxrud said the landowner would pay. Mr. Miller noted that the only park issue remaining unresolved is whether the trail system should be public or private. The developer has requested that the trail system be private and the Park Board is requesting that the trail system be public. This must be addressed in the developer's agreement. Mr. Miller explained that the Council should not take action on the request to rezone the south 20 acres owned by Mr. Birch until they have received a written document from Metropolitan Council as to whether or not the Comprehensive Land Use Plan Amendment has been approved. He noted that the Metropolitan Council has received a fair amount of correspondence from Lino Lakes residents on this matter. Council Member Reinert said he felt that the 28 acres to the north owned by Mr. Birch has some bearing on this matter. Mr. Boxrud explained that the north 28 acres is calculated into a lot of the "front end" costs. There will be a need to assess all units in the total 48 acres to make this project feasible. Mr. Birch will need reasonable assurances that the Council will at some time in the future rezone the north 28 acres to PUD. Mr. Boxrud also noted that of the total 131 developable acres, Mr. Birch owns about one fourth. Council Member Reinert moved to close the public hearing at 8:40 P.M. Council Member Bohjanen seconded the motion. Motion carried unanimously. PAGE 8 1 1 1 1 1 COUNCIL MEETING JULY 8, 1991 Council Member Bohjanen moved to table action on the request to rezone the south 20 acres owned by Mr. Birch until a reply has been received from the Metropolitan Council. Council Member Kuether seconded the motion. Motion carried unanimously. PUBLIC HEARING, LAKE AMELIA ESTATES TAX INCREMENT FINANCING (TIF) PLAN Mayor Bisel opened the public hearing at 8:40 P.M. Mr. Ron Batty explained that this TIF plan is a "Soils Condition Tax Increment Financing Plan ". The Plan calls for a "pay -as- you -go" plan that will reimburse the developer up to $300,000.00 for soils correction of the old Hansen gravel pit. It will also provide the City $15,000.00 in administrative fees, will make no money available for utility "write- downs" or any other developer costs and provides for a 12 year pay back period. Mr. Batty also noted that this is a new TIF District and all TIF collection from this district must remain in this district. In addition all TIF money collected in this district must be used for soils correction. If there is any TIF money remaining after the soils correction is completed, the money must be returned to the district. Mr. Batty explained that the Council should rezone the property and approve the preliminary plat prior to taking action on the TIF plan. He noted that since the City has an EDA, the Council will have to meet as the EDA and then meet as the City Council to approve the project. Mr. Art Hawkins, 6102 Centerville Road said he did not know much about TIF but thought that unlimited funds are not available. Mr. Batty explained that the only available funds will come from the project itself and not from any other area. Mr. Batty explained that there are five different types of TIF districts and they all are designed to do a different job. This particular district is a "soils correction" district. Mr. Hawkins noted that the cost of soils correction would depend on how much development is planned. Mr. Boxrud said yes, if only two houses were to be constructed on the 20 acre site, only two house pads would need to be constructed. Kirk Hawkinson, 1909 Birch Street asked who determines if this development qualifies for this type of TIF. Mr. Batty explained that ultimately the Council answers all the questions determining the qualification. Mr. Boxrud has reviewed the information presented by the engineer for the developer and Mr. Boxrud agrees that 85% of the site needs correction. Mark Winiecki, 6387 - 20th Avenue felt that the engineers should look at the entire site of 48 acres. Certainly not 80% of the PAGE 9 261 262 COUNCIL MEETING JULY 8, 1991 entire 48 acres needs soils correction and the project would not qualify for this type of TIF development. Jacqueline Farm, 6209 Centerville Road noted that if the developer is unable to sell $170,000.00 town home units and reduces his prices, the amount of TIF is also reduced. Mr. Miller said that it was true that more expensive homes produce a larger tax base. Council Member Kuether noted that Mr. Birch will have to place covenants on the property and minimum town home costs must be included in the covenant. Council Member Reinert noted that the legislature changes their rules every year and this could affect the project. Mr. Batty noted that the TIF plan presented tonight reflects all 1991 legislative changes. Mr. Batty said he was not uncomfortable with this TIF plan since the City will not be selling general obligation bonds to cover any of the project costs. This is a "pay -as- you -go" plan. If the tax structure is changed and the value of the town homes is reduced, there will be less TIF dollars to invest in the project. Amy Donlin, 6100 Centerville Road noted that when a farmer buys a farm and the soil is poor, no one bails him out. She felt the developer knew what he was purchasing and TIF is just a convenient method and he is taking advantage of it. Mery