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HomeMy WebLinkAbout1992 [08] Aug 06 August 6/ 1992 Pursuant to due call and notice thereof, the City Council for the City of st. Joseph met in regular session, on Thursday, August 6/ 1992 at 7:00 p.m. in City Hall. MEMBERS PRESENT: Mayor Steven Dehler; Members of the Council Leo Sadlo, Ross Rieke, Bob Loso, Stephanie Hazen. Clerk/Administrator Rachel Stapleton. OTHERS PRESENT: Judy Weyrens, Mary Kay Nordmann, Stuart Goldschen, Bud Reber, Dan Nierengarten, Jim Brummer, Monte Eastvold, Joe Bettendorf, James Eismann, Kevin Donnay, Dick Taufen. AGENDA: Hazen made a motion to approve the agenda with additions; seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. BILLS PAYABLE: Hazen made a motion to approve the bills payable as presented; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. MINUTES: Loso made a motion to approve the minutes of the July 16 and August 4 meetings as presented; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. MAYOR REPORTS: 1) The Mayor and Councilman Sadlo met with Lisa Eich, for a termination interview. Elected officials should be aware that the employees take their jobs seriously. Effort should be taken, not to demean any job, position, or individual, and to be aware of their feelings. COUNCIL REPORTS - SADLO: This afternoon a committee met to review the bids, for recommendations to the Council, which wi 11 be handled later in the meeting. LOSO: No report. RIEKE: No report. HAZEN: 1) The Planning Commission held a public hearing to consider a request for a special use permit to allow residential living quarters above a business in the general business zone. The property is located at 13 Minnesota Street West, and legally described as the South 61 feet of East 27.15 feet of Lot 12/ Block 9; Townsite of st. Joseph. The request for Special Use has been submitted by Mary Kay Nordmann. Hazen made a motion to approve the Special Use permit as recommended by the Planning Commission, with the corrections required by the Fire Chief and Building Inspector; and that the Special Use permit is non- transferable/ and shall only apply to Mary Kay Nordmann. Should the business be sold, or the Nordmann's cease to occupy the second floor, this special use becomes null and void. The motion was seconded by Sadlo. Discussion - Dehler discussed if there is a need to make the front door handicap accessible, when an individual would have to climb steps to get to the residence. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Page 2095 August 6, 1992 shall be established: a) $5.00 administration fee b) $10.00 permit for a residential fence c) $15.00 permit for a commercial fence The motion was seconded by Hazen. Ayes: Dehler, Sadlo, Loso, Hazen. Nayes: Rieke. Motion carried. BUS PARKING BY LAB SCHOOL: Hazen made a motion to approve the bus parking plan at the Lab School and to allow the Lab School to purchase two signs, which will designate no parking between the hours of 7:00 A.M. - 7:45 A.M. AND 2:00 P.M. - 2:45 P.M. , and city maintenance will install them; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. GAMBLING LICENSE APPLICATION: Ken Twit, Gambling Manager, st. Joseph Volunteer Fire Fighters, presented the Clerk/Adm with an application for exemption from Lawful Gambling, for a fund raiser, for the profits to go to the Volunteer Fire Fighters of st. Joseph. The event is to be held at the st. Joseph Fire Hall on August 21, 1992. He also requested that the Council waive the 30 day waiting period and allow the State Control Board to consider the Application at their earliest convenience. Sadlo made a motion to approve the application and waive the thirty day waiting requirement, as requested; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. RECREATION CENTER FUND: Jim Brummer presented a plan for the refunding of the recreation fund donations. Hazen made a motion to approve the plan to refund the donations of those who request it, and retain the balance, in the special fund, to be dedicated to the costs of a comprehensive professional community need survey and preliminary engineer/architect service prior to construction of a community gathering place of the future. The motion was seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. OPEN TO THE PUBLIC: Bud Reber stated that, concerning information sent to the property owner of the 8-plexes, he has inspected the properties, as Housing Inspector, and spoke with the Management firm, and all reports go to them. ELECTION JUDGES: Sadlo made a motion to approve the following election judges: Marge Lesnick, Elaine Imholte, Dorothy Sadlo, Doris Johnson, Adeline Gillitzer, Leander Meyer, Duke Hewitt, Pia Lopez, Bill Lorentz, Stephanie Hazen, Judy Weyrens, Rachel Stapleton, Tillie Wasner. The motion was seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. REFUSE CART PROPOSAL: Council considered the request of BFI Park Refuse, to