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HomeMy WebLinkAbout01/24/2000 Council Minutes• COUNCIL MINUTES JANUARY 24, 2000 CITY OF LINO LAKES MINUTES DATE : January 24, 2000 TIME STARTED : 5:35 P.M. TIME ENDED : 9:37 P.M. MEMBERS PRESENT : Carlson, Dahl, O'Donnell, and Mayor Bergeson MEMBERS ABSENT : None Staff members present: City Administrator, Linda Waite Smith; and City Clerk, Ry-Chel Gaustad The Council met to conduct the City Administrators performance The Council directed the City Clerk to take general notes. The Council dis sa praisal procedure and written packets will be forwarded to the Cit i= ti s file. The Council elected to eliminate past Council memb Administrator received favorable comments re financial aptitude, and city program ands sery The Council was pleased with the C'. with Council, Staff and the Citi long-range plan, which was The Council request suggested the City A The council suggested The Council complete nd comments. The izational management, ided without interruption. a ors communication and relationships rmSre, the Council was satisfied with the Cities by tie City Administrator. Administrator be the City's spokesperson. The Council r organize meetings with the neighboring City Councils. y Administrator become more active in community affairs. appraisal of the City Administrator and moved into the Council Chambers to consider EDA issues. See separate minutes of the EDA. Staff members present: Administration Director, Dan Tesch (part); City Attorney, Bill Hawkins; City Engineer, John Powell; Community Development Director, Brian Wessel; Planning Coordinator, Mary Kay Wyland (part) Economic Development Assistant, Mary Divine (part); Chief of Police, Dave Pecchia (part); SETTING THE AGENDA Item 1D, Approve Non -Union Salary Adjustments, was moved to Item 3B. Item 3C, Council Appointments, was added to the agenda. COUNCIL MINUTES JANUARY 24, 2000 Item 1Ai, December 20, 1999, Council Minutes, was moved to Item 7A. The amended agenda was approved as presented. CONSENT AGENDA Council Member Dahl moved to approve the Consent Agenda, as presented. Council Member Carlson seconded the motion. Motion carried unanimously. ITEM ACTION DISBURSEMENTS: December 1999 & January 2000 (Check No. 57985 — 58107, in the amount of $134,490.39 & $1,881,802.28 December 13, 1999 (Check No. 57589 - 57739, $286,465.44) Centennial Fire District January 18, 2000 oved Approved Resolution No. 2000 — 09, Amend' 2000 General Fund Budget Approved Mayor Bergeson reminded th. of th guidelines for audience participation in City Council meetings, emphasi -a n for respectful dialog. OPEN MIKE Staff advised the Lino L es Police Department hired five (5) new officers in the calendar year 1999. Two (2) were C.O.P. Grant officers, and three (3) were hired to fill vacant positions. Officers' Steve Bikkie, Travis Muyres, Kelly McCarthy, Dale Hager, and Melissa Hagert need to take the Oath of Office. Staff provided a brief background on each officer. Mayor Bergeson administered the oath of office and congratulated each new officer. Mr. Tom Wos, 638 Aqua Circle, came forward and stated he has lived in the City for 13 months. He stated he previously lived in Coon Rapids and changed the filter on his water system once every year. The filter was always very clean. He stated he thought he would have to change the filter once every year in Lino Lakes also. He presented the filter he removed after one year commenting on how filthy it is. He suggested the Council look into a Citywide water system. 2 • • COUNCIL MINUTES JANUARY 24, 2000 Council directed staff to provide the results of the City's water test that is required by the Health Department. Ms. Julie Brown, Rise Inc., came forward and stated that Rise is requesting $2,000 in CDBG funds to put towards the purchase of five (5) vehicles. In 1998 Rise provided services to 1,124 Anoka residents or 55 percent of the total number served. Rise is presently serving five (5) residents of Lino Lakes. Many of the individuals in the programs have severe physical and developmental disabilities and specialized transportation needs. Ms. Ginger Madean, resident of Lino Lakes, came forward and stated her daughter has been in the Rise program for five (5) years. She relies on the transportation services to get to work. She stated her daughter is very proud of her work and enjoys it. Ms. Madean introduced her daughter, Jenny. Ms. Jenny Madean, resident of Lino Lakes, came forward and stated she likes her work. She shreds paper and likes to ride in the van. No one appeared else under open mike. ADMINISTRATION DEPARTMENT REPORT, DAN Consider Salary Increases for Fire Department advised the Centennial Fire District Steering Co For lack of a quorum at the January meeti proposed salary increase for the Fire councils are being asked to take f • � i •� :, inc until April, 2000. The three (3) City Ad 19, 2000. On the basi cities, the Administrato increase, the Chief's sal $61,000. inda Waite Smith — Staff ets quarterly to conduct business. e was unable to take official action on ig ters. Therefore, the three -(3) city the Steering Committee won't reconvene conducted the Fire Chief's performance appraisal on January rmance and a review of salaries in comparable metro area end a five -(5) per cent salary increase for 2000. With the of $56,303 will still be below the 1999 metro average, which is Fire Fighters are currently paid $7.00 per hour. Employees who have completed Fire Fighter II (advanced) training are eligible for an additional $.75 per hour. Those who have completed Emergency Medical Technician Training (EMT) are eligible for an additional $.75 per hour. The maximum hourly rate an employee can receive is $8.50. The Fire Chief has recommended, and the three (3) city administrators concur, that Fire Fighter pay for 2000 be increased to $7.50 per hour, with additional compensation of $1.00 per hour for those with Fire Fighter II training and $1.00 per hour for those with EMT certification. The proposed maximum hourly rate an employee could receive would be $9.50 per hour. COUNCIL MINUTES JANUARY 24, 2000 Staff noted the proposals are in line with salaries paid in comparable communities and they can be funded within the Fire Department's 2000 operating budget. Staff requested Council approval for both proposals. Council Member Dahl moved to approve proposal to increase Fire Chief's annual salary by 5%, effective January 1, 2000 and approve proposal to increase Fire Fighter hourly pay rate to $7.50 base; $1.00 for completion of Fire Fighter 11 training; and $1.00 for EMT certification. Council Member Carlson seconded the motion. Motion carried unanimously. Consideration of Non-union Salary Adjustments, Dan Tesch — Staff advised the City maintains a six (6) step program for the non-union and most union employees. Annual Cost of Living (COLA) and market adjustments for the union employees is accomplished through contract negotiations. Those same adjustments for non-union employees are accomplished by a review of internal equity and market forces by the department of administration. Having conducted that review, staff recommended a three (3) percent Cost of Livin Adjustment for the non-union work force. This is in line with other wit groups employee � as well as the g P +�,.