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HomeMy WebLinkAbout12-12-06 Council PacketCITY OF OAK PARK HEIGHTS TUESDAY, DECEMBER 12, 2006 CITY COUNCIL MEETING AGENDA 7:00 P.M. 7:00 p.m. I. Call to Order/Pledge of Allegiance/Approval of Agenda Estimated times 7:05 p.m. II. Department/Council Liaison Reports A. Planning Commission B_ Parks Commission C. Cable Commission D. Water Management Organizations E. Other Liaison/Staff reports 7:10 p.m. III. Visitors/Public Comment Recycling Award This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda. (Please limit comments to 3 minutes in length.) 7:10 p.m. IV. Consent A eg nda (Roll Call Vote) A. Approve Bills & Investments B. Approval of City Council Minutes — December 4, 2006 (1) C. Approve Pay Request #3 to DNR Construction. (2) D. Accept $25,000 Park Shelter Donation from VSSA in Recognition of the Haase Family.(3) E. Adopt Resolution Promoting Intrastate Mutual Aid Agreements (4) F. Adopt Resolution Adopting National Incident Management System (5) G. Authorize Staff to Secure Valuation Data on Allen S. King Plant from D.O.R. (6) H. Approve 2007 Fire Protection Contract w/ City of Bayport (7) 1. Approve 2007 Home Occupation License Renewals (8) 7:15 p.m. V. Public Hearings None 7:15 p.m. VI. Old Business A. Oakgreen Village Plat Corrections and Annexation of Certain Baytown Township Lands — (Tim Nolde parcel) (9) B. Vacate City Easement & Establish New Easement Area — Oakgreen Village (10) C. Authorization of Trail Easement Description (11) 8:00 p.m. VII.. New Business A. Resolution Approving the 2007 Budget (12) B. Resolution Approving the 2007 Tax Levy (13) C. Tobacco Compliance Check Failures (14) Page 1 of 79 D. Updates to City Hall Kitchen — Break Room Area (15) E. Boutwell's Landing — Skilled Care Facility — Issuance of Tax Exempt Bonds (16) F. Leasing of Additional Water Tower #2 Ground Space — Sprint/Nextel (17) 9:00 pm VIII. Adjourn to Closed Session - Autumn Hills Park Shelter 9:30 p.m. IX. Reconvene to Open Session A. Autumn Hills Park Shelter 10:00 pm X. Adjourn. Page 2 of 79 Oak Park Heights Request for Council Action Meeting Date: December 12, 2006 Agenda Item Title: Recycling Award Time: 0 min. Agenda Placement Visitors/Public Comment Originating Department/Requestor Administration/Julie Johnson Requester's Signature Action Requested Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised) Page 3 of 79 CITY OF OAK PARK HEIGHTS 14168 Oak Park Boulevard No. • P.O. Box 2007 • Oak Park Heights, MN 55082-2007 • Phone: 651/439-4439 • Fax: 651/439-0574 December 4, 2006 John & Jennifer Conroy 5431 Ojib Way Oak Park Heights, Minnesota 55082 Dear Mr. & Mrs. Conroy: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of $25.00 or a fire extinguisher and/or smoke detector(s). Your residence was checked on Thursday, November 9, 2006 to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for pick-up; therefore, you are one of this month's winners. Please contact meat 439-4439 at your convenience to arrange for delivery of the reward of your choice. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Sincerely, girlie R. Yonson Administrative Secretary/Deputy Clerk Tree City U.S.A. Page 4 of 79 CITY OF OAK PARK HEIGHTS 14168 Oak Park Boulevard No. • P.O. Box 2007 • Oak Park Heights, MN 55082-2007 • Phone: 651/439-4439 • Fax: 651/439-0574 December 7, 2006 Matt & Rachel Karasek 5665 Omaha Ave. N. Oak Park Heights, MN 55082 Dear Matt & Rachel: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of $25.00 or a fire extinguisher and/or smoke detector(s). Your residence was checked on Thursday, December 7, 2006 to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for collection; therefore, you are one of this month's winners. Please contact Julie Johnson at 439-4439 at your convenience to arrange for delivery of the reward of your choice. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Congratulations! Juhe Hultman Planning & Code Enforcement Officer Tree City U.S.A. Page 5 of 79 Oak Park Heights Request for Council Action Meeting Date December 12, 2006 Agenda Item Title: Approve City Council Meeting Minutes — December 4 2006 Time: 0 min. Agenda Placement Consent Originating Department/Requestor Administration/Julie Johnson Requester's Signature Action Requested Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised) Page 6 of 79 CITY OF OAK PARK HEIGHTS 5:00 P.M., MONDAY, DECEMBER 4, 2006 TRUTH IN TAXATION HEARING MINUTES I. Call to Order: The hearing was called to order at 5:00 p.m. by Mayor Beaudet. Present: Councilmembers Abrahamson, Doerr and Swenson. Staff present: Administrator Johnson, Finance Director Holst. Absent: Councilmember McComber. II. Truth in Taxation Hearin Finance Director Holst explained the impact state regulations and cuts in state aids have on city revenues. Holst also reviewed revenue sources and General Fund expenditures. Increases in expenditures are largely due to insurance costs and inflation. Tax levy and tax capacity were reviewed. Finance Director Holst stated that some properties received no increase and some received a decrease in assessed value due to the current market conditions. Mayor Beaudet added that the average change in Oak Park Heights is a decrease of $91 in city property tax due to an increase in the commercial property tax base. Jerry Brown, resident and business property owner, stated that the city portion of his property taxes increased 10% on his home and 15% on his business. Mayor Beaudet explained that this is mainly due to an increase in the market value. Mr. Brown confirmed that his properties increased 10% in value. Steve & Lynn Thron, owners of a 4-plex rental property in Oak Park Heights, stated that the assessed value of their property increased by $100,000 and their city taxes increased by 36%. Mayor Beaudet noted that the time to appeal the assessed value has passed and suggested that Mr. & Mrs. Thron discuss the increase with Washington County. Councilmember Swenson, seconded by Councilmember Doerr, moved to close the Truth in Taxation Hearing. Carried 4- 0. Mayor Beaudet announced that budge and levy adoption would be considered at the next City Council Meeting on Tuesday, December 12, 2006 at 7:00 p.m. IL Buffalo Wild Wings — Variance/Design Guidelines Deviation (Oak Park Commons) — Resolution Establishing Findings of Fact City Administrator Johnson stated that the Resolution prepared for approval incorporated the findings of fact from the public hearing and includes additional conditions under #3. Mayor Beaudet, seconded by Councilmember Swenson, moved to approve the Resolution as presented. Roll call vote taken. Carried 4 — 0. Page 7 of 79 City Council Meeting Minutes December 4, 2006 Page 2 of 2 III. Employee Recognition Dinner Mayor Beaudet reviewed the staff recommendations for an employee recognition dinner to be held January 12, 2006. Councilmember Swenson, seconded by Councilmember Doerr, moved to approve the staff recommendations for the employee recognition dinner. Carried 4 — 0. IV. Adiournment Councilmember Doerr, seconded by Councilmember Abrahamson, moved to adjourn at 5:24 p.m. Carried 4 — 0. Respectfully submitted, Julie Johnson Administrative Secretary Approved as to Content and Form, David Beaudet Mayor Page 8 of 79 rp V l�, g, I. iii '. _. L , , 'Ryam: qi_ Lo A 'r4 % , g E NEW_ bAW, M. n. 0 Pill tq 7� FUN -oe .0 zn$ 41 k 3 Ww f * S 77 lag - ;R Ar V A mT-dF , ".7n AXIR -; Mtitt '26 N., h j, W - M, _7 &W Axe Pill H '41 wk 1W All 0 Ni -1 X_24 al , Fr.11 W-1 A XF N ll� ir Z N o A� ieaE A, V � " �,­ - If - 4 Z i -:aO. Op ig 'ok r ilk r A 4 F 9 *1 Aila 0 jl� 0 40 r mill 'i k- rill! ;-v 1!6 -1.9 �A j4 S� k W., is mk ri� lit px. :k', Will 4 'N 0, - ko OP. 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Vj 11V WAV RESOLUTION CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY MINNESOTA A RESOLUTION AUTHORIZING THE RECEIPT OF A DONATION FROM VALLEY SENIOR SERVICES ALLIANCE RECOGNIZING THE HAASE FAMILY AND DIRECTING THE FUNDS TO BE UTILIZED FOR THE CONSTRUCTION OF THE AUTUMN HILLS PARK SHELTER AND RELATED AMENITIES Whereas, In recognition of the Haase Family, Valley Senior Services Alliance wishes to donate twenty five thousand dollars to the City of Oak Park Heights to assist in the construction of the Autumn Hills Park Shelter; and, Whereas, the City of Oak Park Heights is grateful for Valley Senior Services Alliance for their donation and continued concern for the entire Oak Park Heights community. Now, therefore, be it resolved by the City Council of the City of Oak Park Heights that the City shall accept the donation of $25,000 from Valley Senior Services Alliance, in recognition of the Haase Family, and that City is authorized to expend such funds for the purposes of the development of the new Autumn Hills Park Shelter and its related amenities. Passed by the City Council for the City of Oak Park Heights this 12th day of December, 2006. Attest: Eric Johnson, City Administrator David Beaudet, Mayor Page 14 of 79 N IF R I 0 v Page 15 of 79 Resolution: RESOLUTION BY THE CITY OF OAK PARK HEIGHTS PROMOTING THE USE OF INTRASTATE MUTUAL—AID AGREEMENTS WHEREAS, Chapter 12, Section 12.331 allows for Intrastate Mutual Aid, and direct, timely assistance between jurisdictions is critical; and WHEREAS, the possibility of the occurrence of natural and other disasters of major size and destructiveness exists and is increasing; and WHEREAS, there is a need to ensure that preparations of the City of Oak Park Heights will be adequate to deal with disasters; generally protect the public peace, health, and safety; and preserve the lives and property of the people of the state; and WHEREAS, it is necessary to provide for the rendering of mutual aid among the political subdivisions of the state and to cooperate with the federal government with respect to carrying out emergency management functions; and WHEREAS, it is the policy of Minnesota that all emergency response functions of this state be coordinated to the maximum extent with the comparable functions of the state government, including its various departments and agencies, of other states and localities, and of private agencies of every type, to the end that the most effective preparations and uses may be made of the state's labor supply, resources, and facilities for dealing with any disaster that may occur; and WHEREAS, the director of each local organization for emergency management may, in collaboration with other public and private agencies within this state, develop or cause