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Home My WebLink About2007 03-20 CCPCITY OF GEM LAKE, MN City Council Agenda March 20, 2007 CALL TO ORDER - By Mayor Emeott at PM CALL OF ROLL Emeott, Artig-Swomley, Rasmussen, Schilling, Watson OTHERS IN ATTENDANCE (Attach list) APPROVAL OF CITY COUNCIL MINUTES AND AGENDA A) Minutes of City Council meeting of Feb 20, 2007 B) City Council Agenda for this meeting PUBLIC NOTICES COMMITTEE REPORTS Planning Commission — March meeting minutes City Treasurer's report — by Tom Kelly- WBT Financial Officer/Gem Lake Treasurer NEW BUSINESS A) Appointment of Council Members for Joint Vadnais Heights meetings 2 appointees and 1 alternate ? B) Resolution 2007-06 Sale of Approximately $ 785.000 General Obligation Bond C) Approval of SEH work on Sewer Maintenance procedure $ 4000 quote D) Resolution 2007-07 Sewer backup/cleanup insurance E) Resolution 2007-08 Variance to measure ground level for Building Height measurement in Hillary Farm F) Proposed 2nd amendment to Developers Agreement — Hillary Farm G) Approval of SEH work on Gem Lake MS4 report $ 8000 quote H) Resolution 2007-09 Workman's Compensation for Mayor and Council members 1) Magnuson & Associates claim for services performed Jan 17 thru Feb 2007 J) Distribution of Charitable Gambling proceeds from 2006 - $ 1832.00 OLD BUSINESS A) Tax anticipation bond ($ 100,000) -Tabled B) Hoffman Corner Oil Tobacco License public hearing - Tabled PRESENTATIONS FROM THE FLOOR FUTURE CITY EVENTS/COUNCIL MEETINGS Bid Opening for Construction of City Hall Project April 19, 2007 Next meeting — Tuesday, April 17, 7 PM — recommend we change date to Other time -Tuesday April 24,2007 7 PM ADJORNMENT Minutes of the Council Meeting ^ 20 March 2007 The March, 2007 regular meeting of the City Council of the City of Gem Lake was called to order by Mayor Emeott on Tuesday, March 20, 2007 at 7:09 p.m. in the first floor meeting room of Tousley Ford. Mayor Emeott, Councilors Rasmussen, Watson, and Artig-Swomley were present. Also present were Bonding Financial Advisor, Todd Hagen of Ehlers & Associates, Inc. and City Attorneys, Patrick Kelly and Trevor Oliver. Other members of the public were also in attendance per the sign -in sheet sent around the room. APPROVAL OF AGENDA AND MEETING MINUTES Mayor Emeott called for additions, deletions and corrections to the Agenda. No changes to the agenda were noted. The following actions were taken 1) Motion by Watson, Second by Rasmussen to accept the agenda was unanimously approved; 2) Motion by Rasmussen, Second by Artig-Swomley to approve the Minutes of the March 20, 2007 City Council Meeting was unanimously approved. PUBLIC NOTICES There were no public notices. COMMITTEES REPORTS: RESOLVED: Motion by Rasmussen, Second by Artig-Swomley to accept the written Planning Commission Report was unanimously approved. RESOLVED: Motion by Watson, Second by Artig-Swomley to accept the City Treasurer's Report was unanimously approved. NEW BUSINESS: RESOLVED: Appointment of Council Members for Joint Vadnais Heights Meetings — 2 Appointments and one Alternate: Mayor Emeott explained that the City of Vadnais Heights has agreed to having joint meetings with 2 representatives from the Vadnais Heights City Council and 2 representatives from the Gem Lake City Council present. These special meetings will be to discuss joint ventures between the two cities and services that may be needed from Vadnais Heights by Gem Lake. Emeott noted that Gem Lake is also interested in using Vadnais Height's Planner for projects on the Vadnais Heights/Gem Lake borders. In response to a question if the meetings are open to the public, Mayor Emeott stated that they are open to the public. The date for the meetings will be published on the web site. Motion by Artig-Swomley, Second by Watson to approve appointments of Council Members for Joint Vadnais Heights meetings as follows: 2 appointees: Chuck Watson and Mayor Emeott, Tom Rasmussen as an alternate: was unanimously approved. RESOLVED: Resolution 2007-06 Sale of Approximately $785,000 General Obligation Bond: Todd Hagen of Ehlers & Associates, Inc., reviewed the Pre -Sale Report for the General Obligation Capital Improvement Plan Bonds. He noted that the purpose of the Bond is for a 2007 Joint Use City Hall Building to include a city hall for the City of Gem Lake, an interim town hall during renovation for White Bear Township, and a space for a county sheriff substation. The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, to finance the 2007 capital expenditure of approximately $1,129,463, of which White Bear Township will provide one third for the Joint Use City Hall Building described in the city's 5- year Capital Improvement Plan dated February 20, 2007. Financing the Joint Use City Hall Building requires a bond issue in the amount of $785,000 and a one-third (/2) cash contribution in the amount of $376,488 from White Bear Township. Since construction bids have not been received to date, the City reserves the right to increase or decrease --� the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. The Plan gave preliminary approval for the issuance of Bonds in an amount not to exceed $850,000. Principal on the Bonds will be due on February 1 in the years 2009 through 2028. Bonds maturing February 1, 2018, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2017. Todd Ehlers noted that Pre -Sale review was done on this date; distribute official statement week of April 9; conference with rating agency — non -rated; Bond Sale: May 7, 2007, 2007; Estimated Closing Date: May. Todd Ehlers will come back on April 24`h with an adjusted bond issue. A Council Workshop will be held at 7:00 p.m., May 7, 2007 regarding the Bond Sale. In response to a question regarding the interest rate for the Bond, it was explained that it is expected to be 4.2% for a 20 year bond. Mayor Emeott explained that the $45,000 yearly payment needed in the first 10 years of bond re -payment could be met by the savings of approximately $45,000 by trimming City administration costs from last year which cost the City $96,000. Administrative services being provided by White Bear Township is proposed to be approximately $45,000 - $50,000 per year. Watson noted that this is a unique opportunity for the City of Gem Lake to partner with White Bear Township. The shared services will be good for Gem Lake and is an opportunity to keep taxes as low as possible. He noted that there were extensive meetings last December, on the Gem Lake 2007 budget and what was envisioned in the next four years financially. The only change will be in shared services and police and fire protection. Looking at the cost of administration, a clear savings was recognized in these shared services. The City is trying to be honest and fiscally responsible. In response to a question if White Bear Township needs the building, what then? The City Attorney explained that this is a unique venture and that the City of Gem Lake does not have to be afraid of absorption. Rasmussen stated that the City of Gem Lake needs a City Hall. It has been made clear in recent events that le� Gem Lake will be a more properly functioning City