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2012.07.24 Council Meeting Packet CITY OF CRYSTAL City Council Meeting Packet for Tuesday, July 24, 2012 MEETING SCHEDULE Time Type of Meeting Place 6:30 p.m. EDA Work Session Conference Room A 7:00 p.m. Regular City Council Meeting Council Chambers Immediately following the Regular City Council Meeting Council Work Session to discuss: · Shoreline Management Policy · Twin Lake Fishing Pier · DeCola Ponds · Minnesota GreenStep Cities Program Conference Room A THE CITY MANAGER’S COMMENTS ARE BOLDED . Crystal City Council Meeting Preliminary Agenda July 24, 2012 7:00 p.m. Council Chambers I. CALL TO ORDER, ROLL CALL, AND PLEDGE OF ALLEGIANCE II. ACKNOWLEDGEMENTS 1. Mayor Bowman will acknowledge the following donations to the Crystal Police Department for the 2013 funding of a future canine unit and miscellaneous program expenses: a. $12,000 from Del Monte Foods; b. $500 from West Metro Fire-Rescue District Firefighters Relief Association; c. $500 from Cash-N-Pawn International; d. $50 from Christopher Schaffer; and e. $25 from Floyd and Janice Monroe. 2. Mayor Bowman will acknowledge the following donations for the Crystal Airport Open House to cover event expenses: a. $1,100 from Metropolitan Airports Commission; and b. $250 from Chester Bird American Legion #523. 3. Mayor Bowman will acknowledge a $7,500 donation from VFW Post 494 for the Crystal Frolics. III. COUNCIL MEETING MINUTES The Council will consider the minutes from the following meetings in a single motion: a. The Regular City Council Meeting from July 10, 2012; and b. Two Council Work Sessions from July 10, 2012. IV. CONSENT AGENDA The Council will consider the following items, which are routine and non-controversial in nature, in a single motion: 1. Approval of the list of license applications submitted by the City Clerk to the City Council, a list that is on file in the office of the City Clerk; 2. Approval of disbursements over $25,000 submitted by the Finance Director to the City Council, a list that is on file in the office of the Finance Director; and 3. Adoption of a resolution amending the 2012 Major Building Replacement Fund Budget for Public Works Facility Code Compliance Study. Crystal City Council Meeting Agenda July 24, 2012 Page 2 of 3 V. OPEN FORUM (Open forum is a time for individuals in the audience to address the Council on subjects not on the regular Council agenda. Individuals are asked to step up to the podium and speak clearly into the microphone. You are allowed 3 minutes to make your comments. The Council will not take action on items discussed during open forum; however, the Council may add the item to a future meeting agenda and ask city staff for follow-up.) VI. REGULAR AGENDA 1. The Council will consider a presentation by Bill Morris from Decision Resources on the 2012 community survey. The Council conducts a community survey every 5 years; the last one was done in 2007. Bill Morris and Peter Leatherman of Decision Resources will be at the July 24 meeting to present the results of the 2012 community survey. No action is necessary. 2. The Council will consider a resolution awarding the sale of $2,635,000 General Obligation Improvement Bonds, Series 2012A; fixing their form and specifications; directing their execution and delivery; and providing for their payment. (Project No. 2011-12; Phase 12 Forest North Street Reconstruction) Earlier this summer, the Council authorized the sale of bonds to pay for costs associated with Phase 12 of the street reconstruction program. Finance Director Charles Hansen and a representative of Springsted will be at the July 24 meeting to present the results of the bond sale and to recommend an award. 3. The Council will consider a resolution commending Police Chief John Banick. Chief Banick is retiring from law enforcement and as Crystal Police Chief on August 3. Recommend approval of the resolution. VII. INFORMATION AND DISCUSSION a. The next City Council Meeting will be at 7:00 p.m. on Monday, August 6 in the Council Chambers at City Hall. b. The next Crystal Business Association meeting will be held on Wednesday, August 15 at 8:30 a.m. at a location to be determined hosted by Catherine Flaherty of Money Mailer. c. Upcoming events in the City include: · The Crystal Frolics are at Becker Park from July 26 – 29. For more information and an event schedule visit the Crystal Frolics website at www.crystalfrolics.org · MN Night to Unite is Tuesday, August 7; the deadline to register your neighborhood in this event is July 27. Log onto the city’s website to learn more at www.crystalmn.gov Crystal City Council Meeting Agenda July 24, 2012 Page 3 of 3 VIII. ADJOURNMENT IX. MEETING SCHEDULE ON JULY 24, 2012 Time Type of Meeting Place 6:30 p.m. EDA Work Session Conference Room A 7:00 p.m. Regular City Council Meeting Council Chambers Immediately following the Regular City Council Meeting Council Work session to discuss: · Shoreline Management Policy · Twin Lake Fishing Pier · DeCola Ponds · Minnesota GreenStep Cities Program Conference Room A Have a great weekend; see you at Tuesday’s meeting! CONSENT AGENDA CONSENT AGENDA #1 Page 1 of 2 APPLICATIONS FOR CITY LICENSE July 24, 2012 CARNIVAL WITH GAMES Praise Christian Center 4120 Douglas Dr N Crystal, MN 55422 (one-day event on 8/15/12) GAS INSTALLER Appliance Installers of MN Inc 14105 Rutgers St NE Prior Lake, MN 55372 Assured