02/23/2004 - 4604OFFICIAL CITY COUNCIL AGENDA
CITY COUNCIL MEETING
FEBRUARY 23, 2004
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CffY OF
FRIDLEY
FRIDLEY CITY COUNCIL MEETING
OF FEBRUARY 23, 2004
7:30 p.m. - Citq Council Chambers
Attendance Sheet
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� CITY COUNCIL MEETING OF FEBRUARY 23, 2004
CR7 OF
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 activities because of race, color, creed, religion,
national origin, sex, disability, age, marital status, sexual orientation or status with regard to public
assistance. Upon request, accommodation will be provided to a11ow individuals with disabilities to
participate in any of Fridley's services, programs, and activities. 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.
PROCLAMATION:
School 8oard Recognition Week: February 23-27, 2004
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of January 26, 2004
OLD BUSINESS:
1. Second Reading of an Ordinance Amending
Fridley City Code, Chapter 3, Personnel,
Related to Severance Pay ................................................................................. 1- 2
2. Second Reading of an Ordinance Amending
Chapter 107, Fire Department, of the Fridley
City Code Pertaining to Department Officers ..................................................... 3- 4
FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 23, 2004 PAGE 2
APPROVAL OF PROPOSED CONSENT AGENDA:
OLD BUSINESS (CONTINUED):
3. Second Reading of an Ordinance Repealing
Chapter 108, Fire Prevention, and Adopting a
New Chapter 108, Fire Prevention, of the Fridley
City Code Providing for the Adoption of the
Minnesota State Fire Code ................................................................................ 5- 11
4. Second Reading of an Ordinance Establishing
a New Chapter of the Fridley Code Pertaining
to Clandestine Drug Lab and Chemical Dump
Sites....................................................................................................... 12 - 18
5. Second Reading of an Ordinance Establishing
A New Chapter of the Fridley City Code Setting
Service Charges for Emergency Response Calls .............................................. 19 - 23
NEW BUSINESS:
6. First Reading of an Ordinance Amending Fridley
City Code, Chapter 11, Fees ............................................................................. 24 — 38
7. First Reading of an Ordinance Amending Fridley
City Code, Chapter 206, Building Code, Adopting
the 2001 Minnesota State Building Code ........................................................... 39 - 60
8. Resolution Providing for the Issuance and Sale
of $1,790,000 General Obligation Water Revenue
Bonds, Series 2004A, and Pledging for the Security
Thereof New Revenues ..................................................................................... 61 - 78
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FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 23. 2004 PAGE 3
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED):
9. Resolution Providing for the Issuance and Sale
of $3,920,000 Taxable General Obligation Tax
Increment Refunding Bonds, Series 2004B,
Pledging for the Security Thereof Tax Increments
and Authorizing Execution of a Tax Increment
PledgeAgreement ............................................................................................. 79 - 96
10. Resolution Accepting Proposal on the Competitive
Negotiated Sale of $1,225,000 General Obligation
Refunding Bonds, Series 2004C; Pledging for
the Security Thereof Water and Storm Sewer
System Net Revenues and the Levy of Taxes ................................................... 97 - 117
11. Resolution Authorizing Changes In Appropriations
for the 2003 Budget for November Through
December, 2003 ................................................................................................ 118 - 119
12. Resolution Supporting the Improvements for the
Rice Creek West Regional Trail ......................................................................... 120 - 121
' 13. Appointment
....................................................................................................... 1
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14. Claims ....................................................................................................... 123
FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 23, 2004 PAGE 4
APPROVAL OF PROPOSED CONSENT AGENDA:
NEW BUSINESS (CONTINUED):
15. Licenses ....................................................................................................... 124 - 126
16. Estimates ....................................................................................................... 127
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ADOPTION OF AGENDA.
OPEN FORUM (VISITORS): Consideration of Items not on Agenda —15 Minutes
PUBLIC HEARING:
17. NPDES Annual Update ...................................................................................... 128
NEW BUSINESS:
18. Informal Status Reports ..................................................................................... 129
ADJOURN. •
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SC�OOL �O��D �COl�NI7701V hl��K
��tU��Y�� - � �, �004
WHEREAS, the mission of public schools is to meet the educational needs of all
children and empower them to become competent, productive contributors to a
democratic society and an ever-changing world; and
WHEREAS, local School Board members are committed to children and believe that
all children can be successfui learners and that the best education is tailored to the
individual needs of the child; and
WFIEREAS, local School Board members work with parents, education professionals
and other community members to create the educational vision we want for our
students; and
WHEREAS, local School Board members are responsible for ensuring the structure
that provides a solid foundation for our school system; and
WHEREAS, local School Board members assure the educafional program is
accountable to the community; and
WHEREAS, local School Board rnembers are strong advocates for public education
and responsible for communicating the needs of the school district to the public and
the public's expectations to the district;
NOW THEREFORE, BE IT RESOLVED, that I, Scott J. Lund, Mayor of the City
of Fridley, declare my appreciation to the members of the Fridley School District No.
14 School Board and proclaim the week of February 23 through 27, 2004, as
sc�rooL �o�� �ca�vrrroP ��x
in the Cifij of Fridley. I urge all citizens to join me in recognizing the dedication and
hard work of local School Board members. Furthermore, I urge all citizens to work
with the School Board to build an education system that meets the needs of both
today's and tomorrow's children.
IN WITNESS WHEREOF, I have hereunto set
my hand and caused the seal of the City of
Fridley to be affixed this 23fd day of February,
2004.
Scott J. Lund, Mayor
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THE MINUTES OF THE
FRIDLEY CITY COUNCIL
MEETING OF JANUARY 26, 2004
CITY OF FRIDLEY
CITY COUNCIL MEETING MINUTES
JANUARY 26, 2004
The regular meeting of the Fridley City Council was called to order by Mayor Lund at 7:30 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 Barnette, Councilmember Billings,
Councilmember Wolfe and Councilmember Bolkcom.
MEMBERS ABSENT: None.
PRESENTATION OF AWARD.
Mr. Steve Benoit, who worked with the City of Shoreview Parks and Recreation Department and
represented the Minnesota Recreation & Park Association's Awards Committee, presented the
Minnesota Recreation & Pazk Association Award of Excellence to Mr. Dave Kondrick. It was
presented to Mr. Kondrick for his outstanding work with the Fridley Parks and Recreation
Commission.
Mr. Dave Kondrick thanked the MRPA for the award. He said he had enjoyed being on the
commission for the past twenty-five years. He said the members of the commission really cared
what happened in the City. He also thanked the City Council and Jack Kirk.
STATE LEGISLATIVE DELEGATION.
Representative Char Samuelson said she represented a small, but important area of Fridley. Her
main focus this legislative term would be health and human services finance and health and human
services policy. Insurance premiums for healthcare were getting very high and expensive. The
Health and Human Services Finance Committee was looking at ways to decrease the inflation in
health care insurance. She was working with the Nursing Home Association to see if some of the
paperwork regulations could be reduced. She would also be looking whether there were areas of
local government control that needed to be addressed.
Councilmember Barnette said he would like to see them look into administrative fines.
Councilmember Bolkcom asked if Representative Samuelson thought they would allow cities to
levy back lost aid.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 2
Representative Samuelson said she did not think that would happen this year. She said she knew
there were no levy limits for 2005.
Mr. Burns said they were concerned about 2005. He said the City stood to lose a lot more aid in
2005. Probably the most important issue of all was whether they could levy back that lost aid.
Senator pon Betzold said he represented the northeast part of Fridley, a11 of Mounds View, all of
Columbia Heights and about 98 percent of Blaine. This was the second year of the two-year
biennium. Last year was the budget year and they had to balance the State's budget. The
November forecast said there was a$185 million deficit. They would get another forecast at the
end of February. It was a lot of money, but in the context of a$28 billion budget, it was a smaller
number and should be manageable. He thought it was an important year for the Northstar Comdor
project. The Governor recently expressed support and provided some bonding money for it. The
Senate had supported it, so it was up to the House. The sex offender issue was a big one and they
would be spending time on that. He said he would be carrying the Vikings stadium proposal for
Anoka County. It would be part of a major complex and the stadium would be used year-round.
The Vikings' current lease would run out in about seven years, and in order to have a new stadium
built by then a decision would need to be made soon. The Vikings would like to have their
training camp, their headquarters and the stadium all in one place. He thought .08 blood alcohol
concentration bill would pass. Levy limits were due to expire, and the Senate was not in support
of them and he did not think they would support reinstituting them. He would like to see
something done about expanded levy authority to get back the loss of local government aid, but he
was not sure if that would happen. They would hy again to get the levy passed for the Fridley
Community Center which was shared by the City of Fridley and the Fridley School District. He
said there was a town meeting scheduled Thursday, Febnzary 12, 2004, in the City Council
chambers from 7:00 p.m. to 9:00 p.m.
Representative Connie Bernardy discussed local government aid. She said she would do all she
could to make sure Fridley was treated fairly and the local government aid was preserved. Wine in
grocery stores was also an issue she was trying to prevent. She was on the Education Committee
and would try to do all she could to restore the $180 millions in cuts that were made to education
last year. If they could not make the town meeting on February 12, there would also be a meeting
on February 4 in Spring Lake Park, Februazy 7 in Blaine, and February 14 in Mounds View.
Representative Barb Goodwin said she thought it would be a long controversial session. In
addition to the issues discussed by the other legislators, they would have to look at the capital
punishment issue, all of the stadium proposals, and a healthcare proposal. The healthcare proposal
would basically make the non-profit healthcare system in Minnesota a for-profit healthcare system.
It also took a lot of regulations off the insurance companies. They would not need prior approval
for rate increases and it also limited the liability to $250,000. She said she appreciated the efforts
made by the cities to balance their budgets. She suggested that residents lobby the legislature,
particularly the Speaker and the Governor about the formula for local government aid.
Representa.tive Goodwin said she would be holding town meetings on January 31, at 11:00 a.m. at
the Fridley library and one at 1:30 p.m. at the Columbia Heights library.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 P_AGE 3
APPROVAL OF PROPOSED CONSENT AGENDA:
APPROVAL OF MINUTES:
City Council Meeting of December 8, 2003
City Council Meeting of December 15, 2003
APPROVED.
OLD BUSINESS:
1. ORDINANCE NO. 1183 TO AMEND THE CITY CODE OF THE CITY OF
FRIDLEY, MINNESOTA, BY MAKING A CHANGE IN ZONING DISTRICTS
(RFZONING REQUEST, ZOA #03-04, BY RAS PROPERTIES) (WARD 1).
Dr. William Burns, City Manager, said the second reading of the ordinance would
complete the rezoning of twelve apartment properties in the 74�' and 75th Avenue/Lyric
Lane area from R-2 to R-3. The rezoning also included, for purposes of eliminating spot
zoning, the rezoning of church property from R-1 to R-3. The rezoning corrected non-
conforming use status for all of the apartment properties that occurred as a result of City
rezoning in the late 1960s. The Planning Commission approved this rezoning at their
meeting on December 17, 2003. Council approved the first reading of the ordinance at its
meeting on January 5, 2004. Staff recommended Council's approval.
WAIVED THE READING AND ADOPTED ORDINANCE NO. 1183 ON SECOND
READING AND ORDERED PUBLICATION.
NEW BUSINESS:
2. RECEIVE THE NIINUTES OF THE PLANNING COMMISSION MEETING OF
JANUARY 7, 2004.
RECEIVED.
3. SPECIAL USE PERMIT REQUEST, SP #03-22, BY PROFORM THERMAL
SYSTEMS, INC., TO ALLOW LIMITED OUTDOOR STORAGE IN A HEAVY
INDUSTRIAL ZONING DISTRICT, GENERALLY LOCATED AT 7805 BEECH
STREET N.E. (WARD 31.
Dr. William Burns, City Manager, said the permit would a11ow outdoor storage at 7805
Beech Street. Petitioners wished to maintain existing enclosed storage of construction
equipment behind their building. Since the storage met all nine requirements of the City
Code, staff recommended Council's approval with two stipulations.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26. 2004 PAGE 4
APPROVED SPECIAL USE PERMIT REQUEST, SP #03-22, BY PROFORM
THERMAL SYSTEMS, INC., WITH THE FOLLOWING TWO STIPULATIONS:
1. ANY EXISTING OUTDOOR STORAGE ON THE SITE SHALL BE REMOVED
OR PROPERTY STORE IN THE SCREENED STORAGE AREA BY MARCH 1,
2004; AND 2. NO OUTDOOR STORAGE OTHER THAN THE STORAGE OF
ITEMS USED FOR THIS BUSINESS.
4. SPECIAL USE PERMIT REQUEST, SP #03-23, BY MALTON EQUIPMENT
COMPANY, TO ALLOW LINIITED OUTDOOR STORAGE IN A HEAVY -',
INDUSTRIAL ZONING DISTRICT, GENERALLY LOCATED AT 7580
COMMERCE LANE N.E. (WARD 31. ,.
Dr. William Burns, City Manager, said the permit would allow outdoor storage at 7580
Commerce Lane. Petitioner wished to store pallets, fiberglass tooling, a metal recycling
bin and miscellaneous materials in the rear yard of the property. Since the storage met all
nine requirements of the City Code, staff recommended Council's approval with two
stipulations.
APPROVED SPECIAL USE PERMIT REQUEST, SP #03-23, BY MALTON
EQUIPMENT COMPANY, WITH THE FOLLOWING STIPULATIONS: 1.
EXISTING GATE TO HAVE SLATS INSTALLED IN ORDER TO COMPLY
WITH CODE REQUIREMENTS BY AUGUST 1, 2004; AND 2. NO OUTDOOR
STORAGE OTHER THAN THE STORAGE OF ITEMS USED FOR THIS
BUSINESS.
5. SPECIAL USE PERMIT REQUEST, SP #03-25, BY AGRO-K CORPORATION, TO
ALLOW LIMITED OUTDOOR STORAGE IN A HEAVY INDUSTRIAL ZOI�TING
DISTRICT, GENERALLY LOCATED AT 8030 MAIN STREET N.E. (WARD 3).
Dr. William Burns, City Manager, said the permit would allow outdoor storage at 8030
Main Street. It would allow outdoor storage of 55 gallon drums in a 30' x 50' azea by the
loading dock. Since the storage met all nine requirements of the City Code, staff
recommended Council's approval with two stipulations.
APPROVED SPECIAL USE PERMIT REQUEST, SP #03-25, BY AGRO-K
CORPORATION, WITH THE FOLLOWING STIPULATIONS: 1. SCREENING
GATE TO BE CLOSED TO ALLOW PROPER SCREElvING OR PETITIONER
TO PROVIDE AN ADDITIONAL SCREENING FENCE IN FRONT OF THE
BARRELS TO SCREEN THEM FROM THE PUBLIC RIGHT-OF-WAY; 2. NO -
OUTDOOR STORAGE OTHER THAN THE STORAGE OF ITEMS USED FOR
THIS BUSINESS. _
6. RESOLUTION NO. 2004-OS SUPPORTING RECYCLING OPTIONS FOR CRTs.
Dr. William Burns, City Manager, said the regional Solid Waste Coordinating Board
(composed of two County Commissioners from six of the seven metropolitan counties)
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 5
asked Council to support a resolution asking for State legislation that made manufacturers
responsible for the disposa.l of cathode ray tubes or picture tubes from computers and
television sets. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 2004-05.
7. RESOLUTION NO 2004-06 PROVIDING FOR THE SALE OF $1,790,000 G.O.
WATER REVENUE BONDS, SERIES 2004A.
Dr. William Burns, City Manager, said the bonds were being issued to provide funding for
the following projects: 1. Marian Hills Tower Replacement; 2. Recondition the Water
Treatment Plant; 3. Repair and Renovation Commons Park Tower; 4. Water Tower #2,
Repair and Paint; and 5. Water Main Relining on 83`d Avenue RR to Main Street. While
bonds were normally sold after completion of projects, interest rates were such that we
recommended an advance sale of bonds for these 2004-2005 projects. The proceeds of the
sale could be held for a period of three years in anticipation of projects. The debt for this
issue had been structured in a manner that maintained debt service for the Water Fund at
about the same level as in 2003. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 2004-06.
8. RESOLUTION NO 2004-07 PROVIDING FOR THE SALE OF $3,920,000 G.O.
TAXABLE TAX INCREMENT REFUNDING BONDS, SERIES 2004B.
Dr. William Burns, City Manager, said the resolution authorized the sale of bonds that
would refinance the 1998 bonds used to purchase the Lake Pointe property. It was
estimated that the refinancing would save the Fridley Housing and Redevelopment
Authority $176,000 in debt service. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 2004-07.
9. RESOLUTION NO 2004-08 PROVIDING FOR THE SALE OF $1,285,000 G.O.
REFUNDING BONDS, SERIES 2004C.
Dr. William Burns, City Manager, said the resolution authorized the sale of bonds for
refinancing of debt associated with the Locke Lake project and the construction of the Well
No. 12 filtration plant. The proceeds from the bond sale would be held until February,
2005, and then used to retire debt for bonds issued at a higher rate in 1996. This would
save $51,100. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 2004-08.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 6
10. RESOLUTION NO. 2004-09 ORDERING IMPROVEMENT. APPROVAL OF
PLANS AND ORDERING ADVERTISEMENT FOR BIDS: SA1vITARY AND
STORM SEWER LINING PROJECT NO. 354.
Dr. William Burns, City Manager, said the sanitary sewer project included the lining of
2,000 feet of corrugated metal pipe on West Moore Lake Drive, Marigold Terrace, Monroe
Street and 58th Avenue. The storm sewer project included the sealing of badly leaking
joints for the storm sewer on 75th Avenue, Hayes Street and Meadowmoor Drive. The
amount of $80,000 was budgeted from the Sewer Fund and $50,000 from the Storm Water
Fund. Staff recommended Council's approval.
ADOPTED RESOLUTION NO. 2004-09.
11. RECEIVE PROPOSAL AND AWARD CONTRACT TO BONESTROO. ROSENE.
ANDERLIK & ASSOCIATES TO COMPLETE THE VULNERABILITY
ASSESSMENT AND EMERGENCY RESPONSE PLAN FOR FRIDLEY'S WATER
SYSTEM.
Dr. William Burns, City Manager, said the United States EPA mandated the preparation
and submittal of the plans by June 30, 2004. Staff recommended that Bonestroo, Rosene,
Anderlik & Associates be hired at a cost of $15,400 to complete the study and response
plan.
RECEIVED PROPOSAL AND AWARDED CONTRACT TO BONESTROO,
ROSENE, ANDERKIK & ASSOCIATES TO COMPLETE THE Vi7LNERABILITY
ASSESSMENT AND EMERGENCY RESPONSE PLAN FOR FRIDLEY'S WATER
SYSTEM.
12. APPROVE REVISED AGREEMENT FOR LEGAL SERVICES BETWEEN THE
CITY OF FRIDLEY AND NEWQUIST & EKSTRUM, CHARTERED, AND CARL
J. NEWQUIST.
Dr. William Burns, City Manager, said the Police Department recommended that the
subpoena service be moved to the City Prosecutor's office. This would cost about $12,000
per year. We would save $14,600 a year in personnel costs. Staff recommended Council's
approvaL
APPROVED.
13. APPROVE 2004 ANIMAL CONTROL CONTRACT BETWEEN THE CITY OF ^
FRIDLEY AND BRIGHTON VETERINARY HOSPITAL.
Dr. William Burns, City Manager, said the only change in the contract was the increase in
cost of services which would rise from $1,200 to $1,300 per month. The increase was
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FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26. 2004 PAGE 7
reasonable in view of the fact it had not been changed since 1997. The Police Department
was pleased with the quality of service. Staff recommended Council's approval.
APPROVED.
14. CLAIMS.
APPROVED CLAIM NOS.114886 THROUGH 115143.
15. LICENSES.
APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE.
16. ESTIMATES.
APPROVED THE FOLLOWING ESTIMATE:
Creative Curb Contractors, LLC
64358 — 375�' Street
Watkins, MN 55389
2003 Miscellaneous Concrete Repair
Project No. 351
FINAL ESTIMATE:
APPROVAL OF PROPOSED CONSENT AGENDA.
Dr. Burns recommended approval of the consent agenda.
$ 6,101.52
Councilmember Bolkcom asked why there were so many outdoor storage special use permit
requests on the agenda.
Mr. Scott Hickok, Community Development Director, said it related to the systematic inspection
process that was conducted over the last two years. The special use permit would legitimize
outdoor storage on a site and if the business operated under nine standards that were set by the City
Council.
MOTION by Councilmember Barnette to adopt the proposed consent agenda as presented.
- Seconded by Councilmember Wolfe.
: UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 8
ADOPTION OF AGENDA.
MOTION by Councilmember Bolkcom to adopt the agenda as presented. Seconded by
Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OPEN FORUM:
Mr. Tim Byrne, 6053 Woody Lane N.E., read the following letter he had written to
Councilmember Wolfe.
Dear Mr. Wolfe:
Please consider making the following motion or resolution at the next meeting of the
Fridley City Council. Make a motion or resolution to temporarily ban a11 S-2 rezoning in
the City of Fridley effective immediately. The City Council should then esta.blish a policy
on redevelopment based upon input from the citizens of Fridley and update the
Comprehensive Plan as necessary. This action was necessary because S-2 rezoning now
results in high density developments which are not consistent with our existing single
family home neighborhoods.
Mr. Byrne asked the City Attorney if Council had the authority to temporarily ban S-2 rezoning
until they could look at the Comprehensive Plan.
Attorney Fritz Knaak, City Attorney, said that Council could enact a moratorium on development
or certain kinds of development within the City for the purpose of reviewing the Comprehensive
Plan.
Mr. Byrne asked what kind of vote would be needed.
Attorney Knaak said a maj ority.
Mr. Byrne said Council was reacting to what the developers and City staff proposed. He thought
the elected officials should set the policy and City staff should carry it out.
Mayor Lund said the Comprehensive Plan was the guideline that was established.
Mr. Byrne asked if Council voted on it.
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Mayor Lund said it was voted on.
Mr. Byrne said it was not a plan anymore but a policy. When they voted 4 to 1 on the project near
Sandee's, it went from being a plan to a policy.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 9
Mayor Lund said Mr. Byrne's points were well taken about the Comprehensive Plan. He said they
would address that in the future.
Mr. Byrne asked if it would be possible to set a date.
Mayor Lund said they are going to take a preliminary look at the issue at the Council's next
conference meeting which was scheduled for Apri119, 2004.
Mr. Bryne asked if the meeting was open to the public.
Mayor Lund said all meetings were open to the public. It was an informal discussion and they
would not be setting policy.
PUBLIC HEARINGS:
17. CONSIDERATION OF THE 2004 STREET IMPROVEMENT PROJECT NO. ST.
2004-1.
MOTION by Councilmember Billings to waive the reading of the public hearing notice and open
the public hearing.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Layne Otteson, Assistant Public Works Director, said the project was in the North Park
neighborhood. It included a residential area and a commercial area, which he outlined on a map.
The project was part of the annual street reconstruction program. They performed a condition
rating of the streets annually and this indicated what streets needed to be replaced. The City's
standards for streets included concrete curb and gutter and a standard driving width of 30 to 44 feet
which would be the width from the face of the curb on one side to the face of the curb on the other.
Residential streets were designed for 9 tons to accommodate buses and gazbage trucks.
Commercial streets were designed for 11 tons. The streets were also designed to be higher in the
middle to improve drainage.
Mr. Otteson said the existing streets in the project area would be replaced with a new aggregate
base and a pavement surface. Existing bituminous curb would be replaced with new concrete curb
and gutters. Utilities would be reviewed and upgrades to such items as hydrants, sewer services,
sections of the sanitary sewer main, storm sewer inlets and piping would be considered. Steep and
flat driveways would also be taken into consideration. On University Avenue, decorative fencing
would be installed on the east side from 61 St Avenue to Mississippi Street. It would be similar to
the fencing installed in the Gateway East area. Bids would be opened in March, construction
would begin in May, and construction should be completed in October. In November, a public
hearing would be held to set the assessment. The assessments would start in January, 2005.
Mr. Otteson said the reconstruction project had several issues. The first issue was project
communication with the residents. At the beginning of the project, they met with the residents and
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26. 2004 PAGE 10
a project letter was sent out that outlined who the contractor was for the project, when the project
would begin, where construction would begin, safety, and other issues. They also provided a list
of contacts and telephone numbers. The mail boxes were moved out of the way of construction.
Sometimes they were relocated together neax the beginning of the construction site. Other issues
that came up included landscaping, sprinklers, driveway restoration, and sewer service repairs.
They would make sure that daily access was provided.
Mr. Otteson said the residential assessment policy was based on the length of the adjusted front
foota.ge. The adjusted front footage was measured across the property at a distance of 35 feet from
the front property line, on the address side. All work associated with the installation of concrete
curb was assessed. If it already existed on the address side of the property, there would be no
assessment. Residential assessment costs would be no more than $16 per foot for the concrete
curb. All construction costs in commercial projects were 100 percent assessable to the fronting
properties. Properties on both sides of the reconstructed street shared the cost based on a fifty-fifty
split. The City would pay for the University Avenue side. Assessments were estimated to be
$65.00 per front foot of property. The assessment could be paid with a lump sum payment within
thirty days of the assessment hearing after construction, or the assessment could be added to the
property taxes paid over ten years with an interest rate of approximately 6.5 percent. There was
another option available to senior citizens meeting certain criteria and that was to request to have
the assessment deferred until the future sale of the property. Interest would accrue until the sa1e.
MOTION by Councilmember Billings to receive a letter from the Reverend Joseph Whalen,
Pastor, Church of St. William, dated January 23, 2004, objecting to the project. Seconded by
Councilmember Bolkcom.
Councilmember Barnette said he thought church property was tax exempt. He asked if that was
true for assessments.
Mr. Jon Haukaas, Public Works Director, said assessments were different than taxes.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Councilmember Bolkcom asked if there would be an assessment hearing in the fall.
Mr. Haukaas agreed.
Mr. Rex Friesleben, 5540 Regis Trail N.E., asked if the street material would be hot rolled asphalt
or oil and gravel.
Mr. Otteson said it would be hot rolled asphalt.
Mr. Friesleben said his property had a retaining wall going to the street. He asked how that would
be handled.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 _PAGE 11
Mr. Otteson said when the landscaping was done in the boulevard, they looked at retaining wa11s
and tried to protect them. If it was necessary, they required the contractor to restore them to as
good as new or better.
Mr. Friesleben asked about shrubs and trees.
Mr. Otteson said they tried to avoid shrubs, trees and landscaping. They tried to avoid anything in
the boulevard area because that increased the costs of the project.
Mr. Haukaas said on the construction projects, they would look at the impact with respect to the
landscaping. If they felt that the tree had a chance of dying because of the project and it was a tree
in the boulevard and the City's right of way, they would first approach the resident and explain the
situation. In that kind of a situation, they would not put a tree back in the boulevard but might give
the resident an option of having the tree planted in the yard. They did not restore trees to the right-
of-way.
Mayor Lund asked if Mr. Friesleben was in favor of the project.
Mr. Friesleben said he was.
MOTION by Councilmember Wolfe to close the public hearing. Seconded by Councilmember
Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
MOTION by Councilmember Wolfe to receive the letter written by Mr. Tim Byrne. Seconded by
Councilmember Barnette.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
18. CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 205 OF THE
FRIDLEY CITY CODE PERTAINING TO S-3, ONAWAY DISTRICT,
SCREENING OF SOLID WASTE (CONTINUED NOVEMBER 24, 2003).
