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Home My WebLink About2007-11-14 CC Packet - Set Agenda tervi{{e 'Estafiislietf 189 CITY COUNCIL WORK SESSIONS & MEETING AGENDA COUNCIL WORK SESSION MEETING 1. Roll Call Wednesday, November 14, 2007 6:00 p.m. or Shortly Thereafter (W ork Session Prior and Following Regular Meeting) Set Agenda = Red Items I. CALL TO ORDER II. ITEMS OF DISCUSSION 1. Interview with Mr. Roland Parrcecci- P & Z Candidate (page 1) III. CONVENE TO COUNCIL MEETING COUNCIL MEETING I. CALL TO ORDER 1. Roll Call II. PUBLIC HEARINGS 1. Wellhead Protection Plan 2. Downtown Environmental Assessment Worksheet III. APPROVAL OF AGENDA IV. APPROVAL OF COUNCIL MINUTES 1. October 24, 2007 City Council Work Session Meeting Minutes (page 2-3) 2. October 24, 2007 City Council Meeting Minutes (pages 4-8) 3. October 24, 2007 City Council Work Session Meeting Minutes (pages 9-13) V. CONSENT AGENDA 1. City of Centerville October 25, 2007 through November 14, 2007 Claims (page 14 & 14a) 2. Centennial Fire District Claims Through November 7, 2007 (page 15) 3. Centennial Lakes Police Department Claims Through November 7, 2007 (pages 16-17) 4. Annual Contract Renewal for 2008 - Embedded Systems, Ine. (Tornado Sirens Maintenance) - S37.95/SirenIMonth (page 18) 5. Annual Addendum to Service Contract for 2008 - TimeSaver (Recording Secretary Services) - 3% Increase (pages 19-20) 6. Successful Performance Review & Completion of Year 3, Mr. John Meyer, Finance Director VI. A W ARDS/PRESENT ATIONS/ APPEARANCES VII. OLD BUSINESS VIII. NEW BUSINESS 1. Res. #07-0XX - Delinquent Sewer/Water/Garbage Services Certification/ Assessments for 2008 (Pages 22- 25) 2. Res. #07-0XX - City Grass Mowing Services Certification/Assessments for 2008 (Pages 26-27) 3. Proposal to Repair & Upgrade Well #1 Pump House (Page 28) 4. Eagle Pass Townhome Request for Additional Street Lighting Within the Development (Page 29) 5. Planning & Zoning Recommendation -1588 & 1580 Sorel Street (Hansen/Marshall) Request for Subdivision/Re-Platting of Lot Lines (pages 30-32 & ) a. Res. #07-0XX - Scheduling Public Hearing to Consider Vacation of Easements (Page 33) 6. Consider Appointment of Mr. Roland Parrcecci to P & Z Commission 7. Res. #07-0XX - Accepting Proposals on the Sale of $2,600,000 G.O. Improvement Bonds - (CSAH14, Old Mill Road & Fairview Street Imp.) 8. Res. #07 -OXX - Authorizing the Mayor to Sign & the Submission of the Safe Routes to School Application (CSAH14/Dupre Road Underpass) (Pages 34- 57) IX. ANNOUNCEMENTS/uPDATES 1. City Administrator, Mr. Dallas Larson 2. Chancey Barett Gardens - Senior HousinglRental Rates for 2008 '2 1'2.l:: "XIV r'~.-.I:..:~~ oJ. ...;J..JI 'f1' .I:; ~uall"IU.. X. ADJOURNMENT ECONOMIC DEVELOPMENT AUTHORITY I. CALL TO ORDER 1. Roll Call 2. Oath of Office 3. Election of Officers 4. Adoption of By-Laws III. ITEMS OF DISCUSSION 1. Assisting Local Businesses through Construction of CSAH 14 Impacts a. Ms. Renee Sande, Transportation Demand Management Coordinator, Anoka County Transportation Management Organization 2. Other IV. ADJOURNMENT CITY OF CENTERVILLE 11/14/07 3:26 PM Page 1 tervi{{e *Check Summary Register@ UPDATE 'Esttl$slieJ!" .1857 NOVEMBER 2007 Name Check Date Check Amt 10100 MAIN STREET BANK Paid Chk# 022877 ANOKA COUNTY PROPERTY RE 11/14/2007 Paid Chk# 022878 AVLlC 11/14/2007 Paid Chk# 022879 BLAINE BROTHERS, INC. 11/14/2007 Paid Chk# 022880 CENTENNIAL LAKES POLICE DE 11/14/2007 Paid Chk# 022881 INSTRUMENTAL RESEARCH INC 11/14/2007 Paid Chk# 022882 NATIONWIDE RETIREMENT SOL 11/14/2007 Paid Chk# 022883 OFFICE MAX 11/14/2007 Paid Chk# 022884 PENFIELD, INC. 11/14/2007 Paid Chk# 022885 QWEST 11/14/2007 Total Checks $138.00 1996100,002. REINHARD -1723 $631.00 DEF COMP W/H 11-15-07 $935.46 2007 STERLING - MISC. REPAIR - $1,000.00 CENTERVILlE LIONS DONATION FOR $38.00 OCTOBER 2007 WATER TEST $600.92 DEF COMP W/H 11-15-07 $143.60 SUPPLIES $1,218.75 1085 - 07WS SHEEHY PROPERTY- $55.46 651-426-6579 - PH SERV THRU 11 $4,761.19 /~ teroi{{e 'EstaOtlS!id 1857 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVlLLE RESOLUTION #07 - 0_ A RESOLUTION ADOPTING DELINQUENT SEWER, WATER & GARBAGE SERVICES FOR RESIDENTS ASSOCIATED WIm mE 3RD AND 4TH QUARTER 2006, 1ST AND 2ND QUARTERS OF 2007 BILLING CYCLES AND ASSESSING SAME TO PARCEL IDENTIFICATION NUMBERS THROUGH COUNTY PROPERTY TAX STATEMENts PAYABLE IN 2008 WHEREAS, pursuant to proper notice duly given as required by law, the council has met and heard and passed upon all objections to the certification of delinquent municipal utilities and garbage service or a combination of both; and, Past Due Past Due HOUSE Water/Sewer Garba2e Admin. Fee Total PINn NUMBER Street Name $181.87 $50.00 $231.87 143122440046 1956 72 1/2 STREET $957.47 $50.00 $1,007.47 143122440048 1968 72 1/2 STREET $139.95 $261.24 $50.00 $451.19 143122440012 1949 72ND STREET $1 197.53 $356.24 $50.00 $1,603.77 14312244 0027 1980 72ND STREET $400.66 $263.44 $50.00 $714.10 143122430062 1828 73RD STREET $154.92 $50.00 $204.92 143122430063 1834 73RD STREET $163.86 $50.00 $213.86 233122410051 6996 BRIAN ORIVE $478.86 $454.86 $50.00 $983.72 23312211 0092 7174 BRIAN DRIVE $902.91 $50.00 $952.91 143122440088 7244 BRIAN DRIVE $603.93 $71.89 $50.00 $725.82 143122440084 7260 BRIAN DRIVE ~ . $iQ,QQ ~ 11 Jl Ja 11 QOK~ ~ 8RI.\tl gRP~ PAID $166.19 $50.00 $216.19 143122410012 7335 BRIAN DRIVE $242.07 $261.24 $50.00 $553.31 233122110074 7120 BRIAN WAY $116.52 $50.00 $166.52 233122110069 7135 BRIAN WAY $109.80 $50.00 $159.80 233122 11 0039 1967 CARDiNAl DRIVE $161.80 $50.00 $211.80 233122 310007 1729 CENTER STREET $63.80 $78.58 $50.00 $192.38 233122310026 1744 CENTER STREET $202.68 $50.00 $252.68 233122 310011 1761 CENTER STREET ;2J- $116.52 $50.00 $166.52 233122 24 0034 7072 CENTERVILLE ROAD $273.24 $50.00 $323.24 233122230017 7085 CENTERVILLE ROAD $261.24 $50.00 $311.24 233122 230019 7087 CENTERVILLE ROAD $10.50 $50.00 $60.50 233122340002 6892 CENTERVILLE ROAD $710.04 $143.04 $50.00 $903.08 143122340054 7236 CLEAR RIDGE $255.20 $270.24 $50.00 $575.44 233122420023 6911 DUPRE ROAD $379.46 $50.00 $429.46 233122130098 7038 DUPRE ROAD $1,605.37 $261.24 $50.00 $1,916.61 143122 430053 1823 FOX RUN ~ ~ ~ 23312212 QQ?5 ~ FOX RUN PAID $168.31 $50.00 $218.31 233122210033 7162 GRANGE VIEW $914.91 $55.75 $50.00 $1,020.66 233122120054 1828 HAYFIELD ROAD $63.80 $54.33 $50.00 $168.13 23 3 1 22 24 0013 1749 HERITAGE STREET $396.76 $214.94 $50.00 $661.70 233122120072 1832 HOULE