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1993-10-18 CC Agenda/Packet• ALBERTVILLE CITY COUNCIL AGENDA October 18, 1993 I. CALL MEETING TO ORDER II. APPROVAL OF THE AGENDA III. APPROVAL OF CONSENT AGENDA ITEMS * Attached List IV. FOLLOW-UP SHEET * October 4, 1993 V. APPROVAL OF THE MINUTES * October 4, 1993 - Regular Meeting Vi. COMMUNITY FORUM - 10 MINUTE LIMIT - Patty Kalina - Courage Center Wagon Train - Bob Heuring - Collection of grass clippings VII. DEPARTMENT BUSINESS A. PLANNING & ZONING • * Appoint Howard Larson, representing P&Z, to Otsego Creek Commission B. ENGINEERING - Project Updates 8:30 PM C. LEGAL - Clinic Contract - Authorization to pursue enforcement of Septic Systems Ordinance against Ralph Ackerman - Project Updates D. ADMINISTRATION * Financial Statement (September 30 - October 13) * Approve bills (Check #7890 - #7918) - Approve recommendations from Springsted, Inc. for two bond issues - Set bond sale date of 11/15 - Adopt RESOLUTION #1993-33 (Declaring the Official intent of the City of Albertville to Reimburse Certain Expenditure from the Proceeds of Bonds to Be Issued by the City) - Adopt RESOLUTION #1993-34 (Resolution Providing for the Issuance and Sale of $175,000 General Obligation Refunding Bonds, Series 1993C) - Adopt RESOLUTION #1993-35 (Resolution Providing for the Issuance and Sale of $245,000 General 40 Obligation Improvement Bonds, Series 1993B - Consider adoption of ORDINANCE #1993-14 - Consider adoption of ORDINANCE #1993-15 .7 r� U Set tentative date for meeting of Otsego Creek Commission Discuss adding lighting to Park & Ride Set hearing date to amend TIF budgets * Unfunded Mandates Day - (Resolution 1993-36) Set date for budget meeting VIII. OTHER BUSINESS IX. ADJOURN UPCOMING MEETINGS/IMPORTANT DATES Oct. 21, 1993 Park Board - Regular Meeting Oct. 26, 1993 Planning Commission - Regular Meetng Nov. 1, 1993 City Council - Regular Meeting ALBERTVILLE CITY COUNCIL October 18, 1993 Albertville City Hall 7:30 PM PRESENT: Mayor Mike Potter, Councilmembers John Vetsch, Duane Berning, Sharon Anderson and Albert Barthel, City Clerk Linda Houghton, City Engineers Ron Guerts and Norm Gartner, City Attorney Mike Couri Mayor Potter called the regular meeting of the Albertville City Council to order. The agenda was amended under Engineering by adding the addition the letter received from Bridget and David Falbo concerning their concerns over the 50th Street construction. Berning made a motion to approve the agenda as amended. Barthel seconded the motion. All voted aye. Barthel made a motion to approve the follow-up sheet from the October 4, 1993, meeting as presented. Anderson seconded the motion. All voted aye. Barthel made a motion to approve the minutes of the October 4, 1993, meeting as presented. Anderson seconded the motion. All voted aye. Bob Heuring did not attend the meeting to discuss collection of grass clippings. Bob Braun requested that the Council consider a reduction in his letter of credit for the Hardwood Ponds 2nd Addition at such a time when 50% of the assessments have been paid. According to his developer's agreement, the surety will be reduced when 75% of the assessments have been paid. Linda reported that she had contacted the city attorney for his opinion and Couri indicated that the Council could lower the amount of the letter of credit upon petition of the developer when 50% of the assessments have been paid. Vetsch made a motion stating that the Council will agree to lower the letter of credit for the Hardwood Ponds 2nd Addition upon petition of the developer when 50% of the assessments have been paid. Barthel seconded the motion. All voted aye. Lion members Donatus Vetsch, Marvin Vetsch, and Ken Tiernan requested permission to withdraw $12,000 from the Lions certificate of deposit for various projects and to have Linda reinvest the balance of the funds. Barthel made a motion to approve the request. Anderson seconded the motion. All voted aye. .-. Galen Kalina, representing the Camp Courage Wagon Train, explained that this year the annual wagon train will be leaving from Elk River on Friday, June 17, and would like to travel through Albertville on County Road 19 by the freeway. The wagon train ALBERTVILLE CITY COUNCIL October 18, 1993 Page 2 of 5 would like a tanker truck to bring water for the horses to the site. Fire Chief Dave Vetsch was in attendance at the meeting and indicated there should be no problem with that request. Linda was directed to contact the city attorney to determine if the City needs any proof of insurance, etc., from Camp Courage. Barthel made a motion to appoint Howard Larson, representing the Planning & Zoning Commission, to the Otsego Creek Commission. Anderson seconded the motion. All voted aye. City Engineer Norm Gartner was unaware of the situation described by the Falbos in their letter and will speak will Thore and report to the next Council meeting. Norm presented a letter dated October 14, 1993, from Annandale Contracting requesting a thirty day time extension on completion of Hardwood Ponds 2nd Addition improvements. The request results from the fact that the contract for the improvements was delayed because the City had not received the required sureties from the developer. In addition the contractor is requesting approval of an additional $.43 per foot increase in curb and gutter due to the fact that additional time and work are spent installing curb and gutter after November 1. Anderson made a motion to approve a 30- day time extension for completion of improvements in the Hardwood Ponds 2nd Addition and to approve an additional $.43 per lineal foot cost for curb and gutter if installed after November 1 (2,630 feet for an additional cost of $1,130.90). Barthel seconded the motion. All voted aye. Norm updated the Council on various City projects. Norm was directed to have the on -site inspector doublecheck compaction in the Parkside Addition where curb and gutter will be installed. Norm reviewed Change Order #1 on the wastewater treatment facility expansion project (1992-11A). The change order is necessary because the specs for the project were written with a wall -mounted electrical panel for the ultra -violet disinfection system. Since there is no wall for the panel to be placed on, change order #1 details a pedestal mounted pane with a hood. Change Order #1 adds $1,837 to the project cost. Barthel made a motion to approve Change Order #1 for Improvement Project 1993- 11A in the add amount of $1,837. Anderson seconded the motion. Barthel and Anderson voted aye. Berning and Vetsch voted no. Mayor Potter cast his vote affirmatively. The motion carried. Norm also briefly explained three -1 orders that may arise as follows: (1) Relocate electric line to where is (approximately $3,000 add) (2) Change heaters in building from other potential change existing pole electric to ALBERTVILLE CITY COUNCIL October 18, 1993 Page 3 of 5 gas to conform with the other portion of the building (approximately $9,920 add) (3) MPCA will require the addition of a gate valve on the outlet from Cell #3 into the lake (approximately $1,500 add) Some sort of weir may also be required in the effluent meter sampler and, if necessary, a change order will be required. The consensus of the Council is that the old storage garage located at the wastewater treatment facility will remain where it is and a retaining wall costing approximately $820 will be installed. Attorney Mike Couri reviewed the revised contract with Healthspan on the clinic building. Since alterations have again been made to the renovation plan and those costs are not available at this time, the Council tabled further discussion. Attorney Couri reported that Ralph Ackerman has not complied with the City's septic system ordinance within the time limits allowed. The Council now has only two options regarding the failed septic system: to enforce the ordinance or to choose not to enforce its ordinance. To enforce the ordinance requires going to the court system and asking a judge to order that Ackerman fix his septic system or cease use of the system. Couri cannot guarantee or predict how the judge will order. He also indicated that the legal costs for taking Ackerman to court could run up to $3,000. There is only a small difference in legal costs if the City decides to pursue the kennel violation against Ackerman at the same time. The judge will determine whether the City's legal fees will be reimbursed. Anderson made a motion authorizing the city attorney to pursue enforcement of the septic system ordinance against Ralph Ackerman and at the same time enforce the ordinance violation concerning his kennel operation. Vetsch seconded the motion. All voted aye. Couri has checked into the portion of Barthel Industrial Drive that has been closed off. The City may either contact all emergency agencies that the road is closed or reopen the street and maintain it as any other gravel street. The Council agreed to reopen the street and directed Linda to contact Dennis Fehn to remove the "Private Drive" sign he has installed and to remove his vehicles from the street. Couri is continuing to check on the Americans with Disabilities Act and how it applies to the current City Hall .