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04-21-09 CC Agenda Packet AGENDA Regular Meeting of the City Council Golden Valley City Hall 7800 Golden Valley Road Council Chamber April 21,2009 6:30 p.m. The Council may consider item numbers 1, 2, 3, 5 and 6 prior to the public hearings scheduled at 7:00 p.m. 1. CALL TO ORDER A. Roll Call B. Presentation of Certificate of Appointment 2. ADDITIONS AND CORRECTIONS TO AGENDA 3. CONSENT AGENDA Approval of Consent Agenda - All items listed under this heading are considered to be routine by the City Council and will be enacted by one motion. There will be no discussion of these items unless a Council Member or citizen so requests in which event the item will be removed from the general order of business and considered in its normal sequence on the agenda. A. Approval of Minutes - City Council Meeting - April 7, 2009 and Council/Manager Meeting - April 14, 2009 B. Approval of Check Register C. Licenses: 1. Fireworks Permit - Americana Fireworks Display Company for Golden Valley Days Art and Music Festival 2. Temporary Nonintoxicating Malt Liquor On-Sale Special Event Permit - Chester Bird American Legion for Golden Valley Days Art and Music Festival D. Minutes of Boards and Commissions: 1. Human Rights Commission - December 11, 2008 2. Joint Water Commission - February 20, 2009 E. Bids and Quotes: 1. Miscellaneous Concrete Repair - Quotes 2. Street Construction and Maintenance Materials - Bids 3. Standby Generator/Portable Light Tower - Quotes 4. Reject Sealcoating - Bids F. Letters and/or Petitions 1. Letter from Representative Sandra Peterson Regarding Group Homes G. Receipt of March 2009 General Fund Budget Report H. Acceptance of Donation of Memorial Bench - General Mills Nature Area from Family of Gary Prazak 09-23 I. Approval of 2010 Budget Calendar J. Authorization to Sign Amended FY09 Recovery Act Edward Byrne Memorial Justice Assistance Grant Agreement 4. PUBLIC HEARINGS 7:00 PM 5. OLD BUSINESS 6. NEW BUSINESS A. Authorizing Issuance, Awarding Sale, Prescribing Form and Detail and Providing Payment of: $7,305,000 General Obligation Improvement Bonds, Series 2009A, $750,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B and $5,080,000 General Obligations Improvement Refunding Bonds, Series 2009 C 09-24 to 09-26 B. First Consideration - Ordinance #417 - Amending Section 10.85, Broadening the Type of Nuisance Activity Leading to Repeat Nuisance Call Service Fees C. Announcements of Meetings D. Mayor and Council Communications 7. ADJOURNMENT / alley Mem randum Finance 763-593-8013/763-593-8109 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. B. Approval of City Check Register Prepared By Sue Virnig, Finance Director Summary Approval of check register for various vendor claims against the City of Golden Valley. Attachments Loose in agenda packet. Recommended Action Motion to authorize the payment of the bills as submitted. ~lley Memo ndum Fire Department 763-593-8079 I 763-593-8098 (fax) Executive Summary for Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. C. 1. Fireworks Permit - Americana Fireworks Display Company for Golden Valley Days Art & Music Festival Prepared By Mark Kuhnly, Chief of Fire & Inspections Summary The Americana Fireworks Display Company has submitted a fireworks permit application requesting approval to discharge aerial fireworks at the Golden Valley Days Art & Music Festival during the evening of Friday, May 15, 2009 at 9:15 pm. A rain date is set for May 16, 2009 at 9:30 pm. The location of the fireworks display will be at the northeast corner of Brookview Park. Americana Fireworks Display Company has indicated that they need to maintain a 420-foot radius to discharge 6-inch aerial display shells. The launch site is the same location that has been used since 2005. Due to public safety concerns over the last few years during this event, staff will be installing parking restrictions at the following locations: Western Avenue, Brookview Parkway to Winnetka Avenue South restricting the south side; Harold Avenue, Winnetka Avenue North to Ridgeway Road restricting the. south side; Hanley Road, Ridgeway Road to Western Avenue restricting the west side; and all of Western Terrace. This parking restriction began in 2008. Attachment Location Map (1 page) Recommended Action Motion to approve the fireworks display permit for Americana Fireworks Display Company to discharge aerial fireworks at the Golden Valley Days Art & Music Festival on Friday, May 15, 2009 or on the rain date of Saturday, May 16, 2009. 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I' r-, r7 0 fijf ,-c',. s'~ ..r:t} ,~J \\ {j A:J t,'.__. ..l' . I I . ....". .... ~~ley .J \ .' .\, ..~..f'i. >::. ". z .. .' . . .'.' " ,., t.' '.'. ;., , No Parking Area 51108 Not to Scale Print Date: 1 N Soun;es: HfJIlnep/n County SUrw}'Ol$ Office for A Property Une!J (2008). City of GoJd&n VaHey fOr all other IaYfl'$. Valley Days Fireworks Temporary Parking Restrictions Hey Me orandum City Administration/Council 763-593-8003/763-593-8109 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. C. 2. Temporary Nonintoxicating Malt Liquor On-Sale Special Event Permit - Chester Bird American Legion for Golden Valley Days Art & Music Festival Prepared By Thomas Burt, City Manager Summary The Golden Valley Days Art & Music Festival continues to grow in its success. This year, as in previous years, the Valley Days Committee has partnered with the Chester Bird American Legion to sell beer on Saturday, May 16, 2009 from 11 am to 8 pm at the City campus. The sale of beer will be in a fenced area and monitored by American Legion staff. Their staff will check ID's and issue wrist bands to identify people of legal age. The City Code does provide for temporary sales of nonintoxicating malt liquor with Council approval. The American Legion will provide liability insurance naming the City as an additional insured in the amount of $1,000,000. Attachment Site Plan (1 page) Recommended Action Motion to approve a temporary nonintoxicating malt liquor license for the Chester Bird American Legion on behalf of the Golden Valley Days Art & Music Festival on Saturday, May 16, 2009 from 11 am to 8 pm at the City campus. . I c:J II ~ t ! .. ii' .... (l' ~. ^ c: Z- iti 0 0. 0. 51]= a.. .x VI -: ~i "" i f Ii ~ .. ~ I *,'" ~J. ~. ,,v (:/;1 Z lJ > <I: < ~ i .... :J f) COMo ~ilansO 1oc1tt- (10) ,~"" o ~nO m:, clJ ~~ t~ 0 G m ( CJ i i Q. \ ~. tJe ~n~e ... <:,-4 \:"tt)' V.hIde Pf,rIclnf ~ ~. ~ ~&~ Prepo.l"'ecl by' Peter Kno.ebl9 763-593-9325 Jv,UOOf\ I\l'Cf\ ~S1gn o ~ 1 ........ !.'< f/..~ " ~\..\.: rP-~~~ GOLDEN VALLEY HUMAN RIGHTS COMMISSION MEETING Minutes from the Meeting of December 11, 2008 Members Present: Marion Helland, Anne Dykstra, Christopher Jordan, Roger McConico, Debra Yahle & Bob Hoyt. Members Absent: Ron Brandon and Jay Sandvik. Staff Present: Chief Stacy Altonen and Council Member DeDe Scanlon The meeting was called to order by Commissioner Dykstra at 7:07 pm. OPEN FORUM There was no one present requesting to address the Commission. CHAIRPERSON'S REPORT APPROVAL OF MINUTES Commissioner McConico moved to approve the minutes of the October 16, 2008 meeting; seconded by Commissioner Helland. The minutes were unanimously approved. INTRODUCTION OF NEW MEMBER Bob Hoyt introduced himself to and was welcomed by the commission. COMMITTEE REPORTS SCHOOL EDUCATION Commissioner Helland distributed statistics regarding the "Choice is Yours" program and free/reduced meal counts for the Robbinsdale area schools. Staff & student survey results from Robbinsdale area schools were distributed and discussed from the Desegregation/Integration Community Collaboration Council. Commissioner Dykstra advised the school district lines have been drawn in suburban cities to exclude trailer parks and multi-cultural populations from certain districts. She expressed interest in developing a work plan with the city council to prevent this exclusion in the future. Commissioner Hoyt moved to approve extending an invitation to a representative from the Robbinsdale School District to speak to the commission regarding the district lines and how they are drawn; seconded by Commissioner Jordan. This motion was approved by consensus. Commissioner Jordan advised he would contact the school district to extend the invitation. HOUSING Commissioner Jordan distributed a flyer that could be placed in common areas of multi- housing complexes to inform residents that the commission exists and welcomes their concerns and observations. Human Rights Commission December 11, 2008 Page 2 HOUSING - CONTINUED Chief Altonen advised there has been a minimal decline in foreclosures from this time last year. Commissioner Jordan inquired if the city is offering any resources to homeowners facing foreclosure to assist them through the process. Chief Altonen advised the city does not have vouchers for housing, but the city is working to obtain a resource packet for homeowners facing foreclosure. Commissioner Helland advised PRISM provides food and transportation assistance. Commissioner Dykstra suggested publishing the availability of a resource packet in the City News or advertising on a city utility bill so homeowners are aware there are resources available. LEAGUE OF MINNESOTA HUMAN RIGHTS COMMISSIONS Commissioner Helland advised the next meeting will be in Chaska and members are welcome to attend. SHARE THE DREAM Commissioners Ron Brandon, Christopher Jordan and Debra Vahle met to brainstorm ideas for the Share the Dream event. Commissioner Jordan advised one idea for next year's event involves~ocal celebrities giving motivational presentations about the changes they have seen in their professions over time. Commissioners discussed past events and themes, and possibilities for future events. DISCRIMINATION Chief Altonen distributed documents outlining the state bidding process (the City of Golden Valley follows the same process) when hiring contractors for various projects. The city does not have its own bid requirements which mandate a certain percentage of hired contractors be minorities. OLD BUSINESS Commissioner Helland advised a meeting is scheduled for January 26, 2009 from 7-9 PM at the Crystal Community Center. Members from the Crystal, Plymouth, New Hope, Robbinsdale and Golden Valley Human Rights Commissions will discuss training needs and grant fund allocations. NEW BUSINESS ELECTION OF OFFICERS Commissioner Jordan motioned to approve electing a temporary chair to serve through April 2009; seconded by Commissioner Vahle. Motion approved by consensus. Commissioner Hoyt moved to elect Commissioner Dykstra as the temporary chair. Motion carried unanimously. Human Rights Commission December 11, 2008 Page 3 ELECTION OF OFFICERS - CONTINUED Commissioner McConico moved to elect Commissioner Jordan as vice chair; seconded by Commissioner Yahle. Motion carried unanimously. NEXT MEETING The next meeting is scheduled for Thursday, January 8th, beginning at 7PM. ADJOURNMENT Moved by Commissioner Hoyt, seconded by Commissioner McConico to adjourn the meeting at 8:36 pm. JOINT WATER COMMISSION MINUTES Golden Valley - Crystal- New Hope Meeting of February 20, 2009 The Golden Valley - Crystal - New Hope Joint Water Commission meeting was called to order at 1 :30 pm, in the City of Golden Valley Council Conference Room. Commissioners Present Tom Burt, City Manager, Golden Valley Anne Norris, City Manager, Crystal Staff Present Paul Coone, Operations Manager, New Hope Tom Mathisen, Public Works Director, Crystal Randy Kloepper, Utility Maintenance Supervisor, Crystal Dave Lemke, Utility Maintenance Supervisor, Golden Valley Sue Virnig, Finance Director, Golden Valley Jeannine Clancy, Public Works Director, Golden Valley Other Scott Harder, Environmental Financial Group (EFG) Approval of JWC Minutes MOVED by Norris, seconded by Burt and motion carried unanimously to approve the minutes of the January 7,2009 meeting. Crystal Reservoir Leak Repair Status Randy Kloepper updated the commission on the repair status to the Crystal reservoir. They are currently in the final process of drying out the reservoir and hope to bring the contractor in next week to begin repairs. The repairs will be completed by April 15 and the reservoir will be operational by May 1, 2009. Hail Damaae Inspection of the Two Towers and Well House Paul Coone said they had hail damage to the New Hope towers and well house. The LMCIT said they needed to hire an appraiser to submit a claim. Sue Virnig said she would work with the agent to resolve this issue and submit a claim if needed. Updates on Emeraency Water Supply and Water Advisory Board with Minneapolis Scott Harder presented maps to the commission that he had previously shown to the T AC on Thursday, February 19, 2009. Harder had a memo from BARR Engineering and from Braun and Caldwell, the team looked at five wells, two of the wells were located on General Mills headquarter property, two of the wells were at General Mills' James Ford Bell site and the fifth well was the New Hope reservoir and concluded that in an emergency there is sustainable water available. Joint Water Commission Page 2 of 3 The first well to be used would be the New Hope reservoir, the second two wells would be at General Mills and the last wells to be put into commission would be those located at the James Ford Bell site. One of the issues to be considered would be the cost of installing chemical feeds near the water towers and the additional costs associated with piping the water to existing water mains. Another option would be to re-visit the 2004 study completed by Barr Engineering regarding new wells that could possibly be phased in over the next five to ten years that would be set closer to water treatment plant and the existing water mains. MOVED by Norris, seconded by Burt and motion carried unanimously to approve the motion for the JWC to move ahead with considering the costs of phasing in new wells over the next five to ten years to serve as a emergency backup water plan or to have the new wells considered in a blended plan where the JWC would supplement the City of Minneapolis water with water from the proposed new wells. This task would not exceed $13,500. Approval of JWC Water Supplv Plan Harder presented the Joint Water Supply Plan to TAC on Thursday, February 19, 2009 and a motion was made to approve the plan as long as T AC had no issues with the changes reflected by General Mills requesting that if an emergency should arise and General Mills wells needed to be used, that the wells located at their headquarters would be considered before the wells at James Ford Bell site and that the chemical feeds would not be stored on General Mills' property. MOVED by Norris, seconded by Burt and motion carried unanimously for the approval of the JWC Water Supply Plan. A~proval of an Aareement with EFG for work associated with JWC/Minneapolis Water Advisorv Board Harder suggested a proposal to create Governance Water Advisory Board and to recruit members from the Task Force to sit on the board, Harder suggested Mayor Loomis and Calvin Roy. The cost for this proposal would be $25,000. MOVED by Norris, seconded by Burt and motion carried unanimously to approve the expenditure of $25,000 for an agreement with EFG for work associated with creating a Water Advisory Board. Other Conservation rate has to be set by January 1, 2010. Joint Water Commission Page 3 of 3 Next Meeting The next meeting will be April 1 ,2009. Adjournment The meeting was adjourned at 2 pm. ATTEST: Christine Columbus, Administrative Assistant Thomas D. Burt, Chair Hey em randum Public Works 763-593-8030 I 763-593-3988 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. E. 1. Award contract for the 2009 Miscellaneous Concrete Repair Project, City Improvement Project No. 09-06 Prepared By Jeannine Clancy, Director of Public Works Ron Nims, Public Works Project Coordinator Summary Bids for the 2009 Miscellaneous Concrete Repair Project, City Improvement Project No. 09-06, were opened on April 6, 2009. The following bids were received: Engineer's Estimate $61,385 $117,925 $75,250 Ron Kassa Construction, Inc. Concrete Idea, Inc. The project provides for repair of concrete facilities throughout the City. The project is funded through the City's 2009 General Fund Engineering Budget (Concrete Repair, page 59), Municipal State Aid Maintenance Fund (S-017, page 100) and the Utility Maintenance Fund (Water Maintenance, page 87). Recommended Action Motion to award the bid for the 2009 Miscellaneous Concrete Repair Project to the lowest responsible bidder, Ron Kassa Construction, Inc., in the amount of $61 ,385. M m randum Public Works 763-593-8030 I 763-593-3988 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. E. 2. 