CIRCLE $1,174.40 $214.94 $50.00 $1,439.34 233122 120061 1841 HOULE CIRCLE $1,262.60 $50.00 $1,312.60 233122330025 1671 HUNTER'S TRAIL $446.60 $54.33 $50.00 $550.93 233122420041 6944 IVY COURT $261.24 $50.00 $311.24 23 31 22 42 0040 6948 IVY COURT $569.43 $50.00 $619.43 143122330020 1692 LAKELAND CIRCLE $510.40 $50.00 $560.40 233122240021 1740 MAIN STREET $308.78 $50.00 $358.78 233122240002 1764 MAIN STREET $192.69 $167.76 $50.00 $410.45 233122130013 1858 MAIN STREET $29.65 $50.00 $79.65 233122130013 1858 MAIN STREET $62.71 $50.00 $112.71 233122120093 1871 MAIN STREET $198.29 $50.00 $248.29 153122440040 7246 MAIN STREET $1,319.04 $383.52 $50.00 $1,752.56 233122310060 6959 MEADOW CIRCLE $178.49 $50.00 $228.49 233122310055 6978 MEADOW CIRCLE $259.74 $50.00 $309.74 23 31 22 3 1 0042 1735 MEADOW LANE ~ ~ $eQ.OO ~ 23312212 QQIQ +4+S Mlbb ROI'.!;) PAID $510.40 $267.83 $50.00 $828.23 233122120008 7192 MILL ROAD $41.27 $50.00 $91.27 233122120087 7154 MILL ROAD $510.40 $261.24 $50.00 $821.64 233122420015 6908 OAK CIRCLE $61.52 $50.00 $111.52 23 31 2242 0017 6926 OAK CIRCLE $421.15 $50.00 $471.15 143122420015 7313 OLD MILL ROAD $1,691.06 $231.40 $50.00 $1,972.46 143122420029 7336 OLD MILL ROAD 2-3 $444.40 $261.24 $50.00 $755.64 233122310002 1744 PARTRIDGE PLACE $789.10 $261.24 $50.00 51.100.34 143122310026 7319 PEL TIER CIRCLE $703.78 $50.00 $753.78 143122310043 7320 PEL TIER CIRCLE $2.184.51 $474.50 $50.00 $2.709.01 143122310027 7323 PEL TIER CIRCLE $933.53 $50.00 $983.53 143122310047 7360 PEL TIER CIRCLE $1,114.00 $50.00 $1 164.00 143122310039 7363 PEL TIER CIRCLE $851.01 $50.00 $901.01 143122310047 7364 PEL TIER CIRCLE $231.50 $50.00 $281.50 143122310041 7373 PEL TIER CIRCLE $510.40 $275.51 $50.00 $835.91 143122310007 1759 PEL TIER LAKE DRIVE $1 110.04 $301.24 $50.00 $1,461.28 143122430050 7231 PETERSON TRAIL $289.80 $50.00 $339.80 143122430045 1828 PRAIRIE DRIVE $63.80 $273.24 $50.00 $387.04 233122210028 7128 PROGRESS ROAD $1,185.28 $463.18 $50.00 $1 698.46 143122430086 1870 QUEBEC STREET $4Gi.9i - $iO.QQ ~ 11 J 1 JJ 1J 9913 4i7i QUliiliC i--T PAID $319.00 128.68 $50.00 $563.74 233122110017 1960 ROBIN LANE NORTH $319.00 $50.00 $369.00 233122110022 1988 ROBIN LANE NORTH $127.60 $50.00 $177.60 233122110044 1995 ROBIN LANE SOUTH $510.40 $261.24 $50.00 $821.64 233122110012 7169 ROBIN LANE WEST $88.81 $50.00 $88.81 233122110035 1988 ROBIN LANE SOUTH $127.60 $50.00 $177.60 233122120018 7159 SHAD AVENUE $510.40 $261.24 $50.00 $821.64 233122120015 7181 SHAD AVENUE $516.20 $261.24 $50.00 $827.44 233122230015 1695 SOREL STREET $510.40 $50.00 $560.40 233122310018 6923 TOURVILLE CIRCLE $160.56 $50.00 $210.56 143122440063 7252 TWIN LAKES AVE. $165.04 $50.00 $215.04 14312244 005Q 7234 UNITY AVENUE $274.85 $50.00 $324.85 143122440054 7256 UNITY AVENUE $995.09 $232.50 $50.00 $1 277.59 143122440055 7260 UNITY AVENUE $589.50 $50.00 $639.50 243122220080 2002 WILLOW CIRCLE $112.32 $50.00 $162.32 243122220077 2005 WILLOW CIRCLE $777.29 $50.00 $827.29 243122220071 2026 WILLOW CIRCLE $180.72 $50.00 $230.72 243122220093 2044 WILLOW CIRCLE $268.36 $50.00 $318.36 243122220099 2052 WILLOW CIRCLE $228.76 $50.00 $278.76 243122220164 2062 WILLOW CIRCLE $308.54 $50.00 $358.54 243122220178 2078 WILLOW CIRCLE 'z1 $79.38 $50.00 $129.38 243122220178 2078 WILLOW CIRCLE $676.24 $50.00 $726.24 243122220205 2086 WILLOW CIRCLE $374.47 $50.00 $424.47 243122220204 2087 WILLOW CIRCLE $809.08 $50.00 $859.08 243122220188 2096 WILLOW CIRCLE $837.86 $50.00 $887.86 243122220198 2115 WILLOW CIRCLE NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE,MUNNESOTA: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable over a period of one (1) year, the first of the installments to be payable on or before the first Monday in January 2008, and bear only the late payment fee of 10% interest. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with late fees accrued to the date of payment, to the City Clerk, no certification fee will be charged if the entire assessment is paid within thirty (30) days from the adoption of this resolution; and he/she may, at any time thereafter, pay to the City Clerk the entire amount of the assessment remaining unpaid, with late fees and certification fees. 4. The Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. PASSED AND ADOPTED by the City COWlcil this 14th day of November, 2007. Attest City Clerk Mayor $ Planning & Zoning Commission Report and Recommendation. The Planning & Zoning Commission met on November 13, 2007, to hold a public hearing to consider a request of Lloyd & Diane Hanson and Erick and Lynae Marshall for a variance to permit platting their property with substandard shoreline frontage. Findings: 1) The applicant provided evidence that a frontage variance was granted previously but that the properties were not required to be platted at that time. 2) The applicant provided evidence that the two properties that make up the property exist by recorded metes and bounds descriptions. 3) The Commission finds that there would be substantial benefit to both the City and the applicant property owners by platting the property. 4) The applicant did provide evidence to support a finding of "undue hardship" as defined by Minnesota Statute 467.357, subd 6, and City Code Chapt. 154, Sec. 154.310, Subd. A, and specific findings in this regard are: a. Because of the particular physical surroundings, shape or topographical conditions of the parcel or lot, the proposed variance would relieve an undue hardship, as distinguished from a mere inconvenience, should the applicable ordinance be strictly enforced. The Commission finds that it would create an undue hardship to require that an existing home be removed in order create one conforming lot and thus avoid the required variance. b. The purpose of the proposed variance is not based exclusively upon a desire to increase the value or income potential of the parcel of land, but would correct extraordinary circumstances applicable to this property but not applicable to other property in the vicinity or zoning district. The Commission finds that the proposed variance is not based exclusively upon a desire to increase the value or income potential of the lot. The Commission specifically finds that the nonconforming lot frontages are already existing and would continue with or without granting the variance. c. The alleged difficulty or hardship is caused by the City Ordinance and has not been created by any persons presently having an interest