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2013-07-15 CC Packet City of Albertville Council Agenda Monday, July 15, 2013 City Council Chambers 7:00 PM PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. M:\Public Data\City Council\Council Agendas\2013 Agendas\071513 Council Agenda.doc Meeting Date: July 15, 2013 1. Call to Order 2. Pledge of Allegiance – Roll Call 3. Recognitions – Presentations - Introductions A. STMA Clay Trapshooting Team (7:45-8:00 p.m.) 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the July 1, 2013 regular City Council meeting minutes as presented (pgs 4-9) B. Accept the June 10, 2013 STMA Ice Arena Board meeting minutes as presented (pgs 10-11) C. Authorize the Monday, July 15, 2013 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 12) D. Approve the Terms and Conditions for Issuance of Conduit Debt Policy (pgs 13-17) E. Approve Resolution 2013-021 Authorizing Execution of a Joint Powers Agreement With the City of Otsego and Approving a Joint Public Hearing (Evans Park, Inc. Project) (pgs 18-26) F. Approve Resolution 2013-022 Authorizing a Joint Powers Agreement with the City of Elk River and Giving Preliminary Approval to the Issuance by the City of Albertville of Refunding Revenue Bonds (Evans Park, Inc. Project) (pgs 27-33) G. Approve the Major Outdoor Music Event Permit for Infit/Anytime Fitness for August 21, 2013 for the hour of 4:30 pm to 8:00 pm at 6589 Laketowne Place in Albertville Minnesota (pgs 34-46) 7. Public Hearings - None Agenda Page 1 City of Albertville Council Agenda Monday, July 15, 2013 Page 2 of 3 M:\Public Data\City Council\Council Agendas\2013 Agendas\071513 Council Agenda.doc Meeting Date: July 15, 2013 8. Department Business A. City Council 1). Committee Updates (STMA Arena, Planning Commission, JPWB, Joint Fire Board, Parks Committee) B. Planning and Zoning 2). Federated Co-ops Inc. Property – Preliminary- Final Plat, Zoning Amendment (From B-3, Highway Commercial to PUD, Planned Unit Development), and Site and Building Plans (pgs 47-54) I. (Motion to adopt Resolution Number 2013-023 entitled a Resolution approving a preliminary/final plat entitled Federated Co-op Addition, relating to the Federated Co-ops Inc. property located at 11229 60th Avenue NE in the City of Albertville.) II. (Motion to adopt Ordinance Number 2013-005 entitled an Ordinance amending the official Zoning Map of the City of Albertville, relating to the Federated Co-ops Inc. property located at 11229 60th Avenue NE in the City of Albertville.) III. (Motion to approve Resolution Number 2013-024 entitled a Resolution approving site and building plans for Federated Co-ops Inc. located at 11229 60th Avenue NE in the City of Albertville.) C. Finance - None D. City Clerk - None E. Public Works and Engineering - None F. Building - None G. Legal - None H. Administration 3). City Administrator’s Update (pg 55) 9. Announcements and/or Upcoming Meetings July 22 Joint Powers Water Board, 6:00 p.m. August 5 City Council, 7:00 p.m. August 9 St. Michael Bowling Challenge, River Lanes Bowling Alley, 5:30 p.m. August 12 STMA Ice Arena Board, 6:00 p.m. City Council Budget Workshop, 7:00 p.m. August 13 Planning Commission, 7:00 p.m. Agenda Page 2 City of Albertville Council Agenda Monday, July 15, 2013 Page 3 of 3 M:\Public Data\City Council\Council Agendas\2013 Agendas\071513 Council Agenda.doc Meeting Date: July 15, 2013 August 19 City Council, 7:00 p.m. Budget Workshop to follow, if needed August 26 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. 10. Adjournment Budget Workshop to Immediately Follow JULY AUGUST Su M Tu W Th F Sa Su M Tu W Th F Sa CC 1 2 3 H 4 5 6 1 2 3 7 Ice 8 PZ 9 10 11 12 13 4 CC 5 6 7 8 9 10 14 CC 15 16 17 18 19 20 11 Ice 12 PZ 13 14 15 16 17 21 JP22 23 24 25 26 27 18 CC 19 20 21 22 23 24 28 29 30 31 25 JP26PK 27 28 29 30 31 Agenda Page 3 Page 1 ALBERTVILLE CITY COUNCIL Monday, July 1, 2013 DRAFT MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER – PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:00 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Council members Olson, Sorensen, Vetsch and Wagner Absent: None Others Present: City Administrator-PWD Adam Nafstad, City Attorney Michael Couri, Finance Director Tina Lannes, City Clerk Kimberly Olson, Dan and Dorene Aleckson, Mike and Linda Everett, Jonathan and Erin Smart, Paul and Lisa Anderson, Susan Dixon, and Samara Postuma 3. RECOGNITIONS, PRESENTATIONS AND INTRODUCTIONS A. STMA 7-8 Girls Lacrosse Team Hendrickson congratulated the team on winning the MSSLAX Gold Spring League Championship. Hendrickson, along with the team’s coaches, presented the girls with certificates of recognition from the City Council. 4. PUBLIC FORUM There was no one present to speak at the forum. 5. APPROVAL OF THE AGENDA Clerk Olson added the St. Michael Bowling Challenge to Albertville on August 9, 2013 and Set a Public Hearing Date for TIF District No. 15 for the Guardian Angels Senior Housing Project. Vetsch added flooding near intersection of 57th Street NE and Lander Avenue NE intersection. Motioned by Wagner, seconded by Sorensen, to approve the agenda as amended. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED CARRIED. Agenda Page 4 City Council Meeting Minutes Page 2 Regular Meeting of July 1, 2013 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by City Staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent Agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the June 17, 2013 regular City Council meeting minutes as presented. B. Authorize the Monday, July 1, 2013 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request. C. Set Budget workshop meetings for July 15, 2013 immediately following the regular City Council meeting, August 12, 2013 at 7:00 p.m., and August 19, 2013 immediately following the regular City Council meeting, if needed. D. Adjust the 2013 Fire Inspection pay rate to $17.00 per hour retroactive to January 1, 2013. E. Approve Minor Music Event Permit for 152 Club, Inc. F. Approve surfacing the basketball court at Winter Park for an amount of $2,580. G. Approve Resolution of Support for I-94 West Corridor Inclusion in the Minnesota State Highway Investment Plan. Motioned by Vetsch, seconded by Sorensen, to approve the consent agenda as presented. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS - None 8. DEPARTMENT BUSINESS A. Public Works and Engineering 1). June 23rd Flood Report Nafstad reported on the details of the weather event that occurred on Sunday, June 23, 2013 and the resulting localized flooding. He discussed past flooding events that had occurred in the area of 54th Street NE and Barthel Industrial Drive NE. He indicated the watershed parameters that encompass the homes near that intersection and stated it is the low point in the watershed. He stated the size of the pipes is limited. Hendrickson encouraged public comment from the audience. Paul Anderson, 11707 54th Street NE, stated his property has seen significant flooding in the past. He inquired as to who is responsible for maintenance of the drainage pond. He stated it appeared the overflow drain for the drainage pond was draining very slowly and creating a backup in the drainage pond and then backing into the properties. His concern is stopping the backup from the drainage pond from happening again. Agenda Page 5 City Council Meeting Minutes Page 3 Regular Meeting of July 1, 2013 Susan Dixon, 11816 54th Street NE, stated this flooding is the worst it has been in the last ten years. She displayed pictures of how high the water reached on vehicles, sign posts, etc. She stated that she has replaced carpet four times in her house because of the flooding. She stated that the current system is not working and the City has not helped when the flooding has damaged her cars and her house. She stated she is very disappointed after coming to meetings for many years. She inquired if the City has declared the area a flood zone. Nafstad stated the City has opted into a FEMA program that allows residents to purchase flood insurance. Dixon stated that the area must be declared a flood zone in order for her to purchase flood insurance through her homeowner’s insurance. Dixon is concerned about mold in the house. Vetsch inquired where the City is in relation to budget for this issue. Nafstad stated preliminary budget discussions will begin at the next meeting. Dixon stated the sewer system has not been updated and it is the original that is still in place and the City has increased in population and number of buildings significantly in the last ten years. Mike and Linda Everett, 11711 54th Street NE, stated that in last year’s storm the water went down faster and in this storm the water barely went down. Everett stated that she has lost her daycare business due to the flooding in her basement. The basement is where her daycare mostly operated and she can no longer have the children in the basement. Mr. Everett stated they are down to a single income and the City should do something for the residents who were flooded to help them out. He stated that resolving this flooding issue should take precedence over other items the Council is reviewing. He stated that they have asked for at least a dumpster for them to put their water damaged property in and the neighborhood did not receive one. Couri replied the City does not have the legal authority to spend public dollars that benefits specific families or residences; it must be spent for a public purpose. The City is confined to the powers granted to them by the Legislature. Couri stated that the affected homeowners can make a claim to the City’s insurer and they will determine if there is City liability for the flooding. Nafstad stated there is a legal design standard that defines what is adequate