Fifrich, representing Mr. Birch the developer, explained that this improvement will be totally self- supporting. He explained that the residents will pay for the maintenance of the streets. Mr. Fifrich also noted that at this time the property is being taxed approximately $5,000.00 per year. In the future when the property is developed this figure will increase greatly. He also noted that currently this is the south entrance to the City and it is an eyesore. Council Member Bohjanen moved to close the public hearing at 9:18 P.M. Council Member Reinert seconded the motion. Motion carried unanimously. Council Member Kuether moved to table this item until the City has an answer regarding the Comprehensive Land Use Amendment. Council Member Bohjanen seconded the motion. Motion carried unanimously. PUBLIC HEARING, LAKE AMELIA ESTATES PRELIMINARY PLAT Mr. Miller explained the location of this 20 acre preliminary plat. He noted that there will be 29 building pads and a total of 58 dwellings. The 20 acres will be developed in two (2) PAGE 10 1 1 1 COUNCIL MEETING JULY 8, 1991 phases, the first will consist of 17 building pads and the second will have 12 building pads. Because of the requirements of other review agencies, there will be 11 less building pads than originally planned. Mr. Miller explained that the DNR has expressed concern regarding the preliminary plat because it is adjacent to Amelia Lake. The Vadnais Water Management District has suggested that a pond be constructed as a sedimentation pond to collect the runoff from streets and driveways. A homeowners agreement will be required which gives authority to access the common areas and exterior of buildings. The landscape plan is completed and in the file as well as the grading plan and a concept plan showing the design of the street to the north of the 20 acres. Mr. Boxrud explained the need for and the intent of the ponds. He noted that runoff from all hard surface areas will be directed to the ponds. The streets will be constructed to the same specifications as normal city streets. The association will own the streets and maintain them. The street plans will be reviewed by the Fire Chief. Mayor Bisel opened the public hearing at 9:28 P.M. Mr. Art Hawkins, 6102 Centerville Road asked what is actually proposed on the 20 acres. Mr. Boxrud explained that of the 20 acres, only 14 or 15 acres are buildable. There are about 8.9 buildable acres in phase I and 17 house pads will be constructed. Jacqueline Farm noted that there is a "gap" in the lake and asked if this area can still be used when the town homes are developed. Her family hunts in the area. It was explained that if they can get into the "gap" from the lake it is a part of the lake and can be used. Council Member Kuether moved to close the public hearing at 9:33 P.M. Council Member Bohjanen seconded the motion. Motion carried unanimously. Council Member Bohjanen moved to table this item until information is received from Metropolitan Council regarding the Comprehensive Plan Amendment. Council Member Reinert seconded the motion. Motion carried unanimously. Mr. Schumacher referred to Mrs. Farms question regarding access to the "gap" in the lake. He noted that the DNR has control of the surface water. As to access now or in the future, the City Council has no authority to make that decision. PAGE 11 263 264 COUNCIL MEETING JULY 8, 1991 PUBLIC HEARING, LAKE AMELIA ESTATES IMPROVEMENTS Mr. Boxrud used the overhead projector and outlined Phase I of Amelia Lake Estates. He explained that sewer and water is proposed to be extended from White Bear Township. The extension of trunk sewer and water into this area can eventually serve about 131 buildable acres. The lift station is proposed to be located on the 28 parcel to the north of the preliminary plat. Locating the lift station in this manner will accomplish serving the entire 121 buildable acres in the future, not just the first 20 acres. The proposed 12" water main will be part of the overall water main area. A Joint Powers Agreement with White Bear Township is being prepared. This Agreement will indicate how White Bear Township disposes of sewage from Lino Lakes and will include all costs. Mr. Boxrud noted that it is proposed there be a sewer assessment for the frontage for the entire 1st and 2nd phases of the first 20 acres and assess the unit and connection charges for the entire 48 acres. Assessment charges for the water main are similar to the sewer assessment. Mr. Boxrud addressed the density issue. Single family housing will cause the density to diminish and there will be a loss of unit charges. This would cause the improvement to be financially unfeasible. Council Member Reinert noted that the rezone request is only for the south 20 acres. However, this area cannot stand on its own financially and in the near future the Council will be asked to rezone the north 28 acres. He asked why all of the 48 acres were not being rezoned at one time. Council Member Reinert felt that the Council should be looking at the total picture and not piece meal the improvement. Mayor Bisel opened the public hearing at 9:53 P.M. Council Member Kuether asked why the Council has received the request to only rezone the south 20 acres. Mr. Birch explained that he originally requested that the entire 48 acres be