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HomeMy WebLinkAbout03/23/1992 Council Minutesw w 164 COUNCIL MEETING CITY OF LINO LAKES COUNCIL MINUTES MARCH 23, 1992 DATE March 23, 1992 TIME STARTED 6:35 P.M. TIME ENDED 9:00 P.M. MEMBERS PRESENT: Reinert, Neal, Kuether, Elliott MEMBERS ABSENT : None Acting Mayor Neal chaired the meeting until Mayor Reinert arrived. Staff Members present: Public Works Director, Don Volk; City Attorney, Bill Hawkins; City Engineer, Darrell Schneider; Consulting Engineer's, Dan Boxrud and John Powell; City Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. CONSENT AGENDA Council Member Kuether asked that consideration of the Disbursements for March 23, 1992 be delayed to Old Business. Council Member Kuether move to approve the Consent Agenda as amended. Council Member Elliott seconded the motion. Motion carried unanimously. ' ITEM DISPOSITION DISBURSEMENTS: Centennial Fire Department Approved REGULAR AGENDA OPEN MIKE No one appeared under Open Mike. CONSIDERATION OF AWARDING BIDS FOR THE SALE OF $1,060,000.00 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1992B, RESOLUTION NO. 92 - 42 CONSIDERATION OF AWARDING BIDS FOR THE SALE OF $3,640,000.00 IMPROVEMENT REFUNDING BOND, SERIES 1992A, RESOLUTION NO. 92 - 43 PAGE 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 Mr. David MacGillivray bond consultant from Springsted, Inc. explained that bids were taken for these bonds at 12:30 P.M. today. One (1) bid was received for the $1,060,000.00 Series 1992B bonds. This bid was from Piper, Jaffray & Hopwood, Inc, at a true interest rate of 6.6710 %. Two (2) bids were received for the $3,640,000.00 1992A series bonds. A bid was received from Cronin & Company, Inc. Edward D. Jones & Company with a true interest rate of 6.5177% and the second bid was received from Piper, Jaffray &Hopwood, Inc. with a true interest rate of 6.5403 %. The $1,060,000.00 Series 1992B bonds will be used for the construction of the water tower and the $3,640,000.00 1992A bonds will be used to refinance the 1989 Temporary Improvement Bonds. Mr. MacGillivray explained that when less than three (3) or four (4) bids are received an investigation is made to determine why more bids were not received. Basically there are two (2) reasons for the small number of bids; 1) there are many bond issues out for bid at this time, and 2) Lino Lake's credit rating is below Moody's AA rating. Mr. MacGillivray felt that the rates were competitive at or under comparable issues sold in other jurisdictions. He felt that the rates were very good for long term borrowing. Council Member Kuether moved to adopt Resolution No. 92 - 42 Awarding the Sale of $1,060,000.00 General Obligation Water Revenue Bonds, Series 1992B to Piper, Jaffray & Hopwood, Inc. Council Member Elliott seconded the motion. Motion carried unanimously. Council Member Kuether moved to adopt Resolution No. 92 - 43 Awarding the Sale of $3,640,000.00 General Obligation Improvement Refunding Bonds, Series 1992A to Cronin & Company, Inc. Council Member Elliott seconded the motion. Motion carried unanimously. Resolution No. 92 - 42 and 92 - 43 can be found at the end of these minutes. SECOND READING, ORDINANCE NO. 16 - 91 REZONE OUTLOT J, LAKES ADDITION NO. 3 (BLACK DUCK ESTATES) Mr. Schumacher explained that four (4) Council Members are required to vote on this matter. He asked that the matter be delayed until Mayor Reinert arrives. CONSIDERATION OF RESOLUTION NO. 92 - 49 DECLARING THE OFFICIAL INTENT OF THE CITY OF LINO LAKES TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY Mr. Schumacher explained that the IRS has amended its procedures PAGE 2 165 166 COUNCIL MEETING MARCH 23, 1992 regarding selling municipal bonds. Resolution No. 92 - 49 declares that the City of Lino Lakes will comply with the new procedures. Council Member Elliott moved to adopt Resolution No. 92 - 49. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 92 - 49 can be found at the end of these minutes. PUBLIC HEARING, IMPROVEMENT OF APOLLO DRIVE Consulting Engineer John Powell, TKDA, explained that notices of this public hearing were sent to only the landowners who could be assessed for the improvement. The residential neighborhood along Marvy Street was not sent notices since they are not proposed to be assessed. The staff and consultants have met with the affected landowners and developers. The developers are now starting to plan the development of their land. When there is some sense of how the land will be developed, a meeting with the Marvy Street landowners will be planned. Mr. Powell used the overhead projector and outlined the project noting that at this time it is planned to complete Apollo Drive in two (2) phases. The first phase will begin at Sunset Road and end at Lino Industrial Boulevard. The second phase will complete the project. Mr. Powell noted an environmental assessment worksheet has been prepared for this improvement since the roadway is over one (1) mile in length. This improvement has not yet been approved by the City Council and is just now being considered. At this time MSA designation has not been established. Mr. Powell noted that if the City and County can agree on a joint powers agreement, Apollo Drive will be constructed as a municipal state aid street and then within a short time, the street will become a county state aid street. Anoka County will assume control and maintenance of the street and reimburse Lino Lakes for the construction costs. The improvements proposed include storm sewers, curb and gutters, roadway construction and some sanitary sewer and municipal water construction. Total costs will vary depending upon whether Apollo Drive is constructed as a municipal state aid street or a county state aid street. Discussions with Anoka County are ongoing and Mr. Powell recommended that the City construct the street and in the future allow Anoka County to assume the street and reimburse the City for the improvement costs. Mr. Powell noted that Anoka County will not have the state aid funds to reimburse Lino Lakes until 1994. Mr. Powell noted the areas that would be assessed and explained that the assessment roll is estimated to be approximately PAGE 3 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 $710,924.00. The current time table for the improvement is to conduct the public hearing tonight and accept the Environmental Assessment Worksheet tonight. Phase I of the construction must be under contract before September 1, 1992 or Lino Lakes faces loosing some of its accumulated MSA funds. Council Member Kuether said all area landowners should have been notified of the public hearing because there will a major impact on the residential neighborhood. ;= The public hearing was opened at 7:08 P.M. ti Robert King, 198 Marvy Street also felt the residential neighborhood should have been notified. He noted that if Apollo Drive becomes a county street, he and his neighbors will not be allowed to divide their property as first proposed because driveway access will be severely limited. He also expressed concern regarding the additional traffic that could be using Marvy Street. Mr. King also noted that he heard that the residential developer who was proposing to develop the vacant land south of Marvy Street may ask that the land be rezone to Light Industrial (LI). Mr. Powell explained that the division of the lots fronting on Marvy Street was discussed with Anoka County engineers. Details have not been completed on this matter. Mr. Powell said he felt it would be easy to limit construction traffic on Marvy Street. He also noted that no proposal for commercial development south of Marvy Street have been discussed, however, R -4, High Density Residential District development has been mentioned for that area. Mr. Schneider explained that if Apollo Drive becomes a county state aid street, the Marvy Street landowners will only be able to split off one (1) lot from their present lot. Anoka County will limit access to four (4) and since there are eight (8) lots, two (2) driveways will have to meet and access Apollo Drive together. This proposal would be similar to the Lake Crest development that had been planned for Birch Street. There was discussion regarding construction of interior streets. Mr. Schneider felt that the area along Apollo Drive should be screened and the area north of Apollo Drive should be developed as a separate entity. He said he would like to meet with the Marvy Street residents and discuss this alternative. Glen Rehbein, 7374 Lake Drive said he was confused about the notice he received. It appeared that the new street would run through his property and he would be assessed. He noted that it appeared that Anoka County would require that all access points be at least 600 feet apart. Mr. Rehbein asked how all this property could be developed and the 600 foot requirement be PAGE 4 167 168 COUNCIL MEETING MARCH 23, 1992 maintained. Mr. Schneider explained that Anoka County is asking for