for the system, but there is no system that can protect against all rain events. Everett stated there is a drainage easement along the properties and the drain area is not maintained by a rental occupant. Couri encouraged them to notify the City whenever that happens. Dan and Dorene Aleckson, 11717 54th Street NE, felt the holding pond is a factor in the flooding that occurred. He invited Nafstad to view the pond after tonight’s meeting and Nafstad replied he would be happy to go. Mr. Aleckson stated there is fencing around the pond that has not been maintained and has a lot of trash in it. Ms. Aleckson would like the County Assessor to review their property because they have lost the use of one bedroom and one bath. The Alecksons stated flood insurance would cost them nearly $6,000 per year. They stated that houses are selling nearby, but there is no way they could sell their house in its condition. Ms. Aleckson asked Agenda Page 6 City Council Meeting Minutes Page 4 Regular Meeting of July 1, 2013 Nafstad to come out and see what they view as a problem. She also said there were no flood signs along 54th Street NE and it can be very dangerous. Nafstad explained the engineering study that had been done in 2008 and the Capital Improvement Plan that the project was placed on. Mr. Everett stated that it seemed more is done on the west side or newer side of town rather than the old side of town. Nafstad stated projects are based on need and there is not intent to have preference over one side of town than the other. Vetsch stated they identified the problem and placed it on the Capital Improvement Plan. The next step will be to get plans and the Council will decide if the money is there to fund the improvement. He wanted to clarify that they City has made actions to address the issue. He stated that they will give it very serious consideration in their upcoming budget discussions. Couri suggested the homeowners should stay in touch with the Council and to keep participating. Aleckson would like to see the design component pushed through to get it done. Couri stated that even improvements have limits to what they can handle when it comes to heavy, fast rainfall. Sorensen stated there are new members on the Council and it is important for the residents to come to the meetings so Council can hear their stories and comments. Hendrickson thanked the residents for coming and sharing their stories. Although, they will not resolve the issue tonight, it was important to hear what the residents had to say. Nafstad will be meeting with the City’s insurance adjuster in the near future. Sorensen stated the upcoming budgets meetings will be soon and residents can attend those meetings. Nafstad stated he will meet with Aleckson after tonight’s meeting to view the area they discussed earlier. 2). 57th Street NE and Lander Avenue NE Intersection Vetsch reported that he had a resident in the area of the 57th Street NE and Lander Avenue NE intersection that had contacted him regarding flooding in her house and he was passing on her concerns. B. City Council 1). Committee Updates (STMA Ice Arena, Planning Commission, JPWB, Joint Fire Board, and Parks Committee) Joint Powers Water Board Hendrickson stated they will stop pulling from the aquifer and will be injecting again in September. Agenda Page 7 City Council Meeting Minutes Page 5 Regular Meeting of July 1, 2013 2). Memorial Park Sign Nafstad reported that the Parks Committee requested clarification on the intent of Memorial Park. He believed the intent from Council was the park is to be treated as any other park and was not intended to be for one person. Any future requests for plaques would go through the Parks Committee. Sorensen stated the park is also intended to compliment other parks and trails in the City. Sorensen stated that the Committee would like the intent of the park placed on the back of the park sign. Council directed Nafstad to work with the Fire Chief to choose the wording for the plaque. C. City Clerk 1). Set Public Hearing Date for Kassel Avenue NE Street Vacation Motioned by Olson, seconded by Sorensen, to set a public hearing date of August 5, 2013 at 7:00 p.m. to receive comment on the proposed vacation of a portion of Kassel Avenue NE as requested by Guardian Angels. 2). City of St. Michael Bowling Challenge Clerk Olson reported they have received a letter from the City of St. Michael inviting Albertville to a bowling challenge on August 9, 2013 at 5:30 p.m. at the River Lanes Bowling Alley. They have reserved six lanes for teams up to twelve people. Council directed Clerk Olson to accept the challenge from the City of St. Michael. 3). Public Hearing Date for TIF District No. 15 for the Guardian Angels Senior Housing Project Clerk Olson reported that a resolution must be adopted setting the public hearing date for establishing TIF District No. 15 at least 30 days prior to the public hearing date. Motioned by Sorensen, seconded by Wagner, to adopt Resolution No. 2013-020 calling for a public hearing on the modification of the Development Program for Development District No. 1 and Establishment of Tax Increment Financing (Housing) District No. 15 (Guardian Angels) and Creation of a TIF Plan Therefor. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED CARRIED. D. Finance - None E. Planning and Zoning – None F. Building – None G. Legal Agenda Page 8 City Council Meeting Minutes Page 6 Regular Meeting of July 1, 2013 1). City Attorney’s Report Couri reported that he received a phone call back from Charter Communications. He stated that Charter claims the $10,000 for video recording equipment and technical assistance referenced in the franchise agreement would come from added user fees. Lannes reported two technicians looked at the wiring in City Hall to see what was needed for video recording. She stated they said it would have to be fiber. Council discussed different ways to record video and cost of equipment. Sorensen felt if they are collecting a franchise fee, it should be used to give access to residents to public information and City business. H. Administration 1). City Administrator’s Update Nafstad reported staff has been in discussion with Guardian Angels about conduit financing and Guardian Angels would be looking to both Otsego and Albertville for that financing. Couri described the conduit financing process. 9. ANNOUNCEMENTS and/or UPCOMING MEETINGS July 4 City Offices Closed, Independence Day July 8 STMA Ice Arena Board, 6:00 p.m. July 9 Planning Commission, 7:00 p.m. July 15 City Council, 7:00 p.m. Budget Workshop to Immediately Follow July 22 Joint Powers Water Board, 6:30 p.m. August 5 City Council, 7:00 p.m. August 12 STMA Ice Arena Board, 6:00 p.m. City Council Budget Workshop, 7:00 p.m. August 13 Planning Commission, 7:00 p.m. August 19 City Council, 7:00 p.m. Budget Workshop to Immediately Follow August 26 Joint Powers Water Board, 6:30 p.m. Parks Committee, 8:00 p.m. 10. ADJOURN MEETING Motioned by Olson, seconded by Sorensen, to adjourn the meeting at 9:10 p.m. Ayes: Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 9 ST. MICHAEL-ALBERTVILLE ARENA BOARD MINUTES June 10, 2013 6:00 p.m. Present: Chairman Jeff Lindquist and Members, Gayle Weber, Dan Wagner, Chris Schumm, Nadine Schoen (for Kevin Kasel) and Larry Sorensen were present. Also present: City Administrator/PWD Adam Nafstad, City Finance Director Tina Lannes, Arena Manager Grant Fitch and Youth Hockey Association Representatives, Kurt Sjelin, Adam Smiglewski and Mike Marhula. The meeting was called to order at 6:05 p.m. by Chairman Lindquist. Set Agenda Members Schumm/Schoen moved to set the agenda as presented. All voted aye. Approval of Minutes Members Weber/Schumm moved to approve the minutes of the May 13, 2013 Board Meeting. All voted aye. Finance Reports Members Sorensen/Schumm moved to approve the May 2013 list of claims in the amount of $17,022.47 and the May Financial Report as presented. All voted aye. Arena Manager’s Report Fitch updated the Board roof is still an issue. The staff was able to put the ice in but there are about 80 yellow spots. With the dripping it takes an extra hour each morning to prepare the ice for rental as there are two inch bumps in the ice. Fitch and Nafstad have been working with 292 Group on a fix. Nafstad mentioned that the minutes reflect a motion made in May for not to exceed a cost of $6,000, but is requesting a new motion to approve professional services to not to exceed $6,800. Chairman Lindquist stated that leaking is not due to the new roof leaking it is a ventilation problem. Schumm asked if there is any way to go back to the insurance to cover the issue. Nafstad stated that there is no known recourse for insurance claim on the roof replacement. Nafstad told the board that there is no weight limits stamped on the metal girders at the arena so we are not sure at this time about structural bearing loads of the arena. 