rezoned and the rezone notice was published including the entire 48 acres. However he needed a topography map for the north 28 acres and it took four months to get it. He explained that he had no intention of going through this process two or three times. He plans to bring in quality town homes on the south 20 acres and he said he also made it clear that he was not sure that he could sell all of the town homes starting at $170,000.00. Mr. Birch said he would like to see a diverse quality of town homes and PAGE 12 1 1 1 1 COUNCIL MEETING JULY 8, 1991 wanted the overall project to fit into the community. Council Member Reinert said he was expecting an "up front" approach to development. The process taken in this development is not really telling all of the truth. He felt that piecemeal development is deceptive. Mr. Birch agreed and.explained that this is not how he originally proposed the development. Council Member Bohjanen moved to close the public hearing at 9:58 P.M. Council Member Reinert seconded the motion. Motion carried unanimously. Council Member Bohjanen moved to table this item until after the rezone question is resolved. Council Member Reinert seconded the motion. Motion carried unanimously. The Council took a five minute break. ENGINEER'S REPORT Resolution No. 62 - 91 Receiving Report and Calling Hearing on Improvement, Reshanau Lake Estates South, 4th and 5th Additions - Mr. Schneider explained that a feasibility report had been ordered and received and plans and specifications had been ordered on this improvement. Later, it became necessary to replat the area due to changes in administration of the wetlands by the Corps of Engineers. An updated feasibility report has now been completed and the developer has presented an improvement petition waiving 50 of the 60 day waiting period for ordering improvements. Council Member Reinert moved to approve Resolution No. 62 - 91 Receiving the Report and Calling Hearing on the Improvements. Council Member Kuether seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert IA Kuether Motion carried unanimously. Resolution No. 62 - 91 can be found at the end of these minutes. Resolution No. 63 - 91 Ordering Plans and Specifications for Reshanau Lake Estates South, 4th and 5th Additions - Council Member Bohjanen moved to approve resolution No. 63 - 91 Ordering Plans and Specifications for Reshanau Lake Estates South, 4th and 5th Additions. Council Member Neal seconded the motion. PAGE 13 265 266 COUNCIL MEETING VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert Kuether JULY 8, 1991 Motion carried unanimously. Resolution No. 63 - 91 can be found at the end of these minutes. Resolution No. 64 - 91 Receiving Report and Call Improvement Hearing for Storage for Water System (Elevated Water Storage Facility) - Mr. Schneider gave a brief background on this matter and referred to the brief work session held just prior to this Council meeting. Three (3) different types of elevated water storage systems were presented to the Council at that time. Mr. Schneider recommended that the Council not consider the Ellipsoidal system but consider taking bids on both the Spheroidal and Fluted Column systems. He also recommended that the Council consider additional options that could be bid at the same time such as storage at the base of the elevated tank. Council Member Kuether moved to approve Resolution No. 64 - 91 Receiving Report and Calling Improvement Hearing for Storage for Water System (Elevated Water Storage Facility) for the two (2) types of water storage recommended by Mr. Schneider and also to take bids for both a 750,000 gallon and 1,000,000 gallon tank for each design. Council Member Neal seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert Kuether Motion carried unanimously. Resolution No. 64 - 91 can be found at the end of these minutes. Resolution No. 65 - 91 Ordering Plans and Specifications for Storage for Water System (elevated Water Storage Facility) Council Member Kuether moved to approve Resolution No. 65 - 91 Ordering Plans and Specifications for Storage for Water System the first two (2) designs and for the two (2) different sizes as noted above. Council Member Neal seconded the motion. VOTING ON THE MOTION: Bisel Neal Bohjanen Reinert Kuether PAGE 14 1 1 1 1 1 1 COUNCIL MEETING JULY 8, 1991 Abstained: none Motion carried unanimously. Resolution No. 65 - 91 can be found at the end of these minutes. Resolution No. 66 - 91 Accepting Bids for 1991 Seal Coating Improvement - Mr. Boxrud explained that bids were received on June 28, 1991 and were well under budget. Allied Blacktop submitted the low bid for both the base bid and the alternate bid. The alternate bid includes a higher quality of seal coat aggregate. The City is accustomed to using the higher quality aggregate. Based on the small cost differential between the base bid and the alternate bid, Mr. Boxrud recommended that the alternate bid be accepted from Allied Blacktop. Council Member Reinert Moved to approve Resolution No. 66 - 91. Council Member Bohjanen seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert Kuether Motion carried unanimously. Resolution No. 66 - 91 can be found at the end of these minutes. Resolution No. 67 - 91 Approving Plans and Specifications and Ordering Advertisement for Bids, PineRidge Addition - Mr. Boxrud explained that plans and specifications were completed today and will be reviewed in detail with the Public Works Director and his staff. To continue the improvement process for PineRidge Addition, Mr. Boxrud recommended approval of Resolution No. 67 - 91. Council Member Bohjanen moved to approve Resolution No. 67 - 91 as recommended by the City Engineer. Council Member Reinert seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert Kuether Motion carried unanimously. Resolution No. 67 - 91 can be found at the end of these minutes. ATTORNEY'S REPORT PAGE 15 267 268 COUNCIL MEETING JULY 8, 1991 Consideration and Approval of Easements from Edward E. and Delores Vaughan and Agnes C. LaMotte for the Pheasant Hills Preserve and Brandywood Estates Improvements - Mr. Hawkins explained that these easements are necessary for the improvements to continue as planned. Council Member Reinert moved to approve the easements. Council Member Bohjanen seconded the motion. Motion carried unanimously. OLD BUSINESS There was no Old Business. NEW BUSINESS Consideration and Approval of a 3.2 Beer License, Cabaret License and Gambling License for St. Joseph Catholic Church - Mrs. Anderson explained that the licenses are requested for the annual Fall Festival. The applications are complete and a Certificate of Insurance has been provided. The Chief of Police has indicated that issues of concern have been addressed and he anticipates no problems. Council Member Bohjanen moved to approve the 3.2 Beer License, Cabaret License and Gambling License for St. Joseph Catholic Church. Council Member Kuether seconded the motion. Motion carried unanimously. Consideration and Approval of a Cabaret License, 49 club - Mrs. Anderson explained that the Cabaret License is for the Harvest Festival to be held on August 2 and August 3, 1991. The forms are completed and Chief Campbell has indicated that all issues of concern have been addressed and he anticipates no problems. Council Member Bohjanen moved to approve the Cabaret License for the 49 Club. Council Member Reinert seconded the motion. Motion carried unanimously. Beer License Request for Lino Lakes Lion's Club for Lino Days - Mayor Bisel presented the application for the Beer License for Lino Days for August 17, 1991 to be held at Sunrise Park. Council Member Neal moved to approve the Beer License. Council Member Reinert seconded the motion. Motion carried with Mayor Bisel abstaining. Set Ways and Means Committee Meeting - The meeting was set for Thursday, July 11, 1991 at 8:00 A.M. Council Member Reinert moved to adjourn at 10:27 P.M. Mayor Bisel seconded the motion. Aye. PAGE 16 1 1 1 COUNCIL MEETING JULY 8, 1991 These minutes were considered, corrected and approved at a regular Council meeting held on July 22, 1991. arily G. Anderson, Clerk - Treasurer Harold L. Bisel, Mayor PAGE 17 269 - 270 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, Minnesota, was duly held in the City Hall in said City on Monday, July 8, 1991, commencing at 6:30 P.M. The following members were present: William Bohjanen, Sally Kuether, Wesley Neal, Vernon Reinert and Mayor Harold Bisel and the following were absent: None * * * The Mayor announced that the next order of business was consideration of the bids which had been received for the purchase of the City's $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A, as advertised for sale. The City Clerk- Treasurer presented affidavits showing publication of the notice of sale in the City's official newspaper and in Northwestern Financial Review, a financial paper published in Minneapolis, Minnesota, which affidavits were examined and found satisfactory and ordered placed on file. The City Clerk- Treasurer presented a tabulation of the bids which had been received in the manner specified in the Official Terms of Offering of the Bonds. The bids were as follows: (See Attached) 16655 West Bluemound Road Suite 290 Brookfield, WI 53005 -5935 (414) 782 -8222 Fax: (414) 782 -2904 2739 Second Avenue S.E. Cedar Rapids, IA 52403 -1434 (319) 363 -2221 Fax: (319) 363 -6999 AWARD: FAI SPRINGSTED PUBLIC FINANCE ADVISORS 85 East Seventh Place Suite 100 Saint Paul, MN 55101 -2143 (612) 223 -3000 Fax: (612) 223 -3002 6800 College Boulevard Suite 600 Overland Park, KS 6621 1 -1 533 (913) 345 -8062 Fax: (913) 345 -1770 222 South Ninth Street Suite 2825 Minneapolis, MN 55402 -3368 (612) 333 -9177 Fax: (612) 333 -2363 $4,260,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBUGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A FBS INVESTMENT SERVICES, INC. NORWEST INVESTMENT SERVICES, INCORPORATED MERRILL LYNCH CAPITAL MARKETS And Associate SALE: July 8, 1991 271 Moody's Rating: Baa Bidder Interest Rate Net Interest Price Cost & Rate FBS INVESTMENT SERVICES, INC. 5.60% August 1, 1994 $4,230,180.00 $745,500.00 WEST INVESTMENT SERVICES, (5.8333 %) CORPORATED RILL LYNCH CAPITAL MARKETS Juran & Moody, Incorporated CRONIN AND COMPANY, INCORPORATED 5.70% August 1, 1994 $4,231,245.00 $757,215.00 Edward D. Jones & Company (5.9250 %) Marquette Bank Minneapolis, N.A. Robert W. Baird & Company, Incorporated Dougherty, Dawkins, Strand & Bigelow, Incorporated Park Investment Corporation John G. Kinnard & Company Incorporated PIPER, JAFFRAY & HOPWOOD 5.75% August 1, 1994 $4,228,050.00 $766,800.00 INCORPORATED (6.0000 %) American National Bank Saint Paul Miller, Johnson & Kuehn, Inc. Moore, Juran and Company, Incorporated Craig- Hallum, Incorporated DAIN BOSWORTH INCORPORATED 6.10% August 1, 1994 $4,228,050.00 $811,530.00 (6.3500 %) These Bonds are being reoffered at par. BBI: 7.10 Average Maturity: 3 Years 272 After due consideration of the bids, Member Reinert then introduced the following resolution and moved its adoption: RESOLUTION NO. 61 -91 A RESOLUTION AWARDING THE SALE OF $4,260,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A; 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, Anoka County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01. The bid of FBS Investment Services, Inc. (Purchaser) to purchase $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A (Bonds) of the City described in the Official Terms of Offering thereof is found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and is accepted, the bid being to purchase the Bonds at a price of $4,230,180 plus accrued interest to date of delivery, for Bonds bearing interest at the rate of 5.60 % per annum. Net effective interest rate: 5.83337 1.02. The sum of $ 2,130 being the amount bid by the Purchaser in excess of $4,228,050 will be credited to the Debt Service Fund hereinafter created. The City Clerk- Treasurer is directed to deposit the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful bidders forthwith. The Mayor and City Clerk- Treasurer are directed to execute a contract with the Purchaser on behalf of the City. 1.03. The City will forthwith issue and sell the Bonds in the total principal amount of $4,260,000, originally dated August 1, 1991, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and maturing on August 1, 1994. 1.04. Optional Redemption. The City may elect on August 1, 1993 and on any date thereafter to prepay Bonds. Redemption may be in whole or in part of the Bonds subject to prepayment. If only part of the Bonds are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described in Section 2.02. 1 1 1 1 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which inter- est 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 will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 1992, 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 will appoint and 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 are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly execut- ed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registra- tion 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. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. 273 - 274 (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For a transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so sur- rendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemp- tion, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Regis- trar and by publishing the notice in the manner required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints Norwest Bank Minnesota, National Association, Minneapolis , Minnesota, as the initial Registrar. The Mayor and the City 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 resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation is authorized to act as successor Registrar. 1 1 1 1 1 The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Clerk- Treasurer must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the Clerk- Treasurer and 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 lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, such signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same rep- resentative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the Clerk- Treasurer shall deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed in substantially the following form: [Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND, SERIES 1991A 275 276 Date of Rate Maturity Original Issue August 1, 1994 August 1, 1991 CUSIP No. $ The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in Anoka County, Minnesota (City), acknowledges itself to be indebted 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, commencing August 1, 1992, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immedi- ately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respec- tively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on August 1, 1993, and on any date thereafter, to prepay Bonds of this issue. Redemption may be in whole or in part of the Bonds subject to prepayment. If only part of the Bonds are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. Prepayments will be at a price of par plus accrued interest. The City Council has designated the Bonds as "qualified tax exempt obliga- tions" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. Additional provisions of this Bond are contained on the reverse hereof and those provisions have the same effect as though fully set forth in this place. This Bond will 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 has been executed by the Bond Registrar by manual signature of one of its authorized representatives. 