MOTION by Councilmember Bolkcom to reopen the public hearing which had been continued at
the November 24, 2003, City Council meeting. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
Mr. Scott Hickok, Community Development Director, said this was a continuation of a public
hearing on an ordinance to provide relief from dumpster screening requirements in the Onaway
District. The change in the code would not require screening of solid waste containers located in
the Onaway District. During their systematic sweep of the Onaway District, staff identified unique
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 12
hardships for the Onaway businesses regarding the screening of solid waste due to alleyways and
power lines. Meetings were held with business owners in November and December, 2002, to
develop a solution. He said the Onaway District went from Main Street to the rail lines, north of
77�' Avenue and south of 81 St Avenue. Power lines run throughout the district and which made it
di�cult to lift dumpsters overhead. The change also attempted to eliminate situations where there
were dumpsters in the alleys. The ordinance specifically addressed where the dumpsters could be
placed. Dumpsters would now need to be within five feet of the building. Staff recommended
approval of the proposed changes to the screening of solid waste requirements in the S-3, Onaway
District. The proposed changes allowed Onaway District industries that did not have site
conditions to accommodate a solid waste enclosure to be in compliance with the Fridley City
Code. Notices were sent to the businesses in the Onaway District.
Councilmember Barnette said the businesses in the Onaway District were notified. He asked if
they received a good response from the business owners.
Mr. Hickok said they had a good turnout at both meetings. There was much support and they were
enthusiastic about the fact that the City helped them find a creative solution to this problem.
Councilmember Bolkcom said the hearing was continued because they wanted to make sure that
the Onaway District business owners were notified. She asked if they had heard from anyone.
Mr. Hickok said they had not heard anything about the notices that were sent out. They did have
continuing discussions about special use permits.
MOTION by Councilmember Bolkcom to close the public hearing. Seconded by Councilmember
Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
OLD BUSINESS:
19. FIRST READING OF AN ORDINANCE AMENDING CHAPTER 205 OF THE
FRIDLEY CITY CODE PERTAINING TO S-3, ONAWAY DISTRICT,
SCREElvING OF SOLID WASTE (TABLED NOVEMBER 24, 2003).
MOTION by Councilmember Bolkcom to waive the reading and approve the ordinance on first
reading. Seconded by Councilmember Wolfe.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 13
20. ORDINANC� NO. 1184 TO AMEND THE CITY CODE OF THE CITY OF
FRIDLEY MINNESOTA BY MAKING A CHANGE IN ZONING DISTRICTS
��n�vnvr_ uFnrTF.ST, ZOA #03-02, BY TOWN CENTER DEVELOPMENT
(WARD 2).
MOTION by Councilmember Billings to waive the reading and adopt Ordinance No. 1184 on
second reading. Seconded by Councilmember Wolfe.
Councilmember Bolkcom asked if there had been any changes to any of the stipulations.
Mr. Hickok said there had not. He said there was a clarification on Stipulation No. 1 just so that it
was clear that what was approved was the three-story design as opposed to the four-story design.
UPON A VOICE VOTE, MAYOR LUND, COUNCILMEMBER BARNETTE,
COUNCILMEMBER BILLINGS AND COUNCILMEMBER WOLFE VOTING AYE AND
COUNCILMEMBER WOLFE VOTING NAY, MAYOR LUND DECLARED THE
MOTION CARRIED ON A 4 TO 1 VOTE.
NEW BUSINESS:
21. SPECIAL USE PERMIT REQUEST, SP #03-24, BY WALLBOARD, INC., TO
ALLOW LIMITED OUTDOOR STORAGE IN A HEAVY INDUSTRIAL ZO1vING
DISTRICT GENERALLY LOCATED AT 5346 INDUSTRIAL BOULEVARD N.E.
(WARD 3).
Mr. Scott Hickok, Community Development Director, said the request was for a special use permit
to allow limited outdoor storage in the side and rear yards at Wallboard, Inc., 5346 Industrial
Boulevard N.E. The petitioner wanted to store steel studs and other accessories related to the
building trade which were used for the business. The property was zoned M-2, Heavy Industrial.
The City Code allowed limited outdoor storage in the industrial districts with � special use permit
as long as nine specific code requirements were met. Those specific requirements related to
height, screening, parking, amount of outdoor storage, and the types of materials allowed to be
stored outside. Petitioner asked to be allowed to continue the existing outdoor activity on the
property. Drywall, insulation and other building materials were stored inside. Steel studs and
other accessories related to the building trade were stored outside. The perimeter of the property
was fenced and landscaped. The petitioner planned on installing slats in the existing cyclone fence
to meet the outdoor storage screening requirement.
Mr. Hickok said the Planning Commission held a public hearing on this request on January 7,
2004. During the public hearing, Petitioner stated that when she bought the property in 1994, she
received a letter from the City which stated that outdoor storage could not exceed 15 feet in height.
The existing outdoor storage on her site was 15 feet in height and she was unable to meet the 12
foot height requirement. The letter she received from the City stated that material, motor vehicles,
and equipment could not exceed 15 feet in height for incidental outdoor storage. The outdoor
storage on this property has never been incidental. In order for the Petitioner to exceed the 12-foot
FRIDLEY CITY COUNCIL MEETING_MINUTES OF JANUARY 26, 2004 PAGE 14
height requirement for outdoor storage, a variance would need to be granted. The Planning
Commission recommended approval with the following six stipulations:
The petitioner shall be responsible for screening the limited outdoor storage area in order to
comply with code requirements by August 1, 2004.
2. Outdoor storage cannot exceed 12 feet in height or exceed 50% of the principa.l building's
footprint.
3. Petitioner to provide the City staff with a site plan showing the outdoor storage locations
prior to the City Council meeting of January 26, 2004.
4. Trailers located outside the existing fence and within the public right-of-way shall be
removed.
5. No outdoor storage other than the storage of items used for this business.
6. The petitioner sha11 apply for a variance within 60 days of approval of this special use
permit request or comply with the 12 foot height requirement for outdoor storage.
Staff recommended Council's approval.
Councilmember Bolkcom asked about incidental storage.
Mr. Hickok said required outdoor storage meant you needed to be in the M-3 District. Incidental
storage was what happened in the M-2 District. Incidental storage may be temporary outdoor
storage before it was moved indoors. Required storage was outdoor storage until it was sent to
where it was headed. The M-3 code that created outdoor intensive storage was revised in 1992.
The subject property was purchased in 1994 and the building was built in 1996.
Councilmember Bolkcom said the code was revised before the property was purchased. She asked
if the trailers that were outside of the fence got moved in and were considered part of the storage
would they have to be included in the 50 percent.
Mr. Hickok said some trailers come and go and that would be incidental. The trailers at this
location have been sitting outside the fence for some time. It appeared to be required storage as
opposed to an incidental use. It would need to be confined to the 50 percent footprint azea of the
building. If the business constantly required storage of outdoor material, then it was an M-3 use.
It was outdoor intensive and needed to be elsewhere. In an incidental use, you might see materials
outside on occasion, but they were not required to be outdoors in order to make the business thrive.
Councilmember Bolkcom asked if there was enough room to build another building.
Mr. Hickok said they probably were going to add on to the building and do some repositioning and
racking. Their favorite option would be to have the building expand and all of the materials kept
inside.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 15
Councilmember Bolkcom said one of the stipulations for this special use permit request said there
had to be a variance. She asked what happened if there was a variance request and it was denied.
The stipulation said the petitioner had to apply for a variance within 60 days or comply with the
12- foot height requirement.
Mr. Hickok said the intent was to follow the 12-foot height unless they are granted a variance. The
time frame was meant to give them a time certain to apply for the variance. If the variance was
denied, they have a special use permit with a 12-foot height standard. The special use permit
would not be in jeopardy.
Councilmember Bolkcom asked Attorney Fritz Knaak, City Attorney, if he was in agreement.
Attorney Fritz Knaak, City Attorney, said they would be granting a special use permit for the 12-
foot height. If they were successful in obta.ining a variance, the terms of the special use permit
would still apply. If the special use permit was 12 feet, even if they had a variance for more than
that, they would not be able to expand it beyond what the special use permit allowed unless there
was an amendment to the special use permit as well. Depending on how it was worded, it would
have to be an either/or format. The permit itself would have to say either a 12-foot limitation or 15
feet if a variance was granted.
Mr. Hickok said Attorney Knaak was correct and it was staff's intention that if the variance of 15
feet was granted, they would asked Council at that time to recognize that and would have a
separate action before Council to modify the special use permit to include the 15-foot height.
Councilmember Bolkcom asked why a stipulation was included that was unclear.
Mr. Hickok said they could just grant the 12-foot high special use permit and have the variance
request sepaxate.
Ms. Patti Paraschuk, 5346 Industrial Boulevard N.E., owner of Wallboard, Inc., said the company
was over 40 years old and she had owned it since 1984. They had previously been in north
Minneapolis for 28 years. Prior to buying the land in Fridley, she spoke with Barbara Dacy and
showed her exactly what they planned to do at the new location and invited her to see their old
location, which she did. Based on that, she received a letter of approval from Ms. Dacy. She
purchased the land in November of 1994. She went ahead with the building and as the letter stated
there was a 15-foot limitation for outdoor storage. She did not know there were any other
stipulations until 2003 when she found out about the stipulations that stated 12-feet heights for
outdoor storage plus 50 percent of the building's footprint. She had based her business on the
letter dated April, 1994. She said they could not change what they had. Their racking was 15 feet
and the trucks were over 13 feet. Staff recommended the racks of steel be put in one area. That
would be impossible, because they needed a radius for the forklift to move it. There were 15 to 20
semi-trucks delivering every day. They had to be able to go around the building and turn. If they
filled the space, no one would be able to deliver to them. They could not take the product off the
racks because they had no place to put it and they could not congest it into one location because
there would be no room for the trucks. The trailers were outside, but they were used to deliver.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 16
She could not conduct her business with the limitations first given to her in 2003. She said she did
not want to move out of the City. It would be an expensive proposition and they liked the location
and loved the access to the freeway.
Mayor Lund said Ms. Paraschuk was asking for the 15-foot variance and had a problem with the
second stipulation which restricted the business to 50 percent of the principal building's footprint.
Ms. Paraschuk agreed.
Mayor Lund asked if Ms. Paraschuk had a problem with any of the other stipulations.
Ms. Paraschuk not to her knowledge.
Ms. Bolkcom asked if they had granted anything like this and if there was a solution to the
problem.
Mr. Hickok said as part of the systematic process an ordinance was adopted to loosen up the
outdoor storage requirements. Prior to that, this site would not have been entitled to outdoor
storage except for incidental. When an amendment to the ordinance was adopted, it allowed a very
generous provision that 50 percent of the principal building's footprint could be allowed for
outdoor storage.
Ms. Paraschuk said the inventory on the back of the buildings was on racks. There were always
delays in construction. Sometimes a job was delayed two weeks, a month or even two months.
They might already have the product ordered and there was nothing they could do about it except
keep it there until it went back out. Their merchandise had a minimum of twelve turns per year
and possibly 15 to 20. The inventory was not there long, but they had to have all of it. That was
how they did business.
Councilmember Bolkcom asked if any guidelines were given to people in a M-2 or other district
when they applied for a building permit.
Mr. Hickok said he did not remember a time when an industrial owner came straight to the permit
counter and received a permit. Typically they visited with staff and were given a packet of
material on what the district was and what the district allowed. He said they had a developer
review committee meeting in which staff from Engineering, the Police Department, the Planning
Department, the Assessing Division and any other division of the City met to look at the different
aspects of the project.
Councilmember Bolkcom asked if they had reviewed the history of this business.
Mr. Hickok said they reviewed the entire history. What was stated to Ms. Paraschuk as she was
looking at the site was that the site allowed incidental outdoor storage and it could only occur if it
was behind the building, could not be seen from the public right-of-way, and was truly incidental.
At that time, it could not exceed 15 feet in height.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 17
Councilmember Bolkcom asked about the trailers. The staff report indicated that the trailers do set
outside the storage area for some time. They do not always move in and out as Ms. Paraschuk
suggested.
Ms. Paraschuk said she could not tell on a daily basis, but out of the 15 trailers they had, most
would be in and out all day long.
Councilmember Bolkcom asked why the trailers were outside the fenced in area.
Ms. Paraschuk said it was easier to load and unload them. She said she did not apply for a permit.
The contractor did. If the contractor received the information, she was unaware of it.
Councilmember Bolkcom asked Mr. Knaak if it was ultimately the responsibility of the owner of a
property to understand what the uses were for the property and how they maintained the property.
Attorney Knaak said yes.
Ms. Paraschuk said she agreed with that and thought she was.
Councilmember Wolfe said when the ordinance was passed, they did not see every situation. To
change it would be frustrating to him because he knew what she would have to do.
Ms. Paraschuk said it was an impossibility. She could not congest everything into one location.
Councilmember Billings asked if the ordinance spelled out the 50 percent requirement, or if it was
just staffs' interpretation.
Mr. Hickok said the ordinance said the storage area could not exceed 50 percent of the floor area
of the principal building. It was staffs' interpretation that it would be floor area of 50 percent of
the building size. The intent of the ordinance was to give 50 percent of the floor area of the
building behind the building so that it could be contained in the screening area. In this case, the
materials were spread out throughout the yard and could not be contained effectively with the gates
opened and closed. It if was behind the building and screened properly, the gates could be opened
and closed without the view of the stacks and piles of materials in the yard.
Councilmember Billings said the spirit of the code would not be violated if someone had an area
that was 25% covered and was screened and had another area that was 25% covered and screened
separately.
Mr. Hickok said it had to be evaluated on a site-by-site basis and the intent was to give an outdoor
storage opportunity without giving the appearance of an industrial site or neighborhood. He said
Councilmember Billings' suggestion was possible. Breaking it down beyond that would create a
yard. It was no longer 25% and 25%. It was 4% here, 8% here, 12% here, and 10% here and soon
the 50% disappears. It would be impossible from an enforcement perspective to keep track of
what was on the site.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 18
Councilmember Billings said that it did not have to be all 50 percent contiguous. There could be
multiple large areas designated as outdoor storage. At the same time, there could not be so many
little storage areas that are divided by drive aisles that the whole thing became a storage yard.
Councilmember Bolkcom asked Ms. Paraschuk if they could confine it to two areas, screen it, keep
the fence closed and keep the trailers inside.
Ms. Paraschuk said that keeping the fence closed during the day would be impossible. Trucks
were going through the area all day long. They would keep the gates closed off hours.
Councilmember Bolkcom asked if instead of one area of 50%, if they could have two storage areas
and screen them so they were not spread out over the whole yard.
Ms. Paraschuk said they had various lengths of steel studs. It would not be possible to put them all
together. They had them on racks. Space was needed for the forklift to turn around, pick the
product up and put it on the trucks.
Councilmember Barnette asked if there was some way, whether through special use permit or a
variance to accommodate the business.
Councilmember Bolkcom asked if her business had increased. She was concerned about
businesses expanding well beyond what they started out to be.
Councilmember Wolfe said they have been without problems for 10 years, and now there was a
problem.
Councilmember Bolkcom said that they needed to discuss this further.
Councilmember Wolfe said that decisions might have been made without knowing the whole
situation.
Councilmember Barnette wanted to find a way to keep the company in Fridley.
Dr. William Burns, City Manager, said it seemed like there were three options. One would be a
zoning text amendment regarding outdoor storage. The second would be whatever variance was
required to accommodate the request. The third would be a rezoning, although spot rezoning was
probably out of the question.
Councilmember Bolkcom asked if they could ask for an extension of time. If possible, she would
like staff to look at this matter further.
Councilmember Barnette asked what a zoning text amendment required and if it would amount to
spot rezoning.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26. 2004 PAGE 19
Mr. Hickok said that in this case, a zoning text amendment would be text amendment to have the
Council re-evaluate whether 50 percent was the appropriate amount of site coverage or whether
some other percentage would be appropriate. It would not apply just to this site but to the
industrial district universally.
Councilmember Barnette asked if this could cause problems.
Mr. Hickok said it could. He said they studied what was happening elsewhere and 50 percent was
as generous as any other community was giving. If a variance was granted, they would need to be
very specific about what the characteristics of this site are that made it necessary here but nowhere
else, or there may be problems with other businesses. He thought it would be difficult to find the
unique characteristics about the site other than the way they have chosen to operate that would
make a variance applicable. He did not know if there were a lot of choices other than to grant or
not grant the special use permit. The petitioner said the gates needed to be open, which was a
problem. If that was intended to be the screening, 50 percent of the floor area of the building
somewhere on the site needed to be screened so that the gate could be opened and it was still
screened when you looked into the site. There was always the quiet neighbor that you could not
forget about. There was the industrial property owner who had built an impeccable industrial
property and based their choice and design standards based on what the ordinance required. If they
picked a spot because outdoor storage would not be a problem in the neighborhood only to have
outdoor storage prevail, there could be a problem.
Mayor Lund asked if Ms. Paraschuk had thoroughly researched the options. He said he did not
know if the 15-feet height was a problem because he did not hear a lot of negative discussion about
getting a variance from 12 to 15 feet. It sounded like the bigger issue was getting it condensed to
50 percent of the footprint of the building.
Ms. Paraschuk agreed. She said she did not know that was a requirement.
Mayor Lund said he understood that there was extenuating circumstances and Council did want to
be amenable. However, staff needed to have some type of clear direction as to how it should be
enforced. He agreed with Councilmember Bolkcom that this should be continued.
Councilmember Billings said he disagreed with continuing it because whether a variance was
granted in the future or whether there was an amendment to the zoning text, a special use permit
still needed to be granted. A zoning text amendment and a variance were two separate processes.
He suggested issuing the special use permit.
Councilmember Bolkcom said Petitioner said she did not understand that it had to be 50 percent
storage in one area. She suggested continuing this matter so that staff could meet with Petitioner
and discuss this further and look at alternatives or approving the special use permit and allowing
Petitioner to work with staff.
Councilmember Billings said if the special use permit was granted, Petitioner would have the
opportunity to work with staff. If she could not work anything out with staff, she had storage in 50
percent of the building's footprint.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 PAGE 20
Mr. Hickok mentioned Stipulation No. 3.
Councilmember Billings said that Stipulation No. 3 would go away when they voted on it.
Mayor Lund said the special use permit was granted and Petitioner could not meet the
requirements, at what point would it be enforced.
Councilmember Bolkcom said she would need to apply for a variance right away if the special use �
permit was approved. It would be handled like any other special use permit. They would get a
certain amount of time and would get a notice and if they could not comply and would be back _
before Council.
Mayor Lund said it was his understanding that as long as Petitioner was trying to get a vaziance of
some sort , she would not be found in violation.
MOTION by Councilmember Bolkcom to approve Special Use Permit Request, SP #03-24, by
Wallboard, Inc. Seconded by Councilmember Billings.
MOTION by Councilmember Bolkcom to amend the stipulations for Special Use Permit Request,
SP #03-24, by Wallboard, Inc., as follows:
1. The petitioner sha11 be responsible for screening the limited outdoor storage area in order to
comply with code requirements by August 1, 2004.
2. Outdoor storage cannot exceed 12 feet in height or exceed 50% of the principal building's
footprint except as may be modified by variance approval.
3. Trailers located outside the existing fence and within the public right-of-way shall be
removed.
4. No outdoor storage other than the storage of items used for this business.
5. The petitioner shall, within ninety (90) days of approval of the special use permit, comply
with the height requirements for outdoor storage.
Seconded by Councilmember Billings.
UPON A VOICE VOTE ON THE MOTION TO AMEND THE STIPULATIONS TO -
SPECIAL USE PERMIT REQUEST, SP #03-24, ALL VOTING AYE, MAYOR LUND
DECLARED THE MOTION CARRIED UNANIMOUSLY. ,
UPON A VOICE VOTE ON THE MOTION TO APPROVE SPECIAL USE PERMIT
REQUEST, SP #03-24, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION
CARRIED UNANIMOUSLY.
FRIDLEY CITY COUNCIL MEETING MINUTES OF JANUARY 26, 2004 __ PAGE 21
22. INFORMAL STATUS REPORTS.
Dr. William Burns, City Manager, said the Community Development Director would like to
discuss the Community Development Block Grant application.
Dr. Burns said the latest newsletter should be delivered on or before February 10, 2004.
Councilmember Bolkcom would like to discuss a transportation issue.
Mayor Lund said the 2°d annual StarGazers at Fridley would be held Saturday and Sunday,
. February 21 and 22, 2004.
Mayor Lund said the City's Winterfest would be held on Saturday, January 31. Activities would
be held at the Springbrook Nature Center, Commons Park and the Fridley Community Center.
Mayor Lund said the City had received a Certificate of Achievement for Excellence in Financial
Reporting for the year 2002.
ADJOURNMENT:
MOTION by Councilmember Barnette to adjourn the City Council meeting. Seconded by
Councilmember Bolkcom.
UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE
MOTION CARRIED UNANIMOUSLY AND THE MEETING WAS ADJOURNED.
Respectfully submitted,
Roberta S. Collins
Secretary
0
Scott J. Lund
Mayor
�
�
CRY OF
FRIDLEY
To:
From:
Date:
Re:
AGENDA ITEM
CITY COUNCIL MEETING OF
FEBRUARY 23, 2004
William W. Burns, City Manager ��
�
Deborah Dahl, Human Resources Director
February 19, 2004
AMENDMENT OF PERSONNEL ORDINANCE
This is a request to amend Chapter 3 of the Fridley City Code Personnel relating to Severance Pay.
Background
As you may recall, during the announcement of recent layoffs, an issue arose as to who is eligible to
receive severance pay under Section 3.05. The current language allows for severance pay to be provided
to "an employee hired before September 1, 1978" and does not define "employee" as full-time,
authorized or part-time.
One employee who was laid off came forward and requested severance pay based on the grounds that
even though she was part-time at the time the ordinance was in effect, she in fact was hired prior to Sept.
1, 1978.
City Attorney, Fritz Knaak, concluded that while the intention is to provide the benefit only to full-time
authorized employees, the City was not cleaz in its defuution of employee. His opinion was that the City
would not be able to a make a strong azgument to defend the City Code as written and recommended a
severance agreement be made to that employee.
Mr. Knaak also urged the City to take inunediate action to amend the ordinance to clarify the definition
of employee in order to limit any further liability exposure.
By amending this ordinance, there will be no additional cost to the City and there will be no employees,
which will be added to the current pool of beneficiaries already budgeted.
If the City Council does not approve the amendment, then additional part-time, seasonal or temporary
employees may potentially seek claims, and expose the City to an unfunded liability.
Recommendation
The first reading of this ordinance was held on February 9, 2004. Staff recommends approval of the
second reading of this ordinance.
� �
ORDINANCE NO.
AN ORDINANCE AMENDING FRIDLEY CITY CODE CHAPTER 3, PERSONNEL,
RELATED TO SEVERANCE PAY
The City Council of the City of Fridley hereby finds, after review, examination and
recommendation of staff, that the Fridley City Code, be hereby amended and orda.ins as follows:
FRIDLEY CITY CODE
CHAPTER 3. PERSONNEL
Section 3.05. SEVER.ANCE PAY
Each employee who leaves the City employment for any reason, whether vohmtary or invollmtary, shall be
paid for accn�ed aruival leave days. An employee'�;��a ,�.�� .�° c�.,+o,,.,wo. ,,, 0''4 authorized as re l�full-
time with benefits with forty-eight or more consecutive months of employment and who was hired before
September 1,1978 will receive severance pay in cash based on one and one-half (1 '/z) days for ea�ch twelve
(12) consecutive months worked, but not to exceed tivrly (30) days of same. (Ref. 985)
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
DAY OF FEBRUARY, 2004.
ATTEST:
Debra A. Skogen, City Clerk
First Reading: February 9, 2004
Second Reading: February 23, 2004
Publication:
2
Scott J. Lund, Mayor
�
0
r ! AGENDA ITEM
� CITY COUNCIL MEETING OF
crm oF February 23, 2004
FRIDLEY
To: William W. Burns, City Manage��� i�'
��"
From: John Berg, Fire Chief
Date: February 17, 2004
Re: Second Reading of an Ordinance Amending Chapter 107 of the Fridley City Code
Pertaining to Fire Officers.
An amendment to Fridley City Code, Chapter 107, Section 107.04 requires an amendment due to the
changes in the fire department over the past three years to reflect the current structure of the Fire
Department.
The first reading of this ordinance was held on February 9, 2004. Staff recommends approval and
second reading of the ordinance.
3
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 107. FIRE DEPARTMENT, OF THE
FRIDLEY CITY CODE PERTAINING TO DEPARTMENT OFFICERS
The City Council of the City of Fridley does hereby find and ordain, after review, examination
and staff recommendation that Chapter 107 of the Fridley City Code be hereby amended as
follows:
CHAPTER 107. FIRE DEPARTMENT
107.04. DEPARTMENT OFFICERS
There shall be � T_'°r �*_;� �'�° �'?�� an Assistant Fire Chief who shall assume the responsibilities
and authority of the Fire Chief during the Fire Chiefs absence. �° '-'°�„*�, r�;°� :^ �,^� +��
There sha11 also be a Fire Marshal, who shall serve as the City's designated ' Code
Official as defined bv the Minnesota State Fire Code. The Fire Marshal shall be ._�
responsible for enforcing the City's fire prevention and life safetv codes and ordinances,
:..�#�g�t�3g—t��a�se--a��—e�ig�e�f�°^�� � +:
��eg�s and other duties as assigned bv the Chief. The department is authorized to have
additional officers as deemed necessary for the effective and efficient administration of the
department's services.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
DAY OF FEBRUARY, 2004.
ATTEST:
Debra A. Skogen, City Clerk
First Reading: February 9, 2004
Second Reading: February 23, 2004
Publication:
�
Scott J. Luxid, Mayor
/
�
CRY OF
FRIDLEY
To:
From:
Date:
AGENDA ITEM
CITY COUNCIL MEETING OF
February 23, 2004
William W. Burns, City Managerv �� l�"
�
John Berg, Fire Chief
Februazy 17, 2004
Re: Second Reading of an Ordinance to Repealing Chapter 108 of the Fridley City Code and
Adopting a New Chapter 108 Pertaini.ng to Fire Prevention and Adopting the Minnesota
State Fire Code.
An amendment to Fridley City Code Chapter 108 is required because the Minnesota State Legislature
adopted the International Fire Code with Sta.te Amendments. This amendment would bring the City of
Fridley in conformance with the Minnesota State Fire Code.
In addition language was added to allow fire officials to enforce misdemeanor offences for Deliberate or
Negligent Burning (108.06), Removal Or Tampering With Equipment (108.07), Fires Or Barbecues On
Balconies Or Patios (108.10) and to regulate Fire Apparatus Access Roads (108.11).
The first reading of this ordinance was held on February 9, 2004. StafF recommends approval and
second reading of the ordinance.
��+
ORDINANCE NO.
AN ORDINANCE REPEALING CAAPTER 108. FIRE PREVENTION, AND ADOPTING A
NEW CHAPTER 108. FIRE PREVENTION, OF THE FRIDLEY CITY CODE PROVIDING FOR
THE ADOPTION OF THE NIINNESOTA STATE FIRE CODE
The City Council of the City of Fridley does hereby find and ordain, after review, examination and staff
recommendation that Chapter 108 of the Fridley City Code be hereby amended as follows:
Section I:
That Chapter 108. Fire Prevention of the Fridley City Code be hereby repealed in its entirety.