� building upon its change of use. Barthel made a motion to approve the Financial Statement for the period September 30 - October 13 as presented. Anderson ALBERTVILLE CITY COUNCIL October 18, 1993 Page 4 of 5 seconded the motion. All voted aye. Barthel made a motion to approve payment of Check #'s 7890- 7918 as presented. Anderson seconded the motion. All voted aye. Bob Thistle of Springsted, Inc. presented his recommendations for the sale of two new bond issues --the refunding bond to purchase the clinic building and the improvement bond for financing the improvements at Hardwood Ponds 2nd Addition. Barthel made a motion to adopt RESOLUTION #1993-33 entitled DECLARING THE OFFICIAL INTENT OF THE CITY OF ALBERTVILLE TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY. Anderson seconded the motion. All voted aye. Anderson made a motion to adopt RESOLUTION #1993-34 entitled RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $175,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993C. Barthel seconded the motion. All voted aye. Barthel made a motion to adopt RESOLUTION #1993-35 entitled RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $245,000 GENERAL OBLIGATION BONDS, SERIES 1993B. Vetsch seconded the motion. All voted aye. Anderson made a motion to adopt ORDINANCE #1993-14 entitled AN ORDINANCE ESTABLISHING THE ANNUAL BUDGET CALENDAR TO BE USED AS PART OF THE BUDGET PROCESS. Berning seconded the motion. All voted aye. Berning made a motion to adopt ORDINANCE #1993-15 entitled AN ORDINANCE ESTABLISHING A FORMAL ORGANIZATIONAL CHART. Barthel seconded the motion. All voted aye. The members of the Otsego Creek Commission will meet on October 20, 1993, at 7:00 PM at the Otsego City Hall. The Council agreed to have lighting installed at the new Park & Ride site. Linda will contact NSP to find out what costs will be. Anderson made a motion directing Linda to get prices for the installation of two street lights at the Park & Ride site for Mayor Potter's and Councilman Vetsch's approval with a not -to -exceed cost of $10,000. Barthel seconded the motion. All voted aye. Linda will contact Kevin Mealhouse, the City's civil defense director, and the Wright County Civil Defense Director to discuss working on a civil defense siren for the City. Vetsch made a motion to schedule a public hearing to amend the budget for TIF District #5 for December 13, 1993, at 7:00 PM, or ALBERTVILLE CITY COUNCIL October 18, 1993 Page 5 of 5 immediately following the continuation hearing for Truth -in - Taxation if necessary. Barthel seconded the motion. All voted aye. Barthel made a motion to adopt RESOLUTION #1993-96 entitled RESOLUTION ON UNFUNDED MANDATES. Anderson seconded the motion. All voted aye. Anderson made a motion to schedule a budget meeting, including wage discussions, for 7:00 PM on Wednesday, November 3. Berning seconded the motion. All voted aye. Vetsch made a motion to adjourn at 9:55 PM. Anderson seconded the motion. All voted aye. Michael Potter, Mayor Linda Houghton, Cle-11 ALBERTVILLE CITY COUNCIL CONSENT AGENDA ITEMS October 20, 1993 III. APPROVAL OF CONSENT AGENDA - Follow Up Sheet - October 4, 1993 Meeting - Minutes of October 4, 1993 - Regular Meeting - Appoint Howard Larson, representing P&Z, to Otsego Creek Commission - Financial Statement (September 30 - October 13) - Approve bills (Check #7890 - #7918) - Unfunded Mandates Day - (Resolution 1993-36) CITY OF ALBERTVILLE FOLLOW UP SHEET OCTOBER 4, 1993 DATE ACTION TO BE TAKEN _ _ _ PERSON 1993 6/7 Contact St. Cloud re: establishment of HRA Potter and EDA. 6/21 Review sewer rates in 6 months. Cavil 10/4 Address final approvals for connections to Joint Potter Powers system to be an administrative decision Vetsch 10/4 Get tentative time line from Rice Lake Contractor Norm for grading at WWTF site 10/4 Review and sign Indemnification Agreement with Potter 10/7 Kent Roseller re: Parkside Addition Linda 10/4 Reveiw and sign Loan Agreement with PFA after Potter 10/8 concerns have been addressed ALBERTVILLE CITY COUNCIL October 4, 1993 Albertville City Hall 7:30 PM PRESENT: Mayor Mike Potter, Councilmembers John Vetsch, Duane Berning, Sharon Anderson and Albert Barthel, City Clerk Linda Houghton, City Engineers Ron Guerts and Norm Gartner, City Attorney Mike Couri Mayor Potter called the regular meeting of the Albertville City Council to order. The agenda was amended by adding preliminary plat approval for Parkside 2nd Addition under engineering. Barthel made a motion to approve the agenda as amended. Berning seconded the motion. All voted aye. Vetsch made a motion to approve the Follow -Up sheet from the September 20, 1993, meeting as presented. Barthel seconded the motion. All voted aye. Vetsch made a motion to approve the minutes of the September 20, 1993, regular meeting as presented. Barthel seconded the motion. All voted aye. Vetsch made a motion to approve the minutes of the September 28, 1993, work meeting as presented. Barthel seconded the motion. All voted aye. Russ Voght did not appear at the meeting to discuss his concerns over a failed septic system on the Ralph Ackerman property. Bill Dwinnell addressed the Council. He requested that the Council approve a building permit to allow him to pour the footings and foundation for a new home in Hardwood Ponds 2nd Addition. Linda explained that the developer has not yet signed the Developer's Agreement or presented the Letters of Credit for the project. Consequently, the City has not signed the contract with the contractor for the improvements to be installed. The Council told Dwinnell they could not consider the possibility of issuing any permit unitl all paperwork for the project has been completed. Doug Psyk addressed the Council regarding his concerns that Joint Powers Board will not allow any connections to the water system until after the bacteriological test results and the as- builts have been completed. Psyk requested that Albertville's representatives to the Joint Powers Board discuss allowing final approval for connections to be an administrative decision, rather than the current requirement of Board action. ALBERTVILLE CITY COUNCIL October 4, 1993 Page 3 of 4 (2) All units will have a 20' X 20' garage. (3) Restrictive covenants will be recorded with the plat. Anderson seconded the motion. All voted aye. Roessler requested that building permits be issued for the Parkside Addition prior to curb, gutter, and gravel completion. He stated it is crucial to his business to get several model homes up this fall. Curb, gutter and gravel will be put down later this fall. Since he is paying for his own improvements, additional work caused because of damage to the streets will be borne by Roessler. Councilmember Vetsch stated that the City may be unable to get emergency vehicles to the building sites and the City would be liable. Roessler offered to sign an indemnification agreement releasing the City from all liability or risk. City Attorney Mike Couri recommended that the City issue the building permits with the stipulation that no Certificate of Occupancy will be issued until after the curb, gutter and gravel base are in if an Indemnification Agreement is signed by Roessler and the City. Barthel made a motion to allow building permits to be issued in the Parkside Addition, subject to Mayor Potter and Linda reviewing and signing the Indemnification Agreement. Vetsch seconded the motion. All voted aye. City Engineer Norm Gartner presented the abstract of bids for the Westwind Third Addition Improvements in his letter dated September 30, 1993. Randy Kramer Excavating is the apparent low bidder in the amount of $86,693.20. Anderson made a motion to adopt RESOLUTION #1993-32 awarding the bid for the Westwind Third Addition Improvements to Randy Kramer Excavating in the amount of $86,693.20. Barthel seconded the motion. All voted aye. Chem Marx was not in attendance; therefore, the Council did not address the storm sewer project on his property. Vetsch made a motion to grant Machtemes Construction a four week extension for detention pond excavation in the Psyk's Fifth Addition. Barthel seconded the motion. All voted aye. Norm reviewed the cost figures for the 50th Street Improvement Project. There were cost overruns in both the sodding and the retaining wall. The Council questioned why there were overruns and Norm explained that the bid price is on a per unit basis and more sod and more retaining wall construction were necessary. Pricing per unit, rather than by job, is generally the cheaper option. However, in this case, the amount of sod and the amount of retaining walls were greater than anticipated. Attorney Couri release Healthspan building. The final reviewed the basic draft of from the lease agreement contract should be ready for the contract to for the clinic Council approval ALBERTVILLE CITY COUNCIL October 4, 1993 Page 2 of 4 Ken Lindsay explained to the Council that he, Linda and Mayor Potter had met at the wastewater facility to look at the condition of the old storage garage. All agreed that the garage is in poor condition and should be removed to avoid having a retaining wall constructed around it. Potter and Ken measured the area and found there is sufficient room for a new building to be constructed on site. Lindsay presented the prices he'd gotten for constructing a three sided storage shed. The Council concurred that the old storage garage should be removed, but Councilman Berning questioned whether there would be the need for additional storage when the administrative offices are moved to the old clinic building and the fire department is moved to a new building. Mayor Potter reported that he is waiting a price quote from Lyman Post and Beam. Gartner will get the information from the contractor on when grading is proposed