1 1 1 1 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 (facsimile) (facsimile) 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 $4,260,000 all of like original issue date and tenor, except as to number and denomination, issued pursuant to a resolution adopted by the City Council on July 8, 1991 (the Resolution), for the purpose of providing money to temporarily defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefited by local improvements, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to issue and sell definitive or additional temporary bonds to redeem the Bonds and to levy taxes on all of the taxable property in the City in the event of any deficiency in special assessments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof. 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 277 278 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 will 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 City's home rule charter] 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 limitation of indebtedness. (Form of certificate to be printed on the reverse side of each Bond, following a full copy of the legal opinion.) 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. (Facsimile Signature) City Clerk- Treasurer The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT Custodian 1 279 TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors JT TEN -- as joint tenants with right of survivorship and not as tenants in common Ac t (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and 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. 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 infor- mation concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) III Please insert social security or other identifying number of assignee 280 3.02. The City Clerk- Treasurer is directed to obtain a copy of the proposed approving legal opinion of Holmes & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on each Bond, 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 authorized and directed to execute the certificate in the name of the City upon receipt of the opinion and to file the opinion in the City offices. Section 4. Payment: Security: Pledges and Covenants. 4.01. The Bonds are payable from the General Obligation Temporary Improvement Bonds, Series 1991A Debt Service Fund (Debt Service Fund) hereby created, and special assessments (Assessments) levied or to be levied for the improvements (Improvements) financed by the Bonds are hereby pledged pledged to the Debt Service Fund. If any payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the Clerk- Treasurer is authorized and directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Assessments for the Improvements when collected. There is appropriated to the Debt Service Fund all (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the Purchaser and (iii) accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. It is determined that the Improvements to be financed by the Bonds do and 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 has caused or will cause the Assessments for the Im- provements to be promptly levied so that the first installment will be collectible not later than 1992 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will 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 Improve- ment financed wholly or partly from the proceeds of the Bonds, and for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of a current or anticipated deficiency in the Assessments, the City Council will levy ad valorem taxes in the amount of the deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Improvements, Assessments levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, moneys on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. 1 1 1 4.03. It is determined that the estimated collections of AssesEments and interest thereon for payment of principal and interest on 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 and that no tax levy is needed at this time. 4.04. The City Clerk- Treasurer is directed to file a certified copy of this resolution with the County Auditor of Anoka County and to obtain the certificate required by Minnesota Statutes, Section 475.63. 4.05. In accordance with its statutory duties under Minnesota Statutes, Section 429.091, Subdivision 5, the City covenants and agrees with the holders of the Bonds that if the Bonds cannot be paid at maturity from the proceeds of the Assessments or from other funds appropriated by the City Council, the Bonds will be paid from the proceeds of definitive or additional temporary bonds that will be issued and sold prior to the maturity date of the Bonds. Section 5. Authentication of Transcript. 5.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 5.02. The Mayor and City Clerk - Treasurer are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 6. Tax Covenant. 6.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements 281 28 relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess invest- ment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 1991) exceed the small- issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City hereby finds, determines and declares that the aggregate face amount of all tax - exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code. 6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. In order to qualify the Bonds as "qualified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax - exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax - exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1991 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1991 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. III by Member The motion for the adoption of the foregoing resolution was duly seconded 1 Kuether , and upon vote being taken thereon, the following voted in favor thereof: William Bohjanen, Sally Kuether, Wesley Neal, Vernon Reinert and Mayor Harold Bisel and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. 