292 group should present their findings and recommendations to the STMA Arena Board at the August. Members Schumm/Sorensen moved to increase the initial authority to move forward with the professional services on the roof structural analysis not to exceed $6,800 for roof design, amending the previous motion made on May 13, 2013. All voted aye. Fitch mentioned air quality requirements have changed so they will need to test it 3 times a week instead of once a week and he plans on training other staff to do the testing. Old Business Lannes presented the proposed 2013 budgets which include a $5 per hour increase with the only difference being hiring an assistant arena manager or not hiring an assistant arena manager. Chairman Lindquist verified that with both proposed budgets that the arena is showing a net operating loss due to depreciation. Wagner asked what percentage of deprecation we are funding and Lannes stated it was about 50%. The board discussed the concerns on needed an assistant manager, but without a significant rate increase it currently is not feasible. Sorensen stated the board would still like to see any options to provide an assistant arena manager such as a shared staff person with the arena and City or School. Members Weber/Schumm moved to adopt the 2013 budget with a $5 increase effective September 1, 2013 and no assistant arena manager. All voted aye. Agenda Page 10 STMA Ice Arena June 10, 2013 Minutes Page 2 Lannes updated the board on the need to send a letter of formal notice to Franklin Outdoor Advertising if the Arena is going to cancel the contract as of August 2, 2013. The board, staff and youth hockey discussed the process that needs to take place for youth hockey to take over the advertising. Smiglewski suggested that before the letter of termination by July 1st that we have a contract with youth hockey. Youth hockey really appreciates the openness of the Arena Board being willing to let them take over the advertising. The board believes they the association has strong leadership and will be successful in taking over the advertising and fulfilling their obligation to the STMA Arena. Members Weber/Sorensen moved to have city staff give notice of termination of contract to Franklin Outdoor advertising and to work with youth hockey on a new advertising contract. All voted aye. Youth Hockey Association Sjelin brought up to the STMA Arena Board youth hockey’s interest on exploring an option for an outdoor ice sheet for exclusive use, first, to youth hockey association. The sheet would be located next to the current ice on the land that is owned by the school. Youth hockey would maintain the ice; purchase all assets for the sheet, artificial ice, a warming house structure, lights, etc. The board, staff and youth hockey discussed how it would function, liability issues and how the plan would need to go to Albertville Planning Commission and City Council. Weber asked if youth hockey could provide the STMA Arena Board with a certificate of liability insurance. Sjelin said yes they could as each child signs up they are covered under the liability insurance the youth hockey association has. Weber asked about people who are not signed up as a youth hockey member. Lannes mentioned that would fall under the schools liability policy. Chairman Lindquist mentioned we need to look at those issues and explore the possibility. Nafstad will work with Dr. Behle on the insurance issues and the staff needs to identify any other issues. Sjelin will assemble a group to explore what needs to be done to proceed. Board gives direction to staff to work with youth hockey on the possibility of an outdoor ice rink. Smiglewski added that on behalf of youth hockey they staff at the rink does a great job on maintaining the mounds of ice from the roof dripping to make it as safe as possible, but over the course of a game the buildup occurs that can be felt by the skater. The mounds go close to the boards and that someone at a decent rate of speed could get hurt as they build up. Chairman Lindquist stated they understand and that Fitch and Nafstad have been working on it with safety being first. Adjourn Members Schumm/Schoen moved to adjourn at 7:28 p.m. All voted aye. Attest: __________________________________ Tina Lannes, City Finance Director Agenda Page 11 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet information\2013\071513\071513 Finance Bills Report (RCA).doc Meeting Date: July 15, 2013 July10, 2013 SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, July 15, 2013 payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: • Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person//: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) Agenda Page 12 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet information\2013\071513\071513 Conduit debt issuance RCA 7-15-13.docx Meeting Date: July 15, 2013 July 11, 2013 SUBJECT: CONSENT – LEGAL – CONDUIT BOND FINANCING POLICY RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve the attached Terms and Conditions for Issuance of Conduit Debt policy. BACKGROUND: On several occasions in the past, the City has been asked to issue bonds in its name on behalf of a private, non-profit organization, usually related to various housing projects. These bonds do not become obligations of the City of Albertville, but because they are issued by the City, they can be issued as tax exempt bonds which carry a lower interest rate and reduce the interest expense to the non-profit organization. These bonds count toward the City’s annual $10 million tax-exempt bond issuance limit. If the City were to issue bonds in excess of the $10 million dollar limit, only the first $10 million would be tax exempt and the remainder would issue at a higher, taxable interest rate. In the recent past, the City has been charging one-quarter of one percent of the bond amount as a fee to issue the bonds. The proposed policy formalizes that charge, and clarifies that the requesting organization will be responsible for paying all of the City’s costs in issuing the bonds, including the City’s bond counsel costs, which will be paid from the one-quarter percent fee the City will charge. It also requires the organization to pay any additional interest costs the City may incur in the event it actually reached the $10 million bond limit and had to issue additional bonds for some unforeseen reason. KEY ISSUES: • The proposed policy formalizes the City’s current charge of one-quarter percent of the amount of any bonds issued on behalf of a non-profit organization. • It also requires the requestor to pay all of the City’s costs related to the bond issuance, including any additional interest costs the City may incur. • The City retains the discretion to decide whether to issue bonds for any particular organization. • The City is not liable for the repayment of conduit bonds issued on behalf of a non-profit organization. POLICY/PRACTICES CONSIDERATIONS: This policy does not require the City to issue bonds, but leaves that decision to the City Council’s discretion. FINANCIAL CONSIDERATIONS: City staff expects this policy to have a positive effect on the City’s finances. The one-quarter percent fee the City collects will range from a minimum of $5,000 to a maximum of $25,000. The City’s issuance-related costs will be paid from this Agenda Page 13 Mayor and Council Request for Action – July 15, 2013 Conduit Bond Financing Policy Page 2 of 2 M:\Public Data\City Council\Council Packet information\2013\071513\071513 Conduit debt issuance RCA 7-15-13.docx Meeting Date: July 15, 2013 amount, with any leftover money from the fee going to the City’s general fund. There is the possibility that the City will incur more interest expense than it otherwise would if the City reaches its annual $10 million tax exempt bond issuance limit and then has an emergency that it must issue bonds for. However, Staff believes that this is very unlikely to occur. In the event it does occur, the conduit bond documents would require the non-profit organization on whose behalf the City issued the conduit bonds to reimburse the City for the additional interest cost incurred by the City. LEGAL CONSIDERATIONS: The City is authorized to issue conduit bonds and to charge a fee to do so. Department/Responsible Person: Mike Couri, City Attorney Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Terms and Conditions for Issuance of Conduit Debt Agenda Page 14 1 City of Albertville, Minnesota Terms and Conditions for the Issuance of Conduit Debt Municipalities may be asked by not-for-profit agencies and other entities to issue pass- through, conduit debt. These issues are not projects of the governmental unit, but of a separate corporation. In order to expedite the assistance that City of Albertville can offer and to avoid a resource drain on the City, the City of Albertville requires the following: The entity/applicant desiring assistance must first request that the Finance Director of the City review its proposal and provide the information and deposit the fee detailed below. After the Finance Director reviews the proposal, the applicant may then request that the City Council consider its proposal and grant permission to move forward to the public hearing stage. The applicant must provide to the Finance Director documentation about the entity requesting the assistance, the project, and the proposed financing method. The City also requires that the applicant assume all of the costs incurred by the City in examining the legal and fiscal aspects of the project as well as ongoing monitoring and reporting of outstanding bonds once issued. The applicant must make a deposit of one fourth of one percent (1/4%) of the proposed issuance amount with a minimum deposit of $5,000 and a maximum deposit of $25,000. These funds will be applied against the costs incurred by the City for staff time, and other expenses caused by the proposal. If the application is denied, the deposit amount in excess of these costs will be refunded to the applicant. If the application is approved, the full deposit will be retained by the City to cover future monitoring, and no portion of the deposit shall be returned to the applicant. In addition, the applicant must pay the City’s bond counsel and/or issuer’s counsel fees upon issuance and closing of the bonds. In addition, the applicant agrees to reimburse the City for the estimated difference in interest costs (between tax exempt and non-tax exempt bonds) and other additional issuance costs incurred by the City in the event the City issues bonds in the same year the applicant’s bonds are issued