around the current storage building. The Council agreed to table the decision until all information is available. Ken presented a quotation from Albertville Body & Fender for the installation of a window in the right door of the plow truck that will enable the driver to see the wing as he is plowing. The window will be installed before snow plowing season. Ken reported that there may be excess dirt from the Hardwood Ponds 2nd Addition project that could be used in the Westwind Park. No decision was made at this time. Ken will remove the signs from the old Park & Ride site and install posts as barriers. The Council tabled the quotation from Rice Lake Contracting to demolish and bury the materials from the old tank at the wastewater treatment facility. Kent Roessler, the developer of the Parkside 2nd Addition, discussed his preliminary plat with the Council. The plat consists of 18 separate lots and are proposed for twin homes with a zero lot line. Roessler explained that the units will be quality, but affordable, units with maintenance -free exteriors with some brick and attached 20' X 20' double garages. The split entry units are 860 square feet on the main floor with an 800 square foot unfinished lower level. Roessler is proposing a 25' front yard setback to coincide with the 25' front yard setback in the rest of the Westwind PUD. Roessler stated that the yards will be sodded 150' back from the curb. There will be restrictive covenants recorded with the plat. Roessler agreed to include the specifications detailed above in the Developer's Agreement to insure that all units will be constructed as proposed. Barthel made a motion to grant preliminary plat approval to Parkside 2nd Addition with the following stipulations: (1) All units will meet a 30' front yard setback. ALBERTVILLE CITY COUNCIL October 4, 1993 Page 4 of 4 at the next meeting. Couri presented the Loan Agreement with the Public Financing Authority. The interest rate on the $1,490,000 bond is set at 3.32% over twenty years. Couri needs some clarification from PFA regarding how the SAC fees were to be applied to this debt service, because the City has already obligated the SAC fees to other debt service funds. He expects to get the questions clarified tomorrow. Anderson made a motion to adopt RESOLUTION #1993-30 entitled RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF A NOTE AND EXECUTION OF A LOAN AGREEMENT BETWEEN THE CITY OF ALBERTVILLE AND THE MINNESOTA PUBLIC FACILITIES AUTHORITY, contingent upon Mayor Potter reviewing the document after Couri has clarified his concerns. Barthel seconded the motion. All voted aye. Barthel made a motion to adopt RESOLUTION #1993-31 entitled A RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE $1,490,000 GENERAL OBLIGATION SEWER REVENUE NOTE, SERIES 1993, continent upon necessary clarification of the Loan Agreement with PFA. Anderson seconded the motion. All voted aye. Vetsch made a motion to approve the Financial Statement for the period September 16 - September 29 as presented. Barthel seconded the motion. All voted aye. Vetsch made a motion to approve payment of Check Vs 7841- 7884 as presented. Barthel seconded the motion. All voted aye. Vetsch made a motion to declare the week of October loth as "Turn Off the Violence" week. Barthel seconded the motion. All voted aye. Barthel made a motion to purchase Worker's Compensation Insurance with a zero deductible. Berning seconded the motion. All voted aye. Vetsch made a motion to adiourn at 10:40 PM. Anderson seconded the motion. All voted aye. Michael Potter, Mayor Linda Houghton, Clerk PLANNING & ZONING COMMISSION OCTOBER 12, 1993 ALBERTVILLE CITY HALL 7:00 PM COMMISSION MEMBERS PRESENT: LeRoy Berning, Howard Larson, Roger Johnson, Albert Barthel, Donatus Vetsch, and Secretary Ann Culley. ABSENT: Jan Heikes, alternate. Chairman Berning called the meeting to order at 7:10 PM. Johnson requested that discussion regarding a possible ordinance change regarding minimum garage sizes be added to the agenda under tither Business. Vetsch made a motion to approve the amended agenda. Larson seconded the motion. All voted aye. Johnson made a motion to approve the minutes of the September 14, 1993, meeting as submitted. Larson seconded the motion. All voted aye. Greg Vetsch addressed the Commission with regard to the construction of an additional garage on his property. Vetsch's situation is unique in that he owns approximately 1 acre of land, 2/3 of which is located in Frankfort Township and 1/3 is located in Albertville. His house is located in Frankfort Township and his existing garages are located in Albertville. He currently has a detached garage which is 24' x 26' feet and has a full tuck -under garage (1,248 square feet). He also has an attached garage which measures 22' x 22' (434 square feet). Vetsch currently has 1,732 square feet of garage space, all of which is located in Albertville. Albertville ordinance allows a maximum garage square footage of 900 square feet. Vetsch is proposing to build a 20' x 22' (440 square feet) addition to the front of his existing attached garage which will give him a total of 2,172 square feet of garage space. Vetsch stated that at some future date he hopes to turn the existing attached garage into a family room, but is uncertain as to when that might happen. He further stated that the reason he wants to build this additional garage is that he has a couple of old cars which he needs to store, however, if his taxes will increase too much, he could just as well store them in an off -site facility. Ann suggested that he contact the Wright County Assessor to find out how the addition of this garage would affect his future taxes. Vetsch will do so. The Commission advised Vetsch that if he wishes to proceed with this project he will need to complete an application, pay the fee, and submit a more detailed plan showing the setbacks, detached garage, etc. Vetsch will contact the City if he chooses to proceed with this project. PLANING COMMISSION - 10/12/93 Page 2 of 2 The Planning Commission reviewed the proposed budget for 1994 and were in agreement with the amounts budgeted. The Commission addressed the Council"s request for a Commissioner to be a member of the Otsego Creek Commission. No one volunteered for the position. Vetsch made a motion to appoint Howard Larson to the Otsego Creek Commission. The motion was seconded by Barthel. Berning, .Johnson, Vetsch, 2Lnd Barthel voted aye. Larson voted nay. Larson was appointed and accepted the appointment. The Commission discussed the possibility of an ordinance change which would address in more detail the minimum garage size allowable in the City of Albertville. The Commission directed Ann to get copies of the current ordinance as it relates to this and to have it, available for their review at the next meeting. The Commission questioned what the Park Board has decided to do regarding the proposal from Licht"s office for putting together a comprehensive plan for the City's park system. Ann stated that she had not been advised of the Board's decision at this time. The Commission feels that Licht"s proposal is very expensive and is probably more detailed than they had meant it to be. The Commission wants to follow up on the Park Board's decision and make sure that some type of action is taken in one form or another to ensure that there is some type of plan for future developments and walking/biking paths in same. Barthel made a motion to adjourn at 8:35 PM. Vetsch seconded the motion. All voted aye. Ann Culley, Secretary 10-14-1993 10:06AM FROM RADZWILLLAWOFFICE TO 4973210 P.02 AGREEMENT TO TERMINATE LEASE WHEREAS, the City of Albertville (hereafter "City"), a municipal corporation under the laws of the state of Minnesota and Buffalo Clinic, P.A. have entered into a Lease Agreement (hereafter "Lease") dated August 16, 1982 for the lease of a parcel of real estate and a building (hereafter "Premises") legally described on attached Exhibit A; and WHEREAS, the City has issued general obligation revenue bonds in the amount of $300,000.00 to be repaid with rental proceeds as specified in the Lease; and WHEREAS, Buffalo Clinic, P.A. has assigned said Lease to Twenty Eight Ten, Inc., which company is a wholly owned subsidiary of Health Span, Inc.; and WHEREAS, the Buffalo Clinic, P.A., Twenty Eight Ten, Inc., and Health Span, Inc. desire to be released from the obligations of the Lease and wishes to relinquish all ownership interests in the Premises which is the subject matter of the Lease; and WHEREAS, the City desires to own said Premises in fee simple absolute for use as a city hall; NOW, THEREFORE, the City, the Buffalo Clinic, P.A., Twenty Eight Ten, Inc., and Health Span, Inc. hereby agree as follows: 1. Conveyance and Termination of Leasehold —In-tP,: st. Health Span, Inc., the Buffalo Clinic, P.A. and Twenty Eight Ten, Inc. will join in executing a quit claim deed and/or a lease termination in favor of the City, conveying to the City any and all interest said parties have in said Lease and said Premises as described in Exhibit A. Said parties shall also join in a Bill of Sale, conveying to the City all personal property currently upon said Premises (said personal property is listed on Exhibit B and is attached and incorporated herein by reference). Before conveyance shall occur, Health Span, Inc. shall have removed any and all encumbrances upon the title to the Premises that have occurred since the execution of the Lease by the Buffalo Clinic, P.A., except those encumbrances occurring as a result of City action, if any. It is the intention of the parties that this conveyance terminate all interests of Buffalo Clinic, P.A., Twenty Eight Ten, Inc. and Health Span, Inc. in said Premises, including the leasehold interest and the option to purchase the property per the Lease agreement. Health Span, Inc., the Buffalo Clinic, P.A. and Twenty Eight Ten, Inc. will each certify that the Premises has not been subleased to any party other than Health Span, Inc., Buffalo Clinic, P.A. or Twenty Eight Ten, Inc. 0-14-1993 10:07AM FROM RADZWILLLAWOFFICE TO 4973210 P.03 2. Release of Lease obligations. The City will execute a release of said Lease in favor of Buffalo Clinic, P.A., Twenty Eight Ten, Inc. and Health Span, Inc., as well as a release of the Guarantee executed by Health Central, Inc. on August 16, 1982. 