and the Council is working on doing that in a sensible manner. Motion by Watson, Second by Artig-Swomley to approve Resolution 2007-06 Sale of Approximately $785,000 General Obligation Bond was unanimously approved. APPROVED: S.E.H work on Sewer Maintenance procedure, $4000 quote. Unanimously approved RESOLVED: Resolution 2007-07: Sewer backup/cleanup insurance All present were informed that insurance can be purchased from the Minnesota League of Cities for this type of coverage. It was noted that a no-fault insurance policy of $10,000 per structure could be used to clean up the building damaged by a City sewer backup if the owner's insurance does not cover the clean up. To get this insurance City main sewers need to be cleaned (flushed) on a regular basis and a report of a periodic television scan of all of the sewers needs to be provided to the insurance company. Motion by Artig-Swomley, Second by Rasmussen to adopt Resolution 2007-07 Sewer backup/cleanup insurance was unanimously approved. RESOLVED: Resolution 2007-08 Variance to measure ground level for Building Height measurement in Hillary Farm: Trevor Oliver, our Citi Attorney, noted that the method of determining the building height would be included in the proposed 2° amendment to the Developers Agreement so that no Resolution was necessary RESOLVED: Proposed 2Id Amendment to Developer's Agreement — Hillary Farm: Discussion was held on the items in the proposed 2❑d amendment to the Developers agreement, prepared by the Gem Lake City attorney for the Hillary Farm development. The matter of how to measure the building height in the Hillary Farm development, that was proposed in resolution 2007-08, was included in this revised developers agreement. In response to a question regarding the detachment/annexation suit, Trevor Oliver of Kelly and Fawcett stated that with the verified amendment to the Developers Agreement the suit will be dropped. Patrick Kelly stated that there is an understanding between the parties and that all should be in order within 7 days. Motion by Rasmussen, Second by Artig-Swomley to approve the Proposed 2ad amendment to Developer's Agreement — Hillary Farm was unanimously approved by voice vote. PENDING: Approval of S.E.H work on Gem Lake MS4 Report - $8,000 quote: Mayor Emeott noted n that the City of Gem Lake is responsible for all storm water activity in the city each year and the presenting of a public report on their activity. The Gem Lake city engineer (SEH) can provide services to prepare and present this report, but the estimated cost to do this has been quoted at $8,000.00. However, there is no provision in the 2007 budget for this $8,000 expense for presenting the yearly report to the public required by the MPCA. Members of the City Council felt that this was a large sum, and wanted details on all the items that will be done as part of this quote. It was reported that SEH will also provide the use of S.E.H. reporting computerized on-line system for preparing this report presently and in the future as part of this $ 8,000.00 amount. This system could reduce the cost of doing this report next year as all activities that occur during the year can be recorded, as they occur, and a report prepared from this data. A property owner asked if there is something that a resident of Gem Lake could do, at a lower cost. The answer was "probably not" as most of work was "engineering type work". Motion by Watson, Second by Rasmussen to table approval of S.E.H. Work on Gem Lake MS4 Report - $8,000 quote was unanimously approved. SEH personnel will be invited to the May City Council meeting to further explain the costs and work involved. RESOLVED: Resolution 2007-09 Worker's Compensation for Mayor and Council Members: Motion by Artig-Swomley, Second by Watson to adopt Resolution 2007-9 Worker's Compensation for Mayor and Council Members was unanimously approved. RESOLVED: Magnuson & Associates Claim for Services Performed January 17, 2007 through February 2007: There was discussion regarding the claim for services for $ 1,770.60 for these services. Mayor Emeott noted that when Fritz Magnuson/Magnuson and Associates was terminated, he was offered a Memorandum of Understanding that provided for an agreed upon amount that would be paid in the interim period, but he did not accept the memorandum. Mayor Emeott stated that legally, the City of Gem Lake could stop paying for any services after January 16`h, because the Memorandum of Understanding was not signed. After discussion it was the consensus that no more time should be spent on the matter. Motion by Watson, Second by Rasmussen to approve Magnuson & Associates claim for services performed January 17 through February 2007 was approved by an aye vote by Watson, Artig-Swomley and Rasmussen. Nay: Mayor Emeott. PENDING: Distribution of Charitable Gambling proceeds from 2006 in the amount of $1,832.00. Tabled until next month's City Council meeting. OLD BUSINESS: RESOLVED: Tax Anticipation Bond (S100,000): Mayor Emeott noted that this bond will probably not be needed. RESOLVED: Hoffman Corner Oil Tobacco License Public Hearing. Mayor Emeott noted that the problem has been solved because the business has closed. PRESENTATIONS FROM THE FLOOR: City Treasurer report: Tom Kelly, White Bear Township Finance Officer and Gem Lake City Treasurer, introduced himself and explained the procedure which is being used to process payment of bills for Gem Lake. In response to a question regarding sewer and licensing bills which have not been received yet, Tom Kelly reported that they should be entered into the system this week and that the customers will not be held responsible for the delinquent billings. He noted that the Treasurer's Report is detailed for the Council. Tom Kelly then reviewed the list of current investments. He noted that there are three Certificate of Deposits; one in the General Fund; one in Parks and Playgrounds and one in the Sewer Fund. He noted that 2 of the CD's expire this week and one next month. In response to a question if there would be monthly reports, Mayor Emeott stated that there would be at least quarterly reports. In response to a question regarding the expenditure for planning/zoning and building inspections, it was noted that $400 was budgeted and expenditures are already at $287.00. Kelly explained that this is only the expenditures and in the future the budget will be different as there are revenues coming in to pay for inspections. In response to a question regarding the procedure for segregation of duties in the Finance Office, Tom Kelly explained that the White Bear Township Finance Officer, Accounting Clerk and Administrative Staff are all actively involved. One person is not responsible for any single procedure, and that there is always at least a second person involved. Tom Kelly reviewed the procedures for receipts and deposits and other financial activity. He explained that there is more in legal fees due to annexation issues. Kelly distributed a handout of the new computer system and explained the accounting system. In response to a question regarding payment for the Prosecuting Attorney, Kelly explained that they are reimbursed on