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City Council Agenda Packet 11-10-2014AGENDA REGULARMEETING–MONTICELLOCITYCOUNCIL Monday,November10,2014–7p.m. MississippiRoom,MonticelloCommunityCenter Mayor:ClintHerbst CouncilMembers:LloydHilgart,TomPerrault,GlenPosusta,BrianStumpf 1.CalltoOrderandPledgeofAllegiance 2A.ApprovalofMinutes–October27,2014RegularMeeting 3.Considerationofaddingitemstotheagenda 4.Citizencomments,publicserviceannouncements,andupdates A.CitizenComments: B.PublicServiceAnnouncements: 1)EDApositionopen C.Updates: 1)Snowmobileroutes(TM) 5.ConsentAgenda: A.ConsiderationofapprovingpaymentofbillsforNovember10th B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments C.ConsiderationofadoptingResolution#2014-112toacceptcontributionfrom UptownEyeCarefortheCommunityCenterHalloweenKiddieParade D.ConsiderationofapprovingtheWasteWaterTreatmentFacilitycontractamounts withVeoliaWaterfor2015 E.ConsiderationofadoptingResolution#2014-114amendingtheConditionalUse PermitforDevelopmentStageandFinalStagePlannedUnitDevelopment(PUD) forSunsetPonds2nd Addition.Applicant:Jensen,Donald/SunsetPonds,LLC F.ConsiderationofadoptingResolution#2014-113statingIntenttoReimbursefrom bondproceedsforcertaincityprojects:SchoolBlvdimprovements,Fallon Avenueoverlayand85th StreetNEimprovements,FallonAvenuetrail connection,andStateHwy25/85th Streetintersectionimprovements 6.Considerationofitemsremovedfromtheconsentagendafordiscussion 7.RegularAgenda: A.ConsiderationofadoptingResolution#2014-117canvassingthereturnsand declaringtheresultsofthe2014GeneralelectionfortheCityofMonticello B.ConsiderationofadoptingResolution#2014-115approvingthesaleof $6,510,000G.O.Bonds,Series2014A C.ConsiderationofadoptingResolution#2014-116authorizingpreparationof FeasibilityReportforFallonAvenuepathwayextensionandFallonAvenueand 85th StreetImprovements,CityProjectNo.14Cxxx 8.Addeditems 9.Adjournment CityCouncilAgenda:11/10/14 1 5A.ConsiderationofapprovingpaymentofbillregistersforNovember10th (WO) A.REFERENCEANDBACKGROUND: Citystaffsubmitstheattachedbillregistersandpurchasingcardregistersforapprovalby Council.Thebillregisterscontainallinvoicesprocessedandthepurchasingcard registerscontainallcardpurchasesmadesincethelastCouncilmeeting.SubjecttoMN Statutes,mostinvoicesrequireCouncilapprovalpriortoreleasingchecksforpayment. ThedayfollowingCouncilapproval,paymentswillbereleasedunlessdirected otherwise.AcreditpurchasingagreementandpolicywasapprovedbyCouncilinitially andcardpurchasesmustcomplywiththepolicy. IfCouncilhasnoquestionsorcommentsonthebillandpurchasecardregisters,thesecan beapprovedwiththeconsentagenda.Ifrequested,thisitemcanberemovedfrom consentanddiscussedpriortomakingamotionforapproval. A1.BudgetImpact:None A2.StaffWorkloadImpact:Noadditionalworkrequired B.ALTERNATIVEACTIONS: 1.Motiontoapprovethebillandpurchasecardregistersforatotalamountof $374,641.15. 