2009 Street Construction and Maintenance Materials Bids Prepared By Jeannine Clancy, Director of Public Works Ron Nims, Public Works Project Coordinator Summary Each year staff advertises and receives bids for the various aggregates and asphalt materials used in Public Works maintenance activities. A copy of the bid tabulation is attached. Staff recommends award of contracts to the low bids for each material as follows: Materials Class 7 Aggregate Base Winter Sand Crushed Rock for Stabilization Type 41A Wearing Course Mix Type 41A Wearing Course Mix Ball Diamond Mix 3/8" Minus Trail Aggregate Contractor Aggregate Industries, Inc. SA-AG, Inc. Bryan Rock Products, Inc. Bituminous Roadways, Inc. C.S. McCrossan Construction, Inc. Bryan Rock Products, Inc. Bryan Rock Products, Inc. Bid Per Ton $8.14 $7.93 $24.16 $53.86 $54.20 $22.26 $21.20 Extended Estimated Contract $3,256 $15,860 $4,832 $40,395 $40,650 $4,452 $3,180 Staff is recommending a contract be awarded for bituminous wearing course mix to both Bituminous Roadways, Inc. and C.S. McCrossan Construction, Inc. The price per ton for the asphalt is very close. When factoring in distance to plant, time for travel, product availability and quantity amounts needed, it is in the City's best interest to have a contract with the two lowest bidders. Aggregate Industries, Inc. added provisions to their bid for winter sand, crushed rock for stabilization and 3/8" minus trail aggregate that were not stipulated in the bid documents. Therefore, their bids for those products were rejected. Attachments Tabulation of the 2009 Street Construction & Maintenance Material Bids (1 page) Recommended Action Motion to award contracts for the 2009 Street Construction and Maintenance Materials to the following companies in the amount shown: 1. Aggregate Industries, Inc. for Class 7 aggregate base in the amount of $3,256. 2. SA-AG, Inc. for winter sand in the amount of $15,860. 3. Bryan Rock Products, Inc. for crushed rock for stabilization, ball diamond mix and 3/8" minus trail aggregate in the amount of $12,464. 4. Bituminous Roadways, Inc. for type 41A wearing course mix in the amount of $40,395. 5. C.S. McCrossan Construction, Inc. for type 41A wearing course mix in the amount of $40,650. BID TABULATION FOR CITY OF GOLDEN VALLEY PROJECT NO. 09-10 2009 STREET CONSTRUCTION & MAINTENANCE MA TERJALS BID OPENING: APRIL 6, 2009 10:00 AM Item Crushed Type 41A Class 7 Winter Rock for Wearing Ball Diamond 3/8" Minus Trail Proposed Contract Aggregate Sand Stabilization Course Mixture Mix Aggregate Amount Estimated Amount 400 Tons 2,000 Tons 200 Tons 750 Tons 200 Tons 150 Tons BIDDER Aggregate Industries, Inc. $8. 141ton RB RB NB NB RB $3,256.00 $3,256.00 Barton Sand & Gravel $9.30/ton $8. 12/ton NB NB NB NB 0.00 $3,720.00 $16,240.00 Bituminous Roadways, Inc. NB NB NB $53. 86/ton NB NB $40,395.00 $40,395.00 Bryan Rock Products, Inc. $10.28/ton NB $24. 16/ton NB $22. 26/ton $21.20Iton $12,464.00 $4,112.00 $4,832.00 $4,452.00 $3,180.00 Commercial Asphalt Inc. NB NB NB $54.57/ton NB NB 0.00 $40,927.50 C.S. McCrossan Construction, Inc. NB NB NB $54.20Iton NB NB $40,650.00 $40,650.00 Midwest Asphalt Inc. $8.40/ton $14.95/ton NB $59.30/ton NB NB 0.00 $3,360.00 29,900.00 $44,475.00 SA-AG, Inc. NB $7.93/ton NB NB NB NB $15,860.00 $15,860.00 Balded bid prices are the recommended bid for Council award for each item. NB = No Bid RB = Rejected Bid Note: All bids shall include applicable Minnesota Sales Tax. alley Me orandum Public Works 763-593-8030 I 763-593.;3988 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. E. 3. Purchase One 2009 Allmand ML20 Standby Generator/Portable Light Tower Prepared By Jeannine Clancy, Director of Public Works Bert Tracy, Public Works Maintenance Manager Summary The 2009-2013 Capital Improvement Program Water and Sanitary Sewer Utility Section includes $50,000 for one portable generator trailer mounted (W&S-041, page 138). The portable generator replaces a 45-year-old 1964 Military Surplus Generator. Staff utilizes the portable generator to power the Highway 55 sewage lift station during power outages. The replacement generator will also be utilized as a standby light tower for evening emergency repairs, such as water main break excavations. The Minnesota Materials Management Division does not have this type of portable generator/light tower on the State contract. Staff has received price quotes for the purchase of one 2009 Allmand ML20 portable generator/light tower from Zeigler Cat and General Tractor. The low bid is Zeigler Cat. Listed below are the price quotes for the portable generator/light tower: Vendor Cost Zeigler Cat $21,980.00 Tax 1,428.70 TOTAL $23,408.70 General Tractor $23,026.00 Tax 1,496.69 TOTAL $24,522.69 Recommended Action Motion to approve purchase of one 2009 Allmand ML20 portable generator/light tower from Zeigler Cat for the total purchase amount of $23,408.70, including tax. alley Memorandum Public Works 763-593-8030 I 763-593-3988 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. E. 4. 2009 Sealcoat Project 09-09 Prepared By Jeannine Clancy, Director of Public Works Ron Nims, Public Works Project Coordinator Summary Staff opened bids for the 2009 Sealcoat Project 09-09 on April 6, 2009. However, after the bid opening, staff determined there was an error in the bid opening date that was advertised. Therefore, the bid that was received should be rejected and staff has re-advertised for services needed. Recommended Action Motion to reject all bids received for the 2009 Sealcoat Project 09-09. District 45A New Hope, Plymouth and Crystal Minnesota House of Representatives Sandra Peterson State Representative March 27, 2009 \ North Metro Mayors Association 1000 Westgate Drive, Suite #252 Saint Paul, MN 55114 North Metro Mayors, I wanted to let you know that Senator Ann Rest and I have introduced HF1986/SF1883 which provides a method of assuring that group homes have communicated with the city in which they will be located. Representative Lyndon Carlson has also signed on as a co-author on the House side. This bill ensures that group homes understand the local ordinances and requirements for operating a business in the area and would have to present a signed document proving they have communicated with the city. It is a small step (and a beginning) to addressing the concerns we heard from your group and our constituents. Although it is late in the process and will likely not be able to ~e included in its current form in an omnibus bill, I am exploring other options for how to get this provision into law. There are a few bills on which it could be amended. If we are unsuccessful this session, rest assured that I will continue to pursue this legislation next session. Over the interim, I will meet with advocates as well as community leaders to work on other related issues. Thank you and please feel free to contact me if you have any questions. ~ , Sandra Peterson State Representative Cc: Mayors of Robbinsdale, Crystal, New Hope, Plymouth, and Golden Valley @ State Office Buildina. 100 Rev Dr Martin Luther King Jr Blvd. S1. Paul. Minnesota 55155-1298 FAX: (651) 296-3208 Email: rep.sandra.peterson@house.mn (651)296-4176 ~ Hey Memorandum Finance 763-593-8013/763-593-8109 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. G. Receipt of March 2009 General Fund Budget Report Prepared By Sue Virnig, Finance Director Summary The monthly General Fund Budget Report provides a progress report on the General Fund operations for 2009. The revenues and expenditures show current month actual and year-to- date actual compared to the 2009 approved budget. The 2009 unallotment from the State is estimated at $325,000. Attachments March 2009 General Fund Budget Report - unaudited (2 pages) Recommended Action Motion to receive and file the March 2009 General Fund Budget Report. City of Golden Valley Monthly Budget Report - General Fund March, 2009 (unaudited) Percentage Of Year Completed 25.00% Revenue: Over % 2009 March YTD (Under) of Budget Type Budget Actual Actual Budget Received Ad Valorem Taxes $11,796,685 0 $0 ($11,796,685) 0.00% (1) Licenses 151,425 17,568 36,808 ($114,617) 24.31% Permits 703,000 32,450 110,603 ($592,397) 15.73% Federal Grants - Vest Program 0 0 0 $0 State Aid 10,500 15,020 17,489 $6,989 166.56% Charges For Services: General Government 36,020 324 2,301 ($33,719) 6.39% Public Safety 172,080 11,471 20,407 ($151,673) 11.86% Public Works 102,000 11,309 21,015 ($80,985) 20.60% Park & Rec 391,050 59,031 101,616 ($289,434) 25.99% Other Funds 1,187,000 0 0 ($1,187,000) 0.00% Fines & Forfeitures 280,000 0 16,682 ($263,318) 5.96% (2) Interest On Investments 230,000 0 0 ($230,000) 0.00% (3) Miscellaneous Revenue 210,940 2,742 4,297 ($206,643) 2.04% Transfers In 175,000 0 0 ($175,000) 0.00% TOTAL Revenue $15,445,700 $149,915 $331,218 ($15,114,482) 2.14% Notes: (1) The first half taxes will not be received until July. (2) Fines and Forfeitures is for January. (3) Investments will be booked at year end. Percentage Of Year Completed 25% (unaudited) Expenditures: Over % 2009 March YTD (Under) Of Budget Division Budget Actual Actual Budget Expend. Council $333,565 60,130 99,653 ($233,912) 29.88% (5) City Manager 820,770 87,917 176,108 (644,662) 21.46% Admin. Services 1,555,470 170,368 282,505 (1,272,965) 18.16% Legal 115,000 9,059 13,403 (101,597) 11.65% (1) General Gov't. Bldgs. 602,500 51,209 128,521 (473,979) 21.33% Planning 356,490 50,428 88,475 (268,015) 24.82% Police 4,531,630 500,008 1,070,442 (3,461,188) 23.62% Fire and Inspections 1,549,690 159,278 358,020 (1,191,670) 23.10% (2) Public Works Admin. 312,430 35,413 71,923 (240,507) 23.02% Engineering 674,750 41,016 100,164 (574,586) 14.84% Streets 1,400,985 111,008 253,583 (1,147,402) 18.10% Community Center 77,125 7,155 15,279 (61,846) 19.81% Park & Rec. Admin. 642,845 78,468 149,871 (492,974) 23.31% Park Maintenance 976,035 90,424 174,440 (801,595) 17.87% Recreation Programs 432,680 21,044 58,349 (374,331) 13.49% Risk Management 248,765 5,374 5,770 (242,995) 2.32% (3) Transfers Out 814,970 0 0 (814,970) 0.00% (4) TOTAL Expenditures $15,445,700 $1,478,299 $3,046,506 ($12,399,194) 19.72% (1) This includes February ytd legal bill. (2) Paid on Call Firefighters are now being paid monthly versus semi-annually. (3) First premium will come in April. (4) Transfers will be made in July. (5) This amount includes services for YMCA and Home Free Shelter. alley Memorand m Park and Recreation 763-512-2342 I 763-512-2344 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. H. Acceptance of Donation of Memorial Bench - General Mills Nature Area from Family of Gary Prazak Prepared By Rick Jacobson, Director of Parks and Recreation Summary As adopted in the Donation/Gift Policy, a gift of real or personal property must be accepted by the City Council by resolution and be approved by a two-thirds majority of the Council. A cash donation must be acknowledged and accepted by motion with a simple majority. Jan Prazak has donated $400 for a memorial bench for her husband Gary. The bench will be located along the trail on the north end of the General Mills Nature Area. Attachments Resolution Accepting Donation from the Family of Gary Prazak For General Mills Nature Area Memorial Bench (1 page) Recommended Action Motion to adopt Resolution Accepting Donation from the Family of Gary Prazak for General Mills Nature Area Memorial Bench. Resolution 09-23 April 21, 2009 Member introduced the fOllowing resolution and moved its adoption: RESOLUTION ACCEPTING DONATION FROM THE FAMILY OF GARY PRAZAK FOR GENERAL MILLS NATURE AREA MEMORIAL BENCH WHEREAS, the City Council adopted Resolution 04-20 on March 16,2004 which established a policy for the receipt of gifts; and WHEREAS, the Resolution states that a gift of real or personal property must be accepted by the City Council by resolution and be approved by a two-thirds majority of the Council. A cash donation must be acknowledged and accepted by motion with a simple majority. NOW, THEREFORE, BE IT RESOLVED that the City Council accepts the following donations: $400 for purchase and placement of bench in General Mills Nature Area from the Family of Gary Prazak Linda R. Loomis, Mayor ATTEST: Susan M. Virnig, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member 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, signed by the Mayor and her signature attested by the City Clerk. alley Memorandum Finance 763-593-8013/763-593-8109 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. I. Receipt of 2010 Budget Calendar Prepared By Sue Virnig, Finance Director Summary Staff has prepared the attached calendar outlining the 2010 Budget process based on current statutory requirements. Once again this legislative session may bring about change regarding limited market value, levy limits, process and additional mandates which may lead to further meetings. At the March workshop staff reviewed some actions that will be used while preparing department workpapers. This calendar will be posted on the city web site. Attachments Proposed 2010 Budget Calendar (1 page) Recommended Action Motion to receive and file the 2010 Budget Calendar. 