allow refuse customers the option to rent a cart from the company. Council was in general agreement to allow this if it is Page 2097 August 6/ 1992 Pursuant to due call and notice thereof, the City Council for the City of st. Joseph met in regular session, on Thursday, August 6/ 1992 at 7:00 p.m. in City Hall. MEMBERS PRESENT: Mayor Steven Dehler; Members of the Council Leo Sadlo, Ross Rieke, Bob Loso, Stephanie Hazen. Clerk/Administrator Rachel Stapleton. OTHERS PRESENT: Judy Weyrens, Mary Kay Nordmann, Stuart Goldschen, Bud Reber, Dan Nierengarten, Jim Brummer, Monte Eastvold, Joe Bettendorf, James Eismann, Kevin Donnay, Dick Taufen. AGENDA: Hazen made a motion to approve the agenda with additions; seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. BILLS PAYABLE: Hazen made a motion to approve the bills payable as presented; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. MINUTES: Loso made a motion to approve the minutes of the July 16 and August 4 meetings as presented; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. MAYOR REPORTS: 1) The Mayor and Councilman Sadlo met with Lisa Eich, for a termination interview. Elected officials should be aware that the employees take their jobs seriously. Effort shoul d be taken, not to demean any job, position, or individual, and to be aware of their feelings. COUNCIL REPORTS - SADLO: This afternoon a committee met to review the bids, for recommendations to the Council, which will be handled later in the meeting. LOSO: No report. RIEKE: No report. HAZEN: 1) The Planning Commission held a public hearing to consider a request for a special use permit to allow residential living quarters above a business in the general business zone. The property is located at 13 Minnesota Street West, and legally described as the South 61 feet of East 27.15 feet of Lot 12/ Block 9; Townsite of St. Joseph. The request for Special Use has been submitted by Mary Kay Nordmann. Hazen made a motion to approve the Special Use permit as recommended by the Planning Commission, with the corrections required by the Fire Chief and Building Inspector; and that the Special Use permit is non- transferable/ and shall only apply to Mary Kay Nordmann. Should the business be sold, or the Nordmann's cease to occupy the second floor, this special use becomes null and void. The motion was seconded by Sadlo. Discussion - Dehler discussed if there is a need to make the front door handicap accessible, when an individual would have to climb steps to get to the residence. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Page 2095 August 6, 1992 Nayes: None. Motion carried. - 2) The Planning Commission recommended approval of an overhang request of Mary Kay Nordmann, which will extend 36" over the sidewalk facing Minnesota street. The overhang will be of canvas material with the total dimensions being 23'7" x 48". Loso made a motion to approve the overhang request as recommended by the Planning Commission; seconded by Hazen. Discussion -Dehler asked if the size complied with the sign ordinance, and other members of the Council generally felt that the Planning Commission had considered that matter. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 3) Hazen reported that the Planning Commission had viewed Mike Deutz's building plans, to construct a 1369 square foot addition, to be used as an off sale liquor establishment. The Planning Commission authorized the Building Official to issue a building permit, only after Mr. Deutz has presented him with a surveyor's plat, illustrating all the buildings and setback requirements. If the setback requirements cannot be met, or view will be obstructed, Mr. Deutz will need to re-appear before the Commission. Loso made a motion to support the Planning Commissions action; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 4) The Planning Commission expressed concern about a garage that is being constructed at 34 First Avenue NE. It appeared to them that it exceeds the maximum lot coverage and requested a copy of what criteria was used to determine the coverage. The Council requested that the Building Inspector give a report on this situation in relation to the ordinance requirements. 5) Also the Planning Commission felt the Council handled two issues which they felt they should have been allowed to consider first: a) Roger Steichen - Overhang request. b) HRA Resolution approving Low-Rent housing. 6) The Planning Commission would like to be involved in the Township/City Annexation/Merger issue. 7 ) The Planning Commission also felt that the CORE Committee has done an excellent job of developing better communication and cooperation in the community. They requested that the City send a letter of appreciation on behalf of the Planning Commission. 