��� metro area. Staff also recommended a two -(2) percent market adjustmen r fo wing positions: Public Works Superintendent Recreation Supervisor 2 Police Department Office Manage Staff referred to a list of actual 19 re ed 000 salaries. Council Member O'Donnel prove a 3% COLA adjustment for non-union employees and a 2% market adju r, nti w e above listed positions. Council Member Dahl seconded the motion. Motion carriee ' » sly. Consideration of Annu Appointment, Dan Tesch — Staff advised it was the consensus of Council at their January 19, 2000, work session that the following appointments be approved this evening: Acting Mayor North Metro Telecommunication Commission Centennial Fire Steering Committee County Correction Program Joint Law Enforcement Committee Council Member Dahl Council Member Dahl Council Member Carlson Mayor Bergeson (Future Council Member) Council Member O'Donnell Council Member Carlson moved to confirm the annual appointments as presented. Council Member O'Donnell seconded the motion. Motion carried unanimously. 4 • • COUNCIL MINUTES JANUARY 24, 2000 PUBLIC SAFETY DEPARTMENT REPORT, DAVE PECCHIA Renewal of Otter Lake Animal Control Contract, Dave Pecchia — Staff advised the City has used Otter Lake Animal Control Center as its contract holder for the past four -(4) years. The City's relationship during this time with the business has been very professional. The City was able to meet the needs of the citizens, Otter Lake Animal Control Center and the City by utilizing the provisions of the contract. Staff advised there were two (2) minor costs changes in the 2000 contract. A fifty -cent increase for daily boarding fee; and a one -dollar increase for Euthanasia and disposal fee. Staff requested the contract be renewed for calendar year 2000. Council Member Dahl moved to approve the request to enter into a renewal contract with the Otter Lake Animal Control Center. Council Member O'Donnell seconded the motion. Motion carried unanimously. PUBLIC SERVICES DEPARTMENT REPORT, RICK DEG There was no Public Services Department report. COMMUNITY DEVELOPMENT DEPARTM Consider Subdivision for Martha Houl Required) - Mary Kay Wyland — S subdivision of the property on the r of Birch Street and Centerville Road. The site is approximately 40 acres =r zone Rural. The existing land use map indicates the site as rural. The draft corn guides the property for rural development through 2010 and low/mediu sit idential on the western edge and commercial on the eastern edge some time after 2 i ► u; are considerable wetlands on the parcel, particularly on the eastern edge along Cen :a° I-` ' oad. -4, BRIAN WESSEL el, 1600 Birch Street (3/4 Vote is case involves a request for a minor A single family home is under construction on the north/west corner of the parcel. A brother and sister who have had some difficulty deciding how to split the parcel equitably jointly own the property. However, after much negotiation they have agreed on the submitted plan that would split the site into two (2) parcels. Parcel A would contain 15 acres and contain the home currently under construction. Parcel B would contain 24.9 acres. Both parcels will meet the Zoning Ordinance requirement calling for a minimum of 10 acres and 330' of lot frontage. Staff recommended approval of the subdivision based on conditions. Council Member Carlson asked how much of Parcel B can be developed. She noted it cannot be developed until after 2010. Staff advised they are unaware of how much of Parcel B can be developed due to wetlands. If the proposed Comprehensive Plan is approved, development cannot occur until after 2010. The property is zoned for commercial and multi -family. The COUNCIL MINUTES JANUARY 24, 2000 proposed plan shows the north/east as commercial and the rest of it low to medium density residential. The applicant is aware they cannot develop the parcel until after 2010 if the proposed plan is approved. Council Member Dahl moved to approve minor subdivision based on the following conditions: 1. An additional 27' of right-of-way for Centerville Road shall be dedication to Anoka County along the easterly border of the parcel. 2. The single family home currently under construction on the westerly parcel must connect to City water with the understanding that there is a deferred assessment on the balance of the property payable upon future development of the site. This deffered assessment shall also apply to the newly created Parcel B and is payable upon future development of that site. NOTE: The Council previously approved a site plan review to allow a home to be moved onto this parcel with the above-mentioned condition. After moving the home on to the site, the applicant decided to abort that plan and construct a new dwelling. 3. Any development on the easterly parcel shat outlined in the Subdivision Ordinance. Council Member Carlson seconded the motion. nanimously. edication as Consider Subdivision for Thomas McD ' . ► Street (3/4 Vote Required) - Mary Kay Wyland — Staff advised Mr. To ��.. >� is the owner of two (2) parcels of property in the south/west corner of the City. nt . ins 2.47 acres and a single family home. Parcel 2A contains 2.82 acres ti tr to is .29 acres. The City's Zoning Ordinance requires a minimum of 10 acres as t • rt; Zoned Rural, guided rural in the existing land use plan and located outside thUS `° ' •undary. However, both parcels are considered pre-existing non -conforming lots o e vacant parcel is buildable as it exists. The draft comprehensive plan gu t area for residential and the specific parcels for medium density residential. Mr. McDonough is asking for a minor subdivision that would allow the sale of the existing home on a one acre lot with the combination of the balance of the site and potential sale of that parcel as a 4.24 +/- acre parcel. The surrounding property is described as follows: East side North side South side West side - one 39,000 sq. ft. lot with a SF home, unsewered - three 45,000 sq. ft. lots with SF homes, unsewered - sewered residential development in Shoreview - large wetland adjacent to sewered residential development in Circle Pines A feasibility study was prepared by the City in 1997 to determine the cost of extending utilities to this property and others on Baldwin Lake Road. At that time 34 units were proposed for this site 6 • COUNCIL MINUTES JANUARY 24, 2000 leading to the multi -family designation on the draft comprehensive plan. No action has been taken on this utility extension and that anticipated sale fell through. It would be cost prohibitive to extend utilities to this property without a substantial redevelopment of the site. The Zoning Ordinance provides "Habitable single family homes constructed prior to July 13, 1992, may reduce their lot size to a minimum of one (1) acre if the balance of the property results in a parcel of 10 acres, or is serviced by public sewer...". Although this division will not create a parcel 10 acres in size, it will provide a larger parcel than currently exists which is more in keeping with the intent of the ordinance. Granting approval to the minor subdivision will require approval of a variance for lot size. Staff believes this is a unique situation not created by the property owner that will fit the variance criteria listed below. In considering all requests for a variance or appeal and in taking subsequent action, the City shall make a finding of fact: 1. That the property in question cannot be put to a e if used under conditions allowed by the official controls. 