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City Council Agenda Packet 08-23-2010AGENDA REGULARMEETING–MONTICELLOCITYCOUNCIL Monday,August23,2010–7p.m. Mayor:ClintHerbst CouncilMembers:TomPerrault,GlenPosusta,BrianStumpf,SusieWojchouski 1.CalltoOrderandPledgeofAllegiance 2A.ApprovalofMinutes–August9,2010SpecialMeeting 2B.ApprovalofMinutes–August9,2010RegularMeeting 3.Considerationofaddingitemstotheagenda 4.Citizencomments,publicserviceannouncementsandCouncilupdates a.CitizenComments: b.PublicServiceAnnouncements: 1)MovieinthePark(9/11) 2)BusinessExpo(10/3) c.StaffUpdates: 1)FNMConstructionUpdate 5.ConsentAgenda: A.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments B.ConsiderationofadoptingResolution#2010-53toacceptcontributionof$250 fromTomPerrault C.ConsiderationofratifyingappointmentforvacantPoliceAdvisoryCommission seat D.ConsiderationofextendingthecontractforauditserviceswithMMKRfor2010, 2011and2012audityears E.ConsiderationofadoptingOrdinance#519addingTitle2,Chapter10establishing theIndustrial&EconomicDevelopmentCommittee(IEDC)withinCity Ordinance F.Considerationofacceptinginvitationandapprovingout-of-statetravelforCity AdministratortoattendandspeakatNATOAconference SPECIALMEETING 5p.m.–SketchPlanReview,Masters5th Avenue 5:30p.m.–BudgetWorkshop G.ConsiderationofapprovingquotesandauthorizingrepairstotheMonticello CommunityCenterbuilding H.ConsiderationofauthorizingCitystafftodevelopaleaserevenueprogram allowingantennasandtechnologydevicestobemountedoncity1MGwater towerandintheFiberNetHead-endbuilding I.Considerationofapprovingout-of-statetravelforMetaSwitchtrainingfortwo FiberNetemployees 6.Considerationofitemsremovedfromtheconsentagendafordiscussion 7.ContinuationofPublicHearing–ConsiderationofadoptingResolution#2010-56 approvingordenyingvacationofMapleStreetadjacenttotheMississippiRiverper petitionofabuttinglandowners 8.ConsiderationofadoptingResolution#2010-54approvingsaleofGeneralObligation ImprovementandRefundingBonds,Series2010A 9.PULLEDFROMAGENDA 10.ConsiderationofappointingaCouncilMembertoattendtrainingforcontinuationof Monticello’sLocalBoardofAppeal&Equalization 11.Considerationofallocatinggeneralfunddollarsin2011forcompletionoftheEmbracing Downtownstudy 12.ConsiderationofacceptingquotesandawardingacontractforareaderboardsignatHi- WayLiquorssite,contingentonPlanningCommissionapprovals 13.ReviewoftheMonticelloRentalHousingLicenseordinanceandconsiderationof possiblemodificationstotheprogram 14.AddedItems 15.ApprovepaymentofbillsforAugust23rd 16.Adjournment CityCouncilAgenda:08/23/10 1 5A.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments (TE) Noreportavailable. CityCouncilAgenda:08/23/10 1 5B.ConsiderationofadoptingResolution#2010-53toacceptcontributionfromTom Perrault (CS) A.REFERENCEANDBACKGROUND: TomPerraultiscontributing$250forAugusttogointotheGeneralFund.Asrequired bystatestatute,iftheCityacceptsthedonationoffunds,theCityCouncilneedstoadopt aresolutionspecifyingtheamountofthedonationanditsuse. A1.BudgetImpact:None A2.StaffWorkloadImpact:Staffaccountsforandreconcilesdonationscontributed throughtheCity. B.ALTERNATIVEACTIONS: 1.Approvethecontributionsandauthorizeuseoffundsasspecified. 2.Donotapprovethecontributionsandreturnthefundstothedonors. C.STAFFRECOMMENDATION: Staffrecommendationistoadopttheresolutionacceptingthecontributions. D.SUPPORTINGDATA: ResolutionNo.2010-53 CityofMonticello RESOLUTIONNO.2010-53 APPROVINGCONTRIBUTIONS WHEREAS,theCityofMonticelloisgenerallyauthorizedtoaccept contributionsofrealandpersonalpropertypursuanttoMinnesotaStatutesSections 465.03and465.04forthebenefitofitscitizensandisspecificallyauthorizedtomaintain suchpropertyforthebenefitofitscitizensinaccordancewiththetermsprescribedbythe donor.SaidgiftsmaybelimitedunderprovisionsofMNStatutesSection471.895. WHEREAS,thefollowingpersonsandorentitieshaveofferedtocontribute contributionsorgiftstotheCityaslisted: DONOR/ENTITYDESCRIPTIONVALUE TomPerraultCash$250 WHEREAS,allsaidcontributionsareintendedtoaidtheCityinestablishing facilities,operationsorprogramswithinthecity’sjurisdictioneitheraloneorin cooperationwithothers,asallowedbylaw;and WHEREAS,theCityCouncilherebyfindsthatitisappropriatetoacceptthe contributionsoffered. NOWTHEREFOREBEITRESOLVED bytheCityCouncilofMonticelloas follows: 1.ThecontributionsdescribedaboveareherebyacceptedbytheCityof Monticello. 2.Thecontributionsdescribedabovewillbeusedasdesignatedbythe donor.Thismayentailreimbursingorallocatingthemoneytoanother entitythatwillutilizethefundsforthefollowingstatedpurpose: DONOR/ENTITYRECIPIENTPURPOSE TomPerraultCityofMonticelloGeneralfund(August) AdoptedbytheCityCouncilofMonticellothis23rddayofAugust,2010. CITYOFMONTICELLO ______________________________ ClintHerbst,Mayor ATTEST: ______________________________________ JeffO’Neill,CityAdministrator CouncilAgenda:8/23/10 1 5C.ConsiderationofratifyingappointmentforvacantPoliceAdvisoryCommissionseat (BW) A.REFERENCEANDBACKGROUND: CityOrdinanceTitle2,Chapter7,whichisattachedassupportingdata,statesthatthe PoliceAdvisoryCommissionshallconsistoffivevotingmembersincludingoneCity Councilmemberandfourgeneralmembers,andthatthegeneralmembersmaybeany adultresidentoftheCityasappointedbytheCityCouncil.Italsostatesthatshouldone ofthefourgeneralmembersresign,theCityCouncilshallappointanewgeneralmember toservetheremainderoftheterm. AttheregularmeetingofthePoliceAdvisoryCommissiononApril21,2010, CommissionerJimRobertsinformedeveryonethatheneededtoresignhisseatonthe Commission.PerthedirectionoftheremainingCommissioners,noticeofthevacancy waspostedonthebulletinboardintheCommunityCenterandontheCity’swebsitefor aperiodoftwoweekstosolicitapplicantstofillthevacantposition.Noapplications werereceivedthough. Duringthefallof2009thePoliceAdvisoryCommissioninterviewedfourcandidatesfor anothervacantseatontheCommission.Followingtheappointmentofoneofthe applicants,theremainingthreeapplicationswerekeptonrecordincaseoffuture vacancies.Uponcontactingthethreepreviousapplicants,twonotedtheyhadnofurther interestinbeingappointedtotheCommission.However,Mr.CharlesFradellanotedhe wasstillinterestedinfillingthevacantseat.Thisinformationwaspresentedtothe PoliceAdvisoryCommissionattheirnextregularmeetingonJuly21st,atwhichtimethe CommissionunanimouslypassedamotionrecommendingthattheCityCouncilratifythe appointmentofMr.FradellatothePoliceAdvisoryCommission. Mr.Fradellaagreedtoallowustorunacriminalbackgroundcheckonhim,which subsequentlycamebackclean.IftheCouncilchoosestoratifytheappointmentofMr. FradellatothePoliceAdvisoryCommission,hewouldthenserveouttheremainderof Mr.Robert’stermwhichexpireson12/31/2011. A.1BudgetImpact:Theonlyimpacttothebudgetassociatedwiththisitemwasthecost associatedwithperformingacriminalbackgroundcheck,whichcosttheCity$25. A.2StaffWorkload:WiththeexceptionofthetimeittookfortheHRDirectortocomplete thebackgroundcheckontheapplicantrecommendedforappointment,nofurther workloadimpactsforCitystaffareanticipated. B.ALTERNATIVEACTIONS: 1.MotiontoratifythePoliceAdvisoryCommission’srecommendedappointmentof CharlesFradellatothevacantPoliceAdvisoryCommissionseat. CouncilAgenda:8/23/10 2 2.MotiontodenyratificationofCharlesFradellatothevacantPoliceAdvisory Commissionseat. C.STAFFRECOMMENDATION: ThePoliceAdvisoryCommissionrecommendsapprovingAlternative1. D.SUPPORTINGDATA: CityOrdinance2-7,PoliceAdvisoryCommission CharlesFradellaApplication CouncilAgenda:8/23/10 1 5D.ConsiderationofextendingthecontractforauditserviceswithMMKRfor2010, 2011and2012audityears (TK) A.REFERENCEANDBACKGROUND: TheCityofMonticellosentoutaRequestforProposalforauditservicestoninefirmsin thefallof2007forauditservicesfortheyears2007,2008and2009withthepossibility toextendthecontractforthreeadditionalyears(2010,2011,2012).Fromthisprocess, theCityauditservicecontractwasawardedtoMalloy,Montague,Karnowski, Radosevich,&Co.,P.A.(MMKR).Thecontractamountswere$36,250for2007, $37,000for2008and$37,600for2009.Thequoteincluded$6,500forreport preparationandprocessing;however,asingleaudit,ifnecessary,wouldcost$4,000 extra.Theactualcostshavebeen$43,375in2007;$41,000in2008;and$34,100in 2009plus$3,500forasingleauditforthefiredepartmentradiogrant.The2007audit costmorethanproposedduetostaffturnoverandadjustinganumberofitemsfrom previousaudits.The2008auditwasmorethanproposedtoreviewandadjustfixedasset recordsandtheCity’sfinancialsoftwareconversion.The2009auditcameinbelowcost becausestaffwasabletoperformmoreoftheauditwork. MMKRhasprovidedtheCitywithproposedcoststoperformtheCity’s2010,2011,and 2012audit,whichisattached.Theproposedcostsare$33,625,$34,350,and$35,000for thethreeyears.Thesecostsarelessthantheauditcostofthepriorthreeyears.Staffwill continuetotakeonasmuchoftheauditworkthatitcantokeepcostaslowaspossible. StaffhasbeenverypleasedwiththeworkofMMKRandrecommendsextendingtheir contractforthenextthreeyearsbecauseMMKRisnowfamiliarwiththeCity’sfinancial operationincludingFiberNetMonticello,whichwillbeamajorfocusofthe2010audit nowthatFiberNetMonticelloisoperating.Also,bykeepingthesamefirm,the2010 auditprocesswilltransitionalotsmootheriftheAssistantFinanceDirector,wholeads theCity’sauditprocess,leavestheCityandanewAssistantFinanceDirectorishired. Finally,withalltherecentandnewGASBrequirements,governmentalauditinghas becomemuchmorespecialized;therefore,therearenolocalfirmsthatcanprovidethe levelofserviceandexpertiseMMKRprovidestheCity. A1.BudgetImpact:Ifapprovedthe$33,625willbeusedforthe2011budgetfor auditcosts. A2.StaffWorkloadImpact:Theworkloadonstaffismuchlessifthecontractto MMKRisextendedforthenextthreeyears,asstaffwillnothavetodoaRFPfor AuditServices,reviewthoseRFP’s,interviewpossiblefirms,andthenduringthe actualauditprocessstaffwillspendlesstimeexplainingitemstothefirmbecause MMKRisfamiliarwiththeCity’sprocesses. CouncilAgenda:8/23/10 2 B.ALTERNATIVEACTIONS: 1.MotiontoapproveextendingthecontractwithMMKRforauditservicesforthe years2010,2011,and2012. 2.MotiontodirectstafftodraftanRFPforauditservicesfor2010,2011,and2012. C.STAFFRECOMMENDATION: Thestaffsupportsalternative#1,approvingtheextensionofthecontractwithMMKRfor auditservicesfor2010,2011,and2012. D.SUPPORTINGDATA: AuditProposalfromMMKR CityCouncilAgenda:08/23/10 1 5E.ConsiderationofadoptingOrdinance#519addingTitle2,Chapter10establishing theIndustrial&EconomicDevelopmentCommittee(IEDC)withinCityOrdinance (MB/CS) A.REFERENCEANDBACKGROUND: TheCityCouncilpreviouslyadoptedResolutionNo.2008-44establishingtheIndustrial andEconomicDevelopmentCommittee(IEDC)asaformalcommitteeoftheCityof Monticello.ItisstandardpracticetoadoptanordinanceinChapter2ofCityCodewhen establishingformalBoards,Commission,CommitteesorAuthorities.Forexample, Chapter2establishesthePlanningCommission,EconomicDevelopmentAuthority, PoliceAdvisoryCommission,MonticelloCommunityCenterAdvisoryBoard,etc. StaffisunabletolocateanofficialordinanceestablishingtheIEDCasaformal committeeintheMonticelloCityCode.Inanattempttobeconsistent,staffisbringing forwardanOrdinanceestablishingtheIEDCasaformalcommittee.Theproposed Ordinancefollowstheterms,membership,anddutiespreviouslyadoptedbytheCity Councilin2008. A1.BudgetImpact:Thereisnobudgetimpacttothisitem. A2.StaffWorkloadImpact:TheEconomicDevelopmentDirectorandDeputyCity Clerkco-wrotethisagendaitem.Onceapproved,theordinancewillbepublished andpostedonthecity’swebsite. B.ALTERNATIVEACTIONS: 1.MotiontoadoptOrdinance#519addingTitle2,Chapter10establishingthe IndustrialandEconomicDevelopmentCommitteebyordinance. 2.MotiontonotadoptOrdinance#519. C.STAFFRECOMMENDATION: CityStaffrecommendsAlternative#1.TheproposedOrdinancefollowstheintentand detailsagreedtoin2008,whentheIEDCwasofficiallyestablishedbyResolution#2008- 44.ThisissimplyahousekeepingiteminordertobeconsistentwiththewaytheCity establishesCityBoards,Commissions,Committees,etc. TheIEDCreviewedtheproposedagendaitemattheirAugust17,2010meetingandhad nocommentsorissueswiththeproposedordinance. D.SUPPORTINGDATA: Ordinance#519–Title2,Chapter10,IndustrialandEconomicDevelopmentCommittee CopyofResolution2008-44 ORDINANCENO.519 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA ANORDINANCEAMENDINGTITLE2OFTHEMONTICELLOCITYCODE ESTABLISHINGTHEINDUSTRIALANDECONOMICDEVELOPMENT COMMITTEE(IEDC) ITISHEREBYORDAINED bytheCityCounciloftheCityofMonticello,Minnesota: Section1.Title2oftheCityCodeoftheCityofMonticelloisamendedbyaddingthe followingchapter. CHAPTER10 INDUSTRIALANDECONOMICDEVELOPMENTCOMMITTEE SECTION: 2-10-1:NameofCommittee 2-10-2:Authorization 2-10-3:Membership 2-10-4:TermofOffice 2-10-5:Attendance 2-10-6:Vacancy 2-10-7:Officers 2-10-8:Meetings 2-10-9:Quorum 2-10-10:DutiesoftheCommittee 2-10-11:Amendments 2-10-1:NAMEOFTHECOMMITTEE:Thenameoftheorganizationshallbethe MonticelloIndustrialandEconomicDevelopmentCommittee(IEDC). 2-10-2:AUTHORIZATION:DutiesaredelegatedtotheIEDCbytheCityCouncilof MonticellobythisordinancedatedJune28,2010,andbyResolutionNo.2008-44 approvedthe27th dayofMay,2008. 2-10-3:MEMBERSHIP:TheMonticelloIEDCshallconsistofsixteen(16)toeighteen (18)regularmemberstobeappointedbytheCityCouncilofMonticello.Said CommitteemembersshallconsistofMonticellobusinessrepresentativesor residentsoftheCityofMonticello.TwoCouncilmembersshallbeappointed annuallytoserveontheIEDC.TheDirectoroftheMonticelloChamberof CommerceandIndustryshallbeanex-officiomemberoftheIEDC. 2-10-4:TERMOFOFFICE:Thetermoftheregularmembersshallbeforthree(3)years andshallbestaggeredsothatnomorethanone-halfofthetermsexpireinagiven year.AllregulartermsshallexpireatthefirstCityCouncilmeetingofthenew calendaryear. 2-10-5:ATTENDANCE:ItistheCityCouncil’sintentiontoencourageIEDCmembers toattendallIEDCmeetings.ItisdesiredthatIEDCmembersattendatleast75% ofmeetingsinacalendaryear.Membersmaybesubjecttoreplacementbythe CityCouncilintheeventattendancedoesnotmeetthisstandard. 2-10-6:VACANCY:Anyvacancyintheregularoratlargemembershipshallbefilled bytheCityCouncil,andsuchappointeeshallservefortheunexpiredtermso filled. 2-10-7:OFFICERS: (A)Elections.TheMonticelloIEDCshallelectatitsAnnualmeetingfromits membershipachair,vicechair,andasecretarywhoshallserveforaterm ofoneyearandshallhavesuchpowersasmaybeprescribedintherules ofsaidCommittee. (B)DutiesofChair.ThechairshallpresideatallmeetingsoftheIEDCand shallhavethedutiesnormallyconferredandparliamentaryusageofsuch officers. (C)DutiesofViceChair.Thevicechairshallactforthechairinhisabsence. (D)DutiesofSecretary.Thesecretaryshallkeeptheminutesandrecordsof theCommitteewiththeassistanceofCityStaff. 2-10-8:MEETINGS: (A)RegularmeetingsshallbeheldonadateestablishedbytheIEDC.Inthe eventofaconflictwithaholidayorspecialevents,amajorityatany meetingmaychangethedateandlocationofthemeeting.Themeeting shallbeopentothegeneralpublic. 2-10-9:QUORUM:AmajorityofthetotalIEDCmembersshallconstituteaquorumfor thetransactionofbusiness. 2-10-10:DUTIESOFTHECOMMITTEE:ItshallbethedutyoftheCommittee,withstaff assistance,toadvocateandmakerecommendationstotheEconomicDevelopment AuthorityandCityCouncil,relativetoandincludinginfluencingindustrialand economicdevelopmentinandfortheCityofMonticello,withanemphasison industrialland,increasetaxbaseandnumberoflivablewage-leveljobsby promotingindustrialandeconomicgrowth,andworkingtomaintainadesirable businessenvironment. 