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08/20/2012 - 7562FRIDLEY CITY COUNCIL MEETING OF AUGUST 20, 2012 '� cn,r� FWDIEY 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 allow 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. (TTDi572-3534) PLEDGE OF ALLEGIANCE. PRESENTATION: Leah Kruc - 2013 Minneapolis Aquatennial Princess Presentation of CeRificate of Appreciatlon to Marcy Sibell APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 23, 2012 NEW BUSINESS: Resolution AHirming Special Use Permits, SP #95-05 and SP #04-05, Permitting a Garden Center at Home Depot, Generally Located at 5650 Main Street N.E. (Ward 3) ...................................... 1 - 2 2. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 6-7, 9, 11-13 and 16-20, Creation of Tax Increment Financing District No. 21, and Approval and Adoption of a Tax Increment Financing Plan Relating Thereto ........................................ 3 - 7 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS fCONTINUED): 3. First Reading of an Ordinance Recodifying the Fridley City Code by Amending Appendix F to Provide for the Adjustment of Salaries for the Mayor and Councilmembers in Accordance with Section 2.07 of the Charter of the City of Fridley ......................................... 8 - 10 Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for the Jackson Street Storm Sewer Improvement Project No. 413 ........................... 11 - 12 5. Resolution Directing Publication of the Hearing on the Proposed Assessment for the Jackson Street Storm Sewer Improvement Project No. 413 ....................................... 13 - 14 6. Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for the Street Improvement Project No. ST. 2�12-01 ....................................... 15 - 16 Resolution Directing Publication of the Hearing on the Proposed Assessment for Street Improvement Project No. 2012-01 ....................................... 17 - 18 FRIDLEY CITY COUNCIL MEETING OF AUGUST 20. 2012 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (GQNTINUED): 8. Resolution Abating the Assessment for a Certain PropeRy within the 2�09-2 Street Improvement Project......................................... 19 - 20 9. Resolution Providing for the Issuance and Sale of $1,295,000 General Obligation Equipment Certificates, Series 2012A, and Levying a Tax for the Payment Thereof ............. 21 - 39 10. Motion to Approve Post-Issuance Debt Compliance Policy for the City of Fridley ........................................ 40 - 42 11. Claims (156068 — 156413) .......... 43 - 71 12. Licenses ...................................... 72 - 73 ADQPTION OF AGENDA: OPEN FORUM. VISITORS: Consideration of items not on Agenda — 15 minutes. NEW BUSINESS: 13. Resolution Certifying Proposed Tax Levy Requirements for 2013 to the County of Anoka 74 - 75 14. Resolution Adopting the 2013 Proposed Budget ................................. 76 - 78 15. Resolution Identifying the Need tor Livable Communities Transit Oriented Development Funding and Authorizing Applications for Grant Funds ................................ 79 - 82 NEW BUSINESS (CONTINUED): 16. Resolution Approving "Corridors of Opportunity" Principles 83 - 86 17. Approve Clean Water Grant Fund Work Order Setween the City of Fridley and Conservatlon Corps (Project No. 11524; Oak Glen Creek Corridor and Stonybrook Corridor) 87 - 91 18. Approve Oak Glen Creek Project Right-of-Entry Agreement Addendum ................ 92 - 100 19. Receive Plans and Specifications and Call for Bids for the Police Garage Roof Repair Project No.414 101 20. Approve Sanitary Sewer Smoke Testing Program 102 - 103 21. Informal Status Report .. ADJOURN. 104 ' CfiY OF fRIDLEY FRIDLEY CITY COUNCIL MEETING OF AUGUST 20, 2012 7:30 p.m. - City Council Chambers Attendance Sheei Please nrint name address and item number you are interested in Print Name CClearly) Address Item No. I � VL i U cN�� .� %UL� tJ � U „C h� vC C. 1� C? �-i[u c f�--yv� k�N '� CITY COUNCIL MEETING OF AUGUST 20, 2012 �� 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 allow 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. (TTD/572-3534) PLEDGE OF ALLEGIANCE. PRESENTATION: Leah Kruc - 2013 Minneapolis Aquatennial Princess Presentation of Certificate of Appreciation to Marcy Sibell APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 23, 2012 NEW BUSINESS: Resolution Affirming Special Use Permits, SP #95-05 and SP #04-05, Permitting a Garden Center at Home Depot, Generally Located at 5650 Main Street N.E. (Ward 3) .................................................. 1- 2 2. Resolution Calling for a Public Hearing on Modifications to the Redevelopment Plan for Redevelopment Project No. 1 and the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 6-7, 9, 11-13 and 16-20, Creation of Tax Increment Financing District No. 21, and Approval and Adoption of a Tax Increment Financing Plan Relating 7hereto ................................................. 3- 7 FRIDLEY CITY COUNCIL MEETING OF AUGUST 20. 2012 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (CONTINUEDI: 3. First Reading of an Ordinance Recodifying the Fridley City Code by Amending Appendix F to Provide for the Adjustment of Salaries for the Mayor and Councilmembers in Accordance with Section 2.07 of the Charter of the City of Fridley .......................................... 8- 1Q 4. Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for the Jackson Street Storm Sewer Improvement ProjectNo. 413 ............................................................................................. 11 - 12 5. Resolution Directing Publication of the Hearing on the Proposed Assessment for the Jackson Street Storm Sewer improvement Project No. 413 ....................................... 13 - 14 6. Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for the Street Improvement Project No. ST. 2012-01 ......................................... 15 - 16 7. Resolution Directing Publication of the Hearing on the Proposed Assessment for Street Improvement Project No. 2012-01 ................................................................ 17 - 18 8. Resolution Abating the Assessment for a Certain Property within the 2009-2 Street Improvement Project.......................................................................................................... 19 - 20 9. Resolution Providing for the Issuance and Sale of $1,295,000 General Obligation Equipment Certificates, Series 2012A, and Levying a Tax for the Payment Thereof......................................................................................................... 21 - 39 FRIDLEY CITY COUNCIL MEETING OF AUGUST 20. 2012 PAGE 3 APPROVAL OF PROPOSED GONSENT AGENDA: NEW BUSINESS (CONTINUED): 10. Motion to Approve Post-Issuance Debt Compliance Policy for the City of Fridley ..................................................... 40 - 42 11. Glaims (156068 — 156413) ........................................................................... 43 - 71 12. Licenses ....................................................................................................... 72 - 73 ADOPTION OF AGENDA: OPEN FORUM. VISITORS: Consideration of items not on Agenda — 15 minutes. NEW BUSINESS: 13. Resolution Certifying Proposed Tax Levy Requirements for 2013 to the County of Anoka ............................................ 74 - 75 14. Resolution Adopting the 2013 Proposed Budget..............:........................................................................................ 76 - 78 15. Resolution Identifying ihe Need for Livable Communities Transit Oriented Development Funding and Authorizing Applications for GrantFunds ................................................................................................. 79 - 82 16. Resolution Approving "Corridors of Opportunity" Principles....................................................................................................... 83 - 86 FRIDLEY CITY COUNCIL MEETING OF AUGUST 20. 2012 PAGE 4 NEW BUSINESS (CONTINUEDI: 17. Approve Clean Water Grant Fund Work Order Between the City of Fridley and Conservation Corps (Project No. 11524; Oak Glen Creek Corridor and Stonybrook Corridor) ....................................................................................................... 87 - 91 18. Approve Oak Glen Creek Project Right-of-Entry AgreementAddendum ................................................................................. 92 - 100 19. Receive Plans and Specifications and Call for Bids for the Police Garage Roof Repair Project No. 41�} ....................................................................................................... 101 20. Approve Sanitary Sewer Smoke Testing Program ....................................... 102 - 103 21. Informal Status Report ................................................................................. 104 ADJOURN. CITY COUNCIL MEETING CITY OF FRIDLEY JULY 23, 2012 The Ciry Council meeting for the City of Fridley was ealled Yo arder by Mayor Lund at 7:33 p.m. ROLL CALL: MEMBERS PRESENT: OTHERS PRESENT: PRESENTATION: Mayor Lund Councilmember-at-Large Baznette Councilmember Saeflce Councilmember Varichak Councilmember Bolkcom William Burns, City Manager Darcy Erickson, City Attorney Jim Kosluchar, Put�lic Works Director 2012 Fridley Ambassadors APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: City Council Meeting of July 9, 2012 Councilmember Saetke noted on Page 3, paragraph 6 should read: Councilmember Saeike noted that the citizens need to make a distinction between surface water and groundwater. Minneapolis takes water from the Mississippi River, and they have gone to micro fi]trations so they are dealing with manmade chemicals and organisms found in fhe surfaee water. They have spent millions of dollazs to do that and have a number of groundwater wells throughout their system. Mayor Lund noted that page 4, pazagraph 4, the last sentence should read: It is unnerving to know that it has improved but may get worse �° "-° •-°v` �..° ..°°�° Councilmember Barnette noted on page 10 the conection of names: Don � Wegler and Mark �3 Nelsen APPROVED AS AMENDED. FRIDLEY CITY COUNCIL MEETING OF JULY 23, 2012 PAGE_2 NEW BUSINESS: 1. Appointment — City Employee: William Burns, City Manager, said earlier this year, the Fridley Police Department conducted a promotional process for the sergeanYs posirion vacated by retiring Police Sergeant Mike Momssey. The process included several tests and operational exercises, as well as an interview process that lasted two days. Dr. Burns said that Chris McClish, one of two K-9 Officers, received the top scQre from this process. Chris joined the Fridley Police Department in 2005 after eight years of service in the St. Francis Police Department. He was selected as a Fridley K-9 Officer in 2009 and has performed superbly in a11 of his roles in the Fridley Police Department, including a thre�month stint as temporary sergeant in 2009. Dr. Burns said in view of his success in the selection process, as well as his fine perfortnance as a Fzidley Police Officer, staff recommends Council's confirmation of his appoinhnent to the position of Sergeant effective September 1, 2012. APPROVED. 2. Claims (155898 -156067): Councilu�ember Bolkcom noted it cost a lot of money to remove the gxaffiti from the pump house, and asked if there would be a camera on the pump house next year to deter people &om doing this in the future. William Burns, City Manager, answered yes and in conjunction with pazk equipment too. Councilmem6er Bolkcom asked with respect to the `49er Days banner, what funds was this paid out of. Mayor Lund thought it was out of the funding from the Twin Cities Gateway. Dr. Bums said he would check and get back to Council. APPROVED THE CLAIMS AS SUBMTTTED AND AS ON FILE. 3. Licenses: APPROVED THE LICENSES AS SUBMITTED AND AS ON FILE. FRIDLEY CITY COUNCIL MEETING OF JULY 23, 2012 PAGE 3 4. Estimate: Penn Contracring 13025 Central Avenue Suite 200 Blaine, MN 55434 53`d Avenue Sanitary Sewer Repair Project No. 420 Estimate No. 1 ...................................................................$41,557.75 APPROVED. APPROVAL OF CONSENT AGENDA: MOTION by Councilmember Bamette to approve the Consent Agenda Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY OPEN FORUM VISITORS: No one from the audience spake. AGENDA: MOTION by Councilmember Bolkcom to approve the Agenda as presented. Seconded by Councilmember Saeflce. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 5. Resolution Ordering Preparation of a Preliminary Report and Preliminary Plans and Specifications for Street Rehabilitation Project No. ST. 2013-01. James Kosluchar, Public Works Director, said this project initiation is the City's first step far a special assessment project. The resolution orders preparation of a preliminary report and preliminazy plans and specifications. This allows staff to officially begin work on preliminary design and analysis to determine whether this project is feasible. If approved tonight, staff will tentatively schedule an open house for the neighborhood during the week of September 18. Staff will also complete a feasibility report for the City Council that will indicate whether the project is feasible from a construction and financial standpoint. If approved by Council, the project would go to constnxction in 2013. FRIDLEY CITY COUNCIL MEETING OF JULY 23, 2012 PAGE 4 Councilmember Varichak asked if the average amount of miles budgeted in the feasibility report was similar to prior projects. Mr. Kosluchar answered yes. It is 4 to 4.2 miles, which is on track with the 25-year rehabilitation cycle. The second map is beyond and above the average amount and was deferred from 2011 as that project was reduced 6y 2.9 miles. Councilmember Bolkcom asked staff to let Council know when the neighborhood meeting date is confirmed. MOTION by Councilmember Vazichak to adopt Resolution No. 2o12-46. Seconded by Councilmember Bolkcom. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY 6. Informal Status Report: William Burns, City Manager, said staff recommends cancelling the August 6, 2012, City Council Meeting due to no agenda items. Councilmember Bolkcom reminded people that Night to Unite is August 7. Councilmember Varichak said the Primary Election will be held on August 14 at your normal polling places. Dr. Burns said he attended a meeting at the Capital with Senator Goodwin and Representative Laine last Thursday, and Fridley was represented along with a number of organizations from EPA, MPCA and the Department of Health. One af the most interesting reports was from epidemiologist John Soler who had done some additional studies by zip codes and pointed out how Fridley's cancer rates were well below some other cities in the metro area. Fridley is still above the mean for the state but Spring Lake Park, Coon Rapids and Blaine are higher than Fridley. Information was also presented on how the maacimum contasnination levels are determined, and it is a very thorough and conservative process. They err on the side of too stringent opposed to being too liberal with the process. Information was also heard about the superfund sites. Fridley will be having a Health Fair on August 22. It will take place at the Fridley Community Center in the early evening. Councilmember Bolkcom added that once the meeting date and time is confirmed it will be on website. Mayor Lund said he also attended the meeting, and the EPA felt they should do a better job moving forward in getting information out to people since there has been a renewed interest in our water. They are still in the process of structuring the Health Fair meeting. This is a great way to get information out to people who have concerns. FRIDLEY CITY COUNCIL MEETING OF JULY Z3, 2012 PAGE 5 Dr. Burns said he is prepazing to do another cable television show on August 15, with the MPCA and the Department of Health. This can be viewed on the Fridley home page or Fridley video on demand. Councilmember Saetke said the Fridley Community Tl�eater will be performing "5eussical the Musical" this weekend at 7:00 p.m. at Fridley High School. If you would like to attend tickets can be reserved in advance at FCC or purchased the night of the shQw at the school. The dates are this Friday and Saturday and next Friday, Saturday at 7:00 p.m. and a Sunday matinee. The price for tickets is $10 for advlts and $8 far senioxlstudents. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:55 P.M. Respectfully Submitted, Krista Monsrud Scott J. Lund Recarding Secretary Mayor �• a CfTY OF FRIDLEY Date: To: From: Subject: AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 August 14, 2012 William Burns, City Managerd fi1` � Scott Hickok, CommuniTy Development Director Julie Jones, Planning Manager Resolution Aftirming SP #95-OS and SP#04-OS Permitting a Garden Center At Home Depot, Generally Located at 5650 Main Street NE Background Last October, the City Council, upon request by staff, passed a resolution revoking Home Depot's special use permits allowing a garden center at their store at 565� Main Street if they did not discontinue repeated outside storage violations on site through August 6, 2012. Home Depot did comply with the request to abide by the stipulations of their special use permits_ Therefore, it is legally necessary for the Fridley City Council to adopt and file the attached resolution to prevent the stQre from Iosing their permits on record. Recommendation Staff recommends that the City Council approve the attached resolution. Staff will ensure that the resolution is recorded at the County. 