to be developed mutual—aid arrangements for reciprocal emergency management aid and assistance in an emergency or disaster too great to be dealt with unassisted. These arrangements must be consistent with the local emergency operations plan and, in time of emergency, each local organization for emergencymanagement and its members shall render assistance in accordance with the provisions of the mutual—aid arrangements; and NOW, THEREFORE, BE IT RESOLVED that City of Oak Park Heights promotes the efficiency and effectiveness of intrastate mutual aid by designating the City administrator, manager, public safety director, police chief, fire chief, public works director, or other officer who, exercising discretion and considering the needs of the political subdivision and its inhabitants, to dispatch equipment and personnel as considered necessary if a danger of fire, hazard, casualty, or another similar occurrence exists outside the political subdivision and by its suddenness it would be impractical for the governing body of the City itself to authorize the dispatch of equipment and personnel to combat that emergency or disaster. Adopted by the City Council this day of December, 2006 Attest: Eric Johnson, City Administrator Mayor David Beaudet Page 16 of 79 m F u Page 17 of 79 w �m 0 ml Resolution: DESIGNATION OF THE NATIONAL INCIDENT MANAGEMENT SYSTEM AS THE BASIS FOR ALL INCIDENT MANAGEMENT IN THE CITY OF OAK PARK HEIGHTS WHEREAS, the President of the United States of America issued Homeland Security Presidential Directive 5 to enhance the ability of the United States to manage domestic incidents by establishing a single, comprehensive national incident management system; and WHEREAS, the President, in Homeland Security Presidential Directive 5, tasked the secretary of the U.S. Department of Homeland Security to develop and administer a National Incident Management System; and WHEREAS, the secretary of the U.S. Department of Homeland Security developed and administered the National Incident Management System (NIMS) to provide for interoperability and compatibility among federal, state, and local capabilities, the NIMS will include: a core set of concepts, principles, terminology, and technologies covering the incident command system; multi—agency coordination systems; unified command; training; identification and management of resources (including systems for classifying types of resources); qualifications and certification; and the collection, tracking, and reporting of incident information and incident resources; and WHEREAS, Minnesota Governor Tim Pawlenty issued Executive Order 05-02: DESIGNATION OF THE NATIONAL INCIDENT MANAGEMENT SYSTEM (NIMS) AS THE BASIS FOR ALL INCIDENT MANAGEMENT IN THE STATE OF MINNESOTA; and WHEREAS, the collective input and guidance from all federal, state, local, and tribal homeland security partners has been, and will continue to be, vital to the development, effective implementation, and utilization of a comprehensive NIMS; and WHEREAS, it is necessary and desirable that all City agencies and personnel coordinate their efforts to effectively and efficiently provide the highest levels of incident management; and WHEREAS, the NIMS standardized procedures for managing personnel, communications, facilities, and resources will improve the ability of the City to utilize federal funding to enhance local and state agency readiness, maintain first responder safety, and streamline incident management processes; and WHEREAS, the Incident Command System components of the NIMS are already an integral part of various incident management activities throughout the City, including current emergency management training programs; and WHEREAS, the National Commission on Terrorist Attacks (9-11 Commission) recommended adoption of a standardized Incident Command System; and NOW, THEREFORE, BE IT RESOLVED that the, City Council for the City of Oak Park Heights does hereby establish. the National Incident Management System (NIMS) as the City standard for incident management. Adopted by the City Council this day of December, 2006 Attest: Eric Johnson, City Administrator Mayor David Beaudet Page 18 of 79 c y � � � �'. ���p� • �_ � �' ,� `� a , .� 9 �' � � • M. � - � -.�. � rE $moiVR� Ag dc lin 'd }2 -� T 4 ;:,mow .€ - R s,. sa r RIX r W.-" T n1v� y mak4 flj� c. Jill '�-IRA ��1 a ir a � � �-IZIVM s a p€s - LLOZ iA C'9 4 V Lap y o , Av ir, r II €M W d• • w a' ® �':� ::_� :. •�Y ��.e� I a�sn #w� '' � *yip �4 Yk ° i�'�- lll�'' -!•!1 ! . � 1 .iT,^ � Sr .:' a _d � �l P b �, � '�i ��n ipn -� i a - c � � 3`� • � ��'• • � 3 � �' _ '� p e m Q W, 9, PIE C r° m ^ i 7 4,01 I,l •+FL .� a3 k � �i fie. �Y y i p• A' •'Pmt -° P.. xk-.. �*:._.E. At vja ' Vlo A masa ya xe A 4 @ - , ., � 4 . : "M L_ V "M V 4.1 W 7A& 9'." a g N 2,* ro W re ;pl 9A. MOM V . f, &, v - "Of pr 111L�_ p. 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X ?w s,. ,a: 'i.n aa, "<` k .e,a: �* .£ ei§ .,.a ■ . • • BUDGET YEAR 2007 FAIR SHARE FORMULA = COST X % USE + % OF TOTAL VALUE 2007 Budget for Fire Department = 281,743 AVG 186 312 38 95 631 TAX CAPACITY VALUE (2 006) BAYTOWN WEST (Per Washington County Web Site) Bayport HEIGHTS 2,467,826 Oakpark Heights ASSESSED VALUE 7,485,948 Baytown Township 15.95% 3,004,681 West Lakeland Twp. 29.53% 5,883,554 TOTAL 15.06% 18,842,009 ANNUAL FIRE AND RESCUE RUNS (Provided by Scott Radke) 21.97% 2002 2003 2004 2005 Bayport 218 207 150 170 Oakpark Heights 281 286 313 366 Baytown Township 40 44 26 42 West Lakeland Twp. 98 91 98 93 TOTAL *"Fire and Rescue Runs" include false alarms and Carbon Monoxide alarms 2007 Budget for Fire Department = 281,743 AVG 186 312 38 95 631 % OF TOTAL 13.10% 39.73% 15.95% 31.23% 100.00% % OF TOTAL 29.53% 49.39% 6.02% 15.06% 100.00% 100.00% $281,743 \2007\Budget\Fire Fair Share Page 221aW06 OAK PARK BAYTOWN WEST BAYPORT HEIGHTS TOWNSHIP LAKELAND ASSESSED VALUE 13.10% 39.73% 15.95% 31.23% % OF USE 29.53% 49.39% 6.02% 15.06% 42.63% 89.12% 21.97% 46.29% DIVIDED BY 2 21.31% 44.56% 10.99% 23.14% FAIR SHARE _ $60,048 $125,539 $30,951 $65,205 REVENUE= $221,695 *"Fire and Rescue Runs" include false alarms and Carbon Monoxide alarms % OF TOTAL 13.10% 39.73% 15.95% 31.23% 100.00% % OF TOTAL 29.53% 49.39% 6.02% 15.06% 100.00% 100.00% $281,743 \2007\Budget\Fire Fair Share Page 221aW06 Oak Park Heights Request for Council Action Meeting Date: December 12, 2006 Agenda Item Title: 2007 Home Occupation License Renewals Agenda Placement: Consent Agenda Originating Department/Requestor: Julie Hultman, Administration Requester's Si Action Requested: A )Mval of 2007 Home Occupation Background/Justification: (Please indicate if any previous action has been taken or if other public bodies have advised) ➢ Renewal of Home Occupation Licenses is required annually. ➢ The following have submitted their renewal fee and seek renewal for 2007: Dave Friedrich - Welding Services Daniel Hatalla — Valley of Gifts Sharon Haynes - Beauty Salon Mark Powell - Upholstery Services Page 23 of 79 A W %J k wlvol;. �4- V V 7 A 9 4 " eT, kk• io V WW'. o —1 ;"A" 4 r ou, 'R 'IV M. -4C f� A, 5 m -if A 14 5s 74" af. 2L 94 V, J,W !ILIA S -Al If a6-, 7,4 T� U K1pie tet. 4 9 Mr- ISRU, 1- V 19 J jir. . 2T, M ell, 3W K. A IS` if& �C- if A Z-'4- tfkA is O Vp -7: W e7 1-1 p Ito IL Owl uvz 3ih" � cf," A -K k 2� Agoz. r p J— ri 4712 'L� Ilk I W !xW �X A --k -gi L MIX IKU A It N 'J �01 x —,04k A IQ, !F p!"4 j RESOLUTION NO. 2006 - CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ANNEXING BY ORDINANCE CERTAIN LANDS INTO THE CITY OF OAK PARK HEIGHTS PURSUANT TO MINNESOTA STATUTE 414.033 Subd. 2 WHEREAS, the City of Oak Park Heights has been approached by Timothy Nolde, the President of Anchobaypro, Inc., requesting annexation of certain property owned by Mr. Nolde at 5762 Oakgreen Avenue North, the same being Property I.D. No. 0502920110024, being further identified in annexed Exhibit "A" and incorporated by reference herein; and, WHEREAS, the property is presently in Baytown Township; and, WHEREAS, Anchobaypro, Inc., is the fee owner of the property, desires development of the parcel in conjunction with adjoining lands currently being developed; and, WHEREAS, the City of Oak Park Heights is presently providing and capable of providing services for municipal utilities, police, fire and related facilities and utilities and none are currently being provided by Baytown Township. NOW THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights that the City Attorney and the City Administrator herewith authorize and direct to implement procedures specified under Minnesota Statute §414.033, Subd. 2 for the annexation of the subject lands by way of ordinance. Passed by the City Council for the City of Oak Park Heights this day of September, 2006. David Beaudet, Mayor ATTEST: Eric Johnson City Administrator Page 25 of 79 EXHIBIT "A" All that part of the Northeast Quarter of the Northeast Quarter (NE 1/ of NE 1�) of Section Five (5) , Township Twenty-nine (29) , Range Twenty (20) described as follows: Beginning at a point on the South line of said Northeast Quarter of Northeast Quarter (NE 1/ of NE 1i) Three hundred eighty-five (385) feet West of the Southeast corner thereof; thence North on a line parallel with the East line thereof Eighty (80) feet to a point; thence East on a line parallel to the South line thereof Two hundred twenty-five (225) feet to a point; thence South on a line parallel with the East line thereof Eighty (80) feet to the South line thereof; thence West on the South line thereof Two hundred twenty-five (225) feet to the point of beginning; together with an easement over the North Thirty (30) feet of the South One hundred ten (110) feet of the East 385 feet of the said Northeast Quarter of the Northeast Quarter (NE 1�4 of NE 1I) for ingress and egress, County of Washington and State of Minnesota. Page 26 of 79 Page 27 of 79 F,h, F --n—, Er vi'l,,,—, 1.ac (OAKGREEN VILLAGE 5ni IACINITY MAPISEC. 5. T29N, R20W 6' MBMRIALNUSNC� Q� SII 1111 H 114,m T1, i�0�2 F t --STFE N ... ...... . 