Section II:
That Chapter 108. Fire Prevention of the Fridley City Code be hereby adopted so that the City of Fridley
is in conformance with the Minnesota State Fire Code as follows:
CHAPTER 108. FIRE PREVENTION
108.01. ADOPTION OF NIINNESOTA STATE FIItE CODE
Minnesota State Fire Code Adopted. The 2003 Minnesota State Fire Code, as adopted pursuant to
Minnesota. Statutes 299F.01 l, hereinafter referred to as MSFC, is hereby adopted as the Fire Code for the
City of Fridley. The provisions of the 2003 Minnesota State Fire Code, appendices E, F, and G thereto,
the Intemational Fire Code published by the Tnternational Code Council, Inc. (Falls Church, Virginia
1999) and any and all amendments and changes thereto adopted by the Minnesota Commissioner of the
Department of Public Safety, Fire Mazshal Division, Chapter 7510, except as modified or amended by
this Article, are hereby adopted by reference and incorporated as a part of this code.
108.02. REQiTIItED PERMITS, FEES and USER SURCAARGES
1. Fire Department User Surcharge. A surchazge equal to .1% (1/10%) of the project valuation of
each building permit issued shall be collected at the time a building permit is issued.
2. Permit Required Prior To Initiation of Activity. Applicants seeking a permit as specified by
provision of the MSFC or this code, shall be in receipt of said permit prior to commencement of the
regnlated activity, construction, installation, modi5cation, maintenance, operation or process
granted by said permit.
3. Required Construction Permits. Fire Department permits required by MSFC provision or this
code shall be issued by the code official for the construction or modification of the following systems
under the conditions as stated herein or in the MSFC:
A. AUTOMATIC FIRE-EXTINGUISHING SYSTEMS
Installation or modification to an automatic fire-extinguishing system.
B. COMPRESSED GASES
Installation, repair damage to, abandon, remove, place temporarily out of service, close or
substantially modify a compressed gas system.
0
Ordinance No.
Page 2
C. FIRE ALARM AND DETECTION SYSTEMS AND RELATED EQUIPMENT
Installation of or modification to fire alarm and detection systems and related equipment
D. FIRE PI.J1v�S AND RELATED EQiJIPMENT
Installation of or modification to fire pumps and related fuel tanks, jockey pumps, controllers
and generators.
E. FLAMMABLE AND COMBUSTIBLE LIQUIDS
To repair or modify a pipeline for the transportation of flammable or combustible liquids; to
install, construct or alter tank vehicles, equipment, tanks, plants, terminals, wells, fuel-
dispensing stations, refineries, distilleries and similar facilities where flammable and
combustible liquids are produced, processed, transported, stored, dispensed or used; to install
alter, remove, abandon, place temporarily out of service or otherwise dispose of a flammable
or combustible liquid tank.
F. HAZARDOUS MATERIALS
To install, repair damage to, abandon, remove, place temporarily out of service, close or
substantially modify a storage facility or other area regulated by MSFC Chapter 27 and
MSFC Table 105.6.21.
G. 1NDUSTRIAL OVENS
To install industrial ovens covered by MSFC Chapter 21.
H. LP GAS SYSTEM
Installation or modification of an LP - gas system.
I. PRIVAT'E FIRE HYDRANTS
Installation or modification of private fire hydrants.
J. SPRAYING OR DIPPING
To install or modify a spray room, dip tank or booth.
K. STANDPIPE SYSTEMS
Installation, modification or removal from service of a standpipe system.
L. TEMPORARY MEMBRANE STRUCTURES, TENTS AND CANOPIES
Erection of an air-supported temporary membrane or tent having an area in excess of 200 ftz
or a canopy in excess of 400 ftz.
4. Commence of Work Prior to Issuance of a Construction Permit. If work for which a permit is
required by Section 108.02.3 has been commenced without first obtaining the required permit, a special
investigation shall be made before a permit may be issued for the work. The investigation fee shall be
equal to the permit fee for the permitted activity and shall be collected in addition to the required permit
fee.
5. Operational Permits. An operational permit shall be required for specific operations or businesses
in the City of Fridley as set forth in MSFC Sections 105.6.1 through 105.6.46 or within this code.
7
Ordinance No.
Page 3
6. Permit Fees. Wherein permits are required by the MSFC or other provision of this code, the
Code Official shall collect fees in accordance with the schedule set forth in Chapter 11 of the City Code
of Fridley. Permit fees shall be paid prior to the issuance of any permit. Fees shall be reviewed annually
to insure proper charges for services rendered.
7. Permit To Remain On Premise. Issued permits shall be kept on the premises designated
therein at all times and shall be readily available for inspection by the Code Official.
108.03. FIItE EXTINGUISHERS
1. All required fire extinguishers shall be selected, installed and maintained in accordance with
MSFC Section 906 and National Fire Protection Association (NFPA) Standard 10, Standard for Portable
Fire Extinguishers, 1998 Edition.
2. The recharging and certification of fire extinguishers shall be accomplished by persons who are
skilled and competent in such work, including certified firms or individuals who are actively engaged in
the business of fire extinguisher servicing.
108.04. FIRE LANES
l. The Code Official shall be empowered to order the establishment of fire lanes on public or private
property in accordance with the MSFC. When such fire lane is established on public properiy or a public
right of way, the necessary sign or signs shall be provided by the City of Fridley, and when on private
property, the required signage shall be erected and maintained by the owner at his/her expense.
Following installation of fire lane signs, no person shall park a vehicle or otherwise occupy or obstruct a
fire lane.
2. Fire Lane Sign Specifications
A. Fire lane signs shall have a minimum dimensions of 12" wide by 18" high and shall contain
the legend "NO PARKING - FIRE LANE" in red letters on a white, reflective background.
B. Signs shall be posted at each end of the fire lane and every 75 foot interval within the fire
lane.
C. Safety islands under 75 feet in length shall have one fire lane sign centered in the island.
Safety islands over 75 feet in length shall have signs posted at each end of the island and
every 75 foot interval within the fire lane. Safety islands that are odd shaped may require
additional signage as approved by the Code Of�icial.
D. Curbs shall be painted yellow and maintained along fire lanes at mercantile, educational,
institutional and commercial residential (hotels, motels and apartments) occupancies and in
other specific areas as designated by the Code OfficiaL
E. Sign posts shall be set back a minimum of 12 inches but not more than 60 inches (five feet)
from the curb.
F. A Fire Lane, as approved by the Code Official, shall be required in front of every sprinkler
system Fire Department connection allowing unobstructed connection of hose(s) for
firefighting purposes.
�
Ordinance No.
108.05. FIRE ALARM AND DETECTION SYSTEMS
Page 4
Fire alarm and detection systems shall be required in occupancies as specified in the MSFC and this code.
All fire alarm and detection systems shall be installed and maintained in accordance with National Fire
Protection Association (NFPA) Standard 72, National Fire Alarm Code, 1998 Edition and the MSFC.
1. Local Protective Alarms in Multiple Family Residential Buildings. Group R2 apartment
buildings and condominiums located in the City of Fridley having more than four (4) dwelling units and
less than seventeen (17) dwelling units or having three (3) stories in height shall be equipped with a local
protective system installed and maintained in accordance with National Fire Protection Association
(NFPA) Standard 72, National Fire Alarm Code, 1998 Edition.
2. Notification Required. Where a fire detection, alarm or extinguishing system required by this
Code or the MSFC is out of service for any reason, the fire deparlment shall be not�ed immediately.
Notification of the fire department through its dispatch center, Anoka County Central Communications,
shall be construed as proper notification.
108.06. DELIBERATE OR NEGLIGENT BURNING
It shall be unlawful for any person to deliberately or through negligence set fire to or cause the burning of
combustible material in such a manner as to endanger the safety of persons or property.
108.07. REMOVAL OR TAMPERING WITH EQUIPMENT
1 It shall be unlawful for any unauthorized person to remove, tamper with or otherwise disturb any %re
hydrant, sprinkler system Fire Departrnent connection, fire detection and alann system, fire suppression system,
or other fire appliance required by this code or the MSFC.
2. No person shall render a system or device inoperative during an emergency unless by direction of the Fire
Chief or fire department ofFicial in charge of the incident.
108.08. REMOVAL OF OR TAMPERING WITH APPURTENANCES
Locks, gates, doors, barricades, chains, enclosures, signs, tags, notices or seals which have been installed by or at
the direction of Code Official shall not be removed, unlocked, destroyed, tampered with or otherwise vandalized
in any manner.
108.09. OBSTRUCTION OF EGRESS
No person shall physically obstruct or otherwise prevent the use by any other person of an egress device required
by this code or the MSFC.
108.10 FIRES OR BARBECUES ON BALCOI�TIES OR PATIOS
1. Open Flame Prohibited. In any structure containing three or more dwelling units, no person shall kindle,
maintain, or cause any fire or open flame on any balcony above ground level, or on any ground floor patio within
fifteen (15) feet of the structure.
0
Ordinance No. Page 5
2. Fuel Storage Prohibited. No person shall store or use any fuel, barbecue, torch, or other similar device in
the locations designated in Section 1.
Ezception: Listed electric or gas-fired barbecue grills that are permanently mounted and wired or
plumbed to the building's gas supply or electrical system and that maintain a minimum
clearance of 18 inches on all sides, unless listed for lesser clearances, may be installed on
balconies and patios when approved by the Code O�cial.
108.11. FIRE APPARATUS ACCESS ROADS
1. Access and Loading. Facilities, buildings or portions of buildings hereafter constructed shall be
accessible to fire department apparatus by way of an approved fire apparatus access road with an asphalt, concrete
or other approved driving surface capable of supporting the imposed ]oad of fire apparatus weighing at least
50,000 pounds.
2. Turning Radius. The minimum turning radii shall be determined by the Code O�cial but in no case shall
be less than twenty eight (28) feet.
3. Fire Apparatus Road Gates. Gates securing the fire apparatus access roads shall comply with all of the
following criteria:
A. The minimum gate width shall be twenty (20) feet.
B. Gates shall be of the swinging or sliding type.
C. Construction of gates shall be of materials that allow manual operation by one person.
D. Gate components shall be maintained in an operative condition at all times and replaced or repaired
when defective.
E. Electric gates shall be equipped with a means of opening the gate by fire department personnel for
emergency access. Emergency opening devices shall be approved by the Code Official.
F. Manual opening gates shall not be locked with a padlock or chain and padlock unless they are capable
of being opened by means of forcible entry tools.
G. Locking device specifications shall be submitted for approval by the Code Official.
4. Access Road Remoteness. Where two access roads are required, they shall be placed a distance apart
equal to not less than one half of the length of the maximum overall diagonal dimension of the property or area to
be served, measured in a straight line between accesses.
5. Aerial Fire Appara.tus Access Roads
A. Buildings or portions of buildings or facilities thirty (30) feet in height above the lowest level of fire _
department vehicle access shall be provided with approved fire apparatus access roads capable of
accommodating fire department aerial apparatus. Overhead utility and power lines shall not be
located within the aerial fire apparatus access roadway.
B. Fire apparatus access roads shall have a minimum unobstructed width of twenty-six (26) feet in the
immediate vicinity of any building or portion of building more than thirty (30) feet in height.
10
Ordinance No.
Page 6
C. At least one of the required access routes meeting this condition shall be located within a minimum of
ffteen (15) feet and a maximum of thirty (30) feet from the building, and shall be positioned parallel
to one entire side of the building.
6. Turnarounds Required. Dead-end fire appara.tus access roads in excess of 150 feet shall be provided with
width and turnaround provisions approved by the Code Official.
108.12 VIOLATION PENALTIES.
A person who violates a provision of this code shall be guilty of a misdemeanor.
PASSED AND ADOPTED BY 'TI� CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY
OF 200_.
ATTEST:
Debra A. Skogen, City Clerk
First Reading: February 9, 2004
Second Reading: February 23, 2004
Publication:
11
Scott J. Lund, Mayor
CITY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF
February 23, 2004
To: William W. Burns, City Manager ���
��
From: John Berg, Fire Chief
Ra1ph Messer, Fire Marshall
Lynne Tellers, Police Captain
Date: February 17, 2004
Re: Second Reading of an Ordinance Establishing a New Chapter of the Fridley City Code
related to Clandestine Drug Lab and Chemical Dump Sites
At the request of Anoka County Health Department Officials the Police and Fire Department developed
an ordinance that would assist agencies in protecting the public from the chemical contamination
associated with clandestine drug lab and chemical dump sites. The ordinance also gives local officials
the ability to enforce the clean up and costs associated with the clean up of these sites.
The first reading of this ordinance was held on February 9, 2004. Staff recommends approval and
second reading of the ordinance.
12
ORDINANCE NO.
AN ORDINANCE ESTABLISHING A NEW CHAPTER OF THE FRIDLEY CITY
CODE PERTAINING TO CLANDESTINE DRUG LAB AND CHENIICAL DUMP SITES
The City Council of the City of Fridley hereby finds, after review, examina.tion and
recommendation of staff, that the Fridley City Code, be hereby amended and ordains as follows:
FRIDLEY CITY CODE
CHAPTER 130. CLANDESTINE DRUG LAB AND CHEMICAL DUMP SITES
130.01. General Provisions.
1. Purpose and Intent. The purpose of this Ordinance is to reduce public exposure to health
risks where law enforcement officers or fire officials have determined that hazardous chemicals
from a suspected clandestine drug lab site or associated dump site may exist. The City Council
finds that such sites may contain suspected chemicals and residues that place people,
particularly children or adults of child bearing age, at risk when exposed through inhabiting or
visiting the site, now and in the future.
Based upon professional reports, assessments, testing and investigations, the City Council finds
that such hazardous chemicals can condense, penetrate, and contaminate on the land, surfaces,
furnishings, buildings, and equipment in or near structures or other locations where such sites
exist. The Council fmds that these conditions present health and safety risks to residents,
occupants and visitors through fire, explosion, skin and respiratory exposure and related
dangers. The Council furtlier finds that such sites present health and safety risks to occupied
residences, buildings and structures and to the general housing stock of the community.
2. Interpretation and Application. In their interpretation and application, the provisions of
this Ordinance shall be construed to protect the public health, safety and welfare.
Where the conditions imposed by any provision of this Ordinance are either more or less
restrictive than comparable provisions imposed by any other law, ordinance, statute, or
regulation of any kind, the regulations which aze more restrictive or which impose higher
standazds or requirements shall prevail.
Should any court of competent jurisdiction declare any section or subpart of this Ordinance to
be invalid, such decision shall not affect the validity of the Ordinance as a whole or any part
thereof, other than the provision declared invalid.
3. Fees. Fees for the administration of this Ordinance may be established and amended
periodically by ordinance of the City Council.
4. Definitions. For the purpose of this Ordinance, the following terms or words shall be
interpreted as follows:
13
Ordinance No.
A. Buildin� Official shall mean the City of Fridley's Chief Building Official or
his/her designee.
B. Child shall mean any person less than 18 years of age.
C. Chemical dumpsite sha11 mean any place or azea where chemicals or other waste
materials used in a clandestine drug lab has been located.
D. Citv shall mean the City of Fridley.
E. Clandestine dru� lab shall mean the unlawful manufacture or attempt to
manufacture controlled substances.
F. Clandestine drug lab site sha11 mean any place or area where law enforcement or -
fire o�cials have determined that conditions associated with the operation of an
unlawful clandestine drug lab exist. A clandestine drug lab site may include _
motor vehicles, trailers, boats or other movable property, dwellings, accessory
buildings, accessory structures, commercial structures, multi- family structures,
a chemical dump site or any land.
G. Controlled substance shall mean a drug, substance or immediate precursor in
Schedules I through V of Minn. Stat. § 152.02. The term sha11 not include
distilled spirits, wine, malt beverages, intoxicating liquors or tobacco.
H. Environmental testing and cleanin� firm or contractor shall mean a business or
individual with established competence as designated by the State of Minnesota
Department of Health specific to the environmental task being performed.
I. Fire Marshal shall mean the City of Fridley's Fire Marshal or his/her designee.
J. Hazardous wastes shall mean waste generated, including equipment, from a
clandestine drug lab. Such wastes shall be treated, stored, transported or
disposed of in a manner consistent with the Minnesota Department of Health,
Minnesota Pollution Control, and Anoka County Health Department rules and
regulations.
K. Manufacture, in places other than a pharmacy, shall mean and include the
production, cultivation, quality control, and standardization, by mechanical,
physical, chemical or pharmaceutical means, packing, repacking, tableting,
encapsulating, labeling, relabeling, filling, or by other process, of drugs.
L. Minnesota Department of Health g�idelines shall mean the most current version
of standards or guidelines, including but not limited to "Clandestine Drug Labs
General Cleanup Guidelines, as promulgated by the Sta.te of Minnesota
Department of Health for the testing or remediation of clandestine drug lab or
chemical dump sites; and which standards or guidelines are hereby incorporated
by reference and made a part of this Ordinance.
M. Owner sha11 mean any person, firm or corporation who owns, in whole or in
part, the land, buildings, structures, motor vehicles, trailers, boats or other _
movable property associated with a clandestine drug lab site or chemical
dumpsite.
N. Public health nuisance. All dwellings, accessory structures and buildings or �
adjacent property associated with a clandestine drug lab site are potentially
unsafe due to health hazards and are considered a public health nuisance
pursuant to Minn. Stat. §463.15, et seq.; § 412.221, et seq.; and 145A.01, et seq.
14
Ordinance No.
130.02. Administration.
1. Law Enforcement or Fire Department Notice to Other Authorities. Law enforcement
authorities or Fire Department officials that identify conditions associated with a clandestine
drug lab site or chemical dump site that places neighbors, visiting public, or present and future
occupants of the site at risk for exposure to harmful contaminants and other associated
conditions, must promptly notify the appropriate municipal, child protection, and public health
authorities of the properiy location, property owner if known, and conditions found.
2. Declaration of Propert�as a Public Health Nuisance. If law enforcement or fire officials
determine the existence of a clandestine drug lab site or chemical dumpsite, the property shall
be declared a public health nuisance.
3. Notice of Public Health Nuisance to Concerned Parties. Upon notification by law
enforcement or Fire Department authorities, the Building Official or Fire Marshal shall
promptly issue a Declaration of Public Health Nuisance for the affected property and post a
copy of the Declaration at all entrances to the dwelling, property or site. The Building Official
or Fire Marshal issuing said Declaration shall also notify the owner of the property by mail and
notify the following parties:
A. Occupants of the property;
B. Neighbors at potential risk;
C. The Fridley Police Department, Fridley Fire Department, Anoka County
Community Health and Environmental Services; and
D. Other staxe and local authorities, such as Minnesota Pollution Control Agency
(MPCA) and Minnesota Department of Health, which are known to have public and
environmental protection responsibilities that are applicable to the situation.
E. The Building O�cia1 or Fire Marshal issuing said Declaration may notify any
financial institution with an interest of record of the Declazation of Public Health
Nuisance and shall notify such financial institution should the property owner fail to
arrange for timely and appropriate assessment and clean up.
F. The Building Official or Fire Marshal issuing said Declaration may notify the
insurance company with a policy known to be applicable to the subject property and
shall notify such insurance company should the property owner fail to arrange for
timely and appropriate assessment and clean up.
G. The Building Official or Fire Marshal issuing said Declaration may cause a certified
copy of the Declaration of Public Heath Nuisance to be filed with the Office of the
Anoka County Recorder or Registraz of Titles. Upon abatement of the nuisance as
required herein, the Building Official or Fire Marshal issuing said Declaration shall
cause a notice of successful abatement or removal of Declaration of Public Health
Nuisance to be so recorded.
15
Ordinance No.
4. Propertv Owner's Responsibility to Act - Order for Abatement. The Building Official or
Fire Marshal shall also issue an order to the owner to abate the public health nuisance, including
the following:
A. That the owner, tenant, occupants or other persons in possession of the premises
shall immediately vacate those portions of the property, including building and
structure interiors, or dump site, which may place such persons at risk. No person
sha11 reside in or occupy any premises or property subject to an order for abatement
until such time as the Building Official or Fire Marshal has determined that the
contamination has been reduced to an acceptable level and that the cleaning was
conducted in accordance with Minnesota Department of Health guidelines.
B. Promptly contract with appropriate environmental testing and cleaning firms to
conduct an on-site assessment, complete clean-up and remediation testing and follow-
up testing, and determine that the property risks are sufficiently reduced in
accordance with Minnesota Department of Health guidelines. T'he property owner
shall notify the City of actions taken and reach an agreement with the City on the
clean-up schedule. The City shall consider practical limitations and the availability of
environmental or other contractors in approving the schedule for clean-up.
C. Provide written documentation of the clean-up process, including a signed, written
statement that the contamination has been reduced to an acceptable level and that the
clean-up was conducted in accordance with Minnesota Department of Health
guidelines.
5. Property Owner's Resuonsibilitv for Costs. The property owner sha11 be responsible for
all costs of assessment, testing, abatement or clean-up of the site, including contractor's fees and
public costs for services that were performed in association with a clandestine drug lab site or
chemical dump site clean-up. The Building Official or Fire Marshal sha11 prepare and provide to
the property owner a Statement of Itemized Public Costs which sha11 be due and payable upon
receipt. Public costs may include, but are not limited to:
1.) Posting of the site;
2.) Notification of affected parties;
3.) Expenses related to the recovery of costs, including the assessment process;
4.) Laboratory fees;
5.) Clean-up services, including septic systems;
6.) Administrative fees; _
7.) Emergency response costs;
8.) Other associated costs; and
9.) Any legal costs including attorney fees related to the nuisance abatement. �
�
Ordinance No.
6. Recovery of Public Costs
A. If, after service of notification of the Declazation of Public Health Nuisance, the
property owner fails to arrange appropriate assessment and clean-up, the
Building Official or Fire Marshal is authorized to proceed in a prompt manner to
initiate the on-site assessment and clean-up.
B. If the City is unable to locate the property owner within ten (10) days of the
Declaration of Public Health Nuisance, the City is authorized to proceed in a
prompt manner to initiate the on-site assessment and clean-up.
C. The City may abate the nuisance by removing the hazardous structure or
building, or otherwise, according to Minnesota Statutes Chapter 463. In cases
involving motor vehicles, trailers, boats or other movable property, the City may
abate the nuisance by disposal of the property.
D. If the City abates the public health nuisance, or otherwise incurs public costs, in
addition to any other legal remedy, the City sha11 be entitled to recover a11 public
costs. The City may recover costs by civil action against the person or persons
who own the property or by assessing such costs as a special t� against the
property in the manner as taxes and special assessments are certified and
collected pursuant to Minn. Stat. § 429.101.
E. Nothing herein shall limit the authority of the City to enforce this ordinance or
seek any other legal remedy to abate the nuisance through declaratory action,
injunction, nuisance declaration or otherwise.
7. Authoritv to Modifv or Remove Declaration of Public Health Nuisance.
A. The Building Official or Fire Mazshal is authorized to modify the Declaration
conditions or remove the Declaration of Public Health Nuisance.
B. Such modifications or removal of the Declaration sha11 only occur after
docuxnentation from a qualified environmental or cleaning firrn sta.ting that the
health and safety risks, including those to neighbors and potential dwelling
occupants, are sufficiently abated or corrected in accordance with Minnesota
Department of Health guidelines.
130.03. City Council Review.
The owner of the property or any party with a legal interest in the property who has been issued
a Declaration of Public Health Nuisance, an Order for Abatement, or a Statement of Public
Costs may appeal the Declazation of Public Health Nuisance, the Order for Abatement or the
Sta.tement of Public Costs to the City Council. The appeal shall be in writing filed with the City
Clerk and Anoka County Community Health and Environmental Services, specifying the
grounds for the appeal and the relief requested The appeal must be filed within ten days of the
17
Ordinance No.
issuance of the item from which appeal is taken. The City Council shall hear the appeal at the
next available City Council meeting. Upon review, the City Council may affirm, modify or
reverse the action taken. The filing of an appeal shall suspend the terms of the Declaration of
Public Health Nuisance, Order for Abatement, or Statement of Public Costs, whichever is
applicable. However, in the instance of an appeal from an Order for Abatement, the appeal shall
not suspend that part of the order prohibiting occupancy of the property.
130.04. Violations and Penalties.
Any person violating any provision of this Article is guilty of a misdemeanor and upon conviction shall
be subject to the penalties set forth in Minn. Stat. § 609.02, Subd. 3.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
DAY OF FEBRUARY, 2004.
ATTEST
Debra Skogen, City Clerk
First Reading: February 9, 2004
Second Reading: February 23, 2004
Publication:
18
Scott J. Lund, Mayor
�
�
CITY OF
FRIDLEY
To:
From:
Date:
Re:
AGENDA ITEM
CITY COUNCIL MEETING OF
February 23, 2004
William W. Burns, City Manager ,;� �'�
�
John Berg, Fire Chief
Richard D. Pribyl, Finance Director
February 17, 2004
Second Reading of an Ordinance Establishing a New Chapter of the Fridley City Code
Related to Setting Administrative Charges for Emergency Response Calls
During the discussion of the fee study this past year and with the cuts in Local Government Aid it
became apparent that cities had the ability of charging for emergency services under Minnesota Statutes
415.01, pertaining to town laws. New legislation, effective August 1, 2003, gave cities express authority
to charge for emergency services if they adopted an ordinance authorizing the manner and amount of
chazging for those services under the same state laws that towns are authorized to use.
The new legislation does not establish any limit on what cities can charge, however, charges for
emergency services should be reasonably related to the city's cost of providing the service. At this time
the Fire Department is proposing to esta.blish user service fees for emergency response calls for vehicle
accidents and vehicle fires. The proposed fees are similar to fees charged by the Spring Lake Park,
Blaine, Moundsview Fire Department and Edina Fire Department. Similar fees are being proposed by
other fire departments in the Metro including the St. Louis Park and Brooklyn Park Fire Departments.
The Incident Invoice Schedule is similaz to other Metro fire departments and the DNR Schedule.
The first reading of this ordinance was held on February 9, 2004. Staff recommends approval and
second reading of the ordinance.
19
ORDINANCE NO.
AN ORDINANCE ESTABLISHING A NEW CHAPTER OF THE FRIDLEY CITY
CODE SETTING SERVICE CHARGES FOR EMERGENCY RESPONSE CALLS
The City Council of the City of Fridley hereby fmds, after review, examination and
recommendation of staff, that the Fridley City Code, be hereby amended and ordains as follows:
FRIDLEY CITY CODE
CHAPTER 131. FIRE DEPARTMENT SERVICE CHARGES
131.01 PURPOSE AND INTENT
The purpose of this ordinance is to establish user service charges for Fire Department services as
described in this ordinance.
131.02 Definitions
The following terms shall apply in the interpretation and application of this chapter:
1. "Motor vehicle" means any self-propelled vehicle designed and originally manufactured
to operate primarily upon public roads and highways, and not operated exclusively upon railroad
tracks. It includes any vehicle propelled or drawn by a self-propelled vehicle. This includes semi
trailers. It does not include snowmobiles, manufactured homes, a11 terrain vehicles or park
trailers.
2. "Motor Vehicle Owner" means any person, firm, association, or corporation owning or
renting a motor vehicle, or having the exclusive use thereof, under a lease or otherwise, for a
period of greater than 30 days.
3. "Excavator" means a person who conducts excavation.
4. "Underground Pipeline Utility" means an underground line, facility, system, and its
appurtenances used to produce, store, convey, transmit, or distribute gas, oil, petroleum products,
and other similaz substances.
5. "Person" means the state, a public agency, a local governmental unit, an individual,
corporation, partnership, association, or other business or public entity or a trustee, receiver,
assignee, or personal representative of any of them.
131.03 CONFLICTS
In the event of any conflict between the provisions of this Code adopted by the provisions of this
Chapter and applicable provisions of State law, rules or regulations, the latter sha11 prevail.
�
Ordinance No.