3. Remodeling of Building and Cost of Same. Health Span, Inc. shall pay Timco, Inc. the sum of thirty thousand dollars ($3o,000.00) toward the cost of remodeling the former clinic building for use as a City Hall. Said remodeling shall be carried out in accordance with the attached floor plan (incorporated herein by reference as Exhibit B). Health Span, Inc. has received a remodeling bid quote in the amount of $30,000.00 from Timco, Inc., and shall contract for and supervise the remodeling of said structure at this bid price. Any additions, deletions or other changes to Exhibit B which are requested by the City shall be at the Cityfs expense. 4. Prorations. The City and Health Span, Inc. agree to :prorate all bond interest costs, utilities and ad valorem real. estate taxes, if any, to the date of closing, including, but: not limited to: proration of that portion of interest (but not principal) due on March 1, 1994; proration of quarterly water and sewer bills (if individual readings at time of closing are not possible), and proration of any ad valorem taxes levied and payable in 1993, if any. Health Span, Inc. shall pay, all outstanding special assessments levied upon the Premises at time of closing, if any. S. Indemnification as to Radiation and Pollution. Health Span, Inc. will deliver the premises free of radiation residue and free of any and all hazardous substances (as defined by federal or state rules, regulations or law) that have entered the premises since August 16, 1982. If the premises is found to contain any such radia"tGion or hazardous substances which entered in or upon the premises after August 16, 1982 but before the date of the closing, Health Span, Inc. agrees to hold harmless and indemnify the City for all costs incurred in cleaning up or eliminating said radiation or hazardous substances. Health Span, Inc., Buffalo Clinic, P.A. and Twenty Eight Ten, Inc. hereby warrant that they have no knowledge of the existence of radiation or hazardous substances on the premises as of the date of this document. 10-14-1993 10:07AM FROM RADZWILLLAWOFFICE TO 4973210 P.04 6. Time of Closin All above described documents shall be executed at closing. Closing shall occur with respect to the Premises within one week after acceptance by the City Council of all remodeling improvements described in paragraph 3 above. Prior to closing, all provisions of the Lease shall remain in effect. The parties anticipate and will employ their best efforts to insure that the closing will occur before Ja-nuary 1, 1994. Dated: CITY OF ALBERTVILLE Mayor Clerk HEALTH SPAN, INC. TWENTY-EIGHT TEN, INC. Buffalo Clinic, P.A. Recommendations For City of Albertville, Minnesota $2459000 General Obligation Improvement Bonds, Series 1993B $1759000 General Obligation Refunding Bonds, Series 1993C Study No. A0116P1 01 SPRINGS'rED Incorporated October 12, 1993 SPRINGSTED PUBLIC FINANCE ADVISORS Home Office 85 East Seventh Place Suite 100 Saint Paul, MN 55101-2143 (612) 223-3000 Fax: (612) 223-3002 October 12, 1993 Mayor Michael Potter Members, City Council Ms. Linda Houghton, Clerk -Treasurer City of Albertville 5964 Main Avenue NE Albertville, MN 55301-0131 120 South Sixth Street Suite 2507 Minneapolis, MN 55402-1800 (612) 333-9177 Fax: (612) 349-5230 16655 West Bluemound Road Suite 290 Brookfield, WI 53005-5935 (414) 782-8222 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345-8062 Fax: (913) 345-1770 1800 K Street NW Suite 831 Washington, DC 20006-2200 (202) 466-3344 Fax: (202) 223-1362 Re: Recommendations for the Issuance of: $245,000 General Obligation Improvement Bonds, Series 1993E $175,000 General Obligation Wastewater Facility Revenue Refunding Bonds, Series 1993C We respectfully request your consideration of our recommendations for the issuance of the above -named issue according to the terms and conditions set forth in the attached 'Terms of Proposal." These recommendations will discuss each of the issues separately, followed by a discussion of items common to both issues. By issuing these two bond issues at the same time, the City will reduce the cost of issuing the bonds by avoiding duplication of official statement printing costs and rating fees. $245,000 General Obligation Improvement Bonds, Series 1993E The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475 to finance an improvement project in the City. The composition of this issue is as follows: Project Costs: Construction $179,980 Engineering 32,396 Contingencies/Legal _ 10,500 Total Project Costs $222,876 Costs of Issuance 10,560 Capitalized Interest (to 2-1-95) 11,300 Allowance for Discount Bidding _ 1,715 Subtotal $246,451 Less: Rounding Amount _ (1,451) Total Improvement Bond Issue $245,000 Appendix I is a projection of assessment income for project. The assessments are expected to be filed on or before October 1, 1994, for first collection in 1995. The assessments will be City of Albertville, Minnesota October 12, 1993 spread over 3 years in equal annual installments of principal with interest charged on the unpaid balance at a rate of 1.5% over the net interest rate received on the Improvement Bonds. Appendix II is the recommended maturity schedule for the Improvement Bonds. The Improvement Bonds will be dated December 1, 1993 and will mature each February 1 from 1996 through 1998. Columns 1 through 6 show the years and amounts of principal and estimated interest due and payable on the Improvement Bonds. Column 7 shows the capitalized interest which will cover a portion of the interest payment;, on the Improvement Bonds until assessment collections are first available beginning with the August 1, 1995 interest payment. Column 8 shows the net levy required to pay 100% of debt service on the Improvement Bonds, with Column 9 showing the 105% overlevy requirement as set forth by State Statute. The 5% overlevy is a protection to the bondholder and to the City in the event 100% of the expected revenues are not achieved. Column 10 shows the projection of assessment income as developed in Appendix I. The first interest payment due August 1, 1994, and the subsequent February 1, 1995 interest payment will be made from capitalized interest included in the Improvement Bonds. Beginning with the August 1, 1995 interest payment, debt service will be payable from assessment income. Included in the principal amount of the issue is a provision for discount bidding in the amount of $1,715, representing $7 per $1,000 bond. The discount is a means of providing the underwriters with all or part of their working capital and/or a profit for purchasing the bonds and permits them to reoffer the bonds at or close to a par scale. Due to the short maturity length of the issue, we do not recommend the Improvement Bonds be subject to prepayment. The short maturity length of the Improvement Bonds, together with the absence of a call feature, does not allow the City any flexibility should assessments not come in as projected. Any shortfall would need to be paid from a general ad valorem tax levy. In conversations with City personnel, they feel comfortable with the three-year assessment term and expect collections to come in as projected. $175,000 General Obligation Refunding Bonds, Series 1993C The Refunding Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. The proceeds of this issue will be used to refund the 1994 through 2004 maturities of the City's $300,000 General Obligation Revenue Clinic Bonds of 1982, dated September 1, 1982 (the 1982 Bonds"). The 1982 Bonds, which were passed by a referendum, were originally issued to build a medical clinic in the City. The Albertville Clinic was then leased by the Buffalo Clinic which in turn assigned the lease to Twenty -Eight Ten, Incorporated, a subsidiary of Health Central Incorporated. The payment of debt service on the 1982 Bonds was guaranteed by Health Central. The clinic closed in 1991 and Health Central has continued to make debt service payments on the 1982 Bonds. The City is releasing them from the lease and is assuming the remaining debt with the issuance of these bonds. The City plans to use the Albertville Clinic facility as its new City Hall. This is considered a full current refunding as the Refunding Bonds are being issued within 90 days of the March 1, 1994 call date of the 1982 Bonds. Attached as Appendix III is a schedule showing the existing debt service of the 1982 Bonds. On March 1, 1994, the proceeds of the Refunding Bonds will pay the principal and interest due on March 1, 1994 and prepay the 1995 through 1998 maturities of the 1982 Bonds, thereby defeasing the old issue. The interest rates on the 1994 through 1998 maturities