this, however, there is no commitment on the part of Lino Lakes. This matter will be pursed with a joint powers agreement. Mr. Rehbein explained that he heard that there have been previous joint development meetings. He has been out of town and no one in his office was notified. Mayor Reinert explained that this project is in its early stages at this point. The Council will pursue working with the private landowners, however, this portion of the development has just started. Mr. Rehbein asked what the purpose of running Apollo Drive along the freeway was. This would mean that the new street would be paid for by only one (1) side of the street. Mr. Schneider noted that the entire Apollo Drive does not run along the freeway. He noted that there are some problems and some developers do want lots that face the freeway. There will probably be a mix and match situation with utilities running along the back of some lots. Mr. Powell noted that the alignments shown tonight are only preliminary alignments. There will be supplemental reports which will include items addressed by Anoka County. Mr. Rehbein asked if there has been any discussion regarding sewer and water utility costs. He felt that these improvements should be part of a package. Mr. Rehbein asked if the property owners will be assessed as soon as the street is constructed? Mr. Schneider explained that the present proposal is that there will be not assessment until the area is developed. Mr. Rehbein asked what the traffic count on Lake Drive is at the present time. Mr. Volk gave the figures. Mr. Rehbein asked if the City felt that there was enough traffic to support a county state aid road. Mr. Schneider explained the county policy on this matter. Mr. Rehbein said he would like to see a complete development package and be more informed as to where Anoka County is coming from. He also said he would like to be involved with the other landowners who have already been advised regarding this improvement. Mayor Reinert said he would like this improvement to be a joint effort between the governmental entities and the private landowners. Mike Lavely, 7262 Sunset Road expressed a concern regarding a possible assessment and in particular how Apollo Drive is to be designed. It appears that Apollo Drive will be located very near PAGE 5 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 his property. He asked what the street wbuld look like and if there would be a sound barrier between it and his residence. Mr. Lavely asked to be included when a meeting does take place with the Marvy Street residents. Steve Leese, 74 Marvy Street indicated that all the residents along the south side of Marvy Street are present tonight. Since the entire area is now residential, he said he could not comprehend why a county road would be considered or the area. He noted that if storm water drainage will be constructed to the existing drainage easements there will be problems for some of the home owners and himself in particular. He noted that almost all of the residents oppose the construction of a county road. Mayor Reinert suggested that this hearing be continued to the next Council meeting and an informal meeting with the residents and developers be held at the city hall next Monday evening at 6:30 P.M. At 7:36 P.M. Mayor Reinert moved to continue this public hearing to Monday, April 13, 1992. Council Member Elliott seconded the motion. Motion carried unanimously. PUBLIC HEARING, REZONE OF SHORES OF MARSHAN LAKE, ORDINANCE NO. 06 - 92 Mayor Reinert opened this public hearing at 7:37 P.M. Mr. Jack Menkveld, 8741 Central Avenue, Blaine presented the preliminary plat of Shores of Marshan Lake. He noted that 34 acres are being platted into 54 single family residential lots. The land is presently zoned Medium Density Residential (R -3) and a request for Single Family Residential (R -1) is to be considered at this time. Mr. Menkveld explained that the site contains a large number of various sizes evergreen trees. These trees will be transplanted to various areas of the plat to provide screening from the church to the north and to provide screening along Lake Drive. Mr. Menkveld explained that he has been working with the Department of Natural Resources (DNR) and the Rice Creek Watershed District (RCWD) and have their approval. The lots along the lake meet the requirements of the Shoreland Management Ordinance. Approximately 20 interior lots will require variance approval because they do not meet the required lot depth. All lots do meet the minimum square footage requirements. The deficiency in lot depth resulted in an early description problem involving the property to the north of this site. Mr. Menkveld addressed housing design standards for this plat. He explained that there would be no duplication of housing on adjoining lots PAGE 6 169 170 COUNCIL MEETING MARCH 23, 1992 or directly across the street. The larger width of the lots will encourage larger garages. Council Member Kuether asked where the name Stage Coach Drive came from. Mr. Menkveld explained that at the turn of the century a waystation for stage coach traffic was located on the site. The name was used for historical value but noted that the street name could be changed. There was no one else to speak regarding this matter. Mr. Schneider noted that the park board has reviewed this plat and all members were polled regarding the latest design of the park. The Park Board is requiring that five (5) acres plus cash be dedicated from the plat. He also noted that the planned park is located so that when the property to the south develops, additional park land can be added to the established park. Mr. Schumacher explained that the necessary agreements will be completed after the preliminary plat is approved. Council Member Kuether moved to close the public hearing at 7:48 P.M. Council Member Elliott seconded the motion. Motion carried unanimously. Council Member Elliott moved to approve the first reading of Ordinance No. 06 - 92 to rezone the Shores of Marshan Lake from R -3 to R -1. Council Member Kuether seconded the motion. Motion carried unanimously. PUBLIC HEARING, PRELIMINARY PLAT, SHORES OF MARSHAN LAKE Mayor Reinert opened the public hearing at 8:50 P.M. Mr. Schneider explained the information regarding this preliminary plat was given during the above rezone public hearing. Mayor Reinert asked about the price ranges of the homes and Mr. Menkveld explained that the interior price range would be $100,000.00 to $120,000.00 and the south east corner of the plat would range from $120,000.00 to $160,000.00. The model will be in excess of $100,000.00. Mr. Richard Zelinka, 7033 Lakeview Drive explained that the site once contained the building that was the stage coach waystation on the stage coach route to Duluth. It was known as the Kettle River Junction waystation. Mr. Zelinka noted that Anoka County once asked that the site be dedicated for a historical site. However, Anoka County would not reimburse the owner anything for the site and the Circle Pines Fire Department used the building for a fire drill. The building was built in 1864 and contained the Lino Post Office from December 28, 1894 to August 14, 1904. PAGE 7 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 Council Member Elliott moved to close the public hearing at 7:53 P.M. Council Member Kuether seconded the motion. Motion carried unanimously. Council Member Kuether moved to approve the preliminary plat of Shores of Marshan Lake. Council Member Elliott seconded the motion. Motion carried unanimously. ENGINEER'S REPORT Minor Subdivision and Variance, Walberg, Lot 6, Block 1, Ulmer's Rice Lake Addition - Mr. Schneider explained that this item involves the division of the back one -half of an existing one (1) acre lot which backs up to the new street under construction in the west section of Wenzel Farms. This situation is similar to the situation when Second Avenue was extended to Elm Street and lots facing Rice Lake Drive were divided and houses were constructed on the Second Avenue portion of the lots. Each back one -half lot could then be divided into two (2) 75 feet wide lots which would be served with utilities. There is proposed a significant change from the procedures used along Second Avenue which would involve the front one -half of each lot along Rice Lake Lane. It is recommended that the owner /developer enter into an agreement with the City to support the future construction of utilities and street to serve the remnant lot when they are available on Rice Lake Lane. The City Attorney has provided the wording for the agreement. The Planning and Zoning Board has recommended approval of the agreement and approval of the minor subdivision and variance request. Concern has been expressed regarding the variances meeting the rule of two (2) of three (3) criteria and becoming an automatic variance. However, the variances for the lots along Rice Lake Lane will not be automatic. The newly created lots are substandard in