131.04 EMERGENCY RESPONSE SERVICE CHARGES
1. The collection service charges shall be as authorized in Minnesota Sta.tute 366.011.
2. Collection of unpaid service charges shall be as authorized in Minnesota Statute 366.012.
3. The service charges shall be as follows:
A. Vehicle Accident
1) Any incident response to an accident involving a motor vehicle where the
Fire Department is able to render aid, provide assistance, or otherwise
improve the conditions of the patients. This would include but not be
limited to:
• Extrication
• Medical Care
• Absorbing Liquid Spills
• Vehicle System Safety
• Vehicle Stabiliza.tion
2) An invoice for $400 will be sent to the motor vehicle owner's insurance
company or, in the event the owner cannot provide insurance information,
to the motor vehicle owner.
3) If there is more than one motor vehicle involved in the accident each
motor vehicle insurer or owner will be invoiced an equal share of the $400
service charge.
B. Vehicle Fire
1.) Any incident response to a vehicle fire for the purpose of extinguishing a
fire or fire investigation. This does not include responses to steam
mistaken for smoke or other responses to a reported vehicle fire where no
fire is found.
2.) An invoice for $400 will be sent to the motor vehicle owner's insurance
company or, in the event the owner cannot provide insurance information,
to the motor vehicle owner.
C. Fires Along a Railroad R.ight of Way or Operating Property
1.) Any incident response to a fire or fire hazard emergency caused by a
raikoad locomotive, rolling stock, or employees on a raikoad right-of-way
or operating property as defined in Minnesota Statute 219.761.
2.) An invoice will be sent to the raikoad responsible for the railroad right-of-
way or operating property. The invoice amount will follow the Incident
Invoice Schedule based on the number of hours on the incident.
21
Ordinance No.
D. Grass Fires Within Trunk Highway Right-of-way
1) Any incident response to a grass fire within the right-of-way of a trunk
highway or outside of the right-of way of a trunk highway if the fire
originated within the right-of-way of a trunk highway as defined in
Minnesota Statute 161.465.
2) An invoice will be sent to the comxnissioner of transportation. The invoice _
amount will follow the Incident Invoice Schedule based on the number of
hours on the incident.
E. Technical Rescue
1) Any incident response to a rescue on the water, ice, confined space,
trench, high or low level where specialized equipment and trauung are
required and where the Fire Department is able to render aid, provide
assistance, or otherwise improve the conditions of the persons in need of
rescue.
2) An invoice will be sent to the persons, corporation or business owner
receiving rescue service. The invoice amount will follow the Incident
Invoice Schedule based on the number of hours on the incident.
F. Underground Pipeline Utility Breaks
1) Any incident response to an underground pipeline utility break if caused
by an excavator or person other than a homeowner or resident.
2) An invoice will be sent to the excavator or person responsible for the
pipeline utility break. The invoice amount will follow the Incident Invoice
Schedule based on the number of hours on the incident.
G. Hazardous Material
Any incident response to the release of hazardous material from it's
container, or the threat of a release of a hazardous material from it's
container, chemical reaction, or other potential emergency as the result of
a hazardous material where the Fire Deparhnent is able to render aid,
provide assistance, or otherwise improve the conditions or protect the
public.
2. An invoice will be sent to the person responsible for the hazardous
material or transportation of the hazardous material. The invoice amount
will follow the Incident Invoice Schedule based on the number of hours on
the incident, specialized equipment and materials used on the incident.
22
Ordinance No.
H. Fire as the Result of Negligence
1) Any incident response to a fire that resulted from an act of negligence as
defined in City Ordinance Chapter 108.06. Examples of this would include
but not be limited to methamphetamine labs, commercial and industrial
operations where hot work is performed and reasonable care is not
exercised, and burning of debris by contractors or homeowners that results
in subsequent fires to wild land or structures.
2) An invoice will be sent to the person responsible for the negligent fire.
The invoice amount will follow the Incident Invoice Schedule based on
the number of hours on the incident:
Arson Fire — Any incident response to a fire where a person is charged under the
arson statutes.
The fire investigator responsible for the incident investigation will forward all
costs encumbered by the Fire Department in association with the incident to the
court for reimbursement through restitution.
131.05 INCIDENT INVOICE SCHEDULE
PASSED AND ADOPTED BY THE FRIDLEY CITY COUNCIL THIS DAY OF
2004.
ATTEST:
Debra A. Skogen, City Clerk
First Reading: February 9, 2004
Second Reading: February 23, 2004
Publication:
23
Scott J. Lund, Mayor
r
�
cmr aF
FRIDLEY
TO:
FROM:
SUBJECT:
AGENDA ITEM
CITY COUNCIL MEETING OF
February 23, 2004
WILLIAM W. BURNS, CITY MANAGER
RICHARD D. PRIBYL, FINANCE DIRECTOR
AMENDMENT TO FRIDLEY CITY CODE CHAPTER 11, FEES
DATE:February 19, 2004
During the year 2003, a fee study was completed as part of the budget work for the 2004
Budget. As a result of the study, we have seen a number of areas in which the service
being provided was not recovering the cost of the delivered service. Staff reviewed each
of the services and made determinations on whether the City had both the legal authority
and the need to raise those fees that were not recovering cost. Each of the changes that
are being made to Chapter 11, have been incorporated into the 2004 Budget. It is
estimated that the total impact of the new revenues associated with these increases
would amount to $98,894.00. These changes have been reviewed during a conference
session with Council last year.
You will note that there are substantial changes to the fees associated with permits in the
fire protection area. This is a result of the requirement to adopt the International Fire
Code and all of the changes associated in moving from the Uniform Fire Code (UFC) to
the Intemational Fire Code (IFC).
Staff recommends the first reading of this ordinance.
RDP/me
Attachment(s)
24
Ordinance No.
Page 2
ORDINANCE NO.
AN ORDINANCE AMENDING FRIDLEY CITY CODE CHAPTER 11. FEES
The City Council of the City of Fridley does hereby find and ordain, after review, examination
and staff recommendation that Chapter 11 of the Fridley City Code be hereby amended and
ordain as follows:
FRIDLEY CITY CODE
CHAPTER 11. GENERAL PROVISIONS AND FEES
11.10. FEES
License and permit fees shall be as follows;
CODE SUBJECT
17 Auction
27 Billiazds
15 Bowling Alleys
28 Carnivals
30 Charitable Gambling
(See Lawful Gambling)
21 Christmas Tree Lots
12
. 206
217a
Cigarette Sales (see Tobacco)
Contractors
Conversion Condominium
(one time fee)
25
FEE
$30.00 for 2 days, $30.00 weekly,
$150 year
$40.00 for first table,
$10.00 each additional
$40.00 + $10.00/lane
$200 deposit, $75 application fee,
and $75.00 for first day;
$75 each additional day
$200.00 + $100.00 deposit
See Chapter 206
(a) 2 Ownership.Units $ 500
(b) 3-7 Ownership Units $ 750
(c) B-12 Ownership Units $1,000
(d) Over 12 Units $1,000
plus $50 per unit for
Ordinance No.
217b Condominium (annual fee)
208 Conservation Plan Review (as part
of building permit for new construction)
208 Conservation Plan Review
as part of land alteration,
excavating, or grading permit process)
101 Dogs
Page 3
every unit over 12
(a) 2-4 Ownership Units $ 20
(b) 5-12 Ownership Units $ 30
(c) 13-24 Ownership Units $ 40
(d) Over 24 Ownership Units $ 50
$450.00
See Chapter 206
$5.00 .
$10.00 �8A-Duplicate���a�e�-
�A9
$25.00 Kennel
702 Drive-in Theaters $400.00
607 Entertainment $85.00
112 False Alarms $50.00 for sixth false alarm in
single calendar year and for each
subsequent false alann in calendar
year, an additional$25.00 (e.g.,
7th false alarm =$75.00, 8th false
alarm - $100.00, 9th false alann
$125.00, etc.).
�Q �:..e n i,,...,., r.,,,+.,i�.,�;e.. Q��v
103 Fire Arms
T���: , Q i n nn
Permit to Discharge $25.00
32 Food Establishments $45.00* � ��*°a *� -�
(Business License) ��' Q� � nn
32 Food, Temporary $30.00
(Business License)
30 Gambling (See Lawful Gambling)
26
�
Ordinance No.
25 Golf Course, Driving Range
26 Hotels, Motels
202 House Trailers -Temp offices
24 Junk Yards
30 Lawful Gambling Permit
603 Liquor, Lawful Gambling
Endorsement
603 Liquor (On-Sale)
No Entertainment
Entertainment and or Dancing
Investigation Fee
603
603
�1ilra
603
603
605*
Liquor (Sunday)
Liquor, Temp. Intox. On-Sale
(1 day only)
Liquor, Non-Intox. Malt:
Off Sale Beer
On Sale Beer
On Sale Temporary Beer
Investigation Fee, initial
On Sale Beer
Liquor (Wine)
Investigation Fee, initial
Liquor (Employee Dispensing)
(See Managerial License)
Liquor (Bottle Club)
F�
Page 4
$30.00
$125.00 first unit;
$5.00 each additional
$30.00 temporary pazking
$75.00 occupancy
$350.00
$25.00 for one day small events,
i.e. raffle, etc.
$300.00
0-3000 sq.ft. 3001-6000 sq.ft
over 6000 sq.ft.
$6,000 * $7,000 *
$8,000 *
$7,000 * $8,000 *
$9,000 *
$200.00 individual, $400.00 corp.
partnership, etc.
$200.00*
$25.00* (MI�T §340A.414, Sub.9)
$60.00*
$325.00* (includes off sale)
$60.00
$90.00 individual, $180.00 corp.
partnership, etc.
$1,000.00
$200.00 individual, $400.00 corp.
partnership, etc.
$300.00 Annual permit
$25.00 One day permit
Ordinance No.
Page 5
606* Liquor (On-Sale Club) $300.00/club, under 200 members
(The annual license fee $500.00/club, 201-500 members
for an on-sale intox- $650.00/club, 501-1,000 members
icating liquor license $800.00/club, 1,001-2,000 members
issued by a city to a $1,00O.00/club, 2,001-4,000
club must be no greater than:) members
$2,000.00/club, 4,001-6,000 members
$3,000.00/club, over 6,000 members
*CHECK CURRENT STATE STATUTE, CHAPTER 340A, FOR ANY CHANGES IN STATE
FEE SCHEDULE (CURRENT FEE SCHEDULE FROM 1990 STATE STATUTE)
101 Livestock
608 Lodging Tax
603 Managerial License
203
509
Mobile Home Parks
Motorized Vehicles Rental
18 Motor Vehicle Body Repair
Business
Investigation Fee
Renewal, Transfer, or
Amendment Fee
Joint Application as
Junkyard
Joint Application as Used
Motor Vehicle Dealer
Joint Application as Used
Motor Vehicle Dealer
and Junkyard
Joint Application Renewal,
Transfer, or
Amendment
220 Multiple Dwelling (Ref Ord 1154)
�
$35.00 each
3% of rent charged
$10.00
$30.00 + $1.00 per trailer site
(One time fee)
$SO.00Nehicle
$150.00 each location
$50.00
$350.00 ��A:�AB each location
$450.00 each location
$250.00 each location
$600.00 each location
Same as original application
Single rental unit $41.25 �'�59
Two rental units $82.50 35
Three units $123.75 SZ 58
Four units $165.00 �9
Five or more units - $165.00 �9
plus $5.50 per unit.
Ordinance No.
Reinspection Fee
Transfer Fee
License Fee after
Revocation or Suspension
Page 6
$150.00 6�:89
$25.00
150% times the annual license fee
22 Music Festivals $700.00/day+ $100.00 filing fee
31 Pawn Shops
Annual Licensee Fee $3,000
Monthly Transaction Fee $1.50 per transaction
Reporting Failure Penalty $2.50 per transaction
Investigation Fee $400 (Ref. Ord. 1137)
14
23
113
Peddlers/Solicitor
Public Dance
Refuse Haulers, Garbage Truck
$60.00 per peddler
$75,00
$60.00 for first truck and $15.00
each additional truck
13 Retail Gasoline Sales $60.00
Private Pump $30.00 per location
407 Rights-Of-Way -(See Ord. 1116 & 1139)
407.04
407.05
407.07
407.07
407.07
407.07
407.10
407.11
125
125
125
Registration Fee $50.00 �-3�8
User Fee $50.00 �A:99 per project
(Residential, commercial or industrial)
Excavation Permit $250.00 �AA:AB
Obstruction Permit $50.00 -�A9
Permit Extension $20.00 �-S:SB
Delay Penalty Permit extension fee plus $125.00 �AA:�A penalty.
Mapping Fee $20.00 -�A:99 if data is not in city format and City GIS
compatible
Degradation Cost Restoration cost per squaze foot
for the area to be restored.
Saunas and Massage Parlors
(Business Investigation Fee)
Saunas and Massage Parlors
(Operation and Maintenance)
Saunas and Massage Parlors
(Certificate Investigation
�� '7
$1,500.00
$3,000.00/year
$100 each
Ordinance No.
125
127
214
514
Fee)
Saunas and Massage Parlors
(Employee Massage Practice
Certificate)
Sexually Oriented Businesses
Investigation Fee
Signs and/or Billboards
Permanent Sign
Temporary Sign
Snow Removal Penalty
�
Page 7
$50 each/year
$400
$400
I II ■•• _ ,�
� �� �� _ _ .�
$75.00 �8:A8 under 40 sq ft
$100.00 S8:A9 over 40 sq ft
$200.00 Deposit-refunded
if conditions met
Violations of the provisions of this
Section shall be a misdemeanor,
subject to penalties of a maximum of
$700.00 and 90 days in jail per
occurrence. In the alternative, the
City may, in its discretion, impose a
civil penalty as follows:
2°d Offense in any given year: 50.00
3ra Offense within 6 months of any
prior offense: $200.00
4th Offense or more within 6 months
of prior offense(s): $500.00
In addition, the City may charge to,
and assess to the associated property,
any damage to City properiy or
injury to City employees attributable
to violations of this section.
��, � , ,,:+� .,.,a ,. „�,.:,.,s
����-e��-n.'��s:-
��r,,,+;...,e a.,,e,,:..,,.. ,,.�, �
x�iu
mi+ru r�erF:�:ea � r n
..ae_.t,e n;,-.,�., � ,,,�:.,,,
.,�...,,.+ . ,:�i �.e
��r�ea +t,e ,. „+ „ .,+�.,,.+
,..,+e .,,�,:,.�.. ��,e n:,-�, :
Ordinance No.
Page 8
��ao +we o e
�. � �� � -
�� _ �
16
_ 116
115
205.30
205
12
104
Street Vending
Suntanning Rooms
Swimming Pools, Public
Temporary Outdoor Display License
Text Amendment to the Zoning
Ordinance
Tobacco Products
Tree RemovaUTreatment
$50.00 industriaUcommercial
$70.00 residential
$100.00 both
$500.00
$250.00 per outdoor pool
$350.00 per indoor pool + 25%
of base per added pool, enclosed area
$75.00 (Ref. Ord. 1138)
$1,500.00 �59:99
$125.00
$150.00
i n4 r�r� n• t i n ecn nn
c r��crl.z-iv �v...,....,
D nn4n «+4 T'.. v4 Q• o4nmi.
i n4 r r�� n n;C,.��� � Q�c nn
a„ „ vo,,.,.,;+r
� n4 r T�n n��� W � cn nn
D�rii�� ^ �o o�,i:,,,�_e_»�
�Ca �T� � �
z-v 4 T r�'�E�l.�--�i'-�n Q c o. o v
����
1!1 Q �T= `�,�� � n Q 7 Cv: ov
�;l..e« V....,7., .,...i �i7.,...i.,..,�L;,,R
1!14 T TL'!� A���y,� 1 Q 2 G(1 !1!1
T:.-e DeL..,;l.i:«.,�.
� . , � � � �
31
Ordinance No.
�� - . � ��
� • �_ - . � � �
� � . .. . ■ � �
}�.g r r����^�� Q i cn nn
�� ... ��..
�� • . ��
�� • .�
�•� ��*_!e!!tis!� r_� �r!eerfi�
--.-......� _
�T� �_ • � � _
.
�• �� �� ��
— - ���-.-..
i±EE'El�.!'
.�.....,.,.-.a.-,.
�' - - ' �� � � ��� .
- . �� � ��
• ��
��
19 Used Motor Vehicles
205 Wetlands
Certifying Exemptions
Replacement Plan Application
No Loss Determination
Appeal of Decision
113 Yard Waste Transfer Site
Gate Fee
FEES FOR SERVICES RENDERED
32
$150.00/yeaz
$1.500.00 �:AA
$1,500.00 �:AA
$1,500.00 �5:89
$1.500.00 �AA
$2.00 per caz
$3.50 per pickup truck
or sma11 trailer
Page 9
E
0
Ordinance No.
206
206
206
206
211
206
212
206
211
206
206
205
206
205
205
206
206
402
206
211
Page 10
Building Permit Fees See Chapter 206
Certificate of Occupancy Fees See Chapter 206
Electrical Permit Fees See Chapter 206
Land Alteration Excavating See Chapter 206
or Grading Fees
Uniform Building Code Chapter 70
adopted by reference (Plan Checking
Fees and Grading Permit Fees)
Lot Splits $1�50.00 �A�98
Mechanical Permit Fees See Chapter 206
Mining Permit See Chapter 206
Moving Permits Fee See Chapter 206
Plat $1,500.00 3�9A-99/20 lots +$15.00 each additional lot
Plumbing Permit Fees See Chapter 206
Reinspection - Building Fee See Chapter 206
Rezoning $1,500.00 388:99
Sewer Permit Fee See Chapter 206
Special Use $1.500.00 499:89 for all, $100.00 for
2nd access, building
Town House Development $500.00
Utility Excavations Permit Fees See Chapter 206
Water Permit Fee See Chapter 206
Water/Waterways Permit Fees See Chapter 206
City Vacations $1.250.00 ''c�
Variance $250.00 bA:A9 for R-1, $1,400.00 100 for all other
33
Ordinance No.
*Prorate (see Chapter 603)
34
Page 11
Ordinance No.
105.7.
• 105.7.
- 105.7.
Page 12
ter 108 — Construction, Alteration, Modification or Installation Fees
I_ m�:T,e �f n�t'ivitv Stipulations Fee
A11tOm8tiC FiL'@ �XLinguisniaay �ya�.o...�
1. Kitchen Hood Extinguishing Systems
2. Fire Sprinkler Systems
3. Other Special Extinguishing Systems
Install, repair damage to, abandon, remove, place
temporarily our of service, close or
substantially modify systems
Fire Alarm, Detection 6 Related Alarm or
Detection Equipment
Install or modify new & existing systems
Required
Inspection & Testing
Inspection & Testing
InsDection & Testing
Required
MSFC requirements
Required
Inspection & Tes
Install or modify fire'pumps, related fuel tanks, ���ired
iockev Dt]IiIDS, controllers and generators Inspection & Test
�+ 1� Install or modify a pipeline
2. Install, construct or alter tank vehicles,
equipment, tanks, plants, terminals,
wells, fuel dispensing stations, refineries,
distilleries and similar activities where
flammable or combustible liquids are produced,
processed, transported, stored, dispensed or
used
3. Install, alter, remove, abandon, place
temporarily out of service or otherwise
dispose of a flammable or combustible liquid
tank
, . Hazardous Materis s
Install, repair damage to, abandon, remove, place
temporarily out of service, close or
substantially modify a storage facility or other
area regulated by MSFC Chapter 27
105.7.
105.7.
10 .7.
105.7.
10 .7.
Installation of industrial ovens regulated by
MSFC Chapter 21 _
Installation of or modification to an LP Gas
system
Required
Inspection requirements
as defined by 2003 MSFC
requirements.
UGST or AGST storage
tank removal must be
witnessed by Fire
Marshal.
Required
Required when hazardous
materials in use or
storage exceed amounts
shown in MSFC Table
105.6.21
Required
MSFC req
Required
MSFC & NFPA 58
reauirements
ts
Private Fire ttyaranLS ---�--
Installation of or modification of private fire Required
hvdrants _ I�spection & Tes
Spraying or Dipping
Install or modify a spray room, dip tank or booth
Installation, modification, or removal from
service of a standpipe system
Temporary Membrane Structures, Tents and Canopie
To construct an air-supported temporary membrane
structure, tent (_> 200 ft2) or canopy (_> 400
ftz).
Required
MSFC requirements
Required
Inspection & Test
Required
MSFC requirements
$@@ H@�.OW
$ 235.00
1. $150.00
2. $150.00
3. $200.00
$ 200.00
1 . 0
0 .0
45.00
Fire Sprinkler, Fire Extinguishing Systems, Fire Alarm Systems or Standpipe Systems
. Fees for Automatic Fire Extinguishing Systems (MSFC 105.7.1), Fire Alarm, Detection and
related equipment (MSFC 105.7.3); Fire Pumps or related equipment, (MSFC 105.7.4); and
Standpipe Systems (MSFC 105.7.11) are calculated on project valuation from the 1997 UBC
Permit Fee Schedule as shown below, plus the State of Minnesota Surcharge Fee on sprinkler
ermits:
Tota Valuation Fee
. UU t�
.vv 1.V ti' c.�wv•
yc.d..i
23.50 for the first $500.
additional $100.00, or fr�
35
us 53.05 for each
i thereof, to and
Ordinance No.
Page 13
incluaa.ng ; zuuu. uu
01.00 to S 25,000.00 569.25 for the first $2,000.00 plus $14.00 for
each additional $1,000.00, or fraction thereof,
to and including $25,000.00
,001.00 to $ 50,000.00 391.75 for the first 525,000.00 plus $10.10 for
each additional $1,000.00, or fraction thereof,
to and including $50,000.00
�,001.00 to $ 100,000.00 5643.75 for the first 50,000.00 plus 7.00 for
each additional $1,000.00, or fraction thereof,
to and including $ 100,000.00
,apter 108 - Construction, Alteration, Modification or Installation Fees
(Continued)
Fire S rinkler, Fire Extinguishing Systems, Fire Alarm Systems or Standpipe Systems
(Continued)
Total Valuation Fee
$ 100,001.00 to $ 500,000.00 $993.75 for the first 100,000.00 plus $5.60 for
each additional $1,000.00, or fraction thereof,
to and including $ 500,000.00
$ 500,001.00 to $ 1,000,000.00 53233.75 for the first $500,000.00 plus $4.75 for
each additional $1,000.00, or fraction thereof,
to and including $ 1,000,000.00
$ 1,000,001.00 and up 55,606.75 for the first 51,000.000.00 plus 3.65
for each additional $1,000.00, or fraction
thereof
Chaptez
� 108. Permitted Business Operations — Processes and Activiti�
Permit Authority Fee
$
105.6.1 Aerosol products 145.00
$
105.6.2 Amusment buildings 75.00
$
105.6.3 Aviation facilities 120.00
S
105.6.4 Carnivals and fairs 200.00
$
105.6.5 Battery systems 95.00
$
105.6.6 Cellulose nitrate film 95.00
$
105.6.7 Combustible dust-producing ops 200.00
$
105.6.8 Combustible fibers 145.00
$
105.6.9 Compressed gases 150.00
S
105.6.10 Covered mall buildings 95.00
S
105.6.11 Cryogenic fluids 95.00
�
105.6.12 Cutting and welding 95.00
$
105.6.13 Dry cleaning plants 145.00
$
105.6.14 Exhibits and trade shows 200.00
$
105.6.15 Explosives 200.00
$
105.6.16 Fire hydrants and valves 75.00
36
as Fees
0
�
Ordinance No.
Page 14
$
105.6.17 Flammable & Combustible liquids 200.00
$
105.6.18 Floor finishing 95.00
$
105.6.19 Fruit and crop ripening 120.00
$
105.6.20 Fumigation & thermal insectcide fog 95.00
$
105.6.21 Hazardous materials 145.00
$
105.6.22 HPM facilities (Haz Prod Materials) 145.00
$
105.6.23 High piled storage 200.00
$
105.6.24 Hot work operations 95.00
$
105.6.25 Industrial ovens 145.00
$
105.6.26 Lumber yards & woodworking plants 200.00
$
105.6.27 Liq or gas fueled veh/equip in Grp A 95.00
$
105.6.28 LP Gas 95.00
$
150.6.29 Magnesium 95.00
$
105.6.30 Misc combustible storage 145.00
105.6.31 Open burning (Not allowed) NA
$
105.6.32 Open flames and candles 95.00
$
105.6.33 Organic coatings 145.00
$
105.6.34 Places of assembly 135.00
$
105.6.35 Private fire hydrants 75.00
37
Ordinance No. Page 1
Chapter 108. Permitted Business Operations — Processes and
Activities Fees (Continued)
Permit Authority Fee
$
105.6.36 Pyrotechnic special effects material 95.00
$
105.6.37 Pyroxylin plastic 145.00
$
105.6.38 Refrigeration equipment 95.00
$
105.6.39 Repair garages or service stations 120.00
$
105.6.40 Rooftop heliports 95.00
$
105.6.41 Spraying or dipping 145.00
$
105.6.42 Storage of scrap tires/tire byproducts 120.00
$
105.6.43 Temp mem struc, tents & canopies 95.00
$
105.6.44 Tire-rebuilding plants 145.00
$
105.6.45 Waste handling 200.00
S
105.6.46 Wood products 165.00
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
FRIDLEY THIS DAY OF 2004.
ATTEST:
Debra A. Skogen, City Clerk
First Reading:
Second Reading:
Publication:
�
Scott J. Lund, Mayor
�
�
QTY OF
FRIDLEY
Date:
To:
From:
Subject:
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 23, 2004
February 19, 2004
William Burns, City Manager� � �
%1�
Scott Hickok, Community Development Director
Ron Julkowski, Building Official
First Reading of an Ordinance of Changes to Chapter 206, Building Code
M-04-23
INTRODUCTION
The attached ordinance officially adopts the International Building Code, the National
Electrical Code, and numerous State building related code sections. The ordinance also
adopts an associated fee schedule for plan review and the various permits. Though you
are being asked to officially endorse this Code option, it is a mandatory act that all cities
must do. For municipalities, there is no alternative to adoption of the State/International
Building Code.
The Minnesota State Building Code, which adopts the International Building Code (IBC),
was adopted at the State Level in March 2003. However, staff has kept its finger on the
pulse as the State deliberated changing significant segments of the document they had
just adopted in March. The State's actions on this new building legislation have been
frustrating for municipalities to say the least. This Code amendment is a 2000
amendment that has taken until 2003 to adopt at the State level. Once adopted, there
were significant enough changes pending that our staff and many other cities were
reluctant to adopt the Code and pay $1500.00 for Code books with pending changes
looming that would render that Code book investment useless.
While the State continues to deliberate over the adoption of the fuel gas/mechanical
portions of the Code and have not adopted new language in those portions, staff
believes the remaining portion of the Code should now be adopted. Additional changes
may occur, but we have held out as long as we can anticipate further modification and
simply put we need to adopt the Code.
FEE STRUCTURE
You may recall that staff is recommending that we attach our existing Building Code
Fee Structure to this amendment. Two significant changes should be noted in the fee
39
structure proposed. One is that the State has always allowed up to an additional 65%
of the value of a permit fee to be charged for residential plan review. The City of Fridley
has chosen not to impose this fee in the past. Keep in mind this is only applied to those
projects where plans are required. Things like reproofing, residing, and many new
windows and door installations do not require plans; therefore, the plan check fee would
not be imposed. Where it is imposed it is purely a sliding scale based on project value.
The less complicated the job, the less expensive the job, the less plan check fee that
will be required. _
Though in the past this may have been viewed by the Council as a benefit to the
residential property owners and an added incentive to reinvest in their homes, it is now
clear in these economic times that this is something that should be looked upon as a fee
for a specific service. The cost of the staff time for plan reviews should not be a burden
placed on all taxpayers. By imposing the plan check fee, the folks having work done on
their homes will be the ones paying the cost of staff time for plan review.