in the parcel of land. Special circumstances exist that are peculiar to the land, structure or building involved and do not result from the actions of the petitioner. The Commission finds that the hardship existed by virtue of a variance previously approved for the petitioner. d. The variance will not adversely affect public health, welfare and safety and will not be detrimental or injurious to property or improvements in the neighborhood. The J2cv proposed variance will not impair an adequate supply of light and air to adjacent property, or unreasonably diminish or impair established property values within the surrounding area or in any other respect impair the public health, safety or welfare of the residents of the city. The Commission finds that the variance will not adversely affect public health, welfare or safety and will not be detrimental or injurious to property or improvements in the neighborhood The Planning Commission finds that the variance ifgrantedwould not impair an adequate supply of light and air to adjacent properties and will not unreasonably diminish or impair established property values in the surrounding area. e. Variances will not be granted that allow a use that is otherwise not a permitted use in the zoning district that the subject property is located. Granting the variance requested will not confer on the applicant any special privilege that is denied by the City Code to other lands, structures or buildings in the same district. Literal interpretation of the provisions of the City Code would deprive the petitioner of rights commonly enjoyed by other properties in the same district. The Commission finds that the current use (for single family homes) is permitted in the R-2 zoning district. To eliminate the needed variance, one of the two existing single family homes would need to be removed and to require this would create an undue hardship. 5) The Commission finds that the applicant has demonstrated that the variance proposed is the minimum necessary to accomplish the intended use. RECOMMENDATION: The Planning & ZODing Commission recommends that the variance be granted, finding specifically that the applicant has satisfied the necessary criteria to qualify for the vanance. The Planning and Zoning Commission recommends approval of the proposed preliminary and final plat but notes that underlying easements may need to be vacated before the final plat is approved by the Council. Dallas Larson, Administrator . /' ( ;' BOND BID SALE RESULTS DATE: NOVEMBER 14, 2007 TO: MAYOR, CITY COUNCIL & STAFF FROM: JOHN W. MEYER, FINANCE DIRECTOR SUBJECT: $2,600,000 GO IMPROVEMENT BONDS, SERIES 2007A. SALE The proceeds from this bond are to support the construction of improvements for Old Mill Road, Fairview Street and CSAH 14 projects. The city received 2 bids for this bond sale. The best bid for the city is the bid received that has the lowest Net Effective Interest Rate. United Bankers' Bank of Bloomington, Minnesota submitted a bid with a Net Effective Interest Rate of 4.12415%. To complete the sale, the city will need to pass the attached resolution prepared by bond counsel awarding the bid to United Bankers' Bank. Below Is a bid tabulation for the sale. CITY OF CENTERVILLE BID TABULATION $2,600,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A NOVEMBER 14, 2007 Good Total Interest Net Effective Faith Bidder Bid Cost Interest Rate Deposit United Bankers' Bank $ 2,571.400.00 $ 1,038,163.81 4.124150% Sure Bid Bernardi Securities Inc. $ 2,581,119.95 $ 1,068,480.26 4.244500% Sure Bid I NOV-14-2087 12:26 UBB SEaJRITIES 952 886 9533 P.81/81 - -, . liD FORM - The City Council '. _ CIty of centervlBe. M1nI)8&Ota. . _.- RE: $ 2,BOD.OOO Geneial Obllg8tlOn Improvement Bonds. Series 2007A DATED: September 28. 2007 For all or .DQne afthe B Bonds. In accordance with the OIIicial Tenns of OfI8Jing. we will pay you . .- ~. 5 I (not less than 12.549.500) plus accrued Interest on the total principal of $2,600.000 to . ttJe te of de rt fOr fully registered onds, provided that the Bonds bear the following Infete.St rates: . ... . Vear Amount Rate Year Amount Rate Vear Amount Rate 2010 ! 140,000 3. ~S % 2015 '170,000 ~% 2020 )215.000 '1.05' % ~~ S~=:= ~~ :~; :~~g:= ~~ ~J $~~:= y~~~ 2013 '155,000 ~% 2018 $195.000 ~;11 % 2023 $ 245.000 % 2014 $165,000 .3 _/'b% 2019 $ 205.000 ~ _ % November 14, 200~ -- -- - .... - ..... -- - ... .... The Bonds mature on a June 11n each oftha years as Indicated above and Int...t is payable June 1 and December 1ln each year. commencing June 1. 2008. According to our computations (the correet compuIation being controlllng In rhe award) the tcraJ net Interut c;ost of theJbow bid is . l , 039, \ c... "i!. r 81 and the aVlrage net effective Interest rate Is ~ ,1 z.. V I ~ %0. We enGlose our good faith deposit or guarantee by Financial SUrety Bond In the amount S 50.500.00. to be held by you peneling d,llvvry and payment. If our bid Is no{ accepted, eald deposit shaD be promptly retumad to uti 'I11fs bid Is tor prompt ac:oeptance and Is condItIoI.'&I upon cfelivety of said Bonds to us or to a named reglstmr within 40 days from date hereof, or thereafter at our option. In conJunctlon wiIb making this offer. we have ~ and reviewed the Official Statement. accept Its terms and ooncIltlcnI. and have submitted our I'8quest8 far addltlonallnformatfon or corrections to the Offidal StatemenL M Syndicate Manager, we agree to.provfde the Issuerwlfh the nIOffering price of the Bonda within 24 hours of the bid accep~nce. ~Manoger. (~M~~f1 Telephone No. ?.s-'2 . ~8~'9- 'i 8 7 Fax No. 9~Q-~k-- 7~83 ... ... ... ... .... I ..... 1 ..... ... ! ..... i "" ""I , ...1 I The foregoing offer is hereby accepted by and on behalf of the CIty CounoD of the CIty Of CentervUle. Minnesota the . day of November, 2007. ... ..., 1 By Mayor Attest: .. Teresa Bender ~ Clerk 1-651-429-3232 Phone Number 1-661-429-8629 flax Good faith depoalt rec:eNed (for "'turn to bidder) ... '.. ., If --"I:."'~" ". ... '. crrvOFOENTERVlLLE JOHN W. MEYER PAGE 18 of 19 TOTAL P.01 The CItY ColJncil NovemDtr 14, 2007 City of eontarvllle, MlnnNClta FtE: $ 2.800,000 General Obllglllon Improvement Bonds, Ser1es2007A I DATED: September 28, 2007 For aU oUlOna orthe*~Jonds, In accotclsnce with the 0ffi;IaJ Tarma of OIferlnQ. WI wiD pay you $ ~ ..os go t , J ''1~'''S~ . (not 1_ thin UL64~) plus accrued [nt8reat on the total prlnclplh)f$2,SOO,OOO to the dati of deU'Isiy for fully registered Bcmas, provided that tIla aon I ear the fonDWlng Interest ratal: Veer AmouIJ1 Rate Year Amount Rete Yellr Amount 8al& 2010 S 140,000 lip 'Ye 2015 5110.000 l% 2020 $ 215,000 l/UJ % 2011 $145,000 % 2018 S 171$,000 IJi 2021 · 22.0,000 f/2% 2012 $160,000 % 2017 $185,000 % 2022 $ 238.000 o/a 2013 $ 155,000 % 2,Q18 $195,000 % ~23 . 