0 VIM= I'll A EF.ECSIEET 3 FGR DETAILS O UTLOTS 0, E. F AND C. -----T----------„---,--'------------------- N88 -64'09"X 3m,29 81to - -- – – – – – – – – – -- OUTLOT A OUTLOT B SM -54 9"R I 272.M S8B54'09"B 30--3 ss,2 33.01 OUTLOT e YouV.1, 2 uO o o (A SW2B'577 2MM -OUTLOT, OUTLOT It 33.02 J— '57' OUTLOT H S80.56,36"If G 12 El M F rFTF-T"l , Y =FM 0i. NfirZ6 5. b 17 —,,,,,7 -- — — — — — — — — — — Page 27 of 79 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA ORDINANCE NO. 2006 - AN ORDINANCE ANNEXING LANDS TO THE CITY OF OAK PARK HEIGHTS BEING PROPERTY I.D. NO. 0502920110024 OWNED BY ANCHOBAYPRO, INC. INTO THE CITY OF OAK PARK HEIGHTS PURSUANT TO MINNESOTA STATUTE §414.033 THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS, WASHINGTON COUNTY, MINNESOTA, DOES ORDAIN: Section 1. Annexation. Pursuant to Minn. Stat. §414.033 the City of Oak Park Heights does hereby declare certain lands annexed to the municipality as such lands are deemed to be urban or suburban in character and as the land is completely surrounded by the municipal limits of the City of Oak Park Heights, said land being Property I.D. No. 0502920110024 with property address located at 5762 Oakgreen Avenue North, Stillwater, Minnesota 55082 and legal description therefor being as set forth: All that part of the Northeast Quarter of the Northeast Quarter (NE'/4 of NE 1/4) of Section Five (5), Township Twenty-nine (29), Range Twenty (20) described as follows: Beginning at a point on the South line of said Northeast Quarter of Northeast Quarter (NE'/4 of NE 1/4) Three hundred eighty-five (385) feet West of the Southeast corner thereof; thence North on a line parallel with the East line thereof Eighty (80) feet to a point; thence East on a line parallel to the South line thereof Two hundred twenty-five (225) feet to a point; thence South on a line parallel with the East line thereof Eighty (80) feet to the South line thereof; thence West on the South line thereof Two hundred twenty-five (225) feet to the point of beginning; together with an easement over the North Thirty (30) feet of the South One hundred ten (110) feet of the East 385 feet of the said Northeast Quarter of the Northeast Quarter (NE'/4 of NE' /4) for ingress and egress, County of Washington and State of Minnesota. The foregoing lands be and therefore are hereby annexed to the City of Oak Park Heights and shall become part of the municipality as provided by law. Section 2. Effective Date. This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed by the City Council of the City of Oak Park Heights, Washington County, Minnesota, on this day of , 2006. CITY OF OAK PARK HEIGHTS Page 28 of 79 David Beaudet Attest: Eric Johnson City Administrator Page 29 of 79 C k N i'�­'rvt: L V 7'. *_A i'A �.Il Ar V-- ii�'-2 g, :,'4,;k . 2 g::'J Rr I 1- 41- qA f" sit;' 4- 17 '1149 p AN i _-A Rx: 4,1 U11.1mummum *Q w i ij W Nr - i� 21 7'Vl_r� 7 T 64, c N. 1,2 ��LM iNNY 5A W x,k �N WT Zw7 !4 0. No +: [ft- Yl 'W z 'Ito 3 W Ic 4 Ign, 6K ----- ..... �pv 4� ra k a u,VA r v 74 S& - - — - - ol NA J, 46 N, v k M u i, 'I- 14 -Z - g A" IK - XA� A" LIV 4f' -ZE -a to$7. -JU'. 3 78 �fz , . V, , , , , , , - ' �' " g- 1 1 A 7-.' kg 4 k ' 'I" I I �11 M .4 �14' it AFAK try v w i4p, e Lis r k's 41 4; mss L: N A RL. -119, iwowt �.kv� 6� Pq 31" A k - 4'm Al OM" HK i S ,.r 'W - , ka 01.1 1 ­ql 21 % , "Im., - 44 XTU :f� 447 AS` "fM fl. AfRIM gr r, "X IF XU AA 'rev % I 4�. K-1 -war 0 I 0Q, Ld Xx t �51 AUP NJ N �,v ra goy� 8 4L .. L MuffR tisk 0i Ate+ lko -4a Na, Ilk, ff. Ld Xx t �51 AUP NJ N �,v ra goy� 8 4L .. L MuffR tisk 0i Ate+ lko -4a W�. , ji ;L"v 7e I Lk �j a W I N -A , `�V "' ` � � 1� - A pg' 6j, k-, 4' V N Vemhm wekl S, N gel. p Y-J,KIt"rr T - � Q Z ® .4 w6a k, 1.4 ,Om e.— 'A" - *-A �� , '-* 6 'L 4 �& C 7 ..g" L, lip St, Oil 6 w .fir il 2V C,4jpe,I-r VN - 0i TS 2. T,— x-, -i-N 9 0 rf MI, -M WT IX -7 jr J� q�yv ........ ........ 0, JL aHIn J K, A, '. 7r, Im— 'T te w 6j* h Jx, ra J� A OR V, %Zr: .&T •.10- NP, ng,4e" fi - -- q 4-1-- 2 9 LPI 9V A4' g, C A%M'k wk & 4P 24 NK w R! -i A SAY 24,P %A11 Bonestroo Rosene Anderlik & Associates Engineers & Architects October 23, 2006 2335 West Highway 36 • St. Paul. MN 55113 Office; 651-636-4600 , Fax: 651-636-1311 www bonestroc).com Mr. Eric Johnson, Administrator City of Oak Park Heights 14168 Oak Park Boulevard P.O. Box 2007 Oak Park Heights, MN 55082-2007 Re: Swager Park Trail Extension BRA File No. 55-06-000 Dear Eric: As requested we are providing you with a proposal to produce a legal easement description for the extension of a bituminous trail from Swager Park to the Andersen Window's parking lot. The scope of work will include staking the proposed pathway alignment with City Staff, surveying the alignment for use in the easement description, performing a topographic survey and producing the legal easement description for the pathway. For the preparation of the Swager Park trail extension easement description we propose to provide the service on an hourly rate, not to exceed $3,700..00. If you have any questions please call me at my direct number, 651-604-4788. Sincerely, BONESTROO, ROSENE, ANDERLIK & ASSOCIATES INC Karen S. Erickson, P.E. cc: Tom Ozzello, Public Works Director DMP, DDH, CWL, File — Bonestroo & Associates K.\55\5506000hvord\workinprogress\jolinson_kse^proposaf for Swagger Park trail ext 10-20-06.doc St Paul. St Cloud. Rochester. MN ■ Milwaukee. W1 t Chicago. IL Affirmative Action/Equal Opportunity Employer and Employee Owned Page 33 of 79 I Page 34 of 79 Bonestroo Client: 04)t OAX k26117 --S Page: Rosene Project: Proj. No: Anderlik & Calculations For: Associates f1cotoosleb Engineers & Architects Prepared By: Ij/ Z Date: 1014ht, Reviewed. By: Date: -T 4-11-11 41-11 AU. "'d Omploy FD v, 41- 09 1 7F J RAO, IT 4* 1 r L� ENGLOSWRE Oak Park Heights Request for Council Action Meeting Date December 12, 2006 Agenda Item Title Resolution Approving the 2007 Budget Time Required 10 Minutes Agenda Placement New Business Originating Department/ Requestor Finance -Judy Holst, Deputy Clerk/ Finance Director -. t Requester's Signature Action Requested Approve Resolution for 2007 Budget Background/ Justification (Please indicate any previous action, financial implications including budget information and recommendations). A 12.2% increase is proposed for the General Fund expenditure budget. The main contributing factor to the budget increase is an increased transfers to the Budgeted Projects Fund and Street Reconstruction Fund for future capital improvements and future street reconstruction. The transfers to other funds increased $222,820 (82%). Other increases to expenditures were insurance premiums (8%), salary increases (3% to 5%), increased fuel/energy costs, and general inflation. The 2007 proposed budget amount is $3,283,930. A copy of the summary pages for the General Fund and Utility Fund are attached. One copy of the detailed Proposed Budget is available for review. Page 37 of 79 RESOLUTION 06-12-53 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2007 BUDGET WHEREAS, the City Staff has prepared and submitted to the City Council the proposed budget for calendar year 2007; and, WHEREAS, the City Council for the City of Oak Park Heights has determined that the proposed budget as submitted by the City Staff is in the best interests of the citizens of the City of Oak Park Heights. NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Oak Park Heights: That the 2007 budget is hereby approved as presented by the City Finance Director in the total General Fund amount of $3,283,930.00. Passed by the City Council for the City of Oak Park Heights this 12th day of December 2006. Attest: Eric A. Johnson Administrator David Beaudet, Mayor Page 38 of 79 Proposed 2007 General Fund Revenue & Expenditure Budget Summary % 2006 2007 Increase/ Increase/ Department Budgeted Requested Decrease Decrease Revenues: Taxes $2,406,808.00 $2,809,655.00 $402,847.00 16.74% Special Assessments $0.00 $0.00 $0.00 0.00% Business Licenses -Permits $30,340.00 $32,005.00 $1,665.00 5.49% Non -Business Licenses -Permits $142,000.00 $155,600.00 $13,600.00 9.58% Fines & Forfeits $62,000.00 $60,500.00 -$1,500.00 -2.42% Intergovernmental Revenue $96,898.00 $91,984.00 -$4,914.00 -5.07% Charges for Services $74,465.00 $68,200.00 -$6,265.00 -8.41% Miscellaneous Revenues $115,270.00 $145,390.00 $30,120.00 26.13% Totals $2,927,781.00 $3,363,334.00 $435,553.00 14.88% Expenditures: Mayor & Council $67,865.00 $75,160.00 $7,295.00 10.75% City Administration $202,945.00 $212,360.00 $9,415.00 4.64% Legal $30,000.00 $30,000.00 $0.00 0.00% General Management & Building $74,300.00 $84,400.00 $10,100.00 13.59% Elections $6,800.00 $3,390.00 -$3,410.00 -50.15% Finance $173,325.00 $220,265.00 $46,940.00 27.08% Computer $22,000.00 $22,470.00 $470.00 2.14% Audit $15,900.00 $16,500.00 $600.00 3.77% Insurance $300,935.00 $324,795.00 $23,860.00 7.93% Assessing $19,100.00 $19,035.00 -$65.00 -0.34% Planning & Zoning $58,800.00 $30,050.00 -$28,750.00 -48.89% Engineering $27,000.00 $27,000.00 $0.00 0.00% Building Inspections $120,215.00 $123,150.00 $2,935.00 2.44% Police $954,415.00 $997,700.00 $43,285.00 4.54% Fire $ 125,492.00 $133,125.00 $7,633.00 6.08% Civil Defense $5,100.00 $5,100.00 $0.00 0.00% Animal Control $1,900.00 $1,650.00 -$250.00 -13.16% Public Works -Street Maintenance $47,895.00 $51,705.00 $3,810.00 7.95% Public Works -Snow Removal $86,500.00 $93,500.00 $7,000.00 8.09% Public Works -Street Lighting $55,450.00 $60,800.00 $5,350.00 9.65% Tree Removal/Planting $35,530.00 $40,530.00 $5,000.00 14.07% Sanitation & Waste $88,500.00 $73,500.00 -$15,000.00 -16.95% Parks $127,625.00 $134,745.00 $7,120.00 5.58% Council Contingency $10,000.00 $10,000.00 $0.00 0.00% Miscellaneous Expense $0.00 $0.00 $0.00 0.00% Transfers Out $270,180.00 $493,000.00 $222,820.00 82.47% Totals $2,927,772.00 $3,283,930.00 $356,158.00 12.16% Revenues over/under expenditures $9.00 $79,404.00 12/5/2006 Page 1 Page 39 of 79 Proposed 2007 Water Utility Fund Revenue & Expenditure Summary Department 2006 Budgeted 2007 Requested Increase (Decrease) Increase/ Decrease Revenues: $6,050.00 11.08% $21,100.00 $22,700.00 Licenses & Permits $6,000.00 $3,800.00 -$2,200.00 -36.67% Charges for Services $600.00 $3,000.00 $2,400.00 400.00% Customer Collections $409,488.00 $450,400.00 $40,912.00 9.99% Miscellaneous Revenues $13,500.00 $21,000.00 $7,500.00 55.56% Totals $429,588.00 $478,200.00 $48,612.00 11.32% Expenditures: Personal Services Contractual Services Material & Supplies Fixed Charges Capital Outlay Other Expenses Totals Revenues over/under expenditures $170,050.00 $136,410.00 -$33,640.00 -19.78% $54,600.00 $60,650.00 $6,050.00 11.08% $21,100.00 $22,700.00 $1,600.00 7.58% $58,425.00 $57,605.00 -$820.00 -1.40% $3,000.00 $0.00 -$3,000.00 100.00% $131,450.00 $321,250.00 $189,800.00 144.39% $438,625.00 $598,615.00 $159,990.00 36.48% -$9,037.00 -$120,415.00 12/5/2006 Page 2 Page 40 of 79 Proposed 2007 Sewer Utility Fund Revenue & Expenditure Summary Expenditures: Personal Services $111,940.00 $86,335.00 -$25,605.00 -22.87% Contractual Services 2006 2007 Increase Increase/ Department Budgeted Requested (Decrease) Decrease Fixed Charges $39,570.00 $38,235.00 -$1,335.00 -3.37% Revenues: $10,000.00 $0.00 -$10,000.00 100.00% Licenses & Permits $1,000.00 $800.00 -$200.00 -20.00% Charges for Services $0.00 $0.00 $0.00 0.00% Customer Collections $678,750.00 $707,700.00 $28,950.00 4.27% Miscellaneous Revenues $7,800.00 $16,000.00 $8,200.00 105.13% Totals $687,550.00 $724,500.00 $36,950.00 5.37% Expenditures: Personal Services $111,940.00 $86,335.00 -$25,605.00 -22.87% Contractual Services $379,103.00 $390,930.00 $11,827.00 3.12% Material & Supplies $4,400.00 $5,250.00 $850.00 19.32% Fixed Charges $39,570.00 $38,235.00 -$1,335.00 -3.37% Capital Outlay $10,000.00 $0.00 -$10,000.00 100.00% Other Expenses $129,700.00 $190,170.00 $60,470.00 46.62% Totals $674,713.00 $710,920.00 $36,207.00 5.37% Revenues over/under expenditures $12,837.00 $13,580.00 12/5/2006 Page 3 Page 41 of 79 Proposed 2007 Storm Sewer Utility Fund Revenue & Expenditure Summary Expenditures: Personal Services $49,025.00 $17,715.00 -$31,310.00 -63.87% Contractual Services 2006 2007 Increase Increase/ Department Budgeted Requested (Decrease) Decrease Fixed Charges $6,345.00 $5,335.00 -$1,010.00 -15.92% Revenues: $200.00 $0.00 -$200.00 100.00% Customer Collections $74,170.00 $73,300.00 -$870.00 -1.17% Miscellaneous Revenues $2,600.00 $4,450.00 $1,850.00 71.15°/% Totals $76,770.00 $77,750.00 $980.00 1.28% Expenditures: Personal Services $49,025.00 $17,715.00 -$31,310.00 -63.87% Contractual Services $21,430.00 $21,240.00 -$190.00 -0.89% Material & Supplies $1,505.00 $1,575.00 $70.00 4.65% Fixed Charges $6,345.00 $5,335.00 -$1,010.00 -15.92% Capital Outlay $200.00 $0.00 -$200.00 100.00% Other Expenses $7,390.00 $5,880.00 -$1,510.00 -20.43% Totals $85,895.00 $51,745.00 -$34,150.00 -39.76% Revenues over/under expenditures -$9,125.00 $26,005.00 12/5/2006 Page 4 Page 42 of 79 Proposed 2007 Sanitation Fund Revenue & Expenditure Summary Department 2006 Budgeted 2007 Requested Increase (Decrease) Increase/ Decrease Revenues: $100.00 -$1,900.00 100.00% Other Expenses $600.00 Customer Collections $97,500.00 $97,100.00 -$400.00 -0AI% Miscellaneous Revenues $88,500.00 $73,550.00 -$14,950.00 -16.89% Totals $186,000.00 $170,650.00 -$15,350.00 -8.25% Expenditures: Contractual Services $158,700.00 $152,000.00 -$6,700.00 -4.22% Material & Supplies $2,000.00 $100.00 -$1,900.00 100.00% Other Expenses $600.00 $600.00 $0.00 0.00% Totals $161,300.00 $152,700.00 -$8,600.00 -5.33% Revenues over/under expenditures $24,700.00 $17,950.00 12/5/2006 Page 5 Page 43 of 79 Oak Park Heights Request for Council Action Meeting Date December 12, 2006 Agenda Item Title Resolution Approving the 2007 Tax Levy Time Required 5 Minutes Agenda Placement New Business Originating Department/Requestor Finance -Judy Holst, Deputy Clerk/Finance Director Requester's Signature Action Requested Approve Resolution for 2006 Tax Levies Background/ Justification (Please indicate any previous action, financial implications including budget information and recommendations) The proposed General Fund Tax Levy for 2007 is $2,789,655. This represents a 12.7% increase over the 2005 tax levy. A copy of the Resolution for the 2006 General Fund Tax Levy in the amount of $2,789,655 is attached. Page 44 of 79 RESOLUTION 06-12-52 CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION APPROVING THE 2007 GENERAL FUND LEVY WHEREAS, the City Staff has prepared and submitted to the City Council the proposed general fund levy for calendar year 2007; and, WHEREAS, the City Council for the City of Oak Park Heights has determined that the proposed general fund levy as submitted by the City Staff is in the best interests of the citizens of the City of Oak Park Heights. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Oak Park Heights that the City Administrator is hereby authorized and directed to certify to the Washington County Tax Accounting and Research Department the General Fund levy for the City of Oak Park Heights for calendar year 2007 in the amount of $2,789,655.00. Passed by the City Council for the City of Oak Park Heights this 12th day of December 2006. Attest: Eric A. Johnson Administrator David Beaudet, Mayor Page 45 of 79 a F um - 2 V. I 0 m F 7 2 m u Page 46 of 79 2 I 0 4 a37 a 1p. m Eli A -M , C il� - :41 It L s Ir F J 6L alill ol raleF'.-W 4 7 q -naivy fi A&s OV n k" - - - - - - - - - - . iM ol Ot MESA - i 5R: 4N HIM aSE J 71 JAW OF 11-1 wild El I .4 tF ............. ............. via J TWO r Will "M vmv Lill, A Z to Z, Ke m Wk� au 46 pvrr oleo W_ PC md NJ Q ji, jigA -1 I ! Ma , ill ,� - bit 'no I -m% or S' 'A i 'in W I ii.7,7% w I I . -- � lip 0 ill QW Al y %A C W a jet J 104 1R)SK SI rK S,,,Q 4 - - . I lkll W W, . 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WL AF J4 io Fla f N" x •kPI -N—v 14, j all" I Senior 'Services .11 ce 2£145 111 online Avenue North Rose011c, Nfinnesota 55113 551) 631 61 52006 Mr. Eric A. Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Boulevard North Oak Park Heights, MN 55082-2007 Subject: City Fee for VSSA Bonds Dear Eric: We wish to thank the City of Oak Park Heights for the opportunity to work with you to provide for community needs in the greater Oak Park Heights area. We continue to value and appreciate our relationship and the opportunity to work together in making a difference. The purpose of this letter is to request consideration in the fees charged VSSA by the City for a $10,000,000 allocation of tax exempt bonds. VSSA is asking if the City of Oak Park Heights would consider a .1% fee for initiating the tax exempt bonds or $10,000 and to not have annual service fees. VSSA has submitted a formal application and paid the required $3,000 application fee to initiate the bond process. We understand that in the summer of 2006 the City, adopted a new fee schedule with the option of charging up to 1 % of the amount of total proceeds and an annual service charge fee as well. We are requesting that the City consider a closing fee of .1 % of total proceeds ($10,000) and not have an „annual service fee. We are requesting this consideration because this will be a not-for-profit care center that includes Medicaid and Medicare and will serve very low income older adults, that the project is in line with our previous discussions and the comprehensive pian, that we will provide living opportunities for older adults in need and that it is important to keep the financing package and'cost as economically feasible as possible because the property rate allowed by the state is set in advance and is one that can not change. In addition, our purpose in requesting these conduit bonds is that the timing of receipt of pledges from contributions may not match up with the needs for construction draw down. Therefore, we expect that much of the proceeds from these conduit bonds are likely to be in place for a short period of time. Thanks again for the opportunity to work with the City of Oak Park Heights to help meet important needs now and in the future. Thanks, too, for your consideration in this matter. If you have questions or would like additional "information, please contact me at 651-631- 6133 or dlindh(a7preshomes.orq. Thanks again. Si cerely, �---� Dan Lindh, President a non-profit Collaborative effort of Lakeview Hospital, Croixdale, and Presbyterian Hanes & ServicesPage 50 of 79 a w I t Page 51 of 79 011 A 77,774 'm a u, i Ito, i N Page 52 of 79 Senior Housing Partners St Paul, IVIN 55113N December 6, 2006 Mr. Eric Johnson Administrator, City of Oak Park Heights Oak Park Heights, MN Dear Mr Johnson: I am writing this letter on behalf of Valley Senior Services Alliance (VSSA), which owns and operates Boutwells Landing in Oak Park Heights. On the 10th of November 2005, the city approved a general concept plan for the expansion of the current campus to include a new skilled care facility, memory care and historic village. Pursuant to this resolution (05-11-52) we are providing this letter as required to update the status of the project. 1) Skilled Care — We have completed the necessary architectural, structural and mechanical drawings an now having a construction company pricing these plans to determine construction costs and time line outcomes. Simultaneously we are also in communication and negotiation with existing nursing home owners to acquire their skilled nursing licensed beds. The state of Minnesota has a moratorium on the expansion of licensed beds and requires new facilities to acquire licensed beds from existing providers and then subsequently seek approval for relocation to a new site. Approval is most successful when the beds are acquired from local providers; however also in many cases these beds are not available or economical. We continue to actively pursue discussion and negotiations with providers to meet this need. We are optimistic that we will be successful and the pressing need to meet our increasing internal demand causes us to make this a key priority in the first quarter of 2007. Based on the continued market need, economic viability of the project, and health department approvals we are hoping to bring this project to the city for final approval in the first halt of 2007. 