283 284 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES ) SS. I, the undersigned, being the duly qualified and acting Clerk- Treasurer of the City of Lino Lakes, Anoka County, Minnesota, do 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, July 8, 1991, 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 $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A of the City. WITNESS My hand officially as such Clerk- Treasurer and the corporate seal of the City this /()---day of July , 1991. City Clerk7Treastirer Lino Lakes, Minnesota (SEAL) LN140- 22.RAW 1 1 1 Council Member Kuether and moved its adoption: introduced the following resolution CITY OF'LINO LAKES RESOLUTION NO. 68 — 91 A RESOLUTION AUTHORIZING JOINT AND COOPERATIVE AGREEMENT FOR USE OF PERSONNEL AND EQUIPMENT, REGIONAL MUTUAL AID ASSOCIATION BE IT RESOLVED by the City of Lino Lakes, as follows: WHEREAS: the City of Lino Lakes desires to become a member of the Regional Mutual Aid Association and its Public Works Director is its authorized representative, and; Public Works Department Foreman its alternative representative, and; WHEREAS: a mutual need exists between members of the Regional Mutual Aid Association to share and assist one another in the areas of emergency, disaster control, and mitigation, and; WHEREAS: the City of Lino Lakes considers it to be in the best interests of the City to enter into a mutual agreement with the other members of the Regional Mutual Aid Association. 'NOW, THEREFORE, BE IT RESOLVED, that the City of Lino Lakes enter into agreement with the Regional Mutual Aid Association and hereby authorizes its Public Works Director, Donald Volk to represent the City of Lino Lakes in this association and the Public Works Director is authorized to sign said agreement in behalf of said City of Lino Lakes. Passed and adopted by the City Council of the City of Lino Lakes this 8th day of July, 1991. Marlyn Anderson, Clerk - Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Bohjanen and upon vote being taken thereon, the following voted in favor: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: none. Whereupon said resolution was declared duly passed and adopted. 286 Council Member Reinert introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 62 - 91 RESOLUTION RECEIVING REPORT AND CALLING A HEARING ON THE IMPROVEMENT OF RESHANAU LAKE ESTATES SOUTH, 4TH AND 5TH ADDITIONS WHEREAS, pursuant June 24, Reshanau and this 8, 1991, to a resolution of the Council adopted on 1991 with reference to the improvement of Lake Estates South, 4th and 5th Additions, report was received by the Council on July NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Council will consider the improvement of Reshanau Lake Estates South, 4th and 5th Additions in accordance with the report and the assessment of benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 and Chapter 8 of the Lino Lakes City Charter at an estimated total cost of the improvement of $681,797.71. 2. A public hearing shall be held on such proposed improvement on the 12th day of August, 1991 in the council chambers of the city hall at 7:15 P.M. and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Lino Lakes City Council this 8th day of July, 1991. Harold L. Bisel, Mayor RESOLUTION NO. 62 - 91 PAGE -2- The motion for adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: None. Whereupon said resolution was declared duly passed and adopted. 287 288 RESHANAU LAKE ESTATES SOUTH 4TH & 5TH ADDITIONS Lino Lakes, Minnesota SITE LOCATION MAP 1 1 Council Member Bohjanen introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 63 - 91 RESOLUTION ORDERING PREPARATION OF PLANS AND SPECIFICATIONS FOR THE IMPROVEMENT OF RESHANAU LAKE ESTATES SOUTH, 4TH AND 5TH ADDITIONS WHEREAS: pursuant to a resolution of the City Council adopted on June 24, 1991 a report has been prepared by the City Engineer with reference to the improvement of Reshanau Lake Estates South, 4th and 5th Additions and this report was received on July 8, 1991. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: Mr. Darrell Schneider of TKDA is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 8th day of July, 1991. 1.,/ A-Z/6 ae,e/ Harold L. Bisel, Mayor artily G. Anderson, Clerk- Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Neal and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: none. Whereupon said resolution was declared duly passed and adopted. 