1� RESQLUTION NO. 2012- A RESOLUTION AFFIRMING SPq95-05 AND SP#04-OS PERMITTING A GARDEN CENTER AT HOME DEPOT, GENERALLY LOCATED AT 5650 MAIN STREET NE WHEREAS, on July 24, 1995, the Fridley City Council granted special use permit SP#95-OS to Home Depot USA, Incorporated, generally located at 5650 Main Street, to allow a garden center or nursery in a C-3 zoning district with six stipulations; and WHEREAS, on December 6, 2004, the Fridley City Council granted special use permit SP#t04-OS to Home Depot, generally located at 5650 Main Street, to amend the existing special use permit to allow the expansion of the garden center; and WHEREAS, on October 10, 2011, the Fridley City Council found that Home Depot had repeatedly violated an outdoor display stipulation on each special use permit, and concluded that Fridley City Code allows revocation of an SUP if stipulations are violated; and WHEREAS, the City Council of the City of Fridley revoked special use permits SP#95-OS and SP#t04-OS pursuant to Section 205.OS.S.G of the Fridley Zoning Code, effective August 31, 2012, provided that such revocation would not take effect if there were no further sales, storage, or display of plant material or any other merchandise outside of the confines of the garden center walls documented by the Community Development staff through August 6, 2012; and WHEREAS, the Community Development staff has inspected the Home Depot site several times between October 10, 2011 and August 6, 2012 and has found no outdoor storage violations at the store; NOW, THEREFORE, BE IT RESOLVED that Fridley City Council's prior conditional revocation of Home Depot in Resolution No. 2011-50 is of no further force and effect and the City of Fridley hereby affirms special use permits SP #95-OS and SP #04-05, aliowing a garden center at 5650 Main Street subject to Home DepoYs continued obligation to fulFll the conditions set forth therein. PASSED AND ADQPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20T" DAY OF AUGUST, 2012. ATTEST: DEBRA A. SKOGEN — CITY CLfRK 2 SCOTTJ. LUND—MAYOR '` � Cf1Y OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING Date: August 3, 2012 AUGUST 20, 2012 To: William Burns, City Manager �F From: Paul Boli�, Asst. Executive HRA Director Subiect: Resolution Settinq Public Hearinq to Create TIF District #21 The Housing and Redevelopment Authority started to acquire properties along the east side of University Avenue in 2006, after being approached by property owners wanting to sell their obsolete retail buildings. Acquisitions concluded in 2011, and demolition of the properties was done in two phases. The first phase of demolition was started in late 2009 and the second phase of demolitions took place in 2011. Prior to demolition, the Authority had all buildings inspected, and all far exceeded the blight threshold required by TIF Statutes. The Authority reviewed the blight reports and adopted a resolution, declaring the properties substandard, allowing the Authority to demolish the buildings prior to the creation of a TIF District. The demolition of the properties removed liability and maintenance expenses for the Authority, but did start the time clock for the creation of a tax increment district. By Statute, the Authority must create a TIF District within 3 years once demolition begins or lose the ability to do so. The Authority can, after district creation, delay collection of increment for an additiona{ 4 years. The Authority has until December of this year to create the district, but can delay collecting increment until December of 2016. The attached resolution calls for setting the date of October 8, 2012 for the Council to hold the public hearing needed to create TIF District #21. TIF District #21 is necessary to ailow the Authority to recover a portion of its investment in the Gateway Northeast area. Recommendation: Staff recommends that the Council approve the resolution, setting October 8, 2012 as the date, to hold the public hearing for the creation of TIF District #21. � RESOLUTION NO. 2012- A RESOLUTION CALLING FOR A PUBLIC AEARING ON MODIFICATIONS TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND TEIE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 6-7, 9,11-13 AND 16-20, CREATION OF TAX INCREMENT FINANCING DISTRICT NO. 21 AND APPROVAL AND ADOPTION OF A TAX INCREMENT FINANCING PLAN RELATING THERETO. BE IT RESOLVED by the City Council (the "Council") of the City of Fridley, Minnesota (the "City"), as follows: Section I. Public Hearing. 1.01. This Council shall meet on Monday, October 8, 2012, commencing at approximately 730 dclock p.m. at Ciry Hall, 6431 University Avenue N.E., Fridley, Minnesota, to hold a public hearing on the following: (a) modification of the Redevelopment Plan for Redevelopment Project No. 1(the "Project Area") to reflect increased pmject costs and inereased bonding authority within the Project Area; (b) modification of the Ta�c Increment Financing Plans for Tax Inerement Financing Districts Nos. 6-7, 9, 11-13 a�d 16-20 (the 'Bxisting TlF Districts") to reflect increased project costs and increased bonding authority within the Project Area; (c) creation of Tax Increment Financing District No. 21 (the "Tax Increment DistricP') and approval and adoption of a Tax Increment Financing Plan relating thereto, al] pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1799, inclusive, as amended and supplemented. Section 2. Notice of Hearing; Filing of Pians. 2.01. The Ciry Clerk is authorized and directed to cause notice ofthe public hearing, substantially in the form attached hereto as Exhibit A, to be published as required by law, to place a copy of the Redevelopment Plan and proposed TaY Increment Financing Plan (collectively the "Plans") on file in the Ciry Clerk's office and to make such Plans available for inspection by the public. PASSED AND ADOPTED BY THE CITY COUNCIL OFTHE CITY OF FRIDLEY, MINNESOTA THIS 20TH DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN, CITY CLERK CERTIFICATION � SCOTT J. LUND, MAYOR I, the duly qualified Clerk of the City of Fridley, County of Anoka, State of Minnesota, hereby certify that the foregoing is a true and correct copy of Resolution No. _ passed by the City Council on the _day of , 2012, CITY CLERK 5 EXHIBIT A NOTICE OF PUBLIC HEARING C1TY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA NOTICE IS HEREBY GNEN THAT the City Council (the "Council") of the City of Fridley, Minnesota, will hold a public hearing on Monday, October 8, 2012, commencing at approximatefy 730 o'clock p.m. at City Hall, 6431 University Avenue N.E, Fridley, Minnesota, to hold a public hearing on the following: (a) modificarion of the Redevelopment Plan for Redevelopment Project No. 1(the "Project Area") to reflect increased project costs and increased bonding authority within the Project Area; (b) madification of the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 6-7, 9, 11-13 and ]6-20 to reflect increased project costs and increased bonding authority within the Project Area; (c) creation of Tax Increment Financing District No. 21 (the "Tax Increment DistricY� and approval and adoption of a Tas Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 4641799, inclusive, as amended and supplemented. Copies of the documentation relating to the above proposed actions will be on file and available for public inspection in the office of the City Cleek. The property proposed to be included in Tax Increme�t District No. 21 include the following PINs and all roads, right of way and easements located adjacent to or as part of the PINs: 14-30-24-34-0007 23-30-24-21-0111 23-30-24-21-0]A3 23-30-24-21-0123 23-30-24-24-0022 14-30-24-34-0008 23-30-24-21-0110 23-30-24-21-Q141 23-30-24-21-0122 14-30-24-34-0010 23-30-24-21-Q109 23-30-24-21-0140 23-30-24-24-0130 23-30-24-21-Q135 23-30-24-21-0134 23-30-24-21-0016 23-30-24-24-0023 The property is generally located at 5831 - 6101 University Avenue NE. The attached man shows the bQUndaries of ttte proposed Tax Increment District and is the area from which ta� increment revenues may be generated, and the boundaries of Redevelopment Project No. 1, the area in which the taY increment revenues may be expended. All interested persons may appear at the hearing and present their views orally or in writing. BY ORDER OF THE C]TY COUNCIL /s! William W. Burns, City Manager MMB: 4844-8560.3344, v, 2 (attach map) r� �� � I 1 � � ,:,: ;1_ I, i � �11 � i1 C�r��.�' 7 � CITY OF FRIDLEY Redevelopment Project Area and Tax Increment Financing Districts LEGEND � Existing TIF Districts 0 Redevelopment Project Area in which tax increment may be spent � Proposed TIF District #21 N � 0 025 0.5 1 y' Miles AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 QTY OF FRIDLEY To: William W. Bums, City Ma��ager fi�� From: Deborah Dahl, Human Resources Director Date: Augus�t 16, 2012 Re: COUNCIL SALARY ADJ[ISTMENTS FOR 2013 In prepararion for the appxoval of the 2013 budget and levy, I am following youx Tecommendation to pxopose a two pexcent (2%) salar9 adjustment for the Mayoc and City Council membets, consistent with the pxoposal for otheT City employees. You may xecall that the Council declined to awaxd themselves an adjusttnent in 2012. It is also ixnpostant to note that the last incxease Council appTOVed for their salaxies �vas in 2009. No other adjustments have been made in theu salaries or benefits since. Pursuant to Section 2.07 of the Fxidley Citp Chaxtex, the City is xequired to adopt by ordinance any adjustment for the Mayox and Councilmembers by Nov. 1. The fixst xeading of the amendment will occux on Aug. 20, 2012, and the second xeacling on Sept. 10, 2012. I have attached the ordinance for consideration. If appxoved, the Cit�� Council's annual salaries fox 2013 shall be as follows: MayoT: $10,732.80 CouncIl Membex At-Laxge: $8,798.40 Council Members (Waxds I, II and III�: �7,800.00 I have attached the xesearch compaxing our peex cides compiled by the League of �4innesota Cities in theic 2012 Salary Suney. As yau will see below, the Ciry of Pridley s3laxies far Council and Mayoz are less than those cities �uith whom we identifg as oux peexs. 2012 2012 °lo Difference Annual Salaries Fridley Peers Fridley is Less Than Peers Mavox 7Q530.57 1Q881.64 -3.23 Council b4emUex At-Lar c 8,632.00 N/t1 N/A Council Membeis �C/axds I, TI, III 7,647.15 8,053.08 -5.04 I will available to attend the Aug. 2Q 2012 Council meeting if you need assistance ox fiuther information. �.� C•� 2012 City of Fridley Salary Comparisons for City Council Source: LMC 2�12 Salary Survey 2012 2012 °/a DI'ff L05S SUMMARY Fridley Peer Cities Than Peers Mayor 10,530.57 10,881.64 3.23 CouncilMemberAt-Large 8,632.00 N/A N/A Council Member 7,647.15 8,053.08 5.04 Breakdown By Peer Cities Council Metro Area Cities Mayor Members Apple Valley 11,220.00 8,028.0� Blaine 12,792.00 9,384.00 Brooklyn Center 11,166.00 8,549.04 Columbia Heights 13,800.00 7,800.00 Coon Rapids 14,000.00 10,500.00 Edina 7,051.00 5,101.00 Fridley 10,530.57 7,647.15 Golden Valley 11,619.00 8,696.00 Lakeville 9,996.00 8,664.D0 Ma plewood 12, 855.00 11, 314.00 New Brighton 8,600.�0 7,000.00 Richfield 9,979.0� 7,746.00 Roseville 9,300.00 7,020.00 St. Louis Park 11,796.00 6,807.00 Woodbury 8,520.00 6,540.00 Average 70,881.64 8,053.08 � ORDINANCE NO. AN ORDINANCE RECODIFYING THE FRIDLEY CITY CODE BY AIVIENDING APPENDIX F TO PROVIDE FOR THE ADJUSTMENT OF SALARIES FOR THE MAYOR AND COUNCILMEMBERS IN ACCORDANCE WITH SECTION 2.07 OF THE CHARTER OF THE CITY OF FffiDLEY The City Cauncil of the City of Fridley does hereby ordain as follows: The annual salaries for the Mayar and Councilmembers during 2013 and subsequem years shall be as follows: Mayor $10,732.80 Councilmember-at-Large $8,798.40 Councilmember, Wazd I $�,800.00 Councilmember, Wazd II $7,800.00 Councilmember, Ward III $7,800.00 In addirion, the Mayor and Councilmemhers shall be entitled to the same beiiefits enjoyed by full- rime authorized employees of the Ciry of Fridley. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF . 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK First Reading: Aug. 20, 2012 Second Reading: Publication: 10 SCOTT J. LUND - MAYOR AGENDAITEM CITY COUNCIL MEETING OF �°F AUGUST 20 2012 FRIDLEY � To: William W. Burns, City Manager From: Darin Nelson, Finance Director ,� Jim Kosluchar, Public Works Director Crreg Tirevold, Special Assessments Date; August 1, 2012 Re: Resolution Directing Prepazation of the Assessment Roil for the Jackson Street Storm Sewer Improvement Project No. 413 Attached you will find the resolution directing prepazation of the assessment roll for the Jackson Street Storm Sewer Improvement Project No. 413. This project included 22 properties. The assessment will be for 10 years at a rate of 5,25%. DRN/gt Attachment 11 RESOLUTION NO. 2012- RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR THE JACKSON STREET STORM SEWER IMPROVEMENT PROJECT NO. 413 WHEREAS, the costs for the Jackson Street Storm Sewer Improvement Project No. 413 have been estimated to be $68,000.00 for the contract price for such improvement and $3,000.00 for expenses incurred in the making of such improvement so that the tota] estimated cost of the improvement is $71,000.00. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FRIDLEY, MINNESOTA: The portion of the cost of such improvement to be paid by the City is hereby estimated to be $39,000.00, and the portion of the cost to be assessed against benefited property owners is estimated to be $32,000.00. Assessments shall be payable in equal installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January, 2013 and shall bear interest at the rate of 5.25 percent per annum from the date of the adoption of the assessment resalution. The Finance Dixectoc, with the assistance of the City Engineer, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regazd to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. The Finance Director shall upon the completion of such proposed assessment, notify the Council thereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20TH DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK 12 SCOTTJ.LUND-MAYOR '• � pTY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 To: William W. Burns, City Manager From: Darin Nelson, Finance Director j� Jim Kosluchar, Public Warks Director Greg Tirevold, Special Assessments Date: I� August 1, 2Q12 Resolution Directing Publication of the Public Hearing Notice for the Jackson Street Storm Sewer Improvement Project No. 413 Attached you will find the resolution directing publication of the public hearing on the assessment roll far the Jackson Street 5torm Sewer Improvement Project No. 413. This project included 22 properties. These properties will be assessed an estimated total of $32,000.00. The Public Hearing Notice will be published in the Focus newspaper on September 6, 2012 as required by State Statute. DRN/gt Attachment 13 RESOLUTION NO. 2012- RESOLUTION DIRECTING PUBLICATION OF THE HEARING ON THE PROPOSED ASSESSMENT FOR THE JACKSON STREET STORM 5EWER IMPROVEMENT PROJECT NO. 413 WHEREAS, by resolution passed by the Council on August 20, 2012, the Finance Director was directed to prepare a proposed assessment of the Jackson Street Storm Sewer Improvement Project No. 413, AND WHEREAS, the Finance Director has notified the council that such proposed assessment has been completed and filed by his office Yor public inspection, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FRIDLEY, MINNESOTA: A hearing shall be held on the 24�' day of September, 2012 in the City Hall at 7:30 p.m. to pas upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heazd with reference to such assessment. The Finance Director is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing and he shall state in the notice the total cost of the improvement. He shall also cause mailed notice to be given to the owner of each pazcel described in the assessment roll not less than two weeks priar to the hearings. The owner of any property so assessed may, at any time prior to certification of the assessment to the cotuity, pay the whole of the assessment on such properiy, with interest accrued to the date of payment, to the City of Fridley, except that no interast shall be chazged if the entire assessment is paid by November 21, 2012. The owner may at any time thereafter, pay to the City of Fridley the entiie amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be eharged through December 31 of the succeeding yeaz. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20TH DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK 14 SCOTT J. LUND - MAYOR AGENDA ITEM CITY COUNCIL MEETING OF °TfOF AUGUST 20 20'12 FRIDLE'f 7 To: William W. Burns, City Manager �( ` From: Dazin Nelson, Finance Director Jim Kosluchaz, Public Works Director Greg Tirevold, Special Assessments Date: August 1, 2012 Re: Resolution Directing Prepazaiion of the Assessment Roll for the Street Improvement Project No. St. 2012-01 Attached you will find the resolution directing preparation of the assessment roll for the 5treet Improvement Project No. St. 2012-01. This project included 225 properties. The assessment will be for 10 years at a rate of 5.25%. ARN/gt Attachment 15 RESOLUTION NO. 2012- RESOLUTION DECLAffiNG COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR THE STREET IMPROVEMENT PROJECT NO. ST. 201Z-Ol WHEREAS, the costs fox the Street Improvement Project No. ST. 2012-01 have been estimated to be $1,Q25,000.00 for the contract price for such improvement and $40,000.00 for expenses incurred in the making of such improvement so that the total estimated cost of the improvement is $1,065,000,00. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FRIDLEY, MINNESOTA: The portion of the cost of such improvement to be paid by the City is hereby estimated to be $540,000.00, and the portion of the cost to be assessed against benefited property owners is estimated to be $525,OOO.QO. Assessments shall be payable in equal installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January, 2013 and shall beaz interest at the rate of 5.25 percent per annum from the date of the adoption of the assessment resolution. The Finance Direetox, with the assistance of the City Engineer, shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parce] of land within the district affected, without regazd to cash valuation, as provided by law, and he shall file a copy of such proposed assessment in his office for public inspection. The Finance Director shall upon the completion of such proposed assessment, notify the Council thereof. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE C1TY OF FRIDLEY THIS 20TH DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK 16 SCOTT J. LUND - MAYOR AGENDA ITEM CITY COUNCIL MEETING OF °"�°F AUGUST 20 2012 FRIDLEY 7 To: William W. Burns, City Manager �� r� . From: Darin Nelson, Finance Director � Jim Kosluchaz, Public Works Director Greg Tirevold, Special Assessments Date: August 16, 2012 Re: Resolution Dixecting Publication of the Public Hearing Notice for the Street Improvement Project No. St. 2012-01 Attached you will find the resolution directing publication of the public hearing on the assessment xoll for the Street Improvement Project No. St. 2012-01. This project included 225 properties. These properties will be assessed an estimated total of $525,000.00. The Public Hearing Notice will be published in the Focus newspaper on September 20, 2012 as required by State Statute. DRN/gt Attachment 17 RESOLUTION NO. 2012- RESOLUTION DIRECTING PUSLICATION OF THE HEARING ON THE PROPOSED ASSESSMENT FOR THE STREET IMPROVEMENT PROJECT NO. ST. 2012-01 WHEREAS, by resolution passed by the Council on August 2�, 2012, the Finance Director was directed to prepare a proposed assessment of the Street Improvement Project No. St. 2012-01, AND WHEREAS, the Finance Director has nQtified ihe council that such pxoposed assessment has been completed and filed by his office for public inspection, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FRIDLEY, MINNESOTA: A hearing shall be held on the 8�' day of October, 2012 in the City Hall at 7:30 p.m. to pass upan such proposed assessment and at such time and place all persons owning property affected by such improvement wil] be given an opportunity to be heard with reference to such assessment. The Finance Director is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing and he sha11 state in the notice the total cost of the improvement. He shall also cause mailed norice to be given to the owner of each parcel described in the assessment roll not less than two weeks priar to the hearings. The owner of any property so assessed may, at any time prior to certification of the assessment to the county, pay the whole of the assessment on such property, with interest accrued ta the date of payment, to the City of Fridley, except that no interest shall be charged if the entire assessmenY is paid by November 21, 2012. The owner may at any time thereafter, pay to the City of Fxidley the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year, PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CTTY OF FRIDLEY THIS 20TH DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK � SCOTT J. LUND - MAYOR ' QTY OF FftIDLEY To: From: Date: Re: AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 William W. Burns, City Manager��\° Darin R. Nelson, Finance Director � August 15`h, 2012 Resolution Abating the Assessment for a Certain Property within the 2009-2 Street Improvement Project On the evening of October 25, 2010 Council approved the final assessment role and resolution associated with the 2009-2 Street Improvement Project. During the week of July 23rd 2012 a property owner (PIN 13-30-24-33-0060) contacted the City inquiring about an assessment showing up on their tax statement. It was at this point staff discovered that a PIN given to the County for an assessment back in 2010 was one digit off from the correct PIN. In working with the County in correcting this matter, it was determined that the best course of action was having Council abate this assessment and having the County make the tax payer whole. The County will then send a letter to the owner of the property that should have been assessed giving them 90 days to pay what is currently owed by them for this project. Staff recommends the approval of the resolution abating the assessment for this property within the 2009-2 Street Improvement Project. 19 RESOLUTION NO. - 2012 A RESOLUTION ABATING THE ASSESSMENT FOR A CERTAIN PROPERTY WITHIN THE 2009-2 STREET IMPROVEMENT PROJECT WHEREA5, the City Council on the evening of October 25, 2010 approved the final assessment on all properties within the 2009-2 Street Improvement Project; and WHEREAS, subsequent to this assessment, it was discovered a clerical error had been made in the final roll given to Anoka County and an incorrect property received an assessment, and WHEREAS, in order to correct this, Anoka County requires that the assessment for this properiy be formally abated, and NOW THEREFORE BE IT RESOLVED that the City Council of the City of Fridley, is abating tbe assessment on the following parcel for the ST. 2009-2 Street Improvement Project PIN 13-30-24-33-0a60 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20ih DAY OF AUGU5T 2012. ATTEST: Debra A. Skogen, City Clerk 2� Scott J. Lund, Mayor '• � CITY OF FRIDLEY To: From Date: Re: AGENDAITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 Wiliiam W. Burns, City Manager ,�4�1� Darin R. Nelson, Finance Director �. August 16, 2012 Resolution Providing for the Issuance and Sale of $1,295,000 General Obligation Equipment Certificates, Series 2012A, and Levying a Tax for the Payment Thereof Attachment 1 is the resolution provided to us by our Financial Advisor, Ehlers & Associates. The resolution is for the sale of $1,295,000 in General Obligation Equipment Certificates. As you will recall, the City issued equipment certificates for the first rime in 2010 as a means of preserving necessazy cash flow reserves needed to maintain current and future operations and service levels. The issuance of equipment certificates is a borrowing method many cities have always used to purchase capital equipment. The debt service for these funds will be generally matched to the life of each asset acquired. The equipment certificates provide funding for both 2012 and 2013 capital outlay items within the Capital Equipment Capital Projects Fund. This Fund accounts for all equipment purchases other than equipment purchased out of the utility enterprise funds. Included in this year's certificate issuance are routine equipment replacement items such as police squad cars and other public works maintenance equipment. In addition to those routine items, there are three larger purchases that account for approximately two-thirds of the issuance. Those purchases include two 6-yard dump/plow trucks for the Streets Division budgeted at $135,000 each, and a pumper truck for the Fire Department budgeted at $600,000. These equipment certificates are designed to be repaid from a general tax levy that will be certified to the County this fall. As part of the process of issuing these certificates, the City of Fridley has undergone a financial review process conducted by Moody's Investors Service who is our bond rating agency. The outcome of the review by Moody's Investors Service has not been completed as of the writing of this memo. Staff participated in the financial review with Moody's on August 14ih and we feel the Aal rating is likely to be maintained. We will be able to provide more definitive information when we receive this year's report from Moody's on Friday, August 17�h. Since the bids are not due until Monday, August 20`", the information from the bidders will not be available until the evening of the Council meeting. Shelly Eldridge from Ehlers will be present to review the results of the bidding process should there be any questions related to the sale. 21 _�__ � � � Debt Issuance Services EHLERS u�asswruaKMro August 20, 2012 Sale Report City of Fridley, Minnesota $1,295,000 Generaf Equipment Certificates, Series 2012A �-J FI�IDLEY � _ ,�;,,,......,, �n�m �«r es,�-eaoo dWw�ahWroueri�O�idn t�oc E61-007-b9'36 �..... �, nr. , ..:�� aoao os�u. Por,o. orr. Raes�Nei, MN �118-019Z Debt Issuance S�rvices � ,_ f-� --------- ._____ � __ �_._______ City of Fridley, MN Results of Bond Sale — August 20, 2012 $1,295,000 General Obligation Equipment Certificates, Series 2012A Purpose Rating: Number of Bids: Low Bidder: True Interest Cost Interest Savings from Lowest to Highest Bid Summarv of Results: To finance the acquisition of capital equipment. Aa 1 2 UMB Bank N.A. in Kansas City, Missouri 13188% Discount Allowance/Premium Bid True Interest Cost: Rounding Amount: Cost of Issuance: Coupan Rates: Bond Buyers Index: Total Debt Service Payments: Low Bid High Bid 13188% 1.4258% $12,950 1.7369% $4,250 $31,500 Q,60 - 2.10°/a 3.95% $ 7 ,406,196 Closing Date: September l2, 2012 Results of Sale Difference $1,280,000 $7,640 1.3185% $119 $30,480 1.00 - 1.65% 3.80% $1,369,068 -$15,000 -$5, 310 -0.4184% -$4,131 -$1,020 -0,15% -$37,129 Council Action: Resolution Providing For The Issuance And Sale Of $1,280,000 General Obligation Equipment Certificates, Series 2012A, And Levying A Tax For The Payment Thereof Attachments: � Bid Tabulation . Updated Debt Service Schedules • Bond Resolution (Distributed in Coimcil Packets) ` The size of the bond issue changed from the projected amount due to a decrease in underwriter's discount and costs of issuanoe. wvuw.ehle�-lnc,com EHLERS ►�n,� w��,. �,.�,� ��.�.�» u�oswniwcrwna qlarrsohYVYavrhrdltcY tot 061-0i7•l606 R�wIN.MN�118-0f71 Debt Issuance Services __,_ �__�.-� _ _ _.��___ _ _ City of Fridley, MN Results of Bond Sale — August 20, 2012 $1,295,000 General Obligation Equipment Certificates, Series 2012A Purpose: Rating: Number of Bids: Low Bidder: True Interest Cost: Interest Savings from Lowest to Highest Bid: S To finance the acquisition of capital equipment. Aa 1 2 UMB Bank N.A. in Kansas City, Missouri 1.3188% Discount AllowanceiPremium Bid: True Interest Cost: Rounding Amount: Cost of Issuance: Coupon Rates: Bond Buyers Index: Total Debt Service Payments: Low Bid 1.3188% $1,295,000 $12,950 1.7369% $4,250 $31,500 0.60 - 2.10% 3.95°!0 $1,406,196 Closing Date: September 12, 2012 High Bid 1.4258% Results of Sale $7,640 1.3185% $119 $3�,48� 1.00 - 1.65% 3.80% $1, 369, 068 Difference -$5, 310 -0.4184% -$4,131 -$1,020 Council Action: Resolution Providing For The lssuance And Sale Of $1,280,000 General Obligation Equipment Certificates, Series 2012A, And Levying A TaY For The Payment Thereof Attachments' • Bid Tabulation • Updated Debt Service Schedules • Band Resolution (Distributed in Council Packets) -0.15% -$37,129 ' The size of the bond issue changed from the projected amount due to a decrease in undenvriter's discount and costs of issuance. � VIM+W,BFiIQi"5-IftC.CC1CTi E H L E RS �R„� w��. �,.�,-� �,�.,a.,�. �. ��M�M�+ OIIa��ohWba�h�di� to� E61-0Y7-E666 firNwA�,AR166N8-0142 Debt Issuanee Ser�ices -■ _:, � __�.__— � _.._ _._ � e ____— _. _..__ _ _____ EHLERS . uw�swwaKrwwa August 20, 2012 Sale Report City of Fridley, Minnesota $1,295,000 General Equipment Certificates, Series 2012A � .� F�IDI�EY � ,,,,,,...:..,, wu��m q��. eat�n-e000 dlaosAnhYYbeasYt�d�rcr toc E6t�07�lEQ6 ww+nr,ehlers-Inc,com �oeoa�a.Pox�a or�n. 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YuU>o W o a u m v oi�`, oo= in$tl ta � �T' F U VI W Z 2¢ ��; C 9 C O� � C N£ P U V 9 O�� n � F O K� 3� " N D � o N o'^ q Faw °p m 3 £LLVIpQ�O� � ��CK£6 Od�uu �wo�z3 zo���,aEwmc"°'wt..�'`v ° " `k` o5a�o � ��v ^��^4. p rm m E'^�YZCn `o�g��s�nov£im_ � ""iO" ` v�av E oQa �� m���.LL�• < w V° o nr`�- `0 5n c 10 � 3' d 3'o a 0¢n'F-�Fw�TCO'_ KO�� aE"m>. uF Q�r-qaa�o"A a � o t'3° ��01� `�' E_ ."-. � �jruz �; i� E� - �aw n��a r� oOZp o= s i 6° v� E ozY °u m T°o` .; d fzYf as�iLL3 = t� a E�o£ a U ' ,�O` E�-'�' v E '^��`se��^vaio` � o�t`�'.�'.bv..3�G� ��Qinz.r.c itL': �E=z,-'�..�aZ¢= = Ga�woi�a <o`o»q-�voc 5yu�= p� �c�u£_'ov` mY"oayao�'"a°O. d�n4�kv�i3a>=c'oA �°'£«`'m=E'°� � o z'' � W ° a ��'^ - v � o� a== w n,ra, :" U�u�Ul�x�m n�o �°`mt � m v�° `m.`.c°� c Attachment 1 RESOLUTION NO. 2012 - RESOLUTION PROVIDING FOR THE I5SUANCE AND SALE OF $1,295,000 GENERAL OSLIGATIQN EQUIPMENT CERTIFICATES, SERIES 2012A, AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City of Fridley, Minnesota (the "City"), has heretofore determined and declazed that it is necessary and expedient to issue $1,295,000 General Obligation Equipment Certificates, Series 2012A (the "Certificates" or individually, a "Certificate"), pursuant to Minnesota 5tatutes, Chapter 475 and Minnesota Statutes, Sections 410.32 and 412301, to finance the purchase of vazious items of capital equipment for the City (the "Equipment") and each item of equipment to be financed by the Certificates has an expected useful life at least as long as the term of the Certificates; and B. WHEREAS, the amount of the Certificates to be issued does not exceed one- quarter of one percent (Q25°lo) of the market value of the taacable property in the City ($2,121,058,550 times 0.25% is $5,302,646); and C. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Certificates and was therefore authorized to sell the Certificates by private negotiarion in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Certificates have been solicited by Ehlers; and D. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Manager, or designee, at the offices of Ehlers, at 12:00 noon this same day pursuant to the Terms of Proposal established for the Certificates; and E. WHEREAS, it is in the best interests of the City that the Certificates be issued in book-entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Fridley, Minnesota, as follows: 1. Acceutance of Pro�osal. The proposal of (the "Purchaser"), to purchase the Certificates, 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, is hereby accepted and the Certificates are hereby awarded to the Purchaser. The Finance Director is directed to retain the deposit of the purchaser and to forthwith return to the unsuccessful bidders any good faith checks or drafts. 