2) Memory Care — This is an ongoing need at the campus however the skilled care component will be first priority. We do not anticipate this before 2008 3) The historic village continues in both planning and fundraising and we anticipate this will be a project that we would like present to the city with the skilled care submission or hopefully not later than the later half of 2007 based on securing the necessary financial commitments. We think it will make a great contribution to the city as a historic landmark and important learning opportunity to area students. We would be happy to address the staff or council at your discretion to provide and further information you require. Sincerely, Allen L Black Developer/VSSA Page 53 of 79 ll 11A 0 B R I G G S M O R G A N December 6, 2006 VIA E-MAIL Eric Johnson City Administrator City of Oak Park Heights 14168 Oak Park Blvd. P.O. Box 2007 Oak Park Heights, MN 55082-2007 2200 IDS Center 80 South 8th Street Minneapolis MN 55402-2157 tel 612.977.8400 fax 612.977.8650 Re: City of Oak Park Heights, Minnesota — Skilled Nursing Care Tax Exempt Loan Participations (Boutwells Landing Care Center Project), Series 2006 Dear Eric: We have been asked to serve as Bond Counsel for a proposed issue of Skilled Nursing Care Tax Exempt Loan Participations, Series 2006 for the Boutwells Landing Care Center Project (the "Tax Exempt Loan Participations") by the City of Oak Park Heights, Minnesota (the "Issuer") to be purchased by Piper Jaffray & Co. ("Piper"). The proceeds of the Tax Exempt Loan Participations will be loaned by the Issuer to VSSA Boutwells Landing, LLC or a related entity (the "Company") and used to finance the construction and equipping of an approximately 110 -bed, 127,000 square foot skilled nursing care facility to be located at 5600 Norwich Avenue as part of the Boutwells Landing facility (the "Project"). In performing our services as Bond Counsel, our client will be the Issuer. Our principal responsibility as Bond Counsel is to provide the Issuer, the Company and Piper an expert opinion (the "Bond Opinion"), upon which each of them and the holder of the Tax Exempt Loan Participations may rely, as to (i) the validity and enforceability of the Tax Exempt Loan Participations and the Issuer's obligations under the financing documents, and (ii) exemption of interest on the Tax Exempt Loan Participations from federal and Minnesota income taxes. We will also assume principal responsibility for drafting the financing documents and any security documents agreed to by the parties. We do not expect to give any opinion with respect to the Company's participation in the financing or the status of title or the priority of any mortgage lien or security interest securing the Tax Exempt Loan Participations. As to these and other matters the parties will be relying upon the opinion to be given by counsel for the Company or upon a policy of title insurance. The Bond Counsel opinion will be executed and delivered by us in written form on the date the Tax Exempt Loan Participations are purchased and will be based on facts and law existing as of that date. Upon delivery of the Bond Opinion, our responsibilities as Bond Counsel will be concluded with respect to this financing. In rendering the Bond Opinion, we will rely upon representations of the Issuer, the Company and Piper set forth in the financing documents, the certified proceedings, and other certifications of public officials, officials of the Company and other persons (including certifications as to the use of Bond Briggs and Morgan, Professional Association Minneapolis I St.Paul I www.briggs.com 1973363v1 Member- Lex Mundi, a Global Association of Independent Law Firms Page 54 of 79 BRIGGS AND MORGAN Eric Johnson December 6, 2006 Page 2 proceeds and various tax matters) without undertaking to verify the same by independent investigation. As Bond Counsel, we do not review the financial condition of the Company or the financial feasibility of the financing, and we will express no opinion relating to the foregoing. We wish to point out to the parties that we have represented Piper from time to time on legal matters unrelated to the present financing and may do so in the future. While these representations may be "adverse" under applicable ethics rules, this letter will confirm our understanding that the parties are agreeable to our acting as Tax Exempt Loan Participations Counsel in this proposed financing notwithstanding our representation of Piper on other matters. If our understanding is not correct, please contact us. We understand that the Company will be responsible for payment of our fees and disbursements as Bond Counsel. Based upon our current understanding of the terms, structure, size and schedule of the financing represented by the Tax Exempt Loan Participations and the time we anticipate devoting to the financing, we estimate that our fee as Bond Counsel for this transaction in 2006 will be in the range of $10,000, plus out of pocket disbursements. Such fee may vary: (i) if the principal amount of Tax Exempt Loan Participations actually issued differs significantly from the amount stated above, (ii) if the manner in which the Tax Exempt Loan Participations are marketed (private placement) changes, (iii) if material changes in the structure of the financing occur, or (iv) if unusual or unforeseen circumstances arise which require a significant increase in our time or responsibility. If Tax Exempt Loan Participations are in fact issued we will submit our statements for services and disbursements to the Company at or promptly after the closing. If the transaction is cancelled before closing for whatever reason, we would then submit our bill to the Company for the time expended and disbursements made by us to the date of termination at our standard hourly rates. As set forth in Minnesota Statutes Sections 469.152 to .1651, and as will be reiterated in the documents relating to the Tax Exempt Loan Participations, the Issuer will not be liable for repayment of the Tax Exempt Loan Participations issued for the Project, and Piper will have no rights against any property or taxing powers of the Issuer. The obligations will not constitute an indebtedness of the Issuer. If the foregoing omits or misstates any item, please contact me. Otherwise, we will assume our participation as Bond Counsel and the scope of our engagement as Bond Counsel are acceptable to you. We are pleased to be working on this matter and look forward to bringing it to a successful conclusion. Sincerely, - fT Professional Association TJl /kq cc: Mark Meyer (via e-mail) Bradley Wirt (via e-mail) 19733630 Page 55 of 79 FINAL NOTE RESOLUTION CITY OF OAK PARK HEIGHTS, MINNESOTA $10,000,000 HEALTH CARE REVENUE NOTE OF 2006 (BOUTWELLS LANDING CARE CENTER PROJECT) ADOPTED: December 12, 2006 18504042 Page 56 of 79 TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS, LEGAL AUTHORIZATION AND FINDINGS ...................1 1.1 Definitions..............................................................................................................1 1.2 Legal Authorization................................................................................................2 1.3 Findings..................................................................................................................2 1.4 Authorization and Ratification of Project...............................................................3 ARTICLE2 NOTE................................................................................................................3 2.1 Authorized Amount and Form of Note...................................................................3 2.2 The Note.................................................................................................................4 2.3 Execution................................................................................................................4 2.4 Delivery of Note.....................................................................................................4 2.5 Disposition of Note Proceeds.................................................................................5 2.6 Registration of Transfer..........................................................................................5 2.7 Mutilated, Lost or Destroyed Note.........................................................................5 2.8 Ownership of Note..................................................................................................6 2.9 Limitation on Note Transfers..................................................................................6 2.10 Issuance of New Notes...........................................................................................6 ARTICLE 3 GENERAL COVENANTS..............................................................................6 3.1 Payment of Principal and Interest...........................................................................6 3.2 Performance of and Authority for Covenants.........................................................7 3.3 Enforcement and Performance of Covenants.........................................................7 3.4 Nature of Security...................................................................................................7 3.5 Designation of Qualified Tax Exempt Obligations................................................8 ARTICLE4 MISCELLANEOUS.........................................................................................8 4.1 Severability.............................................................................................................8 4.2 Authentication of Transcript...................................................................................8 4.3 Authorization to Execute Agreements....................................................................8 18504042 i Page 57 of 79 NOTE RESOLUTION BE IT RESOLVED by the City Council of the City of Oak Park Heights, Minnesota, as follows: ARTICLE 1 DEFINITIONS, LEGAL AUTHORIZATION AND FINDINGS 1.1 Definitions. The terms used herein, unless the context hereof shall require otherwise shall have the following meanings, and any other terms defined in the Loan Agreement shall have the same meanings when used herein as assigned to them in the Loan Agreement unless the context or use thereof indicates another or different meaning or intent. Act: Minnesota Statutes, Section 469.152 through .165 1, as amended; Bond Counsel: the firm of Briggs and Morgan, Professional Association, of Minneapolis, Minnesota, and any opinion of Bond Counsel shall be a written opinion signed by such Counsel; Borrower: VSSA Care Center, LLC, a Minnesota limited liability company, its successors, assigns, and any surviving, resulting or transferee business entity which may assume its obligations under the Loan Agreement; City: the City of Oak Park Heights, Minnesota, its successors and assigns; Disbursing Agreement: the Disbursing Agreement to be executed among the Borrower and the Purchaser; Land: the real property and any other easements and rights described in Exhibit A attached to the Loan Agreement; Loan Agreement: the agreement to be executed by the City and the Borrower, providing for the issuance of the Note and the loan of the proceeds thereof to the Borrower to finance the Project, including any amendments or supplements thereto made in accordance with its provisions; Note: the $10,000,000 Health Care Revenue Note of 2006 (Boutwells Landing Care Center Project), to be issued by the City pursuant to this Resolution and the Loan Agreement; Note Re ig ster: the records kept by the City Administrator to provide for the registration of transfer of ownership of the Note; 18504042 Page 58 of 79 Pledge Agreement: the agreement to be executed by the City and the Purchaser pledging and assigning the Loan Agreement to the Purchaser; Principal Balance: so much of the principal sum on the Note as has been disbursed and remains unpaid at any time; Project: (a) the acquisition of the Land which is adjacent to the Company's existing facilities located at 5600 Norwich Avenue, Oak Park heights; and (b) the construction and equipping of a 110 -bed, approximately 127,000 square foot, skilled nursing facility thereon; Project Costs: the total of all "Acquisition Costs" and "Loan and Carrying Charges," as those terms are defined in the Loan Agreement; Purchaser: Piper Jaffray & Co., a Delaware corporation, Minneapolis, Minnesota, its successors and assigns; Refunding: the issuance of bonds to redeem and refund the Note and finance the Project; Resolution: this Resolution of the City adopted December 12, 2006, together with any supplement or amendment thereto; All references in this instrument to designated "Articles," "Sections" and other subdivisions are to the designated Articles, Sections and subdivisions of this instrument as originally executed. The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Resolution as a whole not to any particular Article, Section or subdivision. 