2-10-11:AMENDMENTS:Thisordinancemaybeamendedasrecommendbythe majorityvoteoftheexistingmembershipoftheIEDCandonlyaftermajority voteoftheCityCouncil. Section2.EFFECTIVEDATE:Thisordinanceshallbeeffectiveuponitspassageand publication. ADOPTEDBY theMonticelloCityCouncilthis23rd dayofAugust,2010. CITYOFMONTICELLO _____________________________ ClintHerbst,Mayor ATTEST: ___________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: CityCouncilAgenda:8/23/10 1 5F.Considerationofacceptinginvitationandapprovingout-of-statetravelforCity AdministratortoattendandspeakatNATOAconference (JO) A.REFERENCEANDBACKGROUND: TheNationalAssociationofTelecommunicationOfficersandAdvisors(NATOA)have invitedmetoparticipateasaspeakeratheAnnualConference.Ihaveacceptedtherequestto participatependingapprovalbytheMayorandCityCouncil.ouncilisaskedtoreviewthe invitationbelowandtheattachedconferencescheduleandconsiderfundingitaccordingly. Asyouknow,lastyeartheCitywasnamedBroadbandCommunityoftheYearforhaving faceddowntheTDSlawsuit.Itwouldbegreattocomebackayearlatertoreportthatthe CityhasputtheRevenueBondstogoodusehavingdeliveredonpromisestoconstituents. Invitation: DearJeff: OnbehalfoftheBoardofDirectorsoftheNationalAssociationofTelecommunications OfficersandAdvisors(NATOA),Iwouldliketoinviteyoutobeaspeakeratour30th AnnualLocalGovernmentConference,September29–October1,2010,atthe WashingtonCourtHotelinWashington,DC.Thethemeofthisyear’sconferenceis GigabitCommunities. NATOAisaprofessionalassociationcomprisedofindividualsandorganizations responsibleforcommunicationspoliciesandservicesinlocalgovernmentsthroughoutthe country.Eachyear,hundredsofparticipantsattendtheAnnualConferencetohearabout thelatesttrends,innovativeideasandtechnologydevelopmentsfromgovernmentand industryleaders.Thisyearisnoexception.Weexpectapproximately250attendees, primarilylocalandstategovernmentrepresentatives,includingelectedofficials,who workoncommunicationsrelatedissues,broadband,policydevelopment,deployment, regulationandoperations. NATOAhasalongandrichhistoryofpromotingthepublicinterestincommunications. Itsmembershaveconsistentlyworkedtoimprovetheabilityofourcitizens,our communities,andourcountrytoreapthebenefitsofcommunicationstechnologies,while keepingthepublicinterestastheforemostpriority. Thesessionforwhichyouareinvitedtospeakwillfeatureapaneldiscussionon Wednesday,September29th titled“AddressingLocalPoliticalChallengesinCable, Broadband,andBeyond.”Wewouldbehonoredtohaveyoushareyourknowledgeand expertisewithourattendeesduringthispanelpresentation.Thesessiondescription follows: “AddressingLocalPoliticalChallengesinCable,Broadband,andBeyond Withanever-changingandvolatilepoliticalclimateatthefederal,state,andlocallevel, howcanyoubeproactiveandstrategicwhenmanagingissuesandpoliticalproblemsin CityCouncilAgenda:8/23/10 2 yourjurisdiction?Howwouldyouhandleastate-legislativechallenge?Learnhowlocal governmentsinMarylandbeatbackabadbill.Doyouknowhowtousethepresstoyour advantage?Learnhowtoworkwithlegislatorsandelectedofficialstoensureyouarenot ambushedbyothers’agendas;howtofightforaseatatthetablewiththeproviders;and howtotackleotherissueslikepoleattachmentsinapoliticalforum.Politicalstrategyand savvyareessentialtoprotectyourcommunity’sinterests.” PleaseletmeknowifIcanansweranyquestions,anddonothesitatetocontactme directlyforadditionalinformation.Icanbereachedat703-519-8035x203or trideout@natoa.org.Ilookforwardtohearingfromyou,andhopethatyouwillletme knowinthecomingweekswhetheryouareavailabletojoinusforthissession. A1.BudgetImpact:NATOAhasnotofferedtopayforexpensesanditprobablywould notbeingoodformtomakesucharequest.Itisestimatedthatthecosttoattend wouldbeintheneighborhoodof$1,500whichincludesconference($550),hotelat3 nights($660),airfare($260appr)andothermiscellaneoustransportationforan estimatedtotalof$1,600.Pleaserefertotheattacheddraftregistrationformforafull reviewofthecurriculum. A2.StaffWorkloadImpact:CityAdministratorwouldbeattendingtheNATOA conferencefromSeptember28-October1. B.ALTERNATIVEACTIONS: 1.Motiontoauthorizeout-of-statetravelfortheCityAdministratortoattendandspeak attheAnnual2010NATOAConference. 2.MotiontodenyauthorizationfortheCityAdministratortoattendtheAnnual2010 NATOAConference. C.STAFFRECOMMENDATION: IlookforwardtotheopportunitytorepresenttheCityofMonticelloatthisimportant conference,andIamhonoredtobeaskedtospeak.Itismyviewthatthereissignificant benefittotheCitythroughattendanceandparticipationinsuchevents.However,Ialso understandthefinancialpressuresweareunderandwouldnotbeoffendedifCouncilelected toturndownthisrequest. D.SUPPORTINGDATA: RegistrationmaterialsandConferenceAgenda CityCouncilAgenda:8/23/10 1 5G.ConsiderationofapprovingquotesandauthorizingrepairstotheMonticello CommunityCenterbuilding (KB) A.REFERENCEANDBACKGROUND: Thecommunitycenterbuildingonthesouthandwestsidehadsustaineddamagethatwas presumedtocomefromthestormsin2008.Theinsuranceadjustordeterminedthatthe windhadpulledthesidingawayandtheboardsunderthesidinggotwetandthus requiredrepair.ThedamagewasrepairedbyDonlarandcoveredbyourinsurance.At thetime,theadjustorwasconcernedthathewasseeingthisdamagecontinuingalongthe southandwestsidesofthebuildingthatcouldnotbeattributedtowindorstormdamage. BrianWeldon,ourMaintenanceSupervisor,hascontinuedtomonitorthisproblemand talkwithcontractorsaboutwhatcouldbecausingthisproblemandhowitcouldbefixed. Thedeterminationisthatthepoolareahasaslightpositivepressure,however,itshould behavenegativepressure.Wearecurrentlyaddressingthisimbalance,however,this problemhascausedthemoisturefromthepoolareatomovethroughtheconcretewall outtotheplywoodsidingunderthecopper.Underthecoppersidingtwoproblemshave beenidentified;theplywoodisnotgreen-treatedplywoodsoitisabsorbingthemoisture andtheplywoodisswellingandrotting.WewasalsofoundthattheZstrip,basicallythe dripcapthattheplywoodisattachedto,andthescrewsusedcouldnothandlethe moistureandsoitisallpullingawayfromthebuildingbowingoutthecoppersiding. Wewillneedtoremovethecopperalongthesouthandwestcornerandwestsideofthe building,tothewestentrance,approximatelytwelvefeetdownfromthetopofthe building,replacethechannelwithacopperZchannel,replacetheplywoodwithgreen- treatedplywoodandthenresidewiththeexistingcopper.Thepreviousplywoodwasfire retardantplywoodwhichisnotrequiredbutwasaconstructionchangerequestedduring building.Thecodeidentifiesthatthereisgoodfireretardantwiththeconcreteblock wall,sogreen-treatedplywoodisacceptableforuse.Brianisworkingwiththebuilding departmenttodetermineifitwillbebesttousestainlesssteelortreatedtapconscrews andwasherstofastentheplywoodtothebuilding. Wehavereceivedthreequotestodothework.BaasConstructionoutofMilaca,Donlar ConstructionoutofWaiteParkandKDKBuildersoutofMonticello. Allthevendorssolicitedhavecommercialexperience.Wewereabletogetsome referralsfromTomPawelkforlocalcompaniestodothework.Wealsousedthe assistanceoftheBuildingDepartmentandlocalphonebooktofindcontractors.Wedid contactlocalcontractorsforthesidingandwereabletodiscusstheproject;however,we didonlyreceiveonequotefortheprojectfromalocalcontractor. A1.BudgetImpact:Thecommunitycenterhadmaintenanceitemsbudgetedfor 2010thatwewillbeputtingonholdtobeabletomaketheserepairsthatwefeel arecritical.ThesidingrepairquotesareBaasConstructionat$25,200,Donlar Constructionat$29,184andKDKBuildersat$41,391. CityCouncilAgenda:8/23/10 2 A2.StaffWorkloadImpact:BrianWeldonwouldoverseetheworktobedoneand ensurethatitisdonecorrectlyanontime.Therewouldbenootherstafftime associatedwitheitherofmaintenanceitems. B.ALTERNATIVEACTIONS: 1.MotiontoapprovethelowestquoteofBaasConstructionsfor$25,200toperform thesidingrepairs. 2.Motiontodenyauthorizinganyofthequotesforsidingrepair. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1toproceedwiththeworkasneededtoensurethe integrityofthebuildingusingBaasConstructionforthesidingwork.Becausethisisa generalmaintenanceissue,andtheCommunityCenterAdvisoryBoardhadtheirhands fullwithpreliminarybudgetsfor2011,theydidnothaveachancetoreviewthisrequest. D.SUPPORTINGDATA: Quotesforthesidingworkfrom: BaasConstruction DonlarConstruction KDKBuilders Picturesofthebuildingidentifyingsomeofthedamage CityCouncilAgenda:08/23/10 1 5H.Considerationofauthorizingstafftodevelopaleaserevenueprogramallowing antennasandtechnologydevicestobemountedoncity’s1MGWaterTowerandin theFiberNetHeadEndBuilding (BP,DP,TK) A.REFERENCEANDBACKGROUND: On8-11-10,DonPatten,TomKellyandBobPaschkemetasanappointedsubcommittee onthetopicofthepossibilitytogeneraterevenuefromrentalofspaceonthewatertower anditsassociationwithFiberNetMonticello.Thecommitteewastogatherinformation topresenttoCouncilinordertoseeifthereisdesirebyCounciltodevelopanewsource ofrevenuesimilartowhatothercommunitieshaveprocured. Discussedwaswhatkindofrevenuethespaceonthe1MGwatertowermayattract. PotentialusersincludeSprint,Verizon,Nextel,T-mobile,Clear-Wire,Vonage,AT+T, WrightCounty,NewRiverMedicalCenter,andSpectrum.Motivesthatdrawinterestto ourwatertowerare:location,corridor,height,freewayandco-locationwithFiberNet Monticello.Co-locationinterestisauniquesituationwhichcouldsupplytheusersa placetohouseequipmentinsidetheheadendbuildingasrentalratherthanconstructing substationsunderthetowerforeachcarrierasothercitieshavedone.Theheadend facilitycanofferallamenitiesnecessaryformultiplecarrieroperationsandisanother sourceofleaseincome. Our1MGwatertowerisapproximately135±feettall,aconicaltop,whichhasan unblockedviewallowingoptimalsignalreception/broadcast.Thesteelrailingonthetop willsupportantennaefrommostofthemajorplayersinthewirelessindustry.Thereare multipleconduitsplumbedintothebaseofthewatertoweronthesideoftheFiberNet facilityforthispotentialopportunity.Currentlythereisnotconduitplumbedtothetopof thetower,butwouldbepossibletoinstallduringtheinteriortowercleaningnextyear. Severalnarrowantennaetypesareused,generally7feetto11feettallortheVaugner antennae,whichisastylethatisdeltashaped,approximately3feettall.Theseantennae areall360degreereceivingandbroadcasting. Annualrevenuefromcarriersistypically$20,000ormore.Potentialrevenueof $200,000annuallyisapossibility.Revenuesshouldprimarilybedirectedto maintenanceofthetowerwithadditionalrevenuesupportingthewaterutility infrastructure,somemaintenanceandoperationalcostsoftheheadendfacility,andthe GeneralFund. ThecityofRosevilleisconsideringasimilarsituationbyretiringafirestationadjacentto awatertoweranddevelopingitintoaheadworksforitsmunicipalfiberandtheco- locationusersonitstowerattheRosedalelocation.Roseville,underitscurrent contracts,receivesrevenueover$100,000pertower,comprisedofVerizon($36,000), ClearWire($20,000),Sprint($24,000),Nextel($20,000)andsmallerusersmakingup residualbalanceforanannualtotalof$350,000foritsthreetowers. CityCouncilAgenda:08/23/10 2 Inthepast,Monticellohasshiedawayfromallowingthewatertowertobeusedasabase forantennasbecauseofpotentialconflictswiththeoperationofthetower,aswellas aestheticconcerns.Today,factorsaffectingthisdecisionhavechangedandCouncil, therefore,maywishtoshiftdirectionandconsiderallowingthewatertowertobeusedas asiteforantennae.Insummary,changesinfactorsinclude: Antennadevicesaresmallerandcanbesituatedandpaintedtoblendwiththe structure Potentialconflictsremain,buttheyaremanageable Thehead-endbuilding,inproximitytothewatertower,createsanopportunityfor generatingrevenueasitcanserveasa“hut”forantennasupportelectronics TheneedforfindingnewrevenuesourcesfortheCityhasincreased A1.BudgetImpact:Revenuefromcarriersistypically$20,000annuallyorgreater, withrevenuepotentialof$200,000annuallyapossibility. A2.StaffWorkloadImpact:Somestafftimetoresearchandattorneytimeto providelegalassistancetodevelopagreements,policies,andlicensing. B.ALTERNATIVEACTIONS: 1.Motiontoauthorizestafftodevelopaleaserevenueprogramallowingantennas andtechnologydevicestobemountedonthe1MGWaterTowerandinthe FiberNetHeadEndBuilding. 2.Motiontodenyfurtheractionatthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1allowingstafftodevelopaleaserevenueprogram allowingantennasandtechnologydevicestobemountedon1MGWaterTowerandin theFiberNetHeadEndBuildingtodevelopanewsourceofrevenue.Inthepastthe Councildidnotsupportantennasduetotheunsightlyviewsofpastinstallations. However,webelievethattechnologyhaschangedinordertogreatlyreducesizeofthese antennas,andtheynolongerdistractfromthestructuretheyareplacedupon. D.SUPPORTINGDATA: Photosoftowersandantennas TankIndustryConsultant’sreport ArticlefromBoroughNJ Cellular antenna brings more revenue to Borough NJ Cellular antenna brings more revenue to Borough BY LINDA DeNICOLA Staff Writer ROOSEVELT — There are not many ways for the small borough to gain additional revenue, but after a number of disappointments, one has been found. The Borough Council recently authorized a contract with AT&T for a cellular antenna that could put over $21,000 into the municipal coffers. "AT&T will pay $21,000 a year to lease space on the water tower," said Borough Administrator Harold Kline. He said the revenue will go into the water/sewer utility account to pay for future costs. In addition, the five-year contract has a built-in escalator clause, which means the rent will increase by 4 percent each year. Kline explained that because the property is borough owned, the council had to approve the contract. "Now the company has to go before the Planning Board for a variance. Eventually the borough would like to get some additional providers on the water tower. Right now AT&T is the onl y one who expressed an interest," Kline said. Borough officials have tried to attract a cell phone company for about two years. Originally they hoped to find a company to build a cellular tower, but because of the historic nature of the town, the state would not permit such construction. "The State Historic Preservation Office (SHPO) has denied our plan to have a monopole in town. We are currently considering allowing the use of our water tower for cell antenna installations. SHPO has already approved this application," Mayor Michael Hamilton said last spring. At the July 14 Borough Council meeting, Hamilton said borough officials were thinking about putting several installations on the water tower with a minimum of $30,000 per carrier, per year. He said there was a meeting with AT&T officials to discuss the change in venue after the borough learned that SHPO denied its plan for a monopole. Hamilton said AT&T drew up plans for a cellular tower, but because SHPO did not approve, AT&T had to draw up new specifications and perform another survey for the water tower site. In addition, the project was re-bid since the specifications changed. The borough’s cellular ordinance only allows antennas in the I-80 industrial zone. The cellular tower was to be constructed in the I-80 zone, but the water tower is not in an I-80 zone, therefore AT&T needed to appear before the Planning Board to ask for a variance. At that time it was expected that AT&T might come to board’s July meeting. Hamilton expressed surprise that representatives did not appear. He said the company was interested and had stated its intention of pursuing the contract. "The day after the Planning Board meeting, I called an AT&T official to ask them what happened. They said they wanted to see if they won the bid before proceeding," Hamilton said. CityCouncilAgenda:8/23/10 1 5I.Considerationofapprovingout-of-statetravelforMetaSwitchTroubleshooting trainingfortwoFiberNettechnicians (DP) A.REFERENCEANDBACKGROUND: InkeepingwithCitypoliciesgoverningapprovaloftrainingprovidedoutoftheState, CouncilisaskedtoauthorizesendingtwoFibernetTechnicianstoimportanttrainingin Massachussetts.Thetrainingiscriticaltotheirabilitytooperateandtroubleshoot problemswiththetelephoneswitch.Theprojectedcostsassociatedwiththistravelare delineatedbelow. MetaSwitchTroubleshootingTrainingOctober11-15 1900WestParkDrive Suite280 Westborough,MA01581 PriceBreakDown: Trainingcost:Free(willusecreditsfrompurchaseofMetaswitch) FlightandCarPackage:$990 Hotelw/connection:$261.38atDoubleTree*inWestborough,MAfromOct10–16 (usingfamilyconnectionsforbetterrates) Hotelstandard:$894DoubleTree*inWestborough,MAfromOct10–16 (withoutusingconnection) *DoubleTreeislocated.43milesfromthetrainingfacility Individualtotal:$1251.38(notincludingfoodorgas)Oratotalof$2500forboth A1.BudgetImpact:FundsforthisexpensewillbederivedfromtheRevenueBond andareexpectedexpensesidentifiedinthebusinessplan.Thetrainingby MetaSwitchcomeswiththepurchaseoftheSwitch. A2.StaffWorkloadImpact:MattHenningandThaddeusRousuwouldattendthe training. B.ALTERNATIVEACTIONS: 1.Motiontoauthorizeout-of-statetravelandestimatedexpendituresof$2500plus foodandgasfortwoFiberNettechnicianstoattendMetaswitchTroubleshooting traininginMassachusetts. 