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DAKOTA COMMUNICATIONS CENTER <br />March 15, 2007 <br />Dave Osberg <br />City Administrator <br />City of Hastings <br />101 4"' Street. E. <br />Hastings, MN 55033 <br />RE: FINANCING -DCC EQUIPMENT ACQUISITIONS <br />Dear Administrator Osberg, <br />This letter and resolution regarding DCC equipment acquisition financing are being provided for use at your <br />upcoming City Council meeting. <br />Background <br />Dakota Communications Center budget provided approximately $6.629 million for the acquisition of equipment and <br />reimbursements for conversion costs. The capital expenditures are proposed to be financed with the issuance of <br />debt to be repaid with member assessments over a seven year period consistent with the approved DCC Budget. <br />The DCC Executive Committee recommended at its November 8 meeting and the Board approved at its <br />November 15 meeting, retaining Dorsey Law as legal counsel and Springsted Incorporated as fiscal consultants for <br />the issuance of the debt. <br />At its December 2006 meeting, the Board concurred with the Executive Board recommendation to proceed with <br />the issuance of revenue bonds to finance the equipment acquisitions. The equipment acquisition process, award of <br />contracts and approval of debt issuance is anticipated to be completed by April 2007. <br />Resolution Ratifving the Proaosed Issuance and Sale of Dakota Communications Center Public Safetv <br />Revenue Bonds <br />Each member of the Dakota Communication Center is being requested to approve the Resolution relating to the <br />issuance of the debt. A copy of the Resolution is attached. The Resolution recommends approval of a Resolution <br />whereby the debt will not exceed $7.6 million; however, based on current market conditions the final bond issue is <br />anticipated to be $7.435 million. The salient terms and conditions are as follows: <br />