1.2 Legal Authorization. The City is a political subdivision of the State of Minnesota and is authorized under the Act to initiate the multifamily housing development herein referred to, and to issue and sell the Note for the purpose, in the manner and upon the terms and conditions set forth in the Act and in this Resolution. 1.3 Findings. The City Council has heretofore determined, and does hereby determine, as follows: (1) the City is authorized by the Act to enter into a Loan Agreement for the public purposes expressed in the Act; (2) the City has made the necessary arrangements with the Borrower for the establishment within the City of a Project as more fully described in the Loan Agreement and which will be of the character and accomplish the purposes provided by the Act, and the City has by this Resolution authorized the Project and execution of the Loan 18504042 2 Page 59 of 79 Agreement, the Pledge Agreement and the Note, which documents specify the terms and conditions of the refinancing of the Project; (3) the proceeds of the Note will be used to finance the Project Costs, including the costs and estimated costs permitted by the Act; (4) it is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of financing the Project; (5) the Note and the interest accruing thereon do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation and do not constitute or give rise to a pecuniary liability or a charge against the general credit or taxing powers of the City and neither the full faith and credit nor the taxing powers of the City is pledged for the payment of the Note or interest thereon; and (6) the Note is a "qualified 501(c)(3) bond" within the meaning of Section 145(a) of the Internal Revenue Code of 1986 (the "Code") and is to be issued within the exemption provided under Section 103(a) of the Code; provided that nothing herein shall prevent the City from hereafter qualifying the Note under a different exemption if, and to the extent, such exemption is permitted by law and consistent with the objects and purposes of the Project; and (7) the City hereby designates the Note as a "qualified tax-exempt obligation" under Section 265(b)(3) of the Code. 1.4 Authorization and Ratification of Project. The City has heretofore and does hereby authorize the Borrower, in accordance with the provisions of the Act and subject to the terms and conditions set forth in the Loan Agreement, to provide for financing the Project by such means as shall be available to the Borrower and in the manner determined by the Borrower, and without advertisement for bids as may be required for the construction and acquisition of municipal facilities; and the City hereby ratifies, affirms, and approves all actions heretofore taken by the Borrower consistent with and in anticipation of such authority. ARTICLE 2 NOTE 2.1 Authorized Amount and Form of Note. The Note issued pursuant to this Resolution shall be in substantially the form set forth on Exhibit A hereto, with such appropriate variations, omissions and insertions as are permitted or required by this Resolution, and in accordance with the further provisions hereof, and the total 18504042 Page 60 of 79 principal amount of the Note that may be outstanding hereunder is expressly limited to $10,000,000 unless a duplicate Note is issued pursuant to Section 2.7. 2.2 The Note. The Note shall be dated as of the date of delivery, shall be payable at the times and in the manner, shall bear interest at a rate not to exceed 8% per annum, and shall be subject to such other terms and conditions as are set forth in the Note on the date of delivery of the Note. Execution of the Note by the Mayor and Administrator shall constitute fixing of the interest rate and final maturity date for purposes of the Act. 2.3 Execution. The Note shall be executed on behalf of the City by the signatures of its Mayor and Administrator and shall be sealed with the seal of the City. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if it had remained in office until delivery. In the event of the absence or disability of the Mayor or the Administrator such officers of the City as, in the opinion of the City Attorney, may act in their behalf, shall without further act or authorization of the City Council execute and deliver the Note. 2.4 Delivery of Note. Before delivery of the Note there shall be filed with the Purchaser (except to the extent waived by the Purchaser) the following items: (1) an executed copy of each of the following documents: (a) the Loan Agreement; (b) the Pledge Agreement; (c) the Disbursing Agreement; (d) a Cost Certificate signed by the Borrower certifying the use of the proceeds of the Note. (2) an opinion of Counsel for the Borrower as prescribed by Bond Counsel and Purchaser; Note; 18504042 (3) the opinion of Bond Counsel as to the validity and tax exempt status of the 4 Page 61 of 79 (4) such other documents and opinions as Bond Counsel may reasonably require for purposes of rendering its opinion required in subsection (3) above or that the Purchaser may reasonably require for the closing. 2.5 Disposition of Note Proceeds. Upon delivery of the Note, the Purchaser shall, on behalf of the City, advance at least $50,000 into the Construction Fund held by the Purchaser on behalf of the City as provided in the Disbursing Agreement. Until the Refunding, no amounts in the Construction Fund (except for interest earnings thereon) may be disbursed. If the Refunding has not occurred by December 1, 2007, amounts in the Construction Fund shall be applied to prepay the Note on such date. Earnings on amounts in the Construction Fund may be disbursed to pay interest on the Note. The Purchaser or the Borrower shall provide the City with a full accounting of all funds disbursed for Project Costs. 2.6 Registration of Transfer. The City will cause to be kept at the office of the Administrator a Note Register in which, subject to such reasonable regulations as it may prescribe, the City shall provide for the registration of transfers of ownership of the Note. The Note shall be initially registered in the name of the Purchaser and shall be transferable upon the Note Register by the Purchaser in person or by its agent duly authorized in writing, upon surrender of the Note together with a written instrument of transfer satisfactory to the Administrator, duly executed by the Purchaser or its duly authorized agent. The following form of assignment shall be sufficient for said purpose. For value received hereby sells, assigns and transfers unto the within Note of the City of Oak Park Heights, Minnesota, and does hereby irrevocably constitute and appoint attorney to transfer said Note on the books of said City with full power of substitution in the premises. The undersigned certifies that the transfer be made in accordance with the provisions of Section 2.9 of the Resolution relating to the above Note. Dated: Registered Owner Upon such transfer the Administrator shall note the date of registration and the name and address of the new Purchaser in the Note Register and in the registration blank appearing on the Note. 2.7 Mutilated, Lost or Destroyed Note. In case any Note issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohibited by law, cause to be executed and delivered, a new Note of like 18504042 5 Page 62 of 79 outstanding principal amount, number and tenor in exchange and substitution for and upon cancellation of such mutilated Note, or in lieu of and in substitution for such Note destroyed or lost, upon the Purchaser's paying the reasonable expenses and charges of the City in connection therewith, and in the case of a Note destroyed or lost, the filing with the City of evidence satisfactory to the City with indemnity satisfactory to it. If the mutilated, destroyed or lost Note has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Note prior to payment. 2.8 Ownership of Note. The City may deem and treat the person in whose name the Note is last registered in the Note Register and by notation on the Note whether or not such Note shall be overdue, as the absolute owner of such Note for the purpose of receiving payment of or on account of the Principal Balance, redemption price or interest and for all other purposes whatsoever, and the City shall not be affected by any notice to the contrary. 2.9 Limitation on Note Transfers. The Note has been issued without registration under state or other securities laws, pursuant to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor may a participation interest in the Note be given pursuant to any participation agreement, except in accordance with an applicable exemption from such registration requirements. 