2.Motiontodenyauthorizationofout-of-statetravelforFiberNetemployees. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1.TheMetaswitchTroubleshootingtrainingis essentialforFiberNetemployeestobeabletooperateandmaintainthephoneswitch. CityCouncilAgenda:8/23/10 2 Thetrainingisonlyofferedinafewplacesatdesignatedtimesduringtheyear.Itisnot availableinMinnesota. D.SUPPORTINGDATA: Copyoftrainingcourseoutline METASWITCHTROUBLESHOOTINGTRAINING Thecourseissplitintothefollowingmodules. ModuleA1-MetaViewExplorer ThismodulelooksatthewiderangeofdiagnosticsavailableviatheMetaView Explorer(formerlyknownastheEMSSystemExplorer),includingAlarms,Logs, Statistics,Per-subscriberinformation,Trafficstudies,RouteVerificationTests (RVTs)andAuditTrails.Asolidunderstandingofthesediagnostictoolsisthe foundationoftroubleshooting.Participantspracticeusingallofthediagnostics toolsduringthismodule. ModuleA2-Craftmenu ThismodulelooksatthediagnosticsavailableviatheMetaswitchcraftinterface includinggettingtothecraftmenu,pingandtraceroute,realtimecalllogs,real timeterminationevents,VoIPlogging(snooping)andAPItrace.Participants practiceusingallofthediagnosticstoolsduringthismodule. ModuleA3-OfflineTools Thismodulelooksatthevariousofflinetoolsandscriptinglanguagesprovidedor usedbyMetaswitchtoperformtaskssuchasretrievingandviewingbillingfiles andviewingandanalyzingstatistics.Participantsperformhands-onexercises usingtheofflinetoolsandscripts. ModuleB1-TroubleshootingTechniques TheTroubleshootingTechniquesmodulediscusseshowtostarttroubleshooting aproblem.Thiscovershowtousesimpledeductionandthediagnosticstoolsto identifytheareacausingtheproblem. ModuleC1-Trunk-side ThismodulefocusesonSS7(ISUP,TCAP,MTP)andMFsignalingandcovers theexpectedprocessingincommonsituations,suchasactivationandcallsetup. Thisiscomparedwithreal-lifeexamplesontheMetaswitchsothatparticipants knowwhattolookforwhenanalyzingthediagnostics.Typicalproblemsandtheir solutionsarediscussedalongwithhintsandtipsforusingthediagnostictools effectively. ModuleC2-Non-VoIPAccessside ThismodulefocusesonGR-303,T1CAS,ISDN(includingISDNTrunks)and ATMsignalingandcoverstheexpectedprocessingincommonsituations,such asactivationandcallsetup.Thisiscomparedwithreal-lifeexamplesonthe Metaswitchsothatparticipantsknowwhattolookforwhenanalyzingthe diagnostics.Typicalproblemsandtheirsolutionsarediscussedalongwithhints andtipsforusingthediagnostictoolseffectively. ModuleC3-VoIPAccessside ThismodulefocusesonMGCPandSIP(includingSIPTrunks)signalingand coverstheexpectedprocessingincommonsituations,suchasactivationandcall setup.Thisiscomparedwithreal-lifeexamplesontheMetaswitchsothat participantsknowwhattolookforwhenanalyzingthediagnostics.Typical problemsandtheirsolutionsarediscussedalongwithhintsandtipsforusingthe diagnostictoolseffectively.Themoduleincludesmodifyingsignalingbehaviorto supportinteroperabilityandvoicequalitymonitoring. ModuleC4-IPNetworks ThismoduleprovidesabriefintroductiontotroubleshootinginanIPnetwork, coveringsomebasicIPproblemsthatcanaffectaMetaswitchdeploymentsuch asQualityofServiceandSessionBorderControllersandalsointroduces commonIP troubleshootingtools,suchasWireshark.Metaswitchoffersamuch moredetailedcourseonthismaterialviatheseparateAdvancedVoIP EngineeringandTroubleshooting course. ModuleC5-Others Thismodulecoverssomemiscellaneousothertroubleshootingtopicsincluding Centrex,SMDI,Echo,Clockingandothernoiseonvoicecalls.Foreachtopicthe courseprovidesbackgroundonthetopic,commonproblemsseenand techniquesfortrackingdownproblems. CityCouncilAgenda:8/23/10 1 7.ContinuationofPublicHearing-ConsiderationofadoptingResolutionNo.2010-56 approvingordenyingvacationofMapleStreetright-of-wayadjacenttoMississippi Riverperpetitionofabuttinglandowners (BW,AS,JO) A.REFERENCEANDBACKGROUND: OnAugust9,2010theCityCouncilopenedthePublicHearingfortheMapleStreet right-of-wayvacationrequest.Asaresultofthediscussion,Counciltabledthematterto providestafftimetocollectadditionalinformationpertainingtothefollowing: Oneofthehomesisplacedwithacornerovertherightofway.Isvacatingthe rightofwayneededtoaccommodatethiscircumstance? WhenaCityprojectonitsrightofwayresultsinanimpactonimprovements madebyanadjacentpropertyowner,whataretheobligationsoftheCityto addressthedamage? DuringtheAugust9th PublicHearing,theabuttingpropertyownersnotedthattheyhad madesomeimprovementstotheMapleStreetright-of-wayoverthelastseveralyears, includinginstallingirrigationandplantingtrees.Theseimprovementsincludetrimming existingtrees,plantingadozenorsosmalldeciduoustrees,andinstallingunderground irrigationsystems.Attachedarepicturesoftheright-of-way,whichshowmostofthese improvements.ThepropertyownersfeltthattheCityshouldconsidersomelevelof responsibilityforrestoringtheirimprovementsifimpactedduringmaintenancework, whetherornottheCityvacatesthepropertyoranyportionthereof.Thisobligationisin exchangeforpropertyownermaintenanceoftherightofway. Instaffdiscussionsregardingpotentialimpactstotheseimprovements,therewasconcern regardingthecompleterestorationofpropertyownerimprovementsshouldimpactsto rightofwayoccur.Inaddition,requiringcompleterestorationinthisinstancewouldset aprecedentthatcouldbeappliedthroughouttheCityastherearemanyeasementsand rightsofwaymaintainedbypropertyownersthathavealsomadeimprovementssuchas installationoffences,driveways,trees,storageshedsetc.Inthiscase,sincethepresence oftheirrigationsystemassiststhepropertyownerinmaintaininggrassandservesto maintaintheappearanceoftheneighborhood,itwouldseemreasonabletoconsider establishingapolicyallowingcityrepairorreplacementofirrigationsystems.The policywouldnotincludelandscapingimprovementssuchastrees,fencesorgardens. Aswaspreviouslynoted,theParksSuperintendenthasconfirmedthatthepublicdoes utilizethisright-of-wayforaccesstotheriver,primarilyforfishing,althoughthatuseis somewhatinfrequent.DoesCouncilconsideruseoftherightofwayforaccesstothe riverforfishingtobeaproblem?Shouldfishingatthislocationbeencouraged, discouragedorleftalone?Rightnowtheextensionofyardsandthealignmentoftrees maketheaccessalignmentfeelmorelikeprivatepropertythanapublicright-of-waythus useoftheaccessbythepublicisindirectlydiscouraged.StaffcheckedwiththeCity AttorneywhoconfirmedthattheCitycanpostthislocationasofflimitsforpublicuse eventhoughitisarightofway. CityCouncilAgenda:8/23/10 2 Itwasalsodiscussedthatthehouseoftheabuttingpropertyownertothewestwasbuilt rightuptothepropertyline,thuscreatinganonconforminguse.Regardingexistingnon- conformities,anynonconformingusethatisdestroyedbyfire(orsomeotherdisaster)to greaterthan50%ofitsmarketvaluemayreapplyforabuildingpermitforthesame configurationwithin180daysofthepropertydamage.Therearenumerousother provisionsandcaveatsshouldtheusechangeoroccupancybediscontinued,but essentially,evenifthehomeisdamagedbeyond50%,thepropertyownerscanrebuildin theexactsameconfiguration(withtheexistingsetbacknon-conformities)iftheyapply forpermitwithin180days.Theycannot,however,increasethelevelofnon-conformity. Theycouldn’tbuildabiggerchimneystructure,encroachfurtherintothesetback,oradd athree-seasonporch,forinstance.Therefore,itwouldbetheopinionoftheCommunity DevelopmentDepartmentthattheadjacentpropertyownerscanmakereasonableuseof theirpropertiesasconfiguredtoday,withoutvacatinganyoftheMapleStreetright-of- way. Aswaspreviouslynoted,oneoftheabuttingpropertyownersdiscussedtheireasement vacationrequestwiththeCityEngineer,whoatthetimeindicateditwashisopinionthat theCityshouldnotvacateanyoftheirpropertyfrontingtheriveratthistime.Thisis becausewewererecentlymadeawarethattheMPCAmaylikelysoonrequire municipalitiestotreattheirpreviouslyuntreatedstormwaterrunofffrompre-developed areasbeforedischargingitintowatersofthestate,suchastheMississippiRiver.Most runoffinthecoreareaoftheCityisuntreatedsowewillthenberequiredtofind propertiesalongtherivercapableofholdingtherequiredstormwaterimprovements. AndtodatetheMPCAhasnotspecifiedwhichtypesofstormwatertreatmentwillbe allowedincludingaboveorbelow-groundstormwaterponds,mechanicalstormwater treatmentdevicessuchasStormceptors,orsomethingelse.Thesepropertieswillalso needtohavesufficientaccesstoallowstafftomaintainthem. TheCityEngineerthereforerecommendsdenyingthevacationofanyoralloftheMaple Streetright-of-wayatthistime.However,onceweknowwhichform(s)ofstormwater treatmenttheMPCAwillallowustouse,wecanthenmakeaninformeddecisionon whichpropertiesweshouldholdontoandwhichcanbevacated. IftheCityCouncilchoosestovacateanyoralloftheMapleStreetright-of-wayas requested,thefollowingitemswillneedtobeaddressed. SaleofVacatedProperty–TheCityCouncilwillneedtodeterminewhetherthe right-of-way,ofwhichtheCityisthefeetitlepropertyowner,shouldbegivento theapplicantsatnocostorsoldtothem.IfCouncildecidestovacateandsellthe right-of-waytotheapplicants,asalepricewillneedtobedetermined.Staff estimatesthemarketpriceforthispropertytobeabout$90,000whichisbasedon thelandmarketvaluesofsimilarsizeadjacentpropertiesperWrightCounty’s website.Thisvalueappearstobereasonableconsideringthepropertyabutsthe riverandmeasuresabout24,300squarefeet,or0.56acres,whichistwicethesize ofastandardresidentiallotinournewerdevelopmentswhicharecurrentlyselling foraround$35,000. CityCouncilAgenda:8/23/10 3 CertificateofSurvey–Theapplicantswillberequiredtoprovideacertificateof survey,delineatingtheareatobevacated.Thissurveywillprovidetheexact legaldescriptionoftheMapleStreetright-of-waytobevacated,anddelineate newpropertylinesforbothapplicants.Thissurveywillalsoidentifyordinary highwaterelevationsinrelationshiptotheMississippiRiver.Thisinformationis neededforverificationthatanybuildingpermitswillcomplywithState Shoreland,FloodplainandMississippiWild&Scenicregulations. DrainageandUtilityEasement–TheCitywillrequirea50-footwidedrainage andutilityeasementoverthestormsewersystemthatoutletstotheMississippi Rivertoproperlymaintainit.Thestormseweralongthispropertyisreinforced concretepipeandrangesinsizefrom54”to66”diameter,andincludesalarge manholenearly20-feettallneartheriver,andanRCPoutletapronwithsheet pilingandriprap.TheapplicantsrequestletterstatesthattheyunderstandtheCity needsthiseasementandthattheyarewillingtoworkwithustoprovideaccessto thisutility. Aspreviouslydiscussed,theapplicantshavecontactedtheWrightCountySoilandWater ConservationDistricttorequestagranttoinstallnativewildflowersandwillowstakes alongtheriverbanktohelppreventerosion,thoughstaffisnotawareofanyerosion issuesinthisareaatthistime. StatestatutesrequirethattheadoptedResolutionincludefindingsforapprovalordenial ofthevacation,andthatthosefindingsmustindicatewhetherornotthereisapublic benefittothevacation.AllfindingsidentifiedbyCouncilwillthereforebeaddedtothe Resolution. A1.BudgetImpact:NobudgetimpactsareanticipatedifCouncildeniesthe vacationrequest.IfCouncilapprovesthevacationrequest,budgetimpactswould includerevenuesfromthesaleoftheproperty,whichwouldbeoffsetbyany increasedmaintenancecostsassociatedwithrestoringthevacatedareatoexisting conditions,whateverthoseconditionsmaybeatthetimetheworkiscompleted. Thismayincludereplacinglandscapingelements,removingandreplacingtrees, repairingtheundergroundirrigationsystems,etc.,whichisalldependentonwhat thepropertyownersinstall,orhavealreadyinstalled,withinthevacatedright-of- way. A2.StaffWorkloadImpact:NostaffworkloadimpactsareanticipatedifCouncil deniesthevacation.IfCouncilapprovesthevacationrequest,staffworkload impactswillincreaseslightlybutwillstillbenegligible. CityCouncilAgenda:8/23/10 4 B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolutionNo.2010-56denyingtherequestedvacationofthe MapleStreetright-of-waybetweenWestRiverStreetandtheMississippiRiverat thistime. Resolutioncouldbeaccompaniedbyaseparateandadditionalmotioncallingfor Cityresponsibilityforrelocationofirrigationsystemsimpactedbyanyfuture project. 2.MotiontoadoptResolutionNo.2010-56approvingtherequestedvacationofthe entireMapleStreetright-of-waybetweenWestRiverStreetandtheMississippi River Underthisalternative,aseparatemotionaddressingthesalepriceoftheparcelis required.Motioncouldbestatedasfollows.Thesalepriceofthelandissetat $__________,withsalecontingentontheapplicantprovidingacertificateof surveyanda50-footwidedrainageandutilityeasementoverthestormsewer outlettotheriver. 3.MotiontoadoptResolutionNo.2010-56approvingapartialvacationofthe MapleStreetright-of-waybetweenWestRiverStreetandtheMississippiRiver describedas_______________________________________________atacost of$__________,withsalecontingentontheapplicantprovidingacertificateof surveyanda50-footwidedrainageandutilityeasementoverthestormsewer outlettotheriver. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternativeAction#1basedonthediscussionabove.Itisthe viewofstaffthatitisreasonabletorequireCityparticipationintherelocationof irrigationsystemsplacedintherightofwayforthepurposeofassistingthehome-owner inmaintainingthecombinedyard/rightofwayarea.Extendingthisprecedenttoother similarsituationsthroughouttheCitytoincludeirrigationssystems/sprinklerheadsin boulevardswouldnotcreateanewresponsibilityfortheCitysinceitisalreadythe practicetoassistpropertyownersinrepairingirrigationsystemsimpactedbyCity projects. D.SUPPORTINGDATA: DraftcopiesofResolutionNo.2010-56(oneforapproval,onefordenial,tobemodified) PicturesofMapleStreetright-of-way CITYOFMONTICELLO WRIGHTCOUNTY RESOLUTIONNO.2010-56 DENYINGVACATIONOFAPORTIONOFMAPLESTREET UPONPETITIONOFAMAJORITYOFABUTTINGLANDOWNERS WHEREAS,apetitionrequestingvacationofaportionofMapleStreetandsignedbythe majorityofpropertyownersabuttingsaidpropertyintheCityofMonticellowasreceivedbythe CityClerkonthe9th dayofOctober,2009;and WHEREAS,thepetitionrequeststhattheCityCouncil,pursuanttoMinnesotaStatute412.851, vacateaportionofMapleStreetbetweenRiverStreetEastandtheMississippiRiver,legally describedas: “AportionofMapleStreetlocatedbetweenRiverStreetandtheMississippiRiver, OriginalPlatofMonticello,CountyofWright,Minnesota.Suchstreetright-of-way terminatesattheMississippiRiver.” WHEREAS,theCityClerkreviewedandexaminedthesignaturesonsaidpetitionand determinedthatsaidsignaturesconstitutedamajorityofthelandownersabuttinguponthe portionofsaidstreetproposedtobevacated;and WHEREAS,saidstreetproposedtobevacatedabutstheMississippiRiver,thereforewritten noticewasservedbycertifiedmailtotheCommissionerofNaturalResourcesonthe9thdayof June,2010,andcommentswerereceivedinwritingfromtheDepartmentofNaturalResources datedJuly14,2010;and WHEREAS,apublichearingtoconsidertheproposedvacationofsaidstreetwasheldon August9,2010at7p.m.beforetheCityCouncilintheMonticelloCityCouncilChambersafter duepublishedandpostednoticehadbeengiven,aswellaspersonalmailednoticetoallaffected propertyownersbytheCityClerkonthe30thdayofJuly,2010,andallinterestedandaffected personsweregivenanopportunitytovoicetheirconcernsandbeheard;and WHEREAS,saidpublichearingwascontinuedbeforetheMonticelloCityCouncilonAugust 23,2010at7p.m.forfurthercommentsandconsideration;and WHEREAS,anyperson,corporation,orpublicbodyowningorcontrollingeasementscontained uponthepropertyproposedtobevacated,reservestherighttocontinuemaintainingthesameor toenteruponsuchwayorportionthereofvacatedtomaintain,repair,replaceorotherwiseattend thereto;and NOWTHEREFORE,BEITHEREBYRESOLVEDBYTHECITYCOUNCILOF MONTICELLO,MINNESOTA,thatsuchpetitionforvacationisherebydeniedbasedonthe followingfindings: Abuttingpropertyownerscanmakereasonableuseoftheirpropertyasitisconfigured today,withouttheproposedstreetvacation; ThevacationofsaidportionofMapleStreetwouldnotbeinthebestinterestofthe publicasabenefittothepubliccouldnotbedetermined; Theproposedstreetvacationnegativelyimpactsaccesstopublicwatersasthisdedicated publicroadcouldprovidepublicaccesstotheMississippiRiverforcitizensof MonticelloandthestateofMinnesota; Thereisanaturalresourcevalueinkeepingthesiteinpublicownershiptomaintainthe existingshorelinevegetativecoverrelativetowaterquality,fisheriesandwildlife. BEITFURTHERRESOLVED,inconsiderationthatpetitioninglandownersarewillingto provideandtheCitydesirescontinuedmaintenanceofsaidportionofstreetproposedfor vacation,petitioninglandownerswillassumeliabilityforpersonalitemsandimprovements placeduponandintosaidportionofstreet,exceptfor_______________,whichtheCityof Monticellowillrepairorreplaceif____________;and BEITFURTHERRESOLVED,thattheCityClerkshallrespondtotheCommissionerof NaturalResourcesinregardtotheformalfindingsoffactpresentedintheirlettertotheCity. ADOPTEDBY theCityCouncilofMonticello,Minnesotathis23rddayofAugust,2010. CITYOFMONTICELLO ____________________________ ATTEST:ClintHerbst,Mayor ________________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: CITYOFMONTICELLO WRIGHTCOUNTY RESOLUTIONNO.2010-56 APPROVINGVACATIONOFAPORTIONOFMAPLESTREET UPONPETITIONOFAMAJORITYOFABUTTINGLANDOWNERS WHEREAS,apetitionrequestingvacationofaportionofMapleStreetandsignedbythe majorityofpropertyownersabuttingsaidpropertyintheCityofMonticellowasreceivedbythe CityClerkonthe9thdayofOctober,2009;and WHEREAS,thepetitionrequeststhattheCityCouncil,pursuanttoMinnesotaStatute412.851 vacateaportionofMapleStreetbetweenRiverStreetEastandtheMississippiRiver,legally describedas: “AportionofMapleStreetlocatedbetweenRiverStreetandtheMississippiRiver, OriginalPlatofMonticello,CountyofWright,Minnesota.Suchstreetright-of-way terminatesattheMississippiRiver.” WHEREAS,theCityClerkreviewedandexaminedthesignaturesonsaidpetitionand determinedthatsaidsignaturesconstitutedamajorityofthelandownersabuttinguponthe portionofsaidstreetproposedtobevacated;and WHEREAS,saidstreetproposedtobevacatedabutstheMississippiRiver,thereforewritten noticewasservedbycertifiedmailtotheCommissionerofNaturalResourcesonthe9thdayof June,2010,andcommentswerereceivedinwritingfromtheDepartmentofNaturalResources datedJuly14,2010;and WHEREAS,apublichearingtoconsidertheproposedvacationofsaidstreetwasheldon August9,2010at7p.m.beforetheCityCouncilintheMonticelloCityCouncilChambersafter duepublishedandpostednoticehadbeengiven,aswellaspersonalmailednoticetoallaffected propertyownersbytheCityClerkonthe30thdayofJuly,2010,andallinterestedandaffected personsweregivenanopportunitytovoicetheirconcernsandbeheard;and WHEREAS,saidpublichearingwascontinuedbeforetheMonticelloCityCouncilonAugust 23,2010at7p.m.forfurthercommentsandconsideration;and WHEREAS,anyperson,corporation,orpublicbodyowningorcontrollingeasementscontained uponthepropertyproposedtobevacated,reservestherighttocontinuemaintainingthesameor toenteruponsuchwayorportionthereofvacatedtomaintain,repair,replaceorotherwiseattend thereto;and WHEREAS,theCouncilinitsdiscretionhasdeterminedthatthevacationwillbenefitthepublic interestbecause: {insertreasons} NOWTHEREFORE,BEITHEREBYRESOLVEDBYTHECITYCOUNCILOF MONTICELLO,MINNESOTA:thattheabovedescribedportionofMapleStreetisvacated, effective_____________. BEITFURTHERRESOLVED,thattheCityClerkshallrespondtotheCommissionerof NaturalResourcesinregardtotheformalfindingsoffactpresentedintheirlettertotheCity;and BEITFURTHERRESOLVED,thattheCityClerkshallprepareanoticeofcompletionofthe proceedingsandrecordsaidvacationwiththeCountyRecorderandCountyAuditor. ADOPTEDBY theCityCouncilofMonticello,Minnesotathis23rddayofAugust,2010. CITYOFMONTICELLO _____________________________ ClintHerbst,Mayor ATTEST: ________________________________ JeffO’Neill,CityAdministrator VOTINGINFAVOR: VOTINGINOPPOSITION: CityCouncilAgenda:08/23/10 1 8.ConsiderationofadoptingResolution#2010-54approvingthesaleofGeneral ObligationImprovementandRefundingBonds,Series2010A (TK) A.REFERENCEANDBACKGROUND: AttheJune28,2010meeting,CounciladoptedaresolutioncallingforthesaleofGeneral ObligationImprovementandRefundingBonds,Series2010A.Thepurposeofthebonds istorefundtheCity’sG.O.ImprovementBonds,Series2002andtofinancetheCity’s 2010streetreconstructionprojectandnon-CityshareoftheHighway25andCounty Road75/EastRiverStreetimprovementproject. TheCityusedEhlers&Associates,Inc.asFinancialAdvisorstohelppreparethisbond issue.Ehlers&Associates,Inc.issuedtheOfficialStatementonbehalfoftheCityand workedwiththeCitytoobtainabondratingfromMoody’sInvestorServices.Thefirst fewpagesoftheOfficialStatementareattachedastheypertaintothebondissue.Acopy ofthefullOfficialStatementisavailablebyrequesttothefinancedepartment. OnMonday,August16,2010,Moody’sreconfirmedtheCity’scurrentbondratingof Aa3fortheratingoftheImprovementandRefundingBonds,Series2010A.Factorsfor notupgradingtheCity’sbondratingincludedthelargeamountofoutstandingdebtthe CityhasandtheCityhavingonelargetaxpayer/employer,XcelEnergyasareasof concern.Moody’sratingcommentsarealsoattached. Proposalsforthesaleofthesebondswillbeopenedat10a.m.onAugust23rd andthe resultswillbepresentedtoCouncilthatnightattheCouncilMeetingbyMr.ToddHagen ofEhlers&Associates,Inc.Councilwillthenbeaskedtoapprovetheattached resolutionapprovingthesaleoftheG.O.ImprovementandRefundingBondsortoreject allproposals. A1.BudgetImpact:Byissuingbondstofinancethesetwoprojectsandrefundthe 2002improvementbond,theCitywillhavethebenefitofpayingtheirshareof projectcostsovertimeandnothavingtoupfrontthecostoftheassessedportion oftheseprojects.Therefundingofthe2002bondswillsavetheCityaround $35,000ininterestcostsoverthenext4-1/2years. A2.StaffWorkloadImpact:Therewouldbelittletonoimpactonthestaff. B.ALTERNATIVEACTIONS: 1.AdoptResolutionNo.2010-54approvingthesaleof$3,255,000G.O. ImprovementandRefundingBonds,Series2010A. 2.Donotadopttheresolutionapprovingthesalebonds. CityCouncilAgenda:08/23/10 2 C.STAFFRECOMMENDATION: TheCitystaffsupportsAlternative1approvingthebondsale. D.SUPPORTINGDATA: Resolution#2010-54 ExcerptfromOfficialStatement CopyofMoody’sRatingComments 373615v1MNIMN190-138 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2010-54 AWARDINGTHESALEOF$3,255,000GENERALOBLIGATION IMPROVEMENTANDREFUNDINGBONDS,SERIES2010A FIXINGTHEIRFORMANDSPECIFICATIONS; DIRECTINGTHEIREXECUTIONANDDELIVERY; ANDPROVIDINGFORTHEIRPAYMENT BEITRESOLVED BytheCityCounciloftheCityofMonticello,WrightCounty, Minnesota(the“City”)asfollows: Section1.SaleofBonds. 1.01Itisherebydeterminedthat: (a)thefollowingassessablepublicimprovements(the“Improvements”)have beenmade,dulyorderedorcontractsletfortheconstructionthereof,bytheCitypursuant totheprovisionsofMinnesotaStatutes,Chapter429(the“ImprovementAct”),atthe followingestimatedcost; ProjectDesignation&Description:TotalProjectCost 2010StreetImprovementsand Highway25/Co.Rd75Improvements ProjectConstructionFund$2,645,209.00 CostsofIssuance35,419.35 Underwriter’sDiscount27,450.00 CapitalizedInterest28,888.93 Contingency8,032.72 TotalProjectCosts:$2,745,000 (b)itisnecessaryandexpedienttothesoundfinancialmanagementofthe affairsoftheCitytoissueapproximately$2,745,000GeneralObligationImprovement BondspursuanttotheImprovementActtoprovidefinancingfortheImprovements; (c)theCityisfurtherauthorizedbyMinnesotaStatutes,Chapter475 (the“Act”)andSection475.67,Subdivision3,oftheActtoissueandsellitsgeneral obligationbondstorefundobligationsandtheinterestthereonbeforetheduedateofthe obligations,ifconsistentwithcovenantsmadewiththeholdersthereof,whendetermined bytheCityCounciltobenecessaryordesirableforthereductionofdebtservicecostto theCityorfortheextensionoradjustmentofmaturitiesinrelationtotheresources availablefortheirpayment; 373615v1MNIMN190-138 (d)Section475.67,subdivision4oftheActpermitsthesaleofrefunding obligationsduringthesixmonthperiodpriortothedateonwhichtheobligationstobe refundedmaybecalledforredemption; (e)itisnecessaryanddesirabletoreducedebtservicecoststhattheCityissue approximately$510,000GeneralObligationImprovementRefundingBondstorefund certainoutstandinggeneralobligationsoftheCity; (f)theoutstandingbondstoberefunded(the“RefundedBonds”)consistof the$2,420,000GeneralObligationImprovementBonds,Series2002,datedDecember 30,2002,ofwhich$865,000inprincipalamountiscurrentlyoutstandingandiscallable onOctober1,2010. (g)TheCityisauthorizedbyMinnesotaStatutes,section475.60,subdivision 2(9)tonegotiatethesaleofitsbonds,itbeingdeterminedthattheCityhasretainedan independentfinancialadviserinconnectionwithsuchsale.TheactionsoftheCitystaff andfinancialadvisersinnegotiatingthesaleofitsbondsareratifiedandconfirmedinall aspects. 1.02.Theproposalof____________________________(the“Purchaser”)topurchase $____________GeneralObligationImprovementandRefundingBonds,Series2010A(the “Bonds”)oftheCitydescribedintheTermsofProposalthereofisherebyfoundanddetermined tobeareasonableofferandisherebyaccepted,theproposalbeingtopurchasetheBondsata priceof$____________plusaccruedinteresttodateofdelivery,forBondsbearinginterestas follows: Yearof Maturity Interest Rate Yearof Maturity Interest Rate 20112017 20122018 20132019 20142020 20152021 2016 Trueinterestcost:_________% 1.03.Thesumof$___________beingtheamountproposedbythePurchaserinexcess of$3,222,450willbecreditedtotheDebtServiceFundhereinaftercreated.TheCityFinance DirectorisdirectedtoretainthegoodfaithcheckofthePurchaser,pendingcompletionofthe saleoftheBonds,andtoreturnthegoodfaithchecksoftheunsuccessfulproposersforthwith. TheMayorandCityAdministratoraredirectedtoexecuteacontractwiththePurchaseron behalfoftheCity. 373615v1MNIMN190-138 1.04.TheCitywillforthwithissueandselltheBondspursuanttotheImprovementAct andtheActinthetotalprincipalamountof$__________,originallydatedSeptember14,2010, inthedenominationof$5,000eachoranyintegralmultiplethereof,numberedNo.R-1,upward, bearinginterestasabovesetforth,andmaturingseriallyonFebruary1intheyearsandamounts asfollows: Year Amount Year Amount 20112017 20122018 20132019 20142020 20152021 2016 $_____________oftheBonds(the“2010StreetImprovementBonds”)maturingintheamounts andonthedatessetforthbelowarebeingissuedtofinancethe2010StreetImprovements: Year Amount Year Amount 20122017 20132018 20142019 20152020 20162021 $_____________oftheBonds(the“Highway25&CountyRoad75ImprovementBonds”) maturingintheamountsandonthedatessetforthbelowarebeingissuedtofinancetheHighway 25&CountyRoad75Improvements: Year Amount Year Amount 20122017 20132018 20142019 20152020 20162021 Theremaining$_____________oftheBonds(the“CurrentRefundingBonds”)maturinginthe amountsandonthedatessetforthbelowarebeingissuedtoredeemandprepaytheRefunded Bonds: 373615v1MNIMN190-138 Year Amount Year Amount 20112013 20122014 1.05.OptionalRedemption.TheCitymayelectonFebruary1,2019,andonanyday thereaftertoprepayBondsdueonorafterFebruary1,2020.Redemptionmaybeinwholeorin partandifinpart,attheoptionoftheCityandinsuchmannerastheCitywilldetermine.Ifless thanallBondsofamaturityarecalledforredemption,theCitywillnotifyDTC(asdefinedin Section7hereof)oftheparticularamountofsuchmaturitytobeprepaid.DTCwilldetermine bylottheamountofeachparticipant'sinterestinsuchmaturitytoberedeemedandeach participantwillthenselectbylotthebeneficialownershipinterestsinsuchmaturitytobe redeemed.Prepaymentswillbeatapriceofparplusaccruedinterest. 1.06.TermBonds.TobecompletedifTermBondsarerequestedbythePurchaser. Section2.RegistrationandPayment. 2.01.RegisteredForm.TheBondswillbeissuedonlyinfullyregisteredform.The interestthereonand,uponsurrenderofeachBond,theprincipalamountthereof,ispayableby checkordraftissuedbytheRegistrardescribedherein. 2.02.Dates;InterestPaymentDates.EachBondwillbedatedasofthelastinterest paymentdateprecedingthedateofauthenticationtowhichinterestontheBondhasbeenpaid ormadeavailableforpayment,unless(i)thedateofauthenticationisaninterestpaymentdate towhichinteresthasbeenpaidormadeavailableforpayment,inwhichcasetheBondwillbe datedasofthedateofauthentication,or(ii)thedateofauthenticationispriortothefirstinterest paymentdate,inwhichcasetheBondwillbedatedasofthedateoforiginalissue.Theinterest ontheBondsispayableonFebruary1andAugust1ofeachyear,commencingFebruary1, 2011,totheregisteredownersofrecordthereofasofthecloseofbusinessonthefifteenthday oftheimmediatelyprecedingmonth,whetherornotthatdayisabusinessday. 