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Home My WebLink About2010_07_27 CC PKTCity Council Packet July 27, 2010 1 Brookings City Council Tuesday, July 27, 2010 City Hall Council Chambers 311 Third Avenue 5:00 p.m. – Work Session 6:00 p.m. – Regular Meeting Mission Statement: The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 5:00 P.M. WORK SESSION Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. SDSU Innovation Campus Update. 2. Re-packaging/updating Economic Development Plans. 3. City Council Member Ex-Officio Reports. 4. Joint Powers Board City Member Updates. 5. City Council member introduction of topics for future discussion. * 6. Council Invites & Obligations. *Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to appoint Council Member Thorpe to the E911 Board. C. Action to schedule a special Joint City Council/Brookings Health Systems Board meeting for September 23rd. D. Action to amend the Temporary Alcohol License for Downtown Brookings, Inc., July 31st Taste of Brookings event, to include a rain location of 221 Main Avenue. Motion to approve, request public comment, roll call * Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Presentations, Special Requests/Invites & Reports 5. Presentation of the Annual ABLE Award. 6. Open Forum. 7. SDSU Student Senate Report. City Council Packet July 27, 2010 2 First Reading** 8. Ordinance No. 26-10: Rezoning Lots 2 and 3, Block 2, Folsom Addition from a Residence R-3A District to an Industrial I-1 District (110 6th Avenue South). Public Hearing: August 10th 9. Ordinance No. 27-10: A Conditional Use to establish an office on the West 100 feet of the North 150 feet of the South 347.2 feet of Carlisle’s Addition (321 9th Street). Public Hearing: August 10th ** No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Second Readings/Public Hearings 10. Public hearing and action on Resolution No. 71-10, a Resolution of Intent to Lease Real Property – Landfill. Open & Close Public Hearing, Motion to Approve, Roll Call 11. Public hearing and action on Resolution No. 72-10, a Resolution authorizing the execution, terms, issuance, sale and payment of Sales Tax Revenue and Refunding Bonds, Series 2010A in the aggregate principal amount of not to exceed Twenty One Million and 00/100 ($21,000,000) of the City of Brookings of Brookings County, South Dakota. Open & Close Public Hearing, Motion to Approve, Roll Call 12. Public hearing and action on Resolution No. 73-10, a Resolution to Annex the NE ¼ of Section 19-T110N-R49W excluding Lots H-4, H-5, and the platted areas thereof (north of the Ice Arena). Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 13. Presentation by South Dakota Employer Support of the Guard and Reserve (ESGR). Informational 14. Adjournment. Brookings City Council Tim Reed, Mayor Mike Bartley, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Jael Thorpe, Keith Corbett Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm, Friday @ 9 pm, and Saturday @ 1 pm. The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City Council Packet July 27, 2010 3 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. SDSU Innovation Campus Update. The CEO/Executive Director of the SDSU Innovation Campus, Teresa McKnight, will provide an update on the SDSU Innovation Campus. Items to be highlighted include: Time line of Achievements Partnerships Created Economic Contribution Economic Activity and Other Activities Benefits Accomplishments Challenges Examples of several North American Research Parks Estimated Time: 20 minutes City Council Packet July 27, 2010 4 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. Repackaging/updating Economic Development Plans. In accordance with Tier 3, Priority Item 2 of your 2010 Strategic Plan, you adopted this issue as a discussion topic for further consideration. The genesis of this issue was the desire to have a discussion to consider how well, or to what extent, our comprehensive economic development efforts are coordinated across various organizations and constituencies. Some agencies and their respective programs are comprehensive in nature while others are more narrowly focused on specific economic sectors. To varying degrees, each entity has their own respective work plan, consultant’s study, or program to accomplish their mission or its various parts. Agency Economic sector City of Brookings All ED efforts in city limits Chamber of Commerce Existing retail/service businesses Convention & Visitor Bureau Tourism and visitor traffic Visitor Promotion Board (city committee) Tourism and visitor traffic BEDC All ED efforts Downtown Brookings, Inc. Brookings Central Business District Vision Brookings All ED efforts through investments Growth Partnership SDSU Innovation Campus I-29 Coalition Regional ED efforts along I-29 In addition, there are several other entities affiliated with SDSU, the State of South Dakota (GOED), and regionalized Council of Governments (District 1) that also are engaged in various economic development activities. Estimated Time: 20 minutes City Council Packet July 27, 2010 5 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board and Utility Board will provide verbal reports regarding recent meetings they have attended. Utility Board: Council Members Bezdichek and Corbett Health Systems Board: Council Members Kubal and McClemans City Council Packet July 27, 2010 6 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. Joint Powers Board City Member Updates. Pursuant to council direction, “Joint Powers Board City Member Updates” will be a standing agenda item at all Council Work Sessions. The Council Members serving on the Joint Powers Board will provide verbal updates regarding recent meetings they have attended. Council Members Kubal and Bartley City Council Packet July 27, 2010 7 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. City Council Packet July 27, 2010 8 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 6. Council Invites & Obligations. Date Day Event & Brief Description Time Location Town Address Directions July 27 Tuesday Council Meeting 5:00 p.m. Council Chambers July 29 Thursday First District Assoc. of Local Governments Annual Picnic 5:45 p.m. Pavilion at the Codington County Memorial Park on Lake Kampeska July 31 Saturday EdgeBrook Short Course Open House 10am-Noon EdgeBrook Golf Course August 10 Tuesday Council Meeting 5:00 p.m. Council Chambers August 17 Tuesday Special Meeting 5:00 pm Council Chambers August 18 Wednesday SDML Public Works SDML Building, Fort Pierre August 24 Tuesday Council Meeting 5:00 p.m. Council Chambers September 14 Tuesday Council Meeting 5:00 p.m. Council Chambers Sept. 23-25 Thursday – Saturday NLC 18th Annual Leadership Summit “Leading the Charge in Local Government” Philadelphia, Pennsylvania September 28 Tuesday Council Meeting 5:00 p.m. Council Chambers October 12 Tuesday Council Meeting 5:00 p.m. Council Chambers October 26 Tuesday Council Meeting 5:00 p.m. Council Chambers November 9 Tuesday Council Meeting 5:00 p.m. Council Chambers November 23 Tuesday Council Meeting 5:00 p.m. Council Chambers Nov. 29 – Dec. 4 Monday – Saturday NLC-Congress of Cities Denver, CO December 14 Tuesday Council Meeting 5:00 p.m. Council Chambers December 28 Tuesday Council Meeting 5:00 p.m. Council Chambers City Council Packet July 27, 2010 9 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to appoint Council Member Thorpe to the E911 Board. C. Action to schedule a special Joint City Council/Brookings Health Systems Board meeting for September 23rd. D. Action to amend the Temporary Alcohol License for Downtown Brookings, Inc., July 31st Taste of Brookings event, to include a rain location of 221 Main Avenue. Motion to approve, request public comment, roll call Presentations, Special Requests/Invites & Reports 5. Presentation of the Annual ABLE Award. 6. Open Forum. 7. SDSU Student Senate Report. First Reading 8. Ordinance No. 26-10: Rezoning Lots 2 and 3, Block 2, Folsom Addition from a Residence R-3A District to an Industrial I-1 District (110 6th Avenue South). Public Hearing: August 10 9. Ordinance No. 27-10: A Conditional Use to establish an office on the West 100 feet of the North 150 feet of the South 347.2 feet of Carlisle’s Addition (321 9th Street). Public Hearing: August 10 Second Readings/Public Hearings 10. Public hearing and action on Resolution No. 71-10, a Resolution of Intent to Lease Real Property – Landfill. Open & Close Public Hearing, Motion to Approve, Roll Call 11. Public hearing and action on Resolution No. 72-10, a Resolution authorizing the execution, terms, issuance, sale and payment of Sales Tax Revenue and Refunding Bonds, Series 2010A in the aggregate principal amount of not to exceed Twenty One Million and 00/100 ($21,000,000) of the City of Brookings of Brookings County, South Dakota. Open & Close Public Hearing, Motion to Approve, Roll Call 12. Public hearing and action on Resolution No. 73-10, a Resolution to Annex the NE ¼ of Section 19-T110N-R49W excluding Lots H-4, H-5, and the platted areas thereof (north of the Ice Arena). Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 13. Presentation by South Dakota Employer Support of the Guard and Reserve (ESGR). Informational 14. Adjournment. City Council Packet July 27, 2010 10 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to appoint Council Member Thorpe to the E911 Board. C. Action to schedule a special Joint City Council/Brookings Health Systems Board meeting for September 23rd. D. Action to amend the Temporary Alcohol License for Downtown Brookings, Inc., July 31st Taste of Brookings event, to include a rain location of 221 Main Avenue. *Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. ACTION: Motion to Approve, Request Public Comment, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet July 27, 2010 11 CONSENT AGENDA #4 B. Action to appoint City Council Member Thorpe to the E911 Board. Mayor Reed is appointing City Council Member Jael Thorpe as ex-officio member to the E911 Board. City Council Packet July 27, 2010 12 CONSENT AGENDA #4 C. Action to schedule a special Joint City Council/Brookings Health Systems Board meeting for September 23rd. A special meeting of the City Council and Brookings Health Systems Board of Trustees is scheduled for Thursday, September 23rd from 5:00 – 7:00 p.m. at City Hall. Per State Law, City Council action is required to hold or cancel any meetings not included in its annual calendar of meetings. City Council Packet July 27, 2010 13 CONSENT AGENDA #4 D. Action to amend the Temporary Alcohol License for Downtown Brookings, Inc., July 31st Taste of Brookings event, to include a rain location of 221 Main Avenue. The Council approved at their June 22nd Council Meeting a Temporary On- Sale Malt Beverage and On-Sale Wine Retailers License for Downtown Brookings, Inc. “Taste of Brookings” event to be held July 31st. DBI is requesting to modify their application to include a rain location of 221 Main Avenue; Park & Recreation Building. A copy of the approved application is enclosed. City Council Packet July 27, 2010 20 Presentations/Reports/Special Requests 5. Presentation of the Annual ABLE Award. The Brookings Committee for People who have Disabilities have selected the Hampton Inn & Suites and Brookings Chiropractic Center to be the recipients of the 2010 ABLE Awards. The ABLE (for Ability, Belief, Leadership, and Equality) Award recognizes outstanding contributions to the implementation of the Americans with Disabilities Act. It is presented each year in conjunction with the celebration of the anniversary of the signing of the ADA into law by President George Bush on July 26, 1991. A copy of a Mayoral Proclamation proclaiming July 26th as ADA Day in Brookings is also enclosed in the packet. Past Winners 2009 Brookings Wesleyan Church 2008 The Shamrock 2007 Lowe’s Capital Card Services 2006 Ada Caldwell Residence Hall, SDSU 2005 Fishback Soccer Park Fergen’s Clothing 2004 Holiday Inn Express Applebee’s Neighborhood Bar & Grill 2003 Larson Ice Center 1st United Methodist Church 2002 SDSU Crothers Engineering Hall 2001 Brookings HyVee United Church of Christ 2000 St. Thomas More Catholic Church 1999 George S. Mickelson Middle School 1998 Downtown Subway City Council Packet July 27, 2010 21 MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS: On July 26, 1990, President George H. Bush signed into law the Americans with Disabilities Act (ADA) to ensure the civil rights of people with disabilities. This legislation established a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities; and WHEREAS: The ADA has expanded opportunities for Americans with disabilities by reducing barriers and changing perceptions, increasing full participation in community life. However, the full promise of the ADA will only be reached if public entities remain committed in their efforts to fully implement the ADA; and WHEREAS: On the 20th anniversary of the Americans with Disabilities Act, we, the City of Brookings, celebrate and recognize the progress that has been made by reaffirming the principals of equality and inclusion and recommitting our efforts to reach full ADA compliance; and NOW, THEREFORE, BE IT RESOLVED, that I, Tim Reed, Mayor of the City of Brookings, do hereby proclaim Monday, July 26, 2010 as: AMERICANS WITH DISABILITIES ACT DAY And call upon all citizens to work together with others across our city, state and nation to promote equality of opportunity, full participation, independent living and economic self-sufficiency for all people. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this of 26th day of July, 2010. Tim Reed, Mayor City Council Packet July 27, 2010 22 Presentations/Reports/Special Requests 6. Invitation for a Citizen to schedule time on the Council Agenda for an issue not listed. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 7. SDSU Student Senate Report. President – Brett Monson Vice-President – Erin Kennedy Administrative Assistant – Kate Wegehaupt Finance Chair – Anthony Sutton State & Local Chair – Eric Haiar http://studentorgs.sdstate.org/studentsassociation/Default.htm City Council Packet July 27, 2010 23 First Reading** 8. Ordinance No. 26-10: Rezoning Lots 2 and 3, Block 2, Folsom Addition from a Residence R-3A District to an Industrial I-1 District (110 6th Avenue South). Public Hearing: August 10, 2010 ** No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Applicant: Mark and Elizabeth Whaley Proposal: Rezone a parcel from high-density residential to light industrial Background: Single-family residential uses occupied most of the lots in this block in the early 1900’s. In 1947, the lot in the northeast corner of the block was used for the storing of buses. The 1966 Comprehensive Plan designated the entire block for high-density residential uses. In 1978, an apartment building was constructed in the middle of the block on the east side. The lot with the bus garage was converted into a Contractors Shop and Storage Yard at some point. In 1984, the owner petitioned and was approved to change the zoning on Lot 1 to an Industrial I-1 District. Over the years, additional buildings were constructed on the lot. Specifics: The rezoning proposal would expand the I-1 District 100 feet to the south. If rezoned, the south 50 feet would be required to remain as a landscape area (buffer). No encroachment pertaining to an industrial use would be permitted without a variance in the buffer area. Recommendation: The Planning Commission voted 8 yes and 0 no to recommend the rezoning. City Council Packet July 27, 2010 26 Planning Commission Brookings, South Dakota July 6, 2010 OFFICIAL MINUTES (excerpt) Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on July 6, 2010, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, Al Heuton, Dave Kurtz, John Sydow, and Gregg. John Gustafson was absent. Others present were Mark Whaley, Connie Swain, City Engineer Jackie Lanning, City Manager Jeff Weldon, Community Development Director Mike Struck, Planning and Zoning Administrator Dan Hanson and others. Item #4 - Mark and Elizabeth Whaley have submitted a petition to rezone Lots 2 and 3, Block 2, Folsom Addition, also known as 110 6th Avenue South from a Residence R-3A District to an Industrial I-1 District. (Cameron/Kurtz) Motion to approve the rezoning. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #4 – Mark Whaley stated that he currently rented the land on the corner where he conducted his business. His business was expanding, and he purchased the property south of the lot he was renting. His plan was to use the north 40 feet for his business and continue to rent the south portion for residential purposes. Fargen asked about access to the lot. Whaley replied that he would use the alley. Fargen asked about the garage on the lot. Whaley responded that it would be used by the tenant. Fargen inquired about outdoor storage. Whaley answered that some outdoor storage would be located on the south lot. Kurtz asked about the future of the house. Whaley had no other plans now other than to rent it for residential uses. City Council Packet July 27, 2010 29 Sec. 94-136 INDUSTRIAL I-1 LIGHT DISTRICT (a) Intent. This district is intended to provide for a number of light manufacturing, light processing, warehousing and service uses. This district includes the supportive commercial uses for the industrial businesses. (b) Scope of Regulations. The regulations set forth in this section or set forth elsewhere in this title, when referred to in this section, are the district regulations of the Industrial I-1 Light District. (c) Permitted Uses. 1. Assembling and packaging 2. Freight handling 3. Manufacturing, light 4. Storage and warehousing 5. Processing, light 6. Parking facility or lot 7. Office 8. Truck stop 9. Automobile service station 10. Public utility facility 11. Reverse vending machine 12. Contractors shop and storage yard 13. Motor vehicle repair shop 14. Semi-trailer storage 15. Farm Implement Sales 16. Telecommunications Tower (d) Permitted Special Uses. A building or premises may be used for the following purposes in conformance with conditions prescribed herein: 1. Day care facility a. A four-foot (4') high transparent fence shall be constructed between the play area and the street. b. An off-street pick-up and drop-off area shall be provided. 2. Light processing facility for recyclables a. All storage and processing areas shall have perimeter fencing on all sides. 3. Buy back center for recyclables a. A list of the types of recyclable material to be collected shall be approved prior to the issuance of any permit 4. Citizens drop-off facility for recyclables a. Containers or bins shall be provided for all waste material. b. No container shall be located within 100 feet of a residential district. 5. Household hazardous waste site a. Such uses shall be within a completely enclosed building. b. The applicant shall comply with the provisions of all applicable laws and ordinances. 6. Transfer site for recyclables City Council Packet July 27, 2010 30 a. All storage areas shall have perimeter fencing on all sides. b. A list of the types of recyclable material to be collected shall be approved prior to the issuance of any permit. 7. Automobile storage yard a. Impound area shall be surfaced with gravel, asphalt or concrete. (e) Conditional Uses. Kennel 1. Broadcast Tower 2. Outdoor Sales 3. Concrete Plant (f) Density, Area, Yard and Height Regulations. The I-1 district regulations shall be as follows: Min. Min. Min. Min. Min. Max. Lot Lot Front Side Rear Height Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. All Uses 20' 20'* 20'* 50' *A fifty foot (50') landscaped area shall be required between an abutting residential district boundary line and any structure, access drive, parking lot or other accessory use. (g) Accessory Uses. Accessory uses and building permitted in the I-1 District are buildings and uses customarily incidental to any of the permitted uses in the district. (h) Parking Regulations. Parking, loading and stacking within the I-1 District shall be in conformance with the regulations set forth in division 4 of article VI of this chapter (i) Sign Regulations. Signs within the I-1 District shall be in conformance with the regulations set forth in division 5 of article VI of this chapter (g) Other Regulations. Development within the I-1 District shall be in conformance with the regulations set forth in article II of this chapter City Council Packet July 27, 2010 31 First Reading** 9. Ordinance No. 27-10: A Conditional Use to establish an office on the West 100 feet of the North 150 feet of the South 347.2 feet of Carlisle’s Addition (321 9th Street). Public Hearing: August 10, 2010 ** No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Applicant: Brookings Area Habitat for Humanity Proposal: Establish an office in an existing residential structure Background: This house was moved onto the “lot” in 1953. It has been occupied by a variety of uses in the past including a parsonage, boardinghouse, group home, and domestic abuse shelter. The lot has a long driveway along the west side that leads to a detached garage. First Lutheran Church property surrounds the lot on all sides except to the west. This side abuts the rear yards of single-family dwellings that front on 3rd Avenue. Specifics: The building is in a unique location since no right-of-way is nearby. The church property (upon which it sits) has four (4) access points onto three (3) different streets, and it is my understanding the applicant and the church have a cross easement agreement for access. I also believe the house will be eventually moved to a more permanent location in the near future. The standards for an office use in the Residence R-2 District are as follows: Sec. 94-290. Office: Such uses shall be located on a collector or arterial street. Special attention shall be given to the architectural compatibility with surrounding residential properties. Consideration shall be given to the traffic generated by such use, the type of sign, the hours of operation and the character of the use. Parking shall be screened from any adjacent residential area. Recommendation: The Planning Commission voted 8 yes and 0 no to approve the Conditional Use subject to the condition listed in the ordinance. City Council Packet July 27, 2010 35 Planning Commission Brookings, South Dakota July 6, 2010 OFFICIAL MINUTES (excerpt) Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on July 6, 2010, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, Al Heuton, Dave Kurtz, John Sydow, and Gregg. John Gustafson was absent. Others present were Mark Whaley, Connie Swain, City Engineer Jackie Lanning, City Manager Jeff Weldon, Community Development Director Mike Struck, Planning and Zoning Administrator Dan Hanson and others. Item #5- Brookings Area Habitat for Humanity has submitted an application for a Conditional Use on the west 100 feet of the north 150 feet of the south 347.2 feet of Carlisle’s Addition, also known as 321 9th Street. The request is to establish an office in a Residence R-2 District. (Kurtz/Heuton) Motion to approve the Conditional Use. (Kurtz/Cameron) Amendment to the motion to add the following condition: The Conditional Use Permit shall be granted only to Brookings Area Habitat for Humanity. All present voted aye. AMENDMENT CARRIED. The motion, as amended, was voted on. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #5 – Connie Swain, Executive Director of Brookings Area Habitat for Humanity (BAHFH), stated the building would be used for an office for four (4) full-time employees. Students would also work two to four hours a week as volunteers. The office would operate from 8:00 AM to 5:00 PM on Monday through Friday. There would be one evening board meeting each month on Thursday nights. The garage and lot would not be used for any equipment storage, and customers would occasionally visit to fill out application forms. BAHFH and First Lutheran Church had a lease and a mutual agreement to allow ingress and egress across the church’s property. DeKraai inquired if the proposed use would generate more traffic than the previous use. Swain did not believe it would. Kurtz asked about the lease. Swain responded that if the lease is terminated, the house must be moved or demolished. Heuton asked if 8th Street was a collector street. Hanson replied yes. Cameron asked if BAHFH employees would park in the driveway. Swain answered that they would use the church’s parking lot. City Council Packet July 27, 2010 36 Second Readings/Public Hearings 10. Public hearing and action on Resolution No. 71-10, a Resolution of Intent to Lease Real Property. The City would like to lease a parcel of City-owned landfill property for farming operations, which is located in the East ½ of Section 8, R49W, T110N in Aurora Township. This property consists of approximately 106 acres of farmland and approximately 18 acres of pasture/hayland. The City has leased the property for farmland and pasture operations in the past and the lease of this property provides extra income for the City landfill budget as well as weed control. This lease will be a three year contract with an option to renew for an additional two years. The City requested quotes from local farmers and received two quotes for the land. Dan Luze provided the highest quote which was the following: 18 acres pasture/hayland: $35.00/acre 106 acres farmland: $101.10/acre This item requires a public hearing, based on the following statute: 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will authorize the City Manager to sign a lease agreement with Dan Luze for a three year contract with an option to renew for an additional two years for the above described property. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet July 27, 2010 37 Resolution No. 71-10 Resolution of Intent to Lease Real Property Be it Resolved the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with Dan Luze for a period of three (3) years, commencing on January 1, 2011 and ending December 31, 2013 with a two year option to renew pertaining to the following described property: The designated farmland at the Brookings Landfill, one hundred six (106) acres more or less of crop land in the NE ¼, Section 8, T110N, R49W, and eighteen (18) designated hay/pasture land acres more or less in NE ¼, Section 8, T110N, R49W in Brookings County, South Dakota. The Lease will be an amount of One Hundred One Dollars and Ten Cents ($101.10) per acre, for one hundred six (106) acres of crop land annually, and Thirty Five Dollars ($35.00) per acre, for eighteen (18) acres of pasture/hay land, payable in full on April 1. If a portion of the leased land is used for Solid Waste activities, the number of acres to be paid for will be adjusted at the unit price per acre. Be It Further Noted, that a Public Hearing on this Resolution was held on July 27, 2010 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 27th day of July, 2010. CITY OF BROOKINGS ___________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk City Council Packet July 27, 2010 38 Second Readings/Public Hearings 11. Public hearing and action on Resolution No. 72-10, a Resolution authorizing the execution, terms, issuance, sale and payment of Sales Tax Revenue and Refunding Bonds, Series 2010A in the aggregate principal amount of not to exceed Twenty-One Million and 00/100 ($21,000,000) of the City of Brookings of Brookings County, South Dakota. Resolution No. 72-10 authorizes the refinancing of the 2001, 2003, and 2005 Revenue Bonds and authorizes issuing an additional $6 Million dollars for the construction of the new City and County Administrative Building using Tax Exempt Bonds. By refinancing these Bonds we will be maintaining our cash flow at the present debt service levels. Principal and interest payment levels will be very similar to what is currently paid, and the Resolution extends our debt by one year; from 2021 to 2022. The Resolution also authorizes purchasing a Surety Bond for the Debt Reserve Fund. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve 1 Resolution No. 72-10 Resolution authorizing the execution, terms, issuance, sale and payment of Sales Tax Revenue and Refunding Bonds, Series 2010A in the aggregate principal amount of not to exceed Twenty One Million and 00/100 ($21,000,000) of the City of Brookings of Brookings County, South Dakota. WHEREAS, the City of Brookings is authorized by the provisions of SDCL §§10-52-2.10 to issue Sales Tax Revenue Bonds to fund capital improvements and land acquisition pursuant to the provisions of Chapter 78 of the Ordinances of Brookings, South Dakota; and WHEREAS, the City of Brookings is authorized by the provisions of SDCL §§ 6-8B-30 though 6- 8B-52 to issue sales tax bonds to refund and refinance validly issued outstanding sales tax bonds of the City; and WHEREAS, the City Council has determined that refunding certain Sales Tax Bonds of the City will reduce the interest expense to the City; and WHEREAS, the City Council has determined that is necessary and in the best interest of the City to issue Sales Tax Revenue and Refunding Bonds, Series 2010A of the City for the purpose of providing funds to: (i) full net advance refund the 2010 through 2021 maturities of the City’s Sales Tax Revenue Bonds, Series 2001 dated March 1, 2001, the 2010 through 2013 maturities of Sales Tax Revenue Refunding Bonds, Series 2003 dated September 1, 2003, the 2010 through 2015 maturities of the Sales Tax Revenue Bonds Series 2005 dated December 20, 2005, (ii) pay costs of the acquisition of land and construction of new city/county offices, (iii) fund a debt service reserve account for the Bonds and (iv) to pay the costs of issuance of the Bonds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BROOKINGS OF BROOKINGS COUNTY, AS FOLLOWS: ARTICLE I DEFINITIONS Section 1.1. Definition of Terms. In addition to the words and terms elsewhere defined in this Bond Resolution, the following words and terms as used herein, whether or not the words have initial capitals, shall have the following meanings, unless the context or use indicates another or different meaning or intent, and such definitions shall be equally applicable to both the singular and plural forms of any of the words and terms herein defined: "Act" means collectively SDCL Chapter 6-8B and Title 10-52, as amended. 2 "Authorized Officer of the City" means the Mayor and the Finance Officer, or, in the case of any act to be performed or duty to be discharged, any other member, officer, or employee of the City then authorized to perform such act or discharge such duty. "Bonds" means not to exceed $21,000,000 in aggregate principal amount of Sales Tax Revenue and Refunding Bonds, Series 2010A, dated in 2010, or such other designation or date as shall be determined by the City Council pursuant to Section 8.1 hereof, authorized and issued under the Bond Resolution. "Bond Counsel" means Meierhenry Sargent LLP, a firm of attorneys recognized as having experience in matters relating to the issuance of state or local governmental obligations. "Book-Entry Form" or "Book-Entry System" means a form or system, as applicable, under which physical Bond Bonds in fully registered form are issued to a Depository or to its nominee as Registered Owner, with the certificated Bonds being held by and "immobilized" in the custody of such Depository, and under which records maintained by persons, other than the City or the Registration Agent, constitute the written record that identifies, and records the transfer of the beneficial "book-entry" interests in those Bonds. "Bond Insurer" means a municipal bond insurance company which has the highest rating for the rating agencies. "Bond Payment Date" means each date on which interest, or both principal and interest, shall be payable on the Bonds so long as any of the Bonds shall be outstanding. "Bond Resolution" means the within Resolution, duly adopted by the City Council on the date hereof, as it may be amended from time to time. "Bondholder", "Holder" and "Registered Owner" means the registered owner of a Bond, including any nominee of a Depository. "Bonds" mean not to exceed 21,000,000 of Sales Tax Revenue and Refunding Bonds, Series 2010A, dated the Closing Date, or such other designation or date as shall be determined by the City Council pursuant to Section 8.1 hereof, authorized and issued under the Bond Resolution. "City" means the City of Brookings, Brookings County, South Dakota. "City Council” means the Common Council elected pursuant to the provisions of SDCL Title 9. "City of Brookings ” means the City of Brookings, Brookings County, South Dakota. "Closing Date" means the date of delivery and payment of the Bonds. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the United States Department of Treasury promulgated thereunder as in effect on the date of issuance of the Bonds. 3 "Costs of Issuance" means all costs, fees, charges and expenses incurred in connection with the issuance of the Bonds, including costs for bond insurance and rating agency fees. "Debt" means (1) indebtedness of the City for borrowed money or for the deferred purchase price of property or services, and expressly including the obligation to pay principal and interest on or with respect to revenue bonds, (2) the obligation of the City as lessee under leases which should be recorded as capital leases under generally accepted accounting principles, and (3) obligations of the City under direct or indirect guarantees in respect of, and obligations, contingent or otherwise, to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in subdivisions (1) and (2) above. "Depository" means any securities depository that is a clearing agency under federal laws operating and maintaining, with its participants or otherwise, a Book-Entry System, including, but not limited to DTC. "DTC Participant(s)" means securities brokers and dealers, banks, trust companies and clearing corporations that have access to the DTC system. "DTC" means the Depository Trust Company, a limited purpose company organized under the laws of the State of New York, and its successors and assigns. "Escrow Agent" means First Bank & Trust, Brookings, South Dakota, as Escrow Agent under the Escrow Agreement, or its successor or successors under the terms of the Escrow Agreement or such other entity as designated in the Bond Purchase Agreement. "Escrow Agreement" means the Refunding Escrow Agreement. "Finance Officer" means the Finance Officer of the City appointed pursuant to the provisions of South Dakota Codified Laws Title 9 or, in the absence of such appointment or in the event the person so appointed is unable or incapable of acting in such capacity, the person appointed by the Mayor and approved by the City Council to perform the duties otherwise performed by the Finance Officer, or his/her designee. "Interest Payment Date" means June 1 and December 1 of each year commencing June 1, 2011. "Letter of Representation" means the Issuer Letter of Representations or Blanket Issuer Letter of Representations to DTC of the City. "Mayor" means the Mayor elected pursuant to the provisions of SDCL § 9-8-1 or his or her designee acting on his or her behalf pursuant to the Charter. “Minimum Reserve” means the lesser of (i) 10% of the original principal amount, (ii) the maximum annual debt service on, or (iii) 125% of the average annual debt service on, all 4 Outstanding Bonds having a parity lien on the Net Revenues. City may apply for a Surety Bond from an insurance company rather than funding the full Reserve Fund amount. "Official Statement" and "Preliminary Official Statement" means that Official Statement and Preliminary Official Statement described in Section 8.2 hereof pertaining to the sale of the Bonds. "Original Issue Discount or O.I.D." means the difference between the issue price and the stated redemption price at maturity. The stated redemption price is determined without regard to optional call dates. "Original Issue Premium or O.I.P." means the difference between the issue price and the stated redemption price at maturity. The stated redemption price is determined without regard to optional call dates. "Outstanding," "Bonds Outstanding," or "Outstanding Bonds" means, as of a particular date all Bonds issued and delivered under this Bond Resolution except: (1) any Bond paid or redeemed or otherwise canceled by the City at or before such date; (2) any Bond for the payment of which cash, equal to the principal amount thereof with interest to date of maturity, shall have theretofore been deposited prior to maturity by the City for the benefit of the Owner thereof; (3) any Bond for the redemption of which cash, equal to the redemption price thereof with interest to the redemption date, shall have theretofore been deposited with the Registration Agent and for which notice of redemption shall have been mailed in accordance with this Bond Resolution; (4) any Bond in lieu of or in substitution for which another Bond shall have been delivered pursuant to this Resolution, unless proof satisfactory to the City is presented that any Bond, for which a Bond in lieu of or in substitution therefor shall have been delivered, is held by a bona fide purchaser, as that term is defined in Article 8 of the Uniform Commercial Code of the State, as amended, in which case both the Bond in lieu of or in substitution for which a new Bond has been delivered and such new Bond so delivered therefor shall be deemed Outstanding; and, (5) any Bond deemed paid under the provisions of Article VII of this Resolution, except that any such Bond shall be considered Outstanding until the maturity or redemption date thereof only for the purposes of being exchanged, transferred, or registered. "Paying Agent" means First Bank & Trust, Brookings, South Dakota or his or her successor or successors hereafter appointed in the manner provided in Article VI hereof. "Person" means an individual, partnership, corporation, trust, or unincorporated organization, or a governmental entity or agency or political subdivision thereof. “President” means the President of the City Council who may act for the Mayor in the absence of the Mayor. “Project” means the acquisition of land and construction of new city/county offices, (iii) fund a debt service reserve account for the Bonds and (iv) to pay the costs of issuance of the Bonds 5 "Purchase Agreement" means the Bond Purchase Agreement authorized pursuant to and described in Section 8.1 hereof by and between the City and the Underwriter. “Rating Agency” means one or more of the following rating agencies: Standard & Poor's Credit Market Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. “Record Date” means the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date. "Refunded Bonds" means the Sales Tax Revenue Bonds, Series 2001 dated March 1, 2001, Sales Tax Revenue Refunding Bonds, Series 2003 dated September 1, 2003 and Sales Tax Revenue Bonds, Series 2005 dated December 20, 2005. "Registration Agent" means First Bank & Trust, Brookings, South Dakota or his or her successor or successors hereafter appointed in the manner provided in Article VI hereof. "Resolution" means this Bond Resolution. "Reasonably Require Reserve" means an amount, if required, which will comply with the Internal Revenue Regulations specifying the maximum amount in a reserve fund permitted to be invested without regard to investment yield "Sales Tax" means the 1% in excess of 1% non ad valorem tax imposed by SDCL §10-52.2 and Chapter 78 Article II of the City of Brookings Code. "Schedule" means the schedule which indicates the principal and interest payments on the Bonds. "Series 2001 Bonds" means the City’s outstanding Sales Tax Revenue Bonds, Series 2001, dated March 1, 2001, as follows: Year Maturing Principal Outstanding Interest Rate CUSIP 2010 300,000 4.400% 113660 AZ7 2011 310,000 4.500% 113660 BA1 2012 325,000 4.600% 113660 BB9 2013 340,000 4.700% 113660 BC7 2014 585,000 4.800% 113660 BD5 2015 755,000 4.850% 113660 BE3 2016 790,000 4.950% 113660 BF0 2021 4,615,000 5.125% 113660 BG8 "Series 2003 Bonds" means the City’s outstanding Sales Tax Revenue Refunding Bonds, Series 2003, dated September 1, 2003, as follows: Year Principal Interest Rate CUSIP 6 Maturing Outstanding 2010 810,000 3.30% 113660 BP8 2011 840,000 3.45% 113660 BQ6 2012 870,000 3.50% 113660 BR4 2013 900,000 3.60% 113660 BS2 "Series 