8) The 8-plex owner had stated that he was not aware of any problems with the tenants in his buildings. Council stated that this is possible because the notices go to the Apartment management company, or to the offending tenant. TREASURERS REPORT: Hazen made a motion to approve the treasurer's report as presented by Judy Weyrens; seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. FENCE PERMIT FEE: Loso made a motion to approve a resolution establishing fees for fence permits, to erect a fence pursuant to ordinance 56 of the st. Joseph Code of Ordinances. The following fees Page 2096 August 6, 1992 - sha 11 be established: a) $5.00 administration fee b) $10.00 permit for a residential fence c) $15.00 permit for a commercial fence The motion was seconded by Hazen. Ayes: Dehler, Sadlo, Loso, Hazen. Nayes: Rieke. Motion carried. BUS PARKING BY LAB SCHOOL: Hazen made a motion to approve the bus parking plan at the Lab School and to allow the Lab School to purchase two signs, which will designate no parking between the hours of 7:00 A.M. - 7:45 A.M. AND 2: 00 P.M. - 2:45 P.M., and city maintenance will install them; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. GAMBLING LICENSE APPLICATION: Ken Twit, Gambling Manager, st. Joseph Volunteer Fire Fighters, presented the Clerk/Adm with an application for exemption from Lawful Gambling, for a fund raiser, for the profits to go to the Volunteer Fire Fighters of st. Joseph. The event is to be held at the st. Joseph Fire Hall on August 21, 1992. He also requested that the Council waive the 30 day waiting period and allow the State Control Board to consider the Appl ication at their earliest convenience. Sadlo made a motion to approve the application and waive the thirty day waiting requirement, as requested; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. RECREATION CENTER FUND: Jim Brummer presented a plan for the refunding of the recreation fund donations. Hazen made a motion to approve the plan to refund the donations of those who request it, and retain the balance, in the special fund, to be dedicated to the costs of a comprehensive professional community need survey and preliminary engineer/architect service prior to construction of a community gathering place of the future. The motion was seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. OPEN TO THE PUBLIC: Bud Reber stated that, concerning information sent to the property owner of the 8-plexes, he has inspected the properties, as Housing Inspector, and spoke with the Management firm, and all reports go to them. ELECTION JUDGES: Sadlo made a motion to approve the following election judges: Marge Lesnick, Elaine Imholte, Dorothy Sadlo, Doris Johnson, Adeline Gillitzer, Leander Meyer, Duke Hewitt, Pia Lopez, Bill Lorentz, Stephanie Hazen, Judy Weyrens, Rachel Stapleton, Ti 11 ie Wasner. The motion was seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. REFUSE CART PROPOSAL: Council considered the request of BFI Park Refuse, to allow refuse customers the option to rent a cart from the company. Council was in general agreement to allow this if it is Page 2097 August 6, 1992 handled totally through BFI Park Refuse, including bi 11 ing for the equipment. - Loso made a motion to recess at 8:10 p.m.; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. The meeting was reconvened at 8:21 by Acting Mayor Sadlo; with Sadlo, Loso, and Rieke present. Joe Bettendorf introduced Jay Eismann, representing the low bidder of the Water storage Facility contract. He was available for any questions the Council may have. Mayor Dehler resumed the Chair at 8:22 p.m. WATER SYSTEM IMPROVEMENTS: City Engineer Joe Bettendorf presented the bids as opened August 4, 1992. He recommended awarding Contract I - Water Transmission Mains, to the low bid, of S J Loius Construction Inc. , for the main contract only, amounting to $358,376.10. Sadlo made a motion to award the low bid, recommended by the City Engineer, to S J Louis Construction Inc.; seconded by Loso. Ayes: Dehler, SadIo, Rieke, Loso, Hazen. Nayes: None, Motion carried. Contract II - 500,000 Gallon elevated water storage reservoir: Joe discussed the low bid of CBI Na-Con, Inc for the storage facility, and that the low bid was well above the 1991 projected cost. Several alternates were provided in the bid specifications. One of the alternates is a monitoring and control system which came in well above the estimated cost. Loso made a motion to accept the low bid of CBI NA-CON, Inc. of $772,400, excluding item No. 3 of $85,000, as approved by the contractor, which makes the accepted bid amount $687,400. This award is contingent upon approval of the Environmental Review still underway by the Minnesota Department of Trade and Economic Development. The motion was seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen, Nayes: None. Motion carried. WATER STORAGE FACILITY - BONDING: Monte Eastvold, of Juran & Moody, discussed the proposed bond issue to finance the City portion of the Water Storage Facility project. He stated that this is a good time to bond, because rates are at a 25 year low. (See Appendix) SPACE PLANNING FOR CITY SERVICES: Kevin Donnay, of SEH, presented the study for preliminary review. Council accepted the study and set a special meeting for August 11th at 7:00 p.m. to review the study. 