2.03.Registration.TheCitywillappointabondregistrar,transferagent,authenticating agentandpayingagent(Registrar).Theeffectofregistrationandtherightsanddutiesofthe CityandtheRegistrarwithrespecttheretoareasfollows: (a)Register.TheRegistrarmustkeepatitsprincipalcorporatetrustofficea bondregisterinwhichtheRegistrarprovidesfortheregistrationofownershipofBonds andtheregistrationoftransfersandexchangesofBondsentitledtoberegistered, transferredorexchanged. (b)TransferofBonds.UponsurrenderfortransferofaBonddulyendorsed bytheregisteredownerthereoforaccompaniedbyawritteninstrumentoftransfer,in formsatisfactorytotheRegistrar,dulyexecutedbytheregisteredownerthereoforbyan attorneydulyauthorizedbytheregisteredownerinwriting,theRegistrarwill 373615v1MNIMN190-138 authenticateanddeliver,inthenameofthedesignatedtransfereeortransferees,oneor morenewBondsofalikeaggregateprincipalamountandmaturity,asrequestedbythe transferor.TheRegistrarmay,however,closethebooksforregistrationofanytransfer afterthefifteenthdayofthemonthprecedingeachinterestpaymentdateanduntilthat interestpaymentdate. (c)ExchangeofBonds.WhenBondsaresurrenderedbytheregisteredowner forexchangetheRegistrarwillauthenticateanddeliveroneormorenewBondsofalike aggregateprincipalamountandmaturityasrequestedbytheregisteredownerorthe owner'sattorneyinwriting. (d)Cancellation.Bondssurrenderedupontransferorexchangewillbe promptlycancelledbytheRegistrarandthereafterdisposedofasdirectedbytheCity. (e)ImproperorUnauthorizedTransfer.WhenaBondispresentedtothe Registrarfortransfer,theRegistrarmayrefusetotransfertheBonduntiltheRegistraris satisfiedthattheendorsementontheBondorseparateinstrumentoftransferisvalidand genuineandthattherequestedtransferislegallyauthorized.TheRegistrarwillincurno liabilityfortherefusal,ingoodfaith,tomaketransferswhichit,initsjudgment,deems improperorunauthorized. (f)PersonsDeemedOwners.TheCityandtheRegistrarmaytreattheperson inwhosenameaBondisregisteredinthebondregisterastheabsoluteownerofthe Bond,whethertheBondisoverdueornot,forthepurposeofreceivingpaymentof,oron accountof,theprincipalofandinterestontheBondandforallotherpurposesand paymentssomadetoregisteredownerorupontheowner'sorderwillbevalidand effectualtosatisfyanddischargetheliabilityupontheBondtotheextentofthesumor sumssopaid. (g)Taxes,FeesandCharges.TheRegistrarmayimposeachargeuponthe ownerthereofforatransferorexchangeofBonds,sufficienttoreimbursetheRegistrar foranytax,feeorothergovernmentalchargerequiredtobepaidwithrespecttothe transferorexchange. (h)Mutilated,Lost,StolenorDestroyedBonds.IfaBondbecomesmutilated orisdestroyed,stolenorlost,theRegistrarwilldeliveranewBondoflikeamount, number,maturitydateandtenorinexchangeandsubstitutionforanduponcancellation ofthemutilatedBondorinlieuofandinsubstitutionforaBonddestroyed,stolenorlost, uponthepaymentofthereasonableexpensesandchargesoftheRegistrarinconnection therewith;and,inthecaseofaBonddestroyed,stolenorlost,uponfilingwiththe RegistrarofevidencesatisfactorytoitthattheBondwasdestroyed,stolenorlost,andof theownershipthereof,anduponfurnishingtotheRegistrarofanappropriatebondor indemnityinform,substanceandamountsatisfactorytoitandasprovidedbylaw,in whichboththeCityandtheRegistrarmustbenamedasobligees.Bondssosurrendered totheRegistrarwillbecancelledbytheRegistrarandevidenceofsuchcancellationmust begiventotheCity.Ifthemutilated,destroyed,stolenorlostBondhasalreadymatured 373615v1MNIMN190-138 orbeencalledforredemptioninaccordancewithitstermsitisnotnecessarytoissuea newBondpriortopayment. (i)Redemption.IntheeventanyoftheBondsarecalledforredemption, noticethereofidentifyingtheBondstoberedeemedwillbegivenbytheRegistrarby mailingacopyoftheredemptionnoticebyfirstclassmail(postageprepaid)tothe registeredownerofeachBondtoberedeemedattheaddressshownontheregistration bookskeptbytheRegistrarandbypublishingthenoticeifrequiredbylaw.Failureto givenoticebypublicationorbymailtoanyregisteredowner,oranydefecttherein,will notaffectthevalidityoftheproceedingsfortheredemptionofBonds.Bondssocalled forredemptionwillceasetobearinterestafterthespecifiedredemptiondate,provided thatthefundsfortheredemptionareondepositwiththeplaceofpaymentatthattime. 2.04.AppointmentofInitialRegistrar.TheCityappointsBondTrustServices Corporation,Roseville,Minnesota,astheinitialRegistrar.TheMayorandtheCity Administratorareauthorizedtoexecuteanddeliver,onbehalfoftheCity,acontractwiththe Registrar.UponmergerorconsolidationoftheRegistrarwithanothercorporation,ifthe resultingcorporationisabankortrustcompanyauthorizedbylawtoconductsuchbusiness,the resultingcorporationisauthorizedtoactassuccessorRegistrar.TheCityagreestopaythe reasonableandcustomarychargesoftheRegistrarfortheservicesperformed.TheCityreserves therighttoremovetheRegistrarupon30days'noticeandupontheappointmentofasuccessor Registrar,inwhicheventthepredecessorRegistrarmustdeliverallcashandBondsinits possessiontothesuccessorRegistrarandmustdeliverthebondregistertothesuccessor Registrar.Onorbeforeeachprincipalorinterestduedate,withoutfurtherorderofthisCouncil, theCityFinanceDirectormusttransmittotheRegistrarmoniessufficientforthepaymentofall principalandinterestthendue. 2.05.Execution,AuthenticationandDelivery.TheBondswillbepreparedunderthe directionoftheCityAdministratorandexecutedonbehalfoftheCitybythesignaturesofthe MayorandtheCityAdministrator,providedthatthosesignaturesmaybeprinted,engravedor lithographedfacsimilesoftheoriginals.Ifanofficerwhosesignatureorafacsimileofwhose signatureappearsontheBondsceasestobesuchofficerbeforethedeliveryofaBond,that signatureorfacsimilewillneverthelessbevalidandsufficientforallpurposes,thesameasifthe officerhadremainedinofficeuntildelivery.Notwithstandingsuchexecution,aBondwillnot bevalidorobligatoryforanypurposeorentitledtoanysecurityorbenefitunderthisResolution unlessanduntilacertificateofauthenticationontheBondhasbeendulyexecutedbythemanual signatureofanauthorizedrepresentativeoftheRegistrar.Certificatesofauthenticationon differentBondsneednotbesignedbythesamerepresentative.Theexecutedcertificateof authenticationonaBondisconclusiveevidencethatithasbeenauthenticatedanddelivered underthisResolution.WhentheBondshavebeensoprepared,executedandauthenticated,the CityAdministratorwilldeliverthesametothePurchaseruponpaymentofthepurchasepricein accordancewiththecontractofsaleheretoforemadeandexecuted,andthePurchaserisnot obligatedtoseetotheapplicationofthepurchaseprice. 2.06.TemporaryBonds.TheCitymayelecttodeliverinlieuofprinteddefinitive BondsoneormoretypewrittentemporaryBondsinsubstantiallytheformsetforthinSection3 373615v1MNIMN190-138 withsuchchangesasmaybenecessarytoreflectmorethanonematurityinasingletemporary bond.UpontheexecutionanddeliveryofdefinitiveBondsthetemporaryBondswillbe exchangedthereforandcancelled. Section3.FormofBond. 3.01.TheBondswillbeprintedortypewritteninsubstantiallythefollowingform: No.R-_____$________ UNITEDSTATESOFAMERICA STATEOFMINNESOTA COUNTYOFWRIGHT CITYOFMONTICELLO GENERALOBLIGATIONIMPROVEMENTAND REFUNDINGBOND,SERIES2010A Dateof Rate Maturity OriginalIssue CUSIP February1,20__September14,2010 RegisteredOwner:Cede&Co. TheCityofMonticello,Minnesota,adulyorganizedandexistingmunicipalcorporation inWrightCounty,Minnesota(the“City”),acknowledgesitselftobeindebtedandforvalue receivedherebypromisestopaytotheRegisteredOwnerspecifiedaboveorregisteredassigns, theprincipalsumof$__________onthematuritydatespecifiedabove,withinterestthereon fromthedatehereofattheannualratespecifiedabove,payableFebruary1andAugust1ineach year,commencingFebruary1,2011,tothepersoninwhosenamethisBondisregisteredatthe closeofbusinessonthefifteenthday(whetherornotabusinessday)oftheimmediately precedingmonth.Theinteresthereonand,uponpresentationandsurrenderhereof,theprincipal hereofarepayableinlawfulmoneyoftheUnitedStatesofAmericabycheckordraftbyBond TrustServicesCorporation,Roseville,Minnesota,asBondRegistrar,PayingAgent,Transfer AgentandAuthenticatingAgent,oritsdesignatedsuccessorundertheResolutiondescribed herein.Forthepromptandfullpaymentofsuchprincipalandinterestasthesamerespectively becomedue,thefullfaithandcreditandtaxingpowersoftheCityhavebeenandarehereby irrevocablypledged. 373615v1MNIMN190-138 TheCitymayelectonFebruary1,2019,andonanydaythereaftertoprepayBondsdue onorafterFebruary1,2010.Redemptionmaybeinwholeorinpartandifinpart,attheoption oftheCityandinsuchmannerastheCitywilldetermine.IflessthanallBondsofamaturityare calledforredemption,theCitywillnotifyDTC(asdefinedinSection7hereof)oftheparticular amountofsuchmaturitytobeprepaid.DTCwilldeterminebylottheamountofeach participant'sinterestinsuchmaturitytoberedeemedandeachparticipantwillthenselectbylot thebeneficialownershipinterestsinsuchmaturitytoberedeemed.Prepaymentswillbeata priceofparplusaccruedinterest. TheCityCouncilhasdesignatedtheissueofBondsofwhichthisBondformsapartas "qualifiedtaxexemptobligations"withinthemeaningofSection265(b)(3)oftheInternal RevenueCodeof1986,asamended(the“Code”)relatingtodisallowanceofinterestexpensefor financialinstitutionsandwithinthe$30millionlimitallowedbytheCodeforthecalendaryear ofissue. ThisBondisoneofanissueintheaggregateprincipalamountof$_________alloflike originalissuedateandtenor,exceptastonumber,maturitydate,redemptionprivilege,and interestrate,allissuedpursuanttoaresolutionadoptedbytheCityCouncilonAugust23,2010 (the“Resolution”),forthepurposeofprovidingmoneytodefraytheexpensesincurredandtobe incurredinmakinglocalimprovementsandtorefundtheoutstandingprincipalamountofcertain generalobligationbondsoftheCity,pursuanttoandinfullconformitywiththeConstitutionand lawsoftheStateofMinnesota,includingMinnesotaStatutes,Chapter429andSection475.67, andtheprincipalhereofandinteresthereonarepayablefromspecialassessmentsagainst propertyspeciallybenefitedbylocalimprovementsandfromadvaloremtaxesfortheCity's shareofthecostoftheimprovements,assetforthintheResolutiontowhichreferenceismade forafullstatementofrightsandpowerstherebyconferred.ThefullfaithandcreditoftheCity areirrevocablypledgedforpaymentofthisBondandtheCityCouncilhasobligateditselfto levyadditionaladvaloremtaxesonalltaxablepropertyintheCityintheeventofanydeficiency inspecialassessmentsandtaxespledged,whichadditionaltaxesmaybeleviedwithout limitationastorateoramount.TheBondsofthisseriesareissuedonlyasfullyregisteredBonds indenominationsof$5,000oranyintegralmultiplethereofofsinglematurities. AsprovidedintheResolutionandsubjecttocertainlimitationssetforththerein,this BondistransferableuponthebooksoftheCityattheprincipalofficeoftheBondRegistrar,by theregisteredownerhereofinpersonorbytheowner'sattorneydulyauthorizedinwriting,upon surrenderhereoftogetherwithawritteninstrumentoftransfersatisfactorytotheBondRegistrar, dulyexecutedbytheregisteredownerortheowner'sattorney;andmayalsobesurrenderedin exchangeforBondsofotherauthorizeddenominations.UponsuchtransferorexchangetheCity willcauseanewBondorBondstobeissuedinthenameofthetransfereeorregisteredowner,of thesameaggregateprincipalamount,bearinginterestatthesamerateandmaturingonthesame date,subjecttoreimbursementforanytax,feeorgovernmentalchargerequiredtobepaidwith respecttosuchtransferorexchange. TheCityandtheBondRegistrarmaydeemandtreatthepersoninwhosenamethisBond isregisteredastheabsoluteownerhereof,whetherthisBondisoverdueornot,forthepurpose 373615v1MNIMN190-138 ofreceivingpaymentandforallotherpurposes,andneithertheCitynortheBondRegistrarwill beaffectedbyanynoticetothecontrary. ITISHEREBYCERTIFIED,RECITED,COVENANTEDANDAGREEDthatallacts, conditionsandthingsrequiredbytheConstitutionandlawsoftheStateofMinnesota,tobe done,toexist,tohappenandtobeperformedpreliminarytoandintheissuanceofthisBondin ordertomakeitavalidandbindinggeneralobligationoftheCityinaccordancewithitsterms, havebeendone,doexist,havehappenedandhavebeenperformedassorequired,andthatthe issuanceofthisBonddoesnotcausetheindebtednessoftheCitytoexceedanyconstitutionalor statutorylimitationofindebtedness. ThisBondisnotvalidorobligatoryforanypurposeorentitledtoanysecurityorbenefit undertheResolutionuntiltheCertificateofAuthenticationhereonhasbeenexecutedbythe BondRegistrarbymanualsignatureofoneofitsauthorizedrepresentatives. INWITNESSWHEREOF,theCityofMonticello,WrightCounty,Minnesota,byits CityCouncil,hascausedthisBondtobeexecutedonitsbehalfbythefacsimileormanual signaturesoftheMayorandCityAdministratorandhascausedthisBondtobedatedasofthe datesetforthbelow. Dated: CITYOFMONTICELLO,MINNESOTA (Facsimile)(Facsimile) CityAdministratorMayor CERTIFICATEOFAUTHENTICATION ThisisoneoftheBondsdeliveredpursuanttotheResolutionmentionedwithin. BONDTRUSTSERVICES CORPORATION By AuthorizedRepresentative _________________________________ 373615v1MNIMN190-138 Thefollowingabbreviations,whenusedintheinscriptiononthefaceofthisBond,will beconstructedasthoughtheywerewrittenoutinfullaccordingtoapplicablelawsor regulations: TENCOM--astenantsUNIFGIFTMINACT_________Custodian_________ incommon(Cust)(Minor) TENENT--astenantsunderUniformGiftsor byentiretiesTransferstoMinors JTTEN--asjointtenantswith rightofsurvivorshipandAct............ notastenantsincommon(State) Additionalabbreviationsmayalsobeusedthoughnotintheabovelist. ________________________________________ ASSIGNMENT Forvaluereceived,theundersignedherebysells,assignsandtransfersunto ________________________________________thewithinBondandallrightsthereunder,and doesherebyirrevocablyconstituteandappoint_________________________attorneyto transferthesaidBondonthebookskeptforregistrationofthewithinBond,withfullpowerof substitutioninthepremises. Dated: Notice:Theassignor'ssignaturetothisassignmentmustcorrespondwiththename asitappearsuponthefaceofthewithinBondineveryparticular,without alterationoranychangewhatever. SignatureGuaranteed: NOTICE:Signature(s)mustbeguaranteedbyafinancialinstitutionthatisamemberofthe SecuritiesTransferAgentMedallionProgram("STAMP"),theStockExchangeMedallion Program("SEMP"),theNewYorkStockExchange,Inc.MedallionSignaturesProgram("MSP") orothersuch"signatureguaranteeprogram"asmaybedeterminedbytheRegistrarinaddition to,orinsubstitutionfor,STAMP,SEMPorMSP,allinaccordancewiththeSecuritiesExchange Actof1934,asamended. 373615v1MNIMN190-138 TheBondRegistrarwillnoteffecttransferofthisBondunlesstheinformation concerningtheassigneerequestedbelowisprovided. NameandAddress: (Includeinformationforalljointownersifthis Bondisheldbyjointaccount.) Pleaseinsertsocialsecurityorother identifyingnumberofassignee PROVISIONSASTOREGISTRATION TheownershipoftheprincipalofandinterestonthewithinBondhasbeenregisteredon thebooksoftheRegistrarinthenameofthepersonlastnotedbelow. Signatureof DateofRegistration RegisteredOwner OfficerofRegistrar Cede&Co. ________________________FederalID#13-2555119_____________________ 3.02.TheCityAdministratorisdirectedtoobtainacopyoftheproposedapproving legalopinionofKennedy&Graven,Chartered,Minneapolis,Minnesota,whichistobe completeexceptastodatingthereofandtocausetheopiniontobeprintedonoraccompanyeach Bond. Section4.Payment;Security;PledgesandCovenants. 4.01.