246,000 % 2.014 1Il1E15,OOO % 2019 $205,000 % TIle BMdI mawre on a JUlIe 1 i1'l each of the yeal8 81!llndlcated abOlJa and Interest Is p;l~bl. June 1 and Daoombst 1 in eal:h year, commencing June 1, 2008. Accon:tiI19 tg our PQmputatlQM (tha correct complJtation being IXIntrolllng in tnl award) the tQlal net I~ t:Q&t~fjn9 above. bid Is S to a,rr ~ D t ~ ~ and th8 Mrage nat effective Interest rate 's ~~ '-l::r %,")t, W. enclose our good faith depasitOf guarent.. by flOallGii:ll Surety Bond In the amount' 50.S0p.DO. to be held by you pending delIVery and payment. If our bid is not ~ptecf, said deposit shIll be ~ retumEld (0 U5. Thls bId Is ror pn:lmpt 8CQIptal1Q8 .nd Is conditional upon dellvery gf said Bonds to us or to I!ll\lmed r Istrw wlthin 40 -days from datA htrtot', or thereafter at ol)r optlon. In CQnjuncllon with ma~ng thIs offer. we h received a. d the Omelal Ststement, accept Its te11T1S and eond"JtIons, and heva submitted 01lr requsalS for additiGnallnfo ~on or co OM 10 e 0tII0\a1 Statement A$ Syndicate Manager, we agree to provide thG lMuer with the reofterlng price ~ ndJ within OtIfS tJ'It bid 8cce~nC8, / Aecount Manager: - ~'71 . I ~... By. Telephcme No. Fax No. The faregclng offer Is hereby aoeepted by and on behalf gf the City OQuncll of the City of Centarvllle. M1Mesota thB da~ ot Novam~r, 2007, - By MayQf' Atteat: rer"a Bentter CitY Clerk 1~51-429-323a Phone Number 1-6$10429-8829 Fax Good felth deposlt receIVed (for retum to bidder) 3\ 2 - ~ &\- ""to::>'7 CITY OF CENTERVlLLIi . JOHN W. MEVER PAraE 18 of 19 EXTRACT OF MINUTES OF A MEETING OF THE .CITY COUNCIL OF THE CITY OF CENTERVILLE, MINNESOTA HELD: November 14, 2007 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Centerville, Minnesota was duly called and held at the City Hall in said City on the 14th day of November, 2007, at 6:30 o'clock PM. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: CITY OF CENTERVILLE, MINNESOTA RESOLUTION NO. RESOLUTION ACCEPTING PROPOSAL ON THE SALE OF $2,600,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A, PROVIDING FOR THEIR ISSUANCE AND PLEDGING FOR THE SECURITY THEREOF CERTAIN REVENUES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CENTERVILLE (the "City") AS FOLLOWS: A. WHEREAS, the City has authority pursuant to Minnesota Statutes. Chapter 429, to issue its general obligation improvement bonds to finance the construction of public improvement projects within the City; and B. WHEREAS, the City desires to finance the construction of various public improvement projects listed on Exhibit B to this Resolution (collectively, the "Project"), which improvement projects have been combined into a single improvement for financing purposes, through the issuance of its general obligation bonds pursuant to Minnesota Statutes, section 429.091 and Minnesota Statutes, Chapter 475; and C. WHEREAS, the City determines and declares that it is necessary and desirable to issue its General Obligation Improvement Bonds, Series 2007 A (the "Bonds'') in a principal amount of $2,600,000 to finance its costs of constructing the Project; and D. WHEREAS, the City has solicited proposals to purchase the bonds pursuant to Minnesota Statutes. Section 475.60; and ' E. WHEREAS, the proposals set forth on Exhibit A attached heretO'. were received' by the City; and ' . , .. NOW, THEREFORE, BE IT RESOLVED by the Council of the City as follows: 1. Sale of Bonds: Purpose. 1.01. The proposal of United Bankers' Bank (the Purchaser") to purchase the Bonds (or. individually, a "Bond") in accordance with the terms established for the Bonds, at'the rates of interest hereinafter set forth, and to pay therefor the sum of $2.571.400.00. plus interest accrued 'to the date of delivery of the Bonds, is hereby found, determined and declared to be the most favorable proposal received and is hereby accepted, and the Bonds are hereby awarded to said Purchaser. 1.02. The Bonds shall be titled "General Obligation Improvement Bonds, Series 2007 A", shall be dated December 11, 2007, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The City assunies no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any CUSIP numbers printed thereon. The City will permit such numbers to be printed on the Bonds at the expense of the Purchaser, provided, that the City shall not be responsible for any delay in delivery of the Bonds occasioned thereby. The Bonds shall be numbered from R-l upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds shall mature on June 1 in the years and amounts as follows: Year Amount Year Amount 2010 2011 2012 2013 2014 2015 2016 $140,000 $145,000 $150,000 . $155,000 $165,000 $170,000 $175,000 2017 2018 2019 2020 2021 2022 2023 $185,000 $195,000 $205,000 $215,000 $220,000 $235,000 $245,000 1.03. The Bonds shall provide funds to finance the cost of constructing the Project. 1.04. The Bonds shall bear interest payable semiannually on June 1 and :December 1 of each year (each, an "Interest Payment Date") commencing on June 1, 2008, calculated on the. basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board, at the respective rates per annum set forth opposite the maturity years as follows: 2 Year' . - - Rate- - - Year -Rate : --.- 2010 3.550 % 2017 3.900 % 2Ql1 3.600% 2018 3.950 % - 2012 3.650 % 2019 4.000% 2013 3.700 % 2020 4.050 % 2014_ _ ~ 3.750% 2021 4.125% 2015 3.800 % 2022 4.200 % 2016 3.850 % 2023 4.250 % Net Effective Interest Rate: 4.12415 % - - S~ction2. _ Book Entry Only. System. - The Depository Trust Company, a limited purpose trust comp~y organized under the -laws of the State of New York, - or any of its - successors od~ successors to its functions hereunder (the "Depository"), will act as securities depository for the Bonds, and to this end: (a) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under Section 6, Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (b) _ Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Registrar (as hereinafter defined) in the name of Cede & Co., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (c) With respect to the Bonds, neither the City nor the Registrar shall have any responsibility or obligation to any broker, d,ealer, bank, or any other :I:i1iaticial institution for which the Depository holds Bonds as securities depository, (the "Participant") or the person for which - a Participant holds an interest in the Bonds shown on the books - and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other- person, other than the Depository, of any amount with respect to the principal of, premium, if any, or interest on the aonds,-or (D) th~ consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibUs proxy under which th.e Depository- assigns its. consenting or. voting rights to certain i>amcipants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. 