of the 1982 Bonds range from 10.45% to 11.00%. We estimate the 1982 Bonds can be refunded at a net interest rate of 4.90%. Page 2 City of Albertville, Minnesota October 12, 1993 The maturity schedule for the Refunding Bonds is attached as Appendix IV. The Refunding Bonds will be dated December 1, 1993 and mature March 1, 1995, through 2004. The Refunding Bonds are extended beyond the 1998 maturity of the 1982 Bonds through 2004 in an effort to reduce the overall cost to the City. The City will make a 1993 levy which will pay the September 1, 1994 interest payment and the March 1, 1995 principal and interest payment. This cycle will continue for the life of the Refunding Bonds. Included in the principal amount of the issue is a provision for discount bidding in the amount of $3,000, representing $17 per $1,000 bond. As with the Improvement Bonds, we do not recommend the Refunding Bonds be subject to prepayment. Common To Both Issues Federal Rebate - Arbitrage All tax-exempt bonds are subject to federal arbitrage regulations. The "final" arbitrage regulations were published in June 1993. One of the requirements included rebating arbitrage profits to the U.S. Treasury. Generally speaking, all arbitrage profits (the yield difference between the earnings on the investments and the yield on the obligations) must be rebated to the Treasury. These issues are treated separately for purposes of exemption from federal rebate requirements. The Improvement Bonds will meet the small issuer exemption test as the City will not issue more than $5 million of tax-exempt obligations during calendar year 1993. The 1982 Bonds have a final maturity in 1998, and the Refunding Bonds mature through 2004, thus extending the average maturity and causing the bonds maturing 1999-2004 to be subject to rebate requirements. However, in this case too, the small issuer exemption is met. Prior to the 1993 final arbitrage regulations the small issuer exemption also exempted any debt service funds from rebate requirements. The 1993 regulations changed that so only bona fide debt service funds are exempt from rebate. A bona fide debt service is defined as a fund for which there is an equal matching of revenue to debt service expense with a carry over permitted equal to the greater of the investment earnings in the fund during that year or 1 /12 of the debt service of that year. If the City receives substantial prepayments of special assessments on the Improvement Bonds, the yield on those funds will have to be restricted to the yield on the Improvement Bonds. The City will also need to be aware of over -levies in the Clinic bond fund. Economic Life of Financed Facilities The 1993 "final' arbitrage regulations brought all tax-exempt issues into the calculation of "economic life." Previously this requirement was only for private activity bonds. The intent of this requirement is that the Treasury does not want bonds outstanding longer than is necessary, thus creating more tax-exempt bonds in the marketplace than are needed. The general safe harbor for assuring that bonds comply with the regulations is if the average maturity of the bonds does not exceed 120% of the economic life of the financed facilities. Since the Improvement Bonds are being issued for street and utility improvements which, under the Treasury guidelines, have an economic life of 20 years, the Improvement Bonds are in compliance with this regulation. In regards to the Refunding Bonds, buildings have an economic life of 50 years, whereby 120% equals 60 years. The average maturity of the Refunding Bonds is 6.11 years and the time which has elapsed from the date of issuance of the 1982 Bonds (September 1, 1982) to the date of issuance of the new Refunding Bonds Page 3 City of Albertville, Minnesota October 12, 1993 (December 1, 1993) is 11.25 years, for a total of 17.36 years. Therefore, the Refunding Bonds are also in compliance with these regulations. Federal Reimbursement Regulations The Federal Treasury has enacted reimbursement regulations to regulate issuers who wish to issue tax-exempt bonds to recover costs of prior expenditures. The reimbursement regulations require that if the issuer proposes to reimburse itself for expenses they paid prior to receipt of bond proceeds, it must have made a declaration of that intent within 60 days of the actual payment of the expense. There are exemptions for architectural and engineering fees and miscellaneous start-up costs. It is our understanding there will be some reimbursement for the Improvement Bonds and that the City will take whatever actions are necessary to comply with the federal reimbursement regulations in regards to the Improvement Bonds. Bank -Qualified Obligations The Tax Reform Act also restricts the ability of banks to deduct tax-exempt interest as a carrying expense under certain circumstances in calculating their tax liability. Since the City will not issue more than $10,000,000 of tax-exempt obligations in 1993, these bonds will be designated as "qualified obligations." This qualification will help the marketability of the issue. Sale Process The 1991 Legislature amended bond sale procedures to permit the non-public issuance of obligations if the issuer retains an independent financial advisor. Springsted Incorporated remains a proponent of competitive bidding but sees some advantages to the new legislation. We recommend competitive negotiated sales where all bidders reasonably expected to compete for the issues are notified of the pending sales, and competitive bids are received but no legal advertisement is published. The issuer benefits from eliminating the publication costs and any risk of having an issue delayed due to the time required for publication or the inadvertent failure of a legal notice to be published. In our ever changing industry published notices are no longer a critical source of information for bidders. Other than for publication, you should see no change in your issuing procedures or in the bidding results. Springsted Incorporated has joined with Capital Guaranty Insurance Company, a municipal bond insurer, to offer a surety bond service to underwriters in lieu of putting up a good faith check in order to bid on the bonds. The program is called "Sure -Bid" and we have allowed for its use in the Terms of Proposal, attached to these recommendations. We believe that the use of this bidding option will help garner more bids for the bond sale, since it has the potential to make it easier for an underwriter to bid. There is no cost to the City for this service and Springsted Incorporated does not have a financial interest in the use of Sure -Bid. We recommend these bonds be offered for sale on Monday, November 15, 1993 with proposals received at the offices of Springsted Incorporated at 10:30 A.M. Proposals will be verified for accuracy and the computations resulting in the final savings for the Refunding Bonds will be completed. Those results and our recommendations will be presented to the City Council for consideration of award at 7:30 P.M. the same evening. Respectfully submitted, SPRINGST D Incorporated inTiih Page 4 APPENDIX I City of Albertville, MN G.O. Improvement Bonds, Series 19938 $245,000 PROJECTED ASSESSMENT INCOME Improvement Projects Filing Date: 10/ 1/1994 Filing Collect Interest Year Year Principal @ 5.700% Total ----------------------------- ----- Prepared October 7, 1993 By SPRINGSTED Incorporated 1994 1995 81,667 17,485a 99,152 1995 19% 81,667 9,310 90,977 1996 1997 81,666 4,655 86,321 TOTALS 245,000 31,450 276,450 a) Includes interest from filing date to 12/31/1995. Page 5 APPENDIX II City of Albertville, Minnesota G.O. Improvement Bonds, Series 19938 $245,000 Dated: 12. 1-1993 Mature: 2- 1 First Interest: 8- 1.1994 Total Capital - Year of Year of Principal ized Levy Mat. Principal Rates Interest & Interest Interest (1) (2) (3) (4) (5) (6) (7) 1993 1995 0 3.50% 11,279 11,279 11,300 1994 1996 85,000 3.75% 9,668 94,668 0 1995 1997 80,000 4.00% 6,480 86,480 0 1996 1998 80,000 4.10% 3,280 83,280 0 TOTALS: 245,000 30,707 275,707 11,300 Prepared October 8, 1993 By SPRINGSTED Incorporated Net Projected Cumulative Levy 105% Assessment Net Cumulative Required of Total Income Requirement Surplus (8) (9) (10) (11) (12) 0 0 0 0 21 94,668 99,401 99,152 228 0 86,480 90,804 90,977 0 173 83,280 87,444 86,321 950 0 264,428 277,649 276,450 1,178 Bond Years: 770.83 Annual Interest: 30,707 Avg. Maturity: 3.15 Plus Discount: 1,715 Avg. Annual Rate: 3.984% Net Interest: 32,422 T.I.C. Rate: 4.219% N.I.C. Rate: 4.206% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Page 6 APPENDIX III City of Albertville., Minnesota G.O. Rev. Clinic Bonds of 1982 Existing Debt Service Prepared: 09/04/92 By SPRINGSTED Incorporate: Date Principal Rate Interest Semi -Annual Annual 03/01/94 25,000.00 10.45001 8,616.25 33,616.25 33,616.25 09/01/94 7,310.00 7,310.00 03/01/95 30,000.00 10.6000 7,310.00 37,310.00 44,620.00 09/01/95 5,720.00 5,720.00 03/01/96 30,000.00 10.7500 5,720.00 35,720.00 41,440..00 09/01/96 4,107.50 4,107.50 03/01/97 35,000.00 10.9000 4,107.50 39,107.50 43,215.00 09/01/97 2,200.00 2,200.00 03/01/98 40,000.00 11.000o 2,200.00 42,200.00 44,400.00 Totals 160,000.00 47,291.25 2-07,291.25 207,291.25 Bond Years: Avg. Mat..: 395.00 All lower calculations Refunded Bonds Only NIC 2.469 are made from the date Avg. Mat..: 2.88 ....... . 10.8820 of the refunding bonds NIC....... . 10.889 Page 7 APPENDIX IV City of Albertville, Minnesota Prepared October 8, 1993 $175,000 G.O. Refunding Bonds, Series 1993C By SPRINGSTED Incorporated Refunds G.O.