2. That the plight of the landowners is ysi ircumstances unique to his property not created by the landow 3. That the hardship is no reasonable use for the pro der the terms of the ordinance. consideration alone and when a 4. That granti special privileg buildings i ce A=' quested will not confer on the applicant any denied by this ordinance to other lands, structures, or 5. That p `s posed actions will be in keeping with the spirit and intent of the ordinance. In response to the criteria above, staff commented that this minor subdivision would create a lot for the existing home that is the same size as the adjoining properties and would bring the vacant parcel closer compliance to the existing provisions of the ordinance. The current lot configuration was created at a time when the minimum lot size was something less than 10 acres. That situation is unique in relation to today's requirements. The hardship arises from the lot configuration and unavailability of utilities. No special privilege is being extended, this item was reviewed on a stand along basis and determined unique to the property in question. The spirit and intent of the ordinance is to allow existing homes, construction prior to 1994, to subdivide down to 1 acre and allow for future redevelopment in an appropriate manner. Staff also noted, the applicant has had a septic designer inspect the property and determined an alternate site for a system should the existing one fail. COUNCIL MINUTES JANUARY 24, 2000 The Planning and Zoning Board recommended approval of this minor subdivision and variance on a 7/0 vote based on conditions. Staff also recommended approval. Council Member Carlson referred to the minutes of the January 12, 2000, Planning and Zoning Board regarding splitting the lot. She suggested a condition be added to approval relating to the Comprehensive Plan showing the area as R-1. Staff advised this issue has been discussed with the property owner. The area is currently shown as multi -family because of a pending purchase that fell through. The property owner is agreeable to changing the designation on the draft plan to R-1. Staff expressed concern regarding taking formal action with the draft plan. The City Attorney agreed it is inappropriate to take formal action on a draft plan. Council Member Carlson noted it was understood at the Planning and oard meeting that the designation would be changed. Mayor Bergeson stated he does not believe Council should i happen in the Comprehensive Plan. He clarified that th applicant was not resizing one lot. Staff added the variance is for the four -(4 perty. Mr. Tom McDonough, 25 Ash Str does not want to purchase the proposed plan to designate pproval what should reason for this item if the hada buyer interested in the land. The buyer age. 'Ie stated he is in agreement to changing the Council Member Carl o approve minor subdivision and variance based on the following conditions: 1. The applicant provides a current survey of the two -(2) new parcels. The lot containing the dwelling shall be one acre in size with 227' of lot frontage and configured as indicated on sketch B that is attached. The vacant parcel shall be combined into one 4+ -acre parcel. 2. The applicant shall provide documentation that there is an alternate site for a septic system on the existing home site should the existing system fail. 3. Park Dedication shall be required for any new construction on the largest parcel per the Subdivision Ordinance. 4. The draft Comprehensive Plan be amended to show the area as single family residential. 8 • COUNCIL MINUTES JANUARY 24, 2000 Council Member Dahl seconded the motion. Council Member O'Donnell expressed concern regarding setting a precedence if approved. The City Attorney advised a precedence would not be set. Each application needs to be dealt with individually. Staff noted the lots will not have City utilities. The area will utilize septic systems for some time. Mayor Bergeson stated he believes the condition regarding the draft Comprehensive Plan is inappropriate. The applicant has the right to subdivide without changing the draft plan. Council Member Dahl asked how to make the change in the plan without it being a condition of approval. Staff advised they have a list of areas that need further consideration relating to the plan. The Council will review these areas. Council Member O'Donnell expressed concern about the impact o is included. The City Attorney advised the way the condition i proceed before the Comprehensive Plan is approved. There approved Comprehensive Plan. • Motion carried with Mayor Bergeson voting no. • FIRST READING, Ordinance No. Batch Plant as an Interim Use i Contracting, 7504 Lake Dri Mary Kay Wyland — Staff pavement resurfacing April and July of 2000 junction. Shafer Contr t if the condition licant can n regarding the final, end Zoning Ordinance to add Temporary istrict (4/4 Vote Required), Shafer ope y), Interim Use Permit (3/4 Vote Required) - er Contracting has received the contract for concrete -3 rom MnDOT. This work is scheduled to take place between t area is from Sunset Road north easterly to the 35W/35E g ould like to set up their batch plant on the Tagg property (Arctic Sandblasting) at 7504 L e Drive. Temporary, portable concrete batch plants are needed to conform to MnDOT's specifications/limits for concrete placement within 30 minutes of production. This location will provide quick access, reduce traffic conflicts with hauling trucks, eliminate the need for Shafer to dismantle and relocate their plan during resurfacing, and provide timely completion of the project. They have signed a lease agreement with the property owner. In review of this item, staff concluded that an interim use permit may be the appropriate vehicle to facilitate this proposal. The property is Zoned LB, Limited Business and is the only LB District within the City. Staff also proposed an Ordinance Text Amendment that would add "Temporary Concrete Batch Plant" as an Interim Use within the Limited business Zoning District. COUNCIL MINUTES JANUARY 24, 2000 The City Engineer and the Environmental Board have reviewed this request and their reports are attached. The Planning and Zoning Board held a public hearing on January 12, 2000, for the text amendment and interim use permit. The conditions of approval reflect the concerns and comments of staff and the Planning and Zoning Board. Staff recommended approval of the Interim Use Permit to Shafer Contracting for a Temporary Concrete Batch Plat at 7504 Lake Drive based on conditions. Council Member Carlson noted the project is short term depending upon weather conditions. Mayor Bergeson asked if the interim use permit can be approved before the second reading is approved. Staff advised a condition of approval is approval of the second reading prior to the work beginning. The City Attorney advised he is comfortable with the Council passing the item as presented. Council Member O'Donnell moved to approve FIRST READING of No. 01— 2000, as presented. Council Member Carlson seconded the motion. Council Member Carlson voted yea. Council Member Dahl ncil Member O'Donnell voted yea. Mayor Bergeson voted yea. Motion carried unanimously. Council Member Carlson moved to a Plant based on the following cond. se Permit for Temporary Concrete Batch 1. The Citnce No. 01 — 2000 adding Temporary Concrete Batch Plant as A eri se to the Limited Business Zoning District. 