289 290 Council Member Kuether introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 64 - 91 RESOLUTION RECEIVING REPORT AND CALLING A HEARING ON FOR STORAGE FOR WATER SYSTEM (ELEVATED WATER STORAGE FACILITY) WHEREAS, pursuant to a resolution of the Council adopted on June 24, 1991 with reference to the Storage for Water System (Elevated Water Storage Facility) Improvement and this report was received by the Council on July 8, 1991, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Council will consider the improvement for Storage for Water System (Elevated Water Storage Facility) in accordance with the report and the assessment of benefited property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 and Chapter 8 of the Lino Lakes City Charter at an estimated total cost of the improvement of $1,028,000.00 for a 750,000 gallon tank and $1,239,000.00 for a 1,000,000 gallon tank. 2. A public hearing shall be held on such proposed improvement on the 12th day of August, 1991 in the council chambers of the city hall at 7:00 P.M. and the Clerk shall give mailed and published notice of such hearing and improvements as required by law. Adopted by the Lino Lakes City Council this 8th day of July, 1991. Harold L. Bisel, Mayor M rilyn . Anderson, Clerk- Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Bohjanen and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: none. Whereupon said resolution was declared passed and adopted. 1 1 1 1 1 1 Council Member Kuether moved its adoption: introduced the following resolution and CITY OF LINO LAKES RESOLUTION NO. 65 — 91 RESOLUTION ORDERING PREPARATION OF PLANS AND SPECIFICATIONS FOR THE STORAGE FOR WATER SYSTEM (ELEVATED WATER STORAGE FACILITY) WHEREAS: pursuant to a resolution of the City Council adopted on June 24, 1991 a report has been prepared by the City Engineer with reference to the Storage for Water System (Elevated Water Storage Facility) and this report w a s received on July 8, 1991. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: Mr. Darrell Schneider of TKDA is hereby designated as the Engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the Council this 8th day of July, 1991. Harold L. Bisel, Mayor (74.( Mari Marilyn'G. Anderson, Clerk- Treasurer The motion for adoption of the foregoing resolution was duly seconded by Council Member Neal and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: None Whereupon said resolution was declared duly passed and adopted. 291 292 Council Member Reinert introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 66 - 91 RESOLUTION ACCEPTING BIDS FOR 1991 SEAL COATING IMPROVEMENTS WHEREAS: pursuant to an advertisement for bids for the 1990 Seal Coating Improvement, bids were received opened and tabulated according to law, and the following bids were received complying with the advertisement: NAME AND ADDRESS Allied Blacktop 10503 - 89th Avenue N. Maple Grove, Mn. 55369 Bituminous Roadways, Inc. 2825 Cedar Avenue South Minneapolis, Mn. 55407 AMOUNT OF BID Base Bid Alternate Base Bid Alternate $31,707.00 33,409.00 $33,575.00 37,663.50 ' AND WHEREAS, it appears that Allied Blacktop, 10503 - 89th Avenue North, Maple Grove, Minnesota is the lowest responsible bidder, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. The Mayor and the Clerk are hereby authorized and directed to enter into the attached contract with Allied Blacktop, Maple Grove, Minnesota for the alternate bid in the amount of $33,409.00 for the 1991 Seal Coating Improvement 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 Co ncil this 8t day of July, 1991. Harold L. Bisel, Mayor id) 1 RESOLUTION NO. 66 - 91 Page -2- M ri�lyn . Anderson, Clerk - Treasurer The motion for the adoption of the foregoing resolution was duly seconded by Council Member Bohjanen and upon vote being taken thereon, the following voted in favor: Neal, Kuether, Bisel, Reinert, Bohjanen The following voted against same: none Whereupon said resolution was declared duly passed and adopted. 1 293 294 Council Member Bohjanen introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 67 - 91 RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR IMPROVEMENT OF PINERIDGE ADDITION WHEREAS: pursuant to a resolution passed by the Council on June 24, 1991, the City Engineer has prepared plans and specifications for the improvement of PineRidge Addition and has presented such plans and specifications to the Council for approval; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The City Clerk shall prepare and cause to be inserted in the official paper and the Construction Bulletin an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for two days, shall specify the work to be done, shall state that bids will be opened and bids will be received by the City Clerk until 10:00 A.M. on Friday, August 9, 1991 at which time they will be publicly opened in the council chambers of the city hall by the City Clerk and Engineer, will be tabulated and will be considered by the Council at 6:30 P.M. on Monday, August 12, 1991 in the council chambers. Any bidder whose responsibility is questioned during consideration of the bid will be given the opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Clerk and PAGE 1 1 1 1 RESOLUTION NO. 67 - 91 Page -2- accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the Clerk for five (5) per cent of the amount of such bid. Adopted by the Lino Lakes City Council this 8th day of July, 1991. _ r Mar Harold L. Bisel, Mayor 4 may, lyn Anderson, Clerk - 'Treasurer The motion for the adoption of the foregoing resolution wad duly seconded by Council Member Reinert and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: none. Where upon said resolution was declared duly passed and adopted. PAGE 2 25