an hourly basis and not by retainer. He noted that the Prosecutor's office handles traffic fines. The City of Gem Lake will receive money from the fines to offset this cost. There is an agreement with the Courts that a percentage will go to Gem Lake. He explained that the Courts, the County, and Gem Lake will share revenue from the fines. City Attorney's report: Patrick Kelly, City Attorney, reviewed jurisdictional issues of the Sheriff's Department. They will provide a report on what is going on. Regarding patrol of Gem Lake, Kelly stated that the City can ask for spot patrol for targeted areas. This would be part of the patrol service provided by the Sheriff's Department and the cost would not go up. In response to a question regarding the photo system for running red lights, Kelly reported that the system was not approved. Question on issuance of licenses by the City: In response to a question regarding licensing, Mayor Emeott stated that the licenses must be approved by the State and that all licenses are accounted for and have been submitted to the State. City Treasurer, Tom Kelly explained that the White Bear Town's paralegal handles all licensing procedures. FUTURE EVENTS AND COUNCIL MEETINGS: Bid Opening for Construction of City Hall Project April 19, 2007 at 10:00 AM: Request for bids will be printed in the White Bear Press and the Construction Bulletin. Next Council Meeting — Tuesday, April 17, 2007 at 7:00 p.m.: The next Council Meeting will be changed to Tuesday, April 24, 2007 so that the meeting will occur after the bid opening. Adjourn: Motion by Watson, Second by Artig-Swomley to adjourn the meeting at 9:27 p.m. AUTHORIZED: APPROVED: ATTEST: ��AT��TE��SS�T- Joan J. Clemensmeott Recording Secretary Mayor Certified Copy ATTENDEES AT THE MARCH 20, GEM LAKE CITY COUNCIL MEETING John Birkeland 2703 So Riviera Drive White Bear, MN 55110 651-341-8666 Justin Gese S.E.H. — City Engineer Beth and Steve Herzog 1433 Goose Lake Road Gem Lake, MN Bob and Kim Uzpen 3646 Big Fox Road Gem Lake 651-476-8310 Todd Hagen Ehlers & Associates, Inc. Mark Sweet 3756 Big Fox Road Gem Lake 651-653-8205 CITY OF GEM LAKE, MN .� 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 Telephone 651-747-2790 Planning Commission Minutes, 3-6-2007 Planning Commission Chair Lindner opened the March meeting at 7:OOPM. Besides Lindner, Commissioner Wippich and alternate Commissioner Beth Herzog were present. Also present were Councilwoman Gretchen Artig-Swomley, Bob Upzen, Steve Herzog, Mayor Paul Emeott, Sheila Waldoch, and several members of the Cornerstone Baptist church. Public Hearings Neither the nuisance ordinance or pawnbroker ordinance received their public hearing tonight. They will be rescheduled, hopefully for April. Cornerstone Baptist church Pastor Bob Nelson and his church would like to lease sanctuary space in Sheila Waldoch's strip mall. The rental rates are affordable and the church has plans to upgrade the space they lease. Per Zoning Administrator Emeott, the best way to allow for a church use in the retail business district is via a variance. Mr. Lindner detailed the necessary steps for the church to follow to obtain a variance. The church's main concern is their current lease expires on April 1 and they need a place to assemble. A variance requires a public hearing. The timing is problematic, but under the strict interpretation of the law, it is the best Gem Lake can do. No member of the Planning Commission was opposed to the church, but there is little else the city can do but to follow all proper deadlines and time constraints. This means the soonest they could move into the mall would be after the April City Council meeting. The Planning Commission encouraged the church to pursue their variance request. Comprehensive Plan next meeting Dan Jochum, our SEH planner, was not in attendance tonight. However, He can contact Jim Lindner and establish an agenda for the next comp plan meeting (likely to be held in April). Nuisance/Pawnbroker ordinances In spite of not holding a public hearing, City Attorney Trevor Oliver reviewed key points in both the Nuisance and Pawnbroker ordinances. While these are not necessarily land use or zoning issues, the Planning Commission is willing to take the lead in developing and refining these draft ordinances then recommend City Council approval. There is no real timeline, so they remain a work in progress. Home Occupations I't reading Attention next turned to another ordinance this one concerning home occupations. Attorney Oliver reviewed the key points on what type of home occupation might require a city license and the administrative procedures involved in obtaining one. General discussion Look for us on the World Wide Web at gemlakemn.org Both Mr. Lindner and Mayor Emeott attended a joint workshop with Vadnais Heights tonight. This meeting discussed Gem Lake buying certain city services from Vadnais Heights, mainly city planning and possibly public works. Another discussion involved a possible creation of a joint planning committee that will look at Hoffinan's Corners redevelopment. Gem Lake owns three of the four corners of the Highway 61/County Road E intersection, and Vadnais Heights owns the fourth. Yet unified planning makes sense so the intersection can be redeveloped consistently between the cities. It is likely that the committee will consist of city council members from each city with possible inclusion of others. Mr. Lindner also noted that it is likely Hartford will be at our next meeting, but it remained unclear where Hartford would be with regards to an actual submittal. Mr. Lindner adjourned the meeting at 8:50PM. Jim Lindner Planning Commission chair Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City(&,aemlakeMN.org Telephone 651-747-2790 Resolution 2007-08 Resolution Stating Agreement to Extend Effect of Former Zoning Code to Hillary Farm Subdivision WHEREAS, Hillary Farm LLC ("Hillary Farm"), a Minnesota limited liability corporation, obtained final approval for a subdivision in the City of Gem 'Lake and signed a developers' agreement in August 2004; and WHEREAS, Hillary Farm requested an extension of the statutory 2-year period in which zoning and comprehensive plan changes would not apply to the lots in the subdivision; and WHEREAS, the City of Gem Lake granted this request on December 21, 2006, with the condition that the principal of Hillary Farm, James McNulty, remain in ownership of the lots in the development; and WHEREAS, Hillary Farm has asked that the condition stated on December 21, 2006 be amended to allow the company to sell individual lots to other owners or builders; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem LAKE, Minnesota, as follows, 1. That the action taken by the City Council on December 21, 2006 granting an extension of the Minn. Stat. § 463.358 subd. 3(c) exemption to Hillary Farm is hereby rescinded. 