2.10 Issuance of New Notes. Subject to the provisions of Section 2.9, the City shall, at the request and expense of the Purchaser, issue new notes, in aggregate outstanding principal amount equal to that of the Note surrendered, and of like tenor except as to number, principal amount, and the amount of the monthly installments payable thereunder, and registered in the name of the Purchaser or such transferee as may be designated by the Purchaser. ARTICLE 3 GENERAL COVENANTS 3.1 Payment of Principal and hhterest. The City covenants that it will promptly pay or cause to be paid the principal of and interest on the Note at the place, on the dates, solely from the source and in the manner provided herein and in the Note. The principal and interest are payable solely from and secured by revenues and proceeds derived from the Loan Agreement, the Pledge Agreement and the Disbursing Agreement, and which revenues and proceeds are hereby specifically pledged to the payment thereof in the manner and to the extent specified in the Note, the Loan Agreement, the Pledge Agreement and the Disbursing Agreement; and nothing in the Note or in this Resolution 1850404v2 Page 63 of 79 shall be considered as assigning, pledging or otherwise encumbering any other funds or assets of the City. 3.2 Performance of and Authority for Covenants. The City covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Resolution, in the Note executed, authenticated and delivered hereunder and in all proceedings of the City Council pertaining thereto; that it is duly authorized under the Constitution and laws of the State of Minnesota including particularly and without limitation the Act, to issue the Note authorized hereby, pledge the revenues and assign the Loan Agreement in the manner and to the extent set forth in this Resolution, the Note, the Loan Agreement, the Pledge Agreement and the Disbursing Agreement; that all action on its part for the issuance of the Note and for the execution and delivery thereof has been duly and effectively taken; and that the Note in the hands of the Purchaser is and will be a valid and enforceable special limited obligation of the City according to the terms thereof. 3.3 Enforcement and Performance of Covenants. The City agrees to enforce all covenants and obligations of the Borrower under the Loan Agreement and Disbursing Agreement, upon request of the Purchaser and being indemnified to the satisfaction of the City for all expenses and claims arising therefrom, and to perform all covenants and other provisions pertaining to the City contained in the Note and the Loan Agreement and subject to Section 3.4. 3.4 Nature of Security. Notwithstanding anything contained in the Note, the Loan Agreement, the Pledge Agreement or any other document referred to in Section 2.4 to the contrary, under the provisions of the Act the Note may not be payable from or be a charge upon any funds of the City other than the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon, nor shall the Note otherwise contribute or give rise to a pecuniary liability of the City or, to the extent permitted by law, any of the City's officers, employees and agents. No holder of the Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon, or to enforce payment thereof against any property of the City other than the revenues pledged under the Pledge Agreement; and the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; but nothing in the Act impairs the rights of the Purchaser to enforce the covenants made for the security thereof as provided in this Resolution, the Loan Agreement, the Pledge Agreement and the Disbursing Agreement, and in the Act, and by authority of the Act the City has made the covenants and agreements herein for the benefit of the Purchaser; provided that in any event, the agreement of the City to perform or enforce the covenants and other provisions contained in the Note, the Loan Agreement, the Pledge Agreement and the Disbursing 18504042 7 Page 64 of 79 Agreement shall be subject at all times to the availability of revenues under the Loan Agreement sufficient to pay all costs of such performance or the enforcement thereof, and the City shall not be subject to any personal or pecuniary liability thereon. 3.5 Designation of Qualified Tax Exempt Obligations. The Note is designated by the City as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code. ARTICLE 4 MISCELLANEOUS 4.1 Severability. If any provision of this Resolution shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions or in all cases because it conflicts with any provisions of any constitution or statute or rule or public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatever. The invalidity of any one or more phrases, sentences, clauses or paragraphs in this Resolution contained shall not affect the remaining portions of this Resolution or any part thereof. 4.2 Authentication of Transcript. The officers of the City are directed to furnish to Bond Counsel certified copies of this Resolution and all documents referred to herein, and affidavits or certificates as to all other matters which are reasonably necessary to evidence the validity of the Note. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute recitals of the City as to the correctness of all statements contained therein. 4.3 Authorization to Execute Agreements. The forms of the proposed Loan Agreement and Pledge Agreement are hereby approved in substantially the form heretofore presented to the City Council, together with such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by Bond Counsel prior to the execution of the documents, and the Mayor and of the Administrator of the City are authorized to execute the Loan Agreement and the Pledge Agreement in the name of and on behalf of the City and such other documents as Bond Counsel consider appropriate in connection with the issuance of the Note. In the event of the absence or disability of the Mayor or the Administrator such officers of the City as, in the opinion of the City Attorney, may act in their behalf, shall without further act or authorization of the City Council do all things and execute all instruments and documents required to be done or executed by such absent or disabled officers. The execution of any instrument by the appropriate officer or officers of the 18504042 g Page 65 of 79 City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. Adopted: December 12, 2006 Attest: Administrator Mayor of the City of Oak Park Heights 18504042 9 Page 66 of 79 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF OAK PARK HEIGHTS HEALTH CARE REVENUE NOTE OF 2006 (BOUTWELLS LANDING CARE CENTER PROJECT) No. R-1 $10,000,000 FOR VALUE RECEIVED the CITY OF OAK PARK HEIGHTS, Washington County, Minnesota (the "City") hereby promises to pay PIPER JAFFRAY & CO., in Minneapolis, Minnesota, its successors or registered assigns (the "Purchaser"), from the source and in the manner hereinafter provided, the principal sum of TEN MILLION AND NO/100 DOLLARS ($10,000,000), or so much thereof as has been advanced and remains unpaid from time to time (the "Principal Balance"), with interest thereon at the rate of percent (-%) per annum or at such higher rate as hereinafter provided in paragraph 1(b,) hereof, in any coin or currency which at the time or times of payment is legal tender for the payment of public or private debts in the United States of America, in accordance with the terms hereinafter set forth. (1) (a) Interest shall accrue on the Principal Balance from and after the date hereof. Interest shall be due and payable on the earlier of (i) date of the Refunding (as defined in the Resolution authorizing this Note), (ii) December 1, 2008, (iii) the date the Purchaser transfers this Note to another person through assignment or purchase, (iv) the date of payment in full of this Note, and (v) on December 1, 2036 (the 'Final Maturity Date") at which time the entire remaining Principal Balance and accrued interest shall be fully due and payable. (b) If the interest on this Note should become subject to federal income taxation pursuant to a "Determination of Taxability" as that term is defined in Section 4.07 of the Loan Agreement (the "Loan Agreement") of even date herewith between the City and VSSA Care Center, LLC, a Minnesota limited liability company (the "Borrower"), and the Purchaser delivers to the Borrower a copy of the notice of the "Determination of Taxability", the interest rate shall be immediately adjusted to be equal to ten percent (10%) and each monthly installment thereafter payable shall be accordingly adjusted. In addition the Purchaser shall be entitled to receive upon demand an amount equal to the aggregate difference between (i) the monthly payments theretofore made to the Purchaser on this Note between the "Date of Taxability", as that term is defined in Section 4.07 of the Loan Agreement, and the date of receipt by the Borrower of 18504042 A -I Page 67 of 79 notice of such "Determination of Taxability", and (ii) the monthly payments which would have been made during such period if the adjusted rate had been in effect throughout such period. (2) In any event, the payments hereunder shall be sufficient to pay all principal and interest due, as such principal and interest becomes due, and to pay any premium, at maturity, upon redemption, or otherwise. Interest shall be computed on the basis of a 360 day year but shall be payable on the actual days elapsed. (3) Principal and interest and premium due hereunder shall be payable at the principal office of the Purchaser, or at such other place as the Purchaser may designate in writing. (4) This Note is issued by the City to provide funds for a project, as defined in Section 469.153, Minnesota Statutes, consisting of the acquisition of land and the construction thereon of a 110 -bed, approximately 127,000 square foot, skilled nursing facility by the Borrower, and this Note is further issued pursuant to and in full compliance with the Constitution and laws of the State of Minnesota, particularly Section 469.152 through .1651, Minnesota Statutes, and pursuant to a resolution of the City Council duly adopted on December 12, 2006 (the "Resolution"). (5) This Note is secured by a Pledge Agreement of even date herewith by the City to the Purchaser (the "Pledge Agreement"). Amounts held by the Purchaser relating to the Note shall be disbursed pursuant to the Disbursing Agreement of even date herewith among the Borrower and the Purchaser (the "Disbursing Agreement"). The Purchaser shall authorize disbursements from the Construction Fund to or at the order of the Borrower upon compliance with the terms and conditions of the Disbursing Agreement. The Lender shall authorize disbursements from the -Construction Fund to or at the order of the Borrower upon compliance with the terms and conditions of the Disbursing Agreement. (6) The City, for itself, its successors and assigns, hereby waives demand, presentment, protest and notice of dishonor; and to the extent permitted by law, the Purchaser may extend interest and/or