2.MotiontoapprovetheregisterswithchangesdirectedbyCouncil. C.STAFFRECOMMENDATION: CitystaffrecommendsAlternative#1or#2,perdirectionofCouncil. D.SUPPORTINGDATA: Billregisters PurchaseCardregisters User: Printed:11/05/2014 - 11:32AM Julie.Cheney Computer Check Proof List by Vendor Accounts Payable Batch:00203.11.2014 - 00203.11.2014 Invoice No Description Amount Payment Date Acct Number Reference Vendor:2282 ALBIN ACQUISITION CORPORATION Check Sequence: 1 ACH Enabled: True 1020145487S Trusted Employees - DBA Albin Aquition - Background Checks (7) 133.00 11/11/2014 226-45122-431990 1020145487S Trusted Employees - DBA Albin Aquition - Background Checks (1) 25.00 11/11/2014 609-49754-431990 1020145487S Trusted Employees - DBA Albin Aquition - Background Checks (1) 23.00 11/11/2014 655-49870-431990 181.00Check Total: Vendor:3696 AMERICAN LEAK DETECTION Check Sequence: 2 ACH Enabled: False 16047 Meadow Ln leak detected at approx 209-211 feet 450.00 11/11/2014 601-49440-431990 450.00Check Total: Vendor:1979 DONALD ANDERSON Check Sequence: 3 ACH Enabled: False 10162014 meal - Mn Fire Cheifs Association Conf - St. Cloud 11.46 11/11/2014 101-42200-433100 11.46Check Total: Vendor:1038 APPERTS FOOD SERVICE Check Sequence: 4 ACH Enabled: False 0017916PU Return Apple Juice boxes -25.96 11/11/2014 226-45127-425410 410310547 Freight 5.00 11/11/2014 226-45122-433300 410310547 Cheese Pizzas (1 case) 41.86 11/11/2014 226-45127-421460 410310547 Resale - Concession - cheese dip, sherbet, pizzas, muffins, chip 497.66 11/11/2014 226-45127-425410 518.56Check Total: Vendor:1039 AQUA LOGIC INC Check Sequence: 5 ACH Enabled: True 42866 Maint Pool Service- Heater, O-ring, washer, temp sensor, 379.87 11/11/2014 226-45122-440800 379.87Check Total: Vendor:3819 AST SPORTS Check Sequence: 6 ACH Enabled: True 14781 (19) embroid logo;(19) Embroid Name; 19) surcharge- Park split 104.75 11/11/2014 101-43120-441700 14781 (19) embroid logo;(19) Embroid Name; 19) surcharge- Park split 44.75 11/11/2014 101-45201-441700 14781 (19) embroid logo;(19) Embroid Name; 19) surcharge- Water split 29.75 11/11/2014 601-49440-441700 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 1 Invoice No Description Amount Payment Date Acct Number Reference 14781 (19) embroid logo;(19) Embroid Name; 19) surcharge- Sewer split 29.75 11/11/2014 601-49440-441700 14782 (8) embroidery; (2) hoodie; (2) full zip Parks 134.00 11/11/2014 101-45201-441700 343.00Check Total: Vendor:1065 BELLBOY CORPORATION Check Sequence: 7 ACH Enabled: True 45484300 RE SALE 285.00 11/11/2014 609-49750-425100 45484300 freight 5.40 11/11/2014 609-49750-433300 290.40Check Total: Vendor:1067 BERNICK'S Check Sequence: 8 ACH Enabled: False 69337 re sale -2.73 11/11/2014 609-49750-425500 69338 re sale 49.20 11/11/2014 609-49750-425500 69338 re sale 32.70 11/11/2014 609-49750-425400 69341 re sale 291.50 11/11/2014 609-49750-425200 70001 Resale 270.00 11/11/2014 226-45127-425410 72158 re sale 20.00 11/11/2014 609-49750-425500 72158 re sale 150.90 11/11/2014 609-49750-425400 72159 re sale 1,259.05 11/11/2014 609-49750-425200 2,070.62Check Total: Vendor:1080 BRAEMAR MAILING SERVICE INC Check Sequence: 9 ACH Enabled: False 55602 UB Qtr 3 2014 (3915) DMV Insert 39.15 11/11/2014 217-41990-434990 55602 UB Qtr 3 2014 (3915) MCC Insert 39.15 11/11/2014 226-45122-431950 55602 UB Qtr 3 2014 Envelopes (3915) each #10; #9 (1/2) 264.27 11/11/2014 601-49440-431800 55602 UB Qtr 3 2014 Envelopes (3915) each #10; #9 (1/2) 264.26 11/11/2014 