2. Certificate Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Certificates shall be dated September 12, 2012, as the date of original issue, shall be issued forthwith on or after such date in fully registered form, shall be numbered from R-1 upwazd in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on the February 1 in the years and amounts as follows: Za Resolution No. 2012- Year Amount 2014 $ 2015 2�16 2017 2�18 2019 2020 2021 zozz Page 2 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 Certifiaate(s). (b) Book Entry Only 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 Certificates, and to this end: (i) The Certificates shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a sepazate single fully registeted Certificate for each maturity of the Certificates; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Certificate shall be deemed to be limited during the Book Entry Only Period to the ouYstanding principal amount of that Certificate. (ii) Upon initial issuance, ownership of the Certificates shall be registered in a bond register maintained by the Regisnar (as hereinafter defined} in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"), (iii) With respect to the Certificates neither the City nor the Registraz shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institurion for which the Depository holds Certificates as securities depository (the "Participant°) or the person for which a Participant holds an interest in the Certificates shown on the books and recQrds of the Participant (the "Beneficial Owner"). Without limiting the immediately pxeceding sentence, neither the City, nor the Registrar, sball 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 Certificates, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Certificates, including any notice of redemption, or (C) the payment to any Parcicipant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, ox intexest on the Certificates, or (D) the consent given or other action 23 Resolution No. 2012- Page 3 taken by the Depository as the Register Holder of any Certificates (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 Particigants to whose accounts the Certificates aze credited on the recocd date idenfified in a listing attached to the omnibus proxy. (iv) The City and the Registrar may treat as and deem the Depository to be the absolute owner of the Certificates for the purpose of payment of the principal of and premium, if any, and interest on the Certificates, for the purpose of giving notices of redempfion and other matters with respect to the Certificates, 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 Certificates, and for all purpose whatsoever. The Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest an the Certificates only to or upon the Holder of the Holders of the Certificates 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 Certificates to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Registrar of written notice to the effect that the Depository has detemiined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in pazagraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Cer[ificate is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Certificate axid all notices with respect to such Certificate shall be made and given, respectively, by the 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 condirion to its acting as book-entry Depository for the Certificates (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 Certificates, collectively hereinafter referred to as the °Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Certificate issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depositary with the Participants for recording and transferring the ownership of beneficial interests in such Certificates. (viii) In connection with any norice ox othex communication to be provided to the Holders pursuant to this Resolution by the City or 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 Registraz may establish a special record date for such consent or other actioii. The City or the Registraz shall, to the extent 24 Resolution No. 2012- Page 4 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 estent possible. (ix) Any successor 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. (c) Termination of EQOk-Entrv On1�S sv tem. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Certificates at any time by giving written notice to the City and dischazging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Certificate 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 Beneficia] Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such funcrions upon reasonable or customary terms, ox if the City determines that it is in the best interests of the City or the Beneficial Owners of the Certificate that the Beneficial Owners be able to obtain certificates for the Certificates, the Certificates 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 tbe Holder of the Certificates shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragtaph 10, the Certificates will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10. (d) 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. 3. Purpose. The Certificates sha11 provide funds to finance the Equipment. The total cost of the Equipment, which shall include all costs enumerated in Minnesota Statutes, Seetion 475.65, is estimated to be at least equal to the amount of the Certificates. 4. Interest. The Certificates shall bear interest payable semiannually on Februazy 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2013, 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 dates as follows: 25 Resolution No. 2012- Maturitv Year Interest Rate 2014 % 2015 2016 2017 2019 2019 2020 2021 2022 Page 5 5. No Ontional Redemption. The Certificates shall not be subject to redemption and pxepayment priar to their stated maturity dates. � 6. Registrar. Bond Trust Services Corporation, in Roseville, Minnesota, is appointed to act as registrar and transfer agent with respect to the Certificates (the "Registrar"), and shall do so unless and until a successor Registrar is duly appointed, all pursuant to any contract the City and Registraz sha11 execute which is consistent herewith. The Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Certificates sha11 be paid to the registered holders (ar record holders) of the Certificates in the manner set forth in the form of Certificate and paragraph 12. 7. Form of Certificate. The Certificates, togethex with the Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: f� UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CTTY OF FRIDLEY GENERAL OBLIGATION EQUIPMENT CERTIFICATE, SERIES 2012A Interest Rate Maturitp Date Date of Or�inal Issue CUSIP _% February 1, 20_ September 12, 2012 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THE CITY OF FRIDLEY, ANOKA COLTNTY, MINNESOTA (the "Issuer"), certifies tt�at it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the matuxity date specified above, without option of prior redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment 26 Resolution No. 2012- Page 6 Date"), commencing February 1, 2013, 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 Cer[ificate will bear interast from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereo£ The principal of and premium, if any, on this Certificate aze payable upon presentation and surrender hereof at the principal office of Bond Tnist Services Corporation, in Roseville, Minnesota (the "Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Certificate will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Certificate is registered (the "Holder") on the registration books of the Issuer maintained by the Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Recoxd Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Holdets not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest Qn this Certificate aze payable in lawful money of the United States of America. So long as this Certificate 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 Certificate and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution. Until termination of Che book-entry only system pursuant to the Resolution, Certificates may only be registered in the name of the Depository or its Nominee. No Ovtional Redemption. The Certificates of this issue (the "Certificates") shall not be subject to redemption and prepayment prior to their stated maturity dates. Issuance; Purpose; General ObliQation. This Certificate is one of an issue in the total principal amount of $1,295,000, all of like date of original issue and tenor, except as to number, maturity, inYerest rate, denomination and redemption privilege issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on August 20, 2012 (the "Resolution"), for the purpose of providing money to finance the purchase of various items of capital equipment for the Issuer. This Certificate is payable out of the General Obligation Equipment Certificates, Series 2012A Fund of the Issuer. This Certificate 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 Certificates are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Certificates of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Registrar, but only in the manner and subject to the limitations pxovided in the Resolution. Refeience is hereby made to the Resolution for a description of the rights and duties of the Registraz. Copies of the Resolution are on file in the principal office of the RegisYrar. 2% Resolution No. 2012- Page 7 Transfer. This Certificate is transferable by the Aolder in person or by the Holder's attorney duly authorized in writing at the principal office of the Registzar upon presentation and surrender hereof to the 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 Registrar. Thereupon the Issuer shall execute and the Registraz shall authenticate and deliver, in exchange for this Certificate, one or more new fully registered Certificates in the name of the transferee (but not xegistered 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 Certificate, of the same maturity and beazing interest at the same rate. Fees u�on Transfer or Loss. The Registrar may require payment of a sum sufficient to covec any tas ox other governmental charge payable in connecrion with the transfer or exchange of this Certificate and any legal or unusual costs regarding transfers and lost Certificates. Treatment of Registered Owners. The Issuer and Registrar may treat the person in whose name this Certificate 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 Certificate shall be overdue, and neither the Issuer nor the Registrar shall be affected by notice to the contrary. Authentication. This Certificate shall not be valid or becoma obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Registrar. Qualified Tax-ExemUt Obli�ation. This Certificate has been designated by the Issuer as a "qualified tax-exempt obligarion" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT I5 HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution, laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Certificate, have been done, have happened and have been performed, in regulaz and due form, time and manner as required by law, and that this Certificate, togethec witlt all other debts of the Issuer outsCanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council has caused this Certlficate 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. � Resolution No. 2012- Date of Registration: REGI5TRAR'S CERTIFICATE OF AUTHENTICATION This Certiftcate is one of the Certificates described in the Resolution mentioned within. Bond Trust Services Corporation Roseville, Minnesota Registrar By Authorized Signature Registrable by: BOND TRUST SERVICES CORPORATION Payable at: BOND TRUST SERVICES CORPORATION CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Manager 29 Page 8 Resolution No. 2012- Page 9 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Certificate, sha11 be construed as though they were written out in full according to applicable laws or regulaYions: TEN COM - as tenants in common T`EN 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) (Ivlinor) (State) Transfers to Minors Act Additional abbreviations mav also be used thoueh not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Certificate and does hereby irrevocably constitute and appoint attorney to transfer the Certificate 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 witt� the name as it appears upon the face of the within Certificate 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 majar stock exchanges or any other "Eligible Guarantor lnstitution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Registrar will not effect transfer of this Certificate unless the inforniation concerning the uansferee requested below is provided. Name and Address: (Include information for all joint owners if the Certificate is held by joint account.) 30 Resolution No. 2012- Page 10 8. Execution; Temporarv Certificates. The Certificates shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and Manager and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corparate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Certificates may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officec whose signature ox facsimile of whose signature sha11 appear on the Certificates sha11 cease to be such officer before the delivery of the Certificates, 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. 9. Authentication. No Certificate shall be valid or obligatory for any purpose or be enYitled to any security ar benefit under this tesolution unless a Certificate of Authenricarion on such Certificate, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Registrar. Certificates of AuthenticaUon on different Certificates need not be signed by the same person. The Registraz shall authenticate the signatures af officers of the Ciry on each Certificate by execution of the Certificate of Authentication on the Certificate and by inserting as the date of registration in the space provided the date on which the Certificate is authenticated, except that for purposes of delivering the original Cartificates to the Purchaser, the Registrar shall insert as a date of registration the date oY original issue of September 12, 2012. The Certificate of Authentication so executed on each Certificate shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Reeistration; Transfer; ExchanQe. The City will cause to be kept at the principal office of the Registrar a certificate register in which, subject to such reasonable regulations as the Registrar may prescribe, the Registrar shall provide for the registration of Certificates and the registration of transfers of Certificates entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Certificate at the principal office of the Registraz, the City shall execute (if necessazy), and the Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee ar transferees, one or more new Certificates of any Authorized Denomination ar Denominations of a like aggegate principal amount, having the same staYed maturity and interest rate, as requested by the transferor; provided, however, that no Certificate may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Certificates may be exchanged for Certificates of any Authorized Denomination or Denominafions of a like aggregate principal amount and stated maturity, upon surrender of the Certificates to be exchanged at the principal office of the Registrar. Whenever any Certificates are so surrendered for exchange, the City shall execute (if necessary), and the Registrar shall authenticate, insert the date of registration of, and deliver the Certificates which the Holder making the exchange is entitled to receive. All Certificates sunendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. 31 Resolution No. 2012-_ Page 11 All Certificates delivered in exchange for or upon transfer of Certificates shall be valid genexal obligations of the City evidencing the same debt, and entitled to the same benefits under Yhis resolution, as the Certificates surrendered for such exchange ox transfer. Every Certificate presented or sunendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Registrar may require payment of a sum sufficient to cover any tax or other govemmental charge payable in connection with the transfer or exchange of any Certificate and any legal or unusual costs regazding transfers and lost Certificates. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Registrar, including regulations which permit the Registrar to close its transfer books between record dates and payment dates. The City Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Ri�hts Upon Transfer ar Exchan¢e. Each Certificate delivered upon transfer of or in exchange for or in lieu of any other Certificate shall carry all the rights to inCerest accrued and unpaid, and to accrue, which were carried by such other Certificate. 12. Interest Pavment: Record Date. Interest on any Certificate shall be paid on each Interest Payment Date by check or drafr mailed to the person in whose name the Certificate is registered (the "Holder") on the registration books of the City maintained by the Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is Yhe Holdec thexeof at the close of business on a date (the "Special Record Date") fixed by the Registraz whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Registraz may treat the person in whose name any Certificate is registered as the owner of such Certificate 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 Certificate and for all other purposes whatsoever whether or not such Certificate shall be overdue, and neither the City nor the Registraz shall be affected by notice to the contrazy. 14. Delivery; Application of Pxoceeds. The Certificates when so prepazed and executed shall be delivered by the City Manager to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereoY. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Qbligation Equipment Certificates, Series 2012A 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 32 Resolution No. 2012- Page 12 be maintained in the manner herein specified until all of the Certificates and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: 16. �ital Account. To the Capital Account there shall be credited the proceeds of the sale of the Certificates. From the Capital Account there shall be paid all costs and expenses of the acquisition of the Equipment including all costs incurred and to be incurred of Yhe kind authorized in Minnesota Statutes, Section 475.65; and the moneys in the Capital Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Certificates may also be used to the extent necessary to pay interest on the Certificates due priox to the anticipated date of commencement of the collection of taxes herein levied. 17. Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Accouni (i) all taxes herein and hereafter levied for the payment of the Certificates; (ii) all funds remaining in the Capital Account aftei the payment of all costs of acquisition of the Equipment; (iii) all investment earnings on funds held in the Debt Service Account; and (iv) any and all other moneys which are properly available and are appropriated by the governing body of the Ciry to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest of the Certificates and any other general obligation certificates of the City hereafrer issued by the City and made payable from said account as provided by law. No portion of the proceeds of the Certificates 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 (i) for a reasonable temporazy period until such proceeds are needed for the purpose for which the Certificates were issued and (ii) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Certificates or $100,000. To this effect, any proceeds of the Certificates and any sums from time to Ume held in the Capital Account or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the certificates payable therefrom) in excess of amounts which under then-applicable federal azbitrage regulations may be invested without regazd to yield shall not be invested at a yield in excess af the applicable yield restrictions imposed by said azbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage xegulations. 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 Certificates to be "federally guaranteed" within the meaning of Section 149(b) of the Intemal Revenue Code of 1986, as amended (the "Code"). 18. Taac Levy; Coverage Test. To provide moneys for payment of the principal and interest on the Certificates there is hereby levied upon all of the ta�cable property in the City a direct annual ad va7orem taY which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the yeazs and in the amounts as follows: Year of Tax Lew 2U13-2�20 Year of Tax Collection 2014-2022 33 $ Amount Resolution No. 2012- Page 13 The taac levies aze such that if collected in full thay, together with other xevenues hexein pledged for the payment of the Certificates, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Certificates. The tax levies shal] be irrepealable so ]ong as any of the Certificates 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. 19. Defeasance. When all Certificates have been discharged as provided in this pazagraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Certificates shall cease. The City may discharge its obligations with respect to any Certificates which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; ar if any Certificate should not be paid when due, it may nevertheless be dischazged by depositing with the Registraz 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 pregayable Certificates called for redemption on any date when they are prepayable according to their terms, by depositing with the 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 Certificates, subject to the provisions of law now or hereafter authorizing and regulating such action, by deposiring 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, beazing 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. 2Q Compliance with Reimbursement Bond Reeulations. The provisions of this paragraph aze intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Keimbursement Regulations") applicable to the '4eimbursement proceeds" of the Certificates, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or wiil have paid priar to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (a) 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 N�ritten declaration of the City's official intent (a "Declaration") which effecrively (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 funetional description of the properiy, 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 Declazation shall necessaxily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Ragulations to include engineering or architectural, 34 Resolution No. 2012- Page 14 surveying and soi] testing expenses and similar prefatory costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Certificates, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Certificates. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Certificates or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Certificates and in all events within the period ending on the date which is the later of three years after payment of the Reimbursement Expenditure or one year after the date on which Yhe Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of bond proceeds to reimburse the Reimbursement Expenditure and, if made within thirty days after the Certificates aze issued, shall be treated as made on the day the Certificates aze 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 Certificates stating in effect that such action will not impair the tax-exempt status of the CerCificates. 21. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Certificates, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is evex insufficient ta pay all principal and interest then due on the Ceriificates and any other certificates payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which aze 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 tl�erein. 22. Certificate of Registration. A certified copy of this resolution is hereby directed to be filed with the County Auditor of Anoka County, together with such other information as the County Auditar shall require and there shall be obtained from the County Auditar a certificate that the Certificates have been entered in The Bond Register and that the tax levy required by law has been made. 23. Continuing Discloswe. The City is the sole obligated person with respect to the Certificates. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), piomulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual 35 Resolution No.2012- Page 15 financial information and operating data in accordance with the Undertalcing. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be ptovided to the MSRB notice of the occunence of certain events with respect to the Certificates in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such amendment. (d) The City agxees that its covenants pursuant to the Rule set forth in this pazagraph and in the Undertaking is intended to be for the benefit of the Holders of the Certificates 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 othex officer of the City authorized to aet 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 modiScations thereof or additions thereto as are (i) consistent with the requirements undex the Rule, (ii) required by the Purchaser of the CertiScates, and (iii) acceptable to ihe Officers. 24. 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 Certificates, certified copies of all proceedings and records of the City relating to the Certificates 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 Certificates 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, certifieates and affidavits, including any heretofQre furnished, shall be deemed representarions of the City as to the facts recited therein. 25. Negative Covenant as to Use of Proceeds and EcLui�ment. The City hereby covenants not to use the proceeds of the Certificates or the equipment financed thereby, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the equipment, in such a manner as to cause the Certificates to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the �ode. 26. Tax-Exempt Status of the Certificates and Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Certificates, ancluding without limitation (i) requirements xelating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Certificates, and (iii) the rebate of excess investment eamings to the United States if the Certificates (together with other obligations reasonably expected to be issued and outstanding at one rime in this calendar year} exceed the small issuer exception amount of $5,000,000. 36 ResolutionNo.20i2- Page 16 For purposes of qualifying for the small issuer exception to the federal azbitrage rebate requirements for governmental units issuing $S,OQO,Q00 or less of bonds, the City hereby finds, determines and declares that (i) the Certificates are issued by a governmental unit with general taacing powers; (ii) no Certificate is a private activity bond; (iii) ninety five percent or more of the net proceeds of the Certificates aze to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction Qf the City); and (iv) the aggregate face amount of all tax exempt bonds (other than private activity bonds) issued by the City (and all entities subordinate to, or treated as one issuer with the City) during tha calendar year in which the Certificates are 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. 27. Desienation of Oualified Ta�c-Exempt Obligations. In order to qualify the Certificates as "qualified taac-exempt obligations" witlun the meaning of Section 265(b)(3) of the Code, the Ciry hereby makes the following factual statements and representations: (a) the Certificates aze issued after August 7, 1986; (b) the Certificates are not "private activiry bonds" as defined in Seation 141 of the Code; (c) the City hereby designates the Certificates as "qualified tas-exempt obligarions" for purposes of Seetion 265(b)(3) of the Code; (d) the reasonably anticipated amount of taa�-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 entiues whose obligations are treated as issued by the City) during tlus calendar yeaz 2012 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendaz year 2012 have been designated for purposes of 5ection 26S(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. 28. Pavment of Issuance Ex�enses. The City authorizes the Purchaser to forward the amount of Certificate proceeds allocable to the payment of issuance expenses to K1einBank, in Chaska, Minnesota, on the closing date for further distribution as directed by the City's financial advisor, Ehlers. 29, Severabilitv. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity ar unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions hereof. 30. Headines. Headings in this resolution are included for convenience of reference only and aze not a part hereof, and shall not limit or define the meaning of any provision hereof. 37 '• CfT'! OF FRIDLEY To: From: Date: Re: AGENDA ITEM CITY COUNCIL MEETING OF Af�GUST 20, 2012 William W. Burns, City Manager ��� Darin R. Nelson, Finance Director � August 1, 2012 Approve Post-Issuance Debt Compliance Policy Background The Internal Revenue Service (IR5) is responsible for enforcing compliance with the Intemal Revenue Code (the "Code") and regulations promulgated thereunder ("Treasury Regulations") governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and vazious "Tax Credit" Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt compliance policy and pxocedures to safeguard against post-issuance violations. Post-Issuance Debt Compliance Policy Objective The City desires to monitor these obligations to ensure compliance with the Code and Treasury Regulations. To help ensure compliance, the City has developed the following policy (the "Post- Isuance Debt Compliance Policy"). The Post-Issuance Debt Complianee Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance. Recommendation Staff recommends the City Council approve the Post-Issuance Debt Compliance Policy to help ensure that all obligations will be in compliance with all applicable federal regulations. .� City of Fridley, Minnesota Post-Issuance Debt Compliance Policy The Finance Director of the City is designated as the City's agent who is responsible for post- issuance compliance of these o6ligations. The Finance Director shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the "Post-Issuance Debt Compliance Procedures"). At a minimum, the Post-Issuance Debt Compliance Procedures for each qualifying obligation will address the following: l. General post-issuance compliance; 2. Proper and timely use of obligation proceeds and obligation-financed property; 3. Arbitrage yield restriction and rebate; 4. Timely filings and other general requirements; 5. Additional undertakings or activities that support points 1 through 4 above; 6. Maintenance of pxoper records related to the obligations and the investment of proceeds of obligarions; 7. Other requirements that become necessary in the future. The Finance Director sha11 apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results_ Further, the Finance Director will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis. The Finance Director or any other individuals responsible for assisting the Finance Director in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance. Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to taxable governmental obligations unless there is a reasonable possibiliYy that the City may refund their taxable govemmental obligation, in whole or in part, with the proceeds of a tax-exempt govemmental obligation, If this refunding possibility exists, then the Finance Director shall treat the taxable governmental obligation as if such issue were an issue of taY-exempt governmental obligations and cQmply with the requirements of this Post-Issuance Debt Compliance Folicy. Private Activity Bonds The City may issue tax-exempt obligations that are "private activity° bonds because either (1) the bonds finance a facility that is owned by the City but used by one or more qualified 501(c)(3) organizations, or (2) the bonds aze so-called "conduit bonds", where the proceeds are loaned to a qualified 501(c)(3) organizarion or another private entity that finances activities eligible for tax- exempt financing under federal law (such as certain manufacturing proj ects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the Finance Director shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy. 41 2 In a case where compliance activities are reasonably within the control af a private party (i.e., a 501(c}(3) organization or canduit borrower), the Finance Director may determine that all ar some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant party. In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the City under federal law. In a case where the Finance Director is concerned about the compliance ability of a pcivate party, tl�e Finance Director may require that a trustee or other indapendent third party be retained to assist with recard keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities. The Finance Director is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the City is in compliance with this Post-Isuance Debt Compliance Policy. 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Inc dba Shortstop-Fridley 1298 E Moore Lake Drive Birkshire Home Solutions Additional Solicitor Jeff Douma Amanda Rueckert Applebee's 5277 Central Avenue NE Christopher M During Chris & Rob's Chicago Taste Authority 7429 E River Rd Fridley Fire Dept. Auxiliary "Flames" Katherine Messex 6431 University Ave Fridley Columbia Heights Rotary Club Gordon Backlund Secretary Fridley Columbia Heights Rotary Club Gordon Backlund Secretary 72 APPROVED BY: Public Safery Director City Clerk Public Safety Public Safety City Clerk Public Safety City Clerk Fire Department Public Safety Planning Fire Department Public Safety Planning Public Safaty CRY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 LICENSES Bettin Inc DBA Ecowater Boiler Experts LLC Bo��fes Plumbing, Heatin� Brickner Builders Inc Cashion HVAC Services Erickson PHC Faulkner Construction Flare Heating & Air Conditionim, Genadek Landscaping Heating & Cooling Solutions Inc JJ Jacobsen Construction Knight Heating & Air Conditioni LibeRy ComfoR Systems M& D Plumbing & Heating Inc M& D Plumbing & Heating Inc Ma¢ Mechanical Pipeline [ndustries Inc Sheehy Construction Company Inc or Heatin Jenn Sandrall Blackto Lilas Anderson Heatin Stac Erickson Commercial or Jim Faulkner Commercial or Stan Genadek S ecial[ Heatin Brian Riche Excavatine Jason Jacobsen Gas I Michael Daleiden Heatin Rodne � Albers Excavatin Wes Chtist Commercial or Jimmy Schoenberger S ecialt � Commercial or Gary Stubbs S ecialt Heatin Ben Stern HeatinQ Lisa Lvnch 73 Ron Julkowski, CBO Ran Julkowski, CBO Ron Julkowski. CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Ron Julkowski, COB Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO Ron Julkowski, CBO J Ron J C�Tii17 (.