principal of or any service charge or premium due on this Note, or release any part or parts of the property and interest subject to any security document from the same, all without notice to or consent of any party liable hereon or thereon and without releasing any such party from such liability and whether or not as a result thereof the interest on the Note is no longer exempt from the Federal income tax. hl no event, however, may the Final Maturity Date be extended beyond December 1, 2036. (7) This Note may be prepaid in whole on any date on or after January 1, 2007 at the option of the Company, at a redemption price equal to the Principal Balance of the Note plus accrued interest thereon. The Note is subject to extraordinary mandatory redemption in whole but not in part on December 1, 2008, unless extended as provided below, if the Refunding of the Note has not occurred on or before such date, without 1850404v2 A-2 Page 68 of 79 notice, at a redemption price equal to the Principal Balance to be redeemed plus accrued interest thereon, without premium. The extraordinary mandatory redemption date shall be extended one or more times to a date not later than December 1, 2009 with the consent of the Purchaser and upon delivery to the Purchaser of an opinion of Bond Counsel to the effect that such extension will not adversely affect the tax exempt status of interest paid on the Note. (8) In the event of prepayment of this Note, the Purchaser shall apply any such prepayment first against accrued interest on the Principal Balance and then against the principal amounts due under the Note. The monthly payments due under paragraph 1 hereof, shall continue to be due and payable in full until the entire Principal Balance and accrued interest due on this Note have been paid regardless of any partial prepayment made hereunder unless otherwise agreed to by the Purchaser. (9) As provided in the Resolution and subject to certain limitations set forth therein, this Note is only transferable upon the books of the City at the office of the Administrator by the Purchaser in person or by its agent duly authorized in writing, at the Purchaser's expense, upon surrender hereof together with a written instrument of transfer satisfactory to the Administrator, duly executed by the Purchaser or its duly authorized agent. Upon such transfer the Administrator will note the date of registration and the name and address of the new registered Holder in the registration blank appearing below. The City may deem and treat the person in whose name the Note is last registered upon the books of the City with such registration noted on the Note, as the absolute owner hereof, whether or not overdue, for the purpose of receiving payment of or on the account, of the Principal Balance, redemption price or interest and for all other purposes, and all such payments so made to the Purchaser or upon its order shall be valid and effective to satisfy and discharge the liability upon the Note to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. (10) All of the agreements, conditions, covenants, provisions and stipulations contained in the Resolution, the Loan Agreement, the Pledge Agreement and the Disbursing Agreement are hereby made a part of this Note to the same extent and with the same force and effect as if they were filly set forth herein. (11) This Note and interest thereon and any service charge or premium due hereunder are payable solely from the revenues and proceeds derived from the Loan Agreement, the Pledge Agreement and the Disbursing Agreement and do not constitute a debt of the City within the meaning of any constitutional or statutory limitation, are not payable from or a charge upon any fiends other than the revenues and proceeds pledged to the payment thereof, and do not give rise to a pecuniary liability of the City or, to the extent permitted by law, of any of its officers, agents or employees, and no holder of this Note shall ever have the right to compel any exercise of the taxing power of the City to pay this Note or the interest thereon, or to enforce payment thereof against any property of the City, and this Note does not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, and the agreement of the City to perform or cause the performance of the covenants and other provisions herein referred to shall be 1850404v2 A-3 Page 69 of 79 subject at all times to the availability of revenues or other funds furnished for such purpose in accordance with the Loan Agreement, sufficient to pay all costs of such performance or the enforcement thereof. (12) It is agreed that time is of the essence of this Note. If an Event of Default (as that term is defined in the Disbursing Agreement or the Loan Agreement) shall occur, then the Purchaser shall have the right and option to declare the Principal Balance and accrued interest thereon, immediately due and payable, whereupon the same, plus any Reinvestment Charge, default prepayment, premium or service charges, shall be due and payable, but solely from sums made available under the Loan Agreement, the Pledge Agreement and Disbursing Agreement. Failure to exercise such option at any time shall not constitute a waiver of the right to exercise the same at any subsequent time. (13) The remedies of the Purchaser, as provided herein and in the Loan Agreement, the Pledge Agreement and the Disbursing Agreement are not exclusive and shall be cumulative and concurrent and may be pursued singly, successively or together, at the sole discretion of the Purchaser, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. (14) The Purchaser shall not be deemed, by any act of omission or commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Purchaser and, then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. (15) This Note has been issued without registration under state or federal or other securities laws, pursuant to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor may a participation interest in the Note be given pursuant to any participation agreement, except in accordance with an applicable exemption from such registration requirements. (16) This Note has been designated by the City as a "qualified tax-exempt obligation" for purposes of Section 165(b)(3) of the hlternal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things required to exist, happen and be performed precedent to or in the issuance of this Note do exist, have happened and have been performed in regular and due form as required by law. 1850404v2 A-4 Page 70 of 79 IN WITNESS WHEREOF, the City has caused this Note to be duly executed in its name by the manual signatures of the Mayor and Administrator and has caused the corporate seal to be affixed hereto, and has caused this Note to be dated December , 2006. Attest: Administrator (SEAL) CITY OF OAK PARK HEIGHTS, MINNESOTA Mayor 18504042 A-5 Page 71 of 79 PROVISIONS AS TO REGISTRATION The ownership of the unpaid Principal Balance of this Note and the interest accruing thereon is registered on the books of the City of Oak Park Heights in the name of the holder last noted below. Date of Registration December , 2006 Name and address Registered owner Piper Jaffray & Co. 800 Nicollet Mall, 13t" Floor Minneapolis, MN 55402 Signature of Administrator 1850404v2 A-6 Page 72 of 79 " ; - 9 .,K. 4 - "!ti . 4 1—' , a 4 -A 4 W %1 % A AV"O IV �p Orgg [I --- ,Li 7m, I lip F 0, eL" TO RR 0 Nn S" zi OR ki --F� ly! A ON N Pm h lit f x 2, OT's 418 '.1w i) kltg L P. 1A 0 IQ AL:Z q _1 AIV f�q V IS r —A � pt , 7FN F i NR r, 2 9 1-% s `'g T - -P., m. .. 3 F % ik4. v5KI-.— t � t 0 A, Or'4 w. ji. �lrl n, 5, 44� 4p Q,I- A� 4m Al Y. AI - wk, --", AIN - M N t �,:v Ye ! a' Xp. e- t'., YL1% 5 A NW, -j IT A. IF 3-41o. r L ­F� II 7L. f N -A 43 N� iv A NMI )41 ­ sk 46 19 4'. Ol 0.. Ajg 10 - v AX Al L ma 5wl - X W -A 01 mg C", 4r. 4 0 14 -AA -Al W -W 6 -%X. Yl 'LitN. pro 152 4;p, 1. IR I , J6. r VM — i *U &It N" K, & V V� Wlk 46 Al r EA k Wj­g �W! N N if 44 4T, A _27 '4q t F! K-. jel '74 %id ft, PA F I AM ON l -N um 10% y. wl k N pa WWT rmy t4 k "A A 4M .-, , " Q or lull, I; , IV, - �j -A , I IN v-, - F - 4 ,W.3 N 5.4 ot 7 UA w 49 r `AW 0A '4wo -A% 0, ji F X., Al 3'0 1. RUM 4, ., 4I� ; v , OA _% - - 'k e 4. 4 - ,,, ev IS e S=� fA, , C t IVY— iV Y A M", NFII `4 ez fe _'D 7:2 F, n;! _3L im Fa - f.i ISM" PIP r% Is F. Mli r, Ills oi IV IF IF ZIA 9 PA 'r Z ZvNI W, �9 'A" A A -fit Y 0'. IF J IF u 44FI- W_ a „mss ZAA -,J 1 j .. J, III, Ll S. V -I IF SO IF A P CIL4 Ii wn X� Kff Al - A am , Prl -4- A, A iA_ Considering that we have control of the clearances and use the existing requirements for vendors covering added maintenance costs (including engineering review and construction inspection) I believe this is in the interest of the City of Oak Park Heights. I do qualify that with the statement that the city is in need of additional safe storage areas for equipment and vehicles adjacent to city hall that must be addressed at a future date. Sprint has tentatively agreed to a lease rate of $425 per month with an annual adjustment of the CPI or 5 percent, which ever is larger. Additionally, they would commit to a minimum of 5 years, with the maximum term being until the end of the initial lease agreement with Sprint in 2023. Over the term of the lease, the City would generate approximately $131,786 in additional lease revenues from this expanded area. As mentioned above, these funds could be dedicated by the City to utility expenditure or to fund a more appropriate storage facility. At this point, we are recommending that the City move forward with additional lease arrangement with Sprint, but contingent upon the final review and approval of the design specifications and project parameters by the City Engineer as well as final approval of any written lease agreement by the City Attorney's Office. Page 75 of 79 Ne s spa a N a C Page 76 of 79 Page 77 of 79, L4 Page 78 of 79 City of Oak Park Heights Sprint Lease for Floor Area - 2007 Total Revenue $ 131,786 105% <<<--- Do not touch this formula Page 79 of 79 Annual % Increase: 5% Year Monthly Annual 1 2007 $ 425 $ 5,100 2 2008 $ 446 $ 5,355 3 2009 $ 469 $ 5,623 4 2010 $ 492 $ 5,904 5 2011 $ 517 $ 6,199 ___ 6 2012 $ 542 $ 6,509 7 2013 $ 570 $ 6,834 8 2014 $ 598 $ 7,176 9 2015 $ 628 $ 7,535 10 2016 $ 659 $ 7,912 11 2017 $ 692 $ 8,307 12 2018 $ 727 $ 8,723 13 2019 $ 763 $ 9,159 14 2020 $ 801 $ 9,617 15 2021 $ 841 $ 10,098 16 2022 $ 884 $ 10,603 17 2023 $ 928 $ 11,133 Total Revenue $ 131,786 105% <<<--- Do not touch this formula Page 79 of 79