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05/23/2005 - 00001543 a _ - w ri CrrY OF FRIDLEY FRIDLEY CITY COUNCIL MEETING OF MAY 239 2005 7:30 p.m. - City Council Chambers Attendance Sheet Please print name, address and item number you are interested in. Print Name (Clearly); Address Item No. fry'✓ �' Z ^ (.✓ � /V � � CITY COUNCIL MEETING OF MAY 23, 2005 �ffY �F FRIDLEY The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, programs, or acrivities because of race, color, creed, religion, narional origin, sex, disability, age, marital status, seaual orientation or status with regard to public assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activiries. Hearing impaired persons who need an interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 572-3500 at least one week in advance. (TTD/572-3534) PLEDGE OF ALLEGIANCE. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: Board of Review Meeting of May 9, 2005 City Council Meeting of May 9, 2005 NEW BUSINESS: Approve Agreement Amendment for Curbside RecyclingServices ............................................................................................ 1 - 2 2. Resolution Authorizing Execution of Amendment No. 1 to Grant Agreement with the MPCA for Springbrook Watershed Implementation Project Phase II CWP Grant Project .............................................................................. 3- 6 FRIDLEY CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (CONTINUED): 3. Resolution Providing for the Issuance and Sale of $1,835,000 General Obligation Improvement Bonds, Series 2005A, Pledging for the Security Thereof Special Assessments, and Levying a Tax for the PaymentThereof ............................................................................................... 7 - 31 4. Resolution Providing for the Issuance and Sale of $4,680,000 General Obligation Tax Increment Refunding Bonds, Series 2005B and Pledging for the Security Thereof Tax Increments ........................................................... 32 - 53 5. Resolution in Support of an Application for a Minnesota Lawful Gambling Premise Permit for Spring Lake Park Lions Club (Sandee's Restaurant, 6490 Central Avenue N.E.) (Ward 2) ...................................................................................................... 54 - 55 6. Resolution Accepting Stipulation for Out of Court Settlement with Lawrence A. Chubb ........................................................ 56 - 57 7. Claims ....................................................................................................... 58 8. Licenses ....................................................................................................... 59 - 62 FRIDLEY CITY COUNCIL MEETING OF MAY 23, 2005 PAGE 3 ADOPTION OF AGENDA. OPEN FORUM (VISITORS): Consideration of Items not on Agenda — 15 Minutes NEW BUSINESS: 9. Resolution Approving a Minor Comprehensive Plan Amendment, CP #05-01, by Har-Mar Incorporated, for Property Located on Lots 4-6, Block 1, Paco Industrial Park, Except the North 35 Feet of Lot 4, Generally Located at 7110-90 University Avenue N. E. (Ward 3) ..................................................................................................... 63 - 64 10. First Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #05-01 by Har-Mar Incorporated, for Property Generally Located at 7110-90 University Avenue N.E.) (Ward 3) ....................................................................................................... 65 - 66 11. Informal Status Report ....................................................................................... 67 ADJOURN. BOARD OF REVIEW CITY OF FRIDLEY MAY 9, 2005 The Board of Equalization and Review for the City of Fridley was called to order by Mayor Lund at 7:00 p.m. PLEDGE OF ALLEGIANCE: Mayor Lund led the Council and audience in the Pledge of Allegiance to the flag. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Mary Smith, City Assessor Rebecca Brazys, Recording Secretary Lynn Krachmer, City Appraiser STAFF PRESENTATION: (The subject property owner, Samy Ahmed, was not present. He was contacted by telephone and indicated that he did not plan to attend the meeting.) Ms. Smith, City Assessor, explained that this is a continued meeting of the local Board of Review that was held on April 25, 2005. At that meeting, Mr. Samy Ahmed of 5683 West Bavarian Pass was present and spoke about the January 2, 2005 estimated market value of his home in the amount of $158,600. It was the Board's decision to have staff view Mr. Ahmed's home, which has been done. The Board has three possible courses of action they can take on this case: affirm, reduce, or increase the 2005 estimated market value based on the information presented. Market value is defined as "the most probable price expressed in terms of money that a property would bring if exposed for sale on the open market in an arm's length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which it is capable of being used." If upon reaching a decision, the property owner feels the Board did not resolve his concerns, he may bring his case to the County Board of Appeal and Equalization which is being held on June 13. Ms. Smith explained that assessing staff physically viewed Mr. Ahmed's property on April 26, 2005. This property consists of a split foyer townhome with 798 square feet on BOARD OF REVIEW MEETING OF MAY 9, 2005 PAGE 2 the main floor and lower level finishing of 718 square feet. Located on the lower level are a family room, bedroom, fireplace and extra bath. This property is in average condition and did have a new furnace, air conditioner, and hot water heater installed in 2001. This would not tend to increase the estimated market value; however it may contribute to a higher selling price. At the time of the staff's viewing, Mr. Ahmed provided staff with a one-page review of his property given to him by Dawn Jarl of Counselor Realty. This review has been included in the packet provided for Council. Listed on this review is the date the information was prepared, the subject property address, the recommended price range, and comparable properties that were active listings or sold properties as of November 24, 2004. The realtor Mr. Ahmed consulted came up with a recommended price range from $152,550 to $161,988 for his property. Ms. Smith explained that staff was unable to confirm the two properties listed as active. They are not currently listed in the MLS online website nor have they received certificates of real estate value for them indicating they were sold. Staff confirmed the three sold properties that were listed as follows: • 5605 West Bavarian Pass listed for $139,900 and sold for $130,000 in September 2004. This property is a split foyer townhome consisting of 796 square feet. In speaking with the buyer, it was discovered that the property's interior was in rough shape with a lot of work required. During the last inspection period, staff was unable to gain access to the property. • 5663 West Bavarian Pass listed for $174,900 and sold for $171,000 in April 2004. This property is a split foyer townhome consisting of 798 square feet. The buyer told staff that no updating had been done prior to the sale and the property had all the original mechanicals and appliances and was in average condition. This property was last inspected in September 2003 by City staff. • 5415 West Bavarian Pass listed for $174,900 and sold for $170,000 in October 2004. This property is a rambler on slab townhome (which is different than the subject property) consisting of 1,086 square feet. In speaking with the seller, it was indicated that there was some cosmetic updating done before the sale including carpeting, painting and a new hot water heater. The furnace was original. This property was tagged and information reviewed by telephone with the previous owner in September 2003. Ms. Smith stated the first step staff took to review this property was to run a query for all split foyer townhome sales that occurred in this area from October 1, 2003, to September 30, 2004 (State Sales Study period). Out of the 8 sales, staff chose three with similar square footages to use for the sales analysis. Staff's review is as follows: • Comparable 1: 1525 Trapp Court — This property sold in November 2003 for $159,500 and consists of 798 square feet. In speaking with the seller, it was indicated that only cosmetic updating occurred prior to the sale which included BOARD OF REVIEW MEETING OF MAY 9, 2005 PAGE 3 some painting and replacement of floor coverings. The mechanicals were original (1979). This property was last inspected in October 2003 by staff. • Comparable 2: 5663 West Bavarian Pass —(This comparable was also used by the realtor for the property owner's analysis.) This property sold in April 2004 for $171,000 and consists of 798 square feet. In speaking with the buyer, it was indicated that there was some cosmetic updating before the sale. The buyer also stated that the property had all the original mechanicals and appliances (1979) and was in average condition. This property was last inspected by staff in September 2003. • Comparable 3: 1531 Trapp Court — This property sold in April 2004 for $184,000 and consists of 798 square feet. In speaking with the seller it was stated that the only updating prior to the sale was cosmetic with some painting of rooms and replacement of floor coverings. The mechanicals for this property were also original (1979). This property was last viewed by staff in October 2003. Ms. Smith stated the following adjustments were made to the above comparables to make them similar to the subject: Time adjustments were made to adjust each sale to the January 2, 2005, assessment date. Other adjustments were made for differences to fireplaces, garage square footage, basement finishing, porches and decks, walkouts, age, and size. The average value determined after adjustments was $176,400. Ms. Smith stated it is the recommendation of the Assessor that after physically viewing 5683 West Bavarian Pass and analyzing sales data, that the 2005 estimated market value for Pin No. 24-30-24-41-0204 remain the same at the established value of $158, 600. MOTION by Councilmember Wolfe, seconded by Councilmember Bolkcom, to affirm the appraised value of $158,600. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Respectfully submitted by, Rebecca Brazys Scott J. Lund Recording Secretary Mayor CITY COUNCIL MEETING CITY OF FRIDLEY MAY 9, 2005 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: Mayor Lund Councilmember-at-Large Barnette Councilmember Billings Councilmember Wolfe Councilmember Bolkcom OTHERS PRESENT: William Burns, City Manager Fritz Knaak, City Attorney Richard Pribyl, Finance Director Scott Hickok, Community Development Director Don Abbott, Public Safety Director Rebecca Brazys, Recording Secretary PROCLAMATIONS: Mayor Lund read and presented the following proclamations: Peace O�cers Memorial Day: May 15, 2005 Veterans' Buddy Poppy Day: May 20 2005 Mediation Services for Anoka County Day: May 24, 2005 Public Works Week: May 16 — 22, 2005 APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: • Approval of the minutes of the April 25, 2005 Board of Review meeting. APPROVED • Approval of the minutes of the April 25, 2005 City Council meeting. APPROVED FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 2 NEW BUSINESS: 1. Resolution Approving a Plat, P.S. #05-01, Gospel Hall Addition, by Dale Christiansen, Roslyn Park Wesleyan Church, for the Purpose of Creating a Three-Lot Plat and to Separate Church from Residential Properties, Generally Located at 5300 6t" Street, 401 53rd Avenue, 5315 5t" Street, and a Vacant Lot North of 5315 5t" Street NE (Ward 1). Dr. Burns, City Manager, stated this new plat would separate the church and the adjacent vacant lot from two residential properties. The new plat will consist of three separate properties including 5600 6t" Street, 401 53rd Avenue, and 5315 5t" Street (together with the vacant lot that lies north of 5315 5t" Street). Staff recommends approval of the new plat with the six stipulations below: 1. Petitioner to provide drainage and utility easements as shown on the preliminary plat drawing. 2. Petitioner shall provide any easements required by Kaneb Pipeline prior to final plat approval. 3. The property owner of 5300 6t" Street shall continue to provide reasonable seasonal maintenance as necessary to assure access to and from the non-vacated portion of the alley. 