91ST AVENUE SANITARY SEWER PROJECT: There were 100% of the property owners signed the petition to annex to receive sewer services. No public hearing is required. Joe presented the following project schedule: Bid ad to paper August 24 Advertise August 28 Page 2098 August 6, 1992 - Open Bids September 11 Award Bids and conduct Informational meeting September 17 Begin Construction October 5 Complete construction (except restoration) October 30 Complete all work June 1, 1993 Deadline for property owners to hookup - November 15 Assessment Hearing: Notice to paper September 23 Publish September 30 Notice to property owners September 30 Conduct hearing October 15 1992 SEAL COATING IMPROVEMENT: Hazen made a motion to approve the Application for payment No. 1 (Final) to Astech Corp. of $15,328.50, on completion of final sweep of streets; seconded by Loso. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 1992 DRAINAGE POND CONSTRUCTION: Loso made a motion to approve the Final Application for Payment of Donald Tretter Excavating, which includes retainage of the amount for seeding. John Scherer has been requested to write up a release, for the landscaping, for the property owners to sign. The motion was seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. EAST BAKER STREET 7TH AVENUE SE IMPROVEMENT: Loso made a motion to approve Application for Payment No. 3 for East Baker Street and 7th Avenue Improvement, of Randy Kramer Excavating, of $34,577.70. The motion was seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. NORTHLAND ADDITION: Council received a request for street lighting to be installed in Northland Addition and requested that a plan be submitted for Council consideration. VOTER NOTIFICATION: Loso made a motion to approve the reimbursement request of the County Auditor's office for redistricting notification mailing, which was sent to the voters, 660 registered voters @ 23 cents = $151.80. The motion was seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. ST CLOUD AREA ECONOMIC DEVELOPMENT PARTNERSHIP, INC: The Council considered the request of the st. Cloud Area Economic Development Partnership to become a member. Loso made a motion to table the matter until the annexation/merger issue with the Township is completed and there is land for development; seconded by Sadlo. Discussion - Dehler felt that the dues should be budgeted in the 1993 budget. Loso stated Page 2099 August 6, 1992 that there is a revenue shortfall, for our current needs, in the - budget. Dehler made a motion to amend the motion, to include the dues in the 1993 budget; seconded by Rieke. Ayes: Dehler, Sadlo, Rieke, Hazen. Nayes: Loso. Motion carried. Vote on the amended motion: Ayes: Dehler, Sadlo, Rieke, Hazen. Nayes: Loso. Motion carried. SUPERINTENDENT OF PUBLIC WORKS REPORTS: 1) Dick Taufen presented a schedule for hiring of the maintenance worker, and discussed the information he had gathered on hiring procedures. The Council discussed using a citizen hiring board for the review and interviews. Then the top five applicants would be interviewed by the Council. 2) He also stated that stop signs will be needed for the new additions. Council was in general agreement to wait until the homes are built, so that the signs would not be damaged during their construction. He also discussed other sign problems, with the Council. Mayor Dehler stated that any information given to employees from individual members of the Council, needs to be approved by the Council. CLERK/ADMINISTRATOR REPORTS: 1) Loso made a motion to approve the attendance of the Clerk/Administrator at a Regional Clerk's conference meeting in Watkins, on August 13; seconded by Sadlo. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 2) Rieke made a motion to approve the appointment of Juran & Moody as an official depository for the City; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 3) Quotes for a printer, were presented. Sadlo made a motion to approve the purchase of the best printer, based on an evaluation of the printer, and office needs, as established by the employees in the Clerk's office; seconded by Loso, Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. 