width and the agreement regarding future assessment along Rice Lake Lane should be implemented. For the most part, both a variance request and minor subdivision request was filed by the developer splitting the lots along Rice Lake Drive. A fee was paid for both the variance and the minor subdivision. In all cases, a refund was made to the developer of all unused escrow. Mr. Schneider asked that this procedure be continued by the City Council. Mr. Hawkins explained that the current City Code requires that if the lot does not meet current specifications, a variance must be considered by the City Council. If the Council is not going to follow the City Code, then the City Code should be amended. PAGE 8 171 172 COUNCIL MEETING MARCH 23, 1992 There was discussion regarding adopting an amendment to the City Code that would expedite this process. Mayor Reinert suggested that the City act on the request before the Council at this time and then consider amending the City Code at another time. Mr. Schneider also recommended that the Council consider entering into an agreement with the developer regarding future extension of utilities on Rice Lake Lane. He also noted that there would be a $500.00 per lot park dedication due at the time the City Clerk affixes the City Seal to the deeds for recording at the Anoka County court house. Council Member Kuether explained that Mr. Walberg's newly created lots have already been sold and he was not advised about the agreement for utilities along Rice Lake Lane. She suggested that this request be approved but notify all of the residents on the east side of Rice Lake Lane of the new policy. Council Member Neal moved to approve the minor subdivision and variance request for Warren Walberg and Kathy Macioch, Lot 6, Block 1, Ulmer's Rice Lake Addition and to mail notices to all landowners on the east side of Rice Lake Lane notifying them regarding the agreement to connect to utilities when they are available with the exception of Lot 6, Block 1, Ulmer's Rice Lake Addition because of the existence of a signed purchase agreement. Council Member Elliott seconded the motion. Motion carried with Council Member Kuether abstaining. Resolution No. 92 - 40 Ordering Preparation of Plans for Black Duck Estates and Black Duck Estates, Second Addition - Mr. Schneider explained that the preliminary plats for these subdivisions were approved March 9, 1992. It is proposed that the Council allow the construction of utilities and other improvements in these two (2) subdivisions following a new procedure. The following is an outline of the procedure: 1. The developer would deposit financial security with the City. 2. The City Engineer would prepare plans and specifications for streets and utilities. 3. The developer would retain a contractor to install the streets and utilities, such contractor would be required to meet City approval. 4. The City would inspect all construction work on the project. A detailed outline of the proposed development contract has been prepared by the City Staff, City Attorney and Engineering Consultants. The developer would be required to pay all the costs attributable to this development and the City would not be required to sell bonds to finance the improvement. It is the opinion of the City Attorney and City Staff that this procedure PAGE 9 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 would give the City as much control of the construction work as the present City installed improvement procedure. Furthermore, it would save going through the Chapter 429 and City Charter improvement procedures. Instead of going through the feasibility report and public hearing stages of the improvement projects for these plats, plans and specs could be ordered at this time allowing the project to proceed, saving several weeks of time. Mayor Reinert asked if the Staff have received any telephone calls from the residents around these two (2) proposed plats regarding any concerns or problems. There have been no telephone calls. Council Member Neal moved to adopt Resolution No. 92 - 40. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 92 - 40 can be found at the end of these minutes. Resolution No. 92 - 41 Ordering Preparation of Report on Improvement of Shores of Marshan Lake - The first reading of the rezone request and the preliminary plat have been approved by the City Council this evening. The next step for this City installed improvement" project is to initiate a feasibility report. Council Member Neal moved to adopt Resolution No. 92 - 41. Council Member Kuether seconded the motion. Motion carried unanimously. Resolution No. 92 - 41 can be found at the end of these minutes. Resolution No. 92 - 45 Ordering Preparation of Report for Brandywood Estates, Second Addition - The preliminary plat was approved for the entire subdivision of Brandywood Estates on August 13, 1990. The final plat for the Second Addition is currently being prepared. The developer has petitioned for utilities and streets which would be entirely the developer's expense. The next step in the City installed improvement process is to initiate a feasibility report. A tight schedule is necessary to allow the installation of utilities and streets during the 1992 construction season. The developer has made a cash escrow deposit to cover the estimated cost of the feasibility report. Council Member Kuether moved to adopt Resolution No. 92 - 45. Council Member Elliott seconded the motion. Motion carried unanimously. Resolution No. 92 - 45 can be found at the end of these minutes. Resolution No. 92 - 44 Accepting the Environment Assessment Worksheet (EAW), Apollo Drive Improvement - Mr. John Powell PAGE 10 174 COUNCIL MEETING MARCH 23, 1992 explained that the EAW has been prepared according to the direction of the City Council on February 24, 1992. He asked that Resolution No. 92 - 44 be adopted allowing the distribution of the EAW to the Environmental Quality Board and other agencies per Minnesota Statutes Chapter 4410.1500. Council Member Kuether moved to adopt Resolution No. 92 - 44. Council Member Neal seconded the motion. Motion carried unanimously. Resolution No. 92 - 44 can be found at the end of these minutes. PARK BOARD REPORT Consideration of Purchase of Birch Park Building - Mr. Volk explained that a trailer was leased with the option to purchase after the first 15 months of a 50% dedicated lease monies applied toward purchase. The lease was later extended to 19 months. The 19 months lease /option was initiated in November, 1989. The City is now leasing the unit on an open -end basis. The balance due to buy this unit is $2,370.00. Mr. Volk stressed the need for this unit for Birch Park and for the activities that are now occurring at Birch Park. Council Member Elliott moved to approve purchasing the unit for $2,370.00, Option No. 2 of Mr. Volk's green sheet. Council Member Neal seconded the motion. Motion carried unanimously. Consideration of Purchase of Park Building on Shores of Marshan Lake Subdivision - Mr. Volk explained that the Park Department has negotiated a purchase agreement for the building located at the southwest corner of the above mentioned subdivision. The negotiated price is $13,000.00. The building is located on park land approved for this subdivision and will not be moved. If the City does not purchase the building at this time, the building will be moved to Yada Systems, Inc. the current owner of the building. The Park Board has recommended purchase of the building since it does fit into the needs of the Park Department as it relates to the Comprehensive Park Plan. The building measures 28 feet by 64 feet and has 10 foot ceilings. It is completely finished and in excellent condition on the exterior. The interior is roughed -in for plumbing, heating and electrical service and there is a concrete floor. There is also a well and septic system but the building can be connected to municipal utilities when they are extended the subdivision. The proposed park area will be 1.9 acres with the intent that additional acreage will be added to the south when abutting land PAGE 11 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 develops. Council Member Elliott moved to purchase the building for $13,000.00. Council Member Kuether seconded the motion. Motion carried unanimously. OLD BUSINESS Common Ground Update - Mr. Schumacher explained that he has made a list of potential shared services areas as suggested at the first common ground meeting. The next meeting was scheduled for April 4, 1992 but will be rescheduled for near the end of April. Mayor Reinert asked that each Council Member take time and list their opinions and bring them to a work session to discuss and develop a Lino Lakes position regarding shared services. Mr. Schumacher asked each Council Member to rank in priority their ideas and opinions. Consideration of Entering into an Agreement for Attorney Services - Mr. Schumacher explained that based on the discussion at the March 18, 1992 