4. The alley shall be sufficiently labeled to prevent the entrance from being blocked. 5. The existing garage at 5315 5t" Street shall be made accessible by construction of an approved surface driveway and the filing of an easement for access from Lot 1, or a new driveway and garage (with direct access from 5t" Street) shall be constructed within one year of final plat approval. 6. Proof of parking on vacant lot north of 5315 5t" Street shall be required to be installed if there is an expansion to the church or the City deems that it is necessary. ADOPTED RESOLUTION NO. 2005-21. 2. Claims (12414-121588). APPROVED. 3. Licenses. APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 3 4. Estimates. APPROVED. MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to approve the consent agenda as presented. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. ADOPTION OF AGENDA MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to approve the agenda with Items 5, 6 and 7 considered in reverse order. Mr. Hickok, Community Development Director, explained that he planned to present Items 6 and 7 together as one presentation with two separate actions. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to approve the agenda. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM (VISITORS): Consideration of items not on agenda — 15 minutes. No comments were made. PUBLIC HEARINGS: 6. Consideration of a Resolution Approving a Minor Comprehensive Plan Amendment, CP #05-01, by Har-Mar Incorporated, for Property Located on Lots 4-6, Block 1, Paco Industrial Park, except the North 35 Feet of Lot 4, Generally Located at 7110-90 University Avenue NE (Ward 3). 7. Consideration of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #05-01, by Har-Mar Incorporated, for Property Generally Located at 7110-90 University Avenue NE) (Ward 3). MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to open the public hearings. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 4 Mr. Hickok, Community Development Director, stated the petitioner in this case is Jerome O'Brian Slawik with Har Mar Incorporated as the owner/manager of the property. The request is a rezoning from M-1, Light Industrial, to C-2, General Business. The purpose of this request is to allow the Billiard Street Cafe to obtain a liquor license. The petitioner needs to meet the definition of a restaurant to obtain a liquor license which means that 40% of the total gross sales of the business must be from serving food. Once established, the facility must have a minimum of 40% food sales to maintain a liquor license. Mr. Hickok explained this property is just north of Community Park between Commerce Circle East and University Avenue and fronts along University Avenue. The original zoning on this property was R-3, Multi-family. In 1967, the zoning changed to CR-2, Office, Service and Limited Business. The service drive was then moved west and Commerce Circle East was created. In the 1970s, the property was zoned C-2, General Business. In 1980, the subject parcel, originally part of a larger development plan, was rezoned to M-1, Light Industrial. As tenants occupied the space, the intended warehouse use evolved into a predominant office use. In 1986, a special use permit was approved to allow a surgeon's office. In 1986, a variance was approved to reduce the parking setback on the west side and to reduce parking stall width to 9 feet on spaces adjacent to the building. In 1988, a special use permit was approved to allow operation of a billiard, arcade, and snack bar in the M-1 district. In 1997, a special use permit was modified to allow an expansion of the commercial recreational use (billiards) in the M-1 zoning. In 2001, a special use permit was granted to allow another expansion of the billiard hall. Mr. Hickok stated that staff takes rezoning requests through a series of steps and asks a series of questions to make certain it can pass. The first question is whether or not the proposed zoning is consistent with the uses at the building. Staff found that for this petition, the proposed rezoning is consistent with current uses. Staff also found that the proposed rezoning is consistent with other property north along the University Avenue corridor. Staff did find, however, that this proposal is not consistent with the City's Comprehensive Plan which is why the minor Comprehensive Plan Amendment has been proposed. With respect to the Comprehensive Plan, staff found that there will be no impact on Metropolitan systems; there will be no changes to the service boundary as Fridley is completely within the Metropolitan service boundaries; there will be no changes to timing and staging of the urban service area; there will be no impact on the wastewater treatment as this is an existing facility; and there will not be discharge to more than one Metropolitan interceptor. Mr. Hickok said that the parcel has 165 parking stalls and 264 stalls would be required. Accordingly, it has only 63% of the required parking area. However, a mix of uses is co- existing now without parking problems due to differing business hours. By stating that this property is appropriate to be rezoned, Council would be recognizing that there is a variance involved. This variance has a stipulation attached which requires that future uses be reviewed and that the manager recognizes there must not be any issues with FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 5 future uses conflicting with current uses or the City has the authority to say no to that use. Mr. Hickok said that at their April 20 meeting, the Planning Commission unanimously recommended approval of the rezoning and the Comprehensive Plan Amendment. Staff also recommends approval of the proposed rezoning because it provides consistency along the University Avenue corridor and allows a better fit for the current uses at the subject property. Staff inet with other tenants at this location and found them to be supportive of this request. Staff also recommends approval of the Comprehensive Plan Amendment as the proposed minor amendment provides consistency for zoning designations along the western edge of the University Avenue corridor and the proposed minor amendment will not have an impact on Metropolitan systems. Mr. Hickok stated staff recommends the following stipulations be attached: • The development owner shall notify the City of any future additions/expansions or tenant change-outs and shall accept limitations on occupancy of the building should parking shortages result. • Any and all special use permits tied to the industrial zoning will be nullified with this rezoning to C-2. Councilmember Barnette questioned why this request is inconsistent with the Comprehensive Plan. Mr. Hickok stated the property is currently zoned industrial which matches the Comprehensive Plan map. However, the Comprehensive Plan text is consistent with the current uses. Councilmember Bolkcom questioned the wisdom of seeking the rezoning simply because the petitioner wants a liquor license. Mr. Hickok replied if the petition did not make sense from a zoning perspective it would not have gotten this far. This property is the oddity as far as zoning along that section of the University Avenue corridor. This is not spot zoning and it is not for the favor of a certain individual. Councilmember Bolkcom asked if any of the current tenants would not qualify under C-2. Mr. Hickok responded no, they could all exist in the M-1 or C-2 district. Staff inet with one of the tenants they were concerned about and that tenant had no issues with the rezoning and, in fact, was supportive of the proposal. FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 6 Councilmember Bolkcom questioned if the increased food sales the petitioner is hoping for will impact the parking. It appeared there is a lot of ownership being put back on the City related to future parking issues. Mr. Hickok stated staff believes the parking stipulation puts the ownership back on the property owner by requiring that any future tenant changes be reviewed and approved by City staff. If there were more land at this site, staff would recommend a proof of parking arrangement. This stipulation forces the owner to continue looking for a mix of uses that will ensure that parking does not become a problem. Councilmember Bolkcom asked Mr. Hickok to review the variances and special use permits previously approved for this property that will be nullified by this rezoning. Mr. Hickok explained the variance for the reduced parking setback and driveway width will stay with the land. Only the special use permits will go away because those uses are allowed in the C-2 zoning being requested. Mayor Lund asked if Council action would be required once the rezoning has been approved. Mr. Hickok stated a record is being created by Council's action tonight, so no additional Council action would be required. Also this record will be recorded at the County level. Mr. Todd Phelps, Leonard Street & Deinerd, representing the property owner, stated the owner fully understands staff's requirement to inform the City of any tenant changes. All the current tenants are happy and none of the leases are due any time soon, so they do not anticipate any changes in the near future. On behalf of the petitioner, he stated they concur with City staff's recommendation. MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to close the public hearing for CP #05-01 and ZOA #05-01. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. Consideration of an On-Sale Intoxicating Liquor License for Billiard Street Cafe, Generally Located at 7178 University Avenue N.E. (Ward 3). MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to open the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Pribyl, Finance Director, stated the Billiard Street Cafe has been in business at the same location for 17 years. The building in which the business is located is at 7178 FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 7 University Avenue and is owned by Har-Mar Incorporated. In order for the property to be considered for a liquor license, a rezoning to C-2 is required. This location has a conforming restaurant that has been serving food since 1997. The Police Department has reviewed the backgrounds on the owner and manager and finds no reason to deny the request. During discussions with the business owner, staff found some items that will change some of the business practices at this location. One item is that no person under the age of 18 shall be in the business other than for the purpose of consuming meals or working. Also, the applicant has applied for a 2:00 a.m. closing and has been instructed that the business and parking lot is to be emptied by 2:30 a.m. except for employees. In addition, the applicant has been instructed as to the minimum/maximum 40/60 ratio of food to alcohol requirement. Councilmember Bolkcom asked if the 2:00 a.m. closing has a different requirement that must be met. Mr. Pribyl stated there are some issues that the Police Department has with respect to making sure the business and parking lot are vacated by patrons. There is a separate record-keeping requirement as far as monitoring the food to liquor ratio. The petitioner is aware of both of these issues. Councilmember Bolkcom asked how the Billiard Street Cafe owner will manage minors playing billiards when alcohol will be served. Mr. Gregory Asproth, Billiard Street Cafe owner, stated he understands that the City Code will not allow anyone under the age of 18 to play pool without a parent or guardian. He explained that he worked with City staff to create a policy for patrons under the age of 21 (a copy was presented to Council members). This policy calls for ID checks for all patrons as well as wristbands and hand stamping for all patrons under the age of 21. He will also continue talking with the Police Department on a regular basis. In addition, all servers and managers will be thoroughly trained in handling minors. They will also participate in the Liquor Awareness Program through the Fridley Police Department. He understands that handling minors in a liquor establishment is a very serious issue. Councilmember Bolkcom asked what the hours of operation will be for the restaurant and how they will encourage people to eat to ensure the food to liquor ratio is met. Mr. Asproth replied they are currently