602-49490-431800 55602 UB Qtr 3 2014 print statements; fold; insert; etc. (1/2) 311.76 11/11/2014 601-49440-431800 55602 UB Qtr 3 2014 print statements; fold; insert; etc. (1/2) 311.77 11/11/2014 602-49490-431800 1,230.36Check Total: Vendor:1106 CENTRAL MCGOWAN INC Check Sequence: 10 ACH Enabled: False 00030424 Monthly Facility Fee 45.00 11/11/2014 226-45122-441500 00823033 Bulk Carbon Dioxide (450 lbs) 116.00 11/11/2014 226-45122-421600 161.00Check Total: Vendor:1129 DAHLHEIMER BEVERAGE LLC Check Sequence: 11 ACH Enabled: True 99299 re sale 14,932.00 11/11/2014 609-49750-425200 99299 re sale 84.00 11/11/2014 609-49750-425400 99452 re sale 1,291.60 11/11/2014 609-49750-425200 99656 re sale 22,950.20 11/11/2014 609-49750-425200 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 2 Invoice No Description Amount Payment Date Acct Number Reference 99656 re sale 228.30 11/11/2014 609-49750-425400 99666 re sale 160.40 11/11/2014 609-49750-425200 99667 re sale -86.60 11/11/2014 609-49750-425200 99716 re sale 1,315.50 11/11/2014 609-49750-425200 99924 re sale 1,012.40 11/11/2014 609-49750-425200 99964 re sale 289.20 11/11/2014 609-49750-425200 99964 re sale - credit ice house 12 can short -16.00 11/11/2014 609-49750-425200 42,161.00Check Total: Vendor:1134 DAY DISTRIBUTING COMPANY Check Sequence: 12 ACH Enabled: True 774841 re sale 1,582.15 11/11/2014 609-49750-425200 774841 re sale 48.00 11/11/2014 609-49750-425400 775735 re sale 1,097.35 11/11/2014 609-49750-425200 775735 re sale 46.10 11/11/2014 609-49750-425400 2,773.60Check Total: Vendor:1151 EARL F ANDERSEN INC Check Sequence: 13 ACH Enabled: False 0106360 (100) 42" yellow post; 50) 42" orange post;(50)18"anch-Pks 1/2 1,430.25 11/11/2014 101-45201-421650 0106360 (100) 42" yellow post; 50) 42" orange post;(50)18"anch-PW 1/2 2,140.25 11/11/2014 101-43120-422600 3,570.50Check Total: Vendor:1153 ECM PUBLISHERS INC Check Sequence: 14 ACH Enabled: True 149654 Fire Fighters honoring - ad #285413 25.00 11/11/2014 609-49754-434990 25.00Check Total: Vendor:2004 TRACY ERGEN Check Sequence: 15 ACH Enabled: True 10/23/14 ACA Seminar Mileage 30.73 11/11/2014 101-41800-433100 30.73Check Total: Vendor:1167 EXTREME BEVERAGE LLC Check Sequence: 16 ACH Enabled: False 264501 re sale 402.00 11/11/2014 609-49750-425400 402.00Check Total: Vendor:2561 FERGUSON WATERWORKS #2516 Check Sequence: 17 ACH Enabled: False 0109017-1 software/equipment for reading Neptune radio reader on water met 7,000.00 11/11/2014 601-49440-453010 0112102 re sale - (4) mtr kit; (4) mrt coup w/ wire; (2) mtr Ecdr, etc 2,191.37 11/11/2014 601-49440-422710 9,191.37Check Total: AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 3 Invoice No Description Amount Payment Date Acct Number Reference Vendor:1192 FRONTIER PRECISION INC Check Sequence: 18 ACH Enabled: False 131443 Laser Receiver Upgrade 269.45 11/11/2014 101-43111-421990 269.45Check Total: Vendor:1206 GRAPE BEGINNINGS INC Check Sequence: 19 ACH Enabled: False 173373 re sale 500.00 11/11/2014 609-49750-425300 173373 freight 11.25 11/11/2014 609-49750-433300 511.25Check Total: Vendor:3770 JASON HANKE Check Sequence: 20 ACH Enabled: True 386850 Fiber xconn- SMF Xcon 275.00 