work session regarding attorney's service, a three (3) year agreement has been proposed by Burke and Hawkins. The agreement offers no increase in fees for 1992 and 1993 and a maximum possible increase of 3% for 1994. The agreement is similar to other consulting services and from a budgeting standpoint, it is very good to know in advance what can be planned for the coming budget. Mr. Hawkins said that he has enjoyed working with this Council and felt the next several years appear to be exciting. He also said he did not want to leave his work here. Council Member Neal moved to accept the proposal by Burke and Hawkins for attorney's service. Council Member Kuether seconded the motion. Motion carried unanimously. Council Liaison Reports - Council Member Neal gave a brief report regarding the Police Department, Council Member Kuether gave a brief report regarding the Public Works Department, Council Member Elliott gave a brief report regarding the Parks and Recreation Department and Mayor Reinert gave a brief report regarding Administration. Council Member Neal noted that the Police Department moved into their new building on March 3, 1992. He noted that some of the remodeling is incomplete. A new sign has been installed and an open house is planned for both the Fire Department and the Police Department for March 29, 1992. Council Member Neal noted the many displays that will be available for the open house. The Police Department is considering purchasing four (4) new squads in 1993 as well as a new 4 -wheel drive vehicle. Council Member PAGE 12 175 11 7 COUNCIL MEETING MARCH 23, 1992 Neal noted an improvement of morale since the move and an appreciation for less crowded spaces. Council Member Kuether explained that her "eyes have been opened" by taking the position of Public Works liaison. She noted that the dirt roads are in very tough shape. Once the frost is out, the roads will be graded once a week. All streets are being checked to see if reconstruction is needed or if patching will be sufficient for this year. Council Member Elliott said she has attended meetings, is looking at the trail system and working on citizens complaints. Two (2) more shelters are being added to the Parks system and the Parks Department is looking into the possibility of contracting lawn mowing services. Council Member Elliott said she is looking forward to settling in the new Park Board members. Mayor Reinert noted that the biggest concern has been the moratorium. He felt it allowed time to take a "fresh" look at things. Mayor Reinert noted that City Engineer, Darrell Schneider is now on board. He will have a more complete report of things that have been accomplished at a later date. NEW BUSINESS Consideration of Liquor License Request, Shirley Kaye's - Mrs. Anderson explained that this business located at 6810 Lake Drive has been repossessed by the underlying landowner and the owner has contracted with his wife to re -open under the new name. Chief Campbell has performed the background investigation and all is in order. All license fees have been paid. Mrs. Anderson asked that the licenses be approved contingent upon receipt of proof of insurance and receipt of proof of paid taxes. Council Member Kuether moved to approve the liquor licenses for Shirley Kaye's contingent upon receipt of proof of payment of taxes and receipt of proof of insurance. Council Member Neal seconded the motion. Motion carried unanimously. Consideration of Revision of Precinct Boundaries - Mrs. Anderson presented a map indicating a revision of the present precinct boundaries and adding a third precinct for Lino Lakes. She had previously drafted a memorandum to Mayor Reinert and Council Members outlining the need for a third precinct and explained the number of registered voters suggested for each precinct. Mrs. Anderson noted that the City Council did have the option to leave precinct boundaries as they currently are or to approve the draft of precinct boundaries as she has prepared or to redraft precinct boundaries in some other configuration. Council Member Neal PAGE 13 1 1 1 1 1 1 COUNCIL MEETING MARCH 23, 1992 moved to approve the revision of precinct boundaries as prepared by Mrs. Anderson and outlined in her memorandum dated March 17, 1992. Council Member Kuether seconded the motion. Motion carried unanimously. Proclamation, Earth Day - Mr. Volk explained that this proclamation is similar as adopted the past two (2) years and it does proclaim April 25, 1992 as Earth Day. He noted that a committee is preparing to conduct a City wide clean -up day on May 2, 1992 which would be in conjunction with Earth Day. Council Member Kuether moved to adopt the proclamation. Council Member Elliott seconded the motion. Motion carried unanimously. SECOND READING, ORDINANCE NO. 16 - 91, REZONE OUTLOT J, BLACK DUCK ESTATES Mr. Schumacher explained that the first reading was held in December, 1991. Council Member Elliott moved to adopt the second reading of Ordinance No. 16 - 91. Council Member Kuether seconded the motion. Motion carried unanimously. DISBURSEMENTS, MARCH 23, 1992 Council Member Kuether questioned the disbursement to Firstar Bank Hugo. Mrs. Anderson explained that was for the safety deposit box rental. Council Member Kuether questioned the disbursement for Labor Relations Services. Mr. Schumacher explained this was for the services of Karen Olson and Lyle Smith regarding Comparable Worth matters. Council Member Kuether questioned the disbursement to Barna, Buzy & Stefen for attorney services. Mr. Schumacher explained that Chief Campbell asked this firm to help in determining some job descriptions. Council Member Kuether asked why Chief Campbell did not go to the City Attorney. Mr. Schumacher explained that Chief Campbell had worked with this firm in the past. Council Member Kuether questioned the disbursement to First Trust. Mr. Schumacher explained that this is for EDA administrative fees in conjunction with the lease /purchase bonds. The disbursement to W.A. Egan was questioned. Mr. Schumacher explained that all motor vehicle fuels are purchased from this vender. The disbursement to TKDA was questioned. Mr. Schumacher explained that there are some improvement costs that are charged back to the developer. The work performed by TKDA cannot be done "in- house ". The disbursement to Lightening Printing was questioned. Mr. Schumacher explained that this was for printing flyers to be sent to every resident in Lino Lakes regarding recycling. This will be paid from grant funds. Council Member Kuether moved to approve the March 23, 1992 PAGE 14 177 178 COUNCIL MEETING MARCH 23, 1992 Disbursement. Council Member Elliott seconded the motion. Motion carried unanimously. EDA Meeting - Mr. Schumacher noted that a March 25, 1992 EDA meeting has been scheduled. All landowners are being invited. The plan is to establish a structure for the Apollo Drive area. Mr. Schumacher also noted that Roger Jensen has moved to Lino Lakes and has asked to be included in the EDC. Mayor Reinert said he was pleased to have Glenn Rehbein involved in this matter and asked that he be brought up to speed regarding the development of this area. Mr. Schumacher noted that the Council work session was moved to Tuesday, April 7, 1992 at 5:00 P.M. Council Member Neal moved to adjourn at 9:00 P.M. Council Member Kuether seconded the motion. Aye. These minutes were considered, corrected and approved at a regular meeting of the Lino Lakes City Council on April 27, 1992. Vernon R. Reinert, Mayor PAGE 15 1 1 1 1 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, March 23, 1992, commencing at 6:30 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $1,060,000 General Obligation Water Revenue Bonds, Series 1992B . The City Administrator presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal of the Bonds. The proposals were as follows: SNC31647 LN140 -23 179 After due consideration of the proposals, Member Kuether then introduced the following written resolution and moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 92 - 42 A RESOLUTION AWARDING THE SALE OF $1,060,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1992B; 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 proposal of (Purchaser) to purchase $1,060,000 General Obligation Water Revenue Bonds, Series 1992B (Bonds) of the City described in the Terms of Proposal thereof is found and determined to be the highest and best proposal received and is accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1994 2002 1995 2003 1996 2004 1997 2005 1998 2006 1999 2007 2000 2008 2001 Net effective interest rate: 1.02. The sum of $ being the amount proposal by the Purchaser in excess of $1,044,100 will be credited to the Debt Service Fund hereinafter created. The City Clerk- Treasurer is directed to retain 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 shall forthwith issue and sell the Bonds in the total principal amount of $1,060,000, originally dated April 1, 1992, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and which mature serially on February 1 in the years and amounts as follows: SNG31647 LN140 -23 1 1 Year Amount Year Amount 1994 $ 25,000 2002 $ 75,000 1995 40,000 2003 80,000 1996 50,000 2004 85,000 1997 50,000 2005 90,000 1998 55,000 2006 100,000 1999 55,000 2007 105,000 2000 65,000 2008 115,000 2001 70,000 1.04. Optional Redemption. The City may elect on February 1, 2001 and on any date thereafter to prepay Bonds maturing on or after February 1, 2002. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, it shall be in such order as the City shall determine If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All payments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds shall 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 herein. 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 interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond will be dated as of the date of original issue. The interest on the Bonds will be payable on February 1 and August 1 of each year, commencing February 1, 1993, 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 shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar) . The effect of registration and the rights and duties of the City and the Registrar with respect thereto 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 executed 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 StiG31647 LF140-23 181 182 transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. 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. (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 the 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 surrendered 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 redemption, notice thereof identifying the Bonds to be redeemed will be given SNG31647 117140 -23 1 1 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 Registrar 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 , 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 con- solidation 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. 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 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 Regis- trar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolu- tion. When the Bonds have been so prepared, executed and authenticated, the Clerk- Treasurer shall deliver the same to the Purchaser upon payment of the pur- chase 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. SNG31647 LN140 -23 183 184 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 WATER REVENUE BOND, SERIES 1992B Date of Rate Maturity Original Issue April 1, 1992 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 February 1, 1993, 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 immediately 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 respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevo- cably pledged. The City may elect on February 1, 2001, and on any date thereafter, to prepay Bonds of this issue maturing on or after February 1, 2002. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, it shall be in such order as the City shall determine If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shRll 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. SNC31647 LN140 -23 1 Additional provisions of this Bond contained on the reverse hereof have the same effect as though fully set forth in this place. This Bond is not valid or obligatory for any purpose or 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. 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 $1,060,000 all of like original issue date and tenor, except as to number, maturity date, redemp- tion privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on March 23, 1992 (the Resolution) , for the purpose of providing money to aid in financing various improvements to the water system of the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 444.075 and the City's home rule charter and the principal hereof and interest hereon are payable primarily from the net revenues of the water system of the City in a special debt service fund of the City, 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 levy ad valorem taxes on all taxable property in the City in the event of any deficiency in net revenues 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 of single maturities. IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has covenanted and agreed that it will continue to own and operate the water system free from competition by other like utilities; that adequate insurance on said plant and system and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and SNG31647 LN140 -23 185 186 disbursements relating to the Water Fund, into which it will pay all of the gross revenues from the water system; that it will also create and maintain a General Obligation Water Revenue Bonds, Series 1992B Debt Service Fund, into which it will pay, out of the net revenues from the water system a sum sufficient to pay principal hereof and interest thereon when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net water system revenues. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the 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, statutory or charter limitation of indebtedness. (Form of certificate to be printed on the reverse side of each Bond, following a full copy of the legal opinion. ) 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, Minne- sota, 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: SNG31647 LN140 -23 1 TEN COM - TEN ENT - JT TEN -- - as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) - as tenants under Uniform Gifts or by entireties Transfers to Minors as joint tenants with right of survivorship and not as tenants in common Act (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 chRnge 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 information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account. ) Please insert social security or other identifying number of assignee 3.02. The City Clerk- Treasurer shall obtain a copy of the proposed approving legal opinion of Holmes & Graven, Chartered, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause the opinion to be printed on 8NG31647 LN140 -23 187 188 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 hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices . Section 4. Payment: Security: Pledges and Covenants. 4.01. The City will create and continue to operate its Water Fund to which will be credited all gross revenues of the water system and out of which will be paid all normal and reasonable expenses of current operations of the water system. Any balance therein are deemed net revenues and will be transferred, from time to time, to a General Obligation Water Revenue Bonds, Series 1992B Debt Service Fund (Debt Service Fund) hereby created in the Water Fund, which fund will be used only to pay principal of and interest on the Bonds and any other bonds similarly authorized. There will always be retained in the Debt Service Fund a sufficient amount to pay principal of and interest on all the Bonds, and the Clerk- Treasurer must report any current or anticipated deficiency in the Debt Service Fund to the City Council. There is appropriated to the Debt Service Fund all capitalized interest financed from Bond proceeds, if any, any amount over the minimum purchase price of the Bonds paid by the Purchaser and all accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. The City Council covenants and agrees with the hold ers of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The City will continue to maintain and efficiently operate the water system as public utilities and conveniences free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water system accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with this resolution. (b) The City will also maintain the Debt Service Fund as a separate account in the Water Fund and will cause money to be credited thereto from time to time, out of net revenues from the water system in sums sufficient to pay principal of and interest on the Bonds when due. (c) The City will keep and maintain proper and adequate books of records and accounts separate from all other records of the City in which will be complete and correct entries as to all transactions relating to the water system and which shall be open to inspection and copying by any bond holder, or the holder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request. 8N031647 LN140 -23 (d) The City Council will cause persons handling revenues of the water system to be bonded in reasonable amounts for the protection of the City and the bondholders and will cause the funds collected on account of the operations of the water system to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. 