Heating, A/C & Refrigeration Inc 13571 Balsam Ln N Maple Grove, MN 55327 E.L.K Mechanical HVAC Inc 6361 Sunfish Lake Ct, #100 Ramsey, MN 55316 Glowing Hearth & Home 100 Eldorado Dr Jordan, MN 55352 Key Metalcraft Inc 8600 Queen Ave S Bloomington, MN 55431 Peak Heating & Cooling Inc 7801 Park Dr, Suite B Chanhassen, MN 55317 Pinnacle Plumbing 28995 Linden Ave Lindstrom, MN 55045 LIQUOR – TEMPORARY ON-SALE LICENSE Volunteers of America (VOA) Crystal Care Center, 3245 Vera Cruz Ave N, Crystal, MN 55422 (one-day event to be held 9/13/12) PLUMBER American Eagle Plumbing Inc 1113 Madison Ave SW Isanti, MN 55040 AT Plumbing 15800 Eland St NW Ramsey, MN 55303 Barnes Plumbing 3923 Washington Ave N Minneapolis, MN 55412 Dean Prof Plumbing Inc 5392 Quam Ave NE St Michael, MN 55376 Galaxy Mechanical 4920 173 rd Ave NE Ham Lake, MN 55304 Nowthen Plumbing Inc 19960 Ferret St NW Elk River, MN 55330 Jerry Anderson Plumbing 9506 Stanley Ave S Bloomington, MN 55437 Pinnacle Plumbing 28995 Linden Ave Lindstrom, MN 55045 RENTAL – NEW 5401 Angeline Ave N – Robert Hudalla (Conditional) 4611 Colorado Ave N – Mitch Shepard c/o REI (Conditional) 4024 Jersey Ave N – Wm Schuler c/o Lifecycle RE Services (Conditional) 5827 Jersey Ave N – Harold Creek 5817 Nevada Ave N – Eric/Christine Johnson (Conditional) 5610 Perry Ave N – T. Sueblinvong c/o Guardian Property Management 2971 Sumter Ave N – Steven A Johnson RENTAL – RENEWAL 5648 Adair Ave N – Kin Mun Chew (Conditional) 6524 Brentwood Ave N – Eero/Nadya Mattson (Conditional) 5319 Corvallis Ave N – Donald/Kimberly Horton (Conditional) 3041 Douglas Dr N – Barbara Freund (Conditional) 3837 Douglas Dr N – G Fischer/P Johnson (Conditional) 5126 Edgewood Ave N – Wally Anderson (Conditional) 5127 Edgewood Ave N – Chad Xiong for PM& MY Xiong (Conditional) CONSENT AGENDA #1 Page 2 of 2 RENTAL – RENEWAL CONT’D 2717-2719 Hampshire Ave N – Ebielador Itie (Conditional) 4806 Hampshire Ave N – Scott Lindquist 5307 Idaho Ave N – Elizabeth Hanratty Trust (Conditional) 6717 Markwood Ave N – Millia Saade/Aballah Sanouri (Conditional) 5625 Maryland Ave N – Douglas/Charlayne Heinzmann (Conditional) 3220-3226 Nevada Ave N – Andrey/Tatiana Ryvlin (Conditional) 3408 Noble Ave N – Bryan/Cheryl Hart (Conditional) 5227 Unity Ct N – Enes Arslan (Conditional) 5710-5712 Wilshire Blvd – C/S Vitale 8117 30 th Ave N – Bachaus Investment Properties LLC 6907 46 th Pl N – Danmark Properties LLC 6407 52 nd Ave N – S Gebeke c/o Renters Warehouse TREE TRIMMER Golden Leaf Tree Service 1400 Sumter Ave N Golden Valley, MN 55427 CONSENT AGENDA #2 Memorandum DATE: July 11, 2012 TO: Mayor and City Council FROM: Anne Norris, City Manager Charles Hansen, Finance Director SUBJECT: Resolution Amending the 2012 Major Building Replacement Fund Budget for Public Works Facility Code Compliance Study Background The buildings in Public Works Facility were constructed in the 1960s and 1970s. They do not meet current building codes and have numerous issues that may negatively impact health & safety of employees, efficient operation of the maintenance departments and the physical condition of the buildings. Discussion The City Council and staff have been studying these issues for several years. In the spring of 2012, the study entered a phase in which it was necessary to bring in an outside consultant with the expertise to come up with reliable cost estimates for the necessary remodeling work at the Public Works Facility. The Kodet Architectural Group was selected to develop plans and cost estimates for the type of code improvements needed. Kodet has completed this study. It is now decided to go on to a second phase of the study which will examine the operations needs of the Public Works Department and explore a number of options for remodeling or replacing the Public Works Facility. Kodet has provided a cost estimate of $38,490 for their work on the study, plus another $7,500 for testing of the foundation posts under the cold storage building. Conclusion The attached resolution amends the 2012 Major Building Replacement Fund Budget to provide $45,990 for a study of the operational needs of the Public Works Department and options for the remodeling or replacement of the Public Works Facility. We recommend approval of the attached resolution. CONSENT AGENDA #3CONSENT AGENDA #3 City of Crystal RESOLUTION NO. 2012-___ AMENDING THE 2012 MAJOR BUILDING REPLACEMENT FUND BUDGET FOR THE PUBLIC WORKS FACILITY CODE COMPLIANCE STUDY WHEREAS, the study of the Public Works Facility improvements needs to be continued into a second phase to explore options for improving or replacing the facility, and WHEREAS, the expertise needed for this study can only be provided by an outside consultant with past experience in remodeling and construction projects, and WHEREAS, the Kodet Architectural Group has submitted a proposal to study the Public Works Facility for an estimated cost of $45,990. NOW, THEREFORE, BE IT RESOLVED that the 2012 Major Buildings Replacement Fund budget is amended to add $45,990 for professional services to study the Public Works Facility buildings and that the Kodet Architectural Group is retained for this purpose. Adopted by the Crystal City Council this 24th day of July, 2012. ___________________________ ReNae J. Bowman, Mayor ATTEST: ___________________________ Christina Serres, City Clerk REGULAR AGENDA REGULAR AGENDA #1 Memorandum DATE: July 19, 2012 TO: Mayor and City Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: A Resolution Awarding the Sale of $2,635,000 General Obligation Improvement Bonds, Series 2012A; Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment BACKGROUND: Construction is underway with Phase 12 of the 16 phase street reconstruction program which will reconstruct all streets within the City of Crystal. The City Council passed Resolution 2012-59 on June 19, 2012 which provided for the issuance and sale of the Series 2012A bonds to finance the Phase 12 Street Project. The assessment role adopted by Resolution 2012-32 included street and curb assessments totaling $3,540,281.35. These will run for 15 years with an interest rate of 5.0%. In past street construction projects, property owners have chosen to prepay 25% to 35% of the total dollar amount of the assessments. The size of the bond issue was determined by subtracting the prepayments received during the 30 day period for prepaying assessments without interest costs ($829,241.56) plus an estimate of additional prepayments after the 30 days ($141,039.79) from the total assessments. Estimated cost of $65,000 to issue the bonds are added to the remaining assessments to arrive at the bond issue of $2,635,000. DISCUSSION: It is anticipated that the special assessments levied for Phase 12 will be more than sufficient to make all principal and interest payments on the bonds. The bonds will be general obligations of the City. This means the City pledges its full REGULAR AGENDA #2 faith and credit and power to levy general property taxes, if needed, to repay the bonds. An application for a rating of the Bonds has been made to Moody’s Investors Service. The last rating from Moody’s was an Aa2 rating made on July 12, 2011. Moody’s recalibrated its rating system in 2010, resulting in the City of Crystal’s rating changing to Aa2. On July 17, 2012, Moody’s interviewed me to set the rating on these bonds. They have not yet advised me of the outcome, but I expect that they will reaffirm the Aa2 rating for this year’s bonds and all previous outstanding bonds. Proposals from potential buyers of the bonds will be received at the offices of Springsted, Inc until 10:00 A.M. on Tuesday, July 24, 2012. At that time the bids will be opened and a calculation will be made of the lowest interest rate on a true interest cost basis. The proposal with the lowest interest rate will be announced at the City Council meeting and recommended to the City Council for the award of the bond sale. CONCLUSION: An Official Statement for the bond sale prepared by Springsted, Inc., the city’s financial advisor is attached. A draft version of the Resolution Awarding the Sale of $2,635,000 General Obligation Improvement Bonds, Series 2012A; Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment was prepared by Kennedy & Graven and is also attached. A final version of the resolution will be prepared by Kennedy & Graven after the sale of the bonds has been awarded by the City Council. We recommend that the City Council consider approving the resolution based on the sale results that will be reported on Tuesday night. Extract of Minutes of Meeting of the City Council of the City of Crystal, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Crystal, Minnesota, was duly held in the City Hall in said City on Tuesday, July 24, 2012, commencing at 7:00 P.M. The following members were present: and the following were absent: * * * * * * * * * The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's approximately $___________ General Obligation Improvement Bonds, Series 2012A. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in EXHIBIT A attached. After due consideration of the proposals, Member ____________________ then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 406385v1 SJB CR225-376 2 RESOLUTION NO. ______ A RESOLUTION AWARDING THE SALE OF $___________ GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2012A FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Crystal, Hennepin County, Minnesota (the “City”) as follows: Section 1. Sale of Bonds . 1.01. Award to the Purchaser and Interest Rates . The proposal of ___________. in _________________, _________ (the “Purchaser”) to purchase $___________ General Obligation Improvement Bonds, Series 2012A (the “Bonds”) of the City described in the Terms of Proposal thereof is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $____________ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Maturity Interest Rate Year of Maturity Interest Rate 2014 2022 2015 2023 2016 2024 2017 2025 2018 2026 2019 2027 2020 2028 2021 True interest cost: _______% 1.02. Purchase Contract . The sum of $_________ being the amount proposed by the Purchaser in excess of $__________ shall be credited to the Debt Service Fund hereinafter created, or deposited in the Construction Fund under Section 4.01 hereof, as determined by the City Finance Director in consultation with the City’s financial advisor. The City Finance Director is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.03. Terms and Principal Amounts of the Bonds . The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Chapter 429 (the “Act”) in the total principal amount 406385v1 SJB CR225-376 3 of $___________, originally dated August 1, 2012, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2014 2022 2015 2023 2016 2024 2017 2025 2018 2026 2019 2027 2020 2028 2021 1.04. Optional Redemption . The City may elect on February 1, 2022, and on any day thereafter to prepay Bonds due on or after February 1, 2023. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. Section 2. Registration and Payment . 2.01. Registered Form . The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates . Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2013, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration . The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: 406385v1 SJB CR225-376 4 (a) Register . The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds . Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds . When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation . Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer . When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners . The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes and payments so made to registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges . The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds . If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation 406385v1 SJB CR225-376 5 of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption . In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar . The City appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery . The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds 406385v1 SJB CR225-376 6 need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds . The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond . 3.01. Execution of the Bonds . The Bonds will be printed or typewritten in substantially the form as attached hereto as EXHIBIT B. 3.02. Approving Legal Opinion . The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants . 4.01. Debt Service Fund . (a) The Bonds are payable from the Improvement Bonds, Series 2012A Debt Service Fund (the “Debt Service Fund”) hereby created, and the special assessments (the “Assessments”) levied or to be levied for the Improvements described in the resolution authorizing the sale of the Bonds are hereby pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Assessments when collected. There is appropriated to the Debt Service Fund (i) any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.02 and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. (b) Construction Fund. The proceeds of the Bonds, less the appropriations made in paragraph (a), together with any other funds appropriated for the Improvements and Assessments collected during the construction of the Improvements will be deposited in a separate construction fund (which may contain separate accounts for each Improvement) (the “Construction Fund”) to be used solely to defray expenses of the Improvements and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Improvement. Any balance remaining in the construction fund after completion of the Improvements may be used to pay the cost in whole or in part of any other improvement instituted under the Act. When the Improvements are completed and the cost thereof paid, the 406385v1 SJB CR225-376 7 Construction Fund is to be closed and subsequent collections of Assessments for the Improvements are to be deposited in the Debt Service Fund. 4.02. City Covenants . It is hereby determined that the Improvements will directly and indirectly benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds as follows: (a) The City has caused or will cause the Assessments for the Improvements to be promptly levied so that the first installment will be collectible not later than 2013 and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Improvement financed wholly or partly from the proceeds of the Bonds, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in Assessments the City Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Improvements and Assessments levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand and, the balance of unpaid Assessments. (d) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to any interested person upon request. 4.03. No Tax Levy Required . It is hereby determined that the estimated collections of Assessments and interest thereon for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 4.04. Taxpayer Services Division Manager as to Registration . The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Minnesota Statutes, Section 475.63. 406385v1 SJB CR225-376 8 Section 5. Authentication of Transcript . 5.01. City Proceedings and Records . The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement . The Mayor, City Manager and Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 6. Tax Covenant . 6.01. Tax-Exempt Bonds . The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. No Rebate Required . (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 2012) exceed the small-issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small-issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000, within the meaning of Section 148(f)(4)(D) of the Code. 6.03. Not Private Activity Bonds . The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the 406385v1 SJB CR225-376 9 Bonds to be “private activity bonds” within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. Qualified Tax-Exempt Obligations . In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than any private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2012 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2012 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. Procedural Requirements . The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entry System; Limited Obligation of City . 