=I AGENDA ITEM U CITY COUNCIL MEETING OF �� AUGUST 20, 2012 TO: WfLL1AM W. BURNS, CITY MANAGER��4� FROM: DARIN R. NELSON, FINANCE DIRECTOR � CRAIG A. ELLESTAD, ACCOUNTANT 1 SUBJECT: RESOLUTION CERTIFYING THE PROPOSED TAX LEVY REQUIREMENTS FOR 2013 TO ANOKA COUNTY DATE: August16,2012 In conformance with Chapter 275.065, Subd.1, of the Minnesota Statutes, attached is a resolution certifying the proposed tax levy requirements to the Anoka County Auditor. Chapter 275 requires the City to certify a proposed property tax levy to the Anoka County Auditor on or before September 15. The staff is recommending a 2013 proposed tax levy of $11,270,674. This is a 5.3% increase from what was approved last year, and is the maximum levy allowed by the Charter. The make-up of the 2012 proposed levy is as follows: $10,703,739 Certified to County for 2012 385,335 3.6% Inflation per CPI-U MpIs/St Paul 181,600 2012 Equipment Certificates (zoi2 a zo�3) $11.270.674 2013 P�oposed Tax Levy We request the City Council pass the attached resolution to certify the proposed tax levy requirements. Please remember at this meeting we need to announce the final budget and levy will be discussed at our December 3rd meeting and the public shall be allowed to speak. DRNJce Attachment cc:Deb Skogen 74 RESOLUTION NO. 2012 - ?? A RESOLUTION CERTIFYING PROPOSED TAX LEVY REQUIREMENTS FOR 2013 TO THE COUNTY OF ANOKA WHEREAS, Chapter Seven, Section 7.02 of the Charter of the City of Fridley, grants the City the power to raise money by taxaYion pursuant to the laws of the State of Minnesota; and WHEREAS, Minnesota Statute Chapter 275, Section 065 requires the City to certify its proposed tax levy requirements to the County Auditor on or before September 15; and NOW THEREFORE, BE IT RESOLVED, that the City of Fridley certify to the County of Anoka, State of Minnesota, the following proposed tax levy to be levied in 2012 for the year 2013: GENERA� FUND General Fund MARKET VALUE BASED REFERENDUM LEW Springbrook Nature Center BONDEDINDEBTEDNESS 2005A GO Improvement Bonds (Streets 2005) 2006A GO Improvement Bands (Streets 20os) 2007A GO Improvement Bonds (Streets 2007) 2008A GO Improvement Bonds (Streets 2008) 2010B GO Equipment Certificates (Equip 10&11) 2012A GO Equipment Certificates (Equip 12&13) TOTAI AL� FUNDS $ 9,972,346 $ 331,700 171, 379 203,500 189,8D0 144, 906 75,443 $ 181,600 $ 11,270,674 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 2�th DAY OF AUGUST. 2012. ATTEST: DEBRA A. SKOGEN - C4TY CLEftK 75 SCOTTJ.LUND-MAYOR ' F�D�.i AGENDAITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 TO: WILLIAM W. BURNS, CITY MANAGER�'I� FROM: DARIN R. NELSON, FINANCE DIRECTOR � CRAIG A. ELLESTAD, ACCOUN7ANT SUBJECT: RESOLUTION ADOPTING THE 2013 PROPOSED BUDGET DATE: AUGUST 16, 2072 In conformance with Chapter 275.065, Subd.1, of the Minnesota Statutes, attached is a resolution adopting the 2013 proposed budget. Chapter 275 requires the City to certify a proposed budget to the Anoka County Auditor on or before September 15. We request the City Council pass the attached resolution and adopt the 2013 proposed budget. Remember that the levy resolution must be adopted prior to adopting the budget. DRN/ce Attachment cc: Deb Skogen %s RESOLUTION NO. 2012 -?? A RESOLUTION ADOPTING THE 2013 PROPOSED BUDGET WHEREAS, Chapter 7, Section 7.D4 of the City Charter provides that the City Manager shall prepare an annual budget; and WHEREAS, the City Manager has prepared such document and the City Council has met for the purpose of discussing the budget; and WHEREAS, the City Council will hold a public meeting on December 3, 2012 before determining a final budget; NOW THEREFORE, BE IT RESOLVED that the following proposed budget be adopted and approved: GENERALFUND Taxes Current Ad Valorem Delinquent, Penalties, Forfeited Licenses and Permits Licenses Permits Intergovernmental: Federal State: Local Government Aid All Other Charges for Services: General Government Public Safety Public Works Community Development Recreation Fines and Forfeits Special Assessments Interest on Investments Miscellaneous Revenues Other Financing Sources: Sales of General Fixed Assets Liquor Fund Closed Debt Service Fund TOTAL REVENUES AND OTHER FINANCING SOURCES Fund Balance: General Fund Reserve TOTAL GENERAL FUND ESTIMATED REYENUE $ 9,972,346 125.000 266,900 533,250 62,000 0 744,082 1,440,600 287,752 38,OD0 11,500 216,900 155, 000 44,100 54,600 161,Q00 250,000 350,000 14,713,030 40,175 $ 14,753,205 Legislative: City Council City Management: Genera� Management Human Resources Legal Finance: Elections Accounting Assessing MIS CiYy Clerk/Records Police: Police Emergency Management Fire: Fire Rentallnspections Public Works: Municipal Center E�gineering Lighting Park Maintenance Street Maintenance Garage Recreation: Recreation Community Development Building Inspection Planning Reserve: Emergency Nondepartmental: 77 APPROPRIATIONS $ 131,445 294,755 211,876 423,990 6,460 709,852 214,991 253,375 161,545 5,358,493 19,846 1,242,332 149,110 263,768 556,492 268,000 s�a,aas 1,106,619 445,325 887,984 322,559 466,942 12a,000 162,600 $ 14,753,205 SPECIAL REVENUE FUNDS Cable TV Fund Grant Management Fund Solid Waste Abatement Fund Police Activity Fund Springbrook NC Fund Fund Balance TOTAL SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS Capital Improvement Fund Building Capital Improvement S[reets Capital lmprovement Parks Capital Improvement Fund Balance Total Capital Improvement Fund Capital Equipment Fund Capital Equipment Notes Fund Balance TOTAL CAPITAL PROJECTS FUNDS 70TAL ALL FUNDS $ 286,000 107,383 349,196 0 425,400 (167,162) $ 1,00a,817 $ 249,835 605,940 28,680 418,045 $ 1,302,500 $ 243,500 82'1,900 'I ,065,40D $ 2,367,900 0 Cable N Fund $ 171,347 Grant Management Fund 107,383 Solid Waste Abatement Func 311,065 Police Activity Fund 0 Springbrook NC Fund 411,022 Fund Balance 0 Building Capital Improvemen Streets Capital Improvement Parks Capital Improvement General Fund Machinery $ 1,000,817 $ 232,500 900,000 170,000 $ 1,302,500 $ 1,065,400 1,065,400 $ 2,367,900 $ 18.121.922 PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20th DAY OF AUGUST 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK � SCOTTJ.LUND -MAYOR 'r � crrr oF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 Date: August 14, 2012 i7_, ��� To: William Burns, City Manager � From: Subject: Scott Hickok, Community Development Director Julie Jones, Planning Manager Kay Qualley, Planning Intern Resolution Approving Three LCDA TOD Grant Applications Background In June, the Ciry was notified that it had the opportunity to apply for Livable Communities Transit Oriented Development grant funds one more time this year. Fridley qualifies for this program since it is a Livable Communities program participant city and has a commuter rail station. Earlier this year, staff applied for two grants, but neither grant request was awarded. One of the projects has since received Federal funding and the other appears to be oceuning with private investment. Staffspent some time brainstorming and debating the scoring capacity ofvarious TOD project ideas and decided to pursue three separate grants. Two of the three grant requests submitted are pre-development grant projects. These projects involve design work and are not tied to the construction of a building. Pre- develapment grants in this program require a 25% local match. One of the three grant requests is for a development grant. This grant category is for projects that involve land acquisition. Matching funds are not required for development grants. The grant applications were due and submitted to the Metropolitan Council on August 13, but, due to the short timeline to prepare applications, the Metropolitan Council is allowing Cities to submit the authorizing City Council resolutions afrer the deadline. Since there are County roadways involved in Fridley's TOD zoning district, staff asked Anoka County to approve a resolution of support as well, and they did on July 24`h without la�owing the financial details of Fridley's applications, which werejusY completed the day of submission. Summary of Applications Application 1: Transit TIF Master Plan One of the pre-development TOD grant applications is to cover the cost of master planning the entire Fridley proposed Transit Tax Increment Financing District. Two years ago, Fridley obtained special legislation [o be allowed to designate the first of its kind transit TIF district, The hope was that a 25 acre piece of vacant land at the corner of East River Road and I-694 would be the catalyst to produce tax increment for the potential district when it ��as developed. The City also approved a Transit Oriented Development overlay zoning dish�ict that assured high-guality davelopment of greater densiTy could occur on the site. A recently reduced 79 price on this land has brought several developers to meet with City staff, but none to date have proposed a development that maximizes the potential density the TOD district can accommodate. It is clear to City staff that without a TOD-qualifying plan or a 57'� Avenue bridge design drawing to show developers interested in this vacant site, developers are failing to see how that future connection will transform the marketability of the site. In addition few seem to realize that the Northstar train station is only a half mile away, which is a reasonable walking distance. Staff also noticed during the East River Road Corridor meetings that most people liked the idea of the 57`" Avenue bridge over the railroad tracks, but few understood how the connection could connect to the river and housing in the area. Without a plan for the area in place, staff fears that millions of dollars in potential redevelopment will never materialize since few people are envisioning the potential the City sees for the future transit TIF district. Having the district master planned will enable a developer to avoid a lengthy zoning process if they agree to build what the Ciry planned for the site in advance. More importantly, it will lead to higher-value development since future, phased changes are mapped out for future investors to see on paper. Staff is requesting $100,000 in grant funds for this project. Anoka County has committed $5,000 in remaining East River Road Corridor Study funds as part of the required $25,000 in matching funds. That amount is being paid the consultant to begin discussions about the BNSF bridge overpass at 57`h Avenue with the railroad. 5taff has committed to $20,000 in staff time over a two-year time period as in-kind match to meet the remainder of the required local match. Application 2: 61�`lUniversity Pedestrian Bridge The other pre-developmenY grant application involves a request for the maximum $100,000 in TOD grant funds for design of a pedestrian bridge over University Avenue at 61s` Avenue. The City has been approached by a deve]oper that is interested in building a multi-tenant office building at the corner of 61 s' and Universiry. This developer is intrigued by the idea of an elevator for the pedestrian bridge being incorporated into his building, so this project would end up being a public/private parmership. The $265,000 cost for this bridge design, however, exceeds the maximum grant amount allowed. Besides the TOD grant, the City has committed $25,000 in in-kind staff and is seeking $140,000 in other grant funds to finance the project. Application 3: 57`h Avenue BNSF Overpass The development grant being requested is to acquire the land necessary to complete the railroad overpass, connecting 57`" Avenue at Main Street to East River Road at an existing stop light location at the entrance of Georgelow� Apartments. Much of the space needed for the bridge will be provided by easements, but some sections of land need to be purchased and some additional easements need to be negotiated. The cost for this project is projected at $256,723. There are no local match requirements for a development TOD grant. The Metropolitan Council requires that the City, when applying for multiple grants, prioritize the requests. Staff has prioritized the three grant requests according to how likely they are to receive funding. The Master Plan application will most likely score the most points and is the most likely to get funded, but the other two are primarily infrastructure projects, which is not the goal of this grant program. Infrastructure projects need to be tied to new development to score well in the review process. Recommendation Staff recommends that the City Council approve the attached resolution. If funding is awarded, staff intends to bring Future agreements to Council for approval. : 1 Resolution No. 2012- CITY OF FRIDLEY, MINNESOTA RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES TRANSIT ORIENTED DEVELOPMENT FUNDING AND AUTHORIZING APPLICATIONS FOR GRANT FUNDS WHEREAS the City of Fridley is a participant in the Metropolitan Livable Communities Act ("LCA") Local Housing Incentives Program for 2012 as determined by the Metropolitan Council, and is therefore eligible to apply for LCA Livable Communities Demonstration Account and Tax Base Revitalization Account Transit Oriented Development (collectively, "TOD") funds; and WHEREAS the City has identified proposed TOD Projects within the City that meet TOD purposes and criteria and are consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council's adopted metropolitan development guide; and WHEREAS the City has the institutional, managerial and financial capability to adequately manage an LCA TOD grant; and WHEREAS the City certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and WHEREAS the City acknowledges Livable Communities TOD grants are intended to fund projects or project components that can serve as models, examples or prototypes for TOD development or redevelopment elsewhere in the region, and therefore represents that the proposed TOD Projects or key components of the proposed TOD Projects can be replicated in other metropolitan-area communities; and WHEREAS only a limited amount of grant funding is available through the Metropolitan Council's Livable Communities TOD initiative during each funding cycle and the Metropolitan Council has determined it is appropriate to allocate those scarce grant funds only to eligible TOD Projects that would not occur without the availability of TOD grant funding; and WHEREAS cities may submit grant applications for up to three TOD Demonstration Account Projects and up to six TOD Tax Base Revitalization Account Projects during each funding cycle, but, using the city's own internal ranking processes, must rank their TOD Projects by priority so the Metropolitan Council may consider those priority rankings as it reviews applications and makes grant awards. NOW THEREFORE BE IT RESOLVED that, after appropriate examination and consideration, the governing body of the City: 1. Finds that it is in the best interests of the City's development goals and priorities for the proposed TOD Projects to occur at the sites indicated in the grant applications at this particular time. � 2. Finds that the components of the TOD Project for which Livable Communities TOD funding is sought: (a) will not occur solely through private or other public investment within the reasonably foreseeable future; and (b) will occur within the term of the grant award (two years for Pre- Development grants, and three years for Development grants, one year for Cleanup Site Investigation grants and three years for Cleanup grants) oniy if Livable Communities TOD funding is made available for these TOD Projects at this time. 3. Ranks the TOD Project funding applications, according to the City's own internal priorities, in the following order: Grant amount Priority TBRA TOD Project Names requested 1 2 3 4 5 6 LCDA TOD Project Names Grant amount requested 1 Fridley Northstar TOD - TIF Master Plan $100,000 z Fridley Northstar TOD - University Ave $100,000 Pedestrian Bridge 3 Fridley Northstar TOD - 57`h Avenue Parkway $256,723 Overpass 3. Authorizes its staff to submit on behalf of the City applications for Metropolitan Council Livable Communities TOD grant funds for the TOD Project components identified in the applications. ADOPTED THIS 20TH DAY OF AUGUST, 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK : ''' SCOTT LUND - MAYOR AGENDAITEM Q CITY COUNCIL MEETING OF AUGUST 20, 2012 FRIDLEY Date: A4guSt 14, 2012 � To: William Burns, CiTy Manager g� o�� From: 5cott Hickok, Communiry Development Director Julie Jones, Planning Manager Kay Qualley, Planning Intern Subject: Resolution Approving Corridors of Opportunity Principles Background One of the requirements of applying for Livable Communities Transit Oriented Development grant funds is that the Ciry adopt the principles of the Corridors of Opportunity program. The City is actually in partnership with other communities along the Nor[hstar Corridor in a HUD Corridors of Opportunity market study grant currently, but were not asked to approve the attached principles for that grant. The principles of this program are focused on connecting disadvantaged residents with transit, which is a natural fit for Fridley's Northstar Station area since Fridley's highest concentrations of low-income households and disabled households are surrounding the train station. The Metropolitan Council requires cities applying for LCDA TOD gants to approve the attached Corridor of Opportunity statement within six months of applying for a gant. Staffrecommends that the City Council approve the attached resolution �ow, rather than waiting until later, as we may need this documentation for other grant requests in the near future. Recommendation Staff recommends that the Ciry Council approve the attached resol�tion. C; � RESOLUTION NO. 2012 - A RESOLUTION APPROVING "CORRIDORS OF OPPORTUNITY" PRINCIPLES WHEREAS, several regional transit systems traverse the City of Fridley, making Fridley part of the Metropolitan Council's Corridors of Opportunity initiative; and WHEREAS, the City of Fridley has many low income and disabled households living in the Northstar Corridor area that need transit for access to jobs and their housing; and WHEREAS, the City of Fridley shares the Metropolitan CounciPs goals of expanding the transit system and aligning regional transit plauning with local engineering and land use planning; and WHEREAS, the City of Fridley has participated in various HIJD-funded Corridars of Opportunity projects in an effort to provide more transit opportunities for those with the greatest need; NO W, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley approves the Corridors of Opporiwuty principles as listed in Exhibit A. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20�' DAY OF AUGUST, 2012. ATTEST: DEBRA A. SKOGEN - CITY CLERK :� SCOTT LiJND — MAYOR Exhibit A Corridors of Opportunity The Corridors of Opportunity initiative promotes sustainable, vibrant, and healthy communities, using the region's emerging transitway system as a development focus. The Metropolitan Council and a broad consortium of policymakers, faundations, community organizations, and leaders are engaged in these efforts. Funding is provided by a package of loans and grants from the U.S. Department of Housing and Urban Development and Living Cities—a collaboration of Z2 of the nation's largest foundations and financial institutions. Expanding the transit system is a foundation for connecting and growing the region. True success wiil depend on how well the new transit system creates opportunities for the region as a whole, while unlocking opportunities for those with the greatest need. Vision Transitway corridors will guide our region's growth, vitality and competitiveness. Development along transitways will create distinctive places and strengthen local assets while increasing ridership and expanding access to jobs, affordable housing, and essential services for residents of all incomes and backgrounds. Goals • Develop a new model for transitway development by aligning transit planning and engineering with land use planning, affordable housing, workforce development and economic development. • Engage historically underrepresented communities in transitway planning and decision making. • Use transitway development to expand access to jobs and affordable housing, particularly for low-income populations and people of color. • Enhance the region's ability to cooperate in the global economy. • Secure and align public, philanthropic, and private resources to attract robust private investment to the vision, • Accelerate expansion of the transit system. • Incorporate lessons learned from the approach to transitway planning into the Regional Plan for Sustainable Development Pri»cip/es Equity The work of the initiative aims to advance the well-being of low-income peopfe and families. Economrc Competitiveness The initiative will increase the region's ability to compete in the global economy and benefit local people, businesses and communities. � Transparency Active communication about our process and clarity about our results will enhance the value of our work and strengthen our inclusivity. Sustainability An integrated approach that unites economic, environmental and equity concerns; will lead to long-term solutions. Collaboration Wedding collective power of regional stakeholders and local community leadership to effectively address shared challenges and opportunities. Innovation We are creative and entrepreneurial in our outlook, aiming to develop flexible soluCions and practice cutting-edge thinking. Equitable Development Creates healthy vibrant communities of opportunity where low income people, people of color, new immigrants and people with disabilities participate in and benefit from systems, decisions, and activities that shape their neighborhoods. :. AGENDAITEM U CITY COUNCIL MEETING OF AUGUST 20, 2012 Cf[Y OF FRIDLEY TO: William W. Burns, City Manager ,�� � PW12-059 FROM: James P. Kosluchar, Public Works Director DATE: August 17, 2012 SUBJECT: Agreement with Conservation Corps Minnesota and lowa for work in Oak Glen Creek and Stonybrook Corridors In November 2011, the City of Fridley applied to the made an application for Clean Water Fund for crew time to assist in erosion mitigation along the Oak Glen Creek and 5tonybrook Corridors. While we were not awarded the full amount requested, we were provided with 30 crew days for the Oak Glen Creek corridor and 7 crew days for the Stonybrook Corridor. The Conservation Corps provides meaningful work for young people in conserving energy, managing natural resources, responding to disasters and leading volunteers. As part of their program, they provide training in resource management, safety, job-readiness and technical skills, and help young people to develop personal responsibility, a strong work ethic and greater awareness of environmental stewardship. In the Oak Glen Creek corridor west of East River Road, the crews will be responsible for tree thinning, building and installing brush bundles for slope protection, staking and installation, and seeding the slopes to augment stabilization work contempfated under Clty of Fridley Project 380. While we have not received all right-of-entry agreements at this time, we have received approximately half of these, which is enough to allow CCMI crews to begin working. In the Stonybrook corridor west of East River Road, the crew will be responsible for installing live stakes to stabilize the rubber-crumb gabions to assist in completion of City of Fridley Project 409. Bare-rooted plants will be installed through the gabions, particularly in high-slope areas to prevent the gabions from further delamination, and to provide a longer-term stabilization. The crew will perform additional stabilization work as time permits. The City of Fridley wili provide cable, rope, duck bill anchors, stakes, seed, rooting hormone, and erosion control blanket that are needed for the project. This will be provided through our stormwater utility maintenance funds. The work is tentatively scheduled to begin in mid- September, and will be completed by December 2012. � In orderto begin their work, the attached agreement will need to be approved. This agreement has been reviewed and amended by the City Attorney. Staff requests that the Ciiy Council moves to approve the attached Clean Water Grant Fund Work Order Between the Citv of Fridlev and Conservation Corps for Project Number 11524. JPKIpk Attachment :: CLEAN WATER GRANT FUND WORK ORDER BETWEEN THE City of Fridley AND CONSERVATION CORPS Project Number: ll524 This work arder is between the Project Host, City of Fridley ("Project Host") and CONSERVATION CORPS ('The Corps"). This work order is issued under the authority of the Laws of Minnesota 2011, Chapter 6, Article 2, Sec. 7(a), which requires the Board of Water and Soil Resources to co�tract with the Conservation Corps for restoration, main[enance, and other activities, tbr at least $500,000 in each year of the 2012-13 biennium, and is subject to all provisions af the Board of Water and Soil Resources Clean Water Grant Fund Contract, which is incorporated by reference. 1. TERM OF WORK ORDER i.l September 1", 2012, or the date the Corps obtains all required signatures under, whichever is later. 1.2 December 30"', 2012, or until all obligations have been satisfactorily f�lfilled, whichever ocours first. 2. DUTIES OF THE CORPS 2.1 Complete services as specified in Clean Water Fund Project Request Form, which is attached hereto, and shall be a part ofthis work order. 2.2 Enroll and supervise AmeriCorps members in accordance with program guidelines. 23 Provide basic orientation a�d training as appropriate for corpsmembers. 2.4 Provide consultation and on-site project review to ensure that service is progessing in aacordance with this work order and program guidelines. 2.5 Provide personnel and payroll administration for corpsmembers. 2.6 Provide all necessary transpoftation of corpsmembers to and from service sites. 2.7 Provide basic tools, safety gear, personal supplies and equipment �eeded by corpsmembers to meet all PROJECT HOST and federal safety requirements. Provide professional liability and worker's compensation insurance for all corpsmembers. 2.8 Track services completed and make this information available to PROJECT HOST upon request. 2.9 Report financial information on the use of state funds, and outcome and match information in eL1NK using information provided by the PROJECT HOST. 2.1 � Maintain Commercial General Liability (`CGL") Insurance protecti�g it from claims for damages for bodily injury, including sicknzss or disease, death, and for care and loss of services, as well as from claims for property damage, including loss of use which may arise from operations under the conYract whether the operations are by the Corps or by anyone directly or i�directty acting pursuant to the care and control of the Crops. The CGL insurance minimum limits a�e as fQllQws: $1,QQO,Q00 per occurrence and $2,000,000 annual aggregate. The following coverages shall be included: Premises and Operations Bodily Injury and Proper[y Damage, Personal and Advertising Injury, Blanket Contractua] Liability; and Products and Completed Operations Liability. The Corps' CGL insurance policy shall be primary insurance to any other valid and collectible insura�ce available Yo PROJECT HOST. 2.11 Add and name [he City as an additional insured to its CGL insurance policy. 2.12 Indemnify, defend and hold PROJECT HOST, its council, agents, employees, attomeys and representatives harmless against and in respect of any a�d all claims, demands, actions, suits, proceedings, ]osses, costs, expenses, obligations, liabilities, damages, recoveries, arid deficiencies, including interest, penalties and attomeys' fees, that the PROJECT HOST incurs of suffers, which arise out of, results from or relates to Projeet Number 1 1524 and the Clean Water Grant Fund Work Order Between the City of Fndley and Conservation Corps. Page 1 89 3. DUTIES OF PROJECT HOST 3.1 Provide project specific direction and assistance to the corpsmember(s}. 3.2 Provide any requested project information for purposes of grant reporting. 33 Provide at least one media promotion to the public stating that the services(s) are being performed by the Corps. Any publiciry regarding the subject matter of this work order must not be released without prior approval from the Corps' Authorized Representative. 3.4 Ensure safe working conditions in and around project areas that meet all state and federal standards. 3.5 Secure al] local, county, and federa] permits required by law prior to the commencement of work. 3.6 Provide Conservation Corps Crew with training and ed�cational opportunities releva�t to the services being performed. This includes an on-site project overview at the outset of the project which outlines project background, goals and overall outcomes expected as a result of the crews efforts. 3.7 Provide specialized tools, safety gear, persona] supplies and equipment that are not available through the Corps that is needed by corpsmembers to meet all state and federal safery requirements. 3.8 Assist in the acquisition of camping/]odging accommodations if necessary. 3.9 Provide all project materials, supplies and chemicals. 4. CONSIDERATIONS AND PAYMENT 4.1 The Corps will pay for services perforzned, utilizing its Clean W ater Grant Fund accounts. Expenditures from these accounts shal] be expended only for the purposes for which they were approved and intended. 4.2 Materials (chemicals, lumber, hardware, plant material, etc.) shal] be provided by the PROJECT HOST atthe expense of the PROJECT HOST. 5. PROJECT MANAGERS The PROJECT HOST's Project Manager is Jim Kosluchar, City Engineer, 6431 University Ave. NE, Fridley, MN 55432, (763) 542-3552. The PROJECT HOST's Project Manager will certify acceptance on each invoice submitted for payment. If the PROJECT HOST's Project Manager changes at any time during this work order, the PROJECT HOST must immediately notify the Corps. The Corps' Project Manager is Brian Miller, Centra] District Manager, 60 Plato Blvd E, STE 210, St. Paul, MN SS107, (65]) 2�9-9900. If the Project Manager changes at any time during this work order, the Corps must immediately notify the PROJECT F{OST. 6. DUPLICATION, DISPLACEMENT, SUPPLANTATION 61 Conservation Corps crews are subject to the provisions of 42 U.S.C. §§ 12501 - 12682 and 45 C.F.R. parts 2500 - 2550. These ]aws require, in part, that AmeriCorps assistance be used only for a program that: 6.l .l Does not duplicate, and is in addition to, an activity otherwise available in the locality of the program; 6.1.2 W ill not displace an employee or position, including partial displacement such as reduction in hours, wages, or employment benefits; and 6. ] 3 Will not create a service opportuniry that will infringe on the promotio�al opportunity of an employee. 6.2 An AmeriCorps,%Conservation Corps member shall not perform services or duties or engage in activities thar. 6.2. ] Would otherwise be performed by an employee as part of the employee's assigned duties. 6?.2 Will supplant the hiring of employed workers. 6.23 Are services or duties with respect to which an individual has recall rights pursuant to a collective bargaining agreement or applicable personnel procedures. 6.2.4 Have been performed by or were assigned to any presently employed worker; an employee who recenUy resigned or was discharged; an employee who is on leave, on strike, being locked out, subject to a reduction in force, or has recall rights subject to a collective bargaining agreement or applicable personnel procedure. Page 3 90 7. CANCELLATION 7.1 This work order may be cancelled by the PROJECT HOST or the Corps at any time, with or without cause, upon 30 days written notice to the other party. In ihe event of such cancellation, the Corps shall expend dedicated funds for services performed up to date of cancellation. 7.2 The Corps reserves the right to withdraw corpsmembers from PROJECT HOST for emergency response work including, but not limited to, namra] disasters and wild fire response. THE CORPS will make reasonable efforts to accommodate the needs of the PROJECT HOST to ensure rescheduling. CONSERVATION CORPS PROJECT MANAGER PROJECT HOST AUTHORIZED REPRESENTATIVE By: By: Title: Title: Mayor Date: Date: By: Title: City Manager Date: Page 3 91 i' � qTY Of FRIDLEY TO: FROM DATE: AGENDAITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 William W. 6urns, City Manager �11� James P. Kosluchar, Publlc Works Director August 17, 2012 SUBJECT: Oak Glen Creek Project Right-of-Entry Agreement Addendum PW12-062 The City-prepared Right of Entry agreement sent to twenty-one property owners along Oak Glen Creek contains a requirement for the property owners to waive claims for damages occurring on their properties in the course of the tree felling that are based upon negligence and other various theories of recovery. While we have had nine of these signed so far, one of these was returned with edits to make the waiver conditional in that if there was damage to her fence or stairs, the City would be responsible for repair. I have had three or four calfs asking about responsibilities in the event of the same type of damage. When the Giry typically takes on a similar project, the City, and the City's contractor through the contract, take on more exposure to claims than what is included in the agreement. More concisely, the City will typically attempt to repair damage caused to private property under its contracted work. This is often covered under the Contractor's insurance policy. Similarly, the Conservation Corps Minnesota and lowa does hold insurance that would be a first source for dealing with a claim for damage. The City Attorney has worked to provide an agreement that allows access by the City to the Conservation Corps' insurance. I have discussed this matter with the City Attorney, and expressed concern about residents resisting approval of the Right-of-Entry Agreement as it stands. If we do not obtain approval from property owners, the tree removal portion of the project cannot be completed in its entirety. The City Attorney has advised that if the City now wants to take on the risk for damage resulting to above-ground improvements, such as fences, houses, buiidings, etc. that is standard for the City with this sort of project, but contradictory to the current content of the current agreement, that could be achieved through issuance of an addendum to the Right of Entry, signed by the Mayor and City Manager, after authorization by the City Council. With this objective, the City Attorney has prepared the attached addendum to the Oak Glen Creek Project Right-of-Entry Agreements with property owners. This is found on the following two pages, and a sample of the original agreement is attached. If approved, the addendum would be 92 executed by the City and provided as an attachment to all executed agreements, including those that were previously signed. Staff recommends that the City Council move to approve the attached addendum to the Oak Glen Creek Proiect Ripht-of-Enfrv Apreements. JPK;jpk Attachments 93 Addendum to Right of Entry and Waiver of Trespass THIS ADDENDUM, made this day of , 2012, by the City of Fridfey, a municipal corporation organized under the ]aws of the State of Minnesota ("CiTy"). Recitals A. The Ciry has previously provided a Right of Entry and Waiver of Trespass to the O�vner, who is a fee owner of real property described o� Exhibit A("Subject Properry") to the Right of E�try and Waiver of Trespass that and the Subject