2. Street Improvement District #2007-1

September 4, 2007 Page 2 (6) Resolution Approving Engineer's Report. (7) Resolution Directing Auditor to Advertise for Bids. (8) Regular meeting of Cass County Board of Commissioners, Commission Minutes dated August 6, 2007. (9) Resolution Accepting Bid showing receipt of Engineer's Statement of Estimated Cost and directing execution of contract. (10) The engineer has estimated the cost of maintenance of the improvement for two years to be $28,000.00, and this cost has been added to the project cost to cover the maintenance of the improvement. (11) The engineer has also included an amount equal to $1,000.00 plus three percent (3%) of the total project cost, but not exceeding $10,000.00, to the project cost to cover administrative expense for the County. (12) Pursuant to paragraph 5 of the Cass County Commission Special Assessment District Policy Manual, the plans and specifications for the paving of Granberg's Subdivision and Amber Plain's Subdivision have been submitted to the Stanley Township Board of Supervisors and subsequently approved by the Township Board of Supervisors at their August 14, 2007, meeting. (13) The plans and specifications have been submitted to the Cass County Engineer for his consideration and approval. It is my understanding that the Cass County Engineer has approved the plans and specifications. Based upon the above review of the documents and their consistency with the North Dakota Century Code and with the Cass County Commission Policy Manual, I am of the opinion that the Cass County Commission may proceed with the bond sale as scheduled on October 1, 2007. I have had an opportunity to speak with the Cass County Auditor, who indicated that a year of capitalized interest would also need to be added to the project due to the fact that the Special Assessment Commission may not be able to get the project specially assessed before the deadline to turn special assessments in to be certified against the property. As such, the fiscal agent, Dougherty & Company LLC, has determined the amount of capitalized interest for this project will be $8,000.00, bringing the total amount bonded to$365,000.00. I have included a copy of the Estimated Funding Required for the project, the Equal Annual Special Assessment Cash Flow by District, the Special Assessment Cash Flow and, finally, the Fifteen Year Repayment Schedule for the bond issue. I will begin the preparation of the resolution authorizing the sale of the bond in this matter and promptly submit it to Heather Worden to be approved by the Cass County Commission. It should be noted that the Cass County Commission should also pass a resolution at its September 17, 2007, meeting directing the OHNSTAD TWICHELL, P.C.