7.01. DTC . The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants . With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with 406385v1 SJB CR225-376 10 respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede & Co.,” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Representation Letter . The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book-Entry System . In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure . 406385v1 SJB CR225-376 11 8.01. City Compliance with Provisions of Continuing Disclosure Certificate . The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. Execution of Continuing Disclosure Certificate . “Continuing Disclosure Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 9. Defeasance . 9.01. Pledges, Covenants, and Other Rights to Cease . When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (The remainder of this page is intentionally left blank.) 406385v1 SJB CR225-376 12 The motion for the adoption of the foregoing resolution was duly seconded by Member _________________________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 406385v1 SJB CR225-376 STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. ) CITY OF CRYSTAL ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Crystal, Hennepin County, Minnesota, do 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 July 24, 2012 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 $___________ General Obligation Improvement Bonds, Series 2012A of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this ______ day of _______________, 2012. City Clerk Crystal, Minnesota (SEAL) 406385v1 SJB CR225-376 STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S CERTIFICATE AS TO COUNTY OF HENNEPIN REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Crystal, Minnesota, on July 24, 2012, relating to General Obligation Improvement Bonds, Series 2012A, the amount of $___________, dated August 1, 2012, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this _____ day of _______________, 2012. Taxpayer Services Division Manager Hennepin County, Minnesota (SEAL) Deputy 406385v1 SJB CR225-376 A-1 EXHIBIT A PROPOSALS 406385v1 SJB CR225-376 B-1 EXHIBIT B FORM OF BOND No. R-_____ $________ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF CRYSTAL GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2012A Rate Maturity Date of Original Issue CUSIP February 1, 20__ August 1, 2012 Registered Owner: Cede & Co. The City of Crystal, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $__________ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2013, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2022, and on any day thereafter to prepay Bonds due on or after February 1, 2023. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 406385v1 SJB CR225-376 B-2 The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $____________ all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on July 24, 2012 (the Resolution), for the purpose of providing money to defray the expenses incurred and to be incurred in making local improvements, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal hereof and interest hereon are payable primarily from special assessments against property specially benefited by local improvements, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in special assessments pledged, which additional taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. 406385v1 SJB CR225-376 B-3 This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Crystal, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF CRYSTAL, MINNESOTA (Facsimile) (Facsimile) City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative _________________________________ 406385v1 SJB CR225-376 B-4 The following abbreviations, when used in the inscription on the face of this Bond, will be constructed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT _________ Custodian _________ in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . . . . . . . . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ________________________________________ ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ________________________________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint _________________________ attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. 406385v1 SJB CR225-376 B-5 The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Signature of Officer of Registrar Cede & Co. Federal ID #13-2555119 REGULAR AGENDA #3 G:\City Clerk\Council\Work sessions\2012\07.24.12 W S Agenda.doc CRYSTAL CITY COUNCIL WORK SESSION AGENDA Tuesday, July 24, 2012 To immediately follow the Regular City Council Meeting Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at ______ p.m. on Tuesday, July 24, 2012 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff ____ Selton ____ Norris ____ Anderson ____ Norton ____ Bowman ____ Banick ____ Budziszewski ____ Mathisen ____ Deshler ____ Hackett ____ Hoffmann ____ Serres ____ Moore II. Agenda The purpose of the work session is to discuss the following items: · Shoreline Management Policy · Twin Lake Fishing Pier · DeCola Ponds · Minnesota GreenStep Cities Program III. Adjournment The work session adjourned at ______ p.m.