4) Clerk/Administrator reported that the Township will meet with the City Council on August 31, at 9:00 p.m. at the Township Hall. Sadlo made a motion to adjourn at 10:25 p.m.; seconded by Hazen. Ayes: Dehler, Sadlo, Rieke, Loso, Hazen. Nayes: None. Motion carried. ~ Rachel Staple on Clerk/Administrator Page 2100 - Member Loso then introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR TIIE PAYMENT OF $475,000 GENERAL OBLIGATION WATER REVENUEBONDSOF1W2 BE IT RESOLVED by the City Council of the City of S1. Joseph, Minnesota (the Issuer), as follows: Section 1. Authorization and Sale. (a) This Council, by resolution adopted August 6, 1992, authorized the issuance and sale of $475,000 General Obligation Water Revenue Bonds of 1992 (the Bonds), of the Issuer, the proceeds of which will be used to finance improvements to the municipal water system (the System). (b) Bids have been received in accordance with said resolution and the Official Notice of Sale approved thereby and the Council has publicly considered all sealed bids presented in confonnity with the Official Notice of Sale. The most favorable of such bids is ascertained to be that of FBS Investment Services , of Minneapolls , Minnesota and associates (the Purchaser), to purchase the Bonds at a price of $ 469.300.00 plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. (c) The sale of the Bonds is hereby awarded to the Purchaser and the Mayor and City Oerk-Administrator are hereby authorized and directed to execute a contract on behalf of the Issuer for the sale of the Bonds in accordance with the terms of the bid. The good faith deposit of the Purchaser shall be retained by the Issuer until the Bonds have been delivered. Section 2. Bond Tenns: Re!Pstration: Execution and Delivery. 2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be perfonned precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for the City Council to establish the form and tenns of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities: Interest Rates: Denominations and Payment. The Bonds shall be originally dated as of October 1, 1992, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on December 1 in the years and amounts stated below without option of prior payment, and shall bear interest from date of issue until paid at the respective annual rates set forthopposite such years and amounts, as follows: ~ Amount ~ 1994 $ 30,000 4.00% 1995 30,000 4.20 1996 30,000 4.40 1997 35,000 4.70 1998 35,000 5.00 Appendix 1.1 1999 40,000 5. 20~; - 2000 40,000 5.40 2001 45,000 5.60 2002 45,000 5.75 2003 45,000 5.90 2004 50,000 6.00 2005 50,000 6.00 The Bonds shall be issuable only in fully registered form. The interest Ù1ereon and, upon surrender of each Bond at the principal office of Ù1e Registrar described herein, the principal amount Ù1ereof shall be payable by check or draft issued by the Registrar described herein. 2.03. Dates and Interest Payment Dates. Each Bond shall bear a date of original issue of October 1, 1992. Upon Ù1e initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of aUÙ1entication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on each June 1 and December 1, commencing June 1, 1993, to Ù1e owners of record thereof as of Ù1e close of business on the fIfteenÙ1 day of the immediately preceding monÙ1, whether or not such day is a business day. 2.04, Redemption. Bonds maturing in 2001 and later years shall be subject to redemption and prepayment at the option of the Issuer, in whole or in part, in inverse order of maturity dates and wiÙ1in a maturity by lot as selected by Ù1e Registrar in multiples of $5,(){X), on December 1,2000, and on any interest payment date thereafter, at a price equal to the principal amount thereof and accrued interest to me date of redemption. The Clerk-Administrator shall cause notice of Ù1e call for redemption Ù1ereof to be published as required by law, and at least thirty days prior to Ù1e designated redemption date, shall cause notice of call for redemption to bemailed.by first class mail, to Ù1e registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Offlcial notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at Ù1e redemption price Ù1erein specified and from and after such date (unless the Issuer shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing me remaining principal amount outstanding. 2.05. Appointment of Initial Re~strar. The Issuer hereby appoints Firstar ¡rust Company , in M11~..¡aukee , WlsconSln as the initial bond registrar, transfer agent and paying agent (Ù1e Registrar), The Mayor and the Clerk-Administrator are aUÙ10rized to execute and deliver, on behalf of Ù1e Issuer, a contract with Ù1e 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, such corporation shall be authorized to act as successor Registrar, The Issuer agrees to pay the reasonable and customary charges of the Registrar for the services performed, The Issuer reserves the right to remove the Registrar upon thirty (30) days notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. Appendix 1.-2- - 2.06. Re~stration. The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows: (a) Re~ster. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide 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 any 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 shall 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 such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall 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. All Bonds surrendered upon any t::ransfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Issuer. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall 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 Issuer and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond Appendix 1.-3- destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the - Registrar in connection merewith; and. in me case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that such Bond was destroyed, stolen or lost, and of the ownership mereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in fonn, substance and amount satisfactory to it, in which both the Issuer and me Registrar shall be named as obligees. All Bonds so surrendered to me Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Issuer. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its tenns it shall not be necessary to issue a new Bond prior to payment. (i) Authenticatin~ A~ent The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 2.07. Execution. Authentication and Delivery. The Bonds shall be prepared under the direction of the Clerk-Administrator and shall be executed on behalf of the Issuer by the signatures of me Mayor and the Clerk-Administrator, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before me delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery, Notwithstanding such execution, no Bond shall 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 such Bond has been duly executed by the manual signature of an aumorized representative of me Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been aumenticated and delivered under this Resolution. When me Bonds have been so prepared, executed and authenticated, me Clerk-Administrator shall deliver them to me Purchaser upon payment of the purchase price in accordance with me contract of sale heretofore made and executed, and me Purchaser shall not be obligated to see to the application of the purchase price, 2.08, Fonn of Bonds. The Bonds shall be printed in substantially the following fonn: Appendix 1.-4- - [Face of the Bonds] UNITED STATES OF AMERICA - STATE OF MINNESOTA COUNTY OF STEARNS CITY OF ST. JOSEPH GENERAL OBLIGATION WATER REVENUE BOND OF 1992 Date of ~ Maturity Ori¡p.nal Issue CUSIP October 1, 1992 REGISTERED OWNER: PRINCIPAL AMOUNT: FOR VALUE RECEIVED, the City of St. Joseph, County of Steams, Minnesota (the Issuer), acknowledges itself to be indebted and hereby promises to pay to the registered owner named above, or registered assigns, the principal sum specified above on the maturity date specified above, without option of prior payment, with interest thereon from the date hereof at the annual rate specified above, payable on June 1 and December 1 in each year, commencing June 1, 1993, 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 , III , , as Bond Registrar, Transfer Agent and Paying Agent (the Registrar), 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 Issuer have been and are hereby irrevocably pledged. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of St. Joseph, County of Steams, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Clerk-Administrator and has caused this Bond to be dated as of the date set forth below. Date of Authentication: Appendix 1-;5- CITY OF ST. JOSEPH, MINNESOTA - (Facsimile Si~ature) <Facsimile Si~ature) City Clerk-Administrator Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. , as Registrar By Authorized Representative [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount of $475,000, all of like date and tenor, except as to maturity date, interest rate and denomination, issued pursuant to a resolution adopted by the City Council on September 3, 1992 (the Resolution), to fmance improvements to the municipal water system, and is issued pursuant to and in full confonnity with the Constitution and laws of the State of 1vlinnesota thereunto enabling, including Minnesota Statutes, Chapters 444 and 475. The Bonds are issuable only in fully registered fonn, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds of this issue maturing in 2001 and later years are subject to redemption and prepayment at the option of the Issuer, in whole or in part, in inverse order of maturity dates and within a maturity by lot as selected by the Registrar in multiples of $5,000, on December 1,2000, and on any interest payment date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The Clerk-Administrator shall cause notice of the call for redemption thereof to be published as required by law, and at least thirty days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by fITSt class mail, to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the Issuer shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the Issuer at the principal office of the Registrar, by the registered owner hereof in person or by the owner's anorney duly