2. The ant shall be located as far west as possible to avoid negative impact on th etlands at the eastern edge of the Tagg property. 3. Hours of operation shall not be subject to the restrictions of Ordinance No. 04 — 96 due to the nature of this project. 4. Should access to the freeway occur directly from the Tagg property, location and site grading shall be reviewed and approved by the City Engineer. 5. The use shall terminate upon completion of the project and the site shall be returned to its pre -construction state. Shafer Contracting shall provide communication to the City stipulating this completion date along with a bond or letter of credit in an amount determine by the City Engineer to guarantee site restoration. 10 • COUNCIL MINUTES JANUARY 24, 2000 6. An erosion control plan shall be submitted and approved by the City prior to site disturbance. 7. A minimum cash escrow of $1,000 shall be maintained to cover staff time for periodic site inspection. Council Member Dahl seconded the motion. Motion carried unanimously. FIRST READING, Ordinance No. 02 — 2000, Amend Zoning Ordinance to add Exterior Storage as a Conditional Use in the LI, Light Industrial Zoning District (4/4 Vote Required) - Mary Kay Wyland — Staff requested the City Council consider amending the Zoning Ordinance to add Exterior Storage as an accessory use in the Light Industrial Zoning district with a Conditional Use Permit. The draft ordinance is attached for your information and includes the following special provisions: a. The storage area is landscaped and screened from view of neighboring use, residential zoning districts and public right-of-way per Sec .S. of the Zoning Ordinance. b. Storage area is fenced in a manner approv c. Storage area is blacktop or con the City Council. nless specifically approved by d. All lighting shall b e with Section 3, Subd. 4.H. of this Ordinance or other lig s±s i ' place at the time of project approval. e. The stor for confo of take up parking space or loading space as required rdinance and not in front yards. f. The se` shall not abut property zoned for residential, rural, or business use, includin and in a neighboring city. "Abutting" includes across the street. "Abutting" does not include properties that touch only corner -to -corner. g. The property shall not abut I -35W or I -35E. h. The storage area shall not abut a school or a public park. i. The ratio of storage area to building footprint shall not exceed 3.5:1. j. Storage shall not include material considered hazardous under Federal of State Environment Law. Staff advised outdoor storage as an accessory use was originally a part of the Zoning Ordinance in this section but was deleted when the City adopted Ordinance No. 31 — 97 which made open COUNCIL MINUTES JANUARY 24, 2000 and outdoor storage an interim use in the LI Zoning District, when the storage is a principle use. This action was taken to facilitate the exterior storage for Molin Concrete as an interim use. Staff indicated they believe it should remain in the ordinance as a conditional use when it is accessory to the principle use. The City's Economic Development Advisory Board has concurred with the staff recommendation and the Planning and Zoning Board held a public hearing on January 12, 2000, to review the amendment. The Planning and Zoning Board recommended some additional conditions which have been added to the Ordinance and moved approval of the text amendment on 7/0. Council Member Dahl asked about the difference between the ordinance written in July, 1997, and this ordinance. Staff advised the 1997 ordinance did not include the provision E through J from above. The special provisions for all accessory storage have been enhanced. Staff advised the deletion of accessory storage with a conditional use permit was an over site and not intentional. Council Member Carlson expressed concern about the speed of m the City process, the request for conditional use rather than int Industrial parks, and the lack of regulation regarding what c nance through ct on other Light Mr. Tom Inman, representative for H & L Mesabi ..° o and stated the storage ratio is guided by the size of equipment being stored. Th site used for storage is in Hibbing. The previous location in Blaine could not rage. He continued stating H & L Mesabi worked very closely with stafocation for the project. Staff was very specific about the location. He no uner the impression that a conditional use permit would apply. Staff advised this issu clarify the uses and en principle use versus ac an this project. The provisions in the new ordinance would to restrict uses. Staff clarified the definition regarding The City Attorney noted staff worked on fitting the project into an interim use. However, storage is not the company's principle use. He advised he feels comfortable with the City passing the new ordinance. Council Member Dahl suggested the item be tabled and discussed at the next work session. Staff advised the land transaction cannot be completed until all City approvals are received. The timeline for the purchase agreement is March 15, 2000. Staff added they believe the City is getting a better ordinance with the amendment. Council Member Carlson asked about the other Light Industrial parks within the City. She stated the City should put an ordinance before the business. She referred to the minutes from the Planning and Zoning Board meeting regarding changing the ratio of storage. 12 • COUNCIL MINUTES JANUARY 24, 2000 Staff advised the amendment will affect both Light Industrial parks within the City. There may be future areas zoned Light Industrial that would also be affected. Staff advised Council can approve the first reading and deny the second reading if time is an issue. The City Attorney advised that legally the City has no obligation to approve the second reading if the first reading is approved. The amendment can also be refined between the two -(2) readings. Council Member Carlson indicated she cannot support this item at this time. She requested more discussion at the work session. The City Attorney advised the ordinance can be changed without going through the entire City process again. No further publication is necessary. There are currently restraints on the Council because the Council is short. Mayor Bergeson stated the City must have a written agreement from t �. t regarding an extension if the item is tabled. Mayor Bergeson called for a short break at 8:38 p.m. Mayor Bergeson reconvened the meeting at 9:08 p Council Member Carlson advised she has h t to agree to an extension. The applicant has agreed. Council Member Dahl moved February 14, 2000, Council carried unanimously. READING of Ordinance No. 02 — 2000 to the uncil Member Carlson seconded the motion. Motion This issue will be discu a the Council work session Wednesday, February 9, 2000, 5:30 p.m. H. & L. Mesabi, 3XX Apollo Drive, Site Plan Review & Conditional Use Permit (3/4 Vote Required) — Mary Kay Wyland — Staff recommended continuing this