2. That the City agrees to a period of exemption from zoning and comprehensive plan changes granted by final subdivision approval of the Hillary Farm subdivision until the date a building permit is issued for the final lot sold in the subdivision. Motion made by (Pitt 5Gui Seconded-riW1 V Adopted by the council on / / 07 --o City Clerk Mayor Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City is 2emlakeMN.m Telephone 651-747-2790 Resolution 2007-08 Resolution Stating Agreement to Extend Effect of Former Zoning Code to Hillary Farm Subdivision WHEREAS, Hillary Farm LLC ("Hillary Farm"), a Minnesota limited liability corporation, obtained final approval for a subdivision in the City of Gem Lake and signed a developers' agreement in August 2004; and WHEREAS, Hillary Farm requested an extension of the statutory 2-year period in which zoning and comprehensive plan changes would not apply to the lots in the subdivision; and WHEREAS, the City of Gem Lake granted this request on December 21, 2006, with the condition that the principal of Hillary Farm, James McNulty, remain in ownership of the lots in the development; and WHEREAS, Hillary Farm has asked that the condition stated on December 21, 2006 be amended to allow the company to sell individual lots to other owners or builders; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem LAKE, Minnesota, as follows, 1. That the action taken by the City Council on December 21, 2006 granting an extension of the Minn. Stat. § 463.358 subd. 3(c) exemption to Hillary Farm is hereby rescinded. 2. That the City agrees to a period of exemption from zoning and comprehensive plan changes granted by final subdivision approval of the Hillary Farm subdivision until the date a building permit is issued for the final lot sold in the subdivision. Motion made by �P,&&Mus�e_c1 Seconded 14 R:r i to — V DM �e_ Adopted by the council on 42 / rZo / 07 PtyyClerk Mayor Look for us on the World Wide Web at gemlakeran.org CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City cr,2emlakeMN.orP_ Telephone 651-747-2790 August 30, 2007 Daniel R. Gregerson, Esq. Gregerson, Rosow, Johnson & Nilan, LTD 1600 Park Building 650 Third Avenue South Minneapolis, Minnesota 55402-4337 Re: Hillary Farm, LLC and City of Gem Lake Dear Mr. Gregerson: Enclosed for execution on behalf of Hillary Farm, LLC, please find the following item: • City of Gem Lake Second Amendment to Developer's Agreement (5 copies); I have also enclosed an executed copy of the Resolution Stating Agreement to Extend Effect of Former Zoning Code to Hillary Farm Subdivision. After the Developer's Agreement has been executed on behalf of Hillary Farm, LLC, kindly return two (2) copies to our office for our records. Thank you for your assistance in this matter. Sincerely, PATTI S. WALSTAD Paralegal PSW/s Encls. cc:file Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE SECOND AMENDMENT TO DEVELOPER'S AGREEMENT THIS AGREEMENT (the "Second Amendment") is made this 20t" day of March, 2007 between the CITY OF GEM LAKE, a Minnesota municipal corporation (the "City") and HILLARY FARM, LLC, a Minnesota limited liability corporation ("Hillary Farm"). RECITALS WHEREAS, this City and Hillary Farm entered into a Developer's Agreement dated the 231d day of August, 2004 ("Developer's Agreement") for the development of property to be platted as Hillary Farm in the City of Gem Lake; WHEREAS, the Developer's Agreement was amended by that certain Amendment To Agreement Hillary Farm Bituminous Road Work vs. Building Permits, executed November 8, 2004 (the "First Amendment"); WHEREAS, the City passed Resolution No. 2006-23C extending the period of exemption from changes in Gem Lake Zoning Ordinance No. 43G to the date of issuance of the building permit for the final lot sold in the subdivision; WHEREAS, by Resolution 2007-08 the City removed the requirement that the extension is provided solely as long as Mr. McNulty remains the sole owner of Hillary Farm; WHEREAS, the City instituted a 15% surcharge to Hillary Farm on all of the City's consultant fees; WHEREAS, the City and Hillary Farm have agreed on the method to measure the height of the residences in Hillary Farm; and WHEREAS, Hillary Farm commenced a detachment/attachment proceeding before the State of Minnesota Office of Administrative Hearings Municipal Boundary Adjustments Unit captioned as D-441 Gem Lake/A-7467 Vadnais Heights (Hillary Farm Petition; 82 acres). NOW, THEREFORE, in consideration of Hillary Farm dismissing the above -captioned detachment/attachment proceeding and the City's adoption of Resolution No. 2007-08, the parties agree that: 1. In accordance with Resolution 2007-08 the period of exemption from changes in Gem Lake Comprehensive plan or "official control", including Zoning Ordinance No. 43I, is extended to the date of issuance of the building permit for the final lot sold in the subdivision. 2. The City shall not charge Hillary Farm any surcharge on top of the City's consultant fees. 3. The City shall calculate the height of the residences located in Hillary Farm in the same manner as the residence located at 20 Hillary Farm Lane. That method defines height to be a vertical distance measured from the ground level within five (5) feet of the front entrance of the structure to the top of the cornice of a flat roof, to the deck line of a mansard roof, to the point on the roof directly above the highest wall of a shed roof, to the upper -most point on a round or other arch type roof, to the height of the highest gable on a pitched or hip roof. 4. Hillary Farm shall be exempt from Section 22 of Ordinance 43I enacted June 19, 2006 during the period stated in paragraph 2. 5. Except as modified or amended in this Second Amendment, the Developer's Agreement as amended by the First Amendment shall remain in full force and effect. IN WITNESS WHEREOF, the parties have signed this Second Amendment to be effective the day and year first above written. CITY: CITY OF GEM LAKE By: Paul R. Emeott Its: Mayor Its: City Clerk STATE OF MINNESOTA) ) ss COUNTY OF RAMSEY ) OWNER/DEVELOPER: HILLARY FARM, LLC By: James R. McNulty, Jr. Its: Chief Manager The foregoing instrument was acknowledged before me this :;),C��4day of .jq , 2007 by Paul R. Emeott, the Mayor, and(, 1 J%,j44 F.. a ,the City Clerk of the City of Gem Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. r ' l Notary Public `�11JlJ. //✓Illllll. /.^, //. /- IJIJJIlll..11S1 STATE OF MINNESOTA) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of 2007 by James R. McNulty, Jr., the Chief Manager of Hillary Farm, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public P:\Home\Hillary Farm Development\Detachnient-Annention\Documents\Amendment to Developer's Agreement 2007 02 20.doc CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City(a�.gemlakeMN.org Telephone 651-747-2790 - Resolution 2007-08 Resolution Stating Agreement to Extend Effect of Former Zoning Code to Hillary Farm Subdivision WHEREAS, Hillary Farm LLC ("Hillary Farm"), a Minnesota limited liability corporation, obtained final approval for a subdivision in the City of Gem Lake and signed a developers' agreement in August 2004; and WHEREAS, Hillary Farm requested an extension of the statutory 2-year period in which zoning and comprehensive plan changes would not apply to the lots in the subdivision; and WHEREAS, the City of Gem Lake granted this request on December 21, 2006, with the condition that the principal of Hillary Farm, James McNulty, remain in ownership of the lots in the development; and WHEREAS, Hillary Farm has asked that the condition stated on December 21, 2006 be amended to allow the company to sell individual lots to other owners or builders; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem LAKE, Minnesota, as follows, 1. That the action taken by the City Council on December 21, 2006 granting an extension of the Minn. Stat. § 463.358 subd. 3(c) exemption to Hillary Farm is hereby rescinded. 