and the City’s bonds are designated as non-bank qualified bonds because the City has issued the maximum amount of tax exempt, bank qualified bonds allowed under Federal Law. The applicant should be prepared to demonstrate to the City how the proposed project will benefit the community. The applicant may request to be placed on the Council’s agenda by contacting the City of Albertville City Clerk at (763) 497-3384, submitting a letter outlining the request, and appearing before the City Council when the request is heard. If permission is granted by the City, the bond attorney for the issuer must: Provide to the City Council a written statement indicating that the documents have been appropriately prepared, all concerns of the City and points covered by this document Agenda Page 15 2 have been addressed, and it is acceptable for the Council to adopt the needed resolutions. No documents will be adopted by the Council or signed by Council members or staff without the attorney’s statement. Prepare a contract obligating the applicant requesting the debt issuance to repay to the City any interest margin for bank qualified bonds that the applicant uses and the City later needed on debt it issues for its own purposes. Assure that the Official Statement prominently displays in large, bold type that City of Albertville does not have any obligation to repay the debt and what the rating of the bond issue is. When the issue is complete and closed, provide two copies of the transcript and amortization schedules of the issue to the City’s Finance Director on a timely basis. The debt instrument issued must not place the City at risk in any way, financially or legally, in appearance or in fact. The Federal Government has also placed the burden of weighing the balance of “public purpose versus private benefit” upon the City Council for these conduit debt issues. The Council will consider risk, the public versus private benefit balance, and the recommendation of its staff. Because of the subjective nature of the issues it must weigh, the Council retains the right to refuse to authorize any issue at its sole discretion and without need to give cause. The applicant must indemnify the City against all future costs arising from the bond issue requested by the applicant, including but not limited to law suits, findings that the issue was not tax-exempt, non- bank qualification impacts or penalties of any kind. The documents must clearly reflect the indemnification of the City. The City will not be responsible for any continuing disclosure or arbitrage calculations or rebate and the documents must clearly reflect that the obligor is responsible for these matters. The applicant requesting the conduit debt and their advisors must arrange for the logistics of all document movement, timing, signature, publication, etc. It is very important to assure that the necessary individuals will be available for signatures on documents well in advance of needing the signatures. Signatures will be supplied at the convenience of the City. City Administration\City Clerk places items on the Council agenda and obtains signed documents from the Council. The contact in that office is Kimberly Olson. It is the responsibility of the requesting applicant to: o Inquire as to when Council meetings are scheduled (and to check again as necessary because meeting dates change without notice). o Inquire as to when documents must be delivered in order to be accepted for the agenda. Agenda Page 16 3 o Arrange for copies which need to be signed and to provide the necessary envelopes and postage or other arrangements to move the documents when signed. The documents are signed after the meeting at a time convenient to the Mayor, typically within a week after the meeting. o Arrange to move (envelopes/postage) any notices requiring publication to the appropriate newspaper, pay for the publication, and obtain any signed affidavits necessary (The City’s Official Newspaper is the North Crow River News). o Attend all necessary Council meetings to answer questions the Council may have about the issue while the documents are being considered. o Arrange to have any other necessary documents delivered for signature by other City officials such as the City Attorney and the Finance Director and after signature have appropriate self addressed and stamped envelopes available for return. The officials should be notified in advance, by telephone, that documents are being sent for signature. o Arrange for all IRS and Federal and State filings and fees. o Arrange to have all necessary professional fees paid directly to the professionals who did the work either out of bond proceeds or make other acceptable payment arrangements with the professionals doing the work or with the City. REVIEWED WITH ADDITIONAL MATERIALS SUBMITTED:__________________ City Administrator Agenda Page 17 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2013-021 RESOLUTION AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT WITH THE CITY OF OTSEGO AND APPROVING A JOINT PUBLIC HEARING (EVANS PARK, INC. PROJECT) WHEREAS, at the request of Evans Park, Inc., a Minnesota nonprofit corporation (the “Borrower”), a Housing Program (the “Program”) has been prepared pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Act”), on behalf of the City of Otsego (the “Issuer”), with respect to a combination senior housing and health care development to be located at 5101 Kassel Avenue, N.E. in Albertville, Minnesota (the “Development” or the “Project”); and WHEREAS, under the Program, the Borrower has proposed that the Issuer, on behalf of itself and the City of Albertville (the “City”) issue its tax exempt revenue bonds, in one or more series, in an aggregate principal amount of up to $10,000,000 (the “Bonds”), to provide financing for the Development, pursuant to the Act; and WHEREAS, pursuant to Section 462C.14 of the Act, the City (sometimes referred to as the “Joint Powers Participant”) and the Issuer are authorized to enter into a joint powers agreement, in accordance with Minnesota Statutes, Section 471.59 (the “Joint Powers Act”), under which the Issuer issues the Bonds to provide financing for the Development (the Act and the Joint Powers Act sometimes together referred to as the “Acts”); and WHEREAS, a copy of the proposed form of such joint powers agreement (the “Joint Powers Agreement”) has been presented to the City Council in connection with its consideration of this Resolution and has been placed on file in the offices of the City Administrator; and WHEREAS, section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations thereunder, require that the Issuer, together with each other governmental unit in which facilities to be financed by the Bonds are located, hold a public hearing with respect to the issuance of the Bonds, and further authorizes a joint public hearing to be held on behalf of both the Issuer and such other governmental units upon compliance with the requirements thereof; and WHEREAS, the City proposes that a joint public hearing be called and held with respect to the issuance of the Bonds, on behalf of itself and the Issuer, and wishes to authorize the Issuer to publish notice thereof and to hold such hearing on behalf of the Issuer and the City; and WHEREAS, the Bonds will be payable solely from the sources pledged to the payment thereof, consisting solely of amounts to be made available by the Borrower, and the Bonds will Agenda Page 18 City of Albertville Resolution No. 2013- July 15, 2013 Page 2 not be a general or moral obligation of the City or of the Issuer or of any other political subdivision of the State of Minnesota, all to the extent and in the manner provided in the Acts. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Albertville, Minnesota (the “City”), as follows: 1. The City hereby authorizes the Issuer to call and hold a joint public hearing with respect to the issuance of the Bonds, on behalf of the City and the Issuer, all in accordance with the requirements of section 147(f) of the Code and regulations thereunder. 2. The issuance of the Bonds will be subject, among other things, to the condition that, following the joint public hearing, the City, through action of the City Council or otherwise in accordance with the requirements of section 147(f) of the Code, provide its “host” approval with respect thereto. 3. In no event shall the Bonds ever be payable from or charged upon any funds of the City; the City is not subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Bonds do not constitute an indebtedness of the City within the meaning of any constitutional, statutory, or charter limitation. 4. The Joint Powers Agreement is hereby approved in substantially the form now on file in the offices of the City, together with such modifications thereto as may be approved by the officers executing the Joint Powers Agreement, which approval shall be conclusively evidenced by the execution thereof; and the Mayor and City Administrator or other officers of the City are authorized to execute the same in the name of and on behalf of the City. In the event of the disability or the resignation or other absence of the Mayor or City Administrator of the City, such other officers of the City who may act in their behalf shall without further act or authorization of the City do all things and execute all instruments and documents required to be done or to be executed by such absent or disabled officials. The approval hereby given to the Joint Powers Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the officers of the City authorized herein to execute the Joint Powers Agreement, such approval to be conclusively evidenced by the execution thereof. Agenda Page 19 City of Albertville Resolution No. 2013- July 15, 2013 Page 3 Adopted by the City Council of the City of Albertville, Minnesota this 15th day of July, 2013. ______________________________ Jillian Hendrickson, Mayor ATTEST: ______________________________________ Kimberly A. Olson, City Clerk Agenda Page 20 CERTIFICATE CITY OF ALBERTVILLE I, the undersigned being a duly qualified and acting officer of the City of Albertville, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolution was transcribed. 