(a)TheBondsarepayablefromtheImprovementandRefundingBonds,Series 2010ADebtServiceFund(the“DebtServiceFund”)herebycreated,andtheproceedsofgeneral taxeshereinafterlevied(the“Taxes”),andspecialassessments(the“Assessments”)leviedorto beleviedforthe2010StreetImprovementsandHighway25andCountyRoad75Improvements financedbytheBondsandtheimprovementsfinancedbytheRefundedBonds(collectively,the “Improvements”)areherebypledgedtotheDebtServiceFund.Ifapaymentofprincipalor interestontheBondsbecomesduewhenthereisnotsufficientmoneyintheDebtServiceFund topaythesame,theCityFinanceDirectorisdirectedtopaysuchprincipalorinterestfromthe generalfundoftheCity,andthegeneralfundwillbereimbursedfortheadvancesoutofthe 373615v1MNIMN190-138 proceedsofAssessmentsandTaxeswhencollected.ThereisappropriatedtotheDebtService Fund(i)capitalizedinterestfinancedfromBondproceeds,and(ii)anyamountoverthe minimumpurchasepricepaidbythePurchaser. (b)TheproceedsoftheBonds,lesstheappropriationsmadeinparagraph(a)ofthis Sectionandlessproceedsintheamountof$510,000appliedforredemptionoftheRefunded BondsunderSection5,togetherwithanyotherfundsappropriatedfortheImprovementsand AssessmentsandTaxescollectedduringtheconstructionoftheImprovements,willbedeposited inaseparateconstructionfund(whichmaycontainseparateaccountsforeachImprovement)to beusedsolelytodefrayexpensesoftheImprovementsandthepaymentofprincipalandinterest ontheBondspriortothecompletionandpaymentofallcostsoftheImprovement.Anybalance remainingintheconstructionfundaftercompletionoftheImprovementsmaybeusedtopaythe costinwholeorinpartofanyotherimprovementinstitutedundertheAct.Whenthe Improvementsarecompletedandthecostthereofpaid,theconstructionaccountistobeclosed andsubsequentcollectionsofAssessmentsandTaxesfortheImprovementsaretobedeposited intheDebtServiceFund. 4.02.ItisherebydeterminedthattheImprovementswilldirectlyandindirectlybenefit abuttingproperty,andtheCityherebycovenantswiththeholdersfromtimetotimeoftheBonds asfollows: (a)TheCityhascausedorwillcausetheAssessmentsfortheImprovements tobepromptlyleviedsothatthefirstinstallmentwillbecollectiblenotlaterthan2011 andwilltakeallstepsnecessarytoassurepromptcollection,andthelevyofthe Assessmentsisherebyauthorized.TheCityCouncilwillcausetobetakenwithdue diligenceallfurtheractionsthatarerequiredfortheconstructionofeachImprovement financedwhollyorpartlyfromtheproceedsoftheBonds,andwilltakeallfurtheractions necessaryforthefinalandvalidlevyoftheAssessmentsandtheappropriationofany otherfundsneededtopaytheBondsandinterestthereonwhendue. (b)IntheeventofanycurrentoranticipateddeficiencyinAssessmentsand Taxes,theCityCouncilwilllevyadditionaladvaloremtaxesintheamountofthecurrent oranticipateddeficiency. (c)TheCitywillkeepcompleteandaccuratebooksandrecordsshowing: receiptsanddisbursementsinconnectionwiththeImprovements,AssessmentsandTaxes leviedthereforandotherfundsappropriatedfortheirpayment,collectionsthereofand disbursementstherefrom,moniesonhandand,thebalanceofunpaidAssessments. (d)TheCitywillcauseitsbooksandrecordstobeauditedatleastannually andwillfurnishcopiesofsuchauditreportstoanyinterestedpersonuponrequest. 4.03.PledgeofTaxLevy.Itisdeterminedthatatleast20%ofthecostofthe Improvementswillbespeciallyassessedagainstbenefitedproperties.Forthepurposeofpaying theprincipalofandinterestontheBonds,thereisleviedadirectannualirrepealableadvalorem tax(Taxes)uponallofthetaxablepropertyintheCity,whichwillbespreaduponthetaxrolls 373615v1MNIMN190-138 andcollectedwithandaspartofothergeneraltaxesoftheCity.Thetaxeswillbecreditedtothe DebtServiceFundaboveprovidedandwillbeintheyearsandamountsasfollows(yearstated beingyearofcollection): Year Levy (SeeAttachmentB) 4.04.CertificationtoCountyAuditorastoDebtServiceFundAmount.Itishereby determinedthattheestimatedcollectionsofAssessmentsandtheforegoingTaxeswillproduce atleastfivepercentinexcessoftheamountneededtomeetwhenduetheprincipalandinterest paymentsontheBonds.ThetaxlevyhereinprovidedisirrepealableuntilalloftheBondsare paid,providedthatatthetimetheCitymakesitsannualtaxleviestheCityAdministratormay certifytotheCountyAuditor/TreasurerofWrighttheamountavailableintheDebtServiceFund topayprincipalandinterestdueduringtheensuingyear,andtheCountyAuditor/Treasurerwill thereuponreducethelevycollectibleduringsuchyearbytheamountsocertified. 4.05.TheCityAdministratorisauthorizedanddirectedtofileacertifiedcopyofthis resolutionwiththeCountyAuditor/TreasurerofWrightCountyandtoobtainthecertificate requiredbyMinnesotaStatutes,Section475.63. Section5.Refunding;Findings;RedemptionofRefundedBonds. 5.01.TheRefundedBondsaretheGeneralObligationImprovementBonds,Series 2002,oftheCity,datedDecember30,2002,ofwhich$865,000inprincipalamountiscallable onOctober1,2010.Itisherebyfoundanddeterminedthatbaseduponinformationpresently availablefromtheCity'sfinancialadvisers,theissuanceoftheBondsisconsistentwith covenantsmadewiththeholdersthereofandisnecessaryanddesirableforthereductionofdebt servicecosttothemunicipality. 5.02.ItisherebyfoundanddeterminedthattheProceeds,alongwithotherCityfunds, willbesufficienttoprepayalloftheprincipalof,interestonandredemptionpremium(ifany)on theRefundedBonds. 5.03.TheRefundedBondsmaturingonFebruary1,2011andthereafterwillbe redeemedandprepaidonOctober1,2010.TheRefundedBondswillberedeemedandprepaid inaccordancewiththeirtermsandinaccordancewiththetermsandconditionssetforthinthe formsofNoticeofCallforRedemptionattachedheretoasAttachmentCwhichtermsand conditionsareherebyapprovedandincorporatedhereinbyreference.TheRegistrarforthe RefundedBondsisauthorizedanddirectedtosendacopyoftheNoticeofRedemptiontoeach registeredholderoftheRefundedBonds. 5.04.WhenallBondsandallinterestthereon,havebeendischargedasprovidedinthis section,allpledges,covenantsandotherrightsgrantedbythisresolutiontotheholdersofthe Bondswillcease,exceptthatthepledgeofthefullfaithandcreditoftheCityforthepromptand fullpaymentoftheprincipalofandinterestontheBondswillremaininfullforceandeffect. 373615v1MNIMN190-138 TheCitymaydischargeallBondswhicharedueonanydatebydepositingwiththeRegistraron orbeforethatdateasumsufficientforthepaymentthereofinfull.IfanyBondshouldnotbe paidwhendue,itmayneverthelessbedischargedbydepositingwiththeRegistrarasum sufficientforthepaymentthereofinfullwithinterestaccruedtothedateofsuchdeposit. Section6.AuthenticationofTranscript. 6.01.TheofficersoftheCityareauthorizedanddirectedtoprepareandfurnishtothe PurchaserandtotheattorneysapprovingtheBonds,certifiedcopiesofproceedingsandrecords oftheCityrelatingtotheBondsandtothefinancialconditionandaffairsoftheCity,andsuch othercertificates,affidavitsandtranscriptsasmayberequiredtoshowthefactswithintheir knowledgeorasshownbythebooksandrecordsintheircustodyandundertheircontrol, relatingtothevalidityandmarketabilityoftheBonds,andsuchinstruments,includingany heretoforefurnished,maybedeemedrepresentationsoftheCityastothefactsstatedtherein. 6.02.TheMayor,CityAdministratorandFinanceDirectorareauthorizedanddirected tocertifythattheyhaveexaminedtheOfficialStatementpreparedandcirculatedinconnection withtheissuanceandsaleoftheBondsandthattothebestoftheirknowledgeandbeliefthe OfficialStatementisacompleteandaccuraterepresentationofthefactsandrepresentations madethereinasofthedateoftheOfficialStatement. Section7.TaxCovenant. 7.01.TheCitycovenantsandagreeswiththeholdersfromtimetotimeoftheBonds thatitwillnottakeorpermittobetakenbyanyofitsofficers,employeesoragentsanyaction whichwouldcausetheinterestontheBondstobecomesubjecttotaxationundertheInternal RevenueCodeof1986,asamended(theCode),andtheTreasuryRegulationspromulgated thereunder,ineffectatthetimeofsuchactions,andthatitwilltakeorcauseitsofficers, employeesoragentstotake,allaffirmativeactionwithinitspowerthatmaybenecessaryto ensurethatsuchinterestwillnotbecomesubjecttotaxationundertheCodeandapplicable TreasuryRegulations,aspresentlyexistingorashereafteramendedandmadeapplicabletothe Bonds. 7.02.(a)TheCitywillcomplywithrequirementsnecessaryundertheCodetoestablish andmaintaintheexclusionfromgrossincomeoftheinterestontheBondsunderSection103of theCode,includingwithoutlimitationrequirementsrelatingtotemporaryperiodsfor investments,limitationsonamountsinvestedatayieldgreaterthantheyieldontheBonds,and therebateofexcessinvestmentearningstotheUnitedStates,iftheBonds(togetherwithother obligationsreasonablyexpectedtobeissuedincalendaryear2010)exceedthesmall-issuer exceptionamountof$5,000,000. (b)Forpurposesofqualifyingforthesmall-issuerexceptiontothefederalarbitrage rebaterequirements,theCityfinds,determinesanddeclaresthattheaggregatefaceamountofall tax-exemptbonds(otherthanprivateactivitybonds)issuedbytheCity(andallsubordinate entitiesoftheCity)duringthecalendaryearinwhichtheBondsareissuedisnotreasonably expectedtoexceed$5,000,000,withinthemeaningofSection148(f)(4)(C)oftheCode. 373615v1MNIMN190-138 7.03.TheCityfurthercovenantsnottousetheproceedsoftheBondsortocauseor permitthemoranyofthemtobeused,insuchamannerastocausetheBondstobe"private activitybonds"withinthemeaningofSections103and141through150oftheCode. 7.04.InordertoqualifytheBondsas"qualifiedtax-exemptobligations"withinthe meaningofSection265(b)(3)oftheCode,theCitymakesthefollowingfactualstatementsand representations: (a)theBondsarenot"privateactivitybonds"asdefinedinSection141ofthe Code; (b)theCityherebydesignatestheBondsas"qualifiedtax-exempt obligations"forpurposesofSection265(b)(3)oftheCode; (c)thereasonablyanticipatedamountoftax-exemptobligations(otherthan anyprivateactivitybondsthatarenotqualified501(c)(3)bonds)whichwillbeissuedby theCity(andallsubordinateentitiesoftheCity)duringcalendaryear2010willnot exceed$30,000,000;and (d)notmorethan$30,000,000ofobligationsissuedbytheCityduring calendaryear2010havebeendesignatedforpurposesofSection265(b)(3)oftheCode. 7.05.TheCitywilluseitsbesteffortstocomplywithanyfederalprocedural requirementswhichmayapplyinordertoeffectuatethedesignationsmadebythissection. Section8.Book-EntrySystem;LimitedObligationofCity. 8.01.TheBondswillbeinitiallyissuedintheformofaseparatesingletypewrittenor printedfullyregisteredBondforeachofthematuritiessetforthinSection1.03hereof.Upon initialissuance,theownershipofeachBondwillberegisteredintheregistrationbookskeptby theBondRegistrarinthenameofCede&Co.,asnomineeforTheDepositoryTrustCompany, NewYork,NewYork,anditssuccessorsandassigns(DTC).Exceptasprovidedinthissection, alloftheoutstandingBondswillberegisteredintheregistrationbookskeptbytheBond RegistrarinthenameofCede&Co.,asnomineeofDTC. 8.02.WithrespecttoBondsregisteredintheregistrationbookskeptbytheBond RegistrarinthenameofCede&Co.,asnomineeofDTC,theCity,theBondRegistrarandthe PayingAgentwillhavenoresponsibilityorobligationtoanybrokerdealers,banksandother financialinstitutionsfromtimetotimeforwhichDTCholdsBondsassecuritiesdepository (Participants)ortoanyotherpersononbehalfofwhichaParticipantholdsaninterestinthe Bonds,includingbutnotlimitedtoanyresponsibilityorobligationwithrespectto(i)the accuracyoftherecordsofDTC,Cede&Co.oranyParticipantwithrespecttoanyownership interestintheBonds,(ii)thedeliverytoanyParticipantoranyotherperson(otherthana registeredownerofBonds,asshownbytheregistrationbookskeptbytheBondRegistrar,)of anynoticewithrespecttotheBonds,includinganynoticeofredemption,or(iii)thepaymentto 373615v1MNIMN190-138 anyParticipantoranyotherperson,otherthanaregisteredownerofBonds,ofanyamountwith respecttoprincipalof,premium,ifany,orinterestontheBonds.TheCity,theBondRegistrar andthePayingAgentmaytreatandconsiderthepersoninwhosenameeachBondisregistered intheregistrationbookskeptbytheBondRegistrarastheholderandabsoluteownerofsuch Bondforthepurposeofpaymentofprincipal,premiumandinterestwithrespecttosuchBond, forthepurposeofregisteringtransferswithrespecttosuchBonds,andforallotherpurposes. ThePayingAgentwillpayallprincipalof,premium,ifany,andinterestontheBondsonlytoor ontheorderoftherespectiveregisteredowners,asshownintheregistrationbookskeptbythe BondRegistrar,andallsuchpaymentswillbevalidandeffectualtofullysatisfyanddischarge theCity'sobligationswithrespecttopaymentofprincipalof,premium,ifany,orinterestonthe Bondstotheextentofthesumorsumssopaid.Nopersonotherthanaregisteredownerof Bonds,asshownintheregistrationbookskeptbytheBondRegistrar,willreceiveacertificated Bondevidencingtheobligationofthisresolution.UpondeliverybyDTCtotheCity AdministratorofawrittennoticetotheeffectthatDTChasdeterminedtosubstituteanew nomineeinplaceofCede&Co.,thewords"Cede&Co.,"willrefertosuchnewnomineeof DTC;anduponreceiptofsuchanotice,theCityAdministratorwillpromptlydeliveracopyof thesametotheBondRegistrarandPayingAgent. 8.03.RepresentationLetter.TheCityhasheretoforeexecutedanddeliveredtoDTCa BlanketIssuerLetterofRepresentations(RepresentationLetter)whichshallgovernpaymentof principalof,premium,ifany,andinterestontheBondsandnoticeswithrespecttotheBonds. AnyPayingAgentorBondRegistrarsubsequentlyappointedbytheCitywithrespecttothe BondswillagreetotakeallactionnecessaryforallrepresentationsoftheCityinthe RepresentationletterwithrespecttotheBondRegistrarandPayingAgent,respectively,tobe compliedwithatalltimes. 8.04.TransfersOutsideBook-EntrySystem.IntheeventtheCity,byresolutionofthe CityCouncil,determinesthatitisinthebestinterestsofthepersonshavingbeneficialinterests intheBondsthattheybeabletoobtainBondcertificates,theCitywillnotifyDTC,whereupon DTCwillnotifytheParticipants,oftheavailabilitythroughDTCofBondcertificates.Insuch eventtheCitywillissue,transferandexchangeBondcertificatesasrequestedbyDTCandany otherregisteredownersinaccordancewiththeprovisionsofthisResolution.DTCmay determinetodiscontinueprovidingitsserviceswithrespecttotheBondsatanytimebygiving noticetotheCityanddischargingitsresponsibilitieswithrespecttheretounderapplicablelaw. Insuchevent,ifnosuccessorsecuritiesdepositoryisappointed,theCitywillissueandtheBond RegistrarwillauthenticateBondcertificatesinaccordancewiththisresolutionandtheprovisions hereofwillapplytothetransfer,exchangeandmethodofpaymentthereof. 8.05.PaymentstoCede&Co.NotwithstandinganyotherprovisionofthisResolution tothecontrary,solongasaBondisregisteredinthenameofCede&Co.,asnomineeofDTC, paymentswithrespecttoprincipalof,premium,ifany,andinterestontheBondandnoticeswith respecttotheBondwillbemadeandgiven,respectivelyinthemannerprovidedinDTC's OperationalArrangements,assetforthintheRepresentationLetter. Section9.ContinuingDisclosure. 373615v1MNIMN190-138 9.01.CityCompliancewithProvisionsofContinuingDisclosureCertificate.TheCity herebycovenantsandagreesthatitwillcomplywithandcarryoutalloftheprovisionsofthe ContinuingDisclosureCertificate.NotwithstandinganyotherprovisionofthisResolution, failureoftheCitytocomplywiththeContinuingDisclosureCertificateisnottobeconsidered aneventofdefaultwithrespecttotheBonds;however,anyBondholdermaytakesuchactionsas maybenecessaryandappropriate,includingseekingmandateorspecificperformancebycourt order,tocausetheCitytocomplywithitsobligationsunderthissection. 9.02.ExecutionofContinuingDisclosureCertificate.“ContinuingDisclosure Certificate”meansthatcertainContinuingDisclosureCertificateexecutedbytheMayorand CityAdministratoranddatedthedateofissuanceanddeliveryoftheBonds,asoriginally executedandasitmaybeamendedfromtimetotimeinaccordancewiththetermsthereof. Section10.Defeasance. 10.01.Pledges,Covenants,andOtherRightstoCease.WhenallBondsandallinterest thereon,havebeendischargedasprovidedinthissection,allpledges,covenantsandotherrights grantedbythisresolutiontotheholdersoftheBondswillcease,exceptthatthepledgeofthefull faithandcreditoftheCityforthepromptandfullpaymentoftheprincipalofandinterestonthe Bondswillremaininfullforceandeffect.TheCitymaydischargeallBondswhicharedueonany datebydepositingwiththeRegistraronorbeforethatdateasumsufficientforthepaymentthereof infull.IfanyBondshouldnotbepaidwhendue,itmayneverthelessbedischargedbydepositing withtheRegistrarasumsufficientforthepaymentthereofinfullwithinterestaccruedtothedateof suchdeposit. (Theremainderofthispageisintentionallyleftblank.) 