1 - 189 (e) The Council will keep the water system insured at all times against loss by fire , tornado and other risks customarily insured against with an insurer or insurers in good standing, in such amounts as are customary for like plants, to protect the holders, from time to time, of the Bonds and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss . (f) The City and each and all of its officers will punctually perform all duties with reference to the water system as required by law. (g) The City will impose and collect charges of the nature authorized by Minnesota Statutes, Section 444.075 at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Bonds and to create and maintain such reserves securing said payments as may be provided in this resolution. (h) The City Council will levy general ad valorem taxes on all taxable property in the City, when required to meet any deficiency in net revenues. 4.03. It is hereby determined that the estimated collection of net revenues for the 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 authorized and directed to file a certified copy of this resolution with the County Auditor and to obtain the certificate required by Minnesota Statutes, Section 475.63. 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, shall 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 SNG31647 LN140 -23 190 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. The City shall 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 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 investment earnings to the United States to the extent required. 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 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 1992 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1992 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. The motion for the adoption of the foregoing resolution was duly seconded by Member Elliott , and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Reinert, Elliott. and the following voted against the same: None. whereupon said resolution was declared duly passed and adopted. 5NG31647 LN140 -23 1 1 1 STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF LINO LAKES ) 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 March 23, 1992 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 $1,060,000 General Obligation Water Revenue Bonds, Series 1992B of the City. WITNESS My hand officially as such Clerk- Treasurer and the corporate seal of the City this day of March SNC31647 LN1d0 -23 (SEAL) , 1992. CL-1 /11 _ �/� 7i/< C/✓� t/l Cit Clerk- Treasurer Lino Lakes, Minnesota 191 192 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 March 23, 1992, commencing at 6:30 P.M. The following members were present: and the following were absent: * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $3,640,000 General Obligation Improvement Refunding Bonds, Series 1992A. The City Administrator presented a tabulation of the proposals which had been received in the manner specified in the Terms of Proposal of the Bonds. The proposals were as follows: SNG31693 LN140 -23 1 193 After due consideration of the proposals, Member Kuether then introduced the following written resolution and moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 92 - 43 A RESOLUTION AWARDING THE SALE OF $3,640,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1992A; 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 proposal of (Purchaser) to purchase $3,640,000 General Obligation Improvement Refunding Bonds, Series 1992A (Bonds) of the City described in the Terms of Proposal thereof is determined to be the highest and best proposal received and is accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 1993 2000 1994 2001 1995 2002 1996 2003 1997 2004 1998 2005 1999 2006 Net effective interest rate: 1.02. The sum of $ being the amount bid by the Purchaser in excess of $3,585,400 is credited to the Debt Service Fund hereinafter created. The City Clerk- Treasurer is directed to retain 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 $3,640,000, originally dated April 1, 1992, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and which mature serially on February 1 in the years and amounts as follows: SNG31693 LN140 -23 194 Year Amount Year Amount 1993 $ 150,000 2000 $ 280,000 1994 150,000 2001 290,000 1995 150,000 2002 300,000 1996 200,000 2003 320,000 1997 220,000 2004 340,000 1998 250,000 2005 360,000 1999 270,000 2006 360,000 1.04. Optional Redemption. The City may elect on February 1, 2001 and on any date thereafter to prepay Bonds maturing on or after February 1, 2002. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, it shall be in such order as the City shall determine. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All payments will be at a price of par plus accrued interest. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds shall 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 herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication u which whic the interest on the Bond has been paid or made available for payment, authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond 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 February 1, 1993, 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 shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar) . The effect of registration and the rights and duties of the City and the Registrar with respect thereto 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 executed 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 registration of SNG31693 LF140 -23 A 195 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. (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 the 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 any 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 surrendered 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 re- demption, 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 SNG31693 LN140 -23 196' (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 Registrar 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 , 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 con- solidation 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. 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 Regis- trar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolu- tion. When the Bonds have been so prepared, executed and authenticated, the Clerk- Treasurer shall deliver the same to the Purchaser upon payment of the pur- chase 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: SNG31693 LN140 -23 1 1 - 197 [Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND, SERIES 1992A Date of Rate Maturity Original Issue CUSIP April 1, 1992_ 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 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 February 1, 1993, 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 immediately 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 respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevo- cably pledged. The City may elect on February 1, 2001, and on any date thereafter, to prepay Bonds of this issue maturing on or after February 1, 2002. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, it shall be in such order as the City shall determine. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par 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. SNG31693 LN140 -23 198 Additional provisions of this Bond are contained on the reverse hereof and such provisions for all purposes have the same effect as though fully set forth in this place. This Bond is not valid or obligatory for any purpose or 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. 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 $3,640,000 all of like original issue date and tenor, except as to number, maturity date, redemp- tion privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on March 23, 1992 (the Resolution) , for the purpose of providing money to refund the outstanding principal amount of certain general obligation bonds of the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, and the City's home rule charter, including Minnesota Statutes, Chapter 429 and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefitted by local improvements and other revenues of the City 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 levy ad valorem taxes on all taxable property in the City in the event of any deficiency in such special assessments and other revenues, 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 of single maturities . 