-Rev- Clinic Bonds of 1982 Dated: 12- 1-1993 Mature: 3- 1 First Interest: 9- 1-1994 Total Year of Year of Principal 105% Levy Mat. Principal Rates Interest & Interest of Total (1) (2) (3) (4) (5) (6) (7) 1993 1995 15,000 3.50% 9,595 24,595 25,825 1994 1996 15,000 3.75% 7,151 22,151 23,259 1995 1997 15,000 4.00% 6,588 21,588 22,667 1996 1998 15,000 4.15% 5,988 20,988 22,037 1997 1999 15,000 4.30% 5,365 20,365 21,383 1998 2000 20,000 4.50% 4,720 24,720 25,956 1999 2001 20,000 4.55% 3,820 23,820 25,011 2000 2002 20,000 4.70% 2,910 22,910 24,056 2001 2003 20,000 4.85% 1,970 21,970 23,069 2002 2004 20,000 5.00% 1,000 21,000 22,050 TOTALS: 175,000 Bond Years: 1,068.75 Avg. Maturity: 6.11 Avg. Annual Rate: 4.595% T.I.C. Rate: 4.909% 49,107 224,107 235,313 Annual Interest: 49,107 Plus Discount: 3,000 Net Interest: 52,107 N.I.C. Rate: 4.876% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. Page 8 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $245,000 CITY OF ALBERTVILLE, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993B Proposals for the Bonds will be received on Monday, November 15, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February in the years and amounts as follows: 1996 $85,000 1997 $80,000 1998 $80,000 OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefitted property. The proceeds will be used to finance an improvement project within the City. TYPE OF PROPOSALS Proposals shall be for not less than $243,285 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $2,450, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is Page 9 required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1 /8 of 1 %. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. Page 10 For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 15 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 18, 1993 BY ORDER OF THE CITY COUNCIL /s/ Linda Houghton Clerk -Treasurer Page 11 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $175,000 CITY OF ALBERTVILLE, MINNESOTA GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993C Proposals for the Bonds will be received on Monday, November 15, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on March 1 and September 1 of each year, commencing September 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature March 1 in the years and amounts as follows: 1995 $15,000 1999 $15,000 2002 $20,000 1996 $15,000 2000 $20,000 2003 $20,000 1997 $15,000 2001 $20,000 2004 $20,000 1998 $15,000 OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund the 1994-2004 maturities of the City's $300,000 General Obligation Revenue Clinic Bonds of 1982, dated September 1, 1982. TYPE OF PROPOSALS Proposals shall be for not less than $172,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $1,750, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Page 12 Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1 /8 of 1 %. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment, Page 13 OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 15 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 18, 1993 BY ORDER OF THE CITY COUNCIL /s/ Linda Houghton Clerk -Treasurer Page 14 CITY OF ALBERTVILLE FINANCIAL STATEMENT September 30 - October 13, 1993 Beginning Cash Balance September 30, 1993 INCOME (Sept. 30 - Oct. 13) Building Permits 11,597.53 Donation (Jaycees) 300.00 Donation (Jaycees) 150.00 Interest (Sept.) 488.60 Liquor Licenses 2,200.00 Loan Payment (FraserSteel) 585.27 Reimburse (Pysk's 5th) 40,395.99 Sewer Penalties 35.57 Sewer Receipts 3,677.42 Special Assessments 10,397.39 Storm Water Penalties 12.57 Storm Water Receipts 912.23 Title Search 70.00 TOTAL INCOME EXPENSES (Sept. 30 - Oct. 13) Check #'s 7841-7884 (approved 10/4/93 271,250.78 PAYROLL 9/22 - 10/5 Check # 7885 - Ann 495.83 Check # 7886 - Linda 784.58 Check # 7887 - Ken 899.95 Check # 7888 - Mike 584.79 Check # 7889 - PERA 345.21 TOTAL EXPENSES 70,822.57 271,361.14 $340,793.50 Ending Cash Balance October 13, 1993 $137,254.93 INVESTMENTS: CD #8222 (Lions) - matures 10/18/93 @ 2.65% CD #8579 - matures 12/28/93 @ 3.0% CD #8925 - matures 12/1/93 @ 2.65% CD #8807 - matures 3/29/94 Piper-Jaffray Investments TOTAL INVESTMENTS 31,247.53 159,579.97 108,292.02 361,523.99 471,568.29 $1,132,211.80 CITY OF ALBERTVILLE BILLS TO BE PAID OCTOBER 18, 1993 Check No. Vendor Reason --Amount 7890 Albertville Auto Parts Chalker Repair 21.02 7891 Albertville Queen Cmtee. Signs 1.50.00 7892 Buffalo Bituminous Pymt #4 1992-13 29,955.68 7893 Century Labs Cleaner 18.69 7894 Crow River Rental Repair Weed Whip 58.46 7895 Farris, Jim Temp. Help 5.00 7896 Feed -Rite Controls Sewer Testing 142.O0 7897 Fehn, Dennis Excavating Alley/Park 146.40 7898 FundBalance Update PR Software 95.00 7899 Gopher State Locates 13.50 7900 L.M.C.I.T. Worker's Comp Ins 6,156.00 7901 LaPlant Sanitations Sept Service 85.71 7902 Meyer-Rohlin Sept Services 20,855.71 7903 Minnegasco Sept. 52.85 7904 Montgomery Watson Otsego Creek 1,130.00 7905 Monticello Animal Control Sept. Animal Cont. 46.50 7906 Newman Traffic Signs City Signs 213.00 7907 NSP C.H. 110.13 Sign 7.68 Park 127.78 Lift Sta 85.64 334.58 7908 NW Associated Cnsltnts. Sept services 506.02 7909 P.E.R.A. Life Ins. Ann/Linda Ins 24.00 7910 Pats 66 Sewer -gas 38.54 Park -gas 38.54 Sts-gas 38.53. 115.61 7911 Pepsi Cola Co. 7912 Postmaster, U.S. 7913 Roto-Rooter 7914 Sentry Systems, Inc. 7915 St. Michale Drug 7916 St. Michael Floral 7917 W.C. Treasurer 7918 Wright Recycling Rent 10.65 Postage -meter 300.00 Jet lines 187.50 Park Alarm 57.51 Film & Dvlpmt-WW 15.61 Plant for Otsego C.H. 37.28 Tax Capacities 12.00 Sept. Recycling 435.00 TOTAL $61,181.28 10i1-4/9Z 15:50 HOLMES & GRAUEN NO.008 002 CITY OF ALBERTVILLE, MINNESOTA RESOLUTION NO. /' V - - ,s-- DECLARING THE OFFICIAL INTENT OF THE CITY OF A._LBERTVILLE TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. 1 1.150-2 providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City expects to incur certain expenditures which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE (THE "CITY") AS FOLLOWS: 1. The City reasonably intends to make expenditures for the project described in Exhibit A (the "Project") , and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. The City Clerk -Treasurer is authorized to designate appropriate additions to Exhibit A in circumstances where time is of the essence, and any such designation shall be reported to the Council at the earliest practicable date and shall be filed with the official books and records of the City as provided in Section 3. 3. This resolution is intended to constitute a declaration of official intent for purposes of Treas. Reg, § 1.150-2 and any successor law, regulation, or ruling. Approved by the City Council of the City of Albertville this day of 1993. Attest: City Clerk -Treasurer WM9952 AL141-17 CITY OF ALBERTVILLE, MINNESOTA Mayor r A 1 ✓J/ lei 7J 1J• J1 P1VL1'IC7 C. iaRt7�/CI'1 I'IU. ✓J✓JO J✓J� Extract of Minutes of Meeting of the City Council of the City of Albertville, Wright County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was held at the City Hall in the City on Monday, October 18, 1993, commencing at 7:30 P.M. The following members of the Council were present: and the following were absent: The following resolution was presented by Councilmember who moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $175, 000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993C BE IT RESOLVED By the City Council of the City of Albertville, Wright County, Minnesota (City) as follows: 1. It is hereby determined that: (a) the City is authorized by ;Minnesota Statutes, Chapter 475 (Act) and Section 475.67, Subdivision 31 of the Act to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; DJX59973 AL141-17 10%1a; ? 15: E1 HOLMES & GP.AVE`I HO. 003 004 (b) subdivision 4 of the Act permits the sale of refunding obligations during the six month period prior to the date on which the obligations to be refunded may be called for redemption; (c) it is necessary and desirable to reduce debt service costs that the City issue $175,000 General Obligation Refunding Bonds, Series 1993C (Bonds) to refund certain outstanding general obligations of the City; (d) the outstanding bonds to be refunded (Refunded Bonds) consist of the $300, 000 General Obligation Revenue Clinic Bonds of 1982, dated September 1, 1982, of which $160, 000 in principal amount is currently callable on March 1, 1994. 2. To provide moneys to refund the Refunded Bonds, the City will issue and sell Bonds in the amount of $172,000. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $3, 000. The excess of the purchase price of the Bonds over the sum of $172, 000 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds . The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: DM9973 u141-17 I - G.) Q, ur r-nV G! 1 NU. U' ✓JO VJQ THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS., TERMS OF PROPOSAL $175,000 CITY OF ALBERTVIL.LE, MINNESOTA GENERAL OBUGATION REFUNDING BONDS, SERIES 1993C Proposals for the Bonds will be received on Monday, November 15, 1993, until 10:30 A.M., Central Time, at the offices Of Springsted Incorporated, 86 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day, DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on March 1 and September 1 of each year, commencing September 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of $5,000 oath, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and Interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature March 1 in the years and amounts as follows: 1995 $15,000 1999 $15,000 2002 $20,000 1996 $15,000 2000 $20.000 2003 $20,000 1997 $15,000 2001 $20,000 200$20,000 1998 $15,000 OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund the 1994-2004 maturities of the City's $300,000 General Obligation Revenue Clinic Bonds of 1982, dated September 1, 1982. TYPE OF PROPOSALS Proposals shall be for not less than $172,000 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certlfled or cashier's check or a Financial Surety Bond In the amount of $1,750, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an Insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Sprfngsted incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. if the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit Its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as Instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no Interest will accrue to the purchaser. In the event the purchaser falls to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be In Integral multiples of 5/100 or 1 /8 of 1 %. Rates must be in ascending order. Bonds of the some maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true Interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (1) waive non -substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS if the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. 10/14/9-3 15: 5:3 HOLMES & GRAVEN N0. 006 007 OFFICIAL STATEMENT The City has authorizod the preparation of an Official Statement containing pertinent Information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2.12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser Is referred to the Financial Advisor to the City, Springsted Incorporated, 9S East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest ratcs of the Bonds, together with any other information required by law, shall constitute a "Finai Official Statement" of the City with respect to the Bonds, as that term Is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 15 copies of the Official Statement and, the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (I) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 18, 1993 BY ORDER OF THE CITY COUNCIL /s/ Linda Houghton Clerk -Treasurer 10/14i9S 15:54 HOLMES I GPAUEN NO.008 006 3. Springsted Incorporated is authori2ed and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:30 p.m. on Monday, November 15, 1993, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. DJX59973 AL141-17 STATE OF MINNESOTA ) COUNTY OF WRIGHT } } CITY OF ALBERTVILLE ) I, the undersigned, being the duly qualified and acting Clerk -Treasurer of the City of Albertville, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, October 18, 1993, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $175, 000 General Obligation Refunding Bonds, Series 1993C of the City. WITNESS My hand as City Clerk -Treasurer and the corporate seal of the City this _ day of 1993. (SEAL) DJX39973 u1a1-17 City Clerk -Treasurer City of Albertville, Minnesota 10i14/9--15:55 HOLMES & GRAVEN NO. 008 010 Extract of Minutes of Meeting of the City Council of the City of Albertville, Wright County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Albertville, Wright County, Minnesota, was held at the City Ball in the City on Monday, October 18, 1993, commencing at 7:30 P.M. The following members of the Council were present: and the following were absent: *** The following resolution was presented by Councilmember who moved its adoption: RESOLUTION NO. -g5- RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $245, 000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993B BE IT RESOLVED By the City Council of the City of Albertville, Wright County, Minnesota ( City) as follows: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act) ; Project Designation & Description: DJX59967 ALIAI-17 Total Project Cost , -1 ter, a Q1MMVCI1 IYV. vvv �yy Local Improvements Construction Engineering Contingencies / Le gal Total Project Costs Costs of Issuance Capitalized Interest (to 2-1-95) Allowance for Discount Bidding Subtotal Less: Discount (Rounding Amount) Total Improvement Bond Issue $179,980 32,396 10,500 222,876 10,580 11,300 1,715 24s,451 1,451 $245,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $245,000 General Obligation Improvement Bonds, Series 1993E (Bonds) pursuant to the Act to provide financing for the Improvements. 2. To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $243, 285. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be Issued in the amount of S1, 715, The excess of the purchase price of the Bonds over the sum of $243, 285 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms of Proposal: D K39967 AL141-17 I I ` 10/14/93 15:55 HOLMES & GRAVEN N0.00e 01= THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $246,000 CITY OF ALBERTVILLE, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 19938 Proposals for the Bonds will be received on Monday, November 15, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be bythe City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued In the denomination of $6,000 each, or In Integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February in the years and amounts as follows: 1996 $85,000 1997 $80,000 1998 $80,000 OPTIONAL REDEMPTION The Bonds will not be subject to payment In advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefitted property. The proceeds will be used to finance an improvement project within the City. TYPE OF PROPOSALS Proposals shall be for not less than $243,285 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $2,450, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is SOW 10/14/93 15:57 HOLMES &'GRAVEN NO. OOS 013 required to submit its Deposit to Springsted Incorporated In the form of a certified or cashier's check or wire transfer as Instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit Is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no Interest will accrue to the purchaser. In the event the purchaser falls to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Antes shall be in Integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the data of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true Interest cost MC) basis. The City's computation of the Interest rate of each proposal, In accordance with customary practice, will be contrciling. The City will reserve the right to: (i) waive non -substantive informallties of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (Ili) reject any proposal which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. 10i14i93 15:58 HOLMES & GRAVEN N0.008 014 ' For copies• of the Official Statement or for any additional Information prior to sale, any prospective purchaser Is referred to the Financial Advisor to the City, Springsted Incorporated, 86 East Seventh Place, Suite 100, Saint Paul, Minnesota 56101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other Information required by law, shall constitute a 'Final Official Statement" of the City with respect to the Bonds, as that term is defined In Rule 15c2-12. By awarding ' the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 15 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal Is accepted by the City (1) It shall accept such designation and (11) It shall enter into a contractual relationship with ail Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated October 18, 1993 BY ORDER OF THE CITY COUNCIL /s/ Unda Houghton Clerk -Treasurer 10i14i93 15:58 HOLMES & GRAVEN NO. 008 015 Y 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:30 p.m. on Monday, November 15, 1993, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. t- lv WM9967 AL141-17 STATE OF MINNESOTA ) COUNTY OF WRIGHT } CITY OF ALBERTVILLE j I, the undersigned, being the duly qualified and acting City Clerk -Treasurer of the City of Albertville, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, October 18, 1993, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $243 , 000 General Obligation Improvement Bonds, Series 1993B of the City. WITNESS My hared as City Clerk -Treasurer and the corporate seal of the City this day of , 1993. ( SEAL ) DM9967 AL141-17 City Clerk -Treasurer City of Albertville, Minnesota ORDINANCE NO. 1993-14 AN ORDINANCE ESTABLISHING THE ANNUAL BUDGET CALENDAR TO BE USED AS PART OF THE BUDGET PROCESS The City of Albertville does ordain: Section 1. Authorization. Pursuant to Minnesota Statutes for the submission of Budget. The City Council requires the city budget calendar as the required time line to meet its need and those of outside agencies. Section 2. Budget Calendar. The following represents the dates to be used as the official budget calendar. (a) June 1 - 10 The city clerk has the responsibility for preparing the budget, distributing budget calendar, worksheets and notifying departments to begin preparing the next year's budgets. (b) June 10 - July 5 Department heads/supervisors prepare their budgets and the city clerk confers with them. (c) July 5 Department heads/supervisors submit department budgets to the city clerk. (d) July 5 - 16 The city clerk assembles department budgets into the preliminary city budget. (e) July 16 The city clerk submits the preliminary budget to the City Council. City must give public notice that the Council will hold a budget hearing for discussion of all items in the budget. (f) July 16 - August 15 The City Council