item to the February 14, 2000, Council meeting, upon approval from the applicant. H & L Mesabi indicated they will extend the Site Plan Review and Conditional Use Permit to the February 14, 2000, and provide their approval in writing. Council Member Carlson moved to table the site plan review and conditional use permit, H & L Mesabi, until the February 14, 2000, Council meeting. Council Member Dahl seconded the motion. Motion carried unanimously. Consideration of Approval of a Business Subsidy for H. & L. Mesabi, Inc., (3/4 Vote Required — Mary Divine — Staff advised that earlier this evening the Economic Development COUNCIL MINUTES JANUARY 24, 2000 Authority held a public hearing regarding a proposed $110,200 business subsidy in the form of Tax Increment Financing to H & L Mesabi for the construction of a 15,000 square foot facility in the Apollo Business Park. A new state statute requires that a public entity — in this case the EDA — finds that the granting of a subsidy meets the best interests of the City. As required by state statute, the Council is required to also approve the subsidy. This subsidy is to write down a portion of the cost of land and assessments on the project according to the terms of a development agreement. Staff recommended approval of the business subsidy for H & L Mesabi. It was noted that the approval is continent upon project approval. Council Member Carlson moved to approval the business subsidy for H & L Mesabi, as presented. Council Member O'Donnell seconded the motion. Motion carried unanimously. Consider Resolution No. 200 —11, Requesting Anoka County t 'g ' ax Increment District 1-4 (3/4 Vote Required) — Mary Divine — Staff advis ier this evening adopted a resolution requesting that TIF District No. 1-4 be e d his economic development district was established in 1990 to include opment portion of the Apollo Business Park. According to state statute, the district has now be decertified. Any unused incre any excess increment will be retu that the City joins with the E 26, 2000. allowable length of time and must se to eligible District expenses, after which C unty for redistribution. This resolution notes An a Council to decertify the district effective March Staff recommended ap solution No. 2000 — 11, requesting Anoka County to decertify TIF District No. 1-4 Council Member O'Donnell moved to adopt Resolution No. 2000 — 11, as presented. Council Member Dahl seconded the motion. Motion carried unanimously. Resolution No. 2000 — 11 can be found at the end of these minutes. FIRST READING, Ordinance No. 03 - 2000, Rezone a Portion of Highland Meadows to R- 3 (4/4 Vote Required) — Mary Kay Wyland — Staff advised at the January 10, 2000, Council meeting, Council approved the rezoning of less than one (1) acre of land from R-1 to R-3. The purpose was to allow the Highland Meadows developer to move the location of one (1) four -(4) unit townhome building. This was necessitated by the wetland mitigation plan, which preserves some wetland in the area previously approved for the building. There will be no additional units added to the number that was approved two (2) years ago. 14 • • COUNCIL MINUTES JANUARY 24, 2000 An ordinance requires two (2) readings. This ordinance should have been attached to the report on January 10, 2000, so that the first reading could occur then. Approving the first reading tonight ensures that the legal procedure is completed properly. The second reading can occur at the February 14, 2000, meeting without causing delay for the applicant. Council Member Dahl moved to approve FIRST READING of Ordinance No. 03 — 2000, as presented. Council Member Carlson seconded the motion. Council Member Carlson voted yea. Council Member Dahl voted yea. Council Member O'Donnell voted yea. Mayor Bergeson voted yea. Motion carried unanimously. Consider Approval of Contract with TKDA for New Tree Preservation Ordinance and Landscaping Ordinance, (3/4 Vote Required) — Brian Wessel — Tree preservation is an important aspect of the City's review of new development. Landscaping on commercial sites is another issue of importance to the community. While the City does h ces and policies addressing these issues, the ordinance are in need of revision. The Environmental Board recommended a new tree preserva n m e `. ack in early 1999. A cost of a consultant for the revision of the landscapin e p rvation ordinances was included in the 2000 budget. Ms. Julie Farnham of TKDA has prepare Ms. Farnham has degrees in landscap planning staffs of Eagan and St. P TKDA. e preparation of the new ordinances. an planning. She has served on the city es in other states. She is now a planner with The proposal includes -.< kin ith the Environmental Board as well as City staff to prepare and review the new ordin. ��,'�• cost for the work as described in the proposal is $7,600. Staff asked that Council •prove the proposal from TKDA so that ordinances can be in place for the building season. Council Member O'Donnell moved to approve the proposal from TKDA for new tree preservation and landscaping ordinances, as presented. Council Member Dahl seconded the motion. Motion carried unanimously. PUBLIC HEARING, FIRST READING, Ordinance No. 99 —17, Oak Brook Peninsula Easement Vacation (4/4 Vote Required) — John Powell — Staff advised both parties have agreed to mediation services. Therefore, staff recommended this item be tabled until the next Council meeting. Council Member O'Donnell moved to continue the FIRST READING of Ordinance No. 99 — 17. Council Member Carlson seconded the motion. Motion carried unanimously. COUNCIL MINUTES JANUARY 24, 2000 Consider Resolution No. 10 — 2000, Authorize Feasibility Study Southwest Area Trunk Utility Improvements (4/4 Vote Required) — John Powell — Staff advised the City of Shoreview has provided water service to the southwest portion of the City of Lino Lakes for about 14 years. This was originally intended to be a temporary situation. The two -(2) cities have agreed that this area would eventually be served by Lino Lakes facilities. In order to determine the most practical method of achieving this result, a detailed study must be initiated. Providing sanitary sewer to properties in this same area not served by the City's system will also be considered. Staff recommended Council adopt Resolution No. 10 — 2000, ordering a report on improvements for the Southwest Area Trunk Utility project. Council Member Carlson moved to adopt Resolution No. 10 — 2000, as presented. Council Member Dahl seconded the motion. Council Member Carlson voted yea. Council Member Dahl voted yea .1 Member O'Donnell voted yea. Mayor Bergeson voted yea. Motion carried unanimously. Resolution No. 10 — 2000 can be found at the end UNFINISHED BUSINESS Consideration of December 20, corrected page 9, paragraph 5 families and asked that this .1 Meeting Minutes — Council Member Carlson ised that St. Joseph's parish has over 2,000 e record". Council Member Dahl • � t•.prove the December 20, 1999, Council meeting minutes as amended. Mayor Bergs= onded the motion. Motion carried with Council Members Carlson and O'Donnell ..staining. NEW BUSINESS - None COMMUNITY CALENDAR JANUARY 24, 2000 THROUGH FEBRUARY 14, 2000 City Council Meeting, Monday January 24, 2000, 6:30 p.m. EDAC Meeting, Tuesday, January 25, 2000, 7:00 a.m. Special