working with consultants in the restaurant business. They would like to change their menu and promote it in the local paper and other areas. Not having a liquor license has caused them to lose a lot of business, such as private parties and billiard leagues. The restaurant is open from 10:00 a.m. to just before close. They currently serve food 17 to 18 hours a day. There was some discussion whether or not an 18 year old would be considered an adult or guardian for a minor. FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 8 Mr. Abbott, Public Safety Director, stated the ordinance would provide for persons under the age of 18 to play pool provided they are accompanied by a parent or guardian. His interpretation is that a guardian would have to be an official or assigned guardian. He would not consider an 18 year old brother or sister a legal guardian. Councilmember Barnette pointed out that minors are allowed to bowl without a parent and questioned why the billiard hall is handled differently. Also, the food to liquor ratio for a bowling alley is 40/60 rather than the 30/70 for the billiard hall. Mr. Abbott stated City Code allows a minor to enter a bowling center but does not allow that in the case of any other liquor licensee. The primary responsibility will fall on Mr. Asproth to ensure that a minor is not served alcohol, but having a parent or guardian present offers an additional layer of protection to keep minors from coming into contact with alcohol. Councilmember Billings asked what the current ratio of food to billiard sales is at Billiard Street Cafe. He also asked Mr. Asproth if he thinks the percentage of billiard sales will increase as much as the food and alcohol sales. Mr. Asproth responded that food sales make up 39% and billiard sales 59%. He anticipates there will be more leagues playing than open billiards which may result in lower billiard sales. They hope not to lose the focus on billiards, as that is their business. Councilmember Billings commented that even though Billiards Street Cafe has been at this location for 17 years the number of problems have been insignificant at best. Based on the way they have run their business, he does not see any reason why they will not be able to successfully address the issues discussed at tonight's meeting. He said he is very supportive of the liquor license for Billiards Street Cafe as long as Mr. Asproth understands that the City feels this is a restaurant that happens to serve liquor and happens to have billiards. MOTION by Councilmember Bolkcom, seconded by Councilmember Barnette, to enter into the record a one-page statement entitled "Billiard Street Cafe Policy (Under Age 21).,, Councilmember Billings stated he would like to indicate for the record that while this policy is being received into the record, it does not necessarily mean that by accepting it into the record Council is indicating that by following these procedures Billiard Street Cafe will be held harmless from any violations that may occur. This is Billiard Street Cafe's responsibility and their policy is being entered into the record as an indication of their intent to try and police the activities inside their doors. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. FRIDLEY CITY COUNCIL MEETING OF MAY 9, 2005 PAGE 9 MOTION by Councilmember Bolkcom, seconded by Councilmember Wolfe, to close the public hearing. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. Mayor Lund informed the petitioner that Council will take action on their requests at the May 23 City Council meeting. NEW BUSINESS: 8. Informal Status Report. None. ADJOURN MOTION by Councilmember Barnette, seconded by Councilmember Wolfe, to adjourn. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:45 PM. Respectfully submitted by, Rebecca Brazys Scott J. Lund Recording Secretary Mayor � � CffY OF FRIaLEI' AGENDA ITEM CITY COUNCIL MEETING OF MAY 23, 2005 Date: May 19, 2005 To From Subj ect: William Burns, City Manager Scott Hickok, Community Development Director Julie Jones, Planning Coordinator Rachel Harris, Environmental Planner Recycling Contractor Name Change BFI Waste Systems of North America, Inc. is indirectly a wholly owned subsidiary of Allied Waste Industries, Inc. BFI Waste Systems of North America has been owned by Allied Waste Industries, Inc. (AWI) since an acquisition that took place in 1999. BFI Waste Systems of North America, Inc. requests that the City of Fridley recognize the change in its legal name to "Allied Waste Services of North America, LLC". This request is a result of AWI's internal efforts to restructure certain subsidiaries to be administratively consistent with other existing operations. BFI staff reports that there will be no change in personnel or any other aspect of the local operations as a result of this administrative adjustment. Recommendation Staff recommends that the City Council approve the attached agreement amendment. Staff further recommends that the City Manager be authorized to execute the contract amendment. M OS-35 FORM OF ASSIGNMENT LETTER ALLIED WASTE SERVICES OF NORTH AMERICA, LLC May 5, 20Q5 City of Fridley Rachel Harris 6431 University Ave NE Fridley, MN 55432 Re: Agreement for Curbside Recycling Services Dear Rachel: BFI Waste Systems of North America, Inc. ("BFINA"), a Delaware corporation and an indirect wholly-owned subsidiary of Allied Waste Industries, Inc., a Delaware carparation ("AWI Parent"), hereby requests that the City of Fridley give written cansent to an assignment by BFINA of the above-referenced Agreement and all rights, title and interest therein of BFINA to its subsidiary, Allied Waste Services of North America, L,L,C ("AWSNA"), a Delaware limited liability company. AWSNA hereby agrees to assume all responsibilities in compliance with the terms and canditions of the above-referenced Agreement and any liabilities associated therewith. This assignment is being requested as a result of AWI Parent's internal effarts to restructure certain of its subsidiaries to be administratively consistent with other existing operations. As part of this subsidiary restructuring project, the membership in AWSNA ultimately will be transferred to Browning-Ferris Industries, LLC ('BFILLC"). However, it is important ta note that the current management and operations of the variaus local operatians will not be affected hy this assignment. While the change results from a purely internal transfer of assets and liabilities, the change is in the nature af a name change, in that the ultimate owner of BFINA, AWSNA, and BFILLC remains AWI Parent. There will be na change in personnel or any other aspect of the local operatians as a result of this administrative adjizstment. We remain firmly cammitted ta ihese operations. Any and all amendments ta existing financial assurance documents will be forwarded to you as soon as possible. Please confirm your written consent to this assignment by executing this letter as indicated belaw and returning it to the facility's address located at: BFI Waste Systems Rich Hirstein 9813 Flying Claud Drive Eden Prairie, MN SS347 Should you have any questions or concerns regarding this request, please contact Elaine K.uether, Corporate Paralegal at (480) 627-2.370, ar the local manager, Rich Hirstein at (952) 946-5330. Sincerely, BFI WASTE SYSTEMS OF NORTH AMERI(:A, INC. and ALLIEA WASTE SERVICES OF NORTR AMERICA, LLC BY: TITLE: AGREED AND ACCEPTED TO AS OF THE _ DAY OF , 2005. City of Fridley � TITLE: � � CffY OF FRIaLEI' AGENDA ITEM CITY COUNCIL MEETING OF May 23, 2005 Date: May 18, 2005 To From Subj ect: William Burns, City Manager Scott Hickok, Community Development Director Julie Jones, Planning Coordinator Springbrook Watershed Implementation Grant Extension Background In March, upon recommendation by our Minnesota Pollution Control Agency representative, staff notified the MPCA that we would like a one-year extension on our Springbrook Watershed CWP Implementation grant. This Clean Water Partnership grant is due to expire on May 29, 2005. Expenses made related to the proj ect after this date cannot be covered by grant funds. Since it was possible that the streambank restoration proj ect in the Nature Center would not be finalized by May 29, staff requested the extension. A few days ago, staff was informed that the extension request must be approved by resolution by the project sponsor, which is the City of Fridley. The resolution and agreement amendment, extending the grant term another year, are attached for your review. Approval of the resolution and grant agreement amendment will ensure that the City of Fridley can obtain the MPCA CWP grant funds dedicated to the Springbrook Watershed project. In addition, the extension may permit the City to apply for additional grant funds. Staff has just learned this week that the Springbrook Watershed proj ect is eligible to apply for "continuation" CWP grant funds if needed to complete the proj ect. As you recall, the proj ect was recently scaled back to provide adequate funding for the Springbrook Stream restoration portion of the proj ect. If any funding is unspent in the grant proj ect, the City of Fridley could use that unspent money and any additional funds to meet the 50-50 match requirement to obtain additional grant funds noncompetitively. However, such application must be submitted to the MPCA by June 6, 2005, prior to the next City Council meeting. Recommendation Staff recommends that the City Council approve the attached resolution and agreement extension and authorize the City Manager to execute the documents on the City's behalf. Unless otherwise directed, staff will investigate the feasibility of applying for "continuation" grant funds to complete the project as planned in the previous Work Plan approved by the project's Advisory Committee by the June 6 deadline. RESOLUTION NO. -2005 A RESOLUTION AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO GRANT AGREEMENT WITH THE MPCA FOR SPRINGBROOK WATERSHED IMPLEMENTATION PROJECT PHASE II CWP GRANT PROJECT BE IT RESOLVED by the City Council, that the City of Fridley enter into a Grant Agreement identified as CFMS Number A35923 with the Minnesota Pollution Control Agency in 2002 to conduct the following project: Springbrook Watershed Implementation Project; and BE IT FURTHER RESOLVED that the City of Fridley desires to extend the grant agreement one additional year to permit completion of the project, which was delayed due to complications in bidding and a shortage of funding; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Fridley, that the City of Fridley approve the attached Amendment No. 1 to Agreement CFMS Number A35923 with the Minnesota Pollution Control Agency to extend the Springbrook Watershed CWP Implementation Project one additional year. BE IT FURTHER RESOLVED by the City Council, that the City Manager be authorized to execute the attached Grant Agreement Amendment for the above mentioned project on behalf of the City of Fridley. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF , 2005. Scott J. Lund - Mayor ATTEST: Debra Skogen - City Clerk AMENDMENT NO. 1 TO GRANT AGREEMENT CFMS NO. A35923 Start Date: May 30, 2002 Total Amount: $200,669 Original Expiration Date: May 29, 2005 Original Amount: $200,669 Current Expiration Date: May 29, 2005 Previous Amend: $-0- Requested Expiration Date: May 29, 2006 This Amendment: $-0- CLEAN WATER PARTNERSHIP GRANT AGREEMENT AMENDMENT MINNESOTA POLLUTION CONTROL AGENCY This Amendment is by and between the State of Minnesota, through its Commissioner of the Minnesota Pollution Control Agency (STATE or MPCA) and the City of Fridley (SPONSOR or PRO7ECT SPONSOR), 6431 University Avenue NE, Fridley, Minnesota 55342 RECITALS 1. The State of Minnesota through it's Pollution Control Agency (STATE or MPCA), has a Grant Agreement identified as CFMS Number A35923 (ORIGINAL AGREEMENT) with THE City of Fridley (SPONSOR) to conduct the "Springbrook Subwatershed Implementation Project-CWP02" 2. Minnesota Rules Chapter 7076, which governs the administration of the Clean Water Partnership Grant Program, provides that the Grant Agreement Period may be extended. 3. Because of unforeseen difficulties, the amount of time needed to complete all of the tasks required under the Proj ect was underestimated. 4. The MPCA and the SPONSOR have agreed that additional time is now necessary for the satisfactory completion of the ORIGINAL AGREEMENT. 