The second, less significant, yet notable fee modification in the increase in minimum
permit fees. This adjustment was made in accordance with a State mandate that fees
for mechanical devices/appliances not exceed $15.00 if the device itself combined with
installation costs does not exceed $500.00.
STATE RULES CHAPTER 1306
Attached please find the suggested modifications to the ordinance language adopting
the 2000 State Building Code, IBC and fee schedule hereby referred to in our local
Code of Ordinances as Chapter 206.
One other important notation relates to the Fire Protection Systems requirements
referenced in Chapter 1306. The City of Fridley has already adopted Chapter 1306;
however, this recent series of State amendments gives cities the option of Subp 2, or
Subp 3. Each of these Subps require Automatic sprinkle systems in new buildings and
have specific language as to whether you require that owners sprinkler their buildings
once certain modifications are made.
The difference is that Subp 2 exempts R-2 and R-3 building owners from having to go
back and sprinkler the existing building when an addition is made. Subp 3 requires that
those same buildings be sprinklered in both their old and new portions when additions
are made. Staff recommends modified 1306 with option Subp 3, requiring old and new
portion sprinkler systems when additions are made.
A second area where an option exists in Chapter1306 is section E(Option E 1 is
preferred by our Building and Fire Departments ). The difference befinreen the 2 options
lies in the definition of occupancy group — municipality. Option 1 is worded as follows:
Group R-1 and R-2 occupancies with 8,500 or more gross square feet of floor area or
dwelling units or guestrooms on three or more floors; and attached R-3 occupancies
and attached town homes built to the International Building Code with 8,500 or more
gross square feet of floor area. All floors, basements, and garages are included in this
40
floor area threshold. Option 2 is worded as Attached R-3 occupancies and attached
townhouses built to the international Residential Code with more than 16 dwelling units
or more than three stories in height.
The current language we enforce is the identical language listed in E1. Staffs (including
Fire staff's) preference is to continue with that option.
The entire Chapter 1306 has been included in your week�y reading file.
PLANNING STAFF RECOMMENDATION
City Staff recommends adoption of the proposed ordinance in order to officially adopt
Chapter 206, and by reference Minnesota Rules 1306 with options Subp 3 and E1.
Staff also recommends approval of the modified fee schedule as submitted.
41
ORDINANCE NO.
AN ORDINANCE A1V�NDING CHAPTER 206. BUILDING CODE ADOPTING THE
2001 MINNESOTA STATE BUILDING CODE
THE CITY COUNCIL DOES HEREBY ORDAIN THAT CHAPTER 206 OF THE
FRIDLEY CITY CODE IS HEREBY A1��NDED AS FOLLOWS:
206. BUII.DING CODE
206.01. BUILDING CODE
1. Buildin� Code. The Minnesota State Building Code, established pursuant to Minnesota Statutes 16B.59
through 16B.75 �3, one copy of which is on file in the office of the City Clerk of Fridley, Minnesota,
is hereby adopted by reference as the Building Code of the City of Fridley and incorporated in this Chapter
as completely as if set out here in full.
2. The following chapters of the Minnesota State Building Code including the following chapters of
Minnesota Rules are adopted by the City:
A. Chapter 1300 - Minnesota Building Code.
B. Cha.pter 1301 - Building Official Certification.
C. Chapter 1302 - State Building Consiruction Approvals.
D. Chapter 1303 — Minnesota Provisions;
E�. Cha.pter.1305 - Adoption of the 2000 Intemational ' O°'� T�,—�� Building Code �E��ex�
��
. .- -
■ -- - -- -- -- • -- ----
�- -
. ._
. .
.
F�. Chapter 1306 - Special Fire Protection Systems (Ord 1159)
Section 1306.0020. Municipal Option, Subp. 3; and E.1
G�. Chapter 1307 - Elevators and Related Devices
H. Chapter 1309 — Adoption of the 2000 International Residential Code;
I. Chapter 1311 — Adoption of the 2000 Guidelines for the Rehabilitation of Existine
Buildin�s;
JC-�. Chapter 1315 — Adoption of the 2000 �� National Electrical Code
K�. Chapter 1325 - Solar Energy Systems
L�. Chapter 1330 - Fallout Shelters
42
Ordinance No.
M�. Chapter 1335 - Floodproofing Regulations
T�—�`�a��e� �3�1�a� � ��,e u...,a• ea
Tcvx ax
N Chapter 1341— Minnesota Accessibilitv Code
O�. Chapter 1346 —Adoption of the Minnesota State '°O1 T��'�=n Mechanical Code
p#� Chapter 1350 - Manufactured Homes
QI�. Chapter 1360 - Prefabricated Buildings
RA. Chapter 1361 - Industrialized/Modular Building
Sg. Chapter 1370 - Storm Shelters
TQ: Chapter 4715 - Minnesota Plumbing Code
UfE. Chapters 7670, 7672 7674, 7676 and 7678, Minnesota Energy Code
-- _ ..- - ----- --
- __-_ _ _ - —_�
�_ - -_ -- _ � -
. .. . --
34. Organization and Enforcement.
Page 2
A. A lication Administration and Enforcement. The a lication adminishation and enforcement
of the code shall be in accordance with Minnesota Rule Chapter 1300. The code shall be
enforced within the extraterritorial limits pemlitted bv Minnesota Statutes 16B.62. Subd. 1, when
so established bv this ordinance. `' `+'' D, :,'': "
"a
B. The Building Inspection Division shall be the Building Code Departrnent of the City of Fridley.
The Administrative authority shall be a State Certified Building Official. (Minnesota Staxute
16B.65)
C. The City Manager shall be the Appointing Authority and designate the Building Official for the
jurisdiction of Fridley. (Ref. 961)
206.02. CONFLICTS
In the event of any conflict between the provisions of this Code adopted by the provisions of this Chapter
and applicable provisions of State law, rules or regulations, the latter shall prevail.
206.03. PERMITS AND FEES
The issuance of pemrits, and collection of fees shall be as authorized in Minnesota Statute 16B.62
SUbdiViSlOri 1 � � �� 'a a '� rw • � �F �w 1 A�'7 T T 'F - Q '1�7:�:�oQG �..a
n
. . , � ...
. �. .
43
Ordinance No.
Page 3
2. Violations and Penalties. A violation of the code is a misdemeanor (Minnesota. Sta.tute 16B.69) and
Minnesota Rules Chapter 1300.
3. The fee schedules shall be as follows:
A. Plan Review Fees.
(1) When a plan or other data are submitted for review, the plan review fee shall be 65% of the
buildin�pernut fee. ' , r „ ..i.,..n i.. ..:a ..« ��... �:.....� ,.r ...a.._...:,+:�,. �i..�.. �a
b Y
(2) Where plans are incorporated or changed so as to require additional plan review an additional
plan review fee shall be charged.
(3) Applications for which no permit is issued within 180 days following the date of application
shall expire by limitation and plans and other da.ta submitted for review may thereafter be
retiuned or destroyed. The building official may extend the time for action by the applicant
once for a period not exceeding 180 days upon request by the applicant.
(4) Pernut and Plan Review Refund Policv. The Buildin�YOfficial mav authorize refundine of anv
fee hereunder which was erroneouslv naid or collected. The Building Official mav authorize
refundin¢ of not more than 80% of the pernut fee paid when no work has been done under a
peimit issued in accordance with this code. The Buildin� Official mav authorize refundin¢ of
not more than 80% of the�lan review fee paid when an application for a vemut for which a
plan review fee has been paid is withdrawn or cancelled before anv nlan reviewin� is done.
The Building Official shall not authorize refundin� of anv fee naid exceut on written
avplication filed by the ori¢inal pernutee not later than 180 davs after the date of the fee
pavment•
�. -- - � - - - --- - -- --�
- - - •� -
- .. _ ..
B. Building Permit Fees. (Ref. 901)
TOTAL VALUATION .......................FEE
$ 1.00 to $ 500.00 .............................$23.50
$ 501.00 to $2,000.00 ..........................$23.50 for the first $500.00 plus $3.05 for each additional
$100.00 or fraction thereof, to and including $2,000.00
$ 2,001.00 to $25,000.00 ......................$69.25 for the first $2,000.00 plus $14.00 for each
additional $1,000.00 or fraction thereof, to and including $25,000.00
$25,001.00 to $50,000.00 .....................$391.25 for the first $25,000.00 plus $10.10 for each
additional $1,000.00 or fraction thereof, to and including $50,000.00
$50,001.00 to $100,000.00 ...................$643.75 for the first $50,000.00 plus $7.00 for each
additional $1,000.00 or fraction thereof, to and including $100,000.00
44
Ordinance No.
Page 4
$100,001.00 to $500,000.00 .................$993.75 for the first $100,000.00 plus $5.60 for each
additional $1,000.00 or fraction thereof, to and including $500,000.00
$500,001.00 to $1,000,000.00 .............$3,233.75 for the first $500,000.00 plus $4.75 for each
additional $1,000.00 or fraction thereof, to and including $1,000,000.00
$1,000,001.00 and up ...........................$5,608.75 for the first $1,000,000.00 plus $3.15 for each
additional $1,000.00 or fraction thereof
Other Inspections and Fees:
Inspections outside of normal business hours .............................................. $50.00 4'�-AA per hour*
(minimuin charge - two hours)
Re-inspection fees assessed under provisions of Section 108.8 .................. $50.00 4?:8A per hour*
Inspections for which no fee is specifically indicated ................................. $50.00 4�:AA per hour*
(minunum chazge — one half hour)
Additional plan review required by changes, additions or revisions to .... $50.00 4�88 per hour*
Approved plans (minimum charge — one half hour)
*Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost sha11 include
supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved.
For use of outside consultants for plan checking and inspections, or both ............... Actual Costs**
Residential Mobile Home Installation ..........................................................................$100.00 38�A8
Surcharge On Residential Building Permits. A surcharge of $5.00 shall be added to the permit
fee charged for each residential building pemut that requires a State licensed residential
contractor.
**Actual costs include administrative and overhead costs.
C. Plumbing Permit Fees. (Ref. 901)
FEE
Minimum Fee $15 00 or 5% of cost of im�rovement whichever is eg� ater �A:AB
Each F'vcture ..................................................$10.00 �AA
Old Opening, New Fixture ...........................$10.00 4A8
Beer Dispenser . .............................................$10.00 3:A8
Blow OffBasin .............................................$10.00 �AA
Catch Basin ...................................................$10.00 �8A
Rain Water Leader ........................................$10.00 �:AA
Sump or Receiving Tank ..............................$10.00 �9A
Water Treating Appliance .......................... $35.00 ��AA
Water Heater-Electric ...................................$35.00 �:9A
Water Heater-Gas ....................................... $35.00 �:AB
Backflow Preventer ............................................... $15.00
OTHER ...................................Commercial 1.25% �°�o of value of fixture or appliance
�
Ordinance No.
Other Inspections and Fees:
Page 5
Inspections outside of normal business hours . ............................................. $50.00 4'�AA per hour*
(minimum charge - two hours)
Re-inspection fees assessed under provisions of Section 108.8 ................. $50.00 4'�AA per hour*
Inspections for which no fee is specifically indicated .................................. $50.00 4�9A per hour*
(minimum charge — one half hour)
Additional plan review required by changes, additions or revisions to....... $50.00 4�A per hour*
Approved plans (m;n;n,um charge — one half hour)
*Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include
supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved.
For use of outside consultants for plan checldng and inspections, or both ............... Actual Costs**
**Actual costs include administrative and overhead costs.
D. Mechanical Permit Fees. (Ref. 901)
FEE
(1) Residential
Minimum Fee $15.00 or 5% of cost of improvement, whichever is eg� ater �3:99
Fumace .............................................. $35.00 38:AA
GasRange ....................................................$10.00
GasDryer .....................................................$10.00
GasPiping .................................................... $10.00
Air Conditioning ..........................................$25.00
OTHER ..........................1 % of value of appliance
(2) Commercial
Minimum Fee .................................... $35.00 �8A
All Work ...................1.25% of value of appliance
Other Inspections and Fees:
Inspections outside of normal business hours ............................................... $50.004�8A per hour*
(minimum charge - two hours)
Re-inspection fees assessed under provisions of Section 108.8 ................... $50.004�AA per hour*
Inspections for which no fee is specifically indicated ................................... $50.004�:9A per hour*
(minimum charge — one half hour)
Additional plan review required by changes, additions or revisions to ........ $50.004�AA per hour*
Approved plans (minimum charge — one half hour)
Q�
Ordinance No.
Page 6
*Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost sha11 include
supervision, overhead, equipment, hourly wages and fringe benefits of the employees involved.
For use of outside consultants for plan checking and inspections, or both ............... Actual Costs**
**Actual costs include administrative and overhead costs.
E. Electrical Permit Fees.
(1) Payment of Fees
All electrical inspection fees are due and payable to the City of Fridley at or before
commencement of the installation and shall be forwarded with the request for inspection.
(2) Fee Schedule
Fees shall be paid according to the following schedule:
(a) Minunum Fees.
((1))Residential. Minunum fee for each separate inspection of an installation,
replacement, alteration or repair limited to one (1) inspection only ...................... $20.00
Minimum fee for installations requiring two inspections shall be ......................... $40.00
(Ref. 901)
((2)) Nonresidential. Minimuxn fee for each separate inspection of an installation,
replacement, alteration or repair limited to one (1) inspection only ...................... $25.00
Minimum fee for installations requiring two inspections shall be ........................ $50.00
(b) Services, changes of services, temporary services, additions, alterations or repairs on
either primary or secondary services shall be computed separately.
0 to and including 200 ampere capacity ................................................................. $30.00
For each additiona1100 ampere capacity or fraction thereof .................................. $ 8.00
(c) Circuits, installations, additions, alterations or repairs of each circuit or subfeeder shall
be computed separately including circuits fed from subfeeders and including the
equipment served, except as provided for in (a) through (i).
0 to and including 100 ampere capacity ..............................................:................... $ 6.00
For each additional 100 ampere capacity or fraction thereof .................................. $ 4.00
((1)) Maximum fee on a single family dwelling shall not exceed $85.00 if not over
200 ampere capacity. This includes service, feeders, circuits, fixtures and equipment.
This maximum fee includes not more than two 2€e�{4� inspections.
47
Ordinance No.
Page 7
((2)) Maximum fee on an aparhnent building shall not exceed $35.00 per dwelling
unit for the first 40 units and $30.00 per dwelling unit for the balance of units. The fee
for the service and feeders in an apartment building shall be in accordance with 2b and
2c of the schedule, and shall be added to the fee for circuits in individual apartrnents.
The maximum fee for an apartment applies only to the circuits in the apaztrnent. A
two-family unit (duplex) maximum fee per unit as per single family dwelling. (Ref.
901)
((3)) The maximum number of 0 to 100 ampere circuits to be paid on any one athletic
field lighting standard is ten (10). (Ref. 901)
((4)) The fee for mobile homes shall be in accordance with 2b and 2c of the fee
schedule. (Ref. 901)
((5)) In addition to the above fees:
((a)) A charge of $2.00 will be made for each lighting standard.
((b)) A charge of $3.00 will be made for each traffic signal standard. Circuits
originating within the standard will not be used when computing the fee.
((6)) In addition to the above fees, all transformers and generators for light, heat and
power shall be computed separately at $5.00 per unit plus $3.00 per 10-Kilovolt
amperes or fraction thereof.
((7)) In addition to the above fees, a11 transformers for signs and outline lighting sha11
be computed at $5.00 per unit .(Ref. 901)
((8)) In addition to the above fees (unless included in the maximum fee filed by the
initial installer) remote control, signal circuits and circuits of less than 50 volts shall be
computed at $6.00 per each ten (10) openings or devices of each system plus $.50 for
each opening.
(d) For the review of plans and specifications of pmposed installations, there shall be a
minimum fee of $100.00, up to and including $30,000 of electrical estimate, plus 1/10
of 1% of any amount in excess of $30,000 to be paid by persons or firms requesting
the review.
(e) When re-inspection is necessary to determine whether unsafe conditions have been
conected and such conditions are not subject to an appeal pending before the Board or
any court, a re-inspection fee of $25.00 for residential and $30.00 for nonresidential,
may be assessed in writing by the inspector. (Ref. 901)
(� For inspections not covered herein, or for requested special inspections or services, the
fee shall be $50.00 ��AA per hour, including travel time, plus $.40 per mile traveled,
plus the reasonable cost of equipment or material consumed. This Section is also
applicable to inspection of empty conduits and such other jobs as determined by the
City. (Ref. 901)
,;
Ordinance No.
Page e
(g) For inspection of transient projects including but not limited to carnivals and circuses,
the inspection fees shall be computed as follows: (Ref. 901)
((1)) Power supply units, according to 2B of the schedule. A like fee will be required
on power supply units at each engagement during the season, except that a fee of
$50.00 �.?AA per hour will be charged for additional time spent by the inspector, if the
power supply is not ready for inspection at the time and date specified on the request
for inspection as required by law. (Ref. 901)
((2)) Rides, devices, or concessions, shall be inspected at their first appearance of the
season and the inspection fee shall be $25.00 per unit. In addition to the fee for the
power supply units, there shall be a general inspection for each engagement during the
season at the hourly rate, with a two-hour minimuxn. In addition to the above fees,
inspections required on Saturdays, Sundays, holidays or after regulaz business hours
will be at the hourly rate, including travel time. An owner of a migratory amusement
enterprise shall notify the inspector and make applicarion for inspection a minimum of
14 days before its engagement in Fridley. When the inspector is not notified at least
48 hours in advance, a charge of $100.00 will be made in addition to all required fees.
(h) For pu�wses of interpretation of the provisions of this Chapter, the most recently
published edition of the National Electrical Code shall be prima facie evidence of the
defuutions, interpretations and scope of words and terms used in this Chapter.
(i) In addition to the above fees, the inspection fee for each separate inspection of a
swimming pool shall be computed at $25.00. Reinforcing steel for swimming pools
requires a rough-in inspection.
(3) Minor Repair Work Defined. Minor repair work as used in Minnesota Statutes, Section
326.244 shall mean the adjustment or repair and replacement of worn or defective parts of
electrical fixtures, switches, receptacles and other equipment provided that such minor repairs
are made in compliance with accepted standards of construction for safety to life and property
as defined in Minnesota Statutes, Section 326.243 and do not require replacement of the wiring
to them. The City's inspectors or agents may inspect any such minor repairs at the request of
the owner or person making such repairs.
(4) Condemnation of Hazardous Installations. When an electrical inspector fmds that a new
installation or part of a new installation that is not energized is not in compliance with accepted
standards of construcrion as required by Minnesota Statutes, Section 326.243 Safety Standards
of the Minnesota Electrical Act, the inspector shall, if the installation or the noncomplying part
thereof is such as to seriously and proximately endanger human life and property if it was to be
energized, order with the approval of the Building Inspector, immediate condemnation of the
installation or noncomplying part. When the person responsible for making the installation
condemned hereunder is notified, they shall promptly proceed to make the coirections cited in
the condemnation order. (Ref. 901)
49
Ordinance No.
Page 9
(5) Disconnection of Hazardous Installation: If while making an inspection, the electrical
inspector finds that a new installation that is energized is not in compliance with accepted
standards of construction as required by Minnesota Statutes, Section 326.243 Safety Standards
of the Minnesota Electrical Act, the inspector sha11, if the installation or the noncomplying part
thereof is such as to seriously and proximately endanger human life and property, order
immediate disconnection of the installation or noncomplying part. When the person
responsible for making the installation ordered disconnected hereunder is notified, they shall
promptly proceed to make the corrections cited in this disconnect order. (Ref. 901)
(6) Corrections of Noncomplying Installations. When a noncomplying installation whether
energized or not, is not proxima.tely dangerous to human life and property, the inspector shall
issue a correction order, ordering the owner or contractor to make the installation comply with
accepted standards of construction for safety to life and property, noting specifically what
changes are required. The order of the inspector shall specify a date of not less than 10 nor
more than 17 calendar days from the date of the order.
F. Moving of Dwelling or Building Fee.
The pernut fee for the moving of a dwelling or building shall be in accordance with the following
schedule:
For Principle Building into City ............................................................................................ $ 300.00
ForAccessory Building into City ...........................................................................................$ 42.00
For Moving any building out of City ..................................................................................... $ 20.00
For movin throu or within the Ci ....................... $ 20.00
g � ty ............................................................
G. Wrecking Permit Fee.
(1) For any pemut for the wrecking of any building or portion thereof, the fee charged for each
such building included in such permit sha11 be based on the cubical contents thereof and
shall be at the rate of one dollar and twenty-five cents ($1.25) for each one thousand (1000)
cubic feet or fraction thereof.
(2) For structures which would be impractical to cube, the wrecking pernut fee shall be based
on the total cost of wrecking such structure at the rate of six dollars ($6.00) for each five
hundred dollars ($500.00) or fraction thereof.
(3) In no case shall the fee charged for any wrecking pemut be less than twenty dollars
($20.00).
50
Ordinance No.
H. Water and Sewer Fees. (Ref. 901)
Page 10
Hydrant Rental Agreement - Service Charge ........................................................................... $50.00
(for use of hydrant only - City does not supply hose or eq�ti�e�)
Water Usage Metered . .................................................................. $ 1.25 1.00/1,000 gallons used
Minimuxn........................................................................................................ $10.00
Tanlcer............................................................................................................ $10.00 per fill
Water Taps .................................. $400.00 plus cost per square foot for the area to be restored.
StreetPatch - First 5 sq. yds ............................................................................................... $300.00
Over5 sq. yds ............................................................................... $30.00 per sq.yd.
Temporary Street Patch (Nov. 1 through May 1)
First5 sq. yd ................................................................................................. $400.00
Over5 sq. yd . ................................................................................................. $40.00
per sq. yd plus cost of restoration per square foot of azea to be restored.
Water Meter Repair - Weekend & Holidays ..........................................................................$125.00
WaterConnections Permit ........................................................................................................ $25.00
SewerConnections Perinit ........................................................................................................ $25.00
SewerO-Dapter .......................................................................................................................... $5.00
Inspection Fee for Water/Sewer Line
Repair............................................................................................................. $40.00
I. Land Alterations, Excavating, or Grading Fees including Conservation Plan Implementation
Fees. (Ref. 901,1012)
50 cubic yards or less ........................................................................................................................ $40.00
51 to 100 cubic yazds ........................................................................................................................ $47.50
101 to 1,000 cubic yards .................................................................................................................... $47.50
for the first 100 cubic yazds plus $10.50 for each additiona1100 cubic yards or
fraction thereof.
1,001 to 10,000 cubic yards ............................................................................................................. $167.00
for the first 1,000 cubic yards plus $9.00 for each additional 1,000 cubic yards
or fraction thereof.
10,001 to 100,000 cubic yards .........................................................................................................$273.00
for the first 10,000 cubic yards plus $40.50 for each additional 10,000 cubic yards
or fraction thereof.
100,001 cubic yards or more ............................................................................................................$662.50
for the first 100,000 cubic yazds plus $22.50 for each additiona1100,000 cubic yards
or fraction thereof.
51
Ordinance No.
Land Alteration Plan-Checking Fees:
Page 11
50 cubic yazds or less ....................................................................................................................... No Fee
51 to 100 cubic yards ........................................................................................................................ $23.50
101 to 1,000 cubic yards .................................................................................................................... $37.00
1,001 to 10,000 cubic yards ............................................................................................................... $49.25
10,001 to 100,000 cubic yards ...........................................................................................................$49.25
for the first 10,000 cubic yards plus $24.50 for each additional 10,000 cubic yards
or fraction thereof.
100,001 to 200,000 cubic yards .......................................................................................................$269.75
for the first 100,000 cubic yards plus $13.25 for each additiona110,000 cubic yards
or fraction thereof.
200,001 cubic yards or more ............................................................................................................ $402.25
for the first 200,000 cubic yards plus $7.25 for each additional 10,000 cubic yards
or fraction thereof.
J. Pollution Monitoring Registration Fee. (Ref. 929, 94'n
1. Each pollution monitoring location shall require a site map, description and length of
monitoring time requested. (For matter of defuution pollution monitoring location sha11
mean each individual tax pazcel.) There sha11 be an initial application and plan check fee of
Twenty-Five Dollars ($25).
2. The applicant for a Pollution Control Registration shall provide the City with a hold
harniless statement for any clamages or claims made to the City regarding location,
construction, or contaminates.
3. An initial registration fee of Fifty Dollars ($50) is due and payable to the City of Fridley at
or before commencement of the installation.
4. An annual renewal registration fee of Fifty Dollars ($50) and annual monitoring activity
reports for all individual locations must be made on or before September first of each year.
If renewal is not filed on or before October first of each year the applicant must pay double
the fee.
A final pollution monitoring activity report must be submitted to the City within (30) days
of terminarion of monitoring activity. (Ref. 961)
206.04. INVESTIGATION FEES
Should any person begin work of any kind such as hereinbefore set forth, or for which a pernut from the
Building Code Department is required by this Chapter without having secured the necessary permit therefore
from the Building Code Department either previous to or during the day where such work is commenced, or
on the next succeeding business day when work is commenced on a Saturday, Sunday or a holiday, they
shall, when subsequently securing such pemut, be required to pay an investigation fee equal to the permit fee
and sha11 be subject to all the penal provisions of said Code. (Ref. 901)
52
Ordinance No.
206.05. REINSPECTION FEE
Page 12
1. A re-inspection fee of forty seven dollars ($50.00 4�:SA) per hour shall be assessed for each inspection
or re-inspection when such portion of work for which the inspection is called for is not complete or
when corrections called for are not made. (Ref. 901)
2. This Section is not to be interpreted as requiring re-inspection fees the first time a job is rejected for
failure to comply with the requirements of this Code, but as controlling the practice of calling for
inspections before the job is ready for such inspection or re-inspection.
3. Re-inspection fees may be assessed when the pernut cazd is not pmperly posted on the work site, or the
approved plans are not readily available for the inspection, or for failure to provide access on the date
and time for which inspection is requested, or for deviating from plans requiring the approval of the
Building Official.
4. Where re-inspection fees have been assessed, no additional inspection of the work will be performed
until the required fees have been paid. (Ref. 961)
206.06. CERTIFICATE OF OCCUPANCY
Except for single family residential structures, a Certificate of Occupancy stating that all provisions of
this Chapter have been fully complied with, shall be obtained from the City:
A. Before any structure for which a building permit is required is used or occupied. A temporary
Certificate of Occupancy may be issued when the building is approved for occupancy but the
outside development is partially uncompleted. (Ref. 901)
B. Or before any nonconforming use is improved or enlarged.
2. Application for a Certificate of Occupancy sha11 be made to the City when the structure or use is ready
for occupancy and within ten (10) days thereafter the City shall inspect such structure or use and if
found to be in conformity with a11 provisions of this Chapter, shall sign and issue a Certificate of
Occupancy.
A Certificate of Compliance shall be issued to all existing legal nonconforming and conforming uses
which do not have a Certificate of Occupancy after all public health, safety, convenience and general
welfaze conditions of the City Code are in compliance.
4. No pemut or license required by the City of Fridley or other governmental agency shall be issued by
any department official or employee of the City of such govemmental agency, unless the applicarion
for such pemut or license is accompanied by proof of the issuance of a Certificate of Occupancy or
Certificate of Compliance.
Change in Occupancy:
A. The City will be notified of any change in ownership or occupancy at the time this change occurs
for a11 industrial and commercial s�uctures within the City.
B. A new Certificate of Occupancy or Compliance will be issued after notification. A thirty-five
dollar ($35.00) fee will be assessed for this certificate.