authorized in writing upon Appendix 1;6- surrender hereof together with a written instrument of ttansfer satisfactory to the Registtar, 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 ttansfer or exchange the Issuer 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 Issuer and the 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 Issuer nor the Registtar shall 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 Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be perfonned preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the Issuer in accordance with its tenns, have been done, do exist, have happened and have been perfonned as so required; that in and by the Resolution, the Issuer has covenanted and agreed with the registered owners of the Bonds that it will impose and collect, or cause to be imposed and collected, charges for the service, use and availability of the municipal water system at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Bonds, but the full faith and credit and taxing powers of the Issuer have been pledged to the payment of principal and interest when due, and ad valorem taxes, if necessary for such purpose, will be levied upon all taxable property in the Issuer, without limitation as to rate or amount; and that the issuance of this Bond, together with all other indebtedness of the Issuer outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Issuer to exceed any constitutional or statutory limitation of indebtedness. Fonn of certificate to be printed on the reverse side of each Bond, following a full copy of the legal opinion: We certify that the above is a full, true and correct copy of the legal opinion rendered by Bond Counsel on the issue of Bonds of the City of S1. Joseph, County of Stearns, Minnesota, which includes the within Bond, dated as of the date of original delivery of and payment for the Bonds. (Facsimile Signature) (Facsimile Signature) City Clerk-Administtator Mayor The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UTMA as Custodian for in cornmon (Cust) (Minor) under U nifonn Transfers to Minors Act (State) TEN ENT -- as tenants by entireties IT TEN --as joint tenants with right of survivorship and not as tenants in common Appendix 1 :-7- Additional abbreviations may also be used though not in the above list. ASSIGNMENl 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 regisu-ation 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 enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage finn having a membership in one of the major stock exchanges. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NlJMBER OF ASSIGNEE: Appendix 1.-8- Section 3. Use of Proceeds. Upon payment for the Bonds by the Purchaser, the Clerk-Administrator shall deposit any amount received from the Purchaser in excess of $465,690 into the Bond Fund created pursuant to Section 4 hereof. Proceeds of the Bonds in the amount of $465,690 shall be deposited to a separate construction fund to be created on the books of the Issuer and expended to pay for the costs of improvements to the System, including the costs of issuance of the Bonds. Any amounts remaining upon completion of the improvements shall be transfeITed to the Bond Fund. Section 4. 1992 Water Revenue Bond Sinkin~ Fund. The Bonds shall be payable from a separate and special 1992 Water Revenue Bond Sinking Fund (the Bond Fund) of the Issuer, which Bond Fund the Issuer agrees to maintain until the Bonds have been paid in full. If the money in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the Issuer, which other funds shall be reimbursed therefor when sufficient money becomes available in the Bond Fund. The moneys on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid: (a) any amount in excess of $465,690 received from the Purchaser; (b) net revenues of the water system (the System) appropriated to the payment of the Bonds and interest thereon in accordance with Section 5 hereof; (c) all taxes collected pursuant to Section 7 hereof; and (d) any other funds appropriated by the Council for the payment of the Bonds. Section 5. Sufficiencv of System Revenues. It is hereby found, detennined and declared that the Issuer owns and operates the System as a revenue-producing utility and convenience; and that the net operating revenues of the System, after deducting from the gross receipts derived from charges for the service, use and availability of the System the normal, current and reasonable expenses of operation and maintenance thereof, will be sufficient, together with any other pledged funds, for the payment when due of the principal of and interest on the Bonds herein authorized, and on any other bonds to which such revenues are pledged. Section 6. Rate Covenant. Pursuant to Minnesota Statutes, Section 444.075, the Issuer hereby covenants and agrees with the registered owners from time to time of the Bonds, that until the Bonds are paid in