5. The ORIGINAL AGREEMENT states in Section I. Summary, and in Section IV (C)(2). Budget Period, that this Grant Agreement shall be effective upon the date that the last signature is obtained by the State, pursuant to Minn. Stat. § 16C.05, subd. 2, and remain in effect for three (3) years. 6. The last signature was obtained by the State, pursuant to Minn. Stat. § 16C.05, subd. 2, on May 30, 2002 and the ORIGINAL AGREEMENT is set to expire under its own terms on May 29, 2005. 7. The STATE and the SPONSOR now agree that the Grant Agreement Period should be extended one additional year. 8. The ORIGINAL AGREEMENT and any previous amendments are incorporated into this amendment by reference. AGREEMENT AMENDMENT cwPtX.doo 3�os CWP Grant Agreement Amendment MPCA/Regional AMENDMENT NO. 1 TO GRANT AGREEMENT CFMS NO. A35923 In this Amendment deleted agreement terms will be struck out and the added agreement terms will be underlined. REVISION 1. That Section I. SUNINIARY is amended as follows: PERIOD COVERED BY THIS AGREEMENT: This Agreement shall be effective upon the date that the last signature is obtained by the State, pursuant to Minn. Stat. § 16C.05, subd. 2, and shall remain in effect � r*�T �throu�h May 29, 2006 or until all obligations set forth in this contract have been satisfactorily fulfilled, whichever occurs first. The Project Sponsor must not begin work under this Agreement until this Agreement is fully executed and the Project Sponsor has been notified by the State's Authorized Representative to begin work. REVISION 2. That Section IV (C)(2) Budget Period: is amended as follows: This Agreement shall be effective upon the date that the last signature is obtained by the State, pursuant to Minn. Stat. § 16C.05, subd. 2, and shall remain in effect ��r *�T �throu�h May 29, 2006 or until all obligations set forth in this contract have been satisfactorily fulfilled, whichever occurs first. Except as herein amended, the terms and conditions of the original Grant Agreement remain in full force and effect and are expressly reaffirmed by the parties. APPROVED 1. STATE ENCUNIBRANCE VERIFICATION Individual certifies that funds have been encumbered as required by Minn.Stat. §§ 16A15 and 16C.05. Signed Date CFMS Number 2. SPONSOR: CITY OF FRIDLEY SPONSOR certifies that the appropriate person(s) have executed the Amendment on behalf of the SPONSOR as required by applicable articles, by- laws, resolutions, or ordinances. By T1t10 Date 3. STATE AGENCY: MINNESOTA POLLUTION CONTROL AGENCY I� Title Date cwPtX.doo 3�os CWP Grant Agreement Amendment MPCA/Regional 2 � � CffY OF FRIQLEY T0: : / li AGENDA ITEM COUNCIL MEETING OF MAY 23, 2005 WILLIAM W. BURNS, CITYMANAGER RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT: RESOL UTION PROVIDING FOR THE ISSUANCE OF THE CITY'S �1, 835, 000 GENERAL OBLIGATION BONDS, SERIES 2005A DATE: May 19, 2005 Attached is the resolution provided to us by our Bond Counsel, Mary Ippel from the firm of Briggs & Morgan. The resolution is for the sale of $1,835,000 in General Obligation Improvement Bonds. As you will recall, these bonds are being issued to provide funds for the needed street improvements that are part of the City's Street Reconstruction Program. The debt service on these bonds are being provided by the revenue generated through the general levy, as was discussed in a recent meeting with Council. As part of the process of issuing these bonds, the City of Fridley is required to undergo a fairly rigorous financial review process conducted by Moody's Investor Service who acts as our bond rating agency. As of the writing of this memo we are awaiting the call from our representative from Moody's as to how the rating committee viewed the City's financial stability. It is hoped that we will once again be provided with a Aal rating, which is the highest rating a City of our size is capable of attaining. Since the bids are not due until Monday, May 23rd, the information from the bidders will not be available until the evening of the Council Meeting. A representative from Ehlers will be present to review the results of the bidding process and make a recommendation for the lowest underwriter or syndicate. RDP/me Attachment i�6si3a�i Resolution No. 2005-_ Page 2 RESOLUTION NO. 2005- RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,835,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2005A, PLEDGING FOR THE SECURITY THEREOF SPECIAL ASSESSMENTS, AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Fridley, Minnesota (the "City") has heretofore determined and declared that it is necessary and expedient to issue $1,835,000 General Obligation Improvement Bonds, Series 2005A (the "Bonds" or individually, a"Bond"), pursuant to Minnesota Statutes, Chapters 475 and 429 to finance various improvement proj ects within the City (the "Improvements"); and B. WHEREAS, the Improvements and all their components have been ordered prior to the date hereof, after a hearing thereon for which notice was given describing the Improvements or all their components by general nature, estimated cost, and area to be assessed; and C. WHEREAS, the City has retained Ehlers and Associates, Inc, in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Ehlers; and D. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Manager, or designee, at the offices of Ehlers, at 11:00 AM. this same day pursuant to the Terms of Proposal established for the Bonds; and E. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fridley, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of (the "Purchaser"), to purchase the Bonds in accordance with the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ , plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The City Finance Director-Treasurer is directed to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good faith checks or drafts. 2. Bond Terms. (a) Title; Ori�inal Issue Date; Denominations; Maturities. The Bonds shall be dated June 15, 2005, as the date of original issue and shall be issued forthwith on or after such date in fully registered form. The Bonds shall be numbered from R-1 upward in the denomination of i�6si3a�i 2 Resolution No. 2005- Page 3 $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All dates are inclusive. As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Onl�. s�. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO, as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the i�6si3a�i Resolution No. 2005- Page 4 Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subj ect to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar i�6si3a�i 4 Resolution No. 2005- Page 5 may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5, make a notation of the reduction in principal amount on the panel provided on the Bond stating the amount so redeemed. (c) Termination of Book-Entry Onl�. s�. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10. (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. i�6si3a�i Resolution No. 2005-_ Page 6 3. Purpose. The Bonds shall provide funds to finance the Improvements. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Improvements proceeds with due diligence to completion and that any and all permits and studies required under law for the Improvements are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2006, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturit.� Interest Rate Maturit.� Interest Rate 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 5. Redemption. All Bonds maturing on February 1, 2014, and thereafter, shall be subj ect to redemption and prepayment at the option of the City on February 1, 2013, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds at least thirty days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds i�6si3a�i 6 Resolution No. 2005- having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Page 7 6. Bond Re�istrar. Bond Trust Services Corporation, in Roseville, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: i�6si3a�i 7 Resolution No. 2005- I� UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF FRIDLEY $ GENERAL OBLIGATION 1MPROVEMENT BOND, SERIES 2005A Page 8 Interest Rate Maturit.� Date of Ori�inal Issue CUSIP February 1, June 15, 2005 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Fridley, Anoka County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, unless called for earlier redemption, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2006, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the Bond Trust Services Corporation, in Roseville, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of i�6si3a�i Resolution No. 2005- the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Page 9 Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2014, and thereafter, are subj ect to redemption and prepayment at the option of the Issuer on February 1, 2013, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subj ect to prepayment. If redemption is in part, the selection of the amounts and maturities of the Bonds to be prepaid shall be at the discretion of the Issuer; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the Bonds at least thirty days prior to the date fixed for redemption. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obli a� tion. This Bond is one of an issue in the total principal amount of $1,835,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, issued pursuant to and in full conformity with the Home Rule Charter of the City and Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on May 23, 2005 (the "Resolution"), for the purpose of providing money to finance various improvement proj ects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Improvement Bonds, Series 2005A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchan�e; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully i�6si3a�i 9 Resolution No. 2005-_ Page 10 registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subj ect to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Re�istered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obli�ation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Home Rule Charter of the City to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, statutory or Home Rule Charter limitation of indebtedness. i�6si3a�i 10 Resolution No. 2005- Page 11 IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its City Manager, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Bond Trust Services Corporation Roseville, Minnesota Bond Registrar I� Authorized Signature Registrable by: BOND TRUST SERVICES CORPORATION Payable at: BOND TRUST SERVICES CORPORATION CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Manager i�6si3a�i 1 1 Resolution No. 2005-_ Page 12 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as j oint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) (Minor) under the Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. AS SIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, 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 or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) i�6si3a�i 12 Resolution No. 2005- PREPAYMENT SCHEDULE This Bond has been prepaid in part on the date(s) and in the amount(s) as follows: AUTHORIZED SIGNATURE DATE AMOUNT OF HOLDER i�6si3a�i 13 Page 13 Resolution No. 2005-_ Page 14 8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser, typewritten) and shall be executed on behalf of the City by the signatures of its Mayor and City Manager and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the request of the Purchaser, photocopied) facsimile; and provided further that both of such signatures may be printed (or, at the request of the Purchaser, photocopied) facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Such temporary bonds may be executed with photocopied facsimile signatures of the Mayor and City Manager. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and canceled. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is June 15, 2005. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Re�istration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subj ect to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever i�6si3a�i 14 Resolution No. 2005- Page 15 any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subj ect to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director-Treasurer is hereby authorized to negotiate and execute the terms of said agreement. 11. Ri�hts Upon Transfer or Exchan�e. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Re�istered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subj ect to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Deliverv; A�lication of Proceeds. The Bonds when so prepared and executed shall be delivered by the City Manager to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. i�6si3a�i 15 Resolution No. 2005-_ Page 16 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Improvement Bonds, Series 2005A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the "Construction Account" and "Debt Service Account": (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon and less any amount paid for the Bonds in excess of the minimum bid and less capitalized interest in the amount of $ (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before February 1, 2006), plus any special assessments levied with respect to the Improvements and collected prior to completion of the Improvements and payment of the costs thereof. From the Construction Account there shall be paid all costs and expenses of making the Improvements listed in paragraph 16, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in the account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the receipt of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Construction Account, the balance (other than any special assessments) may be transferred by the Council to the Debt Service Account or the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, and provided further that any special assessments credited to the Construction Account shall only be applied towards payment of the costs of the Improvements upon adoption of a resolution by the City Council determining that the application of the special assessments for such purpose will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. (b) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) all collections of special assessments herein covenanted to be levied with respect to the Improvements and either initially credited to the Construction Account and not already spent a permitted above and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (ii) all accrued interest received upon delivery of the Bonds; (iii) any amount paid for the Bonds in excess of the minimum bid; (iv) capitalized interest in the amount of $ (together with interest earnings thereon and subj ect to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before February 1, 2006; (v) any collection of all taxes herein or hereafter levied for the payment of the Bonds and interest thereon; (vi) all funds remaining in the Construction Account after completion of the Improvements and payment of the costs thereof; (vii) all investment earnings on funds held in the Debt Service Account; and (viii) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation i�6si3a�i 16 Resolution No. 2005-_ Page 17 bonds of the City hereafter issued by the City and made payable from the account as provided by law. No portion of the proceeds of the Bonds shall 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 (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) 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 Construction Account or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall 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. Money in the Fund shall 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"). 16. Assessments. It is hereby determined that no less than twenty percent of the cost to the City of each Improvement financed by Bond proceeds within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefitted by any of the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts. The City hereby further covenants and agrees that it will do and perform as soon as they may be done all acts and things necessary for the final and valid levy of such special assessments, and in the event that any special assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken by the City or the City Council or any of the City officers or employees, either in the making of the special assessment or in the performance of any condition precedent thereto, the City and the City Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessment a valid and binding lien upon such property. It is hereby determined that the special assessment shall be payable in equal, consecutive, annual installments, with general taxes for the years shown below and with interest on the declining balance of all special assessments at a rate per annum not greater than the maximum permitted by law and not less than the interest rate per annum shown opposite their collection years specified below: Improvement Desi�narions Amounts Lew Years Collection Years Rate See attached tax levy and special assessment schedule(s) At the time the special assessments are in fact levied the City Council shall, based on the then- current estimated collections of the special assessments, make any adjustments in any ad valorem i�6si3a�i 17 Resolution No. 2005- Page 18 taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 17. Tax Levy; Covera�e Test. To provide moneys for payment of the principal and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levv Year of Tax Collection Amount See attached tax levy and special assessment schedule(s) The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the e�tent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 18. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subj ect to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 19. Compliance With Reimbursement Bond Re�ulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: i�6si3a�i 18 Resolution No. 2005-_ Page 19 (a) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing (ii) gives a general and functional description of the property, proj ect or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Proj ect, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which the Proj ect to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 20. General Obli�ation Pled�e. 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 shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 21. Certificate of Re�istration. The City Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, Minnesota, together with such other information as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy required by law has been made. i�6si3a�i 19 Resolution No. 2005- Page 20 22. Continuin� Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for the State of Minnesota, in each case as designated by the Commission in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of the occurrence of certain material events with respect to the Bonds in accordance with the Undertaking. (c) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and Finance Director-Treasurer of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 23. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 24. Ne�ative Covenant as to Use of Bond Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, 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. i�6si3a�i 20 Resolution No. 2005-_ Page 21 25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small issuer exception amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that: (a) the Bonds are issued by a governmental unit with general taxing powers; (b) no Bond is a private activity bond; (c) ninety-five percent or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); and (d) the aggregate face amount of all tax exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one issuer with 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(�(4)(C) of the Code. 26. Desi�nation of Qualified Tax-Exempt Obli�ations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) 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 entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2005 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2005 have been designated for purposes of Section 265(b)(3) of the Code. i�6si3a�i 2 1 Resolution No. 2005- Page 22 The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 27. Payment of Issuance Expenses. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by Ehlers. 28. Official Statement. The Official Statement relating to the Bonds prepared and distributed by Ehlers is hereby approved and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. 29. Severabilitv. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 30. Headin�s. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD DAY OF MAY 2005. Scott J. Lund, Mayor Attest: Debra A. Skogen, City Clerk i�6si3a�i 22 Resolution No. 2005- STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY Page 23 I, the undersigned, being the duly qualified and acting City Clerk of the City of Fridley, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of the City, duly called and held on the date therein indicated, insofar as such minutes relate to considering proposals and awarding the sale of $1,835,000 General Obligation Improvement Bonds, Series 2005A. WITNESS my hand on May , 2005. City Clerk i�6si3a�i 23 Resolution No. 2005- EXHIBIT A Proposals [to be supplied by Ehlers] i�6si3a�i A-1 Page 1 Resolution No. 2005- STATE OF MINNESOTA COUNTY OF ANOKA Page 2 COUNTY AUDITOR' S CERTIFICATE AS TO TAX LEVY AND REGISTRATION I, the undersigned, representative of the Office of Anoka County Property Records and Taxation, Minnesota, DO HEREBY CERTIFY that on the date hereof, there was filed in my office a certified copy of a resolution adopted on May 23, 2005 by the City Council of the City of Fridley, Minnesota, authorizing the issuance of $1,835,000 General Obligation Improvement Bonds, Series 2005A (the "Bonds"), and levying a tax for the payment thereof, together with full information regarding the Bonds for which the tax was levied; and the Bonds have been entered in my Bond Register and the tax levy required by law has been made. WIT`NESS my hand and the seal of the Office of Anoka County Property Records and Taxation on , 2004. Office of Anoka County Property Records and Taxation (SEAL) i�6si3a�i A-2 � � CffY OF FRIQLEY i'�: FROM.• AGENDA ITEM COUNCIL MEETING OF MAY 23, 2005 WILLIAM W. BURNS, CITYMANAGER RICHARD D. PRIBYL, FINANCE DIRECTOR SUBJECT.• RESOLUTIONPROVIDING FOR THE ISSUANCE OF THE CITY'S $4, 680, 000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2005B DATE: May 19, 2005 Attached is the resolution provided to us by Mary Ippel from the firm of Briggs & Morgan. The resolution is for the sale of $4,680,000 in General Obligation Tax Increment Refunding Bonds, Series 2005B. As you will recall, these bonds are being issued to provide for a current refunding of the General Obligation Tax Increment Series 1997A Bonds. By issuing this debt the City will save approximately $100,000 over the life of the issue. A large part of the original debt issue was used to provide funding for the acquisition of the 100 Twin property, which subsequently was purchased by Medtronic for their World Headquarters. As part of the process of issuing these bonds, the City of Fridley is required to undergo a fairly rigorous financial review process conducted by Moody's Investor Service who acts as our bond rating agency. As of the writing of this memo, we are awaiting the decision as to whether we have again been assigned a Aal bond rating, which is the highest rating a City of our size is capable of attaining. It seemed very evident during this review that Moody's was very concerned about the General Fund performance over the past couple of years. They seemed to feel that the balancing of the 2005 General Fund Budget should go a long way towards overcoming the State of Minnesota's budget balancing on the backs of Minnesota cities by removing our LGA. At this point, we feel confident that Moody's will reaffirm the Aal rating for the City of Fridley. Since the bids are not due until Monday, May 23rd, the information from the bidders will not be available until the evening of the Council Meeting. A representative from Ehlers will be present should there be any questions related to the process or the bid itself. RDP/me Attachment i�6si4a�i Resolution No. 2005-_ Page 2 RESOLUTION NO. 2005- RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $4,680,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2005B AND PLEDGING FOR THE SECURITY THEREOF TAX 1NCREMENTS A. WHEREAS, the Housing and Redevelopment Authority of the City of Fridley, Minnesota (the "Authority"), has heretofore created Redevelopment Project No. 1(the "Project