2010 BUDGET CALENDAR - BASED ON CURRENT STATUTORY REQUIREMENTS 2009 Date( s): March 14 May4 May 12 Mid-May May 22 May 23 through June 26 July 3 July 14 August 3 August 11 August 4 through September 1 September 1 September 4 September 8 October 13 November 10 Mid-November Early December December 15 Council/Manager Workshop to outline 2010 Budget Budget workpapers for All Funds (General, Enterprise, Internal Service) will be given to staff. Meeting on 2010 Budget. Outline of Debt, General Fund Overview and possible scenarios of future tax situations. Staff meeting to determine the 2010- Equipment, Buildings and Parks projects to be included in the 2010 Proposed Budget. Staff returns Proposed 2009 Budgets for General Fund Divisions, Internal Service and Enterprise except Brookview Golf Course. Meetings with City Manager and Department / Division Heads to finalize staff's Proposed 2009 General Fund Budget. Proposed 2010 General Fund Budget to be distributed to the City Council. Council/Manager Meeting - budget workshop. Staff returns Proposed 2010 Budgets for the Golf Course to Finance. Council/Manager Meeting - budget workshop. Meetings with City Manager and Department / Division Heads to finalize staff's 2010 Proposed Budgets for the Enterprise & Other Funds. City Council certifies 2010 Proposed Property Tax Levy and sets date for public hearing(s) on 2010 General Fund Budget and tax levy. Proposed 2009 Budgets for the Enterprise and Other Funds distributed to the City Council. Council/Manager Meeting - budget workshop. Council/Manager Meeting - budget workshop. Council/Manager Meeting - budget workshop. Truth In Taxation notices sent by County to all property owners in the City. Truth in Taxation public hearing(s) on 2010 General Fund Budget and tax levy. City Council adopts 2010 General Fund Budget, 2010 Tax Levy and 2009 Budgets of the Enterprise & Other Funds. The 2010-2014 Capital Improvement Plan will be adopted. Public ~H~y M orandum Public Safety Department Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 3. J. Authorization to Sign Amended FY09 Recovery Act Edward Byrne Memorial Justice Assistance Grant Agreement Prepared By Stacy Altonen, Chief of Police Summary The cities of Bloomington, Brooklyn Center, Brooklyn Park, Champlin, Crystal, Eden Prairie, Edina, Golden Valley, Hopkins, Maple Grove, Minneapolis, Minnetonka, New Hope, Plymouth, Richfield, Robbinsdale and St. Louis Park have expressed a collective interest in authorizing Hennepin County to submit a grant application to the United States Department of Justice for the FY09 Recovery Act Edward Byrne memorial Justice Assistance Grant on behalf of said cities and serve as fiscal agent for the same. At its meeting of April 7 the City Council authorized the signing of the above-referenced agreement. However, Hennepin County has made an amendment to the agreement and the funds have been reallocated. The portion allocated to Golden Valley has been increased by $24,310. The amended agreement reflects the fund changes. In the event all grant funds are received, the Golden Valley Police Department would receive $54,117, to be allocated as follows: Roll Call Technology Varda Alarm SWAT Truck Graphics SWAT Interior Compartment Packaging Bike/Foot Patrol Shifts GPS Mapping System (2) GPS Tracking Devices (2) GPS Service Agreements (2) Patrol Bat Ballistic Shields (6) Computers for EOC Homicide Cold Case OT $14,000 $ 4,500 $ 2,000 $ 8,000 $ 9,000 $ 250 $ 1,300 $ 1 ,600 $ 3,000 $ 7,200 $2,928 If actual grant funds received are less than the amounts requested, funds would be distributed proportionally as outlined in the attached agreement. Attachments Justice Assistance Grant Agreement (5 pages) Recommended Action Motion to authorize the Mayor and City Manager to sign the amended FY09 Recovery Act Edward Byrne memorial Justice Assistance Grant Agreement. Contract No: A090314 AGREEMENT This Agreement is between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, (the "COUNTY"), the Cities of Bloomington, Brooklyn Center, Brooklyn Park, Champlin, Crystal, Eden Prairie, Edina, Golden Valley, Hopkins, Maple Grove, Minneapolis, Minnetonka, New Hope, Plymouth, Richfield, Robbinsdale, St. Louis Park, ("CITIES") (COUNTY and/or Cities may be individually called a "PARTY" and collectively called "PARTIES"). WHEREAS, the PARTIES, authorize the COUNTY to submit a grant application to the United States Department of Justice for the FY09 Recovery Act Edward Byrne memorial Justice Assistance Grant (the "GRANT") on behalf of the PARTIES and to serve as fiscal agent for the PARTIES; and WHEREAS, the PARTIES recognize the need to set forth the duties and obligations of the PARTIES with respect to the administration of the Grant; NOW, THEREFORE, in consideration of mutual undertakings and agreements hereafter set forth, the PARTIES hereby agree as follows: I. TERM This Agreement shall become effective upon approval by all PARTIES on the date of approval by the last PARTY and shall continue through September 30, 2012, or the completion of the services provided hereunder, whichever is earlier, unless terminated earlier in accordance with the provisions herein. Any Party may cancel this Agreement immediately if the Party reasonably believes there has been a failure to comply with the provisions of this Agreement, or failure to comply with the terms of the Grant award, rules, or guidelines or failure to comply with applicable law. 2. SERVICES TO BE PROVIDED Hennepin County will submit the 2009 Recovery Act Edward Byrne Memorial Justice Assistance Grant application 2009-FI786-MN-SU ("Grant"). In the event all Grant funds are received, each local unit of government will receive grant funds in the following amounts: BLOOMINGTON BROOKL YN CENTER BROOKLYN PARK CHAMPLIN CRYSTAL $ $ $ $ $ 185,284 229,771 423,769 23,849 57,329 EDEN PRAIRIE $ 71,087 EDINA $ 36,690 GOLDEN V ALLEY $ 54,117 HOPKINS $ 39,900 MAPLE GROVE $ 67,876 MINNEAPOLIS $ 3,763,170 MINNETONKA $ 46,321 NEW HOPE $ 56,411 PL YMOUTH $ 69,252 RICHFIELD $ 171,525 ROBBINSDALE $ 50,907 ST LOUIS PARK $ 107,777 HENNEPIN COUNTY ADMINISTRATION $ 308,379 $ 5,763,414 If the Grant funds are less than $5,763,414, the parties shall distribute the actual funds received in proportion to the table above less the costs of administration set forth herein. If any Grant funds are received, Hennepin County shall serve as the fiscal agent on behalf of the above named local units of government. The COUNTY shall provide financial administrative services necessary for the administration of the grant, including but not limited to the following: · Satisfy financial and administrative grant requirements. · Submit financial, programmatic and similar reports required under the grant. · Work with the Department of Justice to resolve administrative issues. · Comply with grant conditions regarding financial administration of the grant including but not limited to reporting, data collection and evaluation requirements prescribed by the grant. · Coordinate compliance with the organization audit requirements attached to the grant. · Manage grant funds. · Pursuant to applicable accounting standards and procedures, maintain financial and accounting books and records as shall be necessary, appropriate and convenient for the proper administration of the grant. COUNTY shall be entitled to the five percent (5%) administrative fee set forth in the Memorandum of Authorization. 3. DUTIES OF THE PARTIES The PARTIES, individual and collectively, acknowledge that COUNTY will be administering the Grant on their behalf and agree to cooperate fully with COUNTY in all matter with respect to such grant administration so as to allow COUNTY to satisfy the grant requirements, including but not limited to the following acts: · Comply with the provisions of the Grant award, rules, and guidelines and comply with applicable law including, as applicable, but not limited to the Single Audit Act Amendments of 1996 as amended and Office of Management and Budget Circular A-133. · Maintain books and records relating to the receipt and expenditure of grant funds for six (6) years after expiration of this Agreement. · Report the receipt and expenditures to the other PARTIES on a quarterly basis, then report a final accounting, pursuant to applicable accounting standards, upon expiration of this Agreement. · Supply full and complete information, as requested by COUNTY, so as to allow COUNTY to satisfy the grant conditions and requirements. · Work together with COUNTY to ensure that all grant conditions and requirements are met. · Provide COUNTY with data and information sufficient for COUNTY to meet its reporting, data collection and evaluation requirements as prescribed by the grant. · Eligible expenditures under this grant contract must be incurred by the grantee by the expiration date of the grant agreement. · Abide by the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13 (MGDPA), the Health Insurance Portability and Accountability Act and implementing regulations, if applicable, and all other applicable state and federal laws, rules, regulations and orders relating to data privacy or confidentiality. 4. LIABILITY AND INDEMNIFICATION Each PARTY agrees that it will be responsible for its own errors, acts and omissions and the results thereof to the extent authorized by law and shall not be responsible for the errors, acts and omissions of any other P ARTY and the results thereof, provided, however, BROOKL YN PARK and MINNEAPOLIS agree to defend, indemnify and hold harmless COUNTY from all liabilities, claims, demands, losses, costs, expenses and causes of action of any kind or character, including the cost of defense thereof resulting from the provision of services under this Agreement. The PARTIES liability is governed by the provisions of Minnesota Statutes, Chapter 466. Under no circumstances shall a PARTY be required to pay on behalf of itself and other PARTIES any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to anyone P ARTY. The statutory limits of liability for some or all of the PARTIES may not be added together or stacked to increase the maximum amount of liability for any party . 5. COUNTERPARTS This agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same Agreement. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK COUNTY BOARD AUTHORIZATION Reviewed by the County Attorney's Office COUNTY OF HENNEPIN STATE OF MINNESOTA By: Chair of Its County Board Date: ATTEST: Deputy/Clerk of County Board Date: And: Assistant/Deputy/County Administrator Date: CITY OF GOLDEN V ALLEY By: Its: And: Its: ADDITIONAL SIGNATURES ARE INCLUDED ON ADDITIONAL PAGES alley Me orandum Finance 763-593-8013/763-593-8109 (fax) Executive Summary For Action Golden Valley City Council Meeting April 17 , 2009 Agenda Item 6. A. Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $7,305,000 General Obligation Improvement Bonds, Series 2009A, $750,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B and $5,080,000 General Obligation Improvement Refunding Bonds, Series 2009C Prepared By Susan Virnig, Finance Director Summary At their meeting of March 17,2009 the City Council adopted resolutions authorizing the issuance and sale of these bond issues. The sale date was set for Tuesday, April 17, 2009. A representative of Springsted Inc will be in attendance at the meeting to present the bid results. If the City Council desires to proceed with these bond sales, after reviewing the bid results, it should adopt the attached resolutions. Attachments Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $7,305,000 General Obligation Improvement Bonds, Series 2009A (22 pages, loose in agenda packet) Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $750,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B (17 pages, loose in agenda packet) Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $5,080,000 General Obligation Improvement Refunding Bonds, Series 2009C (22 pages, loose in agenda packet) Recommended Action Motion to adopt Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $7,305,000 General Obligation Improvement Bonds, Series 2009A. Resolution Authorizing Issuance, Awarding Sale, Prescribing the Form and Details and Providing for the Payment of $750,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B. Resolution 09-24 April 21, 2009 Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE, A WARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $7,305,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2009A BE IT RESOLVED by the City Council, City of Golden Valley, Minnesota (the City), as follows: SECTION 1. AUTHORIZATION AND SALE. 1.01. Authorization. This Council, by resolution duly adopted on March 17,2009, authorized the issuance and sale on the date hereof of its General Obligation Improvement Bonds, Series 2009A (the Bonds), pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds of the Bonds will be used to finance various street improvement projects in the City (the Project). 1.2. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the City by Springsted Incorporated, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of In and associates (the Purchaser), to purchase the Bonds at a price of $ plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 1.3. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Manager are hereby authorized and directed to execute a contract on behalf of the City for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS: REGISTRATION: EXECUTION AND DELIVERY. 2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the City Council to establish the form and terms ofthe Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities: Interest Rates: Denominations and Payment. The Bonds shall be originally dated as of May 1,2009, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption, at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2011 $ 315,000 % 2021 $ 395,000 % 2012 320,000 2022 410,000 2013 325,000 2023 430,000 2014 330,000 2024 445,000 2015 340,000 2025 465,000 2017 345,000 2026 485,000 2018 360,000 2027 505,000 2019 370,000 2028 530,000 2020 380,000 2029 555,000 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein; provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository . 2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 2010, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar's close of business on the fifteenth day of the month immediately preceding the Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. 2.04. Redemption. Bonds maturing in 2020 and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000, on February 1,2019, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Manager shall cause notice of the call for redemption thereof to be published as required by law, and at least thirty and not more than 60 days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on February 1,20_ and 20_ (the Term Bonds) shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of such Bonds: Term Bonds Maturing February 1, 20- Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1,20_. Term Bonds Maturing February 1,20- Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1,20_. Notice of redemption shall be given as provided in the preceding paragraph.] 2.05. Appointment of Initial Registrar. The City hereby appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the Registrar). The Mayor and City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation ofthe Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws ofthe United States or one of the states of the United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar, effective upon not less than thirty days' written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 2.06. Registration. 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 corporate trust office a register (the Bond Register) in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. The term Holder or Bondholder as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name a Bond is registered in the Bond Register. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the Holder thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the Holder thereof or by an attorney duly authorized by the Holder in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. At the option of the Holder of any Bond in a denomination greater than $5,000, such Bond may be exchanged for other Bonds of authorized denominations, of the same maturity and a like aggregate principal amount, upon surrender of the Bond to be exchanged at the office of the Registrar. Whenever any Bond is so surrendered for exchange the City shall execute and the Registrar shall authenticate and deliver the Bonds which the Bondholder making the exchange is entitled to receive. (d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the Bond Register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of the principal of and interest on the Bond and for all other purposes, and all payments made to or upon the order of such Holder shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewit,; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, 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, destroyed, stolen or lost 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. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. G) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. Execution. Authentication and Delivery. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until the date of delivery of such Bond. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond, substantially in the form provided in Section 2.09, has been executed by the manual signature of an authorized representative ofthe Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on any Bond shall be conclusive evidence that it has been duly authenticated and delivered under this Resolution. When the Bonds have been prepared, executed and authenticated, the City Manager shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee ofDTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the City agrees to comply with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee ofDTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereofto be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever, and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee ofDTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, 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 interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Manager is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions ofthis resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. 2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF GOLDEN V ALLEY GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2009A No.R- $ Maturity Date Date of Original Issue CUSIP No. Interest Rate % February 1,20 May 1, 2009 REGISTERED OWNER: PRINCIPAL AMOUNT: CEDE & CO. THOUSAND DOLLARS CITY OF GOLDEN VALLEY, State of Minnesota (the City) acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner specified above, or registered assigns, the principal amount specified above on the maturity date specified above and promises to pay interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual interest rate specified above, payable on February 1 and August 1 in each year, commencing February 1,2010 (each such date, an Interest Payment Date), all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the calendar month immediately preceding the Interest Payment Date. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the Registrar described below, the principal hereof are payable in lawful money of the United States of America by check or draft drawn on U.S. Bank National Association, S1. Paul, Minnesota, as bond registrar, transfer agent and paying agent, or its successor designated under the Resolution described herein (the Registrar). For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue (the Bonds) in the aggregate principal amount of $7,305,000 issued pursuant to a resolution adopted by the City Council on April 21, 2009 (the Resolution), to finance various street improvement projects in the City and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. The Bonds are issuable only in fully registered form, in the denomination of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in 2020 and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000, on February 1, 2019, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City shall cause notice of the call for redemption thereof to be published if and as required by law, and at least thirty and not more than 60 days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds, at the holders' addresses as they appear on the bond register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20_ and 20_ shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20-- Term Bonds Maturing in 20-- Sinking Fund Payment Date Aggregate Principal Amount Sinking Fund Payment Date Aggregate Principal Amount $ $ Notice of redemption shall be given as provided in the preceding paragraph.] 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 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 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 designated 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 any such transfer or exchange. The Obligations have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Intemal Revenue Code of 1986, as amended. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment as herein provided and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof, the City Council has by the Resolution covenanted and agreed to levy ad valorem taxes upon all taxable property in the City and special assessments upon property specially benefited by the local improvements financed by the Bonds, which taxes and special assessments will be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Bonds when due, and has appropriated such special assessments and taxes to its General Obligation Improvement Bonds, Series 2009A Bond Fund for the payment of principal and interest; that if necessary for payment of principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof 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 of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City has caused this Bond to be executed on its behalfby the facsimile signatures of its Mayor and City Manager. CITY OF GOLDEN VALLEY, MINNESOTA (facsimile signature - Mayor) (facsimile signature - City Manager) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By Authorized Representative 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 the applicable laws or regulations: TEN COM - as tenants in common UTMA ................... as Custodian for....... .............. (Cust) (Minor) under Uniform Transfers to Minors Act .......... .... (State) TEN ENT - as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: [end of bond form] SECTION 3. GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 2009A CONSTRUCTION FUND. There is hereby established on the official books and records of the City a separate fund designated the General Obligation Improvement Bonds, Series 2009A Construction Fund (the Construction Fund). To the Construction Fund there shall be credited from the proceeds of the Bonds, exclusive of unused discount, accrued and capitalized interest, if any, an amount equal to the estimated cost of the Project. There shall also be credited to the Construction Fund all special assessments collected with respect to the Project until all costs of the Project have been fully paid. All proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment of the costs of the Project. To the extent required by Minnesota Statutes, Section 429.091, subdivision 4, the City shall maintain a separate account within the Construction Fund to record expenditures for each improvement. The City Manager shall maintain the Construction Fund until all costs and expenses incurred by the City in connection with the construction of the improvements have been paid. All special assessments on hand in the Construction Fund when terminated or thereafter received, and any Bond proceeds not so transferred, shall be credited to the General Obligation Improvement Bonds, Series 2009 A Bond Fund. SECTION 4. GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 2009A BOND FUND. There is hereby established on the official books and records of the City a separate fund designated the General Obligation Improvement Bonds, Series 2009A Bond Fund (the Bond Fund). Into the Bond Fund shall be paid (a) the amounts specified in Section 3 above, (b) capitalized interest, accrued interest and unused bond discount, if any, received from the Purchaser upon delivery of the Bonds, (c) any special assessments and taxes collected pursuant to Sections 5 or 6 hereof, except as otherwise provided in Section 3 hereof and (d) any other funds appropriated by the City Council for the payment of the Bonds. The money on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. If the balance on hand in the Bond Fund is at any time insufficient to pay principal and interest then due on the Bonds, such amounts shall be paid from other money on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient money becomes available in the Bond Fund. The Bond Fund shall be maintained until the City has paid, or made provision for the payment of, all of the principal of and interest on the Bonds. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." There shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount set forth in (b) above. Thereafter, during each Bond Year (i.e., each twelve month period commencing on February 2 and ending on the following February 1), as monies are received into the Bond Fund, the City Manager shall first deposit such monies into the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year.shall be appropriated to the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient for the payment of principal and interest then due, the City Manager shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to time held in the Debt Service Account and Surplus Account shall be credited or charged to said accounts. If the aggregate balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account in the Bond Fund when the balance therein is sufficient, and the City Council covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. In order to ensure compliance with the Code and applicable Regulations (all as defined in Section 8.01 hereof), the Finance Director, upon allocation of any funds to the Bond Fund, shall ascertain the balance then on hand in the Bond Fund. If it exceeds the amount of principal and interest on the Bonds to become due and payable through the next following February 1, plus a reasonable carryover equal to 1I12th of the debt service due in the following bond year, the excess shall (unless an opinion is received from bond counsel stating that another use shall not interfere with the tax exemption of the bonds) be used to prepay or purchase Bonds, or be invested at a yield which does not exceed the yield on the Bonds calculated in accordance with Section 148 of the Code. SECTION 5. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the payment of the costs 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 cost of the Project financed by the Bonds. The City estimates it has levied or will levy special assessments in the original aggregate principal amount of $1,505,000. It is estimated that the principal and interest on such special assessments will be levied beginning in 2009 and collected in the years 2010.2019 in the amounts shown on Appendix I attached hereto. The principal of the special assessments shall be made payable in annual installments, with interest as established by this City Council in accordance with law on installments thereof from time to time remaining unpaid. In the event any special 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 this City Council or by any of the officers or employees of the City, either in the making of such special 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 special assessment a valid and binding lien upon said property. SECTION 6. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively come due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of special assessments as set forth in Section 5, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City. The taxes will be levied and collected in years and amounts shown on the attached levy computation. Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce said levies in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 7. DEFEASANCE. When all ofthe Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The 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 Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. 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 the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an earlier designated redemption date, provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 8. TAX COVENANTS; ARBITRAGE MA TIERS AND CONTINUING DISCLOSURE. 8.01. General Tax Covenant. The City agrees with the registered owners 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 that would cause interest on the Bonds to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury Regulations (the Regulations), and agrees to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. All proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment of the costs of the Project. The Project is and will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, management contract, use agreement, capacity agreement or other agreement with any non- governmental person relating to the use of the Project, or any portion thereof, or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 8.02. Arbitrage Certification. The Mayor and City Manager being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with Section 148 of the Code, and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of the Code and Regulations. 8.03. Arbitrage Rebate. The City acknowledges that the Bonds are subject to the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure ofthe original proceeds thereof. 8.04. Reimbursement. 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; provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the Project meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the Project as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. The City has adopted a resolution on November 7, 2007, expressing an intent to reimburse Project expenditures from proceeds of tax-exempt bonds. - 8.05. Qualified Tax-Exempt Obligations. The Bonds are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and the City hereby finds that the reasonably anticipated amount of tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2009 does not exceed $30,000,000. 8.06 Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. S 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. The City has complied in all material respects with any undertaking previously entered into by it under the Rule. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2008, the following financial information and operating data in respect of the City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: City Property Values; City Indebtedness; and City Tax Rates, Levies and Collections. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(l) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status ofthe security; (G) Modifications to rights of security holders; (H) Bond calls; (1) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. The City agrees to make available the information described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as appropriate: (1) the information described in paragraph (1) of subsection (b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the State Depository), if any; (2) the information described in paragraphs (2) and (3) of subsection (b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection (b), to any rating agency then maintaining a rating of the Bonds at the request of the City and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs (1) or (2) of this subsection (c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c )(3) hereof) or the consent of the Owners of any Bonds, by a resolution ofthis Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)( 5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b )( 5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 9. CERTIFICATION OF PROCEEDINGS. 9.01. Registration of Bonds. The City Manager is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Hennepin County and obtain a certificate that the Bonds and the taxes levied pursuant hereto have been duly entered upon the Auditor's bond register. 9.02. Authentication of Transcript. The officers of the City and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds 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 in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. 