2005 Bonds" means the City’s outstanding Sales Tax Revenue Bonds, Series 2005, dated December 20, 2005, as follows: Year Maturing Principal Outstanding Interest Rate CUSIP 2010 305,000 3.55% 113660 CC6 2011 315,000 3.60% 113660 CE2 2012 325,000 3.65% 113660 CG7 2013 340,000 3.70% 113660 CH5 2014 355,000 3.80% 113660 CJ1 2015 365,000 3.90% 113660 CK8 "Underwriter" means Northland Securities, Inc., acting for and on behalf of themselves and such securities dealers as they may designate. “Verification Agent” means Grant Thorton, LLP, Minneapolis, Minnesota or any other firm that the Authorized Officers of the City appoint. Section 1.2. References to Resolution. The words "hereof", "herein", "hereunder", and other words of similar import refer to this Bond Resolution as a whole. Section 1.3. References to Articles, Sections, Etc. References to Articles, Sections, and other subdivisions of this Bond Resolution are to the designated Articles, Sections, and other subdivisions of this Bond Resolution as originally adopted. Section 1.4. Headings. The headings of this Bond Resolution are for convenience only and shall not define or limit the provisions hereof. ARTICLE II FINDINGS Section 2.1. It is hereby found and determined by the City Council as follows: 7 (a) The refunding of the Refunded Bonds as set forth herein through the issuance of the Bonds will result in the reduction in debt service payable by the City over the term of the Refunded Bonds thereby effecting a cost savings to the public; (b) It is advantageous to the City to deposit a portion of the proceeds from the sale of the Bonds and other funds of the City, if any, with the paying agent of the Refunded Bonds, will be sufficient to pay principal of, premium, if any, and interest on the Refunded Bonds. (c) The City hereby determines that all limitations upon the issuance of Bonds have been met and the Bonds are being authorized, issued and sold in accordance with the provisions of §§ 6- 8B-30 to 6-8B-52, inclusive. (d) All limitations upon the issuance of Bonds have been met and the Bonds are being authorized, issued and sold in accordance with the provisions of the Act. (e) It is hereby declared and found necessary to issue the Bonds in accordance and compliance with SDCL Chapter 10-52 and 6-8B. ARTICLE III AUTHORITY, PLEDGE, AND COLLECTION OF TAXES Section 3.1. Authority. In order to (i) refund the Refunded Bonds and (ii) pay costs incident to the sale and issuance of the Bonds, there shall be issued pursuant to, and in accordance with, the provisions of the Act, the Bond Resolution, and other applicable provisions of law, Sales Tax Revenue and Refunding Bonds, Series 2010A of the City in the aggregate principal amount of not to exceed $21,000,000. Section 3.2. Pledge. The City does hereby pledge so much of the collections of the Sales Tax as may be necessary to pay the principal, premium and interest on the outstanding Bonds and to maintain any debt service reserve established herein, if any. The Sales Tax is irrevocably pl edged to the prompt and full payment of the principal of and interest on each and all of said Bonds as such principal and interest respectively become due. Section 3.3. Collection of Taxes. The City agrees and covenants to impose and collect the Sales Tax as long as the Bonds are outstanding in accordance with SDCL 10-52. Section 3.4. Accounts. (a) Special Revenue Fund. The Finance Officer has established and will maintain the Special Revenue Fund as a separate and special account in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Sales Tax shall be credited, as received, to the Special Revenue 8 Fund. Within the Special Revenue Fund are various separate accounts to be maintained by the City. (b) Construction Account. There is hereby created and established as an account of the Special Revenue Fund, a “Construction Account” There shall be credited to the Construction Account the proceeds from the sale of the Bonds remaining after (a) the deposit to the Reserve Account required by Section 3.05, and (b) payment of the (i) underwriter’s discount, (ii) original issue discount and (iii) any other expenses of issuing the Bonds. All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Improvements. For the purposes of this Resolution, “costs of the Improvements” shall include costs of acquiring, constructing, and installing the Improvements including costs of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Improvements, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Improvements. All sums derived from the investment of moneys in the Construction Account shall remain in and become part of such fund. Upon completion of the Improvements and when all costs of the Improvements have been paid, any balance remaining in the Construction Account shall be credited to the Principal and Interest Account hereinafter established. (c) Principal and Interest Account. There is hereby created and established as an account of the Special Revenue Fund, a “Principal and Interest Account.” Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of accrued interest received from the Underwriter. Commencing on the date specified in the Bond Purchase Agreement, there shall be withdrawn from the Special Revenue Fund at least monthly and credited to the Principal and Interest Account an amount which will equal at least one-sixth (1/6th) of the interest becoming due on the next succeeding payment date and one -twelfth (1/12th) of the principal becoming due on the next succeeding payment dates with respect to the Outstanding Bonds. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due. (d) Reserve Account. There is hereby created and established as an account of the Special Revenue Fund, a “Reserve Account.” There shall be credited to the Reserve Account from the proceeds of the Bonds, an amount equal to the Minimum Reserve. Thereafter, in the event that the amount on deposit in the Reserve Account shall thereafter fall below the Minimum Reserve, additional deposits shall be made from the Pledged Revenues to the Reserve Account until the Minimum Reserve is again reached. Upon the issuance of any parity lien bonds, the Minimum Reserve established in this section shall be increased to an amount equal to the combined maximum annual debt service on the Outstanding Bonds. The balance required shall be funded on the delivery date of the parity lien bonds. Moneys credited to the Reserve Account may be used only for the payment of principal of and interest on the Outstanding Bonds and shall be used only in the event that there are insufficient moneys in the Principal and Interest Account to meet such principal and interest payments promptly when due. The interest from any investment of the Reserve Account may be transferred from time to time to the Construction Account, provided that after completion of the Improvements such interest shall be transferred 9 to the Principal and Interest Account. No transfer of investment income shall be made from the Reserve Account at any time when the balance therein is less than the Minimum Reserve. Such investments shall be subject to the limitations of South Dakota law. (e) Escrow Account. There is hereby established an Escrow Account under SDCL 6-8B-46, into which bond proceeds and any other moneys available for such purpose shall be used to pay, together with interest earnings, principal, interest and premiums, if any, on the Refunded Bonds when due. (f) Subordinate Lien Bonds. After making the above required payments, any remaining Pledged Revenues may be used for the payment of the principal of and interest on any additional sales tax revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds. (g) Other Expenditures. The remaining Pledged Revenues may be used for any legally authorized purpose. ARTICLE IV FORM, TERMS, EXECUTION, AND TRANSFER OF BONDS Section 4.1. Authorized Bonds; The aggregate principal amount of Bonds that may be issued under the Bond Resolution shall not exceed Twenty One Million and 00/100 Dollars ($21,000,000). Section 4.2. Form of Bonds; Execution. (a) The Bonds are issuable only as fully registered Bonds, without coupons, in the denomination of Five Thousand Dollars ($5,000) or any integral multiple thereof. All Bonds issued under the Resolution shall be substantially in the form set forth in Exhibit A attached hereto, and by this reference incorporated herein as fully as though copied. (b) The Bonds shall be executed in such manner as may be prescribed by applicable law in the name and on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the Finance Officer, and approved as to form and countersigned by a Resident Attorney by his manual or facsimile signature. (c) In the event any officer whose manual or facsimile signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such manual or such facsimile signature shall nevertheless be valid and sufficient for all purposes as if he or she had remained in office until such delivery. Any Bond may bear the facsimile signature of, or may be manually signed by, such individuals who, at the actual time of the execution of such Bond, were the proper officers of the City to sign such Bond, although on the date of the adoption by the City of this Resolution, such individuals may not have been such officers. 10 Section 4.3. Maturities, Interest Rates, and Certain Other Provisions of Bonds. (a) The Bonds shall become due and payable semi-annually of each of the years (subject to Optional Redemption of certain official Bonds as hereinafter provided) in the amount and bearing interest per annum as negotiated with the Underwriter. (b) The Bonds shall be designated "Sales Tax Revenue and Refunding Bonds, Series 2010A", or such other designation as shall be determined by the City Council pursuant to Section 8.1 hereof. The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bond is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on Interest Payment Date, commencing on June 1, 2011 and semiannually thereafter. Interest on each Bond shall be paid by wire transfer, check or draft of the Paying Agent, payable in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the Record Date. The principal of the Bond shall be payable in lawful money of the United States of America at the principal office of the Paying Agent. (c) The Registration Agent shall make all interest payments with respect to the Bonds on each interest payment date directly to the registered owners as shown on the Bond registration records maintained by the Registration Agent as of the close of business on the Record Date by wire transfer, check or draft mailed to such owners at their addresses shown on said Bond registration records, without, except for final payment, the presentation or surrender of such registered Bonds, and all such payments shall discharge the obligations of the City in respect of such Bonds to the extent of the payments so made. Payment of principal of and premium, if any, on the Bonds shall be made upon presentation and surrender of such Bo nds to the Registration Agent as the same shall become due and payable. Section 4.4. Negotiability of Bonds. All Bonds issued under this Resolution shall be negotiable, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. Section 4.5. Registration, Transfer and Exchange of Bonds. (a) The Bonds are transferable only by presentation to the Registration Agent by the registered owner, or his legal representative duly authorized in writing, of the registered Bond(s) to be transferred with the form of assignment on the reverse side thereof completed in full and signed with the name of the registered owner as it appears upon the face of the Bond(s) accompanied by appropriate documentation necessary to prove the legal capacity of any legal representative of the registered owner. Upon receipt of the Bond(s) in such form and with such documentation, if any, the Registration Agent shall issue a new Bond or Bonds to the assignee(s) in $5,000 denominations, or integral multiples thereof, as requested by the registered owner requesting transfer. The Registration Agent shall not be required to transfer or exchange any Bond during the period commencing on a Regular or Special Record Date and ending on the corresponding interest payment date of such Bond, nor to transfer or exchange any Bond after the publication of notice calling such Bond for redemption has been made, 11 nor to transfer or exchange any Bond during the period following the receipt of instructions from the City to call such Bond for redemption; provided, the Registration Agent, at its option, may make transfers after any of said dates. No charge shall be made to any registered owner for the privilege of transferring any Bond, provided that any transfer tax relating to such transaction shall be paid by the registered owner requesting transfer. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and neither the City nor the Registration Agent shall be affected by any notice to the contrary whether or not any payments due on the Bonds shall be overdue. Bonds, upon surrender to the Registration Agent, may, at the option of the registered owner, be exchanged for an equal aggregate principal amount of Bonds of the same maturity in any authorized denomination or denominations. (b) Except as otherwise provided in this subsection, the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, which will act as securities depository for th e Bonds. References in this Section to a Bond or the Bonds shall be construed to mean the Bond or the Bonds that are held under the Book-Entry System. One Bond for each maturity shall be issued to DTC and immobilized in its custody. Unless otherwise provided herein, a Book-Entry System shall be employed, evidencing ownership of the Bonds in authorized denominations, with transfers of beneficial ownership affected on the records of DTC and the DTC Participants pursuant to rules and procedures established by DTC. Each DTC Participant shall be credited in the records of DTC with the amount of such DTC Participant’s interest in the Bonds. Beneficial ownership interests in the Bonds may be purchased by or through DTC Participants. The holders of these beneficial ownership interests are herein referred to as the "Beneficial Owners." The Beneficial Owners shall not receive the Bonds representing their beneficial ownership interests. The ownership interests of each Beneficial Owner shall be recorded through the records of the DTC Participant from which such Beneficial Owner purchased its Bonds. Transfers of ownership interests in the Bonds shall be accomplished by book entries made by DTC and, in turn, by DTC Participants acting on behalf of Beneficial Owners. SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS, THE REGISTRATION AGENT SHALL TREAT CEDE & CO., AS THE ONLY HOLDER OF THE BONDS FOR ALL PURPOSES UNDER THIS RESOLUTION, INCLUDING RECEIPT OF ALL PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, RECEIPT OF NOTICES, VOTING AND REQUESTING OR DIRECTING THE REGISTRATION AGENT TO TAKE OR NOT TO TAKE, OR CONSENTING TO, CERTAIN ACTIONS UNDER THIS BOND RESOLUTION. Payments of principal, interest, and redemption premium, if any, with respect to the Bonds, so long as DTC is the only owner of the Bonds, shall be paid by the Registration Agent directly to DTC or its nominee, Cede & Co., as provided in the Letter of Representation. DTC shall remit such payments to DTC Participants, and such payments thereafter shall be paid by DTC Participants to the Beneficial Owners. Neither the City nor the Registration Agent shall be responsible or liable for payment 12 by DTC or DTC Participants, for sending transaction statements or for maintaining, supervising or reviewing records maintained by DTC or DTC Participants. In the event that (1) DTC determines not to continue to act as securities depository for the Bonds or (2) the City determines that the continuation of the Book-Entry System of evidence and transfer of ownership of the Bonds would adversely affect their interests or the interests of the Beneficial Owners of the Bonds, the City may discontinue the Book-Entry System with DTC. If the City fails to identify another qualified securities depository to replace DTC, the City shall cause the Registration Agent to authenticate and deliver replacement Bonds in the form of fully registered Bonds to each Beneficial Owner. NEITHER THE CITY NOR THE REGISTRATION AGENT SHALL HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO ANY DTC PARTICIPANT OR ANY BENEFICIAL OWNER WITH RESPECT TO (i) THE BONDS; (ii) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT; (iii) THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; (iv) THE DELIVERY OR TIMELINESS OF DELIVERY BY DTC OR ANY DTC PARTICIPANT OF ANY NOTICE DUE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED UNDER THE TERMS OF THIS BOND RESOLUTION TO BE GIVEN TO BENEFICIAL OWNERS, (v) THE SELECTION OF BENEFICIAL OWNERS TO RECEIVE PAYMENTS IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (vi) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC, OR ITS NOMINEE, CEDE & CO., AS OWNER. SO LONG AS A BOOK-ENTRY SYSTEM OF EVIDENCE OF TRANSFER OF OWNERSHIP OF ALL THE BONDS IS MAINTAINED IN ACCORDANCE HEREWITH, THE PROVISIONS OF THIS RESOLUTION RELATING TO THE DELIVERY OF PHYSICAL BOND CERTIFICATES SHALL BE DEEMED INAPPLICABLE OR BE OTHERWISE SO CONSTRUED AS TO GIVE FULL EFFECT TO SUCH BOOK- ENTRY SYSTEM. IF THE PROVISIONS OF THE LETTER OF REPRESENTATION SHALL BE IN CONFLICT WITH THE PROVISIONS OF THIS RESOLUTION AS SAID PROVISIONS RELATE TO DTC, THE PROVISIONS OF THE LETTER OF REPRESENTATION SHALL CONTROL. Section 4.6. Mutilated, Lost, Stolen, or Destroyed Bonds. (a) In the event any Bond is mutilated, lost, stolen, or destroyed, the City may execute, and upon the request of an Authorized Officer of the City the Registration Agent shall authenticate and deliver, a new Bond of like maturity, interest rate, and principal amount, and bearing the same number (but with appropriate designation indicating that such new Bond is a replacement Bond) as the mutilated, destroyed, lost, or stolen Bond, in exchange for the mutilated Bond or in substitution for the Bond so destroyed, lost, or stolen. In every case of exchange or substitution, the Bondholder shall furnish to the City and the Registration Agent: (1) such security or indemnity as may be required by them to save each of them harmless from all risks, however remote; and, (2) evidence to their satisfaction of the mutilation, destruction, loss, or theft of the subject Bond and the ownership thereof. Upon the issuance of any Bond upon such 13 exchange or substitution, the City and the Registration Agent may require the Owner thereof to pay a sum sufficient to defray any tax or other governmental charge that may be imposed in relation thereto and any other expenses, including printing costs and counsel fees, of the City and the Registration Agent. In the event any Bond which has matured or is about to mature shall become mutilated or be destroyed, lost, or stolen, the City may, ins tead of issuing a Bond in exchange or substitution therefor, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Bond) if the Owner thereof shall pay all costs and expenses, including attorneys fees, incurred by the City and the Registration Agent in connection herewith, as well as a sum sufficient to defray any tax or other governmental charge that may be imposed in relation thereto and shall furnish to the City and the Registration Agent such security or indemnity as they may require to save them harmless and evidence to the satisfaction of the City and the Registration Agent the mutilation, destruction, loss, or theft of such Bond and of the ownership thereof. (b) Every Bond issued pursuant to the provisions of this section shall constitute an additional contractual obligation of the City (whether or not the destroyed, lost, or stolen Bond shall be found at any time to be enforceable) and shall be entitled to all the benefits of this Bond Resolution equally and proportionately with any and all other Bonds duly issued under this Bond Resolution. (c) All Bonds shall be held and owned upon the express condition that the provisions of this Section are exclusive, with respect to the replacement or payment of mutilated, destroyed, lost, or stolen Bonds, and, to the maximum extent legally permissible, shall preclude all other rights or remedies, notwithstanding any law or statute now existing or hereafter enacted to the contrary. Section 4.7. Authentication. The Registration Agent is hereby authorized to authenticate and deliver the Bonds to the Underwriter or as it may designate upon receipt by the City of the proceeds of the sale thereof, to authenticate and deliver Bonds in exchange for Bonds of the same principal amount delivered for transfer upon receipt of the Bond(s) to be transferred in proper form with proper documentation as hereinabove described. The Bonds shall not be valid for any purpose unless authenticated by the Registration Agent by the manual signature of an officer thereof on the certificate set forth herein on the Bond form. Section 4.8. Qualification for DTC. The Registration Agent is hereby authorized to take such actions as may be necessary from time to time to qualify and maintain the Bonds for deposit with DTC, including but not limited to, wire transfers of interest and principal payments with respect to the Bonds, utilization of electronic book entry data received from DTC in place of actual delivery of Bonds and provision of notices with respect to Bonds registered by the DTC (or any of its designees identified to the Registration Agent) by overnight delivery, courier service, telegram, telecopy or other similar means of communication. No such arrangements with DTC may adversely affect the interest of any of the Owners of the Bonds, provided, however, that the Registration Agent shall not be liable with respect to any such arrangements it may make pursuant to this section. 14 Section 4.9. Additional Bonds. The City may issue additional bonds (the “Parity Bonds”) payable from the Pledged Revenues and having a lien upon such revenues on parity with the Bonds and the Outstanding Parity Bonds providing that: 1. the City is current in the payment of principal and interest on the Outstanding Bonds and is current in the collections required for the Principal and Interest Account and the Reserve Account. 2. the City is in compliance with all covenants of outstanding sales tax revenue bonds and 3. the Pledged Revenues collected by the City in the last preceding fiscal year are sufficient to cover 1.25 times the combined average annual principal and interest requirements on the Outstanding Bonds and any Parity Bonds. Section 4.10. Rating Agency. The Mayor and Finance Officer are authorized to enter into an agreement with a Rating Agency as may be required under the Bond Purchase Agreement. Any terms or conditions of the Rating Agency shall be attached to this resolution and incorporated herein as if stated in full. Section 4.11. Surety Bond. The Mayor and Finance Officer are authorized to purchase a surety bond upon such terms and conditions as they deem appropriate if necessary. Section 4.11 Bond Insurer. The Mayor and Finance Officer are authorized to enter into an agreement with a Bond Insurer as may be required under the Purchase Agreement. Any terms or conditions of the Bond Insurer shall be attached to this resolution and incorporated herein as if stated in full. 4.12. Bond Counsel. The Mayor and Finance Officer are authorized to retain Bond Counsel upon such terms as they approve. ARTICLE V REDEMPTION OF BONDS PRIOR TO MATURITY Section 5.1. Optional Redemption The Bonds shall be subject to optional redemption as set forth in the Bond Purchase Agreement. Section 5.2. Notice of Redemption. (a) Notice of call for redemption, whether optional or mandatory, shall be given by the Registration Agent on behalf of the City not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption by sending an appropriate notice to the registered owners of the Bonds to be redeemed by first-class mail, postage prepaid, at the addresses 15 shown on the Bond registration records of the Registration Agent as of the date of the notice; but neither failure to mail such notice nor any defect in any such notice so mailed shall affect the sufficiency of the proceedings for redemption of any of the Bonds for which proper notice was given. The Registration Agent shall mail said notices, in the case of mandatory redemption of term Bonds, as and when provided herein and in the Bonds, and, in the case of optional redemption, as and when directed by the City pursuant to written instructions from an Authorized Representative of the City given at least thirty (30) days prior to the redemption date (unless a shorter notice period shall be satisfactory to the Registration Agent). (b) Each notice required by this Section shall state: (1) the Bonds to be redeemed identified by CUSIP number and called amounts of each bond (for partial calls), date of issue, interest rate, and maturity date; (2) the date fixed for redemption; (3) that such Bonds will be redeemed at the principal corporate trust office of the Registration Agent; (4) the redemption price to be paid; and, (5) that from and after the redemption date interest thereon shall cease to accrue. If at the time of notice of optional redemption, the City shall not have deposited with the Registration Agent monies sufficient to redeem all the Bonds called for optional redemption, such notice may state that it is conditional, that is, subject to the deposit of the redemption monies with the Registration Agent not later than the opening of business on the redemption date, and such notice shall be of no effect unless monies are so deposited. Section 5.3. Payment of Redeemed Bonds. (a) If notice of redemption shall have been given in the manner and under the conditions provided in Section 5.2 hereof and if on the date so designated for redemption the Registration Agent shall hold sufficient monies to pay the redemption price of, and interest to the redemption date on, the Bonds to be redeemed as provided in this Bond Resolution, then: (1) the Bonds so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Bonds on such date; (2) interest on the Bonds so called for redemption shall cease to accrue; and, (3) such Bonds shall no longer be Outstanding or secured by, or be entitled to, the benefits of the Resolution, except to receive payment of the redemption price thereof and interest thereon from monies then held by the Registration Agent. (b) If on the redemption date, monies for the redemption of all Bonds or portions thereof to be redeemed, together with interest thereon to the redemption date, shall not be held by the Registration Agent so as to be available therefor on such date, the Bonds or portions thereof so called for redemption shall continue to bear interest until