Area"), pursuant to the provisions of Minnesota Statutes, Sections 469.001 through 469.047, and has approved a Redevelopment Plan (the "Redevelopment Plan") with respect to the Proj ect Area; and B. WHEREAS, the Authority has also heretofore created Tax Increment Financing District No. 6 within the Proj ect Area (the "Tax Increment District") under the provisions of Minnesota Statutes, Sections 469.174 through 469.1799 and has approved a tax increment financing plan and amendments (the "Plan") with respect to the Tax Increment District; and C. WHEREAS, tax increments derived from the Tax Increment District are referred to herein as the "Tax Increments"; and D. WHEREAS, the City has heretofore issued its General Obligation Tax Increment Refunding Bonds, Series 1997A, dated June 1, 1997 (the "Prior Bonds"), pursuant to a resolution of the City Council adopted on Apri128, 1997 (the "Prior Resolution"); and E. WHEREAS, $4,625,000 in principal amount of the Prior Bonds which mature on August 1, 2006, and thereafter are subj ect to redemption and prepayment at the option of the City on August 1, 2005 and on any date thereafter at a price of par plus accrued interest, as provided in Prior Resolution; and F. WHEREAS, the City Council deems it desirable and in the best interests of the City to call for redemption and prepayment all of the Prior Bonds which mature on August 1, 2006, and thereafter, on August 1, 2005 in accordance with the Prior Resolution in order to reduce the debt service costs to the City; and G. WHEREAS, the City Council hereby determines and declares that it is necessary and expedient to issue $4,680,000 General Obligation Tax Increment Refunding Bonds, Series 2005B (the "Bonds" or individually, a"Bond"), pursuant to Minnesota Statutes, Chapter 475, to provide funds to pay on August 1, 2005, all of the Prior Bonds (the "Refunded Bonds"), which then remain outstanding (the "Refunding"); and H. WHEREAS, the City has retained Ehlers and Associates, Inc, in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Ehlers; and i�6si4a�i 2 Resolution No. 2005-_ Page 3 I. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Manager, or designee, at the offices of Ehlers, at 11:00 AM. this same day pursuant to the Terms of Proposal established for the Bonds; and J. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Fridley, Minnesota, as follows: 1. Acceptance of Offer. The proposal of (the "Purchaser"), to purchase the Bonds, in accordance with the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ , plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to the Purchaser. The City Finance Director-Treasurer is directed to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders any good faith checks and drafts. 2. Bond Terms. (a) Title; Ori�inal Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be titled "General Obligation Tax Increment Refunding Bonds, Series 2005B", shall be dated June 15, 2005, as the date of original issue and shall be issued forthwith on or after such date in fully registered form. The Bonds shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on February 1 in the years and amounts as follows: Year Amount 2006 2007 2008 2009 All dates are inclusive. As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Onl�. s�. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its i�6si4a�i Resolution No. 2005-_ Page 4 successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder and the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. i�6si4a�i 4 Resolution No. 2005-_ Page 5 (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book- entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (c) Termination of Book-Entrv Onlv Svstem. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. i�6si4a�i Resolution No. 2005-_ Page 6 (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10. (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose. The Bonds (together with other available funds, if any, appropriated in paragraph 15) shall provide funds to finance the Refunding. It is hereby found, determined and declared that the Refunding is pursuant to Minnesota Statutes, Section 475.67 and shall result in a reduction of debt service cost to the City. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2006, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturit.� Interest Rate 2006 % 2007 2008 2009 5. No Redemption. The Bonds shall not be subject to redemption and prepayment prior to their stated maturity dates. 6. Bond Re i� strar. Bond Trust Services Corporation, in Roseville, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or i�6si42�i 6 Resolution No. 2005-_ Page 7 record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: i�6si4a�i 7 Resolution No. 2005-_ Page 8 UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF FRIDLEY R- $ GENERAL OBLIGATION TAX 1NCREMENT REFUNDING BOND, SERIES 2005B Interest Rate Maturit.� Date of Ori�inal Issue CUSIP February 1, June 15, 2005 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Fridley, Anoka County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, without option of prepayment, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2006, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of Bond Trust Services Corporation, in Roseville, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. i�6si4a�i Resolution No. 2005-_ Page 9 Issuance; Purpose; General Obli�ation. This Bond is one of an issue in the total principal amount of $4,680,000, all of like date of original issue and tenor, except as to number, maturity, interest rate and denomination, issued pursuant to and in full conformity with the Home Rule Charter of the City and Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on May 23, 2005 (the "Resolution"), for the purpose of providing money to redeem on August 1, 2005, all of the Issuer's outstanding General Obligation Tax Increment Refunding Bonds, Series 1997A, dated June 1, 1997. This Bond is payable out of the General Obligation Tax Increment Refunding Bonds, Series 2005B Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchan�e; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subj ect to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Re�istered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Home Rule Chapter of i�6si4a�i 9 Resolution No. 2005-_ Page 10 the City to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional, statutory or Home Rule Charter limitation of indebtedness. IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its City Manager, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: Registrable by: BOND TRUST SERVICES CORPORATION Payable at: BOND TRUST SERVICES BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bonds is one of the Bonds described in the Resolution mentioned within. BOND TRUST SERVICES CORPORATION Roseville, Minnesota Bond Registrar : Authorized Signature CORPORATION CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Manager i�6si4a�i 1 0 Resolution No. 2005-_ Page 11 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as j oint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) (Minor) under the Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. AS SIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, 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 or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all j oint owners if the Bond is held by j oint account i�6si4a�i 1 1 Resolution No. 2005-_ Page 12 8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser, typewritten) and shall be executed on behalf of the City by the signatures of its Mayor and City Manager and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the request of the Purchaser, photocopied) facsimile; and provided further that both of such signatures may be printed (or, at the request of the Purchaser, photocopied) facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Such temporary bonds may be executed with photocopied facsimile signatures of the Mayor and City Manager. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is June 15, 2005. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Re�istration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subj ect to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever i�6si4a�i 1 2 Resolution No. 2005-_ Page 13 any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subj ect to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director- Treasurer is hereby authorized to negotiate and execute the terms of said agreement. 11. Ri�hts Upon Transfer or Exchan�e. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Re�istered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subj ect to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. i�6si4a�i 13 Resolution No. 2005-_ Page 14 14. Delivery; A�plication of Proceeds. The Bonds when so prepared and executed shall be delivered by the City Manager to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Tax Increment Refunding Bonds, Series 2005B Fund" (the "Fund") to be administered and maintained by the Finance Director-Treausrer as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained and created in the fund the "Payment Account" and a"Debt Service Account": (a) Payment Account. The proceeds of the Bonds, less any accrued interest, shall be deposited in the Payment Account. On or prior to August 1, 2005, the Clerk shall transfer $ of the proceeds of the Bonds from the Payment Account to the paying agent for the Refunded Bonds, which sum is sufficient, together with other funds on deposit in debt service account established for the Refunded Bonds, to pay the principal and interest due on the Refunded Bonds on August 1, 2005, including the principal of the Refunded Bonds called for redemption on that date. The remainder of the monies in the Payment Account shall be used to pay the costs of issuance of the Bonds. Any monies remaining in the Payment Account after payment of all costs of issuance and payment of the Refunded Bonds shall be transferred to the Debt Service Account. (b) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (i) Tax Increments in an amount which, together with other revenues herein pledged to the payment thereof, are sufficient to pay the principal and interest to become due on the Bonds; (ii) all collections of ad valorem taxes hereafter levied; (iii) any balance remaining after August 1, 2005, in the Prior Bonds Debt Service Account created by the Prior Resolution; (iv) all investment earnings on funds in the Debt Service Account; (v) funds remaining in the Payment Account after all costs of issuing the Bonds have been paid; and (vi) any and all other moneys which are properly available and are appropriated by the governing body of the Issuer to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. No portion of the proceeds of the Bonds shall 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 (a) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (b) 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 Fund (or any other City account which will be used to pay principal or interest to become due on the Bonds) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage i�6si4a�i 1 4 Resolution No. 2005-_ Page 15 regulations. Money in the Fund shall 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"). 16. Covenants Relatin� to the Bonds. (a) Tax Increments. The City hereby pledges and appropriates the Tax Increments to the Debt Service Account, which pledge and appropriation shall continue until the Bonds and any additional bonds payable from the Debt Service Account are paid or discharged. (b) Covera�e Test. The Tax Increments are such that if collected in full they, together with estimated collections of other revenues herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds, consequently no taxes are levied at the present time. (c) Future Tax Levies. On or before October 10 of each year, the Finance Director- Treasurer shall certify to the County Auditor of Anoka County the amount of Tax Increments and any other funds appropriated to and then held in the Debt Service Account and the estimated collections of Tax Increments to be received in the next succeeding year. In the event that it is anticipated that the aggregate of said sums will not be sufficient to pay the principal and interest on the Bonds to become due in the first calendar year thereafter and the first six months of the succeeding calendar year, the City Council shall pass a resolution requesting the County Auditor of Anoka County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Debt Service Account and said estimated collections of Tax Increments to pay the principal and interest on the Bonds to become due during said period. (d) Reservation of Ri�hts. Notwithstanding any provisions herein to the contrary, the City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 17. Pled�e A�reement. The Mayor and City Manager are hereby authorized to execute the Tax Increment Pledge Agreement in substantially the form presented to the City Council, which Tax Increment Pledge Agreement pledges Tax Increments derived from the Tax Increment District to the payment of the Bonds. 