53
Ordinance No.
Existing Structure or Use:
Page 13
A. In the case of a structure or use established, altered, enlarged or moved, upon the issuance and
receipt of a Special Use Permit, a Certificate of Occupancy shall be issued only if all the
conditions thereof shall have been satisfied.
B. Whenever an inspection of an existing structure or use is required for issuance of a new
Certificate of Occupancy, a thirty-five dollar ($35.00) fee will be chazged. If it is found that such
structure or use does not conform to the applicable requirements, the structure or use shall not be
occupied until such time as the structure or use is again brought into compliance with such
requirements.
206.07. CONTRACTOR'S LICENSES
It is deemed in the interest of the public and the residents of the City of Fridley that the work involved
in building alteration and construction and the installation of various appliances and service facilities in
and for said buildings be done only by individuals, fim�s and corporations that have demonstrated or
submitted evidence of their competency to perform such work in accordance with the applicable codes
of the City of Fridley.
2. The permits which the Building Inspector is authorized to issue under this Code shall be issued only to
individuals, firms or corporations holding a license issued by the City for work to be performed under
the pernut, except as hereinafter noted
Requirements.
Application for license shall be made to the Building Code Department and such license shall be
granted by a majority vote of the Council upon proof of the applicant's qualifications thereof,
willingness to comply with the provisions of the City Code, filing of certificates evidencing the holding
of public liability insurance in the limits of $50,000 per person, $100,000 per accident for bodily
injury, and $25,000 for property damages and certificates of Worker's Compensation insurance as
required by State law and if applicable, list a Minnesota State Tax Identification number. (Ref. 901)
4. Fee.
The fee for each license required by the provision of this Section shall be thirty-five dollars ($35.00)
per year.
5. Expiration.
All licenses issued under the provisions of this Section shall expire on Apri130th, following the date of
issuance unless sooner revoked or forfeited. If a license granted hereunder is not renewed previous to
its expiration then all rights granted by such license shall cease and any work performed after the
expiration of the license shall be in violation of this Code.
6. Renewal.
Persons renewing their license issued under this Section after the expiration date sha11 be charged the
full annual license fee. No prorated license fee shall be allowed.
54
Ordinance No.
Page 14
7. Specific Trades Licensed
Licenses shall be obtained by every person engaging in the following businesses or work in accordance
with the applicable Chapters of the City of Fridley.
A. General contractors in the business of nonresidential building construction and residential
contractors with an exempt card from the State.
B. Masonry and brick work.
C. Roofmg.
D. Plastering, stucco work, sheetrock taping.
E. Heating, ventilation and refrigeration.
F. Gas piping, gas services, gas equipment installation.
G. Oil heating and piping work.
H. Excavations, including excavation for footings, basements, sewer and water line installations.
I. Wrecking of buildings.
J. Sign erection, construction and repair, including billboards and electrical sigis.
K. Blacktopping and asphalt work.
L. Chimney sweeps.
8. Employees and Subcontractors.
A license granted to a general contractor under this Section shall include the right to perform all of the
work included in the general contcact. Such license shall include any or all of the persons perfonning
the work which is classified and listed in this Code providing that each person performing such work is
in the regulaz employ and qualified under State law and the provisions of this Building Code to
perform such work. In these cases, the general contractor shall be responsible for all of the work so
performed. Subcontractors on any work shall be required to comply with the Sections of this Code
pertaining to license, insurance, pemut, etc., for their particulaz type of work. (Ref. 901)
9. Suspension and Revocation Generally.
The City Council shall have the power to suspend or revoke the license of any person licensed under
the regulations of this Section, whose work is found to be improper or defective or so unsafe as to
jeopardize life or property providing the person holding such license is given twenty (20) days notice
and granted the opportunity to be heard before such action is taken. If and when such notice is sent to
the legal address of the licensee and they fail or refuse to appear at the said hearing, their license will
be automatically suspended or revoked five (5) days after date of hearing.
10. Time of Suspension.
When a license issued under this Section is suspended, the period of suspension sha11 be not less than
thirty (30) days nor more than one (1) year, such period being detemuned by the City Council.
11. Revocation, Reinstatement.
When any person holding a license as provided herein has been convicted for the second time by a
court of law for violation of any of the provisions of this Code, the City Council shall revoke the
license of the person so convicted. Such person may not make application for a new license for a
period of one (1) yeaz.
55
Ordinance No.
Page 15
12. Pemut to Homeowner.
The owner of any single family property may perform work on properiy which the owner occupies so
long as the work when performed is in accordance with the Codes of the City and for such purpose a
pernut may be granted to such owner without a license obtained.
All rental property pemvts shall be obtained by licensed contractors.
13. State Licensed Contractor's Excepted.
Those persons who possess valid State licenses issued by the State of Minnesota shall not be required
to obtain a license from the City; they shall, however be required to file proof of the existence of a
valid Staxe license together with proof of satisfactory Worker's Compensation and Public Liability
insurance coverage. (Ref. 901)
14. Public Service Corporations Excepted
Public service corporations shall not be required to obtain licenses for work upon or in connection with
their own properiy except as may be provided by other Chapters.
15. Manufacturers Excepted.
Manufacturers shall not be required to obtain licenses for work incorporated within equipment as part
of manufacturing except as may be provided by other Sections of this Code.
16. Assumption of Liability.
This Section shall not be construed to affect the responsibility or liability of any party owning,
operating, controlling or installing the above described work for damages to persons or properly caused
by any defect therein; nor shall the City of Fridley be held as assuming any such liability by reason of
the licensing of persons, firn�s or corporations engaged in such work.
206.08. UTILITY EXCAVATIONS (SEWER & WATER)
1. Permit Required.
Before any work is performed which includes cutting a curb or excavation on or under any street or
curbing a pemut shall be applied for from the City. The Public Works Department shall verify the
location of the watermain and sanitary sewer connections before any excavation or grading shall be
pernvtted on the premises. The permit shall specify the location, width, length and depth of the
necessary excavation. It shall further state the specifications and condition of public facility
restoration. Such specifications sha11 require the public faciliries to be restored to at least as good a
condition as they were prior to commencement of work. Concrete curb and gutter or any street
patching shall be constructed and inspected by the City, unless specified otherwise.
2. Deposit - Required.
A. Where plans and specifications indicate that proposed work includes connection to sanitary
sewer, watermain, a curb cut or any other disruption that may cause damage to the facilities of the
City, the application for pernut shall be accompanied by a two hundred dollar ($200.00) cash
deposit as a guarantee that all restoration work will be completed and City facilities left in an
undamaged condition.
B. The requirement of a cash deposit shall not apply to any public utility corporation franchised to
do business within the City.
�
Ordinance No.
Page 16
3. Maximum Deposi�
No person shall be required to have more than four hundred dollars ($400.00) on deposit with the City
at any one rime by reason of this Section; provided that such deposit sha11 be subjected to compliance
with all the requirements of this Section as to all building permits issued to such person prior to the
deposit being refunded.
4. Inspections.
A. Before any backfilling is done in an excavation approved under this division the City shall be
notified for a review of the conditions of construction.
B. During and after restoration the City Engineer or a designated agent shall inspect the work to
assure compliance. (Ref. 901)
Return of Deposit.
The Public Works Director shall authorize refundment of the deposit when restoration has been
completed to satisfactory compliance with this Section.
Forfeiture of Deposit.
Any person who fails to complete any of the requirements shall forfeit to the City such portion of the
deposit as is necessary to pay for having such work done.
206.09. BUILDING SITE REQi7IREMENTS
1. General.
In addition to the provisions of this Section, all building site requirements of the City's Zoning Code
Chapter 205 and additions shall be followed before a building pernut may be issued
2. Utilities and Street Required.
No building pemut shall be issued for any new construction unless and until all utilities are installed in
the public street adjacent to the parcel of land to be improved and the rough grading of the adjacent
street has been completed to the extent that adequate street access to the pazcel is available.
3. Trailer Prohibitions.
Except in a trailer or mobile home park, the removal of wheels from any trailer or the remodeling of a
hailer through the construction of a foundation or the enclosure of the space between the base of the
trailer and the ground, or through the construction of additions to provide extra floor space will not be
considered as confomung with the City's Building Code in any respect and will therefore be prohibited.
4. Equipment and Material Storage.
No construction equipment and/or material pertaining to construction shall be stored on any properiy
within the City without a valid building pemut. When construcrion is completed and a Certificate of
Occupancy has been issued, any construction equipment or materials must be removed within thirty
(30) days from the issuance date on the Certificate of Occupancy.
57
Ordinance No.
Page 17
5. Construction Work Hours.
It shall be unlawful for any person or company acting as a contractor for payment, to engage in the
cons�uction of any building, structure or utility including but not limited to the making of any
excavation, clearing of surface land and loading or unloading materials, equipment or supplies,
anywhere in the City except between the hours of 7:00 a.m. and 9:00 p.m., Monday through Friday and
between the hours of 9:00 a.m. and 9:00 p.m. on Saturdays and legal holidays. However, such activity
sha11 be lawful if an alternate hours work pernut therefore has been issued by the City upon application
in accordance with requirements of the paragraph below. It shall be unlawful to engage in such work
or activity on Sunday or any legal holiday unless an alternate hours work pemut for such work has first
been issued. Nothing in this Chapter shall be construed to prevent any work necessary to prevent injury
to persons or property at any time.
6. Alternate Hours Work Pemvt
Applications for an alternate hours work pemut shall be made in writing to the Public Works Director
and shall state the name of the applicant and the business address, the location of the proposed work
and the reason for seeking a permit to do such work, as well as the estimated time of the proposed
operations. No such pemut sha11 be issued excepting where the public welfaze will be hanned by
failure to perform the work at the times indicated.
Safeguards.
Waming bamcades and lights shall be maintained whenever necessary for the protection of pedestrians
and traffic; and temporary roofs over sidewallcs sha11 be constructed whenever there is danger from
falling articles or materials to pedestrians.
206.10. DRAINAGE AND GRADING
1. Investigation.
After a building pernut has been applied for and prior to the issuance of said pemut, the City shall
thoroughly investigate the existing drainage features of the property to be used.
2. Obstruction of Natural Drainage Prohibited.
No building pemut shall be issued for the construction of any building on which construction or
necessary grading thereto shall obstruct any natural drainage waterway.
3. Undrainable Lands.
No building permit shall be issued for the construction of any building upon ground which cannot be
properly drained.
4. Protection of Existing Drainage Installations.
A. Where application is rnade for a building permit and subsequent investigation shows that the
property to be occupied by said building is adjacent to a portion of a public road or street
containing a drainage culvert, catch basin, sewer, special ditch or any other artificial dra.inage
structures used for the purpose of draining said property and/or neighboring property, the
applicant shall specifically agree in writing to protect these waterways in such a way that they
shall not be affected by the proposed building construction or grading work incidental thereto.
�
Ordinance No.
Page 18
B. No land shall be altered and no use shall be pemutted that results in water run-off causing
flooding, erosion or deposits of minerals on adjacent properties. Stormwater run-off from a
developed site will leave at no greater rate or lesser quality than the stormwater run-off from the
site in an undeveloped condition. Stormwater run-off sha11 not exceed the rate of run-off of the
undeveloped land for a 24-hour storm with a 1-year return frequency. Detention facilities shall
be designed for a 24-hour storm with a 100-yeaz return frequency. All run-off shall be properly
channeled into a storm drain water course, ponding area or other public facility designed for that
purpose. A land alteration permit sha11 be obtained prior to any changes in grade affecting water
run-off onto an adjacent property.
5. Order to Regrade.
The City may order the applicant to regrade property if existing grade does not conform to any
provision of this Section, if the grade indicated in the prelixninary plan has not been followed, or if the
grade poses a drainage problem to neighboring properties.
206.11. WATERS, WATERWAYS
1. Definition.
As used in this Section, the term waters and/or waterways shall include all public waterways as defined
by Minnesota Statutes, Section 105.38 and shall also include all bodies of water, natural or artificial,
including ponds, streams, lakes, swamps and ditches which are a part of or contribute to the collection,
runoff or storage waters within the City or directly or indirecfly affect the collection, transportation,
storage or disposal of the stonn and surface waters system in the City.
2. Permit Required.
No person sha11 cause or pernut any waters or waterways to be created, damnied, altered, filled,
dredged or eliminated, or cause the water level elevation thereof to be artificially altered without first
securing a pernut from the City, State or watershed management organization as appropriate.
3. Application for Pernut.
Applications for pernuts required by the provisions of this Section shall be made in writing upon
printed forms fumished by the City Clerk.
4. Scope of Proposed Work.
Applications for pernuts required by this Section shall be accompanied with a complete and detailed
description of the proposed work together with complete plans and topographical survey map clearly
illustrating the proposed work and its effect upon existing waters and water handling facilities.
5. Fees.
A fee of twenty-five dollars ($25.00) shall be paid to the City and upon the filing of an applica.tion for a
pernut required by the provisions of this Section to defray the costs of investigating and considering
such application.
206.12. PENALTIES
Any violation of this Chapter is a misdemeanor and is subject to a11 penalties provided for such violations
under the provisions of Chapter 901 of this Code.
59
Ordinance No.
Page 19
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS _ DAY OF
2003.
ATTEST:
DEBRA A. SKOGEN, CTTY CLERK
First Reading: February 23, 2004
Second Reading:
Publication:
;. 1
SCOTT J. LUND, MAYOR
�
�
cm aF
FRIDLE7
FROM:
SUBJECT:
AGENDA ITEM
COUNCIL MEETING OF FEBRUARY 23, 2004
WILLIAM W. BURNS, CITYMANAGER,���
RICHARD D. PRIBYL, FINANCE DIRECTOR
RESOLUTIONPROi�IDING FOR THE ISSUANCE OF THE
CITY'S $1,790,000 GENERAL OBLIGATIONBONDS, SERIES 2004A
DATE: February l9, 2004
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 $1,790,000 in General Obligation Water Revenue Bonds. As
you will recall, these bonds are being issued to provide funds for the needed improvements that are part of
the City's 5 Year Capital Improvement Program. The main projects that will be funded by this issue are
as follows:
• Replacement of the Marion Hills Water Tower
� Reconditioning of the Commons Water Treatment Plant
• Repair of the Commons Park Water Tower
• Water main Lining
The debt service on the water bonds are being provided by the revenue generated through the Utility
Fund.
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, February 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
61
RESOLUTION NO. , 2004
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,790,000 GENERAL
OBLIGATION WATER REVENUE BONDS, SERIES 2004A AND PLEDGING FOR THE
SECURITY THEREOF NET REVENUES
WHEREAS, the City of Fridley, Minnesota (the "City"), owns and operates a municipal water system
as sepazate revenue-producing public utility (the "System") and there are outstanding: (i) $620,000
original principal amount of General Obligation Water Revenue Bonds, Series 1992B, dated
November 1, 1992; (ii) $485,000 original principal amount of General Obligation Bonds, Series
1994A, dated December 1, 1994; (iii) $2,935,000 original principal amount of General Obligation
Bonds, Series 1996A, dated November 1, 1996; and (iv) $1,185,000 original principal amount of
General Obligation Water Revenue Refunding Bonds, Series 1998A, dated May 1, 1998, which aze
payable from the net revenues of the System; and
WHEREAS, on February 1, 2005, the City will call for redemption the General Obligation Bonds,
Series 1996A, dated November 1, 1996 (the "Refunded Bonds"); and
WHEREAS, all the bonds referenced in paragraph A above, except the Refunded Bonds, are
collectively referred to as the "Outstanding Bonds"; and
WHEREAS, the City Council has heretofore determined that it is necessary and expedient to issue
$1,790,000 General Obligation Water Revenue Bonds, Series 2004A (the "Bonds" or individually, a
"Bond"), pursuant to Minnesota Statutes, Section 444.075 and Chapter 475 to finance improvements
to the System (the "Project"); and
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
WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Manager,
or designee, at the offices of Ehlers at 12:00 noon this same day pursuant to the Terms of Proposal
established for the Bonds; and
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:
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 is directed
to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good
faith checks or drafts.
Bond Terms.
Ori�inal Issue Date; Denominations; and Maturities. The Bonds shall be dated March 23, 2004, 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
62
multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds sha11 mature on
February 1 in the years and amounts as follows:
Year
2008
2009
2010
2011
2012
2013
Amount
$ 50,000
50,000
50,000
50,000
185,000
175,000
Year
2014
2015
2016
2017
2018
2019
Amount
$185,000
190,000
200,000
205,000
220,000
230,000
As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory
sinking fund redemption and fmal maturity amounts conforming to the foregoing principal repayment
schedule, and corresponding additions may be made to the provisions of the applicable Bond(s).
Book Entrv Onlv Svstem. 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:
The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book
Entry Only Period"), sha11 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 Denomina.tions for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
Upon initial issuance, ownership of the Bonds sha11 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").
With respect to the Bonds neither the City nor the Bond Registraz 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 aze credited on the record date identified in a listing
attached to the omnibus proxy.
The City and the Bond Registraz 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,
63
as paying agent hereunder, sha11 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.
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 pazagraph 10 hereof, references to the Nominee hereunder shall refer to
such new Nominee.
So long as any Bond is registered in the name of a Nominee, a11 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 Representaxions").
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.
In connection with any notice or other communication to be provided to the Holders pursuant to this
Resolution by the City or Bond Registraz 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.
Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any
paying agency/bond registrar agreement, sha11 agree to take any actions necessary from time to time
to comply with the requirements of the Letter of Representations.
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 pazagraph 5 hereof, make a notation of the reduction in
principal amount on the panel provided on the Bond stating the amount so redeemed.
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:
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.
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
64
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 sha11
designate at that time, in accordance with paragraph 10 hereof. To the extent that the Beneficial
Owners are designated as the transferee by the Holders, in accordance with paragraph 10 hereof, the
Bonds will be delivered to the Beneficial Owners.
Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10.
Letter of Renresentations. 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.
Purpose; Cost. The Bonds shall provide funds to finance the Project. The total cost of the Project,
which shall include a11 costs enumerated in Minnesota. Statutes, Section 475.65, is estimated to be at
least equal to the amount of the Bonds. The City covenants that it sha11 do a11 things and perform all
acts required of it to assure that work on the Project proceeds with due diligence to completion and
that any and a11 permits and studies required under law for the Project are obtained.
Interest. The Bonds sha11 bear interest payable semiannually on February 1 and August 1 of each
yeaz (each, an"Interest Payment Date"), commencing August 1, 2004, 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�ear Interest Rate Maturitv Year Interest Rate
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Redemption. All Bonds maturing on February 1, 2015, and thereafter, shall be subject to redemption
and prepayment at the option of the City on February 1, 2014, 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, those Bonds remaining unpaid which have the latest maturity
date shall be prepaid first; and if only part of the Bonds having a common maturity date aze called for
prepayment, the specific Bonds to be prepaid sha11 be chosen by lot by the Bond Registraz. Bonds or
portions thereof called for redemption shall be due and payable on the redemption date, and interest
thereon sha11 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 (30)
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
65
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 such Bond, without service
charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and
of any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so
surrendered.
Bond Re i�ar. U.S. Bank National Association, in St. Paul, Minnesota, is appointed to act as bond
registraz and transfer agent with respect to the Bonds (the "Bond Registraz"), 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 sha11 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 of this resolution.
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:
..
UNITED STATES OF AMERICA
STATE OF MINNESOTA
ANOKA COUNTY
CITY OF FRIDLEY
R- $
GENER.AL OBLIGATION WATER REVENUE BOND OF 2004A
Interest Rate Maturitv Date Date of Ori�inal Issue CUSIP
February l, 20_ March 23, 2004
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF FRIDLEY, ANOKA COLTNTY, 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 eazlier 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 yeaz (each, an"Interest Payment Date"), commencing August 1,
2004, 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 beaz 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 a,ny, on this Bond are
payable upon presenta.tion and surrender hereof at the principal office of U.S. Bank National
Association, in St. Paul, 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 Registraz
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 da.te
(the "Special Record Date") fixed by the Bond Registraz 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 aze 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 the
book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the
Depository or its Nominee.
Redemption. All Bonds of this issue (the "Bonds") maturing on February l, 2015, and thereafter, are
subject to redemption and prepayment at the option of the Issuer on February 1, 2014, and on any
date thereafter at a price of paz plus accrued interest. Redemption may be in whole or in part of the
Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the
latest maturity date sha11 be prepaid first; 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.
67
Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the
Bonds at least thirty (30) days prior to the date fixed for redemption.
Selection of Bonds for Redemption; Partial Redemvtion. 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 sha11 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 $S,OOO 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 such Bond, without
service charge, a new Bond or Bonds of the same series having the same stated maturity and interest
rate and of any Authorized Denomination or Denominations, as requested by such 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
$1,790,000, all of like date of original issue and tenor, except as to number, maturity, interest rate,
denomina.tion and redemption privilege, which Bond has been issued pursuant to and in full
conformity with the Home Rule Charter of the City and the Constitution and laws of the State of
Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on February 23,
2004 (the "Resolution"), for the purpose of providing money to finance improvements to the
municipal water system within the jurisdiction of the Issuer (the "System"). This Bond is payable out
of the General Obligation Water Revenue Bonds, Series 2004A 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
t�ing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; 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 subject 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 aze 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 sha11 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 on the reverse side hereof 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
Registraz sha11 be affected by notice to the contrary.
Authentieation. This Bond shall not be valid or become obligatory for any purpose or be entitled to
any security�uniess the Certificate of Authentication hereon sha11 have been executed by the Bond
Registrar.
Qualified Tax-Exempt Obligation. 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;
that the Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and
collect charges for the service, use and availability of the System at the times and in amounts
necessary to produce net revenues, together with other sums pledged to the payment of the Bonds,
adequate to pay all principal and interest when due on the Bonds; and that the Issuer will levy a
direct, annual, irrepealable ad valorem tax upon all of the taxable property of the Issuer, without
limitation as to rate or amount, for the years and in amounts sufficient to pay the principal and
interest on the Bonds of this issue as they respectively become due, if the net revenues from the
System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient
therefor; 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 limita.tion 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: U.S. BANK NATIONAL
ASSOCIATION
Payable at: U.S. BANK NATIONAL
ASSOCIATION
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
Bond Registrar
By
Authorized Signature
CITY OF FRIDLEY, ANOKA
COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
City Manager
.•
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 joint 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.
ASSIGNMENT
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 Registraz 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.)
70
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
71
Execution: Temvorary 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.
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 Registraz 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 March 23, 2004. The Certificate of Authentication so
executed on each Bond shall be conclusive evidence that it has been authenticated and delivered
under this resolution.
Registration; Transfer; Exchan�e. The City will cause to be kept at the principal office of the Bond
Registrar a bond register in which, subject to such reasonable regulations as the Bond Registraz 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 "beazer" 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 Registraz. Whenever any Bonds aze 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 cancelled 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 Registraz, 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 subject 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 City Manager is hereby authorized to negotiate and
execute the terms of said agreement.
Ri ng ts 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.
Interest Pavment; 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 (15th) 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 sha11 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 Registraz to the Holders not
less than ten (10) days prior to the Special Record Date.
Treatment of Registered 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 (subject 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 sha11 be affected by notice to the contrary.
Deliverv; A�plication of Proceeds. The Bonds when so prepared and executed sha11 be delivered by
the City Manager to the Purchaser upon receipt of the purchase price, and the Purchaser sha11 not be
obliged to see to the proper application thereof.
Fund and Accounts. For the convenience and proper administration of the moneys to be borrowed
and repaid on the Bonds, and to make adequate and specific security to the Purchaser and holders
from time to time of the Bonds, there is hereby created a special fund to be designated the "General
Obligation Water Revenue Bonds, Series 2004A Fund" (the "Fund") to be administered and
maintained by the City Manager 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 herein authorized and the interest thereon shall have been fully
paid. The Operation and Maintenance Account (the "Operation and Maintenance Account")
heretofore established by the City shall continue to be maintained in the manner heretofore provided
by the City. All moneys remaining after paying or providing for the items set forth in the resolution
establishing the Operation and Maintenance Account shall constitute and are referred to as "net
revenues" until the Bonds and the Outstanding Bonds have been paid. There shall be maintained in
the Fund the following sepazate accounts to which shall be credited and debited all net revenues of
the System as hereinafter set forth. The Finance Director and all officials and employees concerned
therewith shall establish and maintain financial records of the receipts and disbursements of the
System in accordance with this resolution. In such records there shall be established and maintained
accounts of the Fund for the purposes as follows:
73
Construction Account. To the Construction Account there shall be credited the proceeds of the sale
of the Bonds, less accrued interest received thereon, less any amount paid for the Bonds in excess of
$1,767,625. From the Construction Account there shall be paid all costs and expenses of the Project,
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. Any balance remaining in the
Construction Account after completion of the Project shall be transferred to the Debt Service
Account.
Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be
credited to, the Debt Service Account: (1) the net revenues of the System not otherwise pledged and
applied to the payment of other obligations of the City, in an amount, together with other funds which
may herein or hereafter from time to time be irrevocably appropriated to the account sufficient to
meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and
interest of the Bonds; (2) all accrued interest received upon delivery of the Bonds; (3) any amount
paid for the Bonds in excess of $1,767,625; (4) any collections of all taxes which may hereafter be
levied in the event that the net revenues and other funds herein pledged to the payment of the
principal and interest on the Bonds are insufficient therefor; (5) all funds remaining in the
Construction Account after completion of the Project and payment of the costs thereof; (6) all
investment earnings on funds held in the Debt Service Account; and (7) any and all other moneys
which are properly available and are appropriated by the goveming body of the City to the Debt
Service Account. The amount of any surplus remaining in the Debt Service Account when the Bonds
and interest thereon are paid shall be used consistent with Minnesota Statutes, Section 475.61,
Subdivision 4.
The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on
the Bonds or any other bonds hereafter issued and made payable from the Fund. 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 direcdy 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 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 axbitrage regulations may be invested without regard to yield sha11 not be invested at a yield in
excess of the applicable yield restrictions imposed by a.rbitrage regulations on such investments after
taking into account any applicable "temporary periods" or "minor portion" made available under the
federal arbitrage regulations. In addition, Bond proceeds and money in the Fund sha11 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").
Covera�e Test• Pled�?e of Net Revenues and Excess Net Revenues. It is hereby found, determined
and declaxed that the net revenues of the System are sufficient in amount to pay when due the
principal of and interest on the Bonds and the Outstanding Bonds and a sum at least five percent in
excess thereof, and the net revenues of the System are hereby pledged on a parity with the
Outstanding Bonds for the payment of the Bonds and shall be applied for that purpose, but solely to
the extent required to meet the principal and interest requirements of the Bonds as the same become
due.
Nothing contained herein shall be deemed to preclude the City from making further pledges and
appropriations of the net revenues of the System for the payment of other or additional obligations of
the City, provided that it has first been detertnined by the City Council that the estimated net
74
revenues of the System will be sufficient, in addition to all other sources, for the payment of the
Bonds and such additional obligations and any such pledge and appropriation of the net revenues may
be made superior or subordinate to, or on a parity with the pledge and appropriation herein.
Covenant to Maintain Rates and Char�es. In accordance with Minnesota Statutes, Section 444.075,
the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect
charges for the service, use, availability and connection to the System at the times and in the amounts
required to produce net revenues adequate to pay all principal and interest when due on the Bonds
and the Outstanding Bonds. Minnesota Statutes, Section 444.075, Subdivision 2, provides as
follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general
or special obligations when the other revenues are insufficient to meet the obligations".