373615v1MNIMN190-138 ExtractofMinutesofMeeting oftheCityCounciloftheCityof Monticello,WrightCounty,Minnesota Pursuanttoduecallandnoticethereof,aregularmeetingoftheCityCounciloftheCity ofMonticello,Minnesota,wasdulyheldintheCityHallinsaidCityonMonday,August23, 2010,commencingat7:00P.M. Thefollowingmemberswerepresent: andthefollowingwereabsent: ********* TheMayorannouncedthatthenextorderofbusinesswasconsiderationoftheproposals whichhadbeenreceivedforthepurchaseoftheCity'sapproximately$3,255,000General ObligationImprovementandRefundingBonds,Series2010A. TheCityAdministratorpresentedatabulationoftheproposalsthathadbeenreceivedin themannerspecifiedintheTermsofProposalfortheBonds.Theproposalswereassetforthin ExhibitAattached. InaccordancewiththeofficialTermsofProposalthefollowingadjustmentsweremade: PrincipalAmount: Maturities: MinimumPurchasePrice: Afterdueconsiderationoftheproposals,Member____________________then introducedthebondresolutionandmoveditsadoption. ThemotionfortheadoptionoftheforegoingresolutionwasdulysecondedbyMember _________________________,anduponvotebeingtakenthereon,thefollowingvotedinfavor thereof: andthefollowingvotedagainstthesame: whereuponsaidresolutionwasdeclareddulypassedandadopted. 373615v1MNIMN190-138 STATEOFMINNESOTA) ) COUNTYOFWRIGHT)SS. ) CITYOFMONTICELLO) I,theundersigned,beingthedulyqualifiedandactingCityAdministratoroftheCityof Monticello,WrightCounty,Minnesota,doherebycertifythatIhavecarefullycomparedthe attachedandforegoingextractofminutesofaregularmeetingoftheCityCounciloftheCity heldonAugust23,2010withtheoriginalminutesonfileinmyofficeandtheextractisafull, trueandcorrectcopyoftheminutesinsofarastheyrelatetotheissuanceandsaleof$3,255,000 GeneralObligationImprovementandRefundingBonds,Series2010AoftheCity. WITNESSMyhandofficiallyassuchCityAdministratorandthecorporatesealofthe Citythis______dayof_______________,2010. CityAdministrator Monticello,Minnesota (SEAL) 373615v1MNIMN190-138 STATEOFMINNESOTACOUNTYAUDITOR/TREASURER’S CERTIFICATEASTO COUNTYOFWRIGHTTAXLEVYAND REGISTRATION I,theundersignedCountyAuditor/TreasurerofWrightCounty,Minnesota,hereby certifythatacertifiedcopyofaresolutionadoptedbythegoverningbodyoftheCityof Monticello,Minnesota,onAugust23,2010,levyingtaxesforthepaymentof$3,255,000 GeneralObligationImprovementandRefundingBonds,Series2010A,ofsaidmunicipality datedSeptember14,2010,hasbeenfiledinmyofficeandsaidbondshavebeenenteredonthe registerofobligationsinmyofficeandthatsuchtaxhasbeenleviedasrequiredbylaw. WITNESSMyhandandofficialsealthis_____dayof_________________,2010. CountyAuditor/Treasurer WrightCounty,Minnesota (SEAL) Deputy 373615v1MNIMN190-138 A-1 EXHIBITA PROPOSALS 373615v1MNIMN190-138 EXHIBITB TAXLEVYSCHEDULE YEAR*TAXLEVY $ *Yeartaxlevycollected. 373615v1MNIMN190-138 ATTACHMENTC NOTICEOFCALLFORREDEMPTION $2,420,000 GENERALOBLIGATIONIMPROVEMENTBONDS,SERIES2002 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA NOTICEISHEREBYGIVENthat,byorderoftheCityCounciloftheCityof Monticello,WrightCounty,Minnesota,therehavebeencalledforredemptionandprepayment on OCTOBER1,2010 alloutstandingbondsoftheCitydesignatedasGeneralObligationImprovementBonds, Series2002,datedDecember30,2002,havingstatedmaturitydatesofFebruary1intheyears 2011through2014,bothinclusive,totaling$865,000inprincipalamount,andwiththefollowing CUSIPnumbers: YearofMaturityAmountCUSIP 2011$265,000614468VW3 2012275,000614468VX1 2013285,000614468VY9 201440,000614468VZ6 ThebondsarebeingcalledatapriceofparplusaccruedinteresttoOctober1,2010,onwhich dateallinterestonsaidbondswillceasetoaccrue.Holdersofthebondsherebycalledfor redemptionarerequestedtopresenttheirbondsforpaymentatthemainofficeofU.S.Bank NationalAssociation,intheCityofSt.Paul,Minnesota,onorbeforeOctober1,2010. Ifbymail:Ifbyhand: U.S.BankNationalAssociationU.S.BankNationalAssociation CorporateTrustOperations60LivingstonAvenue 60LivingstonAvenue3rd Floor–BondDropWindow EP-MN-WS3CSt.Paul,MN55107 St.Paul,MN55107 ImportantNotice:IncompliancewiththeJobsandGrowthTaxReliefReconciliationAct of2003,federalbackupwithholdingtaxwillbewithheldattheapplicablebackupwithholdingrate 373615v1MNIMN190-138 ineffectatthetimethepaymentbytheredeeminginstitutionsiftheyarenotprovidedwithyour socialsecuritynumberorfederalemployeridentificationnumber,properlycertified.This requirementisfulfilledbysubmittingaW-9Form,whichmaybeobtainedatabankorother financialinstitution. TheRegistrarwillnotberesponsiblefortheselectionoruseoftheCUSIPnumber,noris anyrepresentationmadeastothecorrectnessindicatedintheRedemptionNoticeoronany Bond.ItisincludedsolelyforconvenienceoftheHolders. Additionalinformationmaybeobtainedfrom: U.S.BankNationalAssociation CorporateTrustDivision BondholderRelations(800)934-6802 Dated:August23,2010. BYORDEROFTHECITYCOUNCIL By/s/JeffO’Neill CityAdministrator RatingCommentsExhibit 1 From:MOODY'SEPI[mailto:epi@moodys.com] Sent:Tuesday,August17,201012:45PM To:TomKelly Subject:Monticello(Cityof)MN MOODY'SASSIGNSAa3RATINGTOCITYOFMONTICELLO'S(MN)$3.3MILLIONGO IMPROVEMENTANDREFUNDINGBONDS,SERIES2010A Aa3RATINGAPPLIESTO$34.0MILLIONOFPOST-SALEGOULTDEBT Monticello(Cityof)MN Municipality Minnesota Moody'sRating IssueRating GeneralObligationImprovementandRefundingBonds,Series 2010AAa3 SaleAmount$3,255,000 ExpectedSaleDate08/23/10 RatingDescriptionGeneralObligation NEWYORK,August17,2010--Moody'sInvestorsServicehasassignedaAa3ratingto thecityofMonticello's(MN)$3.3millionGeneralObligationImprovementand RefundingBonds,Series2010A.Thebondsaresecuredbythecity'sgeneralobligation unlimitedtaxpledge.Proceedsofthebondswillbeusedforstreetreconstructionand highwayandcountyroadimprovements. Additionally,aportionoftheproceedswillbeusedtocurrentrefundthecity'sSeries 2002bondsforanestimatednetpresentvaluesavingsof2.5%ofrefundedpar. Concurrently,Moody'shasaffirmedtheAa3ratingonthecity'soutstandinggeneral obligationunlimitedtaxdebt,affecting$30.7million,andtheA1ratingonthecity's leaserevenuebonds,affecting$4.9million. AssignmentandaffirmationoftheAa3generalobligationratingreflectsthecity's moderately-sizedtaxbasewithsignificanttaxbaseconcentration;solidfinancial operationswithhealthyreservesandsomeexposuretoenterpriserisk;andabove averagedebtlevelswithaverageprincipalamortization. MODERATELY-SIZEDTAXBASEFAVORABLYLOCATEDALONGI-94BETWEEN MINNEAPOLISANDST.CLOUD;SIGNIFICANTTAXBASECONCENTRATION RatingCommentsExhibit 2 Located40milesnorthwestofMinneapolisalongInterstate94,thecityislocated midwaybetweenthecityofSt.Cloud(generalobligationratedAa2)andMinneapolis (Aaa/stableoutlook).Residentsbenefitfromemploymentopportunitiesinboth locations,thoughcityofficialsreportthatthemajorityofresidentscommutetotheTwin Citiesmetropolitanareaforemployment.Weexpectthecity'smoderately-sized$1.3 billiontaxbasetocontinuetoexperiencemoderategrowthduetoitsfavorablelocation andannexationopportunities.ThecityhasanannexationagreementwithMonticello Townshipidentifyingupto8,000acresofthesurroundingtownshipthatmaybe annexedbythecity.Nopropertyhasbeenannexedinrecentyearsasdevelopmenthas slowed.In2009,NorthstarCommuterRailopenedarailstationfivemilesfrom MonticelloinnearbyBigLake(Aa3).ThecommuterrailconnectsBigLakewith Minneapolis,providingadditionalcommutingoptionstoMonticelloresidents.Wright County's(Aa2)unemploymentratehashistoricallytrendedabovethestateand continuestodosoat7.3%inMay2010,comparedto6.4%forthestateand9.3%for thenation. SignificanttaxbaseconcentrationexistswiththepresenceofXcelEnergy(senior unsecuredratedBaa1/stableoutlook)MonticelloNuclearStation,whichrepresented 29.6%ofthetaxbasein2010.Wenotethatthispercentagehasdroppedconsiderably overthelastdecade.In1997,Xcelcomprisedanevenmoresubstantial75%of assessedvaluation.The600megawattnuclearpowerplanthasbeeninoperationsince 1971andisalsooneofthecity'slargestemployers,withapproximately422year-round employees.Weexpectthatthepowerplantwillremaininoperationinthenearto mediumterm.Xcelrecentlyhaditsapplicationtocontinueoperationsapprovedthrough 2030andexpandeditson-sitestorageofusednuclearfuelwithanewdrystorage facility. Additionally,thecompanyisintheprocessofexpandingitspoweroutputby 70megawatts,withscheduledcompletionin2011.Duetochangestostatelaws regardingthevaluationofutilityproperty,Xcel'svaluationwentthroughaphased reductionfrom2007to2009,whichledtoan8.1%declineinthecity'sfullvaluation from2008to2009.Thecityreceivedtransitionaidfromthestatetocompensatefor thevaluationreclassification.In2010,fullvaluationincreasednearlybackto2008 levelsduetoXcel'sexpansions,decertificationofthreetaxincrementdistricts,andnew construction.Percapitaincomeisbelowthenationat89.1%ofU.S.levelswhile medianfamilyincomeapproximatesnationalaveragesat107%oftheU.S.inthe2000 census. SOLIDFINANCIALOPERATIONSWITHHEALTHYRESERVELEVELS;SOMEENTERPRISE RISKASSOCIATEDWITHFIBEROPTICSUTILITY Weanticipatethecity'sfinancialoperationswillremainrelativelystableduetoits healthyreservelevelsandroomavailableunderlevylimits.Thecityhashistoricallyhad healthyGeneralFundbalances,averagingover70%ofrevenuesoverthelastfive years.Infiscal2009,reservesdroppedbyapproximately$1millionduetocapital RatingCommentsExhibit 3 expenditures,includingtheplannedpurchaseofafiretruckandunbudgetedpurchase ofabuildingfortheFiberNetMonticelloproject.Thecityalsosawdeclinesininterest incomeandbuildingpermitrevenues,whichwereoffsetthroughexpenditurereductions anddelaysofequipmentpurchases.Thecityendedfiscal2009withaGeneralFund balanceof$5.1million,orahealthy68.2%ofrevenues.Forfiscal2010,thecity currentlyexpectstoendtheyearwithbalancedtosurplusoperationsbasedonyear-to- dateperformance.Favorably,thecityhasroomtolevyuptoanestimated$1.3million inadditionalpropertytaxrevenuesunderthestate-imposedlevylimits.Additionally, citycouncilrecentlypassedaformalpolicytomaintainGeneralFundreservesat45% ofoperatingexpenditures. Reservesabovethisamountcanbedesignatedforcapitalimprovementprojectsand equipmentpurchases.Propertytaxescomprisedapproximately68.3%ofGeneralFund revenuesin2009,followedbychargesforserviceat9.5%.Thecitydoesnotreceive anyLocalGovernmentAid(LGA)fromtheStateofMinnesota(Aa1/stableoutlook), whichlimitsthecity'svulnerabilitytothestate'sbudgetpressures. ThecitystartedFiberNetMonticelloin2008inordertoestablishbroadband"fiber-to- the-premises"internet,phone,andcablethroughoutthecity.Votersauthorizedthecity tooperatetelephoneservicewith75%approval.Toestablishthenetwork,thecity issued$26.5millioninbondsbackedbythefuturenetrevenuesofthefiberoptics utility.Thecityisintheprocessoflayingalloftheinfrastructure,withtheexpectation ofallhomesandbusinessesinthecitybeingconnectedbyNovember2010.The enterprisecurrentlyhas1,000customersandisexpectedtobeself-supportingbyfiscal 2013.Currently,operationsarefundedthroughmodestchargesforservicerevenueand approximately$2millionsetasideforstart-upcostsfromtherevenuebondissuance. TheGeneralFunddoesnotprovidesupporttotheenterpriseatthepresent.Wenote thatiftheenterpriseisnotself-supportingafterthecityexhauststheinitialset-aside capital,unanticipatedGeneralFundsupportcouldberequired,representingsome enterpriseriskforthecity.Wewillcontinuetomonitorthisprojectandthelevelof GeneralFundsupportinfuturecreditreviews. ABOVEAVERAGEDEBTBURDENWITHADDITIONALBORROWINGPLANS Weexpectthecity'sdebtburdentocontinuetoremainaboveaverageduetoplansfor futureborrowing.At4.3%and5.5%offullvalue,respectively,thecity'sdirectand overalldebtburdensarebothabovestateandnationalaverages.Thedebtcalculation includesapproximately$26.5millioninrevenuebondsissuedforthefiberopticsfund. Whiletheserevenuebondsaresecuredbynetrevenuesofthefiberopticssystemand donotconstituteageneralobligationofthecity,wehaveincludedtheminthecity's debtburdenasthefiberopticssystemisnotself-supporting.Thecitycapitalized interestonthebondsforthefirstthreeyears,withthefirstprincipalpaymentof $85,000(totaldebtservicepaymentof$1.85million)dueinfiscal2013.Netofthese bonds,thecity'sdirectdebtremainsaboveaverageat2.3%.Thecitymayissue approximately$10millionin2011and$8millionin2012forstreetandinfrastructure RatingCommentsExhibit 4 improvementsaspartofitsfive-yearcapitalimprovementsplan.Principalamortization isaverage,with63.9%repaidwithintenyears. Allofthecity'soutstandingdebtisfixedrate,andthecityisnotapartytoanyinterest rateswapagreements. KEYSTATISTICS: 2000Population:7,868(59.2%increasesince1990) 2009Population(estimate):11,996(52.5%increasesince2000) 2010Fullmarketvaluation:$1.3billion(3.4%averageannualincreasesince 2005) Estimatedfullvaluepercapita:$115,982 Percapitaincomeas%ofU.S.(1999):89.1% Medianfamilyincomeas%ofU.S.(1999):107% WrightCountyunemploymentrate(May2010):7.3% FY2009GeneralFundbalance:$5.1million(68.2%ofGeneralFundrevenues) Debtburden:5.5%(4.3%direct) Principalamortization(10years):63.9% Post-saleGOULTdebtoutstanding:$34.0million Post-saleleaserevenuebondsoutstanding:$4.9million PRINCIPALMETHODOLOGYANDLASTRATINGACTION TheprincipalmethodologyusedinratingCityofMonticello,MN,wasMoody'sGeneral ObligationBondsIssuedbyU.S.LocalGovernment,ratingmethodologypublishedin October2009.Othermethodologiesandfactorsthatmayhavebeenconsideredinthe processofratingthisissuercanalsobefoundonMoody'swebsite. ThelastratingactionwithrespecttothecityofMonticello(MN)wasonMarch20,2008 whenthecity'sA2GOULTratingwasaffirmed.Thatratingwassubsequently recalibratedtoAa3onApril16,2010. REGULATORYDISCLOSURES RatingCommentsExhibit 5 Informationsourcesusedtopreparethecreditratingarethefollowing: partiesinvolvedintheratings,partiesnotinvolvedintheratings,andpublic information. Moody'sInvestorsServiceconsidersthequalityofinformationavailableontheissuer satisfactoryforthepurposesofassigningacreditrating. Moody'sInvestorsServiceadoptsallnecessarymeasuressothattheinformationituses inassigningacreditratingisofsufficientqualityandfromreliablesources;however, Moody'sInvestorsServicedoesnotandcannotineveryinstanceindependentlyverify, auditorvalidateinformationreceivedintheratingprocess. Pleaseseeratingstabontheissuer/entitypageonMoodys.comforthelastrating actionandtheratinghistory. ThedateonwhichsomeCreditRatingswerefirstreleasedgoesbacktoatimebefore Moody'sInvestorsService'sCreditRatingswerefullydigitizedandaccuratedatamay notbeavailable.Consequently,Moody'sInvestorsServiceprovidesadatethatit believesisthemostreliableandaccuratebasedontheinformationthatisavailableto it.Pleaseseetheratingsdisclosurepageonourwebsite www.moodys.com forfurther information. PleaseseetheCreditPolicypageonMoodys.comforthemethodologiesusedin determiningratings,furtherinformationonthemeaningofeachratingcategoryand thedefinitionofdefaultandrecovery. ANALYSTS: EmilyRobare,Analyst,PublicFinanceGroup,Moody'sInvestorsServiceRachelCortez, BackupAnalyst,PublicFinanceGroup,Moody'sInvestorsService CONTACTS: Journalists:(212)553-0376 ResearchClients:(212)553-1653 Moody'sInvestorsService 250GreenwichStreet NewYork,NY10007 USA CityCouncilAgenda:08/23/10 1 10.ConsiderationofappointingaCouncilMembertoattendtrainingforcontinuation ofMonticello’sLocalBoardofAppeal&Equalization (TK/JO) A.REFERENCEANDBACKGROUND: CitystaffwasrecentlynotifiedbyWrightCountyofupcomingdatesforLocalBoardof Appeal&Equalization(LBAE)training.InorderfortheCitytocontinueparticipatingin theLBAEprocess,atleastonecouncilmembermustattendthetrainingofferedbythe MinnesotaDepartmentofRevenue.ThereisasessionscheduledattheWrightCounty CourthouseonThursday,September9from1to4p.m.,witharegistrationdeadlineof August26th.Theattachedschedulealsolistsothercoursedates. TheLocalBoardofAppeal&Equalizationprocessbasicallyconsistsofmaking arrangementswithWrightCountyfortheproposedhearingdatesetfortheCityand publishingthenoticeofthehearingforanytaxpayersthatwishtoappealtheirtax assessment/valuation.AquorumofCityCouncilmembersisrequiredatthehearing, whichisattendedbytheCountyAssessor.Generally,CityCouncilwouldconsiderany appealsandmakeadecisiontograntordenytheappeal.IftheCitywerenotinvolvedin theLBAEprocess(thatis,noCouncilMembersattendLBAEtraining),theCounty wouldhavejurisdictionoverthehearingandwouldrenderdecisionsonappeals. A1.BudgetImpact:None A2.StaffWorkloadImpact:Minimalatthistime.IfCouncilwouldtransferthe LocalBoardofAppeal&EqualizationprocesstoWrightCounty,Citystaffand Councilwouldnotneedtobeinvolvedinthehearing. B.ALTERNATIVEACTIONS: 1.MotiontosendCouncilMember_____________________toLocalBoardof Appeal&EqualizationtrainingonSeptember9th atWrightCountyoralternate dateatanothersite. 