2. That the City agrees to a period of exemption from zoning and comprehensive plan changes granted by final subdivision approval of the Hillary Farm subdivision until the date a building permit is issued for the final lot sold in the subdivision. Motion made by ka �, M L 5 S @i\ Seconded &: � CC, r S1 jbnf e_,� Adopted by the council on t7 / 10 / 0-7 ayor Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE SECOND AMENDMENT TO DEVELOPER'S AGREEMENT THIS AGREEMENT (the "Second Amendment") is made this 201h day of March, 2007 between the CITY OF GEM LAKE, a Minnesota municipal corporation (the "City") and HILLARY FARM, LLC, a Minnesota limited liability corporation ("Hillary Farm"). RECITALS WHEREAS, this City and Hillary Farm entered into a Developer's Agreement dated the 23rd day of August, 2004 ("Developer's Agreement") for the development of property to be platted as Hillary Farm in the City of Gem Lake; WHEREAS, the Developer's Agreement was amended by that certain Amendment To Agreement Hillary Farm Bituminous Road Work vs. Building Permits, executed November 8, 2004 (the "First Amendment"); WHEREAS, the City passed Resolution No. 2006-23C extending the period of exemption from changes in Gem Lake Zoning Ordinance No. 43G to the date of issuance of the building permit for the final lot sold in the subdivision; WHEREAS, by Resolution 2007-08 the City removed the requirement that the extension is provided solely as long as Mr. McNulty remains the sole owner of Hillary Farm; WHEREAS, the City instituted a 15% surcharge to Hillary Farm on all of the City's consultant fees; WHEREAS, the City and Hillary Farm have agreed on the method to measure the height of the residences in Hillary Farm; and WHEREAS, Hillary Farm commenced a detachment/attachment proceeding before the State of Minnesota Office of Administrative Hearings Municipal Boundary Adjustments Unit captioned as D-441 Gem Lake/A-7467 Vadnais Heights (Hillary Farm Petition; 82 acres). NOW, THEREFORE, in consideration of Hillary Farm dismissing the above -captioned detachment/attachment proceeding and the City's adoption of Resolution No. 2007-08, the parties agree that: 1. In accordance with Resolution 2007-08 the period of exemption from changes in Gem Lake Comprehensive plan or "official control", including Zoning Ordinance No. 43I, is extended to the date of issuance of the building permit for the final lot sold in the subdivision. 2. The City shall not charge Hillary Farm any surcharge on top of the City's consultant fees. 3. The City shall calculate the height of the residences located in Hillary Farm in the same manner as the residence located at 20 Hillary Farm Lane. That method defines height to be a vertical distance measured from the ground level within five (5) feet of the front entrance of the structure to the top of the cornice of a flat roof, to the deck line of a mansard roof, to the point on the roof directly above the highest wall of a shed roof, to the upper -most point on a round or other arch type roof, to the height of the highest gable on a pitched or hip roof. 4. Hillary Farm shall be exempt from Section 22 of Ordinance 43I enacted June 19, 2006 during the period stated in paragraph 1. 5. Except as modified or amended in this Second Amendment, the Developer's Agreement as amended by the First Amendment shall remain in full force and effect. IN WITNESS WHEREOF, the parties have signed this Second Amendment to be effective the day and year first above written. CITY: CITY OF GEM LAKE By: Paul R. Emeott Its: Mayor ME Its: City Clerk STATE OF MINNESOTA) ) ss COUNTY OF RAMSEY ) OWNER/DEVELOPER: HILLARY FARM, LLC By: J es McNult , r. Its: hief Manager The foregoing instrument was acknowledged before me this day of , 2007 by Paul R. Emeott, the Mayor, and William Short, the City Clerk of the City of Gem Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public STATE OF MINNESOTA) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this IL5±- day bvorpn rC , 2007 by R. James McNulty, Jr., the Chief Manager of Hillary Farm, LLC, Minnesota limited liability company, on behalf of the company. ypv V V �AA/�J\/1 i`%�t V �lr.Af°JL'w`�.°a/i/V''JIMNlI6/OIA. q� VTR z JENNIFER KATHLEEN THEIS Notary PUbfc-Minnesota do * ., •+v My Commission Expires Jan 31, 2010 0 0#26"k 1, U � T(S=ln otary blic i P:\Home\Hillary Farm Development\Detachment-Annexation\Documents\Amendment to Developer's Agreement 2007 11 20.doe royl a CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City(q,gemlakeMN.or Telephone 651-747-2790 Resolution 2007-07 Resolution establishing limited sewer back-up, clean-up and property damage protection for municipal sewer customers WHEREAS, the city affords municipal sanitary sewer services to many of the property owners within the city, and WHEREAS, on occasion blockages or other conditions in the city sanitary sewer lines may result in the back-up of sewage into properties that are connected to these city sanitary lines, and WHEREAS, sewer back-ups into property pose a public health and safety concern, and WHEREAS, it is not always easy to discern the exact cause and responsibility for municipal sanitary sewer back-ups, and WHEREAS, the City Council desires to encourage the expeditious clean-up or properties that have encountered sewer back-ups, and WHEREAS, the City is a member of the League of Minnesota Cities Insurance Trust, and WHEREAS, the League of Minnesota Cities Insurance Trust is making available to the city a limited "no-fault" sewer coverage that will reimburse property owners for certain clean-up cost and property damage irrespective of whether City is thought to be legally at fault. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem Lake, Minnesota, as follows. As part of the contract for the provision of sewer services to the customers of the City and in consideration of the payment of sewer bills, the City agrees to reimburse its sanitary sewer customers for up to $ 10,000 of clean-up costs and property damages caused by a sanitary sewer back-up, irrespective of whether the city is thought to be negligent or otherwise legally liable for those damages, subject to the following conditions: Look for us on the World Wide Web at geralakemn.org .