Planning & Zoning Board Meeting, Tuesday, January 25, 2000, 7:00 a.m. Environmental Board Meeting, Wednesday, January 26, 2000, 6:30 p.m. 16 COUNCIL MINUTES JANUARY 24, 2000 Public Safety Citizens Academy, Thursday, January 27, 2000, 7:00 p.m. Candidate Filing for Council Vacancy Closes, Tuesday, February 1, 2000 Candidates May Withdraw Until Noon, Wednesday, February 2, 2000 Special Planning & Zoning Board Meeting, Tuesday, February 1, 2000, 7:00 a.m. Public Safety Citizens Academy, Thursday, February 3, 2000, 7:00 p.m. Park Board Meeting, Monday, February 7, 2000, 6:30 p.m. Council Work Session, Wednesday, February 9, 2000, 5:30 p.m. Planning & Zoning Board Meeting, Wednesday, February 9, 2000, 6:30 p.m. Public Safety Citizens Academy, Thursday, February 10, 2000, 7: City Council Meeting, Monday, February 14, 2000, 6:30 p. ADJOURN There being no further business, Council Membe a ved to adjourn at 9:37 p.m. Council Member O'Donnell seconded the motion. �n � nanimously. These minutes were considered t th regular Council Meeting, February 28, 2000. • erk J hrI'Bergeson, Mayor • • • Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof, a j2] [special] meeting of the City Council of the City of Lino Lakes, Minnesota, was duly held in the City Hall in said City on Tuesday, August 24, 1999, commencing at 4:05 o'clock P.M. The following members were present: Kimberly Sullivan, John Bergeson and Caroline Dahl and the following were absent: Christopher Lydell and Wesley Neal *** 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 $680 ,000 General Obligation Water Utility Revenue Refunding Bonds, Series 1999B. The City Clerk -Treasurer presented a tabulation of the proposals which had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as follows: BMB-167651 LN 140.68 // 85 E. SEVENTH PLACE, SUITE 100 SAINT PAUL, MN 55101-2887 651-223-3000 FAX: 651-223-3002 $680,000 • CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION WATER UTILITY REVENUE REFUNDING BONDS, SERIES 1999B (BOOK ENTRY ONLY) AWARD: JOHN G. KINNARD & COMPANY, INCORPORATED SALE: August 24, 1999 SPRINGSTED Public Finance Advisors Moody's Rating: A3 Bidder Interest Rates Price JOHN G. KINNARD & COMPANY MILLER, JOHNSON & KUEHN, INC. CRONIN & COMPANY, INCORPORATED 4.25% 2002 4.35% 2003 4.45% 2004 4.60% 2005 4.70% 2006 4.80% 2007 4.90% 2008 $674,560.00 Net Interest True Interest Cost Rate $184,637.08 4.83054 4.55% 2002-2005 $674,560.00 $184,764.17 4.8374% 4.65% 2006 4.75% 2007 4.85% 2008 4.25% 2002 $675,240.00 $186,641.88 4.8786% 4.40% 2003 4.50% 2004 4.65% 2005 4.75% 2006 4.90% 2007 5.00% 2008 NORWEST INVESTMENT SERVICES, INC. 4.625% 2002-2004 $674,560.00 $189,836.67 4.9689% 4.70% 2005 4.80% 2006 4.90% 2007 5.00% 2008 These Bonds are being reoffered at par. • Subsequent to bid opening, the issue size was not changed. • BBI: 5.65% Average Maturity: 5.63 Years SAINT PAUL, MN • MINNEAPOLIS, MN • MILWAUKEE, WI • OVERLAND PARK, KS • WASHINGTON, DC • DES MOINES, IA • • • After due consideration of the proposals, Member Dahl then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: In accordance with the official Terms of Proposal, the following adjustments were made: None Principal Amount: Maturities: Minimum Purchase Price: RESOLUTION NO. 99-62 A RESOLUTION AWARDING THE SALE OF $680,000 GENERAL OBLIGATION WATER UTILITY REVENUE REFUNDING BONDS, SERIES 1999B; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; PROVIDING FOR THE ESCROWING AND INVESTMENT OF THE PROCEEDS THEREOF; AND PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED THEREBY. BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (the "City"), as follows: Section 1. Sale of Bonds. 1.01. The proposal of John G. Kinnard & Co. , Inc. (the "Purchaser") to purchase $ 680, 000 General Obligation Water Utility Revenue Refunding Bonds, Series 1999B (the "Bonds") of the City described in the Official Terms of Proposal therefor is determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $ 674,560 plus accrued interest to date of delivery, for Bonds bearing interest as follows: BMB-167651 LN 140-68 Year of Interest Year of Interest Maturity Rate Maturity Rate 2002 4.25% 2006 4.70% 2003 4.35 2007 4.80 2004 4.45 2008 4.90 2005 4.60 True interest cost: 4.8305 % 1.02. The sum of $ -0- , being the amount proposed by the Purchaser in excess of $ 674,560 , is credited to the Escrow Account or the debt service account hereinafter created, or designated to pay costs of issuance of the Bonds, as the case may be. 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 proposers 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 pursuant to Minnesota Statutes, Chapter 475 (the "Act") in the total principal amount of $ 680,000 , originally dated September 1, 1999, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially, without option of prior payment, on February 1 in the years and amounts as follows: Year Amount Year Amount 2002 $85,000 2006 $105,000 2003 85,000 2007 105,000 2004 90,000 2008 115,000 2005 95,000 Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described 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 the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of September 1, 1999. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2000, to the registered BMB-167651 LN 140-68 • • • • owners of record as ,of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "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 any transfer after the fifteenth day of the month preceding each interest payment date and until that 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 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 the Bond to the extent of the sum or sums so paid. BMB-167651 LN140-68 (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds 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 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. 2.04. Appointment of Initial Registrar. The City appoints U.S. Bank Trust National Association, Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Clerk - Treasurer are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting 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 City 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 City Clerk -Treasurer and executed on behalf of the City by the signatures of the Mayor and the City Clerk -Treasurer; provided, that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that 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 BMB-167651 LN140-68 • • • • unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City will deliver the same to the order of the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: • [Face of the Bond] • No. R - UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES GENERAL OBLIGATION WATER UTILITY REVENUE REFUNDING BOND, SERIES 1999B Rate Maturity Original Issue CUSIP February 1 September 1, 1999 Registered Owner: Cede & Co. The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received promises to pay to the Registered Owner specified above or registered assigns the Principal Amount set forth above on the Maturity Date specified above, without option of prior payment, and to pay interest thereon from the date hereof at the annual rate specified above, payable February 1 BMB-167651 LN140-68 and August 1 in each year, commencing August 1, 2000, 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 U.S. Bank Trust National Association, Saint Paul, 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 irrevocably pledged. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" 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. This Bond is one of an issue in the aggregate principal amount of $ , all of like original issue date and tenor, except as to number, maturity date and interest rate, all issued pursuant to a resolution adopted by the City Council on August 24, 1999 (the "Resolution"), for the purpose of providing money to refund in advance of maturity of the outstanding principal amount of certain general obligation bonds of the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 475.67, Subdivisions 4 through 12. The interest hereon to and including February 1, 2001 is payable from the Escrow Account described in the Resolution, and thereafter, the principal hereof and interest hereon are payable primarily from 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 water system 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 system and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and 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 Refunding Bonds, Series 1999B 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 hereon when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net water system revenues. BMB-167651 LN140-68 • • • • 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 attomey 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 will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota 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. • 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 or manual 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 BMB-167651 LN140-68 CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK TRUST NATIONAL ASSOCIATION By Authorized Representative The following abbreviations, when used in the inscription of the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT Custodian (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- 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: BMB-167651 LN140-68 • • • • 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 member of the Medallion Signature Program. 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: PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration BMB-167651 LN140-68 Registered Owner Officer of Registrar Cede & Co. Federal ID #13-2555119 Section 4. Payment; Security; Pledges and Covenants. 4.01. (a) Interest on the Bonds to and including February 1, 2001 is payable from the Escrow Account established pursuant to the Escrow Agreement described herein. Thereafter, the Bonds are payable from the Debt Service Fund created hereby. (b) 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 will be deemed net revenues and will be transferred from time to time, to a General Obligation Water Utility Revenue Refunding Bonds, Series 1999B Debt Service Fund (the "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. The debt service fund (but not the construction fund), heretofore established for the Refunded Bonds in the resolution providing for the issuance and sale of the Refunded Bonds is terminated, and all monies therein are thereby transferred to the Debt Service Fund herein created; provided, however, that the City Clerk -Treasurer is hereby authorized and directed to transfer from said Debt Service Fund those amounts determined by actuarial calculation at the time of delivery of the Bonds to be necessary to properly fund the Escrow Account established by Section 5 of this resolution. The Water Fund Accounts established in the resolution awarding the sale of the Refunded Bond are continued and will be maintained as therein provided. These accounts are the Operations Account, the Sinking Fund Account, the Construction Account and the Surplus Account. 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 City Clerk - Treasurer will report any current or anticipated deficiency in the Debt Service Fund to the City Council. 4.02. It is determined that the net revenues 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. 4.03. The City Clerk -Treasurer is directed to file a certified copy of this resolution with the County Auditor of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.04. The City Council covenants and agrees with the holders 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 a public utility and convenience free from competition of other like utilities and will cause all revenues therefrom to be deposited in bank accounts and credited to the water BMB-167651 LN140-68 • • • • system accounts as hereinabove provided, and will make no expenditures from said 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 will be open to inspection and copying by any bondholder, the bondholder'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. (d) The City Council will cause all 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. (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 plant and system as required by the laws of the State of Minnesota. (g) The City will impose and collect charges of the nature authorized by applicable Minnesota Statutes, 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 pledged for payment of the Bonds. BMB-167651 LN140-68 4.05. Prior Resolution Pledges. The pledges and covenants of the City made by the resolution awarding the sale of the Refunded Bonds (the "Prior Resolution") relating to the ownership, protection of and other particulars governing the operation and financial management of the municipal water system and the improvements thereto financed by the Bonds and the Refunded Bonds are restated and confirmed in all respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give full effect to the provisions of this resolution. Section 5. Refunding; Findings; Redemption of Refunded Bonds. 5.01. It is hereby found and determined that based upon information presently available from the City's financial advisers, the issuance of the Bonds will result in a reduction of debt service or interest cost to the City on the Refunded Bonds as follows: Net Effective Refunded Refunding Interest Rate Bonds Bonds 6.656% 4.822% The dollar value of such debt service or interest cost savings (the "Reduction") is $ 22, 367.50 , and the present value of the Reduction is $ 18, 249.34 . The dollaramount of the Reduction is 3.104 % of the *debt service iimlortatxosatf on the Refunded Bonds. The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by Minnesota Statutes, Section 475.67, Subdivision 12. 