2. I have carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. 3. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT WITH THE CITY OF OTSEGO AND APPROVING A JOINT PUBLIC HEARING (EVANS PARK, INC. PROJECT) 4. I further certify that the affirmative vote on said resolution was ________ ayes, ________ nays, and _________ absent/abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such officer this 15th day of July, 2013. Kimberly A. Olson, City Clerk Agenda Page 21 DRAFT: 07/10/13 JOINT POWERS AGREEMENT This JOINT POWERS AGREEMENT (this “Agreement”) is entered into as of the 1st day of August, 2013 (the “Joint Powers Agreement” or the “Agreement”), by and between the City of Otsego, Minnesota (the “Issuer”), and the City of Albertville, Minnesota (the “Participating Jurisdiction”). Each of the Issuer and the Participating Jurisdiction is a municipal corporation duly organized under the laws of the State of Minnesota. 1. Minnesota Statutes, Section 471.59 (the “Joint Powers Act”) provides that two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units. 2. Minnesota Statutes, Chapter 462C, as amended (the “Housing Programs Act”), authorizes cities to issue revenue bonds to finance multifamily housing developments, including combined facility developments described in Section 462C.05, subdivision 7, of the Act, all in accordance with a housing program developed therefor pursuant to the Act. Section 462C.14 of the Act authorizes a city to provide housing program and development financial services outside of its corporate boundaries when authorized to do so under a joint powers agreement that authorizes such city to provide the services within the boundaries of another city. 3. The Issuer has developed a housing program pursuant to the Act under which it proposes to issue revenue bonds to provide financing for a combined facility, as described in Section 462C.05, subdivision 7, located in the City of Albertville (the “Project” or the “Development”), as further described in Exhibit A hereto. The Project will be undertaken by Evans Park, Inc., a Minnesota nonprofit corporation (the “Borrower”). 4. The Issuer and the Participating Jurisdiction are entering into this Agreement, pursuant to the Joint Powers Act and the Housing Programs Act (referred to together as the “Acts”), to authorize the Issuer to issue one or more series of revenue bonds, in an aggregate principal amount not to exceed $10,000,000 (the “Bonds”), and to loan the proceeds thereof to the Borrower to provide financing for the acquisition, construction and equipping of the Development, as more specifically described in Exhibit A, and all in accordance with Section 462C.14 of the Housing Programs Act. 5. The governing bodies of the Issuer and the Participating Jurisdiction have each adopted or will each adopt a resolution (i) evidencing its intent to enter into this Agreement, (ii) authorizing a joint public hearing to be held with respect to the issuance of the Bonds ,on behalf of both the Issuer and the Participating Jurisdiction, by the governing body of the Issuer, and all in accordance with the provisions of section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations thereunder; and (iii) granting approval to the issuance by the Issuer of the Bonds, all as required under the Acts and the applicable provisions of section 147(f) of the Code. 6. The Issuer shall exercise the powers conferred under the Acts by adopting, approving and executing such resolutions, documents, and agreements as shall be necessary or Agenda Page 22 2 convenient to authorize, issue, and sell the Bonds and such other resolutions, documents, and agreements as shall be necessary or required in connection with the issuance of the Bonds and giving effect to or carrying out the provisions of this Agreement and documents under which the Bonds are issued and/or secured. The Issuer and the Participating Jurisdiction hereby specifically agree that, upon request of the Borrower, the Issuer or the Participating Jurisdiction may at any time during the term hereof issue its refunding revenue bonds for the purpose of refunding the Bonds. In such event this Agreement shall continue to apply to such refunding revenue bonds and such refunding revenue bonds shall be governed hereby, all without further act by either the Issuer or the Participating Jurisdiction. 7. The Bonds shall be special, limited obligations of the Issuer, payable solely from proceeds, revenues and other amounts pledged thereto. In no event shall the Bonds ever be payable from or charged upon the general credit, taxing powers or any funds of either of the Issuer or the Participating Jurisdiction; neither the Issuer nor the Participating Jurisdiction shall ever be subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of either of the Issuer or the Participating Jurisdiction to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of either of the Issuer or the Participating Jurisdiction; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of either the Issuer or the Participating Jurisdiction; and the Bonds do not constitute an indebtedness of the Issuer or the Participating Jurisdiction within the meaning of any constitutional, statutory, or charter limitation. No amount of the Bonds will be allocated to the Participating Jurisdiction for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. 8. This Agreement shall terminate upon the retirement or defeasance of the last outstanding Bonds or, if refunding revenue bonds are issued in accordance with the provisions hereof and the provisions of the Acts, upon the retirement or defeasance of the last outstanding refunding revenue bonds, and this Agreement may not be terminated in advance of such retirement or defeasance. 9. Any property acquired by the Issuer as a result of the Bonds, this Agreement, or the Indenture or the Loan Agreement entered into in connection with the Bonds shall be and remain the property of the Issuer, to be disposed of pursuant to the applicable terms of the Loan Agreement and the Indenture. Any surplus moneys remaining after the purpose of this Agreement has been completed, unless otherwise provided for in the Indenture or Loan Agreement shall belong ratably to the Issuer, the Participating Jurisdiction, or the Borrower, as their respective interests may appear. 10. All costs incurred by the Issuer and the Participating Jurisdiction in the authorization, execution, delivery and performance of this Agreement, and providing approval of the Project and host approval for the issuance of the Bonds, shall be paid by the Borrower. 11. This Agreement may be executed in counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. Agenda Page 23 3 IN WITNESS WHEREOF, each of the Issuer and the Participating Jurisdiction has caused this Agreement to be executed on its behalf by its duly authorized officers, all as of the day and year first above written. CITY OF OTSEGO, MINNESOTA as Issuer By: _______________________________ Its: Mayor By: _______________________________ Its: City Administrator [Signature page to Joint Powers Agreement dated as of August 1, 2013, between the City of Otsego and the City of Albertville] Agenda Page 24 4 CITY OF ALBERTVILLE, MINNESOTA By: ___________________________ Its: Mayor By: ___________________________ Its: City Clerk [Signature page to Joint Powers Agreement dated as of August 1, 2013, between the City of Otsego and the City of Albertville] Agenda Page 25 A-1 EXHIBIT A (Description of Development) The Development will consist of the acquisition, construction and equipping of a combination senior housing and health care facility that will include approximately 60 units of independent and assisted living for seniors, including certain units dedicated to memory care, and will be located at 5101 Kassel Avenue N.E. in the City of Albertville, Minnesota. The Development will be owned and operated by Evans Park, Inc., a Minnesota nonprofit corporation (the “Borrower”). Agenda Page 26 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2013-022 RESOLUTION AUTHORIZING JOINT POWERS AGREEMENT WITH THE CITY OF ELK RIVER AND GIVING PRELIMINARY APPROVAL TO THEISSUANCE BY THE CITY OF ALBERTVILLE OF REFUNDING REVENUE BONDS (EVANS PARK, INC. PROJECT) BE IT RESOLVED by the City Council of the City of Albertville (the “City” or the “Issuer”), as follows: Section 1. Recitals and Findings. 1.1. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Act”), the City of Elk River, Minnesota (sometimes referred to as the “Participating Jurisdiction”), at the request of Evans Park, Inc., a Minnesota nonprofit corporation (the “Borrower”), issued its Pooled Revenue Bonds (CareChoice Member Projects), Series 1998 (the “Series 1998 Bonds”), and loaned a portion of the proceeds of the Series 1998 Bonds to the Borrower to provide financing for a senior housing development constructed in the City of Elk River. 1.2. The Borrower has requested that the City and the Participating Jurisdiction enter into a Joint Powers Agreement, in accordance with Minnesota Statutes, Section 471.59, and Section 462C.14 of the Act, under which the City would issue its refunding revenue bonds (Evans Park, Inc. Project), in one or more series, and in aggregate principal amount not to exceed $5,500,000 (the “Bonds”), to provide for the refunding in full of the Series 1998 Bonds. The proceeds of the Bonds shall be loaned to the Borrower, and the Borrower shall be required to make loan repayments in connection therewith sufficient to provide for payment in full of all principal of, interest and premium, if any, owing on the Bonds. 