-� a. The back-up must have resulted from a condition in the City's sanitary sewer system or lines, and not from a condition in a private line. b. The back-up must not have been caused by a catastrophic weather or other event for which Federal Emergency Management Assistance is available c. The back-up must not have been caused by an interruption in electric power to the city's sewer system or to any city lift station, which continues for more than 72 hours d. The back-up must not have been caused by rainfall or precipitation what would constitute a 100-year storm as determined by the National Weather Service e. Neither the city nor the League of Minnesota Cities Insurance Trust (LMCIT) will reimburse any costs which have been or are eligible to be covered under the property owner's own homeowners or other property insurance, or which would be eligible to be reimbursed under a National Flood Insurance Protection ( NFIP) policy, whether or not the property owner actually has NFIP coverage f. The maximum amount that the City or LMCIT will reimburse is $ 10,000 per building per year. In this regard, a structure of group of structures served by a single connection to the city's sewer system is considered a single building. Motion made by Seconded Adopted by the Council on City Clerk Mayor Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City(aemlakeMN.org Telephone 651-747-2790 Resolution 2007-08 Resolution to describe a Variance used to define the ground level for measuring building height in the Hillary Farm Sub -division using the City of Gem Lake Zoning Ordinance 43G WHEREAS, Hillary Farm LLC, a Minnesota limited liability corporation, wishes to have the "Building Height" of structures in Hillary Farm to be measured from other than the: 1) Curb level along the front lot line, and 2) the mean ground level for all that portion of the structure having frontage on a public right-of-way, whichever is higher, as defined in the City of Gem Lake Zoning Ordinance 43G, and WHEREAS, the City of Gem Lake is willing to change the wording of the "Building Height definition" in Zoning Ordinance 43G to measure the building height from a point on the ground within five (5) feet of the front entrance of the structure, NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem LAKE, Minnesota, as follows, A permanent variance will be used to change the Ordinance 43G text of the "Building Height" definition in Section 3.2 of Zoning Ordinance 43G to: Building Height — A vertical distance measured from the ground level within five (5) feet of the front entrance of the structure to the top of the cornice of a flat roof, to the deck line of a mansard roof, to the point on the roof directly above the highest wall of a shed roof , to the upper -most point on a round or other arch type roof, to the height of the highest gable on a pitched or hip roof. Strike-thru is deleted text Italiacs is new text Look for us on the World Wide Web at gemlakemn.org Motion made by Seconded Adopted by the council on City Clerk Mayor Look for us on the World Wide Web at gemlakemn.org CITY OF GEM LAKE, MINNESOTA PRE -SALE REPORT: G.O. CAPITAL IMPROVEMENT PLAN BONDS MARCH 20, 2007 Proposed Issue: General Obligation Capital Improvement Plan Bonds, Series 2007 Purpose: 2007 Joint Use City Hall Building to include a city hall for the City of Gem Lake, an interim town hall during renovation for White Bear Township, a site of voting in all elections for both the City and Township, and a space for a county sheriff substation. Description: The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, to finance the 2007 capital expenditure of approximately $1,129,463 for the Joint Use City Hall Building described in the City's 5-Year Capital Improvement Plan dated February 20, 2007. Financing the Joint Use City Hall Building requires a bond issue in the amount of $785,000 and a one-third (1/3) cash contribution in the amount of $376,488 from White Bear Township. The proposed finance plan consists of the sources and uses of funds attached to this Report. Adjustments: Since construction bids have not been received to date, the City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. The Plan gave preliminary approval for the issuance of Bonds in an amount not to exceed $850,000. Term/Call Feature: Principal on the Bonds will be due on February 1 in the years 2009 through 2028. Bonds maturing February 1, 2018, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2017. Prepared by Ehlers & Associates, Inc. Rating: The Bonds are expected to be non -rated. Funding Sources: The Bonds are general obligations of the City and as such are secured by a pledge of the City's full faith, credit, and taxing powers. Under Minnesota Statutes, Section 475.521, the City has levied taxes in the year 2006 in anticipation of this financing and further intends to levy taxes in the years 2007 through 2026, for collection in the years 2008 through 2027. Discussion Issues: Principal payments maturing in 2009 through 2017 are structured to maintain a level tax levy in the amount of approximately $45,000 per year. Principal payments maturing in 2018 through 2028 are structured to maintain a level tax levy in the amount of approximately $75,000 per year. The first interest payment on the Bonds will be February 1, 2008, and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds are attached to this Report. We have reviewed all outstanding indebtedness for the City and find that there are no immediate refunding opportunities for the City at this time. We will continue to monitor the market and the call dates for the City and alert you to any future opportunities. Bank Qualified: The City will not be issuing more than $10,000,000 in direct or 501 (c) (3) conduit financings, therefore the Bonds will be "bank qualified". Bank qualified status broadens the market and achieves lower interest rates. Prepared by Ehlers & Associates, Inc. Schedule: Pre -Sale Review: Distribute Official Statement: Conference with Rating Agency Bond Sale: Estimated Closing Date: Attachments: March 20, 2007 Week of April 9 Non -Rated April 17, 2007 May Sources and Uses of Funds Proposed Debt Service Schedule Bond Buyer Index Resolution authorizing Ehlers to proceed with bond sale Ehlers Contacts: Financial Advisors: Todd Hagen (651) 697-8508 Jerry Shannon (651) 697-8554 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Connie Kuck (651) 697-8527 Coordinator: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. Prepared by Ehlers & Associates, Inc. /-IN, City of Gem Lake, Minnesota $785,000 General Obligation Capital Improvement Plan Bonds, Series 2007 (Joint Use City Hall Project) -Full Competitive Sale/20 Year Level @ $45K/Year Balloon - Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 05/01/2007 _ _ 02/01/2008 24,399.38 24,399.38 24,399.38 08/01/2008 - - 16,266.25 16,266.25 - 02/01/2009 15,000.00 3.800% 16,266.25 31,266.25 47,532.50 08/01/2009 - - 15,981.25 15,981.25 - 02/01/2010 15,000.00 3.800% 15,981.25 30,981.25 46,962.50 08/01/2010 - 15,696.25 15,696.25 - 02/01/2011 15,000.00 3.800% 15,696.25 30,696.25 46,392.50 08/01/2011 - - 15,411.25 15,411.25 - 02/01/2012 15,000 00 ......... 3.850% 15,411.25 ......... 30,411.25 45,822.50 08/01 /2012 15,122.50 ........ .......... 15,122.50 _. 02/01/2013 15,000.00 3.850% 15,122.50 30,122.50 45,245.00 08/01/2013 - - 14,833.75 14,833.75 - 02/01/2014 15,000.00 3.900% 14,833.75 29,833.75 44,667.50 08/01/2014 - 14,541.25 14,541.25 02/01/2015 15,000.00 3.950% 14,541.25 29,541.25 44,082.50 08/01/2015 - - 14,245.00 14,245.00 - 02/01/2016 15,000.00 4.000% 14,245.00 29,245.00 43,490.00 08/01/2016 - - 13,945.00 13,945.00 - 02/01/2017 20,000.00 4.000% 13,945.00 33,945.00 47,890.00 08/01/2017 - - 13,545.00 13,545.00 - 02/01/2018 45,000.00 4.050% 13,545.00 58,545.00 72,090.00 08/01/2018 - - 12,633.75 12,633.75 - 02/01/2019 50,000.00 4.100% 12,633.75 62,633.75 75,267.50 08/01/2019 - - 11,608.75 ................. .._. . __... ......... 