paid at the same rate as they would have borne had they not been called for redemption and shall continue to be secured by and be entitled to the benefits of the Resolution. ARTICLE VI REGISTRATION AGENT, ESCROW AGENT, VERIFICATION AGENT Section 6.1. Appointment and Acceptance of Duties. (a) The City hereby authorizes the Finance Officer to appoint the Registration and Paying Agent with respect to the Bonds and authorizes and directs the Registration Agent to maintain Bond 16 registration records with respect to the Bonds, to authenticate and deliver the Bonds as provided herein, either at original issuance, upon transfer, or as otherwise directed by the City, to effect transfers of the Bonds, to give all notices of redemption as required herein, to make all payments of principal and interest with respect to the Bonds as provided herein, to cancel and destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer, to furnish the City at least annually a certificate of destruction with respect to Bonds canceled and destroyed, and to furnish the City at least annually an audit confirmation of Bonds paid, Bonds Outstanding and payments made with respect to interest on the Bonds. The Mayor and the Finance Officer, or either of them is hereby authorized to execute and the Finance Officer is hereby authorized to attest such written agreement between the City and the Registration Agent as they shall deem necessary or proper with respect to the obligations, duties and rights of the Registration Agent. The payment of all reasonable fees and expenses of the Registration Agent for the discharge of its duties and obligations hereunder or under any such agreement is hereby authorized and directed. Section 6.2. Permitted Acts and Functions. The Registration Agent may become the Owner of any Bonds, with the same rights as it would have if it were not a Registration Agent. The Registration Agent may act as an underwr iter or fiscal agent in connection with the sale of the Bonds or of any other securities offered or issued by the City. Section 6.3. Resignation or Removal of the Registration Agent and Appointment of Successors. (a) The Registration Agent may at any time resign and be discharged of the duties and obligations created by the Bond Resolution by giving at least sixty (60) calendar days’ written notice to the Mayor. The Registration Agent may be removed at any time by the Finance Officer, provided that such removal does not constitute a breach of any contractual agreement with any such Registration Agent, by filing written notice of such removal with such Registration Agent. Any successor Registration Agent shall be appointed by the Mayor and shall be a trust company or a bank having the powers of a trust company, willing to accept the office of Registration Agent on reasonable and customary terms and authorized by law to perform all the duties imposed upon it by the Bond Resolution. (b) In the event of the resignation or removal of the Registration Agent, such Registration Agent shall pay over, assign and deliver any monies and securities held by it as Registration Agent, and all books and records and other properties held by it as Registration Agent, to its successor, or if there be no successor then appointed, to the Finance Officer until such successor be appointed. Section 6.4. Merger or Consolidation of Registration Agent. Any corporation or association into which the Registration Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its trust business and assets as a whole, or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation, or transfer to which it is a party shall be and become successor Registration Agent hereunder and shall be vested with all the trusts, powers, discretion, immunities, privileges, and other matters as was its predecessor, 17 without the execution or filing of any instrument or any further act, deed, or conveyance on the part of any of the parties hereto, anything herein contained to the contrary notwithstanding. Upon any such conversion, merger, consolidation, sale or transfer, the Finance Officer r shall have the right and option, upon notice to such converted, merged, consolidated or acquiring entity, to remove such entity and appoint a successor thereto pursuant to the procedures and requirements set forth in Section 6.3 hereof. Section 6.5. Escrow Agent. The City Council hereby authorizes the Mayor and Finance Officer to appoint the Escrow Agent. Section 6.6. Escrow Refunding Agreement. The Mayor and Finance Officer are authorized to enter into a Refunding Escrow Agreement. The final form of the Refunding Escrow Agreement shall be filed with the Finance Officer and open to public inspection. Section 6.7. Verification Agent. The City Council hereby authorizes the Mayor and Finance Officer to appoint the Verification Agent. Section 7.1. Call and Redemption of Refunded Bonds The Refunded Bonds shall be called on the dates set forth in the attached Exhibits B, C and D. The Bonds shall cease to accrue interest after the call dates. ARTICLE VIII SALE OF BONDS AND DEPOSIT OF PROCEEDS Section 8.1. Sale of Bonds. The Bonds shall be sold to the Underwriter at a price to be set forth in the Bond Purchase Agreement. The Mayor and the Finance Officer, or either of them, in consultation with the Underwriter, are authorized to make such changes in the structuring of t he terms and sale of the Bonds as they shall deem necessary to maximize the savings from the refunding of the Refunded Bonds. In this regard, they, or either of them, in consultation with the Underwriter, are authorized to cause to be sold an aggregate principal amount of the Bonds less than that authorized herein, cause fewer than all the Refunded Bonds to be refunded, to sell any or all of the Bonds as term Bonds with annual mandatory redemption requirements which will produce substantially the same annual principal reductions as authorized herein, to change the dated date of the Bonds, and to adjust principal and interest payment dates and redemption dates of the Bonds. The form of the Bond set forth in Exhibit A attached hereto shall be conformed to reflect any changes, if any, as hereinbefore mentioned. The Mayor and the President, or either of them, are hereby authorized to execute and the Finance Officer is authorized to attest the Purchase Agreement with the Underwriter providing for the purchase and sale of the Bonds. The Purchase Agreement shall be in form and content acceptable to the Mayor and Finance Officer, the execution thereof by either of them to constitute conclusive evidence thereof, and approved as to form and legality by the City Attorney; provided the Purchase Agreement 18 effects the sale of the Bonds in accordance with the provisions of this Resolution, and is not inconsistent with the terms hereof. The Mayor and the Finance Officer, or either of them, are authorized to cause the Bonds to be authenticated and delivered by the Registration Agent to the Underwriter and to execute, publish, and deliver all certificates and documents, including the Official Statement, and closing certificates and documents, as they shall deem necessary in connection with the sale and delivery of the Bonds. Section 8.2. Official Statement. The Mayor, Finance Officer, and the Underwriter are hereby authorized and directed to provide for the preparation and distribution of a Preliminary Official Statement describing the Bonds (the "Preliminary Official Statement"). After the Bonds have been sold, the Mayor and Finance Officer shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this resolution as are necessary or desirable to complete it as a final Official Statement for purposes of Rule 15c2-12(e)(3) of the Securities and Exchange Commission. To comply with paragraph (b) (3) of Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule") and with Rule G-32 and all other applicable rules of the Municipal Securities Rulemaking Board, the City agrees to deliver to the Underwriter, the Official Statement (which shall be a final official statement, as such term is defined in the Rule, as of its date) in an electronic format as prescribed by the MSRB. Section 8.3. Disposition of Bond Proceeds. The proceeds of the sale of the Bonds shall be disbursed as follows: (a) An amount representing accrued interest on the Bonds from the dated date to the closing date shall be deposited in their respective portion to the escrow and to the Principal and Interest Account to be used to fund the escrow and to pay interest of the Bonds on the first interest payment date following delivery of the Bonds, as the case may be; (b) An amount, together with other legally available funds of the City, if any, and investment earnings thereon, which shall be sufficient to purchase government securities for the escrow; which shall be sufficient to pay principal of and interest on the Refunded Bonds to and including December 1, 2012, shall be transferred to the Escrow Agent and applied as provided in the Escrow Agreement; (b) The remaining proceeds of the sale of the Bonds shall be used to pay costs of the acquisition of land and construction of new city/county offices, (iii) fund a debt service reserve account for the Bonds and (iv) to pay the costs of issuance of the Bonds including necessary legal, accounting and fiscal expenses, printing, engraving, advertising and similar expenses, administrative and clerical costs, rating agency fees, Registration Agent fees, and other necessary miscellaneous expenses incurred in connection with the issuance and sale of the Bonds. Any funds remaining after payment of said expenses shall be used to pay interest on the Bonds on the first interest payment date following delivery of the Bonds. 19 Section 8.4. Tax Matters. (a) The City 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 for federal income tax purposes under the Code and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the basic interest on the Bonds will not become includable in gross income for federal income tax purposes under the Code and the Regulations. (b) The Mayor and the Finance Officer, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution are hereby authorized and directed to execute and deliver to the Underwriter thereof a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected that the proceeds of the Bonds will be used in a manner that would not cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the Regulations. (c) The City shall file with the Secretary of the Treasury a statement con cerning the Bonds containing the information required by Section 149(e) of the Code. (d) Pursuant to Section 265(b)(3)(B)(ii) of the Code, the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code. The City hereby represents that it does not anticipate that obligations bearing interest not includable in gross income for purposes of federal income taxation under Section 103 of the Code (including refunding obligations as provided in Section 265 (b) (3) of the Code and including "qualified 501 (c)(3) Bonds" but excluding other "private activity bonds," as defined in Sections 141(a) and 145(a) of the Code) will be issued by or on behalf of the City and all "subordinate entities" of the City in 2010 in an amount greater than $30,000,000. ARTICLE IX NOTICE OF REFUNDING Section 9.1 Notice of Refunding. After the issuance of the Bonds, notice of the City’s intention to refund the Refunded Bonds shall be given, at the direction of the Finance Officer, by the respective paying agents for the Refunded Bonds, via first-class mail to the respective Registered Owners of the Refunded Bonds. Such notice shall be in substantially the form as provided in Exhibit B, C and D attached hereto and by this reference made a part hereof. 20 ARTICLE X MISCELLANEOUS Section 10.1. Failure to Present Bonds. (a) Subject to the provisions of Section 4.7 hereof, in the event any Bond shall not be presented for payment when the principal or redemption price hereof becomes due, either at maturity or at the date fixed for prior redemption thereof or otherwise, and in the event monies sufficient to pay such Bond shall be held by the Registration Agent for the benefit of the Owner thereof, all liability of the City to such Owner for the payment of such Bond shall forthwith cease, determine, and be completely discharged. Whereupon, the Registration Agent shall hold such monies, without liability for interest thereon, for the benefit of the Owner of such Bond who shall thereafter be restricted exclusively to such monies for any claim under the Resolution or on, or with respect to, said Bond. (b) If any Bond shall not be presented for payment within a period of five years following the date when such Bond becomes due, whether by maturity or otherwise, the Registration Agent shall, subject to the provisions of any applicable escheat or other similar law, pay to the City any monies then held by the Registration Agent for the payment of such Bond and such Bond shall (subject to the defense of any applicable statute of limitation) thereafter constitute an unsecured obligation of the City. Section 10.2. Payments Due on Saturdays, Sundays, and Holidays. In any case where the date of maturity or interest on or principal of any Bond, or the date fixed for redemption of any Bond, shall be a Saturday or Sunday or shall be, at the place designated for payment, a legal holiday or a day on which banking institutions similar to the Registration Agent are authorized by law to close, then the payment of the interest on, or the principal, or the redemption price of, such Bond need not be made on such date but must be made on the next succeeding day not a Saturday, Sunday, or a legal holiday or a day upon which banking institutions similar to the Registration Agent are authorized by law to close, with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date. Section 10.3. Miscellaneous Acts. The appropriate officers of the City are hereby authorized, empowered, and directed to do any and all such acts and things, and to execute, acknowledge, deliver, and, if applicable file or record, or cause to be filed or recorded, in any appropriate public offices, all such documents, instruments, and certifications, in addition to those acts, things, documents, instruments, and certifications hereinbefore authorized and approved, as may, in their discretion, be necessary or desirable to implement or comply with the intent of the Bond Resolution, or any of the documents herein authorized and approved, or for the authorization, issuance, and delivery by the City of the Bonds. 