11/11/2014 655-49870-431990 275.00Check Total: Vendor:3859 TAMARA HANSON Check Sequence: 21 ACH Enabled: False 11/4/2014 Farmers Market Token Collection Log 25.00 11/11/2014 226-00000-220100 25.00Check Total: Vendor:1223 HAWKINS INC Check Sequence: 22 ACH Enabled: True 3659918 (8) 150# CYL; 545 gallons hydrofluosilicic acid 3,374.40 11/11/2014 601-49440-421600 3,374.40Check Total: Vendor:3942 HERITAGE SHADE TREE CONSULTANTS INC Check Sequence: 23 ACH Enabled: False 5426 Urban Forestry Consulting 500.00 11/11/2014 101-41910-431990 500.00Check Total: Vendor:3229 JEFF HOGLUND Check Sequence: 24 ACH Enabled: False 011024 (6) 3 inch numbers -PW portion -split 20.00 11/11/2014 101-43120-421990 011024 (3) 3 inch numbers; (2) door logos - Parks portion - split 50.00 11/11/2014 101-45201-422100 70.00Check Total: Vendor:1242 HOLIDAY CREDIT OFFICE Check Sequence: 25 ACH Enabled: True 10182014 Fire Dept Fuel - 9/21/14-10/18/2014 556.30 11/11/2014 101-42200-421200 556.30Check Total: Vendor:1244 HORIZON COMMERCIAL POOL SUPPLY Check Sequence: 26 ACH Enabled: False 141017012 Pool Chmicals & Supplies 1,115.81 11/11/2014 226-45122-421600 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 4 Invoice No Description Amount Payment Date Acct Number Reference 1,115.81Check Total: Vendor:1715 INFRATECH TECHNOLOGIES INC Check Sequence: 27 ACH Enabled: False 1400463 repair of sewer camera 572.33 11/11/2014 602-49490-422100 572.33Check Total: Vendor:3939 JABEZ EXTERIORS INC Check Sequence: 28 ACH Enabled: True Oct 21 2014 Replace (1) siding on damaged wall 8579 Fairhill Ln Monticello 200.00 11/11/2014 656-49877-431990 200.00Check Total: Vendor:3369 JAKE'S EXCAVATING INC Check Sequence: 29 ACH Enabled: True 2590 1 grave - Kemp 400.00 11/11/2014 651-49010-431150 400.00Check Total: Vendor:1259 JJ TAYLOR DISTRIBUTING Check Sequence: 30 ACH Enabled: False 2280562 re sale 439.00 11/11/2014 609-49750-425200 439.00Check Total: Vendor:1261 STEVE JOERG Check Sequence: 31 ACH Enabled: False 10182014 110 miles; parking; meals - Mn Fire Cheifs Conf. St. Cloud 76.81 11/11/2014 101-42200-433100 76.81Check Total: Vendor:1263 JOHNSON BROS WHOLESALE LIQUOR Check Sequence: 32 ACH Enabled: False 2008108 re sale 2,974.11 11/11/2014 609-49750-425100 2008108 freight 38.17 11/11/2014 609-49750-433300 2010169 re sale 851.00 11/11/2014 609-49750-425300 2010169 freight 31.68 11/11/2014 609-49750-433300 2012024 freight 94.08 11/11/2014 609-49750-433300 2012024 re sale 2,542.37 11/11/2014 609-49750-425300 5006120 re sale 1,477.49 11/11/2014 609-49750-425100 5006120 freight 15.84 11/11/2014 609-49750-433300 5006121 re sale 3,624.45 11/11/2014 609-49750-425300 5006121 re sale 108.72 11/11/2014 609-49750-425400 5006121 freight 97.93 11/11/2014 609-49750-433300 5008109 freight 41.05 11/11/2014 609-49750-433300 5008109 re sale 1,636.19 11/11/2014 609-49750-425300 5008110 re sale 26.00 11/11/2014 609-49750-425200 5010168 freight 5.04 11/11/2014 609-49750-433300 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 5 Invoice No Description Amount Payment Date Acct Number Reference 5010168 re sale 304.08 11/11/2014 609-49750-425100 5012023 re sale 1,968.45 11/11/2014 609-49750-425100 