11,608.75 - 02/01/2020 50,000.00 4.150% 11,608.75 61,608.75 ......... 73,217.50 08/01/2020 - 10,571.25 10,571.25 - 02/01/2021 55,000.00 4.150% 10,571.25 65,571.25 76,142.50 08/01/2021 - - 9,430.00 9,430.00 - 02/01/2022 55,000.00 4.200% 9,430.00 64,430.00 11 73,860..00 111 08/01/2022 - - 8,275.00 8,275.00 - 02/01/2023 60,000.00 4.200% 8,275.00 68,275.00 76,550.00 08/01/2023 - - 7,015.00 7,015.00 - 02/01/2024 60,000.00 4.200% 7,015.00 67,015.00 74,030.00 08/01/2024 - 5,755.00 5,755.00 - 02/01/2025 65,000.00 4.250% 5,755.00 70,755.00 76,510.00 08/01/2025 - - 4,373.75 4,373.75 - 02/01/2026 65,000.00 4.250% 4,373.75 69,373.75 73,747.50 08/01/2026 - - 2,992.50 2,992.50 - 02/01/2027 70,000 00 4.250% ° .._........ 2,992.50 .............. 72,992.50 ..... 75,985.00 08/01/2027 - - 1,505.00 1,505.00 02/01/2028 70,000.00 4.300% 1,505.00 71,505.00 73,010.00 Total $785,000.00 $471,894.38 $1,256,894.38 07 CIP 20 (45K) Balloon 2 1 SINGLE PURPOSE 1 3/15/2007 1 3:03 PM lll� le� i ti _ 0 a c N N t L G LO O M O — N o _A o W W :.. M M N oa — M o a d' 0 th N t N �o _ t L - Z ClO G � C 0 (n m O Q 0 _ m LL co V _ O O ON C0 N o 0 0 o p O O O O p °q coV u) LO iri N O CD i l i �o N � r f6 N Or •:: CO CD O Cl) i O� — O W ol • O O 00 0 { - O Z � r - cp d- ( Ol W - m �r' m00 ax cb� Z N m COcP L m ( L ¢' (�` N o p CO m W f ti r W C� N >i "Inw, cN 00 E O c U L p ((]]�� W Q i i 4 9 Q i , O O M ti Cfl LO d- % IUGOJGd Resolution No. ZO-, Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of Approximately $785,000 General Obligation Capital Improvement Plan Bonds, Series 2007 A. WHEREAS, the City Council of the City of Gem Lake, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue approximately $785,000 of the City's General Obligation Capital Improvement Plan Bonds, Series 2007 (the "Bonds"), to finance the 2007 capital expenditure of approximately $1,129,463 for the Joint Use City Hall Building described in the City's 5- Year Capital Improvement Plan dated February 20, 2007; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Gem Lake, Minnesota, as follows: 1. Authorization; Findin-s. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting, Proposal O Opening. The City Council shall meet at 7:00 p.m. on � , 2007, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 201h day of March, 2007. N:\Minnsota\Gem Lake\07 Cty Hall\Pre-Sale Reportmpd ,`—\ City Clerk i' CD Y c� st- ll) ►fy l(C IN M M M j coo Goo coo w M M N Y M Ci Il- ti ti ti r- Cn LO N N co C* G) L N 6 - N 6) co Et} M E? co H3 Go 6!)- U � w w a> H FO- FO- L o O N CO O N O o N CO L R O O O y O O O m rn O 00 rn N d L a1 c O O O CD a) Q) N > w 0 O O O cv cv c6 d > N U O U a) U co ti m rn 00 ti C)E Cm) o O N U) O O > C O COO CDN CY) co � O O cz � C N U- C: o L cn En Q > ( ^^� LL a> i_ LL 15- C L O LU L G a) U) Qi D U LL CD c� a to CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail Ci r d_)gemlakeMN.orgg Telephone 651-747-2790 Resolution 2007-08 Resolution Stating Agreement to Extend Effect of Former Zoning Code to Hillary Farm Subdivision WHEREAS, Hillary Farm LLC ("Hillary Farm"), a Minnesota limited liability corporation, obtained final approval for a subdivision in the City of Gem Lake and signed a developers' agreement in August 2004; and WHEREAS, Hillary Farm requested an extension of the statutory 2-year period in which zoning and comprehensive plan changes would not apply to the lots in the subdivision; and WHEREAS, the City of Gem Lake granted this request on December 21, 2006, with the •� condition that the principal of Hillary Farm, James McNulty, remain in ownership of the lots in the development; and WHEREAS, Hillary Farm has asked that the condition stated on December 21, 2006 be amended to allow the company to sell individual lots to other owners or builders; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Gem LAKE, Minnesota, as follows, 1. That the action taken by the City Council on December 21, 2006 granting an extension of the Minn. Stat. § 463.358 subd. 3(c) exemption to Hillary Farm is hereby rescinded. 2. That the City agrees to a period of exemption from zoning and comprehensive plan changes granted by final subdivision approval of the Hillary Farm subdivision until the date a building permit is issued for the final lot sold in the subdivision. Motion made by Seconded Adopted by the council on City Clerk Mayor Look for us on the World Wide Web at gemlakeran.org �f'IJANflf 'F' "` %iv1iN54TA CITY OF GEM LAKE, MINNESOTA PRE -SALE REPORT: G.O. CAPITAL IMPROVEMENT PLAN BONDS T - • Proposed Issue: General Obligation Capital Improvement Plan Bonds, Series 2007 Purpose: 2007 Joint Use City Hall Building to include a city hall for the City of Gem Lake, an interim town hall during renovation for White Bear Township, a site of voting in all elections for both the City and Township, and a space for a county sheriff substation. Description: The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, to finance the 2007 capital expenditure of approximately $1,129,463 for the Joint Use City Hall Building described in the City's 5-Year Capital Improvement Plan dated February 20, 2007. Financing the Joint Use City Hall Building requires a bond issue in the amount of $785,000 and a one-third (1/3) cash contribution in the amount of $376,488 from White Bear Township. The proposed finance plan consists of the sources and uses of funds attached to this Report. Adjustments: Since construction bids have not been received to date, the City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. The Plan gave preliminary approval for the issuance of Bonds in an amount not to exceed $850,000. Term/Call Feature: Principal on the Bonds will be due on February 1 in the years 2009 through 2028. Bonds maturing February 1, 2018, and thereafter will be subject to prepayment at the discretion of the City on February 1, 2017. Prepared by Ehlers & Associates, Inc. Rating: The Bonds are expected to be non -rated. Funding Sources: The Bonds are general obligations of the City and as such are secured by a pledge of the City's full faith, credit, and taxing powers. Under Minnesota Statutes, Section 475.521, the City has levied taxes in the year 2006 in anticipation of this financing and further intends to levy taxes in the years 2007 through 2026, for collection in the years 2008 through 2027. Discussion Issues: Principal payments maturing in 2009 through 2017 are structured to maintain a level tax levy in the amount of approximately $45,000 per year. Principal payments maturing in 2018 through 2028 are structured to maintain a level tax levy in the amount of approximately $75,000 per year. The first interest payment on the Bonds will be February 1, 2008, and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds are attached to this Report. We have reviewed all outstanding indebtedness for the City and find that there are no immediate refunding opportunities for the City at this time. We will continue to monitor the market and the call dates for the City and alert you to any future opportunities. Bank Qualified: The City will not be issuing more than $10,000,000 in direct or 501 (c) (3) conduit financings, therefore the Bonds will be "bank qualified". Bank qualified status broadens the market and achieves lower interest rates. Prepared by Ehlers & Associates, Inc. Schedule: Pre -Sale Review: Distribute Official Statement: Conference with Rating Agency: Bond Sale: Estimated Closing Date: Attachments: March 20, 2007 Week of April 9 Non -Rated April 17, 2007 May Sources and Uses of Funds Proposed Debt Service Schedule Bond Buyer Index Resolution authorizing Ehlers to proceed with bond sale Ehlers Contacts: Financial Advisors: Todd Hagen (651) 697-8508 Jerry Shannon (651) 697-8554 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Connie Kuck (651) 697-8527 Coordinator: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. 