21 Section 10.4. Amendment. The City Council is hereby authorized to make such amendments to the Bond Resolution as will not impair the rights of the Bondholders. Section 10.5. No Recourse Under Bond Resolution or on Bonds. All stipulations, promises, agreements, and obligations of the City contained in the Initial Resolutions or the Resolution shall be deemed to be the stipulations, promises, agreements, and obligations of the City and not of any officer, director, or employee of the City in his or her individual capacity, and no recourse shall be had for the payment of the principal of or interest on the Bonds or for any claim based thereon or on the Initial Resolution or the Resolution against any officer, director, or employee of the City or against any official or individual executing the Bonds. Section 10.6. Partial Invalidity. If any one or more of the provisions of the Bond Resolution, or of any exhibit or attachment thereto, shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, or of any exhibit or attachment thereto, but the Bond Resolution, and the exhibits and attachments thereto, shall be construed the same as if such invalid, illegal, or unenforceable provision had never been contained herein, or therein, as the case may be. Section 10.7. Continuing Disclosure. The City hereby covenants and agrees that it will provide financial information and material event notices as required by Rule 15c2-12 of the Securities Exchange Commission for the Bonds. The Mayor is authorized to execute at the Closing of the sale of the Bonds, an agreement for the benefit of and enforceable by the owners of the Bonds specifying the details of the financial information and material event notices to be provided and its obligations relating thereto. Failure of the City to comply with the undertaking herein described and to be detailed in said closing agreement, shall not be a default hereunder, but any such failure shall entitle the owner or owners of any of the Bonds to take such actions and to initiate such proceedings as shall be necessary and appropriate to cause the City to comply with its undertaking as set forth herein and in said agreement, including the remedies of mandamus and specific performance. Section 10.8. Post Issuance Compliance. The City does hereby adopt the Meierhenry Sargent LLP Post Issuance Compliance Procedure Manual as the City’s written post issuance compliance procedures with regard to the Bonds. The City appoints the finance officer as the officer in charge of the post issuance compliance procedures. Section 10.9. Conflicting Resolutions Repealed. All resolutions or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed. 22 The above and foregoing resolution was moved for adoption by ____________________, seconded by _________________________ and upon roll call vote, voted aye, voted nay, Absent: whereupon the Mayor declared the resolution to be duly passed and adopted. Adopted: Published: Effective Date: CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 23 EXHIBIT A-(SUBSTANTIAL FORM OF BOND-SUBJECT TO CHANGE) UNITED STATES OF AMERICA STATE OF SOUTH DAKOTA BROOKINGS COUNTY CITY OF BROOKINGS SALES TAX REVENUE AND REFUNDING BONDS SERIES 2010A REGISTERED No. «No» $«AMOUNT» .00 Interest Rate Maturity Date Bond Date CUSIP No. «INTEREST_RATE» % «maturity» «cusip» Registered Owner: Cede & Co. 55 Water Street, 1st Floor. New York, New York 10041 Tax ID #13-2555119 Principal Amount: «DOLLARLONG» AND NO\100 DOLLARS REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby certified and recited that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this Bond did exist, have happened, been done and performed in regular and due form and time as required by law. The Bonds are issued and sold in full compliance in full compliance with South Dakota Codified Laws Sections 6-8B-30 to 6-8B-52 inclusive and are incontestable for any cause whatsoever after their delivery for value. STATEMENT OF INSURANCE Assured Guaranty Municipal Corp. (formerly known as Financial Security Assurance Inc.) (“AGM”), New York, New York, has delivered its municipal bond insurance policy (the “Policy”) with respect to the scheduled payments due of principal of and interest on this Bond to Fir st Bank & Trust, Brookings, South Dakota, or its successor, as paying agent for the Bonds (the "Paying Agent"). Said Policy is on file and available for inspection at the principal office of the Paying Agent and a copy thereof may be obtained from AGM or the Paying Agent. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. The owner of this Bond acknowledges and consents to the subrogation rights of AGM as more fully set forth in the Policy. This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until it shall have been authenticated by the execution by the Registrar of the certificate of authentication endorsed hereon. IN WITNESS WHEREOF, the City has caused this Bond to be signed by the manual or facsimile signature of its Mayor of the City and to be countersigned by the manual or facsimile signature of its Finance Officer all as of the Bond Date specified above. ATTEST: Finance Officer COUNTERSIGNED: Resident Attorney City of Brookings , South Dakota By: Mayor CERTIFICATE OF AUTHENTICATION This Bond is a Bond of the series designated therein and has been issued u nder the provisions of the within-mentioned Resolution and the date of its authentication is ____________, 2010. First Bank & Trust Brookings, South Dakota Bond Registrar and Paying Agent By:__________________________________ Authorized Officer 24 KNOW ALL MEN BY THESE PRESENTS: That the City of Brookings, South Dakota (the "City"), in Brookings County, in the State of South Dakota, hereby acknowledges itself to owe and for value received promises to pay, from the Sales Tax Bond Fund of the City, to the Registered Owner mentioned above in lawful money of the United States of America, together with interest thereon from the Bond Date mentioned above at the Interest Rate mentioned above. The interest hereon is payable June 1, 2011, and semiannually thereafter on June 1 and December 1 in each year to maturity or earlier redemption by wire transfer, check or draft mailed to the Registered Owner at its address as it appears on the Bond registration books of the City maintained by First Bank & Trust, Brookings, South Dakota, as Bond registrar and paying agent (the "Registrar"), as of the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date (the “Record Date”). The principal hereof due at maturity or upon redemption prior to maturity is payable at the office of Registrar upon presentation and surrender of this Bond at maturity or upon earlier redemption. The principal of, premium (if any) and interest on this Bond is payable in any coin or currency of the United States of America which, at the time of payment, is legal tender for the payment of public and private debts. The Bonds: This Bond is one of an authorized issue of Bonds limited in aggregate principal amount to a maximum of $21,000,000 (the "Bonds") all of like date and tenor except as to maturity, interest rates and privileges of redemption, the proceeds of this issue to: (i) full net advance refund the 2010 through 2021 maturities of the City’s Sales Tax Revenues Bonds, Series 2001 dated March 1, 2001, the 2010 through 2013 maturities of Sales Tax Revenue Refunding Bonds, Series 2003 dated September 1, 2003, the 2010 through 2015 maturities of the Sales Tax Revenue Bonds Series 2005 dated December 20, 2005, (ii) pay costs of the acquisition of land and construction of new city/county offices, (iii) fund a debt service reserve account for the Bonds and (iv) to pay the costs of issuance of the Bonds, pursuant to a resolution duly and regularly adopted by the City o n July ___, 2010 (the “Bond Resolution”), and are subject to all the provisions and limitations of the Resolution and Chapters 10-52 and Sections 6-8B-30 to 6-8B-52, South Dakota Codified Laws, as amended. Security Provisions: The Bonds are special limited obligations of the City and payments of principal and interest on the Bonds are payable solely from the 1% in excess of 1% non ad valorem tax imposed by SDCL §10-52.2 and Chapter 78 Article II of the City of Brookings Code (the “Pledged Revenues”). Reserve Account: Assured Guaranty will provide a Surety Bond for the Debt Service Reserve Fund. The surety bond will cover a reserve fund that would be in the amount equal to the lesser of (i) 10% of the original principal amount, (ii) the maximum annual debt service on, or (iii) 125% of the average annual debt service on, all Outstanding Bonds having a parity lien on the Net Revenues. City may apply for a Surety Bond from an insurance company rather than funding the full Reserve Fund amount. Additional Bonds: The City may issue additional bonds (the “Parity Bonds”) payable from the Pledged Revenues and having a lien upon such revenues on parity with the Bonds and the Outstanding Parity Bonds providing that: 1. the City is current in the payment of principal and interest on the Outstanding Bonds and is current in the collections required for the Principal and Interest Account and the Reserve Account. 2. the City is in compliance with all covenants of outstanding sales tax revenue bonds and 3. the Pledged Revenues collected by the City in the last preceding fiscal year are sufficient to cover 1.25 times the combined average annual principal and interest requirements on the Outstanding Bonds and any Parity Bonds. [Redemption: Redemption Language to be inserted] This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing a t the office of the Bond Registrar in Brookings, South Dakota, but only in the manner, subject to the limitations and upon payment of the charges provided in the Bond Resolution, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized denomination of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefore. 25 The City and the Bond Registrar may deem and treat the registered holder hereof as the absolut e owner hereof and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Bank Qualification: The City has in the Resolution designated such issue of Bonds as "qualified tax -exempt obligations" pursuant to Section 265(b)(3)(B)(III) of the Internal Revenue Code of 1986, as amended. Form of Bond Opinion ________________, 2010 CITY OF BROOKINGS BROOKINGS COUNTY, SOUTH DAKOTA $ ______________ SALES TAX REVENUE AND REFUNDING BONDS SERIES 2010A We have acted as bond counsel in connection with the issuance by the City of Brookings , Brookings County, South Dakota, (the "Issuer") of $ ______________ Sales Tax Revenue and Refunding Bonds, Series 2010A, dated ____________, 2010 (the "Bonds"). We have examined the law, Resolution ________ (the “Resolution”) and such certified proceedings and other papers as we deemed necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify such facts by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: 1. The Issuer is duly created and validly existing as a body corporate and politic and public instrumentality of the State of South Dakota with the corporate power to adopt and perform the resolution and issue the Bonds. 2. Resolution _____________ has been duly adopted by the Issuer on __________________, 2010 and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer and enforceable within its terms. 3. Pursuant to SDCL 10-52 (the "Act"), the Resolution creates a valid lien on the fund pledged by the Resolution for the security of the Bonds issued under the Resolution, consist ing of a pledge of the sales tax. The City pledges the 1% in excess of 1% non ad valorem tax imposed by SDCL §10-52.2 and Chapter 78 Article II of the City of Brookings Code 4. The Bonds have been duly authorized, executed and delivered by the Issuer an d are valid and binding special obligations of the Issuer, payable solely from the sources provided therefore in the resolution and enforceable within their terms. 5. The interest on the Bonds is excluded from gross income for federal income tax purpose s and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on certain corporations as defined for federal income tax purposes, such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Inter nal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. (We express no opinion regarding other federal tax consequences arising with respect to the Bonds.) 