5012023 freight 24.84 11/11/2014 609-49750-433300 5012025 re sale 20.99 11/11/2014 609-49750-425200 5012779 re sale 2,978.55 11/11/2014 609-49750-425100 5012779 freight 42.24 11/11/2014 609-49750-433300 5012780 freight 30.60 11/11/2014 609-49750-433300 5012780 re sale 1,701.10 11/11/2014 609-49750-425300 501535 re sale -6.12 11/11/2014 609-49750-425200 501536 re sale -37.23 11/11/2014 609-49750-425300 501537 re sale -37.23 11/11/2014 609-49750-425300 5015741 re sale 565.25 11/11/2014 609-49750-425100 5015741 freight 8.64 11/11/2014 609-49750-433300 5015742 freight 27.36 11/11/2014 609-49750-433300 5015742 re sale 768.45 11/11/2014 609-49750-425300 502073 re-sale -10.66 11/11/2014 609-49750-425300 502074 re-sale -12.41 11/11/2014 609-49750-425300 21,901.02Check Total: Vendor:2641 JOHNSON MATERIALS INC Check Sequence: 33 ACH Enabled: False 1083 (109.99) washed sand 504.34 11/11/2014 101-43125-421700 504.34Check Total: Vendor:1270 KENNEDY AND GRAVEN CHARTERED Check Sequence: 34 ACH Enabled: False MN190-00101 General EDA Matters thru 9/30/14 74.00 11/11/2014 213-46301-430400 MN190-00147 Block 34 TIF District 943.50 11/11/2014 213-46301-430400 1,017.50Check Total: Vendor:3940 KENT KJELLBERG Check Sequence: 35 ACH Enabled: False 07/1/2014 14D003 - PINEVIEW - Reimburse 1 unit park dedication 3,500.00 11/11/2014 229-45202-443990 07/1/2014 14D003 - PINEVIEW - Reimburse 1 unit pathway dedication 248.00 11/11/2014 229-45202-443990 07/1/2014 ZZPINE2 - Expense over escrow, planning file -199.17 11/11/2014 101-00000-220110 3,548.83Check Total: Vendor:1274 KNIFE RIVER CORPORATION-NORTH CENTRAL Check Sequence: 36 ACH Enabled: False 366045 (2) 4000 EXT; (2) 1% Liquid calcium chloride: (2)half winter hea 444.08 11/11/2014 601-49440-431990 444.08Check Total: Vendor:1291 LEAGUE OF MN CITIES INS TRUST Check Sequence: 37 ACH Enabled: False AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 6 Invoice No Description Amount Payment Date Acct Number Reference 10/10/14 LMCIT Claim #C0030897 date of loss 4/18/14 1,000.00 11/11/2014 101-43110-436990 1,000.00Check Total: Vendor:1300 DOUGLAS WILLIAM LYSENG Check Sequence: 38 ACH Enabled: True 1270 IT Supplies (1/1/14-5/31/14) 929.06 11/11/2014 702-00000-421990 1270 IT Services (1/1/14-5/31/14) 15,859.22 11/11/2014 702-00000-431990 16,788.28Check Total: Vendor:1303 M AMUNDSON LLP Check Sequence: 39 ACH Enabled: True 183907 re sale 264.83 11/11/2014 609-49750-425400 183907 re sale 818.73 11/11/2014 609-49750-425500 1,083.56Check Total: Vendor:1229 MAJIRS ADVERTISING & DESIGN INC Check Sequence: 40 ACH Enabled: True 1113 Business Cards for Grant Sala (250) 60.75 11/11/2014 101-42400-421990 1119 (9) FNM handbk - creative fee; (50) Handbooks 1,309.55 11/11/2014 655-49870-431990 1,370.30Check Total: Vendor:3745 MANSFIELD OIL COMPANY Check Sequence: 41 ACH Enabled: True 982276 550 gallons unleaded 1,546.94 11/11/2014 101-43120-421200 985964 800 gal Diesel 2,827.84 11/11/2014 101-43120-421200 4,374.78Check Total: Vendor:1314 MCDOWALL COMPANY Check Sequence: 42 ACH Enabled: False 221042 9/22/14 - cooler repair labor & materials 683.87 11/11/2014 609-49754-440440 683.87Check Total: Vendor:1318 JONATHAN CALEB MELLBERG