3 (d) The City and the Registrar may treat as and deem the Depository to be the absOlute owner of the Bonds for the purpose of payment of the principal of and premium, ifany, and interest on the Bonds, for the p1.i.r.P.ose of giving notices of redemption and other matters with respeCt to the Bonds, for the purpose of obtaining any consent or other action to be taken by . Holders.for the purpose of registering transfers with respect to such Bonds, and for all purposes whatsoever. The Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to or upon the Holder or the Holders of the Bonds as shown on the Bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (e) Upon delivery by the Depository to the Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in Section 6 hereof, references to the Nominee hereunder shall refer to such ilew Nominee. (f) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (g) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (h) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or the Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Registrar may establish a special record date for such consent or other action. The City or the Registrar shall, to the extent possible, give the Depository notice of special record date not less than 25 calendar days in advance of such special record date to the extent possible. (i) Any successor Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (j) In the case of a partial prepayment of a Bond, the Holder may, in lieu of surrendering the Bond for a Bond of a lesser denomination as provided in Section 6 hereof, make 4 a notation of the reduction in principal amount on the panel provided on the Bond stating the amount so redeemed. Section 3. Termination of Book"Entty Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (a) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by. giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bonds if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (b) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository willing to undertake the functions of the depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Owners of the Bonds that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with Section 6 hereof. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with Section 6 hereof, the Bonds will be delivered to the Beneficial Owners. (c) Nothing in this Section 3 shall limit or restrict the provisions of Section 6 hereof. The City Administrator is authorized and directed to execute in the name of the City the Letter of Representations in substantially the form on file in the office of the City. In the event of the disability or the resignation or other absence of the City Administrator of the City, such other officer of the City who may act in his or her behalf shall without further act or authorization of the City do all things and execute all instruments and documents required to be done or to be executed by such absent or disabled official. The provisions in the Letter of Representations are incorporated herein by reference and made a part of this Resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this Resolution, the provisions in the Letter of Representations shall control. Section 4. Redemption. 4.01. At the option of the City, Bonds maturing on or after June 1,2012, shall each be subject to call and prior payment on June 1,2011, or on any date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for prepayment the City will notify the Depository of the particular amount of such maturity to be prepaid. The Depository will determine by lot the amount of participant's interest in such maturity to be 5 redeemed and each participant will then select by lot the. beneficial ownership interest in such maturity to be redeemed. . (To be used if term bonds are included) 4.02. Bonds maturing in the year(s) (the "Term Bonds") are subject to mandatory redemption on June 1 in the years and principal amounts as follows: Mandatory Redemt>tion Schedule Term Bonds Due Term Bonds Due Redemption (June 1) Amount Redemption (June 1) Amount . Term Bonds Due Term Bonds Due Redemption (June 1) Amount Redemption (June}) Amount or, if less than such amount is then outstanding, an amount equal to the aggregate principal amount of the Bonds then outstanding. The City may, at its option, to be exercised on or before the thirtieth day preceding any mandatory redemption date specified above deliver to the Registrar written notice which shall (a) specify a principal amount of Term Bonds previously redeemed (otherwise than pursuant to the above Mandatory Redemption Schedule) or purchased and cancelled by the Registrar and not theretofore applied as a credit against any redemption of Term Bonds pursuant to the above Mandatory Redemption Schedule, and (b) instruct the Registrar to apply the principal amount of such Term Bonds so delivered or previously redeemed or purchased and cancelled for credit against the principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. Each such Term Bond so delivered or previously redeemed or purchased and cancelled shall be credited by the Registrar in the order directed by the City at succeeding and future principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. Section 5. Registration and Payment. 5.01. The Bonds shall be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 6 5.02. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ll) the date of authentication is prior to the first Interest Payment Date, in which case such bond shall be dated as of the date of original issue. The interest on the Bonds shall be payable to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the interest payment date, whether or not such day is a business day. Section 6. Registration. The City appoints u.S. Bank National Association, St. Paul, Minnesota, as bond registrar and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal office a bond register in which the Registrar shall provide for the registration of ownership of the Bonds and the registration of transfers or exchanges of the Bonds. (b) Transfer of Bonds. Upon surrender for transfer of the Bonds duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Bond of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Interest Payment Date and until such Interest Payment Date. (c) Cancellation. The Bonds surrendered upon any transfer shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (d) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and the requested transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The City and the Registrar may treat the person(s) in whose name(s) the Bonds are at any time registered in the bond register as the absolute owners of the Bonds, whether the Bonds shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of or interest on such Bonds and for all other purposes, and all such payments so made to any such registered owners or upon the owners' order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bonds to the extent of the sum or sums so paid. 7 (f) Taxes. Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated. Lost Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Bond of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Bond or in lieu of and in substitution for such Bond lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen, or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (h) Redemption. In the event the Bonds are called for redemption, if applicable, notice thereof will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not less than"'~~-da:ys' 'prior to-the date fixed for redemption to the registered owner of the Bonds to be redeemed at the address shown on the registration books kept by the Registrar. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of the Bonds. The Bonds when so called for redemption will cease to bear interest after the specified redemption date, provided that the funds-for the redemption are on deposit with the Registrar at the place of payment at the time. Section 7. Execution. Authentication and Delivery. The Bonds shall be prepared under the direction of the City Clerk of the City and shall be executed on behalf of the City by the manual signatures, or facsimile thereof, of its City Clerk and Mayor. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, th~ same as if such officer had remained in office until delivery. Notwithstanding such execution, the Bonds shall not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bonds has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of Authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on the Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bond has been so executed and authenticated, it shall be delivered by the City Clerk or Registrar to the Purchaser thereof upon payment of the purchase price, and the Purchaser shall not be obligated to see to the application of the purchase price. Section 8. Temporary Bonds. The City may elect to deliver, in lieu of printed definitive borids, one or more typewritten temporary bonds in substantially the form set forth in 8 Section 9, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Such temporary bonds may be executed with photocopied facsimile signatures of the Mayor and City Clerk. Such temporary bonds shall,. upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and canceled. Section 9. Form of Bond. 9.01. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 9 UNITED STATE8..0F AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF CENTERVILLE No.R- GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2007A Rate Maturity Date of Original Issue December 11, 2007 CUSIP No. Registered Owner: Cede & Co., as nominee of the Depository Trust Company, New York, New York Principal Sum: KNOW ALL PERSONS BY THESE PRESENTS that the City of Centerville, Minnesota, a dilly organized and existing municipal corporation in Anoka County, Minnesota (the "City") acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner set forth above, or registered assigns, the principal sum set forth above on the maturity date specified above, and to pay interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 of each year (each, an "Interest Payment Date") commencing June 1, 2008, (calculated on the basis of a 360-day year of twelve 30-day months and rounded pursuant to the rules of the Municipal Securities Rulemaking Board) to the person in whose name this bond is registered at the close of business on the 15th day of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, 81. Paul, Minnesota, Registrar and Paying Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith, credit and taXing powers of the City have been and are hereby irrevocably pledged. (So. long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, p~ym.ent of. principal of and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee.)* * Include only until termination of the book-entry only system under Section 2 hereof. 10 At the option of the City, Bonds maturing on or after June 1,2012, shall each be subject to caU and prior payment on June 1, 2011, or on any date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redempti~n. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be prepaid shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for prepayment the City will notify the Depository of the particular amount of such maturity to be prepaid. The Depository will determine by lot the amount of participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. (To be used if term bonds are included) Bonds maturing in the year(s) (the "Term Bonds") are subject to mandatory redemption on June 1 in the years and principal amounts as follows: Mandatory Redemlltion Schedule Term Bonds Due Term Bonds Due Redemption (June 1) Amount Redemption (June 1) Amount Term Bonds Due Term Bonds Due Redemption (June 1) Amount Redemption (June 1) Amount or, if less than such amount is then outstanding, an amount equal to the aggregate principal amount of the Bonds then outstanding. The City may, at its option, to be exercised on or before the thirtieth day preceding any mandatory redemption date specified above deliver to the Registrar written notice which shall (a) specify a principal amount of Term Bonds previously redeemed (otherwise than pursuant to the above Mandatory Redemption Schedule) or purchased and cancelled by the Registrar and not theretofore applied as a credit against any redemption of Term Bonds pursuant to the above Mandatory Redemption Schedule, and (b) instruct the Registrar to apply the principal amount of such Term Bonds so delivered or previously redeemed or purchased and cancelled for credit against the principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. Each such Term Bond so delivered or previously redeemed or purchased and cancelled shall be credited by the Registrar in the order directed by the City at succeeding and future principal installments to be prepaid pursuant to the Mandatory Redemption Schedule. 