2.MotiontonotsendaCouncilMembertoLBAEtrainingandtransfertheLocal BoardofAppealprocessfromtheCitytoWrightCounty. C.STAFFRECOMMENDATION: CitystaffrecommendsthatamemberofCouncilbeidentifiedtoreceivethistraining basedonthepresumptionthattheCityCouncilwouldliketomaintainitsstatusasthe LocalBoardofAppealandEqualizations. D.SUPPORTINGDATA: LetterfromWrightCounty ScheduleofLocalBoardofAppeal&Equalizationtraining ExcerptfromMNStatutes,Chapter274 CityCouncilAgenda:08/23/10 1 11.Considerationofallocatinggeneralfunddollarsin2011forcompletionofthe EmbracingDowntownstudy (MB/TK) A.REFERENCEANDBACKGROUND: TheEDAandCityCouncilunanimouslyapprovedmovingforwardwithanEmbracing DowntownstudyatthejointmeetingonJuly14,2010,withthecaveatthatstaffresearch viablefundingsources.Atthejointmeeting,theEDAdidapproveallocating$128,000of surplusTIFfundsatthejointmeeting.Subsequenttothemeeting,staffresearchedother viablefundingoptions. AttheAugust18,2010EDAmeeting,staffrequestedtheEDAallocateanadditional $32,000ofsurplusTIFfundsfromDistrict1-2.StaffstatedtotheEDAthatfundsinthis districtwilldecertifyinDecemberandreturntothecountyunlessweidentifyaviable project.TheEDAoriginallyrequestedthesefundsbeutilizedforpurchasingproperty downtown.However,manypieceshavechangedindowntownanditisstaff’sopinionit willbedifficulttocloseonapropertypriortoDecember.TheEDAagreedwithshifting theseremainingsurplusdollarstofurtherassistinfundingthedowntownstudy. However,theshiftofdollarswasmadecontingentupontheCityCouncilallocating dollarstofundtheremainingbalance.IntheeventtheCityCouncildoesnotapprove allocatingtheremainingbalance,theEDAwillnotallocateanadditional$32,000of surplusTIF.Ifthisweretooccur,theprojectwouldnotmoveforward. Insum,theEDAhaspreliminaryapprovedallocatingatotalof$160,000ofTIFfundsfor theEmbracingDowntownstudy.Thisleavesanoutstandingbalanceof$77,695.The CityCouncildidgivepreliminaryindicationatthejointmeetingthattheybelieveda portionofthestudyshouldcomefromgeneralfunds.Basedonthediscussionatthejoint meeting,staffattemptedtoproposeareasonablebalancebetweensurplusTIFand generalfunds. Itisimportanttonotethatstaffwillalsoapplyforanyavailablegrants.Itispossiblethe CitycouldreceiveanInitiativeFoundationGrant,aLiveWrightGrant(forthepedestrian section),andotherEconomicDevelopmentgrants.Staffwillbediligentinresearching optionstoreduceboththeEDAandCitygeneralfundexpenses. A1.BudgetImpact:The2011budgetwouldincludeanexpenditureof$77,695. A2.StaffWorkloadImpact:Citystaffwouldassistthroughthelengthoftheproject, whichcouldtakeanywherefromsixtotwelvemonths. B.ALTERNATIVEACTIONS: 1.Motiontoapproveallocating$77,695of2011generalfundsfortheremaining balanceoftheEmbracingDowntownStudy. 2.MotiontodenyallocatinggeneralfundstofundtheEmbracingDowntownStudy. CityCouncilAgenda:08/23/10 2 C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1.TheEDAapprovedallocatinganadditional $32,000ofTIFfundsforatotalof$160,000contingentupontheCityCouncilapproving allocatingtheremainingbalanceof$77,695intheCity’sgeneralfund. TheCityCouncilandtheEDAstatedtheirsupportfortheMcCombGrouptocomplete theEmbracingDowntownStudyattheJuly14,2010jointmeeting.Staffhasattempted todetermineamethodofallocatingthecostbetweensurplusTIFandgeneralfundsbased ondirectionreceivedatthejointmeeting.Itisimportanttogetsupportandfinalapproval fromtheCityCouncilinordertomoveforwardwiththeEmbracingDowntownstudy. TheinitiationoftheEmbracingDowntownstudyhasthepotentialtobringinfarmore than$77,695dollarsoftaxbase.Thisprojectcouldbeviewedasthemeanstoachieve thehighestandbestfuturetaxbasefordowntown. D.SUPPORTINGDATA: None CityCouncilAgenda:8/23/10 1 12.Considerationofacceptingquotesandawardingacontractforareaderboardsign atHi-WayLiquorssite,contingentonPlanningCommissionapprovals (KB/TK/AS) A.REFERENCEANDBACKGROUND: AttheJuly26th CityCouncilmeeting,theCouncilauthorizedstafftoproceedwith implementinganRFPprocessforthepurposeofsolicitingdesignideasandcosts associatedwithsignconstructionaswellascurrentsignrepairquotes.Approximately30 requestsfordesignsandquotesweresentouttolocalandareasigncompanies.The proposalsrequestedthattheydesignasign,usingoursigncoderequirements,which wouldbecompatiblewiththeLiquorStoreandbeeye-catchingforthepurposesof advertisingtheLiquorStore,theCityCampusandCityeventsandprograms.We receivedsixdesignsandpricequotesbackbytheAugust18th deadline.Nolocalsign companiesrespondedtothisrequest. AteamofstaffmembersincludingJeffO’Neill,RandallJohnsen,TomKelly,Angela Schumann,DonPattonandKittyBaltosreviewedtheproposalsforbestdesignandprice. Theteamdidcometoaunanimousagreementonwhichdesignwasthebestandatthe bestprice.Someofthefactorsconsideringinthisdecisionweremeetingthe specificationsoftheRFP,quality,re-useofstructure,andpriceandattractivenessofthe sign.StaffisnowaskingCounciltoauthorizeeithertherepairofthecurrentsignorto replacethecurrentsigntoincludeanelectronicmessagecenterbasedonthequotes received. ThedesignedfavoredbytheteamwasfromTopLineAdvertisingoutofMapleGrove. TheyproposeusingtheexistinginternalsignstructureandchangingouttheLiquorStore sign,addinganelectronicmessagecenterandadirectionalfortheCityHall.They quoteda4footx8foot,20mmfullcolorLEDsign.Asapointofreference,theHoliday ConveniencestoreonHighway25oneblocksouthhasthesamesignina16mmor higherresolution.Theteamwantedtobeabletoexplorethepossibilityofalarger electronicmessagesign.Thesignordinanceallowsfor50squarefeet.Inthis application,a6footx8footsignmightprovideamoreappropriately-sizedmessage centerforcommunityandCityevents.We’dalsoliketodetermineifahigherresolution, or16mm,willprovideagreaterimpactthanthequoted20mm. ThequotesreceivedfromTopLineAdvertisingwere$4,899torepairtheexistingsign cabinetand$32,390toreplacewithaused(6monthold)20mm4’x8’electronicmessage center.Thepricewouldincreaseby$7,440forthesamesize,butnew,electronic messagecenter.Costsnotincludedinthisquoteareadditionalelectricalcircuits,if needed,permitfeesanda$200securialfee. PriortotheCouncilmeetingwewillattempttoobtainthepricesfortheupgrades mentionedaboveaswellasanexampleofa20mmelectronicmessagecentertohelpthe Councilintheirevaluationofthisproject. CityCouncilAgenda:8/23/10 2 A1.BudgetImpact:IftheCouncilchoosestoreplacethecurrentsign,thebudget impactwouldbeasharedcost.Aportioncomingfrominsurancereimbursement, fromtheCommunityCenterwhohasreceivedmoneyfromBernick’sPepsithat theAdvisoryBoardhasearmarkedforasignwithanelectronicmessagecenter, fromtheLiquorStore,andfromFiberNetMonticello.ThequotefromTopLine Advertiserswas$32,390plussomeadditionalcostsforelectricalandpermits. TheCouncilmaydecidetoupgradetoalargermessagecenterandahigher resolutionmessagecenterwithcoststobeprovidedatthemeeting. A2.StaffWorkloadImpact:IthasbeenagreedthattheCommunityCenterstaff wouldmanagethemessageontheelectronicmessagecenter.TheCityStaff wouldworktoestablishguidelinesforthemessagecenterwiththeapprovalofthe Council.Theactualworkonthesign,eitherrepairorreplace,wouldrequire inspectionsbythebuildingdepartmentandgeneralworkcouldbeoverseenbythe LiquorStoreManagerandtheCommunityCenter. Atthistime,TowneCentrewasnotreadytomoveforwardwiththeirsignplans.The staffwillworktocoordinatevisibilityandlocationwhenplansarereceived. B.ALTERNATIVEACTIONS: 1.MotiontoauthorizestafftorepairthecurrentLiquorStoresignattheprice $4,899tobesubmittedtoinsuranceforreimbursement. 2.MotiontoauthorizestafftoreplacetheLiquorStoresignusingTopLine Advertisingforthequotedpriceof$32,390plusadditionalcostrequirements identifiedforelectricalandpermits,withtheoptionoffurtherupgradestothe resolutionand/orsizeoftheelectronicmessagecenter. 3.Motiontodenyauthorizationofeitherrepairorreplacementofsignanddirect staffonhowtoproceed. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#2withfurtherreviewofupgradeoptions.Thestaff likedtheideathatTopLinewasnotplanningtodemolishtheentiresign;insteadutilizing theinternalstructuretocreateamoreattractive,productiveandcosteffectivesignforthe City. Pleasenotethatthereisinterestfromothercompaniesinpurchasingtheusedelectronic messageboardquotedbyTopLine.Itistheonlyusedonetheyhave;itmayormaynot beavailableaftertheCouncilmeeting. D.SUPPORTINGDATA: DesignsandquotesreceivedfromTopLineAdvertising Designsandquotesreceivedfromothervendors CityCouncilAgenda:08/23/10 1 13.ReviewoftheMonticelloRentalHousingLicenseordinanceandconsiderationof possiblemodificationstoprogram (RH/DH/AS) A.REFERENCEANDBACKGROUND: OnJuly23rd of2007,theCityCounciladoptedtheRentalHousingLicenseOrdinance. Atadoptionitwastheintentionthatthisprogramwouldbereviewedperiodically.The objectiveofthisreviewwouldbetoevaluatetheinspectionandlicensingprocesses,the budgetaryeffects,andtheeffecttheprogramhasonthecommunity. Currently,eachpropertymustapplyforaRentalLicenseannually.Theinspectionsare conductedonanevery-other-yearbasis.InlateDecember2009,itwassuggestedthatwe changetheapplicationprocesstoanevery-other-yearcycletomatchtheinspection schedule.Theoddaddresseswouldapplyandbeinspectedontheoddnumberedyears andevenaddressesonevenyears.Thischangewouldmakethelicensevalidfortwo years.Theexpectationwouldbethatthechangewouldsaveagreatdealofstafftime thereforereducingcostandthiswouldalsomakethingssimplerforthepropertyowners. ConsiderationofdirectingstafftoreviewandrecommendchangestotheCity’sRental LicensingOrdinancewaspresentedtotheCouncilattheJanuary11th,2010meeting.The motionwasapprovedtotablethereviewoftheRentalLicensingprocessuntilJune2010 andatthattimediscussindetailchangesfor2011.Thereasonbehindthisdecisionwas thatthe1st quarteroftheyearisthepeakoftherentallicensingworkloadactivityand about80%ofthe2010applicationshadalreadybeenreceivedandpaidfor. TheDepartmentofBuildingSafetyStaffhassincereviewedtheRentalLicenseProgram processandproceduresandpossibleaffectsofproposedchangesandhasprepareda presentationofthesefindings. Theannualrecordsoftheprogramwerereviewedtogetthetotalnumbersof applications,rentalproperties,dwellingunits,inspections,mailings,etc.foreachyear. Theapproximatetimeittakesforcompletingeachtaskwasthenmultipliedbythese numberstocomeupwithareasonablyaccurateestimateoftotalstafftimespentonthis program.Approximateworktimewasalsocalculatedandincludedformiscellaneous administrative/customerservicetasksthatarenottrackedsuchasmakingandreceiving phonecallsandhelpingcitizensatthecounter. Whatwasfoundwasthatthetotalnumberofstaffhoursspentontheprogramis decreasingineachsuccessiveyear.Thepass/failratioofinspectionsisalsoincreasingly morepositive.Lessre-inspectionsarerequiredbecause67%ofpropertiespassedtheir firstinspectionthisyearversusonly26%twoyearsago.Thisdecreaseinre-inspection ratesisespeciallynoteworthybecausethenumberofrentalpropertyapplications currentlyincreasesbyabout10%peryear. Staffworkloadissplitfairlyevenly,withabout55%timespentinthefieldoninspections and45%spentonadministrationoftheprogram.Additionaldetailonthereview CityCouncilAgenda:08/23/10 2 findingsareillustratedintheattachmentsandwillbefurtherdetailedduringpresentation attheCityCouncilmeeting. Inconsideringanadjustmenttothecurrentsystem,Councilwillwanttoconsiderwhether switchingtoanevery-other-yearapplicationwouldbebeneficialintermsoftimeand cost,andwhetherornotthelandlordspreferthischange. Theestimatesshowthatprocessingtherentalapplicationstakesapproximately48staff hoursperyearorabout7%ofthetimespentontherentalprogram(0.008%oftotalhours atcurrentdepartmentstafflevel).Changingtheapplicationprocesswouldsaveroughly 24staffhoursperyear. Staffalsoattemptedtocallalloftheapartmentpropertymanagers/ownerstogettheir feelingsonswitchingtheapplicationprocess.Outofthe14thatstaffwasabletocontact eightwantedtheapplicationprocesstostayyearly,moststatingbudgetingreasons.One ownersupportedachangetoatwoyearlicenseandtheotherfivewereindifferent.Two ofthemanagersactuallysuggestedtheywouldprefereveryyear(annual)inspections also. A1.BudgetImpact:Tobedetermined A2.StaffWorkloadImpact:Tobedetermined B.ALTERNATIVEACTIONS: 1.MotiontodirectstafftodraftamendmenttoCityordinancesections3-16-6(C)& (D)allowingachangetotherentalhousinglicenseprogram,requiringapplication onanevery-other-yearbasisandmakingthelicensevalidfortwoyears;direct stafftosubmitordinanceamendmentstothefeescheduletoreflectthetwoyear licensecycle;anddirectchangestotakeaffectwiththestartofthe2011license cycle. 2.Motiontotakenoactionforchangestotherentalhousinglicenseprogramatthis time. 3.Motiontotableactionforfurtherreviewoftherentallicensingprogram. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#2.Amajorchangetotheapplicationprocesswould, byandlarge,notbebeneficialintermsofalargesavingsofstafftimeandcost.Inthe quicksurveytakenofthelandlordsandthroughtheexperienceoftheinspectors,the majorityofthelandlordswouldnotsupportachangeoftheapplicationprocess. Changingtheapplicationprocesstoanevery-other-year(2yearlicense)wouldrequire amendmenttotheordinanceandamajoroverhauloftherentaltrackingsystemthatis CityCouncilAgenda:08/23/10 3 currentlyinplace.Thebenefitsofthischangewouldbeminuteincomparisontothe resourcesrequiredtomakethischange. Staffwillcontinuetomonitorthelicensingprocessandmakeminoradjustmentsand improvementstotheprogramtostreamlinetheprocess.TheDepartmentwillmakethese minorchangestothelicensingprocessonlyifitisinthebestinterestofefficiencyand theaccuracyoftherecords.StaffwillcontinuetoprovideCouncilwithannualreviewsof theRentalHousingLicenseProgram.Wecouldpossiblyrevisitthisissueinthesummer of2012,allowingeachtwofullcyclesoftheevenandoddaddressedproperties.This wouldcreateamoreaccuratepictureofthetrendsandpossiblecost/timesavingsof majorchanges. D.SUPPORTINGDATA: ExhibitA:NumberofApplications&Inspection ExhibitB:InspectionOverview ExhibitC:DepartmentStaffHours ExhibitD:RentalLicensingWorkloadDistribution ExhibitE:RentalLicenseProgramHourlyBreakdown ExhibitF:RentalPropertyYearlyBreakdown,Pass/FailRatios