9.03. Official Statement. The Official Statement relating to the Bonds, dated April 7, 2009, prepared and distributed by Springsted Incorporated, the financial consultant for the City, is hereby approved. Springsted Incorporated is hereby authorized on behalf of the City to prepare and deliver to the Purchaser within seven business days from the date hereof a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the SEC under the Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Linda R. Loomis, Mayor ATTEST: Susan M. Virnig, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member 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, signed by the Mayor and her signature attested by the City Clerk. APPENDIX I City of Golden Valley, Minnesota General Obligation Improvement Bonds, Series 2009A Payments on Special Assessments Year of Collection Principal Interest Total 2010 $ 150,500.00 $122,908.33 $ 273,408.33 2011 150,500.00 94,815.00 245,315.00 2012 150,500.00 84,280.00 234,780.00 2013 150,500.00 73,745.00 224,245.00 2014 150,500.00 63,210.00 213,710.00 2015 150,500.00 52,675.00 203,175.00 2016 150,500.00 42,140.00 192,640.00 2017 150,500.00 31,605.00 182,105.00 2018 150,500.00 21,070.00 171,570.00 2019 150,500.00 10,535.00 161,035.00 $1,505,000.00 $596,983.33 $2,101,983.33 Resolution 09-25 April 21, 2009 Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $750,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2009B BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the Issuer), as follows: Section 1. Authorization and Sale. 1.01. Authorization. This Council, by resolution duly adopted on March 17, 2009, authorized the issuance and sale of $750,000 General Obligation Equipment Certificates of Indebtedness, Series 2009B (the Obligations) of the Issuer to finance the costs of acquiring items of capital equipment (the Project). Said items of capital equipment have a useful life not less than the term of the Obligations. The principal amount of the Obligations does not exceed .25 percent of the market value of taxable property in the Issuer. 1.02. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the Issuer by Springsted Incorporated, sealed proposals for the purchase of the Obligations were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of , in , and associates (the Purchaser), to purchase the Obligations at a price of $ plus accrued interest on all Obligations to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 1.03. Award. The sale of the Obligations is hereby awarded to the Purchaser, and the Mayor and City Manager are hereby authorized and directed to execute a contract on behalf of the Issuer for the sale of the Obligations in accordance with the terms of the proposal. The good faith deposit of the Purchaser shall be retained by the Issuer until the Obligations have been delivered, and shall be deducted from the purchase price paid at settlement. Section 2. Obligation Terms; Registration; Execution and Delivery. 2.01. Issuance of Obligations. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to and in the valid issuance of the Obligations having been done, now existing, having happened and having been performed, it is now necessary for the City Council to establish the form and terms of the Obligations, to provide security therefor and to issue the Obligations forthwith. 2.02. Maturities; Interest Rates; Denominations and Payment. The Obligations shall be originally dated as of May 1,2009, shall be in denominations of $5,000 or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, without option of prior payment, and shall bear interest from date of issue until paid at the annual rates set forth opposite such years and amounts, as follows: Year Amount Interest Rate 2011 2012 2013 $245,000 250,000 255,000 % The Obligations shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Obligation at the principal office of the Registrar described herein, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. Upon the initial delivery of the Obligations pursuant to Section 2.07, and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Obligation so delivered, exchanged or transferred. 2.03. Dates and Interest Payment Dates. Interest on the Obligations shall be payable on each February 1 and August 1, commencing February 1,2010, to the owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.04. Redemption. The Obligations shall not be subject to prepayment prior to their stated maturities. 2.05. Appointment ofInitial Registrar. The Issuer hereby appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the Registrar) for the Obligations. The Mayor and City Manager are authorized to execute and deliver, on behalf of the Issuer, a contract with the Registrar. The Issuer reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Obligations in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. 2.06. Registration. The effect of registration and the rights and duties of the Issuer 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 Obligations and the registration of transfers and exchanges of Obligations entitled to be registered, transferred or exchanged. (b) Transfer of Obligations. Upon surrender for transfer of any Obligation duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Obligations of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Obligations. Whenever any Obligations are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Obligations of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Obligations surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the Issuer. (e) Improper or Unauthorized Transfer. When any Obligation is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Obligation or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The Issuer and the Registrar may treat the person in whose name any Obligation is at any time registered in the bond register as the absolute owner of the Obligation, whether the Obligation shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Obligation and for all other purposes, and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon Obligation to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Obligations (except for an exchange upon a partial redemption of an Obligation), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroyed Obligations. In case any Obligation shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Obligation of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Obligation or in lieu of and in substitution for any Obligation destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith, and, in the case of an Obligation destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Obligation was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the Issuer and the Registrar shall be named as obligees. All Obligations so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the Issuer. If the mutilated, destroyed, stolen or lost Obligation has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Obligation prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Obligations, within the meaning of Minnesota Statutes, Section 475.55, Subdivision I, as amended. G) Valid Obligations. All Obligations issued upon any transfer or exchange of Obligations shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Resolution as the Obligations surrendered upon such transfer or exchange. 2.07. Execution. Authentication and Delivery. The Obligations shall be prepared under the direction of the City Manager and shall be executed on behalf of the Issuer by the signatures of the Mayor and the City Manager, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Obligations shall cease to be such officer before the delivery of any Obligation, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Obligation shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Obligation has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Obligations need not be signed by the same representative. The executed certificate of authentication on each Obligation shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Obligations have been prepared, executed and authenticated, the City Manager shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to an Obligation, the person in whose name such Obligation is recorded as the beneficial owner of such Obligation by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee ofDTC, and any successor nominee of DTC with respect to the Obligations. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Obligations as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (b) The Obligations shall be initially issued as separately authenticated fully registered obligations, and one Obligation shall be issued in the principal amount of each stated maturity of the Obligations. Upon initial issuance, the ownership of such Obligations shall be registered in the bond register in the name of Cede & Co., as nominee ofDTC. The Registrar and the Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Obligations registered in its name for the purposes of payment of the principal of or interest on the Obligations, selecting the Obligations or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Obligations under this resolution, registering the transfer of Obligations, and for all other purposes whatsoever, and neither the Registrar nor the Issuer shall be affected by any notice to the contrary. Neither the Registrar nor the Issuer shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Obligations under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Obligations, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Obligations, with respect to any notice which is permitted or required to be given to owners of Obligations under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Obligations, or with respect to any consent given or other action taken by DTC as registered owner of the Obligations. So long as any Obligation is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Obligation, and shall give all notices with respect to such Obligation, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of and interest on the Obligations to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Obligation for each separate stated maturity evidencing the obligation of the Issuer to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Obligations will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the Issuer determines that it is in the best interest of the Beneficial Owners that they be able to obtain Obligations in the form of bond certificates, the Issuer may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Obligations in the form of certificates. In such event, the Obligations will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Obligations at any time by giving notice to the Issuer and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Obligations will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Manager is hereby authorized and directed. (e) In the event that any transfer or exchange of Obligations is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Obligations to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Obligations in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Obligations, or another securities depository as owner of all the Obligations, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Obligations in the form of bond certificates and the method of payment of principal of and interest on such Obligations in the form of bond certificates. 2.09. Form of Obligations. The Obligations shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF GOLDEN V ALLEY GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF INDEBTEDNESS, SERIES 2009B Interest Rate Maturity Date Date of Original Issue CUSIP No. % February 1,20_ May 1, 2009 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS THE CITY OF GOLDEN V ALLEY, MINNESOTA (the Issuer), acknowledges itself to be indebted and for value received hereby promises to pay the principal sum specified above on the maturity date specified above, without option of prior payment, with interest thereon from the date hereof at the annual rate specified above, payable on February 1 and August 1 in each year, commencing February 1,2010, to the person in whose name this Obligation is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. 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 or other agreed means of payment by U.S. Bank National Association, St. Paul, Minnesota as Registrar and Paying Agent (the Registrar), or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith, credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. This Obligation is one of an issue in the aggregate principal amount of $750,000 issued pursuant to a resolution adopted by the City Council on April 21, 2009 (the Resolution), to finance the costs of acquisition of capital equipment, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 412.301 and Chapter 475. The Obligations are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities. The Obligations are not subject to optional redemption prior to maturity. As provided in the Resolution and subject to certain limitations set forth therein, this Obligation is transferable upon the books of the Issuer at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney, and may also be surrendered in exchange for Obligations of other authorized denominations. Upon such transfer or exchange the Issuer will cause a new Obligation or Obligations 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. Notwithstanding any other provisions of this Obligation, so long as this Obligation is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Obligation, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the Issuer. The Obligations have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Issuer and the Registrar may deem and treat the person in whose name this Obligation is registered as the absolute owner hereof, whether this Obligation is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the Issuer nor the Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to and in the issuance of this Obligation in order to make it a valid and binding general obligation of the Issuer in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof, the City Council has levied ad valorem taxes on all taxable property in the Issuer, which taxes will be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Obligations when due, and has appropriated such taxes to its General Obligation Equipment Certificates of Indebtedness, Series 2009B Sinking Fund for the payment of such principal and interest; that if necessary for payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the Issuer, without limitation as to rate or amount and that the issuance of this Obligation, together with all other indebtedness of the Issuer outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Issuer to exceed any constitutional or statutory limitation of indebtedness. This Obligation shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Golden Valley, Minnesota, by its City Council, has caused this Obligation to be executed on its behalf by the facsimile signatures of the Mayor and City M~ager and has caused this Obligation to be dated as of the date set forth below. CITY OF GOLDEN V ALLEY, MINNESOTA (facsimile signature - City Manager) (facsimile signature - Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Obligations delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION, as Registrar Dated: By Authorized Representative The following abbreviations, when used in the inscription on the face of this Obligation, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties UTMA ................... as Custodian for....... .............. (Cust) (Minor) under Uniform Transfers to Minors Act .......... .... (State) JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Obligation and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Obligation on the books kept for registration of the within Obligation, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Obligation in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: [end of bond form] Section 3. General Obligation Equipment Certificates of Indebtedness. Series 2009B Sinking Fund. So long as any of the Obligations are outstanding and any principal of or interest thereon unpaid, the City Manager shall maintain a separate debt service fund on the official books and records of the Issuer to be known as the General Obligation Equipment Certificates of Indebtedness, Series 2009B Sinking Fund (the Sinking Fund), and the principal of and interest on the Obligations shall be payable from the Sinking Fund. The Issuer irrevocably appropriates to the Sinking Fund (a) any amount in excess of$ received from the Purchaser (including amounts representing capitalized interest); (b) all taxes levied and collected in accordance with this Resolution; and (c) all other moneys as shall be appropriated by the City Council to the Sinking Fund from time to time. If the balance in the Sinking Fund is at any time insufficient to pay all interest and principal then due on all Obligations payable therefrom, the payment shall be made from any fund of the Issuer which is available for that purpose, subject to reimbursement from the Sinking Fund when the balance therein is sufficient, and the City Council covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. Section 4. Pledge of Taxing Powers. For the prompt and full payment of the principal of and interest on the Obligations as such payments respectively become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. In order to produce aggregate amounts not less than 5% in excess of the amount needed to meet when due the principal and interest payments on the Obligations, ad valorem taxes are hereby levied on all taxable property in the Issuer. The taxes are to be levied and collected in the following years and amounts: Levy Years Collection Years Amount 2009-2011 2010-2012 See attached Levy Computation The taxes shall be irrepealable as long as any of the Obligations are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce the tax levies in accordance with the provisions of Minnesota Statutes, Section 475.61. Section 5. Defeasance. When all of the Obligations have been discharged as provided in this section, all pledges, covenants and other rights granted by this Resolution to the holders of the Obligations shall cease. The Issuer may discharge its obligations with respect to any Obligations which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full, or if any Obligation should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The Issuer may also at any time discharge its obligations with respect to any Obligations, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity. Section 6. Certification of Proceedings. 