11 The specific Term Bonds to be redeemed will be selected by lot by the Registrar. All prepayments will be at a price of par plus accrued interest. The City Council of the City has designated the Bonds as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue code of 1986, as amended (the "Code"), relating to disallowance of interest expense for financial institutions and within the $10 million limitation allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $2,600,000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution adopted by the City Council of the City on November 14, 2007 (the "Resolution"), for the purpose of providing funds to finance various public improvement projects within the City pursuant to and in full conformity with the Constitution and laws of the State of Minnesota. Pursuant to the Resolution, the City has pledged to the payment of this Bond revenues derived from the payment of special assessments levied against properties benefited by the above-described public improvements and certain other revenues. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in revenues pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered bonds in Authorized Denominations (as defined in the Resolution described above). As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IT IS HEREBY CERTlIflliD AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Bond have been done, have happened, and have been performed in regular and due form, time, and manner as required by 12 law; and that this Bond, together with all other indebtedness of the City outstanding on the date h~f and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the City of Centerville, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed by the manual signatures, or facsimiles thereof, of the Mayor and the City Clerk and has caused this Bond to be dated December 11, 2007. City Clerk Mayor 13 CERTIFICATE OF AUTHENTICATION This is one of the bonds delivered pursuant to the Resolution mentioned within. u.s. BANK. NATIONAL ASSOCIATION By: Authorized Representative (Form of certificate to be printed on each Bond, following a full copy of the legal opinion.) It is certified that the original opinion, of which the foregoing is a true and correct copy, is on file in the office of the . and is dated as of the date of delivery of the Bonds and payment therefor by the original purchaser. City Clerk 14 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations:. TEN COM -- as tenants in common TEN ENT -- as tenants by entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common as custodian for (Minor) Uniform. Transfers to Minors Act under the UTMA -- (Cust) (State) 15 ASSIGNMENT FOR VALUE RECEIVED, ("Transferor"), the undersigned, hereby sells, assigns and transfers unto (Social Security or Federal Employer Identification No. ) the within Bond and all rights thereunder, and hereby irrevocably constitute and appoints ("Transferee'') as attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises; provided, however, that if any default with respect to the Bond shall have occurred to or to the date of this transfer, the within Bond shall not be registered and the Transferee shall be entitled to receive payment with respect to the within Bond upon presentation thereof as assignee of the Transferor. Date: NOTICE: No transfer will be registered and no new' Bond will be issued in the name of the Transferee, unless the signature(s) to this assignment correspond(s) with the name(s) as it (they) appear(s) upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever and the Social Security or Federal Employer Identification numbers of the settlor and beneficiaries of the trust, the date of the trust and the name of the trustee should be supplied. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or a trust company or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15 (a) (2) 16 9.02. The City Administrator of the City shall obtain a copy of the proposed approving legal opinion of Bradley & Deike, P .A., Edina, Minnesota, which shall be complete except as to dating thereof and shall cause the opinion to be printed on each Bond, together with a certificate to be signed by the facsimile signature of the City Clerk in substantially the form set forth in the form of Bond. The City Clerk is hereby authorized and directed to execute such'certificate in the name of the City upon receipt of such opinion and to file the opinion in the City's offices. Section 10. Funds and Accounts. There is hereby created a special fund to be designated the "General Obligation Improvement Bonds, Series 2007 A Fund" (the "Fund") to be adminimered and maintained by the City Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Construction Account" and "Debt Service Account" respectively. 10.01 Proiect Account. To the Construction Account there shall be credited an amount of the proceeds of the Bonds necessary to pay the City's costs of issuance of the Bonds and constructing the Project. After payment of all such costs, any Bond proceeds remaining on hand in the Construction Account shall be transferred to the Debt Service Account. 10.02. Debt Service Account. There shall be maintained a Debt Service Account to be designated the "Debt Service Account". There are hereby irrevocably appropriated and pledged to, and there shall be credited to the Debt Service Account: (1) any proceeds of the Bonds not used to pay the City's costs of constructing the Project or other improvement projects or to pay the cost of issuance of the Bonds; and (2) general fund moneys and tax levy receipts in each year sufficient to pay the debt service due on the Bonds in each year; and (3) special assessment receipts and fees and charges pledged pursuant to section 11 of this Resolution. The moneys in the Debt Service Account shall be used solely to pay the principal of and interest on the Bonds until such Bonds are paid in full. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for .the purpose for which the Bonds were issued and (2) in addition to the above, in an amount not greater than the lesser of five percent (5%) of the proceeds of the Bonds, or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Project Account, or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 17 Section 11. Assessments: Tax Levy. A. The Bonds are payable in part from the proceeds of special assessments (the "Assessments") levied or to be levied against properties benefited by the Project. The City hereby covenants and agrees that, for the payment of the cost of the Project, the City has done or will do and perform all acts and things necessary for the final and valid levy of special assessments in an amount not less than 20% of the costs of each of the improvements financed by the Bonds. It is estimated that collections of the Assessments will be as shown on Exhibit C attached hereto. In the event any such assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or by the City Council or by any of the officers or employees of the City, either in the making of such assessment or in the performance of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all such further things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said property. Collections of special assessments shall be deposited in the Debt Service Account or Construction Account as directed by the City Council. Section 11. Security: Tax Levy. A. The Bonds are payable from the proceeds of special assessments (the "Assessments") levied or to be levied against properties benefited by the Project. The City hereby pledges to apply the proceeds of the Assessments to the payment of the Bonds. B. Tax Levy: Coverage Test: Cancellation of Certain Tax Levies. To provide moneys for payment of the piincipal of and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount See attached Exhibit C The tax levies are such that if collected in full they, together with special assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided, that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. Section 12. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this Resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its 18 obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. If applicable, the City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject to sale andlor reinvestment, to pay all amounts. to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. Section 13. General Obligation Pledge. For the prompt and full payment of the principal of and interest on the Bonds as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City which are available for such purpose, and such other funds may be reimbursed from the Debt Service Account when a sufficient balance is available therein. Section 14. Certification of Proceedings. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to Bradley & Deike, P. A., Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the Issuer as to the facts recited therein. The officers of the City are also hereby authorized to execute continuing disclosure certificate to satisfy rules of the federal Securities Exchange Commission. Section 15. Certificate of Registration. The City Administrator is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, Minnesota, together with such other information as he or she shall require, and to obtain the County Auditor's Certificate that the bonds have been entered in the County Auditor's Bond Register. Section 16. Tax Covenants. 16.01. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue 19 Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder (the "Regulations''), in effect at the time of such actions, and that it will take or cause its officers; employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 16.02. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section.} 03 of the Code, including, without limitation, requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. 16.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Section 103 and 141 through 150 of the Code. 16.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b )(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2007 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2007 have been designated for purposes of Section 265(b )(3) of the Code. 16.06. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Project which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, except with resp~ct to certain de minimis expenditures meeting the requirements of Section 1.150-2(f)(I) and preliminary expenditures meeting the requirements of Section 1.150-2(f)(2) which in the aggregate do not exceed 20% of the "issue price" of the Bonds. 16.07. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. 20 Section 17. Payment of Issuance Expenses. of the Bonds from the proceeds of the Bonds. The City will pay costs of issuance Section 18. 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 anyone or more phrases, sentences, clauses or paragraphs in this Resolution contained shall not affect the remaining portions of this Resolution or any part thereof. Section 19. Headings. Headings in this Resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provisions hereof. The motion for the adoption of the foregoing resolution was duly seconded by council member Weston and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 21 STATE OF :MINNESOTA ) COUNTY OF ANOKA ) SS CITY OF CENTERVll..LE ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Centerville, Minnesota, hereby certify that I have carefully compared and attached the foregoing extract of minutes of a meeting of the City Council of said City held November 14, 2007, with the original thereof on file and of record in my office and the same is a full, true and complete transcript therefrom insofar as the same relates to the considering of proposals for and awarding the sale of $2,600,000 General Obligation Improvement Bonds, Series 2007 A, of said City. WITNESS my hand this _ day of , 2007. City Clerk EXHIBIT A Proposals 1. Fairview Street Improvements 2. Old Mill Road Improvements 3. CSAH 14 Improvements EXHIBIT B Projects Exhibit C Special Assessments and Levy Calculation