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 SNG31693 LN140 -23 1 1 1 instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the 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, statutory or charter limitation of indebtedness. (Form of certificate to be printed on the reverse side of each Bond, following a full copy of the legal opinion. ) 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, Minne- sota, 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 - TEN ENT - JT TEN -- SNG31693 LN140 -23 - as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) - as tenants under Uniform Gifts or by entireties Transfers to Minors as joint tenants with right of survivorship and not as tenants in common Act (State) 199 200 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 information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 3.02. The City Clerk - Treasurer is authorized and 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 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 substant'A1ly 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. (a) The Bonds are payable from the General Obligation Improvement Refunding Bonds, Series 1992A Debt Service Fund (Debt Service Fund) hereby SNG31693 LA140 -23 1 1 1 created, and the proceeds of special assessments (Assessments) levied for improvements (Improvements) financed by the Refunded Bonds as hereinafter defined] are hereby pledged to the Debt Service Fund. (b) The debt service fund, if any, heretofore established for the Refunded Bonds as defined in the resolution providing for the issuance and sale of the Bonds, is terminated as of July 1, 1992, the maturity date of the Refunding Bonds, and any monies then remaining therein are to be transferred to the Debt Service Fund herein created. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in the Debt Service Fund to pay the same, the Clerk - Treasurer shall pay such principal or interest from the general fund of the City, and the general fund shall be reimbursed for such advances out of the proceeds of Assessments to be collected. (c) There is hereby appropriated to the Debt Service Fund any amount over the minimum purchase price of the Bonds paid by the Purchaser and all accrued interest paid by the Purchaser upon closing and delivery of the Bonds . 4.02. It is determined that at least 20$ of the cost of the Improvements has been specially assessed against benefitted property. For the purpose of paying the principal of and interest on the Bonds, there is hereby levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City, which shall be spread upon the tax rolls and collected with and as part of other general taxes of the City. Such tax shall be credited to the Debt Service Fund above provided and shall be in the years and amounts as follows (year stated being year of levy for collection the following year) : Year Levy (See Attachment A) ] 4.03. The Clerk - Treasurer is directed to file a certified copy of this resolution with the County Auditor and to obtain the certificate required by Section 475.63 of the Act. 4.04. It is hereby determined that upon the receipt of proceeds of the Bonds (Proceeds) for payment of the Refunded Bonds that an irrevocable appropriation to the debt service fund for the Refunded Bonds shall have been made within the meaning of Section 475.61, Subdivision 3 of the Act and the Clerk- Treasurer is hereby authorized and directed to certify such fact to and request the County Auditor to cancel any and all tax levies made by the resolution authorizing and approving the Refunded Bonds. 4.05. It is hereby determined that the estimated collection of the foregoing Taxes and Assessments will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds . The tax levy herein provided shall be irrepealable until all of the Bonds are paid, provided that the City Clerk- Treasurer may annually, at the time the City makes its tax levies, certify to the County Auditor the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the County Auditor shall thereupon reduce the levy collectible during such year by the amount so certified. It is expected that the City will annually deposit in the Debt Service Fund amounts from connection charges sufficient to cancel the levy for the following year. SNG31693 LM40 -23 201 202 4.06. It is hereby determined that the Improvements financed by the Bonds will directly and indirectly benefit the abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has levied Assessments for the improvements and has taken all steps necessary to assure prompt collection thereof. The City Council has caused all actions and proceedings relative to the making and financing of the Improvements financed hereby to have been taken with due diligence that were required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in the Assessments, the City Council will levy ad valorem taxes in the amount of said current or anticipated deficiency. (e) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with the Improvements; Assessments levied therefor and other funds appropriated for their payment; all 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. Section 5. Refunding: Findings: Payment of Refunded Bonds. 5.01. The Refunded Bonds are the General Obligation Temporary Improvement Bonds, Series 1989, of the City, dated July 1, 1989, of which $4,660,000 in principal amount is due on July 1, 1992. 5.02. It is hereby found and determined that the Proceeds together with other funds of the City will be sufficient to pay all of the principal of, interest on and redemption premium (if any) on the Refunded Bonds. 5.03. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds shall remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. Section 6. Authentication of Transcript. 6.01. 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 SNG31693 LN140 -23 1 1 1 1 1 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, shall be deemed representations of the City as to the facts stated therein. 6.02. The Mayor and City Clerk - Treasurer are hereby 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 repre- sentation of the facts and representations made therein as of the date of the Official Statement. Section 7. Tax Covenant. 7.01. 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. 7.02. 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 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 investment earnings to the United States if required. 7.03. 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. 7.04. 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 follow - ing factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; SNG31693 LN140 -23 (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 1992 will not exceed $10,000,000; and 203 204 (d) not more than $10,000,000 of obligations issued by the City during calendar year 1992 have been designated for purposes of Section 265(b)(3) of the Code. 7.05. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. The motion for the adoption of the foregoing resolution was duly seconded by Member Elliott , and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Reinert, Elliott. and the following voted against the same: none. whereupon said resolution was declared duly passed and adopted. 1 1 SNG31693 LN140 -23 1 1 1 - 205 STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF LINO LAKES ) 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 March 23, 1992 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 $3,640,000 General Obligation Improvement Refunding Bonds, Series 1992A of the City. WITNESS My hand officially as such Clerk - Treasurer and the corporate seal of the City this SNG31693 LN140 -23 (SEAL) day of March , 1992. City Clerk- Treasurer Lino Lakes, Minnesota 206 Council Member Neal introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 — 40 RESOLUTION ORDERING PREPARATION OF PLANS AND SPECIFICATIONS FOR BLACK DUCK ESTATES AND BLACK DUCK ESTATES, SECOND ADDITION WHEREAS: the City Council has approved the preliminary plats for Black Duck Estates and Black Duck Estates, Second Addition, and WHEREAS: the utility and street improvements will be financed by the developer, and WHEREAS: it is the policy of the City of Lino Lakes to prepare plans and specification for all developer financed improvements, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. Short - Elliott - Hendrickson, Inc. is hereby designated as the engineer for this improvement. They shall prepare plans and specifications for the making of such improvement. Adopted by the Lino Lakes Council on March 23, 1992. Marilyn Vernon F. Reinert, Mayor G. Anderson, Clerk - Treasurer The motion for the 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, Reinert, Elliott. The following voted against same: None. Whereupon the resolution was declared duly passed and adopted. 1 1 1 1 1 1 Council Member Neal introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 - 41 RESOLUTION DECLARING ADEQUACY OF PETITION AND ORDERING PREPARATION OF REPORT - SHORES OR MARSHAN LAKE BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. A certain petition requesting the improvement of Shores of Marshan Lake, filed with the Council on March 23, 1992, is hereby declared to be signed by the required percentage of owners of property affected thereby. This declaration is made in conformity to Minnesota Statutes, Section 429.035 and Chapter 8 of the Lino Lakes City Charter. 