1.3. In connection with the issuance of the Bonds, the City will enter into a Joint Powers Agreement (the “Joint Powers Agreement”) with the City of Elk River (the “Participating Jurisdiction”), all as contemplated by Sections 462C.14 of the Act. A copy of the proposed form of the Joint Powers Agreement has been presented to the City Council in connection with its consideration of this Resolution and is currently on file in the offices of the City Administrator. Section 2. Approvals and Authorizations. 2.1. The Joint Powers Agreement, in the form currently on file in the office of the City Administrator, is hereby approved and the Mayor and the City Administrator, and any one or more other officers of the City, are hereby authorized and directed to execute and deliver the Joint Powers Agreement in such form, together with such modifications thereto as the officer or officers executing and delivering the same shall approve, such execution and delivery to constitute conclusive evidence of such approval. 2.2. Preliminary approval is hereby given to the issuance of the Bonds, in an aggregate principal amount not to exceed $5,500,000; provided, however, that the details of the Bonds, the provisions for the payment thereof, and the forms of the legal documents to be Agenda Page 27 City of Albertville Resolution No. 2013- July 15, 2013 Page 2 entered into by the City in connection therewith shall be subject to final approval by theCity Council prior to their issuance. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues to be received from the Borrower specifically pledged to the payment thereof, and each Bond, when, as and if issued, shall recite in substance that such Bond, including interest thereon, is payable solely from said revenues and funds specifically pledged to the payment thereof, and shall not constitute a debt or pecuniary liability of the City within the meaning of any constitutional or statutory limitation. 2.3. Pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), the City hereby designates the Bonds as “qualified tax-exempt obligations,” within the meaning of Section 265(b)(3). The Bonds are to be issued on behalf of an organization described in Section 501(c)(3) of the Code and are to be issued as “qualified 501(c)(3) bonds” under Section 145 of the Code. The City, together with all subordinate entities thereof, does not reasonably expect to issue tax-exempt obligations, including the Bonds (other than private activity bonds not constituting “qualified 501(c)(3) bonds”) which, when added together with all such obligations heretofore issued by the City in calendar year 2013, will be in an aggregate amount exceeding $10,000,000 in the current calendar year. Adopted by the City Council of the City of Albertville, Minnesota this 15th day of July, 2013. _________________________________ Jillian Hendrickson, Mayor Attest: __________________________________ Kimberly A. Olson, City Clerk Agenda Page 28 CERTIFICATE CITY OF ALBERTVILLE I, the undersigned being a duly qualified and acting officer of the City of Albertville, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolution was transcribed. 2. I have carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. 3. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION AUTHORIZING JOINT POWERS AGREEMENT WITH THE CITY OF ELK RIVER AND GIVING PRELIMINARY APPROVAL TO THEISSUANCE BY THE CITY OF ALBERTVILLE OF REFUNDING REVENUE BONDS (EVANS PARK, INC. PROJECT) 4. I further certify that the affirmative vote on said resolution was ________ ayes, ________ nays, and _________ absent/abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such officer this 15th day of July, 2013. Kimberly A. Olson, City Clerk Agenda Page 29 DRAFT: 07/10/13 JOINT POWERS AGREEMENT This JOINT POWERS AGREEMENT (this “Agreement”) is entered into as of the 1st day of August, 2013 (the “Joint Powers Agreement” or the “Agreement”), by and between the City of Albertville, Minnesota (the “Issuer”), and the City of Elk River, Minnesota (the “Participating Jurisdiction”). Each of the Issuer and the Participating Jurisdiction is a municipal corporation duly organized under the laws of the State of Minnesota. 1. Minnesota Statutes, Section 471.59 (the “Joint Powers Act”) provides that two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units. 2. Minnesota Statutes, Chapter 462C, as amended (the “Housing Programs Act”), authorizes cities to issue revenue bonds to finance multifamily housing developments, in each case in accordance with a housing program developed therefor pursuant to the Act, and to issue refunding revenue bonds to provide refinancing for such developments. Section 462C.14 of the Act authorizes a city to provide housing program and development financial services outside of its corporate boundaries when authorized to do so under a joint powers agreement that authorizes such city to provide the services within the boundaries of another city. 3. Pursuant to a housing program developed under the Act, the Participating Jurisdiction issued its Pooled Revenue Bonds (CareChoice Member Projects), Series 1998 (the “Series 1998 Bonds”), to provide financing for a multifamily rental housing facility for elderly residents in the City of Elk River (the “Project” or the “Development”). The Project is owned and operated by Evans Park, Inc., a Minnesota nonprofit corporation (the “Borrower”). The Borrower has requested the Issuer to issue its refunding revenue bonds to provide refinancing for the Development. 4. The Issuer and the Participating Jurisdiction are entering into this Agreement, pursuant to the Joint Powers Act and the Housing Programs Act (referred to together as the “Acts”), to authorize the Issuer to issue one or more series of refunding revenue bonds, in an aggregate principal amount not to exceed $5,500,000 (the “Bonds”), and to loan the proceeds thereof to the Borrower, to provide for the refunding in full of the Series 1998 Bonds and thereby provide refinancing for the Development, all in accordance with Section 462C.14 of the Housing Programs Act. 5. The governing bodies of the Issuer and the Participating Jurisdiction have each adopted or will each adopt a resolution (i) evidencing its intent to enter into this Agreement; and (ii) granting approval to the issuance by the Issuer of the Bonds, all as and to the extent required by the Acts. 6. The Issuer shall exercise the powers conferred under the Acts by adopting, approving and executing such resolutions, documents, and agreements as shall be necessary or convenient to authorize, issue, and sell the Bonds and such other resolutions, documents, and agreements as shall be necessary or required in connection with the issuance of the Bonds and Agenda Page 30 2 giving effect to or carrying out the provisions of this Agreement and documents under which the Bonds are issued and/or secured. The Issuer and the Participating Jurisdiction hereby specifically agree that, upon request of the Borrower, the Issuer or the Participating Jurisdiction may at any time during the term hereof issue its refunding revenue bonds for the purpose of refunding the Bonds. In such event this Agreement shall continue to apply to such refunding revenue bonds and such refunding revenue bonds shall be governed hereby, all without further act by either the Issuer or the Participating Jurisdiction. 7. The Bonds shall be special, limited obligations of the Issuer, payable solely from proceeds, revenues and other amounts pledged thereto. In no event shall the Bonds ever be payable from or charged upon the general credit, taxing powers or any funds of either the Issuer or the Participating Jurisdiction; neither the Issuer nor the Participating Jurisdiction shall ever be subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of either of the Issuer or the Participating Jurisdiction to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of either of the Issuer or the Participating Jurisdiction; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of either the Issuer or the Participating Jurisdiction; and the Bonds do not constitute an indebtedness of the Issuer or the Participating Jurisdiction within the meaning of any constitutional, statutory, or charter limitation. No amount of the Bonds will be allocated to the Participating Jurisdiction for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. 8. This Agreement shall terminate upon the retirement or defeasance of the last outstanding Bonds or, if refunding revenue bonds are issued in accordance with the provisions hereof and the provisions of the Acts, upon the retirement or defeasance of the last outstanding refunding revenue bonds, and this Agreement may not be terminated in advance of such retirement or defeasance. 9. Any property acquired by the Issuer as a result of the Bonds, this Agreement, or the Indenture or the Loan Agreement entered into in connection with the Bonds shall be and remain the property of the Issuer, to be disposed of pursuant to the applicable terms of the Loan Agreement and the Indenture. Any surplus moneys remaining after the purpose of this Agreement has been completed, unless otherwise provided for in the Indenture or Loan Agreement shall belong ratably to the Issuer, the Participating Jurisdiction, or the Borrower, as their respective interests may appear. 10. All costs incurred by the Issuer and the Participating Jurisdiction in the authorization, execution, delivery and performance of this Agreement, and providing approval of the Project and host approval for the issuance of the Bonds, shall be paid by the Borrower. 