full, or are discharged as provided in Section 8, the Issuer will impose and collect reasonable charges for the service, use and availability of the System according to schedules sufficient to produce net revenues sufficient to pay the Bonds, and any other bonds to which said net revenues have been pledged; and the net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds herein authorized and interest thereon when due. Nothing herein shall preclude the Issuer from hereafter making further pledges and appropriations of the net revenues of the System for payment of additional obligations of the Issuer hereafter authorized if the Council determines before the authorization of such additional obligations that the estimated net revenues of the System will be sufficient, together with any other sources pledged to the payment of the outstanding and additional obligations, for payment of the outstanding bonds and such additional obligations. Such further pledges and appropriations of net revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein made. Section 7. Pledge of Taxin~ Powers. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. It is, however, presently estimated that the revenues appropriated pursuant to Section 5 hereof will provide sums not less than 5% in excess of principal and interest on the Bonds when due, and therefore no tax levy is presently required. Appendix 1 .-9- Section 8. Defeasance. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the registered owners of the Bonds shall cease. The Issuer may discharge its obligations with respect to any 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; or, 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 from the due date to the date of such deposit. The Issuer may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required to pay all principal and interest to become due thereon to maturity or to an earlier designated redemption date. Section 9. Re~stration of Bonds. The Clerk-Adminisn-ator is hereby authorized and directed to me a certified copy of this resolution with the County Auditor of Steams County and obtain a certificate that the Bonds have been duly entered upon the Auditor's bond register. Section 10, Authentication of Transcript The officers of the Issuer and County Auditor of Steams County are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and infonnation as may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and conn-ol or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the Issuer as to the correctness of all statements contained therein. Section 11. Tax Covenant. (a) The Issuer covenants and agrees with the registered owners from time to time of the Bonds, that it will not take, or pennit to be taken by any of its officers, employees or agents, any action which would cause the interest payable on the Bonds to become subject to taxation under the Internal Revenue Code of 1986 (the Code) and regulations issued thereunder, in effect at the time of such action, and that it will take, or it will cause its officers, employees or agents to take, all affirmative actions within its powers which may be necessary to insure 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. The Issuer covenants that it is the owner and operator of System and will remain the owner and operator so long as any of the Bonds remain outstanding. The Issuer will not enter into any lease, management agreement, capacity agreement, use agreement or other contract with any nongovernmental party relating to the System or the security for the Bonds which would cause the Bonds to be considered "private activity bonds" or "private loan bonds" within the meaning of Section 141 of the Code, (b) The Mayor and Clerk-Administrator being the officers of the Issuer charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable Regulations stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and the applicable regulations. Appendix 1..,10- Section 12. Arbitrae-e Rebate Exemption. It is hereby found and detennined that the Bonds qualify for the "small issuer" exemption from arbittage rebate set forth in Section 148(f)(4)(D)(i) of the Code. Section 13. Oualified Tax-Exempt Obli~ations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the Issuer and all subordinate entities during calendar year 1992 does not exceed $10,000,000. Section 14. Official Statement The Official Statement relating to the Bonds, dated August~, 1992, prepared and delivered on behalf of the Issuer by Juran & Moody, Inc., is hereby approved, and the officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency thereof. k-e beLL Mayor The motion for the adeption of the foregoing resolution was duly seconded by Councilmember Hazen and upon vote being taken thereon, the following voted in favor thereof: unanimous and the following voted against the same: none whereupon the resolution ~as declared duly passed and adopted. Appendix 1 :-11-