2. The petition is hereby referred to Toltz, King, Duvall, Anderson, and they are instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. Adopted by the Council this 23rd day of March, 1992. Vernon F. Reinert, Mayor Marilyn Anderson, C erk- Treasurer The motion for the 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, Reinert, Elliott. The following voted against same: none. Whereupon said resolution was declared duly passed and adopted. 207 208 PETITION FOR A FEASIBILITY STUDY We, the undersigned Lino Lakes property owners, do hereby petition the City of Lino Lakes to prepare a feasibility study to determine whether or not it is feasible to install sewer and water service -gPvBL[C for the property listed below in accordance with the provisions of 5T72EETz the Lino Lakes City Charter, Section 8.04 and Chapter 429 of Minnesota Statutes. (A benefitted property owner can only sign once regardless of the number of benefitted parcels owned and a benefitted parcel can only have one signature.) OWNER ADDRESS DaL,PM E/01--J )13c 87 4-1 caar rte.i PROPERTY DESCRIPTION Pp_oe==.sb S e. M a-fz s Ru i �S %z o f L.z,r- 1 - L..o -7 A u D Su (� 1 1 Council Member Kuether introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 — 44 RESOLUTION ACCEPTING THE ENVIRONMENTAL ASSESSMENT WORKSHEET FOR THE APOLLO DRIVE IMPROVEMENTS WHEREAS: pursuant to a resolution of the Council adopted on February 24, 1992 with reference to the Apollo Drive Improvement, an Environmental Assessment Worksheet was received by the council on March 24, 1992; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino lakes that the council accepts the Environmental Assessment Worksheet and authorizes its distribution to the Environmental Quality board and other as per Minnesota Statutes Chapter 4410.1500. Adopted by the Lino Lakes City Council this 23rd day of March, 1992. Vernon F. Reinert, Mayor //7 .;. i -t 4 i1Y✓ Mailyn 1G. 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, Reinert, Elliott. The following voted against same: none. Whereupon said resolution was declared passed and adopted. CERTIFICATION OF RESOLUTION NO. 92 — 44 I, hereby certify that the above is a correct copy of a resolution duly passed, adopted and approved by the City Council on March 23, 1992. n� %mil Lit (i ilyn')G. Anderson, Clerk - Treasurer 20° 210 Council Member Kuether introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 - 45 RESOLUTION DECLARING ADEQUACY OF PETITION AND ORDERING PREPARATION OF REPORT - BRANDYWOOD ESTATES, SECOND ADDITION BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. A certain petition requesting the improvement of Brandywood Estates, Second addition, filed with the Council on March 23, 1992, is hereby declared to be signed by the required percentage of owners of property affected thereby. This declaration is made in conformity to Minnesota Statutes, Section 429.035 and Chapter 8 of the Lino Lakes City Charter. 2. The petition is hereby referred to Short- Elliott- Hendrickson, Inc., and they are instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvement is feasible and as to whether it should best be made as proposed or in connection with some other improvement, and the estimated cost of the improvement as recommended. Adopted by the Council this 23rd day of March, 1992. Vernon F. Reinert, Mayor TJv Marilyn i. Anderson, Clerk - Treasurer The motion for the adoption of the foregoing resolution was duly seconded by Council Member Elliott and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Reinert, Elliott. The following voted against same: none. Whereupon said resolution was declared duly passed and adopted. 1 1 1 Council member Elliott following resolution and move its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 - 49 introduced the DECLARING THE OFFICIAL INTENT OF THE CITY OF LINO LAKES TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Tres Reg. 1.103 -18 providing that proceeds of tax - exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; and WHEREAS, the reimbursement rules apply to bonds issued after March 2, 1992; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES (THE "CITY ") AS FOLLOWS: 1. The City reasonably intends to make expenditures for the project described in Exhibit A (the "Project ") and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. The City Administrator is authorized to designate appropriate additions to Exhibit A in circumstances where time is of essence, and any such designation shall be reported to the Council at the earliest practical date and shall be filed with the official books and records of the City as provided in Section 3. 3. This resolution shall be maintained as part of the books and records of the City at the main administrative office of the City, and shall be continuously available during normal business hours of the City on every business day of the period beginning not more than 30 days after adoption of this resolution and ending on the last date of issue of any bonds issued to reimburse expenditures described in Exhibit A. 4. This resolution is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated reimbursements set forth at Exhibit A are consistent with the City's budgetary and financial circumstances. 1 211 2 1 2 No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. The City has not adopted any allocation, budget, or restriction of monies or adoption of a requirement or policy to reimburse a fund, the primary purpose of which is to prevent monies from being available to pay an expenditure the City intends to reimburse with proceeds of a borrowing. 5. This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. 1.103 -18 and any successor law, regulation, or ruling. 6. The allocation of proceeds of the bonds to be issued to any Project expenditures described in Exhibit A will be made not later than the later of one year after the expenditure was paid or one year after the property was placed in service. 7. The Project expenditures described in Exhibit A are capital expenditures as defined in Tres. Reg. 1.150 -1(h), including costs of issuance of the bonds to be issued in order to reimburse the Project expenditures. 8. Proceeds of the bonds issued to reimburse the Project expenditures described in Exhibit A will be deemed spent only when (1) an allocation entry is made on the books or records of the City with respect to the bonds; (2) the entry identifies an actual expenditure to be reimbursed, or where the Project is described as a fund or account, the fund or account from which the expenditure was paid; and (3) the allocation is effective to relieve the bond proceeds from restrictions on unspent proceeds under applicable documents and state laws. 9. No entity or entities possess simultaneously two or more of the following discretionary and non - ministerial powers with respect to the City: power to (1) remove without a cause a controlling portion of the City Council; (2) select, approve, or disapprove a controlling portion of the City Council; (3) determine the City's budget or require the use of the City's funds or assets for the other entity's purpose; or (4) approve, disapprove, or prevent the issuance of debt obligations of the City. 10. None of the proceeds of the bonds issued to reimburse the City for the Project expenditures described in Exhibit A will be used within one year of the allocation (i) to refund another governmental obligation or (ii) to create or increase the balance in a sinking fund or replace funds used for such purpose, or (iii) to create or increase the balance in a reserve or replacement fund or replace funds used for such purposes; 2 1 1 1 or will be used at any time to reimburse any person or entity (other than the City) for expenditures originally paid with the proceeds of a City obligation (excluding a City inter -fund borrowing); unless (i) such amounts are deposited in a bona fide debt service fund or are used to pay debt service in the next one year period on any City obligation other than the reimbursement bond, or (ii) the original issue was not reasonably expected to be used to finance the expenditure. 11. No action or inaction by the City with respect to the allocation of bond proceeds to reimbursement of Project expenditures will be an artifice or device to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements. 12. The procedures described in this resolution shall cease to apply to the extent not required by Tres. Reg. 1.103 -18 or any successor law, regulation, or ruling. Adopted by the City Council of Lino Lakes this 23rd day of March, 1992. Vernon F. Reinert - Mayor G. Anderson, Clerk Treasurer The motion for the 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, Elliott. The following voted against same: None, Mayor Reinert was absent. Where upon said resolution was declared duly passed and adopted: 3 213 214 Date of EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED MARCH 23RD, 1992 Maximum Principal Amount of Debt to Reimburse Declaration Description of Project Project Costs March 23, 1992 Water Tower Construction $1,060,000 1 1 1