Property encompasses or is adjacent to a portion of Oak Glen Creek. B. The Right of Entry and Waiver of Trespass relates to a project that is designed to attempt to mitigate excessive erosion to the banks of Oak Glen Creek by cutting down the trees on the Subject Property that are identified on Exhibit B to the Right of Entry and Waiver of Trespass previously provided to the O�vner. C. As further consideration for the execution of the previously provide Right of Entry and Waiver of Trespass, the City now desires to provide that the City will indemnify and hold harmless the Owner for certain damages resulting from City's negligent acts. NOW THEREFORE, without amending any other provisions of the Right of Entry and Waiver of Trespass provided to the Owner, City hereby agrees and shall be bound by the following: Notwithstanding Paragraphs 8 and 9 of the Right of Entry and Waiver of Trespass, City agrees to indemnify and hold harmless the Owner for all liabiliry, daims, and dama�es arising out, resulting from or due to damage to Owner's buildings, fences, stairways, and other structures on the Subject ProperCy due to City's negligence or the negligence of its cou�cil, employees, agents, servants, representatives, and contractors, including but not limited to CCMI. 1 � The undersigned City has caused this Addendum to be executed as of the day and year set forth above. This instrument was drafted by: Darcy M. Erickson LeVander, Gillen & Miller, P.A. 633 South Concord Street, Suite 400 South St. Paul, Minnesota 55075 (6i1�F51-I831 95 CITY OF FRIDLEY By: Scott J. Lund Its Mayor By: William W. Burns Its City Manager sy-: Debra A. Skogen Its City Clerk A SAMPLE OF THE ORIGINAL AGREEMENT SENT TO PROI'EF :S, PROVIDED FOR REFERENGE. THE ADDENDUM MODIFIES 8) AND 9) BELOW. Right of Entry and Waiver of Tresp ^as THIS AGREEMENT, made this day of , 2012, between Roger L. Roelofs and Marylin A. Roelofs, husband and wife, hereinafter individually and collectively referred to as the "Owner", and the Ciry of Fridley, a municipal corporation organized under the laws af the State of Minnesota, its council, employees, its agents, servants, xepresentatives and contractors ("City"). Recitals A. The banks of Oak Glen Creek have been progressively eroding due to a combination of factors, including lack of stabilizing vegetative cover, and collapsing treehoot systems. B. The erosion of the banks results in discharge of sediment into Oak Glen Creek. C. Owner is the fee owner of certain real property situated in the City of Fridley, County of Anoka and State of Minnesota, described on the attached Exhibit A ("Subject Property"). D. The Subject Property encompasses or is adjacent to a portion of the banks of Oak Glen Creek, E. The Ciry has available to it an in-ldnd gxant of 30 crew days from the Conservation Cocps Minnesota & Iowa (`CCMI") that may be used for tree cutting on the Subject Properiy and other affected properties adjacent to Oak Glen Creek or the banks of Oak Glen Creek. F. In order to attempt to mitigate excessive erosion of the banks of Oak Glen Creek through the cutting down of trees to promote vegetative ground cover growth, and eliminate the erosive impacts of weakened trees and roots falling into the creek, it is necessary that the City, its agents, servants, representatives and contractars immediately enter upon the Subject Property to cut down trees. G. The Anoka Conservation District (ACD), in cooperation with Owner, has idenYified trees which should be cut down. H. It is in the best interest of the City and the Owner to cut down the trees on the Subject Property that are identified on Exhibit B. 1 96 Agreement In consideration ofthe premises contained herein and for valuable consideration the receipt of which is hereby acknowledged, it is agreed by the parties that: 1) T'he Owner grants to the City, its council, employees agents, servants, representatives and contractars, including but not limited to CCMI, the right, privilege and license to enter upon the Subject Property for the purposes of ingress and egress and to cut the trees identified on the attached Exhibit B on the Subject Property. 2) The Owner understands and agrees that the City may either leave the cut trees upon the Subject Property or subsequently use the cut trees for further improvements on the Subject Property or elsewhere. 3) The Owner waives all actions, causes of action and claims against the City, its council, employees, agents, servants, xepresentatives, and contractors, including but not limited to CCMI, for trespass on the Subject Property. 4) The Owner waives all actions, causes of action and claims against the City, its council, employees, agents, servants, representatives, and contractors, including but not limited to CCMI, for compensation for the cutting down of the trees identified in E�ibit B or the subsequent use of the cut trees for improvements on the Subject Property or elsewhere. 4) The right, pri��lege and license granted to the City in Paragraph No. 1 hereof shall expire and terminate on December 31, 2013. 5) The Owner covenants, represents, warrants and agrees with and to the City that it is well seized in fee of the Subject Property and has good right to grant to the City the right, privilege and license stated in Paragraph No. 1 hereof. 6) The City shall not be responsible for any costs, expenses, damages, demands, obligations, penalties, attorneys' fees and losses resulting from any claims, actions, suits, or proceedings based upon a release or threat of release of any hazardous substances, petroleum, pollutants, and contaminants which may have e�sted on, ar which relate to, the Subject Property prior to the date hereof. 7) Nothing contained herein shall be deemed a waiver by the Ciry of any governmental immunity defenses, statutory or otherwise. Further, any and all claims brought by Owner, its successors or assigns, shall be subject to any governmental immunity defenses of the City and the maximum liability limits provided by Minnesota Statute, Chapter 466. --j 8) Owner, for itself and its successors and assigns hereby waives and forever releases 97 the City from a111iability and claims, causes of action or proceedings relating in any manner whatsoever to compensation, interest, costs, engineering, appraisal or attorney's fees, based upon theories of condemnation, takings, inverse condemnation, negligence or trespass or any other theories of law resulting from, xelated to, or caused by the City's entry upon the Subject Properry and the Ciry's cutting of trees upon the Subj ect Property. 9) Owner, for itself and its successors and assigns hereby covenants not to sue the City for any claim for damages relating in any manner whatsoever to compensation, interest, costs, engineering, appraisal or attomey's fees, based upon theories of condemnation, takings, inverse condemnation, or trespass resulting from, related to, or caused by the Ciry's entry upon the Subject Property and the Ciry's cutting of trees on the Subject Property. 10) NOTHING CONTAINED IN THIS DOCUMENT SHALL BE DEEMED OR CONSTRUED TO GRANT TO THE CITY A TEMPORARY OR PERMANENT EASEMENT, OR FEE TTTLE INTEREST, IN, OVER, ACROSS, THROUGH OR UNDER THE SUBJECT PROPERTY. The undersigned Owner has caused this Agreement to be executed as of the day and year set forth above. OWNER Roger L. Roelofs Marylin A. Roelofs This instrument was drafted by: Darcy M. Erickson LeVander, Gillen & Miller, P.A. 63S South Concord Street, Suite 400 South St. Paul, Minnesota 55075 (651)451-1831 . � CITY OF FRIDLEY By: Scott J. Lund Its Mayor : : William W. Bums lts City Manager Debra A. Skogen Its City Clerk EXHIBIT A LEGAL DESCRIPTION OF SUBJECT PROPERTY Real Properiy located in ttie City of Fridley, Anoka County, Minnesota, described as follows: That part of Lot Six (6), Block (2) Elwells's Riverside Heights, accoxding to the plat thereof on file and of record in the office of the Registrar of Titles Anoka County, Minnesota, described as follows; Commencing at a point on a line between Lots Six (� and Seven ('�, distant 276.7 feet southwesterly from the northwest corner of said Lot Six (6), thence South and parallel with the East line of Lot One (1), Block Two (2), said subdivision, to the center of Oak Glen Creek, thence westerly along said creek to the line between Lots Six (6) and Seven (7), said subdivision, thence northeasterly along said ]ine to point of beginning ALSO: Lot Seven (7), Block Two (2), Elwell's Riverside Heights, according to the plat thereof on file and of record in the office of the Registrar of Titles Anoka County, Minnesota � �l Not survey quality. Property boundaries approximate. 103024130042 - Exhibit B 150 TALMADGE WAY NE Map 1 � Approximate location of tree to be felled 100 AGENDAITEM � CITY COUNCIL MEETING OF AUGUST 20, 2012 CITY OF FRIDLEY TO: William W. Burns, City Manager ��� PW12-061 FROM: James P. Kosluchar, Public Works Director DATE: August 17, 2012 SUBJECT: Receive Plans and Call for Bids, Police Garage Roof Repair Project No. 414 In 2012, we experienced severe leakage of the roof over the police garage and recreation storage building located just north of the Fridley Municipal Center. While the damage incurred was during a severe rainfall season, the roof over this building has been leaking for many years. Accommodations have been made on the inside of the building to minimize damage due to water intrusion, but they are temporary measures and not effective in maintaining the integrity of the building or contents over the longterm as evidenced in 2011. The roof was installed with construction of the current building in the 1980s. The roofing system includes a waterproof inembrane with protective insulation, which is overlaid with a concrete sidewalk. Planters are incorporated adjacent to the sidewalk, which have a similar liner and insulation. We believe that the liner was compromised during initial construction or subsequent maintenance, and once water gets beneath the walk, it is able to migrate into the buildings. There is also an existing railing that needs repair. We have reviewed several options for repair of this roof, including removal and replacement, sealing, and construction of an above-grade roof. The latter option has been rejected as cost- prohibitive. The proposed project plans include two alternatives, one is to remove the existing concrete and planters, install a new membrane and insulation, and replace the entire area with a new concrete surface. The second alternative includes overlay of the existing walk, and installation of a new membrane underthe existing planters. Both options would provide a new railing along the south side of the proposed walk. A cost estimate for the first option is $198,00�, and for the latter option is $115,000. We recommend bidding the first option of full replacement as the base bid, and allowing the overlay method to be provided as an alternate If approved by the City Council, a bid opening would be scheduled for September 7, and a recommendation should be provided to the City Council at the September 10 meeting. This would allow for construction to begin, and perhaps completed, this fall. Staff requests that the City Council move to receive plans and specifications and caN for bids for ihe Police Garage Roof Repair Project No. 414. JPK:jpk 701 AGENDAITEM � CITY COUNCIL MEETING OF AUGUST 20, 2012 CfTY OF FRIDLEY TO: William W. Burns, City Manager ��� PW12-060 FROM: James P. Kosluchar, Public Works Director DATE: August17,2012 SUBJECT: Proposed Sanitary Sewer Smoke Testing Program For over two decades, the City of Fridley has been making efforts to minimize clear water flows from Inflow and Infiltration (I/I) in its sanitary sewer collection system. Those efforts are intended to avoid sanitary sewer backups in customers' homes and businesses, and to minimize the cost of treatment, which is based on the volume of sewage discharged by the City of Fridley's sanitary sewer collection systems. Past and ongoing efforts include a sump pump disconnection program, manhole retrofit work, sanitary sewer main lining program, sewer system reconstruction program, and sanitary sewer televising and cleaning program. While these efforts have metwith some success in maintaining, even slightly reducing sewerflows over the past decade; it is in the best interest of all ratepayers that the City continues to be aggressive in reducing sanitary sewer flows. The City of Fridley's Sanitary Sewer Utility will pay $3,358,063 in wastewater charges to the Metropolitan Council Environmental Services (MCES) for wastewater treatment in 2012. This amount is from a calculation based on sewer flows that we discharge and offsets their costs of collection and wastewater treatment. This amounts to over 84% of the Sanitary Sewer Division operating budget for 2012. During the severe storm event on July 16, 2011, a main interceptor serving the City of Fridley and Columbia Heights surcharged and approximately 15 homes experienced sanitary sewer backups in Fridley. This event also created similar backups in other north metro cities, including New Brighton and Roseville. See the attached graph showing the sewer flows metered during this storm. The City has a policy of sanitizing basements that experience sanitary sewer backups. Sanitizing of the 15 homes from the July 16 event cost the City of Fridley just over $31,000. An analysis was initiated after the July 2011 storm event to review flows in to review potential problem areas in the sanitary sewer collection system. Foth Infrastructure & Environment was hired to perform data gathering and an initial evaluation of the sanitary sewer system. A report summarizing their findings is attached for your review. The report findings include 1) the determination that during the July 2011 storm, sewer flows in a 33-inch interceptor collecting flows from Fridley and Columbia Heights exceeded the design 102 capacity of the pipe, 2) If the MCES surcharge program was in effect before the July 2011 severe rainfall event, the City of Fridley would have been subject to a sewer flow exceedence charge of approximately $400,000 by MCES, based on the amount of flow that was discharged by the City of Fridley system during that event. The report recommends that the City pursue additional analysis to identify specific sources of excess I/l, to include flow monitoring and smoke testing. Flow monitoring provides information on a segment-by-segment basis to determine locations where sanitary sewer mains and services are contributing infiltration. The process includes setting multiple flow meters at different locations in the system. Flows are measured on a continuous basis to provide baseline (dry) flows, and wet weather flows. The meters are moved up the system following branches that produce high infiltration flows. This monitoring can be particularly successful in identifying locations contributing excess I/l, as meters show a"bounce" in flows when rainfall events occur. Locations that are found to contribute high infiltration can be addressed through repair after subsequent smoke testing, and service and main closed circuit camera inspection by our staff. During smoke testing, a non-toxic smoke is blown into a specific segment of the collection system, typically a one-block segment. Smoke appears at areas where rainfall or clear water flows can enter the sanitary sewer system, such as draintile sumps, rain leaders, storm/sanitary sewer cross connections, or separated pipe joints in services or mains. Priorto testing, there would be an extensive education effortwith this process, as the smoke, while harmless, can enter homes where there are plumbing issues such as dry traps or illicit connections to clearwater sumps. A side benefit to smoke testing is that it can find locations within buildings where harmful sewer gases are unknowingly introduced into buildings. We would provide instructions on ventilating the smoke in the event that it does enter a home. Locations identified by smoke testing where clear water can enter the sanitary sewer system are then reviewed for repair or correction. These mayinclude cross connections or breaks in city mains and service laterals, rain leader connections, iliicit sump pump or drain tile system connections, or internal plumbing/venting problems. We would provide notice to property owners and provide them with a reasonable timeframe for repair. The equipment required for smoke testing can be purchased for approximately $2,500. The manpower required to conduct testing would be provided by the Sewer Division, and possib{y augmented by contract staff as needed which would not exceed $1,500 this year. If this program is approved by the City Council, staff would consider whether a program be established that would provide assistance for repairs on private property, and provide a recommendation to the City Council for consideration. We recommend that flow monitoring and smoke testing be an ongoing part of our I/I reduction efforts, once established. Staff recommends that the City Council move to approve work related to establishing and continuing a sanitary sewer smoke testing program by the Public Works Department. JPK/jpk 103 CITY OF FRIDLEY AGENDA ITEM CITY COUNCIL MEETING OF AUGUST 20, 2012 lNFORMAL STATUS REPORTS 104