Check Sequence: 43 ACH Enabled: True 10/28/14 City Council Meeting Recording 10/27/14 85.00 11/11/2014 101-41110-431990 10/28/14 Planning Commissionl Meeting Recording 10/27/14 80.00 11/11/2014 101-41910-431990 165.00Check Total: Vendor:3943 MEYER BORGMAN JOHNSON Check Sequence: 44 ACH Enabled: False 14.782.0-1 9/16-10/15/14 Services - Building Evaluations East Broadway (3) 550.00 11/11/2014 213-46301-430300 550.00Check Total: Vendor:1330 CITY OF MINNEAPOLIS Check Sequence: 45 ACH Enabled: True AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 7 Invoice No Description Amount Payment Date Acct Number Reference 400413005342 APS Transaction Fees - September 2014 - (90) transactions 143.10 11/11/2014 101-42100-431990 143.10Check Total: Vendor:1629 MP NEXLEVEL LLC Check Sequence: 46 ACH Enabled: True 114994 prep fiber into Ped, splice; splicing material 729.36 11/11/2014 656-49877-431990 729.36Check Total: Vendor:1390 MTI DISTRIBUTING INC Check Sequence: 47 ACH Enabled: False 989204-00 (2) Wheel ASM & (2) screws 171.93 11/11/2014 226-45122-440440 171.93Check Total: Vendor:2072 NATIONAL TELCO TELEVISION CONSORTIUM Check Sequence: 48 ACH Enabled: True 2615-2 NTTC - October 2014 remaining amount 1,127.13 11/11/2014 655-49860-430920 1,127.13Check Total: Vendor:1913 NEW FRANCE WINE Check Sequence: 49 ACH Enabled: False 94472 re ale 606.86 11/11/2014 609-49750-425300 94472 freight 15.00 11/11/2014 609-49750-433300 621.86Check Total: Vendor:2134 NFL NETWORK Check Sequence: 50 ACH Enabled: True 093014 NFL Network - Sept 2014 665.28 11/11/2014 655-49860-430920 665.28Check Total: Vendor:1412 OMANN BROTHERS INC Check Sequence: 51 ACH Enabled: False 11329 1.99 AC Fine Mix 138.68 11/11/2014 101-43120-422400 11331 7.99 SPWEA240B 435.69 11/11/2014 601-49440-422700 11361 (12) LV4 Mix 672.76 11/11/2014 601-49440-431990 11363 2.03 AC Fine Mix 141.47 11/11/2014 101-43120-422400 1,388.60Check Total: Vendor:1419 PAN O GOLD CO ST CLOUD Check Sequence: 52 ACH Enabled: True 4429411 Resale 31.32 11/11/2014 226-45127-425410 31.32Check Total: Vendor:3552 PARKS AND TRAILS COUNCIL OF MINNESOTA Check Sequence: 53 ACH Enabled: False 10/28/14 Bertram Lakes Trail Run - Net Proceeds 2,206.42 11/11/2014 226-45127-434900 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 8 Invoice No Description Amount Payment Date Acct Number Reference 2,206.42Check Total: Vendor:1273 PAUSTIS & SONS WINE CO Check Sequence: 54 ACH Enabled: False 8472420 re sale 1,116.00 11/11/2014 609-49750-425300 8472420 freight 15.00 11/11/2014 609-49750-433300 1,131.00Check Total: Vendor:1427 PHILLIPS WINE & SPIRITS CO Check Sequence: 55 ACH Enabled: False 201029 re sale -23.20 11/11/2014 609-49750-425100 201029 freight -0.48 11/11/2014 609-49750-433300 201490 re-sale -96.00 11/11/2014 609-49750-425100 201490 freight -1.44 11/11/2014 609-49750-433300 2684850 re sale 3,270.98 11/11/2014 609-49750-425100 2684850 freight 43.21 11/11/2014 609-49750-433300 2684851 freight 14.40 11/11/2014 609-49750-433300 2684851 re sale 473.50 11/11/2014 609-49750-425300 2686169 re sale 836.15 11/11/2014 609-49750-425100 2686169 freight 11.52 11/11/2014 609-49750-433300 2686170 freight 22.08 11/11/2014 609-49750-433300 