General Obligation Pled�. 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 ta��ing powers of the City shall
be and are irrevocably pledged. If the net revenues of the System appropriated and pledged to the
payment of principal and interest on the Bonds, together with other funds irrevocably appropriated to
the Debt Service Account shall at any time be insufficient to pay such principal and interest when
due, the City covenants and agrees to levy, without limita.tion as to rate or amount an ad valorem t�
upon all taxable property in the City sufficient to pay such principal and interest as it becomes due. If
the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due
on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of
the City which are available for such purpose, and such other funds may be reimbursed without
interest from the Debt Service Account when a sufficient balance is available therein.
Defeasance. When a11 Bonds have been discharged as provided in this pazagraph, a11 pledges,
covenants and other rights granted by this resolution to the registered holders of the Bonds shall
cease, to the extent pernutted by law. The City may dischazge 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 theu terms, by depositing with the Bond Registraz 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,
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 or, if notice of redemption as herein required has been duly provided for, to such
earlier redemption date.
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 andlor covenants as follows:
Not later than sixty 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
75
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,
project 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 Project, 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 5% of
the proceeds of the Bonds.
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.
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 18
months after payment of the Reimbursement Expenditure or one year after the date on which the
Project to which the Reimbursement Expenditure relates is first placed in service, but not more than
three years after the date of the Reimbursement Expenditure.
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.
Certificate of Registration. 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 ha�e been entered in the Director of Anoka County
Property Records and Taxation's Bond Register.
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 mazketability of the Bonds as the same appear
from the books and records under their custody and control or as otherwise known to them, and a11
such certified copies, certificates and �davits, including any heretofore furnished, shall be deemed
representa.tions of the City as to the facts recited therein.
Ne�ative Covenant as to Use of Proceeds and Proiect. The City hereby covenants not to use the
proceeds of the Bonds or to use the Project, 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.
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
76
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 if the Bonds (together with other
obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed
the sma11-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:
The Bonds are issued by a governmental unit with general taxing powers;
No Bond is a private activity bond;
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
The aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the
City (and all subordinate entities thereof, and a11 entities treated as one issuer with the City) during
the calendar year in which the Bonds axe issued and outstanding at one time is not reasonably
expected to exceed $5,000,000, all within the meaning of Section 148(�(4)(D) of the Code.
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:
The Bonds are issued after August 7, 1986;
The Bonds are not "private activiTy bonds" as defined in Section 141 of the Code;
The City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section
265(b)(3) of the Code;
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 2003 will not exceed $10,000,000; and
Not more than $10,000,000 of obligations issued by the City during this calendaz year 2003 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.
Continuing 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:
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,
77
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.
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.
Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSR.B 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.
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 of the City, or any other o�cer 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 (a) consistent with the requirements under the Rule, (b) required by
the Purchaser of the Bonds, and (c) accepta.ble to the Officers.
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.
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, N.A., Minneapolis,
Minnesota on the closing date for further distribution as directed by the City's financial advisor,
Ehlers.
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
DAY OF FEBRUARY, 2004.
ATTEST:
DEBR.A A. SKOGEN — CITY CLERK
SCOTT J. LUND — MAYOR
FI:3
�
L
QTY OF
FRIDLEY
��1�
AGENDA ITEM
COUNCIL MEETING OF FEBRUARY 23, 2004
WILLIAM W. BURNS, CITYMANAGER ��p, I°
�
FROM: RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT: RESOL UTION PROVIDING FOR THE ISSUANCE OF THE
CITY'S $3,920,000 GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 2004B
DATE: February l9, 2004
Attached is the resolution provided to us by Mary Ippel from the firm of Briggs & Morgan. The
resolution is for the sale of $3,920,000 in General Obligation Tax Increment Refunding Bonds, Series
2004B. As you will recall, these bonds are being issued to provide for a refmancing of the
$4,185,000 Taxable G.O. Increment Bonds from 1998B. These were the bonds used to acquire the
property on which Medtronic has constructed their new World Headquarters. As in all of the tax
increment bonds that the City has sold, the taxes being generated in the form of tax increment aze
being pledged for the repayment of the bond.
It is estimated that the present value savings by doing this issue will total $176,000.
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. We just heard during the period in which this memo was being written, that we once
again were assigned a Aal rating, which is the highest rating a City of our size is capable of attaining.
It seemed very evident during this review that the overriding reason for the reaffumation of the Aal
rating was the amount of funds that the City had in reserve to fall back on.
Since the bids aze not due until Monday, February 23`d, 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
79
RESOLUTION NO. , 2004
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $3,920,000 TAXABLE GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS, SERIES 2004B,
PLEDGING FOR THE SECURITY TAEREOF TAX
INCREMENTS AND AUTHORIZING EXECUTION OF
A TAX INCREMENT PLEDGE AGREEMENT
WHEREAS, the City of Fridley, Minnesota (the "City") and the Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota have heretofore created Redevelopment Project
No. 1(the "Redevelopment Project Area") and created Tax Increment Financing Districts therein (the
"Ta�c Increment Districtss") herein and approved Tax Increment Financing Plans therefor (the Tax
Increment Financing Plans and any amendments thereto being collectively, the "Plan"); and
WHEREAS, the City previously issued Taxable General Obligation Tax Increment Bonds, Series
1998B, dated October 1, 1998 (the "Prior Bonds"); and
WHEREAS, the City Council deems it desirable and in the best interests of the City to ca11 for
redemption and prepayxnent on May 1, 2004 (the "Redemption Date"), all of the Prior Bonds which
mature on and after February 1, 2005 in accordance with the provisions of the Resolution adopted by
the City Council on Septernber 28, 1998, authorizing issuance of the Prior Bonds (the "Prior
Resolution") in order to reduce debt service costs to the City; and
WHEREAS, $3,850,000 of the principal amount of the Prior Bonds which mature on and after
February 1, 2005, are callable on May l, 2004 and any date thereafter at paz plus accrued interest as
provided in the Prior Resolution; and
WHEREAS, the City Council has determined and declazed that it is necessary and expedient to issue
$3,920,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2004B (the
"Bonds") pursuant to Minnesota. Statutes, Chapter 475, which will be sufficient to pay on May 1,
2004, all of the Prior Bonds (the "Refunding"); and
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
WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Finance
Director, or designee, at the offices of Ehlers at 12:00 Noon, this same day pursuant to the Terms of
Proposal established for the Bonds; and
WHEREAS, it has been determined that the interest on the obligations is taxable and the
requirements as to public sale referred to in Minnesota Statutes, Section 475.60, Subdivision 1 shall
not apply as permitted by Minnesota Statutes, Section 475.60, Subdivision 2(6); and
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 City Council of the City of Fridley, Minnesota, as
follows:
:�
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 is directed to retain
the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good faith
checks or drafts.
Bond Terms.
Title• Ori�inal Issue Date• Denominations• Maturities; Term Bond Ontion. The Bonds shall be dated
March 23, 2004, 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"). The
Bonds sha11 mature on February 1 in the years and amounts as follows:
Year Amount
2005 $230,000
2006 465,000
2007 485,000
2008 500,000
2009 520,000
2010 545,000
2011 570,000
2012 605,000
As may be requested by the Purchaser, one or more term Bonds may be issued having manda.tory
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).
81
Book Entrv Onl�vstem. 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:
The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book
Entry Only Period"), sha11 at a11 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.
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").
With respect to the Bonds neither the City nor the Bond Registrar sha11 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 ixn.mediately 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 Register 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.
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 a11 principal of and premium, if any, and interest on the Bonds
only to or upon the Holder of 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.
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 hereof, references to the Nominee hereunder shall refer to
such new Nominee.
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 Registraz 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,
82
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").
All transfers of beneficial ownership interests in each Bond issued in book-entry form sha11 be limited
in principal amount to Authorized Denominations and sha11 be effected by procedures by the
Depository with the Participants for recording and transferring the ownership of beneficial interests in
such Bonds. �
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.
Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any
paying agency/bond registraz agreement, shall agree to take any actions necessary from time to time
to comply with the requirements of the Letter of Representations.
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 pazagraph 5 hereof, make a notation of the reduction in
principal amount on the panel provided on the Bond sta.ting the amount so redeemed.
Termination of Book-Entr�Y Svstem. Discontinuance of a particular Depository's services and
termination of the book-entry only system may be effected as follows:
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 ternunate the services of the Depository with respect to the
Bond if it determines that the Depository is no longer able to carry out its fiznctions 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.
83
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 hereof. To the extent that the Beneficial
Owners are designated as the transferee by the Holders, in accordance with paragraph 10 hereof, the
Bonds will be delivered to the Beneficial Owners.
Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10 hereof.
The provisions in the Letter of Representations are incorporated herein by referenced 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 Representa.tions sha11 control.
Purpose. The Bonds shall finance the Refunding. It is hereby found, determined and declazed that
the Refunding is pursuant to Minnesota Sta.tutes, Section 475.67 and shall result in a reduction of
debt service cost to the City. Pursuant to a Tax Increment Pledge Agreement dated October 1, 1998,
previously entered into between the Authority and the City, tax increments derived from the Tax
Increment Districts (the "Tax Increments") have been pledged to the payment of the Prior Bonds.
Pursuant to a Taa� Increment Pledge Agreement dated March 23, 2004 (the "Pledge Agreement") to
be entered into between the Authority and the City, Tax Increments will now be pledged to the
payment of the Bonds.
Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each
year (each, an"Interest Payment Date"), commencing August 1, 2004, 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:
Maturity Year Interest Rate
2005 %
2006
2007
2008
2009
2010
2011
2012
Redemption. Bonds maturing on February 1, 2010, and thereafter, shall be subject to redemption and
prepayment at the option of the City on February l, 2009, and on any date thereafter at a pr�ce of par
plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, those Bonds remaining unpaid which have the latest maturity date sha11 be
prepaid first; and if only part of the Bonds having a common maturity date axe 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 Registraz 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 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..
Bond R�istraz. U.S. Bank National Association, in St. Paul, 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, a11 pursuant to any contract the City and Bond
Registrar sha11 execute which is consistent herewith. The Bond Registraz 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 in paragraph 12 of this resolution.
Form of Bond. The Bonds, together with this Bond Registrar's Certificate of Authentication, the
form of Assignment and the registration information thereon, sha11 be in substantially the following
form:
�
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF FRIDLEY
�
�
TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING
BOND, SERIES 2004B
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
MARCH 23, 2004
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF FRIDLEY, ANOKA COLTNTY, 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 yeax (each, an"Interest Payment Date"), commencing August 1,
2004, 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 principal office of U.S. Bank National
Association, in St. Paul, 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 Registraz
and at the address appeazing 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 sha11 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 the
book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the
Depository or its Nominee.
THE ISSUER HAS ELECTED TO ISSUE THIS BOND AS A TAXABLE BOND, AND THE
1NTEREST ON THIS BOND IS INTENDED TO BE INCLUDED IN GROSS INCOME FOR
FEDER.AL 1NCOME TAXATION PURPOSES AND, TO THE SAME EXTENT, INCLUDED IN
BOTH GROSS INCOME AND TAXABLE NET INCOME FOR STATE INCOME TAXATION
PURPOSES.
:.
Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2010, and thereafter, are
subject to redemption and prepayment at the option of the Issuer on February 1, 2009, 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, those Bonds remaining unpaid which have the
latest maturity date shall be prepaid first; 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 Registraz 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,
sha11 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 sha11 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 Registraz 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 sha11 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
$3,920,000, a11 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
Constitution, Charter of the Issuer, and laws of the State of Minnesota and pursuant to a resolution
adopted by the City Council on February 23, 2004 (the "Resolution"), for the purpose of providing
money to redeem on May 1, 2004, the outstanding T�able General Obligation Tax Increment Bonds,
Series 1998B, dated October 1, 1998, originally issued to refund the Issuer's General Obligation
Temporary Tax Increment Bonds, Series 1995, dated November 1, 1995. This Bond is payable out of
the Taxable General Obligation Tax Increment Refunding Bonds, Series 2004B 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 t�ing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchan�e; Resolution. The Bonds aze 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 subject 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 Registraz 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 Registraz. Thereupon
87
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 su�cient 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 Registered 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 on the reverse side hereof with respect to the Record Date) and for a11
other purposes, whether or not this Bond sha11 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
Registrax.
Taxable Interest. The interest on this Bond is included in the gross income of the Holder hereof for
purposes of United States income tax and, to the same extent, included in both gross income and
taxable net income for purposes of State of Minnesota income tax.
IT IS HEREBY CERTIFIED AND RECITED that a11 acts, conditions and things required by the
Constitution and laws of the State of Minnesota 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 on the da.te of its issuance and
delivery to the original purchaser, does not exceed any constitutional, statutory or 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 the Mayor and the City
Manager, the seal having been intentionally omitted as permitted by law.
E���3
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the Bonds
described in the Resolution
mentioned within.
U.S. BANK NATIONAL
ASSOCIATION,
St. Paul, Minnesota
Bond Registrar
:
Authorized Signature
Registrable by: U.S. BANK NATIONAL ASSOCIATION
Payable at: U.S. BANK NATIONAL ASSOCIATION
CITY OF FRIDLEY,
ANOKA COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Manager
�
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 joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for under the Uniform
(Cust) (Minor) (State)
Transfers to Minors Act
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and
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.)
.�
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
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Execution; Temporarv 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 the Mayor and the 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 fizrther that both of
such signatures may be printed (or, at the request of the Purchaser, photocopied) facsimiles and the
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 the City Manager. Such temporary bonds shall, upon the
printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled.
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 Registraz shall insert as a date of registration
the date of original issue, which date is March 23, 2004. The Certificate of Authentication so
executed on each Bond shall be conclusive evidence that it has been authenticated and delivered
under this resolution.
Re�istration; Transfer; Exchan�e. The City will cause to be kept at the principal office of the Bond
Registrar a bond register in which, subject to such reasonable regulations as the Bond Registraz 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 o�ce of the Bond Registrar, the City sha11
execute (if necessary), and the Bond Registraz sha11 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 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 cancelled by the Bond Registrar and thereafter disposed of as directed by the CiTy.
92
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 subject 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 Auditor is hereby authorized to negotiate and execute
the terms of said agreement.
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.
Interest Pavment; Record Date. Interest on any Bond sha11 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 (15th) 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 Regulaz 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 Registraz 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 (10) days prior to the Special Record Date.
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 (subject to the payment provisions in pazagraph 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.
Deliverv' Application of Proceeds. The Bonds when so prepared and executed shall be delivered by
the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not
be obliged to see to the proper application thereof.
Fund and Accounts. For the convenience and proper administration of the moneys to be borrowed
and repaid on the Bonds, and to make adequate and specific security to the Purchaser and Holders
from time to time of the Bonds, there is hereby created a special fund to be designated the "Taxable
General Obligation Tax Increment Refunding Bonds, Series 2004B Fund" (the "Fund") to be
administered and maintained by the Finance Director as a bookkeeping account sepazate 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 herein authorized and the interest
thereon shall have been fully paid. There shall be maintained and created in the fund the "Payment
Account" and a"Debt Service Account".
Pavment Account. The proceeds of the Bonds, less accrued interest and any unused discount shall be
deposited in the Payment Account. On or prior to May 1, 2004, the Finance Director shall transfer
$ of Bond proceeds from the Payment Account to the paying agent for the Prior
�
Bonds, which sum is sufficient, together with other funds on deposit in debt service fund for the Prior
Bonds, to pay the principal and interest of the Prior 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 a11 costs of issuance and
payment of the Prior Bonds shall be transferred to the Debt Service Account.
Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocable
appropriated and there shall be credited: (1) accrued interest; (2) unused discount; (3) any balance
remaining on May 2, 2004, in the Debt Service Account created by the Prior Resolution for the Prior
Bonds; (4) Tax Increments derived from the Tax Increment Districts as specified in the Pledge
Agreement which were heretofore pledged for the payment of the Prior Bonds and are herein pledged
to the payment of the Bonds; (5) a11 investment earnings on funds in the Debt Service Account; (6)
any taxes which may hereafter be levied in the event that the Tax Increments and other sums herein
pledged to the payment of the Bonds are insufficient therefor; and (7) 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 amount of any surplus remaining in the Debt Service Account when the Bonds and
interest thereon are paid shall be used consistent with Minnesota Statutes, Section 4�5.61,
Subdivision 4.
Tax Increments; Use of Tax Increments. The City hereby determines to retain one hundred percent
(100%) of the capiured net tax capacity for purposes of tax increment financing. The County Auditor
shall, in each such year, compute the local tax rate to be extended against the captured net tax
capacity in the manner provided in Minnesota. Statutes, Section 469.177, Subdivision 3, and the tax
generated thereby shall constitute the Tax Increments for the yeaz in which it is received. The City
hereby appropriates the Tax Increments remitted by the Authority to the City derived from the Tax
Increment Districts to the Debt Service Account which appropriation shall continue until all of the
Bonds, and any additional bonds payable from the Debt Service Account created for the Bonds, aze
paid or discharged. The City hereby expressly reserves the right to use the Tax Increments to finance
costs set forth in the Plan not fmanced hereby or to finance costs of other projects to be undertaken
from time to time within the Redevelopment Project Area in accordance with the Plan, as it may from
time to time be amended.
Reservation of Rights. Notwithstanding any provisions herein to the contrary, the City and the
Authority reserve the right to terminate, reduce or apply to other lawful purpose the Tax Increments
herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner
permitted by law.
Pledge Agreement; Approval; Execution. The Pledge Agreement is hereby approved in substantially
the form presented to the City Council; and the Mayor and City Manager aze hereby authorized to
execute the same on behalf of the City.
No Tax Lew; Coverage Test. The Tax Increments required to be remitted to the City pursuant to the
Pledge Agreement and herein pledged to the payment of the Bonds are such that if collected in full
they will produce at least five percent (5%) in excess of the amount needed to meet when due the
principal and interest payments on the Bonds. Accordingly, no ad valorem taxes upon all taxable
property in the City are required to be levied for the payment of the Bonds prior to their issuance as
permitted by Minnesota Sta.tutes, Section 469.060.
Defeasance. When a11 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 sha11
cease, to the extent permitted by law. 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
94
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,
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 or, if notice of redemption as herein required has been duly provided for, to such
earlier redemption date.
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 ta�cing 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.
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:
Provide or cause to be provided to each nationally recognized municipal securities information
repository ("NRMSIR") and to the appropriate sta.te 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.
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.
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.
The City agrees that its covenants pursuant to the Rule set forth in this paragraph 22 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 Manager 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 O�cers.
95
Notice of Call for Redemption. The Clerk is hereby authorized and directed to give mailed notice of
redemption prior to the Redemption Date to the paying agent for the Prior Bonds and to all registered
Holders of the Prior Bonds to be redeemed. The Notice of Redemption shall be in substantially the
form attached hereto as Exhibit A.
Prior Bonds Securitv. 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.
Certificate of Registration. The Director of Anoka County Property Records and Taxation is hereby
directed to file a certified copy of this resolution with the Director'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 Director of Anoka County
Property Records and Taxation's Bond Register and that the Pledge Agreement has been filed.
Records and Certificates. The officers of the City aze 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 a11
such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed
representations of the City as to the facts recited therein.
Taxable Status of the Bonds. It is hereby determined that the Bonds are to be issued as fully ta�cable
obligations and the interest received on the Bonds is to be included in the gross income of the Holder
of the Bond for federal income taxation purposes and, to the same extent, included in both gross
income and taxable net income for state income taxation purposes.
Supplemental Resolution. The Prior Resolution authorizing the issuance of the Prior Bonds is hereby
supplemented to the extent necessary to give effect to the provisions hereof.
Severabilitv. If any section, paragraph or provision of this resolution sha11 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.
Pavment 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 the City's financial advisor,
Ehlers.
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
DAY OF FEBRUARY, 2004.
ATTEST:
DEBRA A. SKOGEN — CITY CLERK
SCOTT J. LUND — MAYOR
.,
/
�
CITY OF
FRIDLEY
YC��
FROM:
AGENDA ITEM
COUNCIL MEETING OF FEBRUARY 23, 2004
WILLIAM W. B URNS, CITY MANAGER ��'`
RICHARD D. PRIBYL, FINANCE DIRECTOR
SUBJECT: RESOL UTION PROVIDING FOR THE ISSUANCE OF THE
CITY'S $1,285,000 GENERAL OBLIGATIONREFUNDING BONDS, SERIES
2004C
DATE: February 19, 2004
Attached is the resolution provided to us by Mary Ippel from the firm of Briggs & Morgan. The
resolution is for the sale of $1,285,000 in General Obligation Refunding Bonds, Series 2004C. These
bonds are being issued to provide for a refinancing of the $2,935,000 Taxable G.O. Bonds 1996A.
These bonds will be used as an advance refunding and at the time of the first ca11 date will be used to
retire the 1996A issue. As in all of the other bonds that the City has sold for use with the water utility,
water revenues aze pledged for the repayment of the bonds.
It is estimated that the present value savings by doing this issue will total $51,100.
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. We just heard during the period in which this memo was being written, that we once
again were assigned a Aal rating, which is the highest rating a City of our size is capable of attaining.
It seemed very evident during this review that the overriding reason for the re�rmation of the Aal
rating was the amount of funds that the City had in reserve to fa11 back on.
Since the bids aze not due until Monday, February 23, 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 undervvriter or
syndicate.
R.DP/me
Atta.chment
ti�
RESOLUTION NO. , 2004
RESOLUTION ACCEPTING PROPOSAL ON THE COMPETITIVE NEGOTIATED
SALE OF $1,225,000 GENERAL OBLIGATION REFUNDING BONDS,
SERIES 2004C; PLEDGING FOR THE SECURITY THEREOF WATER AND
STORM SEWER SYSTEM NET REVENUES, AND THE LEVY OF TAXES
WHEREAS, the City Council of the City of Fridley, Minnesota (the "City"), has heretofore issued
General Obligation Bonds, Series 1996A, dated November 1, 1996 (the "Prior Bonds") pursuant to
the resolution of the City Council adopted November 4, 1996 (the "Prior Resolution") for the purpose
of providing money to finance the construction of (i) various improvements to the water system (the
"Water Project"); (ii) road improvements (the "Improvement Project"); and (iii) various storm sewer
improvements (the "Storm Sewer Project"); and
WHEREAS, the City owns and operates a municipal water system (the "Water System") and storm
sewer system (the "Storm Sewer System") as separate revenue producing public utilities (the Water
System and the Storm Sewer System are collectively referred to as the "System") and there aze
outstanding: (i) General Obligation Water Revenue Bonds, Series 1992B, dated November 1, 1992;
(ii) General Obligation Bonds, Series 1994A, dated December 1, 1994; (iii) General Obligation
Bonds, Series 1996A, dated November 1, 1996; (iv) General Obligation Water Revenue Refunding
Bonds, Series 1998A, dated May 1, 1998; and (v) General Obligation Water Revenue Bonds, Series
2004A, dated March 23, 2004(together, the "Outstanding Obligations"), which are payable from the
net revenues of the System and would constitute a prior lien upon the net revenue of the System; and
WHEREAS, the portion of the Prior Bonds issued to finance Improvement Project will be paid off on
February 1, 2005 with available City funds; and
WHEREAS, $1,135,000 in principal amount of the Prior Bonds which mature in the years 2006 and
thereafter aze subject to redemption and prepayment at the option of the City on February 1, 2005 and
on any date thereafter at a price of par plus accrued interest, as provided in the Prior Resolution; and
WHEREAS, the City Council deems it desirable and in the best interests of the City to provide
moneys for a crossover refunding of the Prior Bonds which mature after February 1, 2006 (the
"Refunded Bonds"), in accordance with the Prior Resolution in order to reduce the debt service costs
to the City; and
WHEREAS, the City Council has heretofore determined and declared that it is necessary and
expedient to issue $1,225,000 General Obligation Refunding Bonds, Series 2004C (the "Bonds") of
the City, pursuant to Minnesota Statutes, Chapter 475.67, subdivision 13, to provide funds for a
crossover refunding of the Refunded Bonds (the "Refunding"); and
.;
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
WHEREAS, the proposals set forth on E�iibit A atta.ched hereto were received by the City Manager,
or designee, at the offices of Ehlers at 12:00 noon this same day pursuant to the Terms of Proposal
established for the Bonds; and
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:
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 awazded to the Purchaser. The City Finance Director is directed
to retain the deposit of the Purchaser and to forthwith return to the unsuccessful bidders their good
faith checks or drafts.
Bond Terms.
Title• Ori�inal Issue Date• Denominations; Maturities; Term Bond Option. The Bonds shall be titled
"General Obligation Refunding Bonds, Series 2004C", sha11 be dated March 23, 2004, 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"). The Bonds shall mature, on February
1 in the years and amounts as follows:
Year
2006
2007
2008
2009
Amount
$235,000
240,000
140,000
145,000
Year
2010
2011
2012
Amount
$150,000
155,000
160,000
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).
Allocation of Bonds to Prior Bonds• Allocation of Prepavments to Portions of Debt Service. The
aggregate principal amount of $ maturing in each of the years and amounts
hereinafter set forth are allocable to the costs of crossover refunding the Storm Sewer Project (the
"Storm Sewer Revenue Refunding Portion") and the aggregate principal amount of $
maturing in each of the years and amounts hereinafter set forth aze allocable to the costs of crossover
refunding the Water Project (the "Water Sewer Refunding Portion"):
�' '�
Storm Sewer Revenue
Refunding
Yeaz Portion (Amount)
2006
2007
2008
2009
2010
2011
2012
Water Revenue Refunding
Portion (Amount� Total (Amount)
If Bonds are prepaid, the prepayments shall be allocated to the portions of debt service (and hence
allocated to the payment of Bonds treated as relating to a particular portion of debt service) as
provided in this paragraph. If the source of prepayment moneys is the general fund of the City, or
other generally available source, the prepayment may be allocated to any or all of the portions of debt
service in such amounts as the City shall determine. If the source of a prepayment is net revenues of
the Storm Sewer System pledged to the Storm Sewer Project, the prepayment sha11 be allocated to the
Storm Sewer Revenue Refunding Portion of the debt service. If the source of a prepayment is net
revenues of the Water System pledged to the Water Project, the prepayment sha11 be allocated to the
Water Revenue Refunding Portion of debt service.
Book Entr��ystem. The Depository Trust Company, a limited purpose trust company
organized under the laws of the Sta.te 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:
The Bonds sha11 be initially issued and, so long as they remain in book entry form only (the "Book
Entry Only Period"), sha11 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.
Upon initial issuance, ownership of the Bonds sha11 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").
100
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 premiuxn, if any, or interest on the Bonds, or (D) the consent given or
other action talcen 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
certa.in Participants to whose accounts the Bonds are credited on the record date identified in a listing
attached to the omnibus proxy.
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.
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.
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").
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.
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
fl�jl
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.
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 Representa.tions.
Termination of Book-Entrv Onlv Svstem. Discontinuance of a particulaz Depository's services and
termination of the book-entry only system may be effected as follows:
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.
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 sha11
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.
Nothing in this subparagraph (d) shall limit or restrict the provisions of paragraph 10.
Letter of Renresentations. 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.
Purpose; Refunding Findin�s. 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, subdivision 13, sha11
result in a reduction of the present value (as of the crossover date) of the dollar amount of the debt
service to the City from a total dollaz axnount of $ for the Prior Bonds, computed in
accordance with the provisions of Minnesota Statutes, Section 475.67, subdivision 12. The dollar
amount of such present value of the debt service for the Bonds is lower by at least three percent than
the dollar amount of such present value of the debt service for the Prior Bonds as required in
Minnesota Statutes, Section 475.67, subdivision 12.
Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each
year (each, an"Interest Payment Date"), commencing August 1, 2004, 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:
Maturitv Year Interest Rate Maturity Yeaz Interest Rate
2006
102
2010
2007
2008
2009
2011
2012
No Redemption. The Bonds shall not be subject to redemption and prepayment prior to their
matZUity.