18. Concurrin� Resolution of the Authority. The Authority will adopt a resolution authorizing execution of the Pledge Agreement. The City shall take such action as it determines is necessary to assure that the covenants of the Authority in the Pledge Agreement are fully and promptly performed; provided that in the exercise of any rights with respect thereto, the City shall be subj ect to the same standards and to the same rights applicable to the Authority under the covenants as if the City were the Authority. 19. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with i�6si4a�i 1 5 Resolution No. 2005-_ Page 16 respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity. 20. General Obli�ation Pled�e. 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 shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 21. Redemption of Refunded Bonds. The Refunded Bonds shall be redeemed and prepaid in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached hereto as Exhibit B, which terms and conditions are hereby approved and incorporated herein by reference. 22. Prior Bonds; Security. Until retirement of the Prior Bonds, all provisions theretofore made for the security thereof shall be observed by the City and all of its officers and agents. 23. Certificate of Re�istration. The City Clerk is hereby directed to file a certified copy of this resolution with the Director of Anoka County Property Records and Taxation's Office, together with such other information as the Director shall require, and to obtain the Director of Anoka County Property Records and Taxation's certificate that the Bonds have been entered in the Director of Anoka County Property Records and Taxation's Bond Register. 24. Continuin� Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to each nationally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, for the State of Minnesota, in each case as designated by the Commission in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. i�6si4a�i 1 6 Resolution No. 2005-_ Page 17 (b) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of the occurrence of certain material events with respect to the Bonds in accordance with the Undertaking. (c) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and Finance Director-Treasurer of the City, or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 25. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 26. Ne�ative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Proj ect, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, 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. 27. Tax-Exempt Status of the Bonds; Rebate; Elections. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the Bonds, and (c) the rebate of excess investment earnings to the United States. The City expects to satisfy the six month expenditure exemption from gross proceeds of the Bonds as provided in Section 1.148-7(c) of the Regulations. The Mayor and City Manager, are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. i�6si4a�i 17 Resolution No. 2005-_ Page 18 28. Desi�nation of Qualified Tax-Exempt Obli�ations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) 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 entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2005 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2005 have been designated for purposes of Section 265(b)(3) of the Code. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 29. Severabilitv. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 30. Headin�s. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD DAY OF MAY 2005. Scott J. Lund, Mayor Attest: Debra A. Skogen, City Clerk i�6si4a�i 1 8 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY I, the undersigned, being the duly qualified and acting City Clerk of the City of Fridley, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding the sale of $ General Obligation Tax Increment Refunding Bonds, Series 2005B. WITNESS my hand on May , 2005. City Clerk i�6si42�i EXHIBIT A Proposals [to be supplied by Ehlers] i�6si42�i Resolution No. 2005-_ Page 1 EXHIBIT B NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION TAX 1NCREMENT REFUNDING BONDS, SERIES 1997A CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Fridley, Anoka County, Minnesota, there have been called for redemption and prepayment on August 1, 2005 those outstanding bonds of the City designated as General Obligation Tax Increment Refunding Bonds, Series 1997A, dated June 1, 1997 having stated maturity dates in the following years, totaling $4,625,000 in principal amount and having CUSII' numbers listed below: Year CUSIP Number* 2006 2007 2008 2009 The bonds are being called at a price of par plus accrued interest to August 1, 2005, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment, at U.S. Bank National Association (formerly known as First Trust National Association), St. Paul, Minnesota, on or before August 1, 2005. Dated: May 23, 2005 BY ORDER OF THE CITY COLJNCIL /s/ Debra Sko�en, Cit Clerk * The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in the notice. They are included solely for the convenience of the holders. i�6si4a�i A-1 Resolution No. 2005-_ STATE OF MINNESOTA COUNTY OF ANOKA Page 2 COUNTY AUDITOR' S CERTIFICATE AS TO REGISTRATION AND FILING OF A TAX 1NCREMENT PLEDGE AGREEMENT I, the undersigned, representative of the Office of Anoka County Property Records and Taxation, Minnesota, DO HEREBY CERTIFY that on the date hereof, there was filed in my office a certified copy of a resolution adopted on May 23, 2005 by the City Council of the City of Fridley, Minnesota, authorizing the issuance of $4,680,000 General Obligation Tax Increment Refunding Bonds, Series 2005A (the "Bonds"), together with full information regarding the Bonds and the Bonds have been entered in my Bond Register; and that the Tax Increment Pledge Agreement, dated , 2005, between said City and the Housing and Redevelopment Authority of the City of Fridley, Minnesota, has been filed in my office. WIT`NESS my hand and the seal of the Office of Anoka County Property Records and Taxation on (SEAL) 2004. Office of Anoka County Property Records and Taxation i�6si4a�i A-2 � � CffY OF FRIDLEI' To: From: Date: Re: AGENDA ITEM CITY COUNCIL MEETING OF MAY 23, 2005 William W. Burns, City Manager Richard D. Pribyl, Finance Director Deb Skogen, City Clerk May 12, 2005 Spring Lake Park Lions Club Charitable Gambling Premise Permit Renewal — Sandees, 6490 Central Avenue NE Section 30 of the Fridley City Code allows Lawful Gambling by a licensed organization. The Spring Lake Park Lions Club is currently conducting charitable gambling at Sandees Restaurant, 6490 Central Avenue NE. Their Charitable Gambling Premise Permit expires on July 31, 2005. The renewal application requires a resolution from the City Council approving the renewal. If approved, the premise permit would become effective August 1, 2005 and expire July 31, 2007. Please find a resolution for the renewal premise permit. Staff recommends approval of the premise permit renewal by adoption of the attached resolution. RESOLUTION NO. 2005- RESOLUTION IN SUPPORT OF AN APPLICATION FOR A MINNESOTA LAWFUL GAMBLING PREMISE PERMIT FOR SPRING LAKE PARK LIONS CLUB (SANDEES) WHEREAS, the City of Fridley has been served with a copy of an Application for a Minnesota Lawful Gambling Premise Permit for the Spring Lake Park Lions Club; and WHEREAS, the location of the Premise Permit is for Sandees Restaurant, 6490 Central Avenue Northeast and will be effective from August 1, 2005 to July 31, 2007; and WHEREAS, the City of Fridley has found no reason to restrict the location for the charitable gambling operation. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley approves the Minnesota Lawful Gambling Premise Permit Application for the Spring Lake Park Lions Club for Sandees located at 6490 Central Avenue Northeast. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF , 2005. SCOTT J. LUND - MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK � � �ffY �F FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF MAY 23, 2005 Date: May 20, 2005 To From Subj ect: William W. Burns, City Manager Deborah K. Dahl, Human Resources Director LAWRENCE CHUBB SETTLEMENT Please note the attached resolution which requires Council action to comply with the Stipulation for Settlement prepared by Attorney Michael Koshmrl of Heacox, Hartman, Koshmrl, Cosgriff & Johnson, who has been representing the City of Fridley in a workers' compensation claim involving former employee Lawrence Chubb. On April 28, 2005, our legal counsel, Attorney Michael Koshmrl, and Human Resources Director, Deborah Dahl, met with the City Council to discuss this matter and authorized a settlement agreement to be reached. The Stipulation for Settlement has been agreed upon, signed and was submitted to the Office of Administrative Hearings on May 13, 2005. The Award on Stipulation will be as follows: 1) A lump sum payment in the amount of $43,800 will be awarded to Mr. Chubb, which will be full and final payment for any claims related to workers' compensation benefits arising out of his 1985 injury, with the exception of future reasonable and necessary medical treatment which will remain an open liability. 2) A lump sum payment in the amount of $11,200 will be awarded to Attorney William Moore, for attorney's fees and any taxable costs and disbursements not yet itemized, which will be paid upon receipt of proof of payment. Once the Award on Stipulation has been issued, the City has just 14 days to issue payment, and therefore, staff requests Council's approval of this resolution to comply with the judge's award. Thank you. dkd Attachment RESOLUTION NO. 2005- RESOLUTION ACCEPTING STIPULATION FOR OUT OF COURT SETTLEMENT WITH LAWRENCE A. CHUBB WHEREAS, certain litigation was brought against the City of Fridley by Lawrence A. Chubb due to a work related injury dated October 8, 1985; and WHEREAS, on or about the date of injury, the City of Fridley was insured for its Minnesota workers' compensation liability by Home Insurance Company, which has since filed bankruptcy and is in liquidation, therefore requiring the City of Fridley to be self-insured for its Minnesota workers' compensation liability; and WHEREAS, Mr. Chubb and the City of Fridley desire to compromise and settle their differences and waive their rights to a formal hearing; and WHEREAS, the City's failure to approve this settlement would expose the City to further financial risks exceeding the costs to the City of this settlement; and WHEREAS, the City Council authorized the City's legal counsel to enter into a settlement on April 28, 2005, and the City's legal counsel has strongly recommended the settlement is fair and reasonable, and that it would be most prudent for the City to approve this settlement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley, Anoka County, Minnesota, that the City of Fridley accept the Stipulation of Settlement dated May 13, 2005, in the sum of $55,000, in full, final and complete settlement of any and all workers' compensation claims, past, present or future, direct or consequential, arising out of the employee's work-related injury of October 8, 1985, with the exception of future medical expenses which are deemed reasonable and necessary as stipulated in the Settlement Agreement. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD DAY OF MAY 2005. SCOTT J. LUND, MAYOR ATTEST: DEBRA A. SKOGEN, CITY CLERK � AGENDA ITEM � COUNCIL MEETING OF MAY 23, 2005 �ffY �F FRIDLEY CLAIMS 121591 - 121736 � � CJTi' OF FRIDLEi` AGENDA ITEM CITY COUNCIL MEETING OF MAY 23, 2005 LICENSES LIGENSE RENEWALS Tvpe of License � FOOD ESTABLISHMENT Cozy Cafe Mosad Aly 6215 University Av Fridley, MN 55432 Wong's Gourmet 1254 E Moore Lake Dr Fridley, MN 55432 Mojo's Pizza 6522 University Av Fridley, MN 55432 Quizno's Subs 7610 University Av NE Fridley, MN 55432 Chanticlear Pizza 1262 E Moore Lake Dr. Fridley, MN 55432 Bon Appetit Medtronic 710 Medtronic Parkway NE Fridley, MN 55432 Taste of Thailand 7890 University Av NE Fridley, MN 55432 TOBACCO SALES A & A Tobacco 6548 University Av NE Fridley, MN 55432 Tian Chen John Bergman Hiep Pho Keith Mueller Cathy Hoac Lamphrey Phetphrachouh Asad Khalil Approved Bv Public Safety Director Community Development Director Fire Inspector << << << << << << << << << << << << � << << << � REFUSE HAULERS Waste Management of MN Ervin Hofstedt Public Safety Director 10050 Naples St NE Community Development Dir. Blaine, MN 55449 LICENSES (CONTINUED) LIGENSE RENEWALS Tvpe of License � MOTOR VEHICLE REPAIR Beech Street Collision Sayed Asad 7869 Beech St N E Fridley, MN 55432 TREE REMOVAL Central Minnesota Tree Svc James Savre 144 Satellite Ln. Fridley, MN 55432 NEW LIGENSES TEMPORARY INTOXICATING LIQUOR Totino Grace High School Brother Milton Barker 1350 Gardena Av. NE Fridley, MN 55432 FOOD ESTABLISHMENT Wholesale Dollar Inc. 6540 E River Rd. NE Fridley, MN 55432 TREE REMOVAL Premier Tree Service 8588 260th Av N E Pierz, MN 56364 Top Notch Tree Care 11520 Hemlock Lane Dayton, MN 55369 `49er DAYS LAWFUL GAMBLING Tamarisk Resources, Inc. 1282 Mississippi St. NE Fridley, MN 55432 STREET VENDING Matt Milner Sales 1298 52nd AV NE Fridley, MN 55432 Nasir AI-Ali Dennis Herold David Nordgaard Mary Miurhead Gerald Johnson Approved Bv Public Safety Director Community Development Dir. Fire Inspector Public Works Director Public Safety Director Public Safety Director Community Development Dir. Fire Inspector Public Works Director Public Works Director Public Safety Director Public Safety Director Parks Director 3.2% MALT LIQUOR Lions Club of Fridley John Flora Public Safety Director PO Box 32815 Fridley, MN 55432 � AGENDA ITEM � CITY COUNCIL MEETING OF �" �F May 23, 2005 FRIDLEY Contractor T e A licant A roved B Above All Contractor-Commercial Jerry Enos Ron Julkowski, CBO Anderson Heating & Air Cond Heating Patty Nelson Ron Julkowski, CBO CMR Electric Electrical Ron Jones State of MN Com lete Electric LLC Electrical Ga Krautbauer State of MN Custom Plumbing Plumbing Craig Martinson State of MN DA Distribution dba Condor Mechanical Glenda Starkweather Ron Julkowski, CBO Fireplace & Stone Daves Heatin and Air Gas Dave Roberts Ron Julkowski, CBO DJ's NW Electric Electrical David Anderson State of MN Drake Mechanical Plumbing Brian Johnson State of MN Drake Russell Construction Contractor-Commercial Russ Drake State of MN DuAll Services Inc Contractor-Residential Ga Dooner State of MN Electro Neon & Desi n Inc Si n Erector Michael Ziertman Ron Julkowski, CBO Elk River Refrigeration Htg A/C Heating Matt Sullivan Ron Julkowski, CBO Flannery Construction Contractor-Commercial Ken Hinz Ron Julkowski, CBO Gateway Mechanical Inc Plumbing Gene Beijeic State of MN GB Technolo ies Electrical David L Jor ensen State of MN Genesis Heatin and Air Gas/Heatin Mike Lutz Ron Julkowski, CBO Golden Valley Heating & Air Gas/Heating Scott Follese Ron Julkowski, CBO Gopher Electric Contractors Inc Electrical Cheryl Doran State of MN Graphic House Inc Sign Erector Christine Bruski Ron Julkowski, CBO Handles Sidne Contractor-Residential Sid Handlos State of MN Hedtke Todd Sidin S ecialists Contractor-Residential Todd Hedtke State of MN Hawton Construction Inc Contractor-Residential Michael Hawton State of MN Hoffman Refrigeration & Heating Heating Harvey Halverson Ron Julkowski, CBO Image Builders Roofing Bruce Napier State of MN JD Services Contractor-Residential Jacob Sells State of MN Je 's Plumbin , Inc Plumbin Theodore Hurkman State of MN Kato Roofing Inc Roofing Mark Ballman Ron Julkowski, CBO K Designers Contractor-Residential Brad Houck State of MN Kraus-Anderson Contractor-Commercial Jerold Dreis Ron Julkowski, CBO Lance Co in Saw Plumbin Lawrence Co in State of MN Lawrence Sign Sign Erector Robert Walker Ron Julkowski, CBO Levin Construction Contractor-Residential Joel Levin State of MN Lighthouse Electric Electrical Roy Fingerholz State of MN Local Roofm Co Inc Roofm Jeff Mattice Ron Julkowski, CBO Maertens Brenn Construction Contractor-Commercial Pat Zehowski Ron Julkowski, CBO Maintenance Free MN Inc Contractor-Residential Dan Engebretson State of MN Macallan Construction Inc Contractor-Residential Adam Moore State of MN Maki Exteriors Inc Contractor-Residential Michael Maki State of MN Martens Electric Electrical Aric Martens State of MN Master Electric Co Inc Electrical Jeff Loffs aarden State of MN Master Gas Fitters Gas Dan Perzichilli Ron Julkowski, CBO Contractor TVpe Applicant Approved By Meyers&Jackson Roofing Co Inc Roofing Ken Meyers Ron Julkowski, CBO MJ Construction Contractor-Residential Moritz Wald State of MN Nadeau Excavatin Inc Plumbin Mike Nadeau State of MN Northwest Exteriors Inc Contractor-Residential Scott DuPre State of MN Oakland Plumbing Plumbing David Hechsec State of MN Pence Electrical Contracting Inc Electrical Scott Pence State of MN Pierce Refri eration Gas/Heatin John Becker Ron Julkowski, CBO Princeton Electric Inc Electrical Richard Palmer State of MN Professional Touch Painting Contractor-Residential Ronald Picotte State of MN PRS Mechanical Inc Plumbing Reg Crawford State of MN Rasmussen Construction Contractor-Residential Gary Rasmussen State of MN Ra co Construction Inc Contractor-Residential Stac Me ers State of MN RNR Home Improvement LLC Contractor-Residential Regina Ramos State of MN Roof Design Partners Roofing Steve Lutz State of MN Rouse Mechanical Gas/Heating Ben Skoglund Ron Julkowski, CBO Royalton Heating and Cooling Heating Tom Stewart Ron Julkowski, CBO R an Com anies US Inc Contractor-Commercial Ma Wawro Ron Julkowski, CBO Schulties Plumbing Inc Plumbing Doug Jones State of MN Scott Panning Construction Contractor-Residential Scott Panning State of MN Sela Roofin & Remodelin Contractor-Residential Gu Farmer State of MN Skilcraft Industries Inc Contractor-Residential Don Ballin er State of MN Spectrum Sign Systems Inc Sign Erector Richard Ferraro Ron Julkowski, CBO Standard Heating and Air Heating David Melnick Ron Julkowski, CBO Superior MHS Contractor-Residential Jack Narow State of MN Thermex Co oration Gas/Heatin Curt Brekke Ron Julkowski, CBO To Gun Exteriors Inc Contractor-Residential B an Shiltz State of MN United Properties LLC Contractor-Commercial Bruce Palmer Ron Julkowski, CBO USVICO INC Contractor-Residential Blake Bjorlin State of MN Valle -Rich Co Plumbin Tom Denison State of MN Versant Plumbin Plumbin Mike Walber State of MN Windo 2 Contractor-Residential Brad Allender State of MN � � CffY OF FRIaLEI' AGENDA ITEM CITY COUNCIL MEETING OF MAY 23, 2005 Date: May 20, 2005 To From Subj ect: William Burns, City Manager Scott Hickok, Community Development Director Julie Jones, Planning Coordinator ZOA # OS-01 & CP #OS-01 — 7110-90 University Ave. NE Background Jerome O'Brian Slawik of Har Mar Inc., owner of the property located at 7110-90 University Avenue NE, has requested to rezone their property from M-1, Light Industrial, to C-2, General Business. One of the properties located in this multi-tenant building is the Billiard Street Cafe. This business is interested in applying for a liquor license, but can only do so if the property is rezoned to C-2. Most of the other uses in this multi-tenant building would also best fit in the C-2, General Business zoning category. Since the City's Comprehensive Plan designates this property as Industrial, the petitioner has been required to also apply for a Comprehensive Plan Amendment. Staff finds no foreseen impacts to Metropolitan systems by the zoning change as the use on the property is not expected to significantly change from current lease arrangements. The Fridley City Council held a public hearing regarding the Comprehensive Plan Amendment on May 9, 2005. No action was taken at the meeting, as the Council was waiting to consider this item along with the first reading of the ordinance related to the rezoning of the 7110-90 University Avenue property. The Planning Commission approved both the rezoning and Comprehensive Plan Amendment requests at their Apri120, 2005 meeting. Staff concurs with the recommendations of the Planning Commission. Recommendation Staff recommends City Council approval of the attached resolution authorizing a minor Comprehensive Plan Amendment request to the Metropolitan Council. M-OS-37 RESOLUTION NO. -2005 RESOLUTION APPROVING A MINOR COMPREHENSIVE PLAN AMENDMENT, CP #OS-Ol, BY HAR-MAR INCORPORATED, FOR PROPERTY LOCATED ON LOTS 4-6, BLOCK 1, PACO INDUSTIAL PARK, EXCEPT THE NORTH 35 FEET OF LOT 4, GENERALLY LOCATED AT 7110-90 UNIVERSITY AVENUE NE, FRIDLEY WHEREAS, the Planning Commission held a public hearing on the minor Comprehensive Plan Amendment , CP #OS-01, on Apri120, 2005 and recommended approval; and WHEREAS, the City Council also conducted a public review of the Comprehensive Plan Amendment as proposed at their May 9, 2005 City Council meeting; and WHEREAS, the Metropolitan Land Planning Act (MN Statutes 473.851 - 473.872) requires that local government units prepare and submit minor amendments to the land use plans to the Metropolitan Council; and WHEREAS, a minor amendment is defined as changes to the future land use plan where the affected area is small or where the proposed future land use will result in minor changes in metropolitan service demand; changes in the urban service area involving less than 40 acres; change to plan goals and policies that do not change the overall thrust of the Comprehensive Plan; and WHEREAS, the City has determined this Comprehensive Plan change and associated rezoning of a single multi-tenant property to G2, General Business/Commercial to be a minor amendment. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley hereby approves the Comprehensive Plan Amendment, CP #OS-01. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23rd DAY OF MAY, 2005. SCOTT J. LUND - MAYOR ATTEST: DEBRA SKOGEN - CITY CLERK � � CffY OF FRIaLEI' Date To: AGENDA ITEM CITY COUNCIL MEETING MAY 23, 2005 May 19, 2005 William Burns, City Manager From: Scott Hickok, Community Development Director Julie Jones, Planning Coordinator Rachel Harris, Environmental Planner Subject: First Reading of Ordinance Amendment — Pertaining to Rezoning, ZOA #05- 01, 7110 — 90 University Avenue NE M-05-29 INTRODUCTION Jerome O'Brian Slawick, Har Mar Inc. and owner of the property located at 7110-90 University Avenue NE, has requested a rezoning of his property from M-1, Light Industrial, to C-2, General Business. State law requires that Council's mechanism for a rezoning approval is by approval of a rezoning ordinance. This ordinance authorizes a change in both the zoning map and the associated text. The Planning Commission held its public hearing on this item at its April 20, 2005, meeting. The Commission unanimously recommended approval. City Council held its public hearing for this item at their May 9, 2005, meeting. PLANNING STAFF RECOMMENDATION Staff recommends Council hold the first reading of the proposed zoning text amendment and further, staff recommends approval of the attached ordinance approving rezoning request ZOA #05-01, to allow a change in zoning from M-1, Light Industrial to C-2, General Business. ORDINANCE NO. AN ORDINANCE TO AMEND THE CITY CODE OF THE CITY OF FRIDLEY, MINNESOTA BY MAKING A CHANGE IN ZONING DISTRICTS The Council of the City of Fridley does ordain as follows: SECTION 1 SECTION 2. SECTION 3 Appendix D of the Fridley City Code is amended hereinafter as indicated. The tract or area within the County of Anoka and the City of Fridley and described as. Lots 4 through 6, including Block 1, Paco Industrial Park, exceptnorth 35 feet of said Lot 4, subject to easement of record. Is hereby designated to be in the Zoned District C-2 (General Business) That the Zoning Administrator is directed to change the official zoning map to show said tract or area to be rezoned from Zoned District M-1 (Light Industrial) to C-2 (General Business). PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS OF , 2005. SCOTT J. LUND — MAYOR ATTEST: DEBRA A. SKOGEN — CITY CLERK Public Hearing. May 9, 2005 First Reading: May 23, 2005 Second Reading: Publication: � � AGENDA ITEM ��F CITY COUNCIL MEETING OF MAY 23, 2005 FRIDLEY INFORMAL STATUS REPORTS