2686170 re sale 56.00 11/11/2014 609-49750-425400 2686170 re sale 683.07 11/11/2014 609-49750-425300 2687584 re sale 1,298.67 11/11/2014 609-49750-425100 2687584 freight 29.28 11/11/2014 609-49750-433300 2687585 freight 2.88 11/11/2014 609-49750-433300 2687585 re sale 156.00 11/11/2014 609-49750-425300 2688776 re sale 1,160.00 11/11/2014 609-49750-425300 2688776 freight 18.72 11/11/2014 609-49750-433300 2689267 re sale 1,620.45 11/11/2014 609-49750-425100 2689267 freight 17.42 11/11/2014 609-49750-433300 2689268 freight 15.84 11/11/2014 609-49750-433300 2689268 re sale 443.90 11/11/2014 609-49750-425300 2691285 re sale 6,948.92 11/11/2014 609-49750-425100 2691285 freight 118.10 11/11/2014 609-49750-433300 2691286 freight 2.88 11/11/2014 609-49750-433300 2691286 re sale 320.00 11/11/2014 609-49750-425300 17,442.85Check Total: Vendor:1852 POWER & TEL Check Sequence: 56 ACH Enabled: True 5677837 (5) dongle wifi 3x3 adaptor 263.33 11/11/2014 656-49877-421990 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 9 Invoice No Description Amount Payment Date Acct Number Reference 263.33Check Total: Vendor:3686 RANDYS SANITATION INC Check Sequence: 57 ACH Enabled: True 1-209488-3 November 2014 Shredding 15.17 11/11/2014 655-49870-431990 1-209489-1 November 2014 Shredding 15.17 11/11/2014 217-41990-431990 1-209490-9 November 2014 Shredding 15.17 11/11/2014 101-41940-431990 45.51Check Total: Vendor:3941 LISA REYNOLDS Check Sequence: 58 ACH Enabled: False 11032014 performer to Wine Tasting 2014 300.00 11/11/2014 609-49754-431990 300.00Check Total: Vendor:1470 RUSSELL SECURITY RESOURCE INC Check Sequence: 59 ACH Enabled: True A24255 Replace motor on handicap door, south entrance 1,800.00 11/11/2014 226-45122-440100 1,800.00Check Total: Vendor:1474 PATRICIA A SALZWEDEL Check Sequence: 60 ACH Enabled: True 10/27/2014 Semi Monthly Contract Payment 1,593.75 11/11/2014 101-42700-431200 1,593.75Check Total: Vendor:3827 SAMBATEK Check Sequence: 61 ACH Enabled: True 03898 Code Updates, Zoning Map & General Planning 477.00 11/11/2014 101-41940-431990 477.00Check Total: Vendor:1476 SCHLUENDER CONSTRUCTION INC Check Sequence: 62 ACH Enabled: False 20349 Backhoe for water main break- Meadow Lane 2,200.00 11/11/2014 601-49440-431990 2,200.00Check Total: Vendor:3751 CHRIS SCHYMA Check Sequence: 63 ACH Enabled: False 10/25/14 Farmers Market Token Collection Log 7.00 11/11/2014 226-00000-220100 7.00Check Total: Vendor:2443 SECURITAS SECURITY SERVICES USA INC Check Sequence: 64 ACH Enabled: False W4560481 10/11 Utev Wedding R2117 168.00 11/11/2014 226-45122-431992 W4566954 10/18 Koch Reception R2136 168.00 11/11/2014 226-45122-431992 336.00Check Total: AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 10 Invoice No Description Amount Payment Date Acct Number Reference Vendor:3900 SHAFER CONTRACTING Check Sequence: 65 ACH Enabled: False 10/27/14 Water Use Permit Refund -950.82 11/11/2014 601-49440-371100 10/27/14 Water Use Permit Refund -100.00 11/11/2014 601-49440-371120 10/27/14 Water Use Permit Refund -65.37 11/11/2014 601-00000-208100 10/27/14 Water Use Permit Refund -6.88 11/11/2014 601-00000-208100 10/27/14 Water Use Permit Refund 1,500.00 