Bond Re�istrar. U.S. Bank National Association, in St. Paul, Minnesota, is appointed to act as bond
registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and sha11 do so unless
and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond
Registrar sha11 execute which is consistent herewith. The Bond Registraz 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 of this resolution.
Form of Bond. The Bonds, together with the Bond Registraz's Certificate of Authentication, the form
of Assignment and the registration information thereon, shall be in substantially the following form:
103
f�
UNITED STATES OF AMERICA
STATE OF MINNESOTA
ANOKA COUNTY
CITY OF FRIDLEY
$
GENER.AL OBLIGATION REFUNDING BONDS, SERIES 2004C
Interest Rate Maturitv Date Date of Ori�inal Issue CUSIP
March 23, 2004
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF FRIDLEY, ANOKA COLINTY, MINNESOTA (the "Issuer"), certifies that it is
indebted and for value received promises to pay to the registered owner specified above, or registered
assigns, without option of prepayment, 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 l,
2004, 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 principal office of U.S. Bank National
Association, in St. Paul, 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 Registraz
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 Regulaz 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 Registraz whenever money becomes available for
payment of the defaulted interest. Notice of the Special Record Date sha11 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.
No Redemption. The Bonds of this issue (the "Bonds") are not subject to redemption and
prepayment prior to their maturity.
Issuance: Purpose; General Obli ag tion. This Bond is one of an issue in the total principal amount of
$1,225,000, 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 charter of the Issuer, Constitution
104
and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on
February 23, 2004 (the "Resolution"), for the purpose of providing money for a crossover refunding
on February l, 2005, of the General Obligation Bonds, Series 1996A, dated November l, 1996,
which mature after February 1, 2005. This Bond is payable out of the Escrow Account and the
General Obligation Refunding Bonds, Series 2004C 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 subject 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 presenta.tion and surrender
hereof to the Bond Registraz, a11 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 Registrax 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 Registraz 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 Obligation. This Bond has been designated by the Issuer as a"qualified tax-
exempt obligation" for purposes of Section 265(b)(3) of the Intemal 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 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, that the Issuer has covenanted and agreed
with the Holders of the Bonds that it will impose and collect charges for the service, use and
availability of the municipal water system and storm sewer system (collectively the "System") at the
times and in amounts necessary to produce net revenues, together with other sums pledged to the
payment of the Bonds adequate to pay all principal and interest when due on the Bonds; and that the
Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property of the
105
Issuer, without limitation as to rate or amount, for the years and in amounts sufficient to pay the
principal and interest on the Bonds as they respectively become due, if the net revenues from the
System, and any other sums irrevocably appropriated to the Debt Service Account are insufficient
therefor and that this Bond, together with a11 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, charter or statutory 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
Manager, the corporate seal of the Issuer having been intentionally omitted as permitted by law.
Date of Registration:
BOND REGISTR.AR'S
CERTIFICATE OF
AUTHENTICATION
This Bonds is one of the
Bonds described in the
Resolution mentioned
within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
Bond Registrar
By:
Authorized Signature
Registrable by:
Payable at:
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
CITY OF FRIDLEY,
ANOKA COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Manager
106
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 joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and
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 Guazanteed:
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 Guaxantor 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:
(Inc
lude information for all joint owners if the Bond is held by joint account.)
107
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 an officer who may act on behalf of the absent or disabled officer. In case either officer
whose signature or facsimile of whose signature shall appeaz on the Bonds shall cease to be the
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 cancelled.
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 sha11 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 March 23, 2004. The Certificate of Authentication so
executed on each Bond sha11 be conclusive evidence that it has been authenticated and delivered
under this resolution.
Re�istration; Transfer; Exchan�e. The City will cause to be kept at the principal office of the Bond
Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may
prescribe, the Bond Registraz 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 Registraz 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 staxed maturity, upon surrender of the Bonds
to be exchanged at the principal office of the Bond Registrar. Whenever 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 sha11 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 subject 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 Clerk is hereby authorized to negotiate and execute the
terms of said agreement.
Ri�hts Uvon 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.
Interest Pavment; Record Date. Interest on any Bond sha11 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 (15th) day of the calendar month next preceding such Interest
Payment Date (the "Regular Record Date"). Any such interest not so timely paid sha11 cease to be
payable to the person who is the Holder thereof as of the Regulaz 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 (10) days prior to the Special Record Date.
Treatment of Registered 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 (subject to the payment provisions in paragraph 12) on, such
Bond and for all other purposes whatsoever whether or not such Bond sha11 be overdue, and neither
the City nor the Bond Registrar sha11 be affected by notice to the contrary. Deliverv; Application of
Proceeds. The Bonds when so prepared and executed sha11 be delivered by the Clerk to the Purchaser
upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper
application thereof.
Fund; Accounts and Subaccounts. For the convenience and proper administration of the moneys to
be borrowed and repaid on the Bonds, and to make adequate and specific security to the Purchaser
���
and holders from time to time of the Bonds, there is hereby created a special fund to be designated
the "General Obligation Refunding Bonds, Series 2004C 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 the Bonds and the interest thereon shall have been fully paid. The Operation
and Maintenance Account heretofore established by the City shall continue to be maintained in the
manner heretofore provided by the City. All moneys remaining after paying or providing for the
items set forth in the resolution establishing the Operation and Maintenance Account shall constitute
and are referred to as"net revenues" until the Bonds have been paid. There shall be maintained in the
Fund the following separate accounts to which shall be credited and debited a11 net revenues of the
System as hereinafter set forth. The City Finance Director and a11 officials and employees concerned
therewith sha11 establish and maintain financial records of the receipts and disbursements of the
System in accordance with this resolution. In such records there sha11 be established and mainta.ined
the following separate accounts, designated the Escrow Account and the Debt Service Account, for
the purposes as follows:
Escrow Account. The Escrow Account shall be maintained as an escrow account with U.S. Bank
National Association, in St. Paul, Minnesota (the "Escrow Agent"), which is a suita.ble financial
institution within or without the State whose deposits are insured by the Federal Deposit Insurance
Corporation and whose combined capital and surplus is not less than $500,000. All proceeds of the
sale of the Bonds sha11 be received by the Escrow Agent and applied to fund the Escrow Account or
to pay costs of issuing the Bonds. Proceeds of the Bonds not used to pay costs of issuance are hereby
irrevocably pledged and appropriated to the Escrow Account, together with a11 investment earnings
thereon. The Escrow Account shall be invested in securities maturing or callable at the option of the
holder on such dates and bearing interest at such rates as sha11 be required to provide sufficient funds,
together with any cash or other funds retained in the Escrow Account, (i) to pay when due the interest
to accrue on the Bonds to and including February l, 2005 and (ii) to pay when called for redemption
on February 1, 2005, the principal amount of the Refunded Bonds. The Escrow Account shall be
inevocable appropriated to the payment of (i) all interest on the Bonds to and including February 1,
2005 and (ii) the principal of and interest on the Refunded Bonds due by reason of their call for
redemption on February 1, 2005. The moneys in the Escrow Account sha11 be used solely for the
purposes herein set forth and for no other purpose, except that any surplus in the Escrow Account
may be remitted to the City, all in accordance with an agreement (the "Escrow Agreement") by and
between the City and Escrow Agent, a form of which agreement is on file in the office of the Clerk.
Any moneys remitted to the City upon termination of the Escrow Agreement shall be deposited in the
Debt Service Account.
110
Debt Service Account. There shall be maintained the following separate subaccounts in the Debt
Service Account to be designated the "Storm Sewer Revenue Debt Service Subaccount and the
„
"Water Revenue Debt Service Subaccount". There are hereby irrevocably appropriated and pledged
to, and there shall be credited to the separate subaccounts of the Debt Service Account:
Storm Sewer Revenue Debt Service Subaccount. To the Net Revenue Debt Service Subaccount there
is hereby pledged and irrevocably appropriated and there shall be credited: (1) after February 1,
2005, the net revenues of the Storm Sewer System not otherwise pledged and applied to the payment
of other obligations of the City, in an amount, together with other funds which may herein or
hereafter from time to time be irrevocably appropriated to the account sufficient to meet the
requirements of Minnesota Statutes, Section 475.61 for the payment of the principal and interest of
the Storm Sewer Revenue Refunding Portion of the Bonds; (2) any collections of all taxes which aze
herein or hereafter levied; (3) a pro rata share of accrued interest received upon delivery of the
Bonds; (4) a pro rata share of any balance remitted to the City upon termination of the Escrow
Agreement; (5) any funds remaining after February 1, 2005 in the Debt Service Account of the
General Obligation Bonds, Series 1996A Fund established by the Prior Resolution; (6) all investment
earnings on funds in the Debt Service Account; and (7) 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
amount of any surplus remaining in the Debt Service Account when the Storm Sewer Revenue
Refunding Portion of the Bonds and interest thereon aze paid shall be used consistent with the
Minnesota Sta.tutes, Section 475.61, Subdivision 4.
Water Revenue Debt Service Account. To the Water Revenue Debt Service Account there is hereby
pledged and irrevocably appropriated and there shall be credited: (1) after February 1, 2005, the net
revenues of the Water System not otherwise pledged and applied to the payment of other obligations
of the City, in an amount, together with other funds which may herein or hereafter from time to time
be irrevocably appropriated to the account sufficient to meet the requirements of Minnesota Sta.tutes,
Section 475.61 for the payment of the principal and interest of the Water Revenue Refunding Portion
of the Bonds; (2) any collections of all taxes which may hereafter be levied in the event that the net
revenues of the Water System herein pledged to the payment of the principal and interest on the
Water Revenue Refunding Portion of the Bonds are insufficient therefor; (3) a pro rata share of
accrued interest received upon delivery of the Bonds; (4) a pro rata share of any balance remitted to
the City upon termination of the Escrow Agreement; (5) any funds remaining after February 1, 2005
in the Debt Service Account of the General Obligation Bonds, Series 1996A Fund established by the
Prior Resolution; (6) all investment earnings on funds in the Water Revenue Debt Service Account;
and (7) any and a11 other moneys which are properly available and are appropriated by the governing
body of the City to the Water Revenue Debt Service Account. The amount of any surplus remaining
in the Water Revenue Debt Service Account when the Water Revenue Refunding Portion of the
Bonds and interest thereon are paid sha11 be used consistent with the Minnesota Statutes, Section
475.61, Subdivision 4.
111
\
\\i
The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on �
the Bonds or any other bonds hereafter issued and made payable from the Fund. 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
suxns from time to time held in the Fund (or any other City account which will be sued to pay
principal and interest to become due on the Bonds) in excess of amounts which under the applicable
federal arbitrage regulations may be invested without regard as to yield shall not be invested in
excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments
after taking into account any applicable "temporary periods" or "minor portion" made available under -
the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund 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 "federa.11y guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue
Code of 1986, as amended (the "Code").
T� Levies. To provide moneys for payment of the principal of and interest on the Storm Sewer
Refunding Portion, there is hereby levied upon all of the taxable property in Stoney Brook Creek
Sub-Watershed District 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 Year of Tax
Levv Collection Amount
2004 2005 $
2005 2006 $
The tax levies shall be irrepealable so long as the Bonds described in this paragraph are outstanding
and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and
to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3.
Upon payment of the Prior Bonds, the uncollected taxes levied in paragraph 18 of the Prior
Resolution authorizing the issuance of the Prior Bonds which are not needed to pay the Prior Bonds
as a result of the Refunding shall be cancelled.
112
Sufficiencv of Net Revenues; Covera�e�Test. It is hereby found, determined and declared that the net
revenues of the System and the tax levy for the Storm Sewer Refiznding Portion are sufficient in
amount to pay when due the principal of and interest on the Bonds and a sum at least five percent in
excess thereof, and the net revenues of the System and the tax levy for the Stoney Brook Creek Sub-
watershed District are hereby pledged for the payment of the Bonds and shall be applied for that
purpose, but solely to the extent required to meet the principal and interest requirements of the Bonds
as the same become due. Nothing contained herein shall be deemed to preclude the City from
making fwther pledges and appropriations of the net revenues of the System for the payment of other
or additional obligations of the City, provided that it has first been determined by the City Council
that the estimated net revenues of the System will be sufficient, in addition to all other sources, for
the payment of the Bonds and such additional obligations and any such pledge and appropriation of
the net revenues may be made superior or subordinate to, or on a parity with the pledge and
appropriation herein.
Covenant to Maintain Rates and Char�es. In accordance with Minnesota Statutes, Section 444.075,
the City hereby covenants and agrees with the Holders of the Bonds that it will impose and collect
charges for the service, use, availability and connection to the System at the times and in the amounts
required to produce net revenues, together with the t� levy for the storm sewer refunding portion,
adequate to pay a11 principal and interest when due on the Bonds.
Excess Net Revenues. Net revenues of the System in excess of those required for the foregoing may
be used for any proper purpose.
General Obli�ation Pled�e. For the prompt and full payment of the principal of 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 net revenues of the System appropriated and pledged to
the payment of the principal and interest on the Bonds, together with other funds irrevocably
appropriated to the Escrow Account or the Storm Sewer Revenue Debt Service Subaccount or Water
Revenue Debt Service Subaccount, whichever is appropriate, shall at any time be insufficient to pay
the principal and interest when due, the City covenants and agrees to levy, without limitation as to
rate or amount an ad valorem tax upon all taxable property in the City sufficient to pay such principal
and interest as it becomes due. If the balance in the Escrow Account or the Net Revenue Debt
Service Subaccount is ever insufficient to pay all principal and interest then due on the Net Revenue
Portion of the Bonds payable therefrom, the deficiency shall be promptly paid out of any other
accounts of the City which are available for such purpose, and such other funds may be reimbursed
without interest from the Escrow Account or the Net Revenue Debt Service Subaccount when a
sufficient balance is available therein.
Securities; Escrow Agent. Securities purchased from moneys in the Escrow Account shall be limited
to securities set forth in Minnesota Statutes, Section 475.67, Subdivision 8, and any amendments or
supplements thereto. Securities purchased from the Escrow Account sha.11 be purchased
simultaneously with the delivery of the Bonds. The City Council has investigated the facts and
hereby finds and determines that the Escrow Agent is a suitable financial institution to act as escrow
agent.
113
Escrow Agreement. On or prior to the delivery of the Bonds the Mayor and Manager shall, and are
hereby authorized and directed to, execute on behalf of the City an Escrow Agreement. The Escrow
Agreement is hereby approved and adopted and made a part of this resolution, and the City covenants
that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow
Agent.
Purchase of SLGS or Open Market Securities. Ehlers, as agent for the Council, is hereby authorized
and directed to purchase on behalf of the Council and in its name the appropriate United States
Treasury Securities, Sta.te and Local Government Series and/or open maxket securities from Bond
proceeds and, to the extent necessary, other available funds, all in accordance with the provisions of
this resolution and the Escrow Agreement and to execute all such documents (including the
appropriate subscription form) required to effect such purchase in accordance with the applicable
U.S. Treasury Regulations.
Redemption of Prior Bonds. The Prior Bonds which mature in 2006 and thereafter shall be redeemed
and prepaid on February 1, 2005, in accordance with the terms and conditions set forth in the Notice
of Call for Redemption attached to the Escrow Agreement, which terms and conditions aze hereby
approved and incorporated herein by reference. The Notice of Ca11 for Redemption shall be mailed to
the paying agent for the Prior Bonds prior to said redemption date and to the registered owner of each
Prior Bond at the address shown on the registration books kept by the registraz for the Prior Bonds
pursuant to the provisions of the Escrow Agreement.
Prior Bonds Securitv. 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.
Defeasance. When a11 Bonds have been discharged as provided in this pazagraph, a11 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 dischazge 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 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 reinvestrnent, to
pay all amounts to become due thereon to maturity.
Certificate of Registration. The Clerk is hereby directed to file a certified copy of this resolution with
the Director of the 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 Properiy
Records and Taxation's certificate that the Bonds have been entered in the Director of Anoka County
Property Records and T�ation's Bond Register.
114
Records and Certificates. The officers of the City aze 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 marketa.bility 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.
Negative Covenant as to Use of Proceeds and Proiect. The City hereby covenants not to use the
proceeds of the Bonds or to use the Project, 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.
T�-Exempt Status of the Bonds; Rebate. The City sha11 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 (1) requirements relating to temporary periods
for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds,
and (3) 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
govemmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and
declares that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no
Bond is a private activity bond, (3) 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 (4) 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 is not reasonably expected to exceed $5,000,000, a11 within the meaning of Section
148(�(4)(D) of the Code.
FURTHERMORE: the Prior Bond was issued as part of an issue which was treated as meeting the
rebate requirements by reason of the exception for governmental units issuing $5,000,000 or less of
bonds;
The average maturity of the Bonds does not exceed the remaining average maturity of the Prior
Bonds; and
No maturity of the Bonds has a maturity date which is later than the date which is thirty years after
the date the Prior Bond was issued.
Desi�nation of Qualified Tax-Exempt Obli at�ons. 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:
The Bonds are issued after August 7, 1986;
The Bonds are not "private activity bonds" as defined in Section 141 of the Code;
The City hereby designates the Bonds as"qualified tax exempt obligations" for purposes of Section
265(b)(3) of the Code;
115
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 2004 will not exceed $10,000,000; and
Not more than $10,000,000 of obligations issued by the City during this calendar year 2004 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.
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") hereina.fter
described to:
Provide or cause to be provided to each nationally recognized municipal securities information
repository ("NRMSIR") and to the appropriate sta.te 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.
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.
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.
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 sha11 be enforceable on
behalf of such Holders; provided that the right to enforce the provisions of these covenants sha11 be
limited to a right to obtain specific enforcement of the City's obligations under the covenants.
116
The Mayor and Manager 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 (a) consistent with the requirements under the Rule, (b) required by the
Purchaser of the Bonds, and (c) acceptable to the Officers.
Pavment 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, N.A., Mirineapolis,
Minnesota on the closing date for further distribution as directed by the City's financial advisor,
Ehlers.
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.
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
DAY OF FEBRUARY, 2004.
ATTEST:
DEBR.A A. SKOGEN — CITY CLERK
SCOTT J. LUND — MAYOR
117
�
�
OTY OF
FRIDLEY
To:
From:
Date:
Re:
AGENDA ITEM
CITY COUNCIL MEETING OF
February 23, 2004
William W. Burns, City Manager
��� �
Richard D. Pribyl, Finance Director
Craig A. Ellesta.d, Accountant
February 18, 2004
Modifications to the 2003 Budget
Attached you will fmd a resolution amending appropriations to the 2003 budget in accordance
with the City Charter.
The adjustments listed have arisen as a result various donations, unforeseen expenditures and
revenues, and reclassification of account codings. You have informally approved all adjustments
through the Budget Reappropriation form.
We request that the Council approve the amendment of the attached budgets.
.
118
�
Resolution 2004 - _
A RESOLUTION AUTHORIZING CHANGES IN APPROPRIATIONS FOR THE 2003 BUDGET
FOR NOVEMBER THRU DECEMBER, 2003
WHEREAS, the City of Fridley has involved itself in initiatives that provide for future charges
and modifications that will allow for a better delivery of service, and
WHEREAS, the City of Fridley had not incorporated these and other necessary changes into
the adopted budget for 2003.
NOW, THEREFORE, BE IT RESOLVED that the following funds will be amended
as follows:
REVENUE ADJUSTMENTS
Police-Donation
Police-Donation
Police-Reimbursement
Police-Reimbursement
Pol ice-Reimbursement
Rec & Nat-Donation
APPROPRIATION ADJUSTMENTS
Police-Supplies
Police-Supplies
Police-Other Services & Charges
Police-Personal Services
Police-Personal Services
Police-Personal Services
Rec & Nature-Supplies
GENERAL FUND
1,000
3,965
1,531
4,439
36,766
200
�
1,000
3,915
50
1,531
4,439
36,766
200
�
Donation from Walmart
Various Donations
Safe & Sober Grant
Sam's Club
MAC-Airport Detail
Donation from VFW
Small Tools & Minor Equipment
Safety Camp Supplies
All Creatures Great & Small
Safe & Sober Patrol Wages
Security-Sam's Club
Checkpoint Law Enforcement
Coffee Makers for Senior Center
CAPITAL IMPROVEMENT FUND
GENER,9L CAPITAL IMPROVEMENT
REVENUE ADNSTMENTS
Fund Balance
APPROPRIATION ADJUSTMENTS
Genera]-Capital Outlay
147,271
147,271
Use of Fund Balance
Muni Garage Remodel
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS _ DAY
OF FEBRUARY, 2004.
SCOTT J. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
119
f
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CfTY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING
OF FEBRUARY 23, 2004
To: William W. Bums, City Manager,� �`
From: Jack Kirk, Director of Recreation and Natural Resources
Date: February 19, 2004
Re: Resolution Supporting Grant Application for Trail Improvements
The Anoka County Parks and Recreation Department is applying for a Federal
Recreation Grant through the Minnesota Department of Natural Resources. The grant
proposes to make improvements to the regional bikeway/walkway trail located between
University Avenue and Highway 65 in Fridley. A good portion of this trail segment runs
through Locke Park.
The improvements will include repairing and replacing the asphatt surface, providing
some new trail signs, and doing some stream bank erosion control adjacent to the trail.
If approved, the work on this project could start as early as August or September of
2005.
At the recent February 2, 2004 meeting, the Parks and Recreation Commission passed
a motion to support the grant application of the Anoka County Parks Department. A
letter of support from the Commission has been forwarded to the County. The County
would appreciate a resolution from the Fridley City Council supporting this grant
application as well. The improvements to this trail will benefit many Fridley residents
who use the trail, along with many other people from the surrounding area.
Attached is a proposed resolution of support for the City Council to consider.
120
I
RESOLUTION NO. - 2004
RESOLUTION SUPPORTING THE IMPROVEMENT5 FOR
THE RICE CREEK WEST REGIONAL TRAIL
WHEREAS, the City of Fridley has been notified by the Anoka County Department of Parks
and Recreation regarding their intent to apply for a Federal Recreation Trail Grant with the
Minnesota Department of Natural Resources; and
_ WHEREAS, the proposed improvements will include repa.iruig and replacing the existing
regional trail between University Avenue and Central Avenue in Fridley. In addition to
upgrading the trail surface, the project would provide for improved signage and some stream
bank erosion control; and
WHEREAS, the City of Fridley has many neighboring trail segments that connect with the
regional trail to create a recreational and alternate transporta.tion system within this community;
and
WHEREAS, the City of Fridley has deemed the proposed improvements to the trail and the
adjoining park facilities to be beneficial for the residents of Fridley and the entire region;
NOW, TI�REFORE, BE IT RESOLVED, that the City Council of the City of Fridley hereby
provides its full support for the Federal Recreation Trail Grant submittal by the Anoka County
Department of Parks and Recreation for the improvements to the Rice Creek Regional Trail.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY
THIS DAY OF FEBRUARY, 2004.
ATTEST:
- DEBRA A. SKOGEN, CITY CLERK
121
SCOTT J. LUND, MAYOR
�
�
Ct1Y QF
FRIDLEY
Name
Margo
Prasek
Position
Program
Supenrisor
Exempt
AGENDA ITEM
CITY COUNCIL MEETING
OF FEBRUARY 23, 2004
Appointment
Starting
SalaN
$21.08
per hour
122
Starting
Date
March 1,
2004
Reqlaces
Jamie
Ramacher
�
0
� AGENDA ITEM
COUNCIL MEETfNG OF FEBRUARY 23, 2004
CRY OF
FRIDLEY
CLA1 MS
115324 -115487
123
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�
CffY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 23, 2004
LICENSES
Tvpe of License �
INTOXICATING LIQUOR
Sandee's of Fridley David Reimer
6490 Central Avenue NE
Fridley, MN 55432
FOOD
Sandee's of Fridley
6490 Central Avenue NE
Fridley, MN 55432
David Reimer
MANAGERIAL LIQUOR DISPENSING
Sandee's of Fridley Dallas Ward
6490 Central Avenue NE
Fridley, MN 55432
GAMBLING
Sandee's of Fridley
6490 Central Avenue NE
Fridley, MN 55432
David Reimer
124
Approved By:
Public Safety
Fire Inspector
Community Development
Public Safety
Fire Inspector
Community Development
Public Safety
Public Safety
City Clerk
Fees:
$4,532
$80
$20
$350
.
City of
Fridley
AGENDAITEM
City Council Meeting Of Monday, February 23, 2004
�
Gas Services
Aspen Air Inc
308 SW 15 St STE 25 Renee Roen
Forest Lake MN 55025-
Bostrom Sheet Metal Works Inc
731 Hampden Ave Kelly Summerville
St Paul MN 55114-
Commercial Plumbing 8 Heating Inc
24428 Greenway Avenue Robert Skeie
Forest Lake MN 55025-
Doody Mechanical/United Sheet Metal
520 Front Ave Mike Stillman
St Paul MN 55117-
Perfection Heating 8� AC Inc
10800 66 St N Steve Kuzt
Stillwater MN 55082-
General Contractor-Commercial
Danielson G R� Son Construction Co (20122709)
15012 Raven St NW Gary Danielson
Andover MN 55304-
Rite Way Waterproofing
448 Lilac St Charlene Messerich
Lino Lakes MN 550141054
General Contractor-Residential
Castlerock Designs (20248580)
2850 Lindgren Lane Richard Mickschl
Independence MN 55359-
125
Approved Bv:
Ron Julkowski
Building Official
Ron Julkowski
Building Official
Ron Julkowski
Building Offiaal
Ron Julkowski
Building Offiaal
Ron Julkowski
Buitding Official
State of MN
Ron Julkowski
Building Offiaal
State of MN
Windsor Companies (4687)
1175 E Hwy 36
Maplewood MN 55109-
Heatinq
Aspen Air Inc
308 SW 15 St STE 25
Forest Lake MN 55025-
�
Jeff Nikkei
Renee Roen
Bostrom Sheet Metal Works inc
731 Hampden Ave Kelly Summerville
St Paul MN 55114-
Commercial Plumbing � Heating Inc
24428 Greenway Avenue Robert Skeie
Forest Lake MN 55025-
Doody Mechanical/United Sheet Metal
520 Front Ave Bob Vanness
St Paul MN 55117-
Perfection Heating 8 AC Inc
10800 66 St N Steve Kuzt
Stillwater MN 55082-
Roofinq
Top All Roofing Inc
291 Eva St
St Paul MN 55107-
Bill Jetton
126
Approved By:
State of M N
Ron Julkowski
Building Official
Ron Julkowski
Building Official
Ron Juikowski
Building Official
Ron Julkowski
Building Offiaal
Ron Julkowski
Building Official
Ron Julkowski
Building Official
� AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 23, 2004
anr aF ESTI MATES
FRIDLEY
- CM Construction Company
� 12215 Nicollet Avenue South
Burnsville, MN 55337
.
Fridley Municipal Gazage Remodeling Project
FINAL ESTIMATE ............................................................................ $14,812.07
127
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CRY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 23, 2004
TO: William W. Bu , City Manager���'
FROM: Jon . aukaas, Public Works Director
DATE:
SUBJECT
February 20, 2004
t�learing on 1`IPDES Annual Update
PW04�019
As part of our I`IPDES permit, we are required to make an annual public presentation
describing what is in our Storm Water Pollution Prevention Plan (SWPPP). The update will
include an ovenriew of the program, our accomplishments over the last year, and changes
planned for the next year.
The Permit also requires we record public comment and submit it with our plan"s annual
update.
lllili�
128
�
�
.
�
� AGENDA tTEM
cmaF . CITY COUNCIL MEETING OF FEBRUARY 23� 2004
FRIDLEY
INFORMAL STATUS REPORTS
129