considers the preliminary budget, confers with department hears/supervisors, discusses proposed taxes and estimated revenues and makes preliminary budget decisions. (g) August 1 The City receives information from the State of Minnesota on its levy limits and the amount of local governmental monies in the form of aid receipts for the next year. Cites will also receive information on any credits they can expect to receive. Cities have a certain number of days from the time they receive notice of their certified amount to file objections with the appropriate state agency as to the accuracy of the amounts to be paid. Dates and types of aids and credits change from time to time and will be determined by Minnesota law. (h) August 16 - September 1 The City Council holds the preliminary public budget hearing on the proposed budget and adopts the same. Results of the hearing are furnished to the county auditor with proposed levy amounts to be used in preparation of Truth in Taxation statements to be mailed at a later date. (i) November 10 County Auditor sends out to each parcel property owner the Truth in Taxation statements by first class mail disclosing the results of the budget process and the proposed property taxes resulting therein. (j) November 15 - December 20 The City Council holds public hearings on the final budget proposals/ Council adopts the budget and resolutions levying taxes to cover the final budget/ (k) December (five working days after December 20) The City posts the adopted budget in the principal municipal building and the city publishes a summary budget statement in an authorized legal newspaper. Within five working days after the December 20th adoption of final budget, the City shall furnish the County Auditor with a final certified copy of the City Council resolution levying taxes. The City should submit the appropriate form(s) to the State of Minnesota as required for the Truth in Taxation compliance. (1) January 1 Implementation of calendar year budget. Section 3. Budget Check -list for Council. After the City clerk has prepared the preliminary budget, the Council must assume full responsibility for reviewing and approving it its final form. In this review, the Council should consider the following questions. (a) Does the budget meet the needs of the community? Are there some services which the City should reduce or eliminate to provide funds for new programs or for the expansion of existing programs? (b) Does it provide proper balance between activities, especially between more essential and less essential services? (c) Will the work programs assure adequate standards or service? (d) Is the proposed budget a sound and honest one? Are revenue estimates realistic? Does it include all expenditures and conceivable contingencies? Does it contain a contingency appropriation for emergencies? (e) Is the budget economical, providing the greatest value per dollar? (f) Is the budget consistent with ability and willingness of the citizens to support it? (g) Does the budget discharge the City's responsibility for the future? Is it consistent with the City plan as with other long-term policies for the development of the community and a five year capital improvement program? The Council should consider these questions after tentatively agreeing on the budget as a whole. Section 4. Effective Date. The ordinance will become effective upon publication in the official newspaper. PASSED by the City Council of the City of Albertville this day of , 1993. Michael Potter, Mayor ATTEST: Linda Houghton, Clerk Published in the Crow River News on ORDINANCE NO. 1993-15 AN ORDINANCE ESTABLISHING AFORMAL CITY ORGANIZATIONAL CHART The City of Albertville does ordain: Section 1. Authorization. Pursuant to Minnesota Statute 412.111. The City Council requires the city to operate in accordance with the organizational chart provided herein. Section 2 Organizational Chart. The City Council ios formalizing the city organization structure to reflect the necessary operating requirements and to specify the line and staff relationships for an efficient, effective organization. CITITMt CITY COUNCIL CITY BOAXOS Lssrm roxh CITY AND mlNISSIDNS I ►�t7CtI... Tf i CONSIB.SANiS CITY � D[VII�Pf1GtL ASSZSSOI p�CIINLi1 SArETYC cros mi/ nu.� raclAi. auce�r rIu � naoacamYr faM1D1ITY i ECTS _--% POLICL ANIMAL rIAiYHCI pUIIIC /COOL COIfIlO l__j PASSED by the City Council of the City of Albertville this day of , 1993. Michael Potter, Mayor ATTEST: Linda Houghton, Clerk Published in the Crow River News on RESOLUTION #1993-36 RESOLUTION ON UNFUNDED MANDATES WHEREAS, unfunded mandates on local governments have increased significantly•in recent years; WHEREAS, federal and state mandates do not consider local circumstances, costs, or capacity. and subject cities to civil or criminal penalties for noncompliance; WHEREAS, federal and state burdens on local governments force cities to impose a combinat-.or. ,-f higher 1- =al -a--,es and fees -n local taxpayer- _? _ . -� . er!I WHEREAS gone-size-fi ==_ _ _ rr.� __ r -� - -=r� =: amp- -1= overly spec_ '! alternatives T,a_- WHEREAS. directly aff WHEREAS the National and then hey_ e uragN 'zwma�er� _�xu e hr horde: xr.d inflexibility _f unfunded mandate_nn -n-a wh a Na`.-=�_ Unfunded Mandates Dav on October 199=: NOW, THEREFORE, BE IT RESOLVED that -he Cii—y of Albert--_ endorses the League's efforts and those of the naticnai League v� Cities and wi 11 full inf_-)rm our citizens about the impact of s a-? and federal mandatas on our local spending and rases BE IT FURTHER RESOLVED that `he ;ity of Albert„-:iie and rS s this year of mandate awareness beginning on October by informing and working with members of our Congressional delegation and our state legislators to educate them about th- impact of federal and state mandates and the actions necessary to reduce these burdens on ou_ PASSED 18th day of C-- - -- Linda Houtght �: - League of Minnesota Cities October _ 3490 Lexington Avenue North St. Paul, 34N 55126-8044 01?; 490 5600 TO: Mayor:;. Ivlanagers, :)nd Clerks FRG _..: Swaps0n, LA _ ?re sident ;ZF.. i�c:fu:,::;- .a�ciates Day The 1_eag:te .s collahcrating with the -National L ague of Cities and other associations representing :ocai ,governi: ent in an impr,rtant public education campaign to explain the impact the Dramatic increase in the mandates imposed on cities by the federal government. The e,for Wil;' begic: _n Wadnesday. t,ctcber 27. "Unfunded Mandates Dav" in cities rim ducate citizens and iawmakers about how ..:f.lnc ed `c r_c -fate mandates affect cities. T. have enclosed information to help your _ ar r: pirate. The r;aterials have suggestions to help you draw attention to the ' rancia;a idrr:irist.ati;z burdens of unfunded state and federal mandates on local budgets and ta:as _�rc:jur:ge y our city to take the following steps prior to and on October 27, and i� roughout the coming year: Xdj)t): tine entc_used resolution :)n unfunded mandates at a city council r.tin '?L.: ; O�ctobe- 27. and send/fax a copy to the League if you do. Znciased sampie letter to Fit your city's situation and ;rnd re.r.O �r _ r)F +he Minnesota Congressional Delegation over the :taa�.zr`� ii7ris%ti1rQ, ?-Ovit;s_ one w:Kampie of a Federal and/or state mandate that has a on your ..ity. Send a description of that mandate to A .a� ` n >3t* at the h-MC Vtf#ice by OC'TO$ER 13. include a ;eneral :�_sdripti�3r. ,� f the sees ifc re�t:irement(s); an estimate of the cost to your cit?'•:, and a brief explanation of the impact of the mandate(s) on city )peruni,* s and .':ervncas v ii write 3n editorial about the effects of mandates ra ;i`iec, *�:r :l ci 'l3i `":" (1C"'^-',srapers. T:7e League will send you a different e,iitorial has: ,,,.. paper. Ycu will reed to add some examples of the Model Mandates Fax Letter October 27, 1993 The Honorable U.S. Senate/House of Representatives Washington, D.C. 20510/20515 Dear Senator/Representative: We are writing on behalf of the citizen3'and cpayts of (CITY NAME) asking your help in reduc- ing the burden of unfunded federal ma dates We t9e your action to force a change in the way the federal government considers future madfi4>:;.::.; Today we are beginning a public education campaig€ in our city about what federal mandates are and what they mean to citizens. We intend to mako`elear the real costs that are passed on to our city. Federal mandates directly affect the citizens:.Qf our`ci`ties and towns. Legislative and regulatory requirements to perform duties without'eons ration of local priorities, costs, or possible alterna- tives put an unfair burden on taxpayers By igoring other pressing local needs or priorities, federal mandates take decision making powedORkmaMe hands of local officials. Too often, federal rules and regulationg.I procedures or facilities where less costly change. We want you to take a leadership role n<tu federal mandates adopted by our city council. reduce stormwater and drinking water mand& report that no future law or regulation `: � and without the federal government picki' Please join our campaign to end partnership to serve our citizens. Sincerely, impose unrealistic time frames, and specify light be just as effective. It is time for that to the tide. Enclosed is a copy of a resolution on uld like to report that Congress will act to e this session adjourns. We would like to I without close consultation with local leaders, share of any costs. and to reintroduce government as a CONGRESSIONAL DELEGATION ADDRESSES ARE ON THE OPPOSITE SIDE