0 Prepared by Ehlers & Associates, Inc. �11� 11 '� I Citv of Gem Lake, Minnesota $785,000 General Obligation Capital Improvement Plan Bonds, Series 2007 (Joint Use City Hall Project) -Full Competitive Sale/20 Year Level @ $45K/Year Balloon - Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 05/01/2007 - - 02/01/2008 24,399.38 24,399.38 24,399.38 08/01/2008 - - 16,266.25 16,266.25 - 02/01/2009 15,000.00 3.800% 16,266.25 31,266.25 47,532.50 08/01/2009 15,981.25 15,981.25 - 02/01/2010 15,000.00 3.800% 15,991.25 30,981.25 46,962.50 08/01/2010 - - 15,696.25 15,696.25 - 02/01/2011 15,000.00 3.800% 15,696.25 30,696.25 46,392.50 08/01/2011 - - 15,411.25 15,411.25 - 02/01/2012 _......... ................. 15 000 .......... .. ........... 00 3.850% 15 411.25 30,411.25 45,822.50 08/01/2012 - - 15,122.50 15,122.50 - - 02/01/2013 15,000.00 3.850% 15,122.50 30,122.50 45,245.00 08/01/2013 - - 14,833.75 14,833.75 - 02/01/2014 15,000.00 3.900% 14,833.75 29,833.75 44,667.50 08/01/2014 - - 14,541.25 14,541.25 - 02/01/2015 15,000.00 3.950% 14,541.25 29,541.25 44,082.50 08/01/2015 - - 14,245.00 14,245.00 - 02/01/2016 15,000.00 4.000% 14,245.00 29,245.00 43,490.00 08/01/2016 - - 13,945.00 13,945.00 - 02/01/2017 ......... 20,000.00 4.000% 13,945.00 33,945.00 47,890.00 . _ .. ........ .............. 08/01/2017 - - 13,545.00 13,545.00 02/01/2018 45,000.00 4.050% 13,545.00 58,545.00 72,090.00 08/01/2018 - - 12,633.75 12,633.75 - 02/01/2019 50,000.00 4.100% 12,633.75 62,633.75 75,267.50 08/01/2019 - - 11,608.75 11,608.75 - 02/01/2020 50,0100.1.0 1.0 4.150% 11,608.75 6-1,608.75 73,217.5 1.0 08/01/2020 - - 10,571.25 10,571.25 - 02/01/2021 55,000.00 4,150% 10,571.25 65,571.25 76,142.50 08/01/2021 - - 9,430.00 9,430.00 - 02/01/2022 55,000.00 4.200% 9,430.00 64,430.00 73,860.00 08/01/2022 - - 8,275.00 8,275.00 - 02/01/2023 60,000.00 4.200% 8,275.00 68,275.00 76,550.00 08/01/2023 - - 7,015.00 7,015.00 - 02/01/2024 60,000.00 4.200% 7,015.00 67,015.00 74,030.00 08/01/2024 - - 5,755.00 5,755.00 - ............. ..........._ 02/01/2025 65,000.00 4.250% 5,755.00 70,755.00 76,510.00 08/01/2025 - 4,373.75 4,373.75 - 02/01/2026 65,000.00 4.250% 4,373.75 69,373.75 73,747.50 08/01/2026 - - 2,992.50 2,992.50 - 02/01/2027 70,000.00 4.250% 2,992.50 72,992.50 75,985.00 _ 08/01/2027 - - ..... 1,505.00 .. 1,505.00 - 02/01/2028 70,000.00 4.300% 1,505.00 71,505.00 73,010.00 Total $785,000.00 - $471,894.38 $1,256,894.38 07 CIP 20 (45K) Balloon 2 1 SINGLE PURPOSE 1 3/15/2007 1 3:03 PM i R 0 M v c 0 co u) a c a c 0 ro aci m a 0 N a c 0 ao 0 N. aki a i d a CO a c 0 Q 0 0 0 0 0 0 0 0 V N O W CO 7 N LO u7 �r) 't V V 7 X W 0 z W m 0 z O m a W W LL z W H �t c� N o m m ti (D LO � % IUOOJOd o) o`er Q` o° �o Clb oA 00 cp off` Co cg� C� 00 (bo RA 00 (�K �� ti 0 0 N N 00 0- co 0 4 x a� m c 0 m Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of Approximately $785,000 General Obligation Capital Improvement Plan Bonds, Series 2007 A. WHEREAS, the City Council of the City of Gem Lake, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue approximately $785,000 of the City's General Obligation Capital Improvement Plan Bonds, Series 2007 (the "Bonds"), to finance the 2007 capital expenditure of approximately $1,129,463 for the Joint Use City Hall Building described in the City's 5- Year Capital Improvement Plan dated February 20, 2007; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Gem Lake, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at 7:00 p.m. on April 17, 2007, for the purpose of considering proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof. and the following voted against the same: Whereupon said resolution was declared duly passed and adopted Dated this 20"' day of March, 2007. City Clerk N:\Minnsota\Gem Lake\07 Cty Hall\Pre-Sale Reportmpd �a From: James Lindner <lindner1858@yahoo.com> To: pemeott@comcast.net Subject: Re: Public hearing Date: Thursday, March 15, 2007 9:17:50 PM Thanks for acting on the public hearings. I did hear from the church about a week ago. Bob Nelson (I think that was the pastor's name) called me to express dismay that the mayor and council had already decided to vote against the church. He said as a result they would not be pursuing their variance request. I told him I was very surprised that the mayor and council would make such a statement (I also had a hard time believing him since the council had not met). I wonder if Bryan Hansen fed him a line of BS and the good reverend bought into it. I suggested he and his church appear at the council meeting on the 20th to confirm this idea that they would not receive their variance under any circumstances. I said if nothing else he could meet the council directly and make an appeal or at least take a straw poll on the matter. He said he might just do that. So, I'm not sure what is going on with the church. The mood of the Planning Commission wassympathetic, though we were not willing to short circuit the process to get this church set up before Easter Sunday. I'd be really curious to learn his source for the news about you and the council not wanting his church in Gem Lake. Visions of Bryan planting a bug in his ear came to me as he was making his claims. CITY OF GEM LAKE, MN 4707 Hwy 61 # 253 White Bear Lake, MN 55110-3227 E-mail City(&jzemlakeMN.ora Telephone 651-747-2790 Resolution 2007-09 Workman/s Compensation for Mayor and Council members WHEREAS, the law enables elected or appointed officials of the city to be covered, and WHEREAS, the Mayor and City Council Members intent is that they may be included as employees, NOW THEREFORE, be it resolved that the Mayor and Council members of the City of Gem Lake be covered by Minnesota Worker's Compensation Motion made by Seconded Passed Did not pass Date Clerk Mayor Look for us on the World Wide Web at gemlakemn.org 1rJ - `41 rHULL 1 5LH I tN � 65142E L.EACiL.[Fu OF MN ' I T I EE N0.e36 P002 EXAMPLE OF RESOLUTION: WHEREAS, the law enables elected or appointed officials of the city to be covered; and WHEREAS, the Mayor & Council Members intent is that they will 'e included as employees: NOW TREK ORE BE IT RESOLVED that the Mayor & Council Members of the CITY OF be covered by the Minnesota Workers' Compensation h TOTPL �,ka,