6.01. Rel2:istration of Obligations and Levy of Taxes. The City Manager is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Hennepin County and obtain a certificate that the Obligations have been duly entered upon the Auditor's bond register and the tax required by law has been levied. 6.02. Authentication of Transcript. The officers of the Issuer and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Obligations and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Obligations, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the Issuer as to the correctness of all statements contained therein. 6.03. Official Statement. The Official Statement relating to the Obligations, dated ,2009, prepared and delivered on behalf of the Issuer by Springsted Incorporated, is hereby approved. Springsted Incorporated is hereby authorized on behalf of the Issuer to prepare and distribute to the Purchaser within seven business days from the date hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Obligations required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission (the SEC) under the Securities Exchange Act of 1934. The officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Section 7. Tax Covenants; Arbitrage Matters; Reimbursement and Continuing Disclosure. 7.01. General Tax Covenant. The Issuer covenants and agrees with the registered owners from time to time of the Obligations that it will not take, or permit to be taken by any of its officers, employees or agents, any actions that would cause interest on the Obligations to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury Regulations (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Obligations will not become includable in gross income of the recipient under the Code and the Regulations. In particular, the Issuer covenants and agrees that all proceeds of the Obligations will be expended solely for the payment of the costs of acquisition and installation of capital equipment to be owned and maintained by the Issuer and used in the Issuer's general governmental operations. The Issuer shall not enter into any lease, use or other agreement with any non-governmental person relating to the use of the equipment or security for the payment of the Obligations which might cause the Obligations to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 7.02. Certification. The Mayor and City Manager being the officers of the Issuer charged with the responsibility for issuing the Obligations pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Obligations which make it reasonable to expect that the proceeds of the Obligations will not be used in a manner that would cause the Obligations to be "arbitrage bonds" within the meaning of the Code and Regulations. 7.03. Arbitrage Rebate. The Issuer acknowledges that the Obligations are subject to the rebate requirements of Section 148(t) of the Code. The Issuer covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(t) and applicable Regulations to preserve the exclusion of interest on the Obligations from gross income for federal income tax purposes, unless the Obligations qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 ofthe Regulations and no "gross proceeds" of the Obligations (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof. 7.04. Reimbursement. The Issuer certifies that the proceeds of the Obligations will not be used by the Issuer to reimburse itself for any expenditure with respect to the equipment which the Issuer paid or will have paid more than 60 days prior to the issuance of the Obligations unless, with respect to such prior expenditures, the Issuer shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the equipment meeting the requirements of Section 1.150- 2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the equipment as defined in Section 1. 150-2(f)(2) of the Regulations which in the aggregate do not exceed 20% of the "issue price" of the Obligations. 7.05. Oualified Tax-Exempt Obligations. The Obligations are hereby designated as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and the Issuer hereby finds that the reasonably anticipated amount of tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the Issuer and all subordinate entities during calendar year 2009 does not exceed $30,000,000. 7.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Obligations and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Obligations to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. S 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Obligations, the Issuer hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Obligations. The Issuer is the only obligated person in respect of the Obligations within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. The Issuer has complied in all material respects with any undertaking previously entered into by it under the Rule. If the Issuer fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Obligations, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Obligations or under any other provision of this resolution. As used in this section, Owner or Obligation Owner means, in respect of an Obligation, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of an Obligation, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Obligation (including persons or entities holding Obligations through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Obligation for federal income tax purposes. (b) Information To Be Disclosed. The Issuer will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the Issuer, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the Issuer, commencing with the fiscal year ending December 31, 2008, the following financial information and operating data in respect of the Issuer (the Disclosure Information): (A) the audited financial statements of the Issuer for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the Issuer, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the Issuer, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the Issuer; and (B) To the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under the headings: City Property Values, City Indebtedness, City Tax Rates, and Levies and Collections. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the Issuer shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the Issuer shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the Issuer have materially changed or been discontinued, such Disclosure Information need no longer be provided if the Issuer includes in the Disclosure Information a statement to such effect, provided, however, that if such operations have been replaced by other Issuer operations in respect of which data is not included in the Disclosure Information and the Issuer determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b )(1) or subsection (d), then the Issuer shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status of the security; (G) Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; (1) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell an Obligation or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event that would be deemed material for purposes of the purchase, holding or sale of an Obligation within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the Issuer to provide the Disclosure Information required under paragraph (b )( 1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the Issuer under subsection (d)(2); (C) the termination of the obligations of the Issuer under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the Issuer. (c) Manner of Disclosure. The Issuer agrees to make available the information described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as appropriate: (1) the information described in paragraph (1) of subsection (b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the State Depository), if any; (2) the information described in paragraphs (2) and (3) of subsection (b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection (b), to any rating agency then maintaining a rating of the Obligations at the request of the Issuer and, at the expense of such Obligation Owner, to any Obligation Owner who requests in writing such information, at the time of transmission under paragraphs (1) or (2) of this subsection (c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term; Amendments; Interpretation. (1) The covenants of the Issuer in this section shall remain in effect so long as any Obligations are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the Issuer under this section shall terminate and be without further effect as of any date on which the Issuer delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the Issuer to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Obligations to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the Issuer from time to time, without notice to (except as provided in paragraph (c )(3) hereof) or the consent of the Owners of any Obligations, by a resolution of this Council filed in the office of the recording officer of the Issuer accompanied by an opinion of Bond Counsel, who may rely on certificates of the Issuer and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the Issuer or the type of operations conducted by the Issuer, or (b) is required by, or better complies with, the provisions of paragraph (b)( 5) of the. Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Obligations, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Obligation Owners under the Rule. If the Disclosure Information is so amended, the Issuer agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)( 5) of the Rule. Linda R. Loomis, Mayor ATTEST: Susan M. Virnig, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member 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, signed by the Mayor and her signat~re attested by the City Clerk. Resolution 09-26 April 21, 2009 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $5,080,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009C BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "Issuer"), as follows: SECTION 1. AUTHORIZATION AND SALE. 1.1. Authorization. This Council, by resolution duly adopted on March 17, 2009, authorized the issuance and sale on the date hereof of $5,080,000 aggregate principal amount of General Obligation Improvement Refunding Bonds, Series 2009C (the "Bonds"). The Bonds are being issued to provide funds to be used, along with other available funds, to refinance on February 1,2010 (the "Refunding"), the 2011-2016 maturities of the Issuer's General Obligation Improvement Bonds, Series 2000A, dated, as originally issued, as of August 1, 2000, which are presently outstanding in the principal amount of $4,935,000 (the "Refunded Bonds"). February 1,2010 (the "Crossover Date"), is the earliest date upon which the Refunded Bonds may be redeemed without payment of premium. The Refunding is being carried out for the purpose described in Minnesota Statutes, Section 475.67, Subdivision 3, Section (b)(2)(i) and in compliance Minnesota Statutes, Chapter 475. 1.2. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the Issuer by Springsted Incorporated, sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of III , and associates (the "Purchaser"), to purchase the Bonds at a price of $ plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 1.3. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Manager are hereby authorized and directed to execute a contract on behalf of the Issuer for the sale of the Bonds in accordance with the Terms of Proposal. The good faith deposit of the Purchaser shall be retained and deposited by the Issuer until the Bonds have been delivered and shall be deducted from the purchase price paid at settlement. 1 1.4. Savings. It is hereby determined that: (a) by the issuance of the Bonds, the Issuer will realize a substantial interest rate reduction, a gross savings of approximately $326,145.00 and a present value savings (using the yield on the Bonds, computed in accordance with Section 148 of the Intemal Revenue Code of 1986, as amended (the "Code"), as the discount factor) of approximately $303,046.28; and (b) as of the Crossover Date, the sum of (i) the present value of the debt service on the Bonds, computed to their stated maturity dates, after deducting any premium, using the yield of the Bonds as the discount rate, plus (ii) any expenses of the refunding payable from a source other than the proceeds of the Bonds or investment earnings thereon, is lower by % (not less than 3%) than the present value of the debt service on the Refunded Bonds, exclusive of any premium, computed to their stated maturity dates, using the yield of the Bonds as the discount rate. SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY. 2.1. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the City Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2.2. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be originally dated May 1,2009, shall be in the denomination of$5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2011 2012 2013 $1,115,000 755,000 780,000 2014 2015 2016 $785,000 815,000 830,000 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein, provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.8 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2 2.3. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 2.7 and upon any subsequent transfer or exchange pursuant to Section 2.6, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on February 1 and August 1, commencing February 1,2010, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. 2.4. Redemption. The Bonds shall not be subject to optional redemption prior to their maturity. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on February 1,20_ and 20_ (the "Term Bonds") shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.4 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of such Bonds: Term Bonds Maturing February 1. 20 Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1,20_. Term Bonds Maturing February 1. 20 Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1,20_. 3 The City Manager shall cause notice of the call for redemption thereof to be published as required by law, and at least thirty and not more than 60 days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.6 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the Issuer shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding.] 2.5. Appointment ofInitial Registrar. The Issuer hereby appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Manager are authorized to execute and deliver, on behalf of the Issuer, a contract with the Registrar. Upon merger or consolidation ofthe Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws of the United States or one ofthe states ofthe United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The Issuer agrees to pay the reasonable and customary charges of the Registrar for the services performed. The Issuer reserves the right to remove the Registrar, effective upon not less than thirty days' written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 2.6. Registration. The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a bond register (the "Bond Register") in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. The term Holder or Bondholder as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name a Bond is registered in the Bond Register. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the Holder thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the Holder thereof or by an attorney duly authorized by the Holder in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for 4 registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the Issuer. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The Issuer and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Bond and for all other purposes, and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith, and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the Issuer 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 Issuer. If the mutilated, destroyed, stolen or lost Bond has already 5 matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. (j) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.7. Execution. Authentication and Delivery. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the Issuer by the signatures of the Mayor and the City Manager, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond 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 each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been prepared, executed and authenticated, the City Manager shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.8. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee ofDTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. 6 "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever, and neither the Registrar nor the Issuer shall be affected by any notice to the contrary. Neither the Registrar nor the Issuer shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the Issuer to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the Issuer determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the Issuer may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the Issuer and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. 7 (d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Manager is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. 2.9. Form of Bonds. The Bonds shall be prepared in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF GOLDEN V ALLEY GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDj SERIES 2009C Interest Rate % Maturity Date February 1,20 Date of Original Issue May 1,2009 CUSIP NO. REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS THE CITY OF GOLDEN V ALLEY, MINNESOTA (the "Issuer"), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above on the maturity date specified above and promises to pay interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual interest rate specified above, payable on February 1 and August 1 of each year, commencing February 1,2010 (each such date, an "Interest Payment Date"), [all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity]. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) ofthe calendar month next preceding such Interest Payment Date. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the Registrar described below, the principal 8 hereof are payable in lawful money of the United States of America by check or draft drawn on U.S. Bank National Association, S1. Paul, Minnesota, as bond registrar, transfer agent and paying agent (the "Registrar"), or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $5,080,000 (the "Bonds") issued pursuant to a resolution adopted by the City Council on April 21, 2009 (the "Resolutions") to provide funds, together with other available funds of the Issuer, to refund on February 1,2010, the 2011-2016 maturities of the Issuer's General Obligation Improvement Bonds, Series 2000A, dated, as originally issued, as of August 1, 2000, which are currently outstanding in the amount of $4,935,000. The Bonds are issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 475. The Bonds are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities. The Bonds are not subject to optional redemption prior to maturity. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the years 20_ and 20_ shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each of the years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20-- Term Bonds Maturing in 20-- Sinking Fund Payment Date Aggregate Principal Amount Sinking Fund Payment Date Aggregate Principal Amount $ $ The Issuer shall cause notice of the call for redemption thereof to be published if and as required by law, and at least thirty and not more than 60 days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds, at the holders' addresses as they appear on the bond register maintained by the Bond Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the Issuer shall default in the 9 payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding.] As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the Issuer at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the 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 Issuer will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the Issuer. The Issuer and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the Issuer nor the Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prior to and in the issuance of this Bond in order to make it a valid and binding general obligation of the Issuer in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that the Issuer has established its General Obligation Improvement Refunding Bonds, Series 2009C Bond Fund and has appropriated thereto certain ad valorem taxes levied upon all taxable property in the Issuer, which ad valorem taxes are estimated to be receivable in years and amounts not less than five percent in excess of the amounts required to pay the principal of and interest on the Bonds when due; that if necessary for payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the Issuer, without limitation as to rate or amount; that the issuance of this Bond, together with all other indebtedness of the Issuer outstanding on the date hereof and on the date of its actual issuance and 10 delivery, does not cause the indebtedness of the Issuer to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Golden Valley, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. CITY OF GOLDEN VALLEY, MINNESOTA (facsimile signature City Manager) (facsimile signature Mayor) CERTIFICATE OF AUTHENTICATION Dated: This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION, as Bond Registrar By Authorized Representative 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 the applicable laws or regulations: TEN COM - as tenants in common UTMA ................... as Custodian for....... .............. (Cust) (Minor) under Uniform Transfers to Minors Act ........... ... (State) TEN ENT - as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT 11 For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: [End of the Bond form] SECTION 3. USE OF PROCEEDS AND SECURITY 3.1. Bond Proceeds. Upon payment for the Bonds by the Purchaser, the City Manager shall deposit and apply the proceeds of the Bonds as follows: (a) $ shall be deposited in escrow with U.S. Bank National Association, in St. Paul, Minnesota (the "Escrow Agent"), the funds so deposited, together with funds of the Issuer in such amount as may be required, to be invested in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 8 (as directed by Section 475.67, Subdivision 13 thereof), maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to pay all interest to become due on the Bonds to and including the Crossover Date and to pay and redeem the outstanding principal of the Refunded Bonds on the Crossover Date (and the amounts in such account are irrevocably appropriated to such purposes); (b) $ shall be used to pay issuance expenses of the Bonds; and (c) $ shall be deposited in the Bond Fund created pursuant to Section 3.2 hereof. The Mayor and City Manager are hereby authorized to enter into an Escrow Agreement with the Escrow Agent establishing the terms and conditions for the escrow account in accordance with Minnesota Statutes, Section 475.67. 3.2. General Obligation Improvement Refunding Bonds. Series 2009C Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest 12 thereon unpaid, the City Manager shall maintain a separate debt service fund on the official books and records of the Issuer to be known as the General Obligation Improvement Refunding Bonds, Series 2009C Bond Fund (the "Bond Fund"), and the principal of and interest on the Bonds shall be payable from the Bond Fund. The Issuer irrevocably appropriates to the Bond Fund (a) the amount specified in Section 3.1 above; (b) all receipts of principal and interest on the investments held in the escrow account established pursuant to Section 3.1 to and including the Crossover Date (other than the sum of $4,935,000 received from maturing investments on the Crossover Date to be used to retire the Refunded Bonds) (c) commencing on the Crossover Date, special assessments pledged pursuant to the resolution authorizing issuance of the Refunded Bonds; (d) ad valorem taxes collected in accordance with the provisions of Section 3.3 hereof; and (e) such other funds as may be appropriated from time to time by the Issuer to the Bond Fund to pay principal of and interest on the Bonds. The moneys on hand in the Bond Fund from time to time shall be used solely to pay the principal of and interest on the Bonds. 3.3. Pledge of Taxing Powers. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with collections of special assessments pledged as described in Section 3.2 above, will produce not less than 5% in excess of the amount needed to meet when due the principal and interest payments on the Obligations, ad valorem taxes are hereby levied on all taxable property in the Issuer. The taxes are to be levied and collected in the following years and amounts: Levy Years Collection Years Amount See attached Levy Computation The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce the tax levies in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 4. DEFEASANCE. When all of the Bonds have been discharged as provided in this Section, all pledges, covenants and other rights granted by this Resolution to the Holders of the Bonds shall cease. The Issuer may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full, or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The Issuer may also 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 Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. The Issuer may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably 13 in escrow, with the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an earlier designated redemption date, provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the Issuer shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 5. CERTIFICATION OF PROCEEDINGS. 5.1. Registration of Bonds. The City Manager is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Hennepin County (the "County Auditor") and obtain a certificate that the Bonds have been duly entered upon the County Auditor's bond register and the tax required by law has been levied. 5.2. Authentication of Transcript. The officers of the Issuer and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds 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 in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the Issuer as to the correctness of all statements contained therein. 5.3. Official Statement. The Official Statement relating to the Bonds, dated April 7,2009, prepared and delivered on behalf of the Issuer by Springsted Incorporated, is hereby approved, and the officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency thereof. Springsted Incorporated is hereby authorized on behalf of the Issuer to prepare and distribute to the Purchaser within seven business days from the date hereof a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds as is required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission (the "SEC") under the Securities Exchange Act of 1934. The officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. SECTION 6. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING DISCLOSURE. 14 6.1. General Tax Covenant. The Issuer covenants and agrees with the registered owners 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 includable in gross income of the recipient under the Code and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all affirmative actions within its powers to ensure that the interest on the Bonds will not become includable in the gross income of the recipient under the Code and the Regulations. The Issuer has not and will not enter into any lease, management contract, operating agreement, use agreement or other contract relating to the use or operation of the facilities refinanced by the Bonds, or any portion thereof, or security for the payment of the Bonds which would cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 6.2. Arbitrage Certification. The Mayor and City Manager, being the officers of the Issuer charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and Section 1.148- 2(b) of the Regulations stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. 6.3. Arbitrage Rebate. The Issuer acknowledges that the Bonds are subject to the rebate requirements of Section 148(f) of the Code. The Issuer covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof. 6.4. Qualified Tax-Exempt Obligations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b )(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose of this representation) and are not excluded from this calculation by Section 265(b)(3)(C)(ii) of the Code which will be issued by the Issuer and all subordinate entities during calendar year 2009 does not exceed $30,000,000. 6.5. Redemption of Refunded Bonds. The City Manager is hereby directed to advise U.S. Bank National Association, as paying agent for the Refunded Bonds, to call the Refunded Bonds for redemption and prepayment on the Crossover Date and to give 15 notice of redemption in accordance with the resolution authorizing the issuance of the Refunded Bonds. A form of notice of redemption is attached hereto. 6.6. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. S 240. 