11. This Agreement may be executed in counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. [The balance of this page is intentionally left blank] Agenda Page 31 3 IN WITNESS WHEREOF, each of the Issuer and the Participating Jurisdiction has caused this Agreement to be executed on its behalf by its duly authorized officers, all as of the day and year first above written. CITY OF ALBERTVILLE, MINNESOTA, as Issuer By: _______________________________ Its: Mayor By: _______________________________ Its: City Clerk [Signature page to Joint Powers Agreement dated as of August 1, 2013, between the City of Albertville and the City of Elk River] Agenda Page 32 4 CITY OF ELK RIVER, MINNESOTA By: ___________________________ Its: Mayor By: ___________________________ Its: City Administrator [Signature page to Joint Powers Agreement dated as of August 1, 2013, between the City of Albertville and the City of Elk River] 4821-5586-6388\2 Agenda Page 33 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet information\2013\071513\071513 RCA Outdoor Music event.docx Meeting Date: July 15, 2013 July 11, 2013 SUBJECT: CONSENT - PLANNING --SHOPPES OF TOWNE LAKES BLOCK PARTY RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: Approval of the attached Major Outdoor Music Event Permit for Infit/Anytime Fitness for a block party at the Shoppes of Towne Lakes for August 21, 2013. MOTION TO: Approve the Major Outdoor Music Event Permit for Infit/Anytime Fitness for August 21, 2013 for the hours of 4:30 p.m. to 8:00 p.m. at 6589 Laketowne Place in Albertville, Minnesota. BACKGROUND: In 2012, Infit / Anytime Fitness received approval for an outdoor music event permit to conduct the Shoppes of Towne Lakes Block Party. This event was held to bring attention to the business located at the Shoppes of Towne Lakes. The success of the event has spurred interest in making this an annual event. KEY ISSUES: • The Stage cannot meet the 300-foot setback from the nearest home. This lack of setback is mitigated by the orientation of the stage and speakers to the west away from the residential neighborhood. Also, the event ends at 8:00 p.m. to reduce evening disturbances. • Not all businesses have participated in the block party in the past. The applicant must preserve parking area for these businesses during the event. • The block party will occupy the parking lot in front of Anytime Fitness and will use adjoining parking lots for overflow event parking. They must provide signage to identify the lots available for overflow parking. • Last year’s event was successful and occurred without complaint. POLICY/PRACTICES CONSIDERATIONS: By ordinance the City Council must review and approve Major Outdoor Music Event Permits. Responsible Person/Department: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Application form and event narrative 2012 Planning Memorandum 2013 Major outdoor music event permit Agenda Page 34 Agenda Page 35 Agenda Page 36 Agenda Page 37 Agenda Page 38 Agenda Page 39 Agenda Page 40 Agenda Page 41 Agenda Page 42 Agenda Page 43 Agenda Page 44 Agenda Page 45 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA MAJOR OUTDOOR MUSIC EVENT PERMIT NO. ____________ The City of Albertville issues a Major Outdoor Music Event to Infit/Anytime Fitness of Albertville located at 6589 Laketowne Place NE, Albertville, Minnesota, for August 21, 2013, provided the following conditions are met and satisfied: 1. This permit shall allow a Major Outdoor Music event on August 21, 2014 to be held at Shoppes at Towne Lakes at 6589 Laketowne PlaceNE between the hours of 4:30 p.m. and 8:00 p.m. No outdoor performances shall be allowed beyond these permitted hours. 2. All stages, speakers, and amplifiers shall be arranged in a design and manner that does not broadcast music at or toward a residence within 300 feet of the stage. 3. The permit holder agrees to manage the outdoor performances to control volume and nuisance complaints. The volume of the outdoor performances shall be reasonable so as not to be audible at the shared property line with a residentially zoned property. Permit holder shall comply with all request of the Sheriff’s department to turn down the volume to mitigate nuisance complaints. 4. The permit holder understands that they are responsible for the behavior and operation of the outdoor music events including employees, band members and event participants. Poor or unlawful behavior on the property associated with the outdoor music event, that disturbs or damages adjoining property may be grounds for denial of future permits. 5. The permit holder understands that failure to abide by the conditions and standards of this permit or section 5-5-3 of the Albertville City Code may be grounds for denial of future permits. 6. The applicant must reserve parking stalls for area businesses not participating in the event. 7. The applicant shall provide temporary signs that will direct participants to alternative parking locations. _________________________Date:_______ ________________________Date:______ Adam Nafstad, Albertville City Administrator Permit holder: Agenda Page 46 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet information\2013\071513\071513 Federated co-ops RCA.docx Meeting Date: July 15, 2013 July 11, 2013 SUBJECT: PLANNING - FEDERATED CO-OPS INC. PROPERTY - PRELIMINARY/FINAL PLAN, ZONING MAP AMENDMENT (FROM B-3, HIGHWAY COMMERCIAL TO PUD, PLANNED UNIT DEVELOPMENT), AND SITE AND BUILDING PLANS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motions: MOTION TO: Adopt Resolution Number 2013-023 entitled a Resolution approving a preliminary/final plat entitled Federated Co-ops Addition, relating to the Federated Co-ops Inc. property located at 11229 60th Avenue in the City of Albertville. MOTION TO: Adopt Ordinance Number 2013-005 entitled an Ordinance amending the official Zoning Map of the City of Albertville, relating to the Federated Co-ops Inc. property located at 11229 60th Avenue NE in the City of Albertville. MOTION TO: Approve Resolution Number 2013-024 entitled a Resolution approving site and building plans for Federated Co-ops Inc. located at 11229 60th Avenue NE in the City of Albertville. BACKGROUND: The Planning Commission met and held a public hearing on July 9, 2013, to consider preliminary/final plat, rezoning and site/building plan requests of Federated Co-ops, Inc. The subject site is currently described via a lengthy legal description. Approval of the preliminary/final plat will “simplify” the property’s legal description and allow the establishment of perimeter drainage and utility easements upon the property. The site is currently zoned B-3, Highway Commercial District. The rezoning of the site to PUD, Planned Unit Development District is necessary to enable the City to define allowed uses upon the subject property. Approval of site and building plans is necessary to accommodate proposed site modifications. Upon review of the staff report and hearing public testimony, the Planning Commission recommended that the City Council approve the following: A. Preliminary/Final Plat of the “Federated Co-ops Addition” subject to the conditions outlined in Resolution No. 2013-023. Agenda Page 47 Mayor and Council Request for Action – July 15, 2013 Federated Co-ops Inc. Property Page 2 of 2 M:\Public Data\City Council\Council Packet information\2013\071513\071513 Federated co-ops RCA.docx Meeting Date: July 15, 2013 B. Rezoning of the subject sites from B-3, Highway Commercial to PUD, Planned Unit Development subject to the conditions outlined in Ordinance No. 2013-005. C. Site and Building Plans subject to the conditions outlined in Resolution No. 2013- 024. KEY ISSUES: • Federated Co-ops Inc. exists as a legal non-conforming agri-business use within the current B-3 Zoning District. Without the zoning change, this use cannot be expanded. The proposed PUD identifies a limited range of land uses that may be permitted on this site. Through this list of land uses, the City preserves its long range commercial redevelopment goals, while making accommodations to continue operation and growth on the site. • This strategy attempts to preserve and grow the City’s tax base and local job opportunities and hopefully will encourage Federated Co-ops Inc. to relocate within the City when the business outgrows the site. • Federated Co-ops Inc. has not presented any compatibility issues for the surrounding properties. Additional traffic is not expected as a result of proposed site modifications. • The existing building locations are legally non-conforming according to the B-3 District required setbacks. Future development (redevelopment) will be required to meet all B-3 District setback and height restrictions. • Staff recommends that the Council approve the Preliminary/Final Plat, Zoning Map Amendment and Site and Building Plans. POLICY CONSIDERATIONS: In accordance with State Law, public notice was published and a public hearing held by the Planning Commission for the Preliminary/Final Plat, Zoning Map Amendment, and Site and Building Plan. The Commission recommended that the City Council approve all of the aforementioned applications. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the Preliminary/Final Plat, Zoning Map Amendment or Site and Building Plans. LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to amend the Zoning Map, which requires a majority vote of the City Council and becomes effective upon publication. Responsible Person/Department: Alan Brixius, City Planner Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2013-023 Ordinance No. 2013-005 Resolution No. 2013-024 Planning Report dated July 1, 2013 Agenda Page 48 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2013-023 RESOLUTION APPROVING A PRELIMINARY/FINAL PLAT FOR THE FEDERATED CO-OPS INC. PROPERTY LOCATED AT 11229 60TH AVENUE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS, Federated Co-ops Inc. have submitted an application for a preliminary/final plat entitled “Federated Co-ops Addition” which overlays 2.6 acres of land located at11229 60th Avenue; and WHEREAS, the applicants have also submitted the following applications in conjunction with the requested preliminary/final plat: a. Rezoning of the subject properties from B-3, Highway Commercial to PUD, Planned Unit Development b. Site and building plans; and WHEREAS, City Staff has reviewed submitted preliminary/final plat and prepared a planning report dated July 1, 2013; and WHEREAS, the Albertville Planning and Zoning Commission met and held a public hearing on July 9, 2013, to consider the preliminary/final plat and recommended that the City Council approve the preliminary/final plat; and WHEREAS, Albertville City Council met on July 15, 2013 to consider the Federated Co-ops Inc. preliminary/final plat application; and WHEREAS, the Albertville City Council has received the Federated Co-ops Inc. application, preliminary/final plat dated May 7, 2013, staff review documents, and the Planning Commission recommendation, and agrees with the findings and recommendation of the Planning Commission. NOW, THEREFORE BE IT RESOLVED, that the City Council of Albertville, Minnesota hereby approves the “Federated Co-ops Addition” preliminary/final plat subject to the following Findings of Fact and Decision. Agenda Page 49 City of Albertville Resoltuion 2013-023 July 15, 2013 Page 2 Decision: Based on the foregoing information and applicable ordinances, the City Council hereby APPROVES the preliminary/final plat based on the plat dated May 7, 2013, subject to the following conditions: 1. The City Engineer shall provide comment and recommendation in regard to site grading, drainage and utility issues. 2. The preliminary/final plat shall be recorded within 120 days of approval. Adopted by the Albertville City Council this 15th day of July 2013. By: ________________________________ Jillian Hendrickson, Mayor Attest: ___________________________ Kimberly A. Olson, City Clerk Agenda Page 50 CITY OF ALBERTVILLE WRIGHT COUNTY, MINNESOTA ORDINANCE NO. 2013-005 AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF ALBERTVILLE, RELATING TO THE FEDERATED CO-OPS INC. PROPERTY LOCATED AT 11229 60TH AVENUE NE IN THE CITY OF ALBERTVILLE THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA ORDAINS: SECTION 1. The Albertville Zoning Map shall be amended, relating to property legally described as: Federated Co-ops Addition, Lot 1, Block 1 and Lot 1, Block 2, Wright County, Minnesota SECTION 2. The lots shall be rezoned from B-3, Highway Commercial District, to PUD, Planned Unit Development in order for the City to define the range of appropriate land uses and development performance standards unique to the property, subject to the following conditions: 1. Within the approved PUD, land uses shall be limited to the following: a. All permitted conditional and accessory uses allowed within the B-3 Zoning District. Any change of use from existing conditions shall be processed through the appropriate development applications called for by the Albertville Zoning Ordinance. b. Farm supply sales and associated storage including fertilizer (dry and liquid), animal feed, seed, fuel, and oil and related products per the approved site plan dated May 7, 2013. 2. A zero lot line setback shall be allowed along north property lines of Blocks 1 and 2. Along all other property lines, a minimum 10 foot structure setback shall be maintained. 3. The height of new buildings and building additions shall not exceed 35 feet in height. 4. The following architectural standards shall apply: a. Any and all permitted conditional and accessory uses allowed within the B-3 Zoning District shall meet the architectural standards of Section 4400.8 of the Albertville Zoning Ordinance. b. Proposed and expanded site structures must comply with building finish material requirements of the B-3 District. Agenda Page 51 City of Albertville County of Wright Ordinance No. 2013-005 Page 2 c. The color of new and expanded buildings shall match the color of the principal building. d. Off-street parking areas, related drive lanes, and outdoor storage areas may be surfaced in gravel. 5. Proposed fuel storage improvements/modifications shall meet all applicable requirements of the Minnesota Pollution Control Agency and City Building and Fire Codes. THIS AMENDMENT SHALL BE IN FULL FORCE AND EFFECTIVE IMMEDIATELY FOLLOWING ITS PASSAGE AND PUBLICATION. Approved by the Albertville City Council this 15th day of July, 2013. ______________________________ Jillian Hendrickson, Mayor ______________________________ Kimberly A. Olson, City Clerk Agenda Page 52 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2013-024 RESOLUTION APPROVING SITE AND BUILDING PLANS FOR THE FEDERATED CO-OPS INC. PROPERTY LOCATED AT 11229 60TH AVENUE NE WITHIN THE CITY OF ALBERTVILLE WHEREAS, Federated Co-ops Inc. have submitted an application for a site and building plan review for various site modifications for the property legally described as follows: Federated Co-ops Addition, Lot 1, Block 1 and Lot 1, Block 2, Wright County, Minnesota; and WHEREAS, the applicants have also submitted the following applications in conjunction with the requested review of site and building plans: a. Preliminary/final plat (Federated Co-ops Addition) b. Rezoning of the subject properties from B-3, Highway Commercial to PUD, Planned Unit Development; and WHEREAS, City Staff has reviewed submitted plans and prepared a planning report dated July 1 , 2013; and WHEREAS, the Albertville Planning Commission met and held a public hearing on July 9, 2013, to consider the site and building plans of Federated Co-ops Inc. and recommended that the City Council approve the plans; and WHEREAS, the Albertville City Council met on July 15, 2013 to consider the Federated Co-ops Inc. Site and Building Plan Review application; and WHEREAS, the Albertville City Council has received the Federated Co-ops Inc. application, plans dated May 7, 2013, staff review documents, and the Planning Commission recommendation, and agrees with the findings and recommendation of the Planning Commission. NOW, THEREFORE BE IT RESOLVED that the City Council of Albertville, Minnesota hereby approves the site and building plans dated May 7, 2013 of Federated Co-ops Inc. subject to the following conditions: 1. The City approves the requested Federation Co-ops Inc. preliminary/final plat application. Agenda Page 53 City of Albertville Resolution 2013-024 July 15, 203 Page 2 2. The City approves the requested PUD rezoning application. 3. Future Building plans consistent with the approved site plan shall require a minor site and building plan review to insure compliance with the terms of the PUD. Any changes to the Site plan shall require a major site and building plan review to be approved by City Council. 4. Proposed fuel storage improvements/modifications meet all applicable requirements of the Minnesota Pollution Control Agency and City Building and Fire Codes. Adopted by the Albertville City Council this 15th day of July, 2013. By: __________________________ Jillian Hendrickson, Mayor Attest: ___________________________ Kim Olson, City Clerk Agenda Page 54 City Administrator’s Update July 11, 2013 GENERAL ADMINISTRATION 5964 Main Avenue NE Lease: Staff continues to work to receive quotes for the improvements needed to lease the building and facilitate the Soccer Association. Estimates provided by the contractors are showing to be higher than originally estimated by the architect, and staff is meeting individually with sub-contractors to determine if costs can be further reduced. We plan to present quotes at the first meeting in August. Guardian Angels: Included on the consent agenda, are two resolutions and two joint powers agreements related to conduit financing. These documents allow 1) the City of Otsego to provide conduit for the Guardian Angels project located in Albertville, and 2) for the City of Albertville to provide conduit for refinancing of operations Guardian Angels has in Elk River. These documents have been prepared by bond council for Guardian Angels and reviewed by the City’s bond council, Kennedy and Graven. Public Building Interconnect: Quotes to replace the point-to-point antennas and provide hard connections between the city buildings are expected to be presented to the Council in August, which would allow for installation in the fall. Knechtl Settlement: The City has received the fully executed settlement agreement and the City Attorney will be preparing the resolution to revise the assessment for Council to approve at the first meeting in August. ENGINEERING/PUBLIC WORKS Marlow Avenue NE: Fehn’s will be re-grading and graveling Marlowe within the next few weeks. 2013 Street, Trails, and Utility Improvement Project: It is anticipated that the project will commence mid-July, starting with the trails at Four Seasons Park. The CSAH 18 Trail and street work are expected to begin at the end of the month. The second letter to residents will be mailed out prior to construction. WB I-94 C-D Road: The Contractor is working to complete punch list items and final restoration of the project. Vehicle Lift: The new vehicle lift was recently installed at the Public Works Garage. Staff will submit the necessary documents to receive the grant funds. UPCOMING EVENTS and ANNOUNCEMENTS • August 9th, 5:30 PM – St. Michael Bowling Challenge at River lanes. Please let Kim or I know if you plan to attend. Agenda Page 55