5.02. It is necessary to purchase from Bond proceeds investment securities required to fund the Escrow Account pursuant to this Resolution. Springsted Incorporated, as agent for the City is hereby authorized and directed to purchase (or to cause the Escrow Agent to purchase) for and on behalf of the City and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and this Resolution. As of the date of delivery of and payment for the Bonds the proceeds of the Bonds (the "Proceeds"), in the amount of $ 676,472.47 together with other funds (the "Funds") in the amount of $ -0- are hereby appropriated for such purpose as will be necessary to pay the principal of, interest on and redemption premium (if any) on the Refunded Bonds to their maturity or the date on which they are called for redemption, whichever date is earlier, less necessary expenses of the issuance of the Bonds and less any amount of Proceeds in excess of $ 674,560 required to be deposited in the Debt Service Fund, are hereby pledged and appropriated and will be deposited BMB-167651 LN 140-68 • • • • in an escrow account (the "Escrow Account") with U.S. Bank Trust National Association, Saint Paul, Minnesota, a suitable financial institution within the state, whose deposits are insured by the Federal Deposit Insurance Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution is hereby designated escrow agent (the "Escrow Agent") for such Proceeds and Funds. The Proceeds and Funds will be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as will be required to provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay when due the interest to accrue on each of the Refunded Bonds at maturity or on the date on which it is called as herein provided and to pay the principal amount of each such obligation at maturity or on the date on which it has been called for redemption and to pay any premium required for redemption on such date. The monies in the Escrow Account will be used solely for the purposes herein set forth and for no other purpose, except that if any surplus will remain in the Escrow Account after all of the Refunded Bonds and interest (and any premium) thereon are paid, then such balance will be transferred to the City. 5.03. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (i) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service Fund (or any other City account which will be used to pay principal and interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable temporary periods or minor portion made available under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 5.04. It is hereby found and determined that the Proceeds and Funds available and appropriated to the Escrow Account will be sufficient, together with the permitted earnings on the investment of the Escrow Account, to pay interest on the Bonds to and including February 1, 2001 and to pay on February 1, 2001, all of the principal of, interest on and redemption premium (if any) on the Refunded Bonds. 5.05. Securities purchased from the monies in the Escrow Account will be limited to securities specified in Section 475.67, Subdivision 8 of the Act. Springsted Incorporated, as agent for the City is hereby authorized and directed to purchase (or to cause the Escrow Agent to purchase) for and on behalf of the City and in its name, appropriate securities to fund the Escrow BMB-167651 LN140-68 Account. Upon the issuance and delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held pursuant to the terms of the Escrow Agreement and the Resolution. 5.06. The Refunded Bonds maturing on February 1, 2002 and thereafter will be redeemed and prepaid on February 1, 2001. The Refunded Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions set forth in the forms of Notice of Call for Redemption attached to the Escrow Agreement, which terms and conditions are hereby approved and incorporated herein by reference. The City Clerk -Treasurer is hereby authorized and directed to forthwith publish the Notice of Call for Redemption in a publication qualified under Section 475.54 of the Act and to send written notices of call to the paying agent for the Refunded Bonds, provided that published notice alone will be effective. 5.07. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be and are hereby irrevocably pledged. If the balance in the Escrow Account or Debt Service Fund is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which are available for such purpose, and such general fund may be reimbursed with or without interest from the Escrow Account or Debt Service Account when a sufficient balance is available therein. 5.08. Escrow Agreement. On or prior to the delivery of the Refunding Bonds, the Mayor and the City Clerk -Treasurer are hereby authorized and directed to execute on behalf of the City an escrow agreement (the "Escrow Agreement") with the Escrow Agent in substantially the form now on file with the City. All essential terms and conditions of the Escrow Agreement, including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. 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 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, will 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 BMB-167651 LN140-68 • • • • • • 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 7. Tax Covenants. 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. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements 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 the Bonds (together with other obligations reasonably expected to be issued in calendar year 1999) exceed the small -issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code, and further finds, determines and declares that the aggregate amount of all tax-exempt bonds (other than private activity bonds) issued by the City in 1992 (the year the Refunded Bonds were issued) did not exceed $5,000,000, and that the average maturity date of the Bonds is not later than the average maturity date of the Refunded Bonds. 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 following factual statements and representations: BMB-167651 LN 140-68 (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1999 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1999 have been designated for purposes of Section 265(b)(3) of the Code. 7.05. 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. Section 8. Book -Entry System; Limited Obligation of City. 8.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 8.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar), of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers BMB-167651 LN140-68 • • • with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter"), which will govern payment of, premium, if any,and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book -Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Continuing Disclosure. 9.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be BMB-167651 LN140-68 considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 9.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Clerk -Treasurer and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. The motion for the adoption of the foregoing resolution was duly seconded by Member Bergeson , and upon vote being taken thereon, the following voted in favor thereof: Kimberly Sullivan, John Bergeson and Caroline Dahl and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. BMB-167651 LN 140-68 • • STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF LINO LAKES ) I, the undersigned, being the duly qualified and acting City 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 atfilspecialYmeeting of the City Council of the City held on August 24, 1999, 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 $ 680,000 General Obligation Water Utility Revenue Refunding Bonds, Series 1999B, of the • City. • WITNESS My hand officially as such City Clerk -Treasurer City -this 2 day of August, 1999. BMB-167651 LN140-68 6c.X.444.,r\ Ci Clerk -Treasurer City of Lino Lakes, Minnesota