15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will enhance the marketability of the Bonds, the Issuer hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The Issuer is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. The Issuer has complied in all material respects with any undertaking previously entered into by it under the Rule. If the Issuer fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The Issuer will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the Issuer, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the Issuer, commencing with the fiscal year ending December 31,2008, the following financial information and operating data in respect of the Issuer (the "Disclosure Information"): (A) the audited financial statements ofthe Issuer for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the 16 preceding fiscal year of the Issuer, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the Issuer, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the Issuer; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: City Property Values; City Indebtedness; and City Tax Rates, Levies and Collections. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the Issuer shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the Issuer shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the Issuer have materially changed or been discontinued, such Disclosure Information need no longer be provided if the Issuer includes in the Disclosure Information a statement to such effect, provided, however, that if such operations have been replaced by other Issuer operations in respect of which data is not included in the Disclosure Information and the Issuer determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(I) or subsection (d), then the Issuer shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation ofthe reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events which is a Material Fact (as hereinafter defined): 17 (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status of the security; (0) Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice ofthe occurrence of any of the following events or conditions: (A) the failure of the Issuer to provide the Disclosure Information required under paragraph (b)(I) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the Issuer under subsection (d)(2); (C) the termination of the obligations of the Issuer under this section pursuant to subsection (d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year ofthe Issuer. (c) Manner of Disclosure. The Issuer agrees to make available the information described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as appropriate: (1) the information described in paragraph (1) of subsection (b), to each then nationally recognized municipal securities information repository under the 18 Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the State Depository), if any; (2) the information described in paragraphs (2) and (3) of subsection (b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection (b), to any rating agency then maintaining a rating of the Bonds at the request of the Issuer and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs (1) or (2) of this subsection (c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term: Amendments: Interpretation. (1) The covenants of the Issuer in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the Issuer under this section shall terminate and be without further effect as of any date on which the Issuer delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the Issuer to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the Issuer from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent ofthe Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the Issuer accompanied by an opinion of Bond Counsel, who may rely on certificates of the Issuer and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the Issuer or the type of operations conducted by the Issuer, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)( 5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the 19 time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the Issuer agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. Linda R. Loomis, Mayor ATTEST: Susan M. Virnig, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member 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, signed by the Mayor and her signature attested by the City Clerk. 20 NOTICE OF REDEMPTION $13,010,000 General Obligation hnprovement Bonds, Series 2000A Dated as of August 1, 2000 City of Golden Valley, Minnesota NOTICE IS HEREBY GIVEN THAT there have been called for redemption and prepayment on February 1, 2010, all outstanding Bonds of the above-referenced issue maturing on February 1 in the following years and having the interest rates and CUSIP numbers listed below: Maturity Amount CUSIP # Rate Maturity Amount CUSIP # Rate 2011 $ 1,025,000 * 5.00% 2014 $ 775,000 * 5.20% 2012 700,000 * 5.00 2015 825,000 * 5.25 2013 750,000 * 5.10 2016 860,000 * 5.30 * indicates full call. The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to the date of redemption. Holders of the Bonds should present them for payment to U.S. Bank National Association, St. Paul, Minnesota, successor to U.S. Bank Trust National Association, on or before said date, when they will cease to bear interest, in the following manner: If by Mail: Ifby Hand or Overnight Mail: U.S. Bank National Association Corporate Trust Operations, 3rd Floor P. O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association 60 Livingston Avenue EP-MN-WS3C Bond Drop Window, 1st Floor St. Paul, MN 55107 In compliance with the Interest and Dividend Compliance Act of 1983 and Broker Reporting Requirements, the redeeming institutions are required to withhold 31 % of the principal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled through the submitting of a W.9 Form, which may be obtained at a bank or other fmancial institution. Additional information may be obtained from the undersigned or from Springsted Incorporated 85 E. Seventh Place, Suite 100, St. Paul, Minnesota 55101 (651-223-3000), financial consultant to the City of Golden Valley. ,20_. BY ORDER OF THE CITY COUNCIL OF GOLDEN VALLEY, MINNESOTA Dated: Isl City Manager 22 Public ~H~y Memorandum Police Department 763-593-8079 I 763-593-8098 (fax) Executive Summary For Action Golden Valley City Council Meeting April 21, 2009 Agenda Item 6. B. First Consideration - Ordinance #417 - Amending Section 10.85, Broadening the Type of Nuisance Activity Leading to Repeat Nuisance Call Service Fees Prepared By Stacy Altonen, Chief of Police Summary The proposed revisions to City Code Section 10.85, Repeat Nuisance Call Service Fee, broaden the nature of nuisance call types that can be included in the tally of nuisance activity calls occurring at a particular address; specifically, nuisance events would not be required to be of the "same or similar" kind. This revision will permit nuisance abatement enforcement of all nuisance activity, regardless of the nature of the violation. Police Department personnel have responded to several addresses on various nuisance complaints, but have been limited in enforcement efforts due to current City Code language which states the violations must be of "same or similar" kind. Attachment Underlined/Overscored Version of Section 10.85 (3 pages) Ordinance #417, Amending Section 10.85, Broadening the Type of Nuisance Activity Leading to Repeat Nuisance Call Service Fees (1 page) Recommended Action Motion to adopt Ordinance #417, Amending Section 10.85, Broadening the Type of Nuisance Activity Leading to Repeat Nuisance Call Service Fees. 9 10.85 Section 10.85: Repeat Nuisance Call Service Fee Subdivision 1. Purpose The purpose of this section is to protect the public safety, health and welfare and to prevent and abate repeat service response callsL by the City to the same property or location for nuisance service calls, as defined herein, which prevent police or public safety services to other residents of the City. It is the intent of the City by the adoption of this Section to impose and collect service call fees from the owner or occupant, or both, or property to which City officials must repeatedly respond for any repeat nuisance event or activity that generates extraordinary costs to the City. The repeat nuisance service call fee is intended to cover the costs in excess of the cost of providing normal law or code enforcement services and police protection in the City. Subdivision 2. Scope and Application This Section shall apply to all owners and occupants of private property which is the subject or location of tfle repeat nuisance service call~ by the City. This Section shall apply to any repeat nuisance service call~ made by City peace officers, part time peace officers, community service officers, animal control officers and code enforcement technicians. Subdivision 3. Definition of Nuisance Call or Similar Conduct A. The term "nuisance eaH" shall mean any activity, conduct, or condition occurring upon private property within the City to which the City is required to respond, including, but not limited to the following: 1. Any activity, conduct, or condition deemed by the City as a public nuisance under any provision of the City Code; 2. Any activity, conduct, or condition in violation of any provision of Chapter 10 of the City Code; 3. Any conduct, activity or condition constituting a violation of Minnesota state laws prohibiting or regulating prostitution, gambling, controlled substances, use of firearms; and 4. Any conduct, activity, or condition constituting disorderly conduct under Chapter 609 of Minnesota Statutes. B. The term "nuisance call" shall mean when the City is required to respond to any nuisance. Golden Valley City Code Page 1 of 3 9 10.85 Subdivision 4. Repeat Nuisance Service Call Fee The City Manager may impose a repeat nuisance service call fee upon the owner or occupant of private property if the City h~s rendered services or responded to the property responded to a nuisance call on three (3) or more occasions within a period of three hundred sixty-five (365) days in response to or for the abatement of any nuisance conduct, ~ctivit)', or condition of the some or simil~r kind.... The repeat nuisance service call fee under this Section shall be an amount as set forth and duly adopted by City Council resolution. All repeat nuisance service call fees imposed and charged against the owner or occupant under this Section shall be deemed delinquent thirty (30) days after the City's mailing a billing statement therefore. Delinquent payments are subject to a ten percent (10%) late penalty of the amount due. Subdivision 5. Notice No repeat nuisance service call fee may be imposed upon an owner or occupant of property without first serving on such owner or occupant written notice of the earlier nuisance service calls prior to the latest nuisance service call upon which the fee is imposed. The written notice shall: A. State the nuisance conduct, activity or condition that is or has occurred or is maintained or permitted on the property, the dates of the nuisance conduct, activity or condition; B. State that the owner or occupant may be subject to a repeat nuisance call service fee if a third nuisance service call is rendered to the property for tfle 5affte g nuisance, in addition to the City's right to seek other legal remedies or actions for abatement of the nuisance or compliance with the law, and C. Be served personally or by certified U.S. Mail upon the owner or occupant at the last known address. Subdivision 6. Right to Appeal Repeat Nuisance Service Call Fee Upon the imposition of a repeat nuisance service call fee, the City shall inform the owner or occupant of his/her right to a hearing on the alleged repeat nuisance service calls. The owner or occupant upon whom the fee is imposed may request a hearing by serving upon the City Clerk within five (5) business days of the mailing of the fee invoice, inclusive of the day the invoice is mailed, a written request for hearing. The hearing shall be heard by the City Council within thirty (30) days of the date of the owner or occupant's request for hearing. The hearing shall be conducted in an informal manner and the Minnesota Rules of Civil Procedure and Rules of Evidence shall not be strictly applied. The hearing need not be transcribed, but may be transcribed at the sole expense of the party who requests the transcription. After considering all evidence submitted, the City Council Golden Valley City Code Page 2 of 3 9 10.85 shall make written findings of fact and conclusions on the issue of whether the City responded to or rendered services for repeat nuisance service calls of the same or similar kind on three (3) or more occasions within a three hundred sixty-five (365) day period. The findings and conclusions shall be served upon the owner or occupant by u.s. Mail within twenty (20) days of the hearing. An owner or occupant's right to a hearing shall be deemed waived if the owner or occupant fails to serve a written request for hearing as required herein or fails to appear at the scheduled hearing date. Upon waiver of the right to hearing, or upon the City Council's written findings of fact and conclusions that the repeat nuisance call service fee is warranted hereunder, the owner or occupant shall immediately pay the fee imposed. Subdivision 7. Legal Remedies Nonexclusive Nothing in this Section shall be construed to limit the City's other available legal remedies for any violation of the law which may constitute a nuisance service call hereunder, including criminal, civil, injunctive or others. Source: Ordinance No. 290, 2nd Series Effective Date: 12-12-03 Golden Valley City Code Page 3 of 3 ORDINANCE N0.417, 2ND SERIES AN ORDINANCE AMENDING THE CITY CODE Amending Section 10.85, Broadening the Type of Nuisance Activity Leading to Repeat Nuisance Call Service Fees The City Council for the City of Golden Valley hereby ordains as follows: Section 1. City Code Section 10.85, subd. 1 is amended hereby, by restating the first sentence as follows: "The purpose of this section is to protect the public safety, health and welfare and to prevent and abate repeat service response calls, by the City to the same property or location for service calls, as defined herein, which prevent police or public safety services to other residents of the City." Section 2. City Code Section 10.85, subd. 2 is amended hereby by restating as follows: "Subdivision 2. Scope and Application. This Section shall apply to all owners and occupants of private property which is the subject or location of repeat nuisance service calls by the City. This Section shall apply to any repeat nuisance service calls made by City peace officers, part time peace officers, community service officers, animal control officers and code enforcement technicians." Section 3. City Code Section 10.85, subd. 3(A) is amended by deleting the word "call" after nuisance. Section 4. City Code Section 10.85, subd. 3(B) shall be added and shall read as follows: B. The term "nuisance call" shall mean when the City is required to respond to any nuisance. Section 5. City Code Section 10.85, subd. 4 is amended hereby by restating as follows: "The City Manager may impose a repeat nuisance service call fee upon the owner or occupant of private property if the City responded to a nuisance call on three (3) or more occasions within a period of three hundred sixty-five (365) days in response to or for the abatement of any nuisance. Section 6. City Code Section 10.85, subd. 5(B) is amended hereby by restating as follows: . "B. State that the owner or occupant may be subject to a repeat nuisance call service fee if a third nuisance call is rendered to the property for a nuisance, in addition to the City's right to seek other legal remedies or actions for abatement of the nuisance or compliance with the law; and" Adopted by the City Council this _ day of _, 2009. Is/Linda R. Loomis Linda R. Loomis, Mayor ATTEST: Is/Susan M. VirniQ Susan M. Virnig, City Clerk