26 6. The Bonds are exempt from all taxation as property by the State of South Dakota, its subdivisions and municipalities and bear interest not includible in the gross income of th e recipient for purposes of computing any tax imposed by the provisions of South Dakota law, except for estate, inheritance tax and taxes imposed upon financial institutions. Under existing law, the interest on the Bonds is includible in "taxable income" for the State of South Dakota income tax purposes when the recipient is a "financial institution" as defined by Chapter 10 -43, South Dakota Codified Laws, according to present state laws, regulations and decisions. We express no further opinions regarding other South Dakota tax consequences arising with regard to the Bonds. 7. The Bonds are qualified tax-exempt obligations within the meaning of Section 265(b)(3)(B)(i)(III) of the Code. The Bonds are eligible for purchase by financial institutions. It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Meierhenry Sargent LLP AS PROVIDED IN THE RESOLUTION REFERRED TO HEREIN, UNTIL THE TERMINATION OF THE SYSTEM OF BOOK-ENTRY-ONLY TRANSFERS THROUGH DEPOSITORY TRUST COMPANY, NEW YORK, NEW YORK (TOGETHER WITH ANY SUCCESSOR SECURITIES DEPOSITORY APPOINTED PURSUANT TO THE RESOLUTION, "DTC"), AND NOTWITHSTANDING ANY OTHER PROVISIONS OF THE RESOLUTION TO THE CONTRARY, A PORTION OF THE PRINCIPAL AMOUNT OF THIS BOND MAY BE PAID OR REDEEMED WITHOUT SURRENDER HEREOF TO THE REGISTRAR. DTC OR A NOMINEE, TRANSFEREE OR ASSIGNEE OF DTC OF THIS BOND MAY NOT RELY UPON THE PRINCIPAL AMOUNT INDICATED HEREON AS THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID. THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID SHALL FOR ALL PURPOSES BE THE AMOUNT DETERMINED IN THE MANNER PROVIDED IN THE RESOLUTION. UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED OFFICER OF DTC (A) TO THE REGISTRAR FOR REGISTRATION OF TRANSFER OR EXCHANGE OR (B) TO THE REGISTRAR FOR PAYMENT OF PRINCIPAL, AND ANY BOND ISSUED IN REPLACEMENT HEREOF OR SUBSTITUTION HEREFOR IS REGISTERED IN THE NAME OF DTC AND ANY PAYMENT IS MADE TO DTC OR ITS NOMINEE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE ONLY THE REGISTERED OWNER HEREOF, DTC OR ITS NOMINEE, HAS AN INTEREST HEREIN. (Form of Assignment) FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto ____________________________________________________________________________________ ____________________________________________________________________________________ the within Bond and all rights thereunder, and hereby irrevocably co nstitutes and appoints ________________________________________ attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: NOTICE: The 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 whatever. 27 EXHIBIT B NOTICE OF REDEMPTION SALES TAX REVENUE BONDS, SERIES 2001 OF THE CITY OF BROOKINGS BROOKINGS COUNTY STATE OF SOUTH DAKOTA GREETINGS BONDHOLDER: Notice is hereby given to the owners and holders of following Bonds named in the above caption that the City of Brookings, Brookings County, State of South Dakota has exercised its option to call for rede mption and payment all of said Bonds prior to their maturity, and such Bonds will be paid on December 1, 2011, upon surrender of said Bonds, and such payment will be at a price of par plus accrued interest up to and including December 1, 2011. Year Maturing Principal Outstanding Interest Rate CUSIP 2010 300,000 4.400% 113660 AZ7 2011 310,000 4.500% 113660 BA1 2012 325,000 4.600% 113660 BB9 2013 340,000 4.700% 113660 BC7 2014 585,000 4.800% 113660 BD5 2015 755,000 4.850% 113660 BE3 2016 790,000 4.950% 113660 BF0 2021 4,615,000 5.125% 113660 BG8 Payment of the Bonds called for redemption will be made upon presentation and surrender of such Bonds at First Bank & Trust, Brookings, South Dakota. Called Bonds should be presented as follows: By Mail or Hand: Registered or certified insured mail is suggested when submitting Bonds for payment. When inquiring about this redemption, please have the Bond Number available. Please inform customer service representative of the CUSIP number(s) of the affected Bonds(s). Customer Service (605) 696-2200. First Bank & Trust Brookings, South Dakota _____________________________ As Registrar and Paying Agent Dated: Withholding of 28% of gross redemption proceeds of any payment made within the United States may be required by the Economic Growth and Tax Relief Reconciliation Act of 2003 ( the “Act”) unless the Paying Agent has the correct taxpayer identification number (social security number) or exemption certificate of the payee. Please furnish a properly completed form W-9 or exemption certificate or equivalent when presenting your Certificates. *The Issuer and Paying Agent shall not be responsible for the use of the CUSIP numbers selected, nor is any representation ma de as to their correctness indicated in the notice or as printed on any Certificate. They are included solely for the convenience of the holders. 28 EXHIBIT C NOTICE OF REDEMPTION SALES TAX REVENUE REFUNDING BONDS, SERIES 2003 OF THE CITY OF BROOKINGS BROOKINGS COUNTY STATE OF SOUTH DAKOTA GREETINGS BONDHOLDER: Notice is hereby given to the owners and holders of following Bonds named in the above caption that the City of Brookings, Brookings County, State of South Dakota has exercised its option to c all for redemption and payment all of said Bonds prior to their maturity, and such Bonds will be paid on December 1, 2011, upon surrender of said Bonds, and such payment will be at a price of par plus accrued interest up to and including December 1, 2011. Year Maturing Principal Outstanding Interest Rate CUSIP 2010 810,000 3.30% 113660 BP8 2011 840,000 3.45% 113660 BQ6 2012 870,000 3.50% 113660 BR4 2013 900,000 3.60% 113660 BS2 Payment of the Bonds called for redemption will be made upon pre sentation and surrender of such Bonds at First Bank & Trust, Brookings, South Dakota. Called Bonds should be presented as follows: By Mail or Hand: Registered or certified insured mail is suggested when submitting Bonds for payment. When inquiring about this redemption, please have the Bond Number available. Please inform customer service representative of the CUSIP number(s) of the affected Bonds(s). Customer Service (605) 696 -2200. First Bank & Trust Brookings, South Dakota _____________________________ As Registrar and Paying Agent Dated: Withholding of 28% of gross redemption proceeds of any payment made within the United States may be required by the Economic Growth and Tax Relief Reconciliation Act of 2003 ( the “Act”) unless the Paying Agent has the correct taxpayer identification number (social security number) or exemption certificate of the payee. Please furnish a properly completed form W-9 or exemption certificate or equivalent when presenting your Certificates. *The Issuer and Paying Agent shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made as to their correctness indicated in the notice or as printed on any Certificate. They are included solely for the convenience of the holders. 29 EXHIBIT D NOTICE OF REDEMPTION SALES TAX REVENUE BONDS, SERIES 2005 OF THE CITY OF BROOKINGS BROOKINGS COUNTY STATE OF SOUTH DAKOTA GREETINGS BONDHOLDER: Notice is hereby given to the owners and holders of following Bonds named in the above cap tion that the City of Brookings, Brookings County, State of South Dakota has exercised its option to call for redemption and payment all of said Bonds prior to their maturity, and such Bonds will be paid on December 1, 2012, upon surrender of said Bonds, and such payment will be at a price of par plus accrued interest up to and including December 1, 2012. Year Maturing Principal Outstanding Interest Rate CUSIP 2010 305,000 3.55% 113660 CC6 2011 315,000 3.60% 113660 CE2 2012 325,000 3.65% 113660 CG7 2013 340,000 3.70% 113660 CH5 2014 355,000 3.80% 113660 CJ1 2015 365,000 3.90% 113660 CK8 Payment of the Bonds called for redemption will be made upon presentation and surrender of such Bonds at First Bank & Trust, Brookings, South Dakota. Called Bonds should be presented as follows: By Mail or Hand: Registered or certified insured mail is suggested when submitting Bonds for payment. When inquiring about this redemption, please have the Bond Number available. Please inform customer serv ice representative of the CUSIP number(s) of the affected Bonds(s). Customer Service (605) 696-2200. First Bank & Trust Brookings, South Dakota _____________________________ As Registrar and Paying Agent Dated: Withholding of 28% of gross redemption proceeds of any payment made within the United States may be required by the Economic Growth and Tax Relief Reconciliation Act of 2003 ( the “Act”) unless the Paying Agent has the correct taxpayer identification number (social security number) or exemption certificate of the payee. Please furnish a properly completed form W-9 or exemption certificate or equivalent when presenting your Certificates. *The Issuer and Paying Agent shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made as to their correctness indicated in the notice or as printed on any Certificate. They are included solely for the convenience of the holders. City Council Packet July 27, 2010 68 Second Readings/Public Hearings 12. Public hearing and action on Resolution No. 73-10, a Resolution to Annex the NE ¼ of Section 19-T110N-R49W excluding Lots H- 4, H-5, and the platted areas thereof (north of the Ice Arena). Applicant: City of Brookings Proposal: Annex approximately 83 acres into the city Background: Portions of land in the NE¼ of Section 19-110-49 were originally annexed in 1967. This included land in the “Ag Plaza” area next to the By-Pass. In 1991 through 1993, the rest of what is called the Thelen Addition adjacent to Ag Plaza was annexed. The southeast quarter section was annexed in 1991. Specifics: I have attached the Annexation Plan excerpt from the Vision 2020 Comprehensive Plan. There are six guidelines that should be considered during an annexation process. The applicable guidelines for this request are as follows: 1. This area already has water and sewer lines under the future 32nd Avenue and in 34th Avenue. 2. There is a need for additional land for industrial purposes in order to provide optional locations for future businesses. 3. There are no readily identifiable adverse impacts. Under city ownership, the city will oversee planning and development. 4. Public services will be provided as necessary. 5. This land is projected for development within the planning period. Recommendation: The Planning Commission voted 8 yes and 0 no to recommend annexing the land. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet July 27, 2010 69 Resolution No. 73-10 A Resolution to Annex the NE ¼ of Section 19-T110N-R49W excluding Lots H-4, H-5, and the platted areas thereof (north of the Ice Arena). Whereas, the City of Brookings is authorized pursuant to South Dakota Codified Law 9-4-1 to annex contiguous territory upon receipt of a written petition, describing said territory sought to be annexed, signed by not less than three-fourths (3/4) of the legal voters and by the owner or owners of not less than three-fourths (3/4) of the value of said territory, and Whereas, the City of Brookings desires to annex the following described property, to wit: the NE ¼ of Section 19-T110N-R49W excluding Lots H-4, H-5, and the platted areas thereof, and Whereas, the aforesaid land is contiguous to the present boundaries of the City of Brookings, and Whereas, the City of Brookings has received a Petition for Annexation of Territory signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid property and by not less than three-fourths (3/4) of the legal voters residing in said territory, now therefore Be It Resolved by the City of Brookings, South Dakota that the property described above is hereby annexed to the City of Brookings. Dated this 27th day of July, 2010. CITY OF BROOKINGS ___________________________ Tim Reed, Mayor ATTEST: ________________________ Shari Thornes, City Clerk City Council Packet July 27, 2010 72 Planning Commission Brookings, South Dakota July 6, 2010 OFFICIAL MINUTES (excerpt) Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on July 6, 2010, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, Al Heuton, Dave Kurtz, John Sydow, and Gregg. John Gustafson was absent. Others present were Mark Whaley, Connie Swain, City Engineer Jackie Lanning, City Manager Jeff Weldon, Community Development Director Mike Struck, Planning and Zoning Administrator Dan Hanson and others. Item #6 - the City of Brookings has submitted a petition to annex the NE¼ of Section 19- T110N-R49W excluding Lots H-4, H-5, and the platted areas thereof. (Heuton/DeKraai) Motion to approve the annexation. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #6 – Hanson stated that adjoining land had been annexed in 1967, 1991, and 1993. The parcel consisted of about 83 acres. Kurtz noted that the area met the annexation criteria and was included for development in the Vision 2020 Future Land Use Plan. City Council Packet July 27, 2010 74 Other Business: 13. Presentation by South Dakota Employer Support of the Guard and Reserve (ESGR). Paul Phalen, ESGR Program Support Manager, and Don Kelpin, SD Committee Chair, will be present to provide a briefing on the role of employer support of the Guard and Reserve and the mission of the Guard and Reserve as it relates specifically to Brookings. Informational City Council Packet July 27, 2010 75 14. Adjourn.