11/11/2014 601-00000-220111 376.93Check Total: Vendor:2497 SHERBURNE WRIGHT CABLE COMMISSION Check Sequence: 66 ACH Enabled: True 10/24/2014 CableFranchise Fees FNM - Qtr 3 2014 7,170.37 11/11/2014 655-00000-208300 7,170.37Check Total: Vendor:1490 CYNTHIA R SIMPSON Check Sequence: 67 ACH Enabled: False 894123 Cleaning Fire Dept. October 2014 100.00 11/11/2014 101-42200-431100 100.00Check Total: Vendor:3309 SOUTHERN WINE & SPIRITS OF MINNESOTA Check Sequence: 68 ACH Enabled: False 1216814 freight 6.75 11/11/2014 609-49750-433300 1216814 re sale 403.11 11/11/2014 609-49750-425100 1216815 re sale 1,128.00 11/11/2014 609-49750-425300 1216815 freight 14.85 11/11/2014 609-49750-433300 1219410 re sale 358.70 11/11/2014 609-49750-425100 1219410 freight 2.70 11/11/2014 609-49750-433300 9044401 re-sale liquor -14.16 11/11/2014 609-49750-425100 9044847 re-sale credit -10.62 11/11/2014 609-49750-425500 1,889.33Check Total: Vendor:3251 STRATEGIC INSIGHTS INC Check Sequence: 69 ACH Enabled: False 165 Capital Planning software; 1 user license; valid until 1/1/16 675.00 11/11/2014 101-41520-421990 675.00Check Total: Vendor:1522 THORPE DISTRIBUTING COMPANY Check Sequence: 70 ACH Enabled: True 855708 re sale 6,768.78 11/11/2014 609-49750-425200 857087 re sale 25.10 11/11/2014 609-49750-425300 6,793.88Check Total: Vendor:1550 VEOLIA WATER N AM OPERATING SERV LLC VEOLIA WATER N AM OPERATIONS INC Check Sequence: 71 ACH Enabled: False 42688 December 2014 WWTP Operation & Maintenance 68,300.00 11/11/2014 602-49480-430800 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 11 Invoice No Description Amount Payment Date Acct Number Reference 68,300.00Check Total: Vendor:1552 VIKING COCA COLA BOTTLING CO Check Sequence: 72 ACH Enabled: True 1472121 re sale 223.70 11/11/2014 609-49750-425400 1476885 re sale 234.80 11/11/2014 609-49750-425400 458.50Check Total: Vendor:1684 VINOCOPIA Check Sequence: 73 ACH Enabled: True 109532 re sale 144.00 11/11/2014 609-49750-425300 109532 freight 12.50 11/11/2014 609-49750-433300 109533 freight 12.50 11/11/2014 609-49750-433300 109533 re sale 208.00 11/11/2014 609-49750-425300 109533 re sale 382.75 11/11/2014 609-49750-425100 110123 re sale 139.00 11/11/2014 609-49750-425100 110123 re sale 196.00 11/11/2014 609-49750-425500 110123 re sale 21.95 11/11/2014 609-49750-425400 110123 freight 12.00 11/11/2014 609-49750-433300 1,128.70Check Total: Vendor:3796 W.S. DARLEY & CO Check Sequence: 74 ACH Enabled: False 17161657 (3) fire suits Cargil sponsored team. Cargil will reimburse 2,899.93 11/11/2014 101-42200-115030 2,899.93Check Total: Vendor:1863 WEST METRO BUICK-PONTIAC-GMC INC Check Sequence: 75 ACH Enabled: False 173272 #5 - replace steering rack; tie rod ends; wheel alignment 1,356.96 11/11/2014 101-42200-440500 1,356.96Check Total: Vendor:1572 THE WINE COMPANY Check Sequence: 76 ACH Enabled: True 374382 re sale 200.00 11/11/2014 609-49750-425300 374382 freight 5.00 11/11/2014 609-49750-433300 205.00Check Total: Vendor:1573 WINE MERCHANTS INC Check Sequence: 77 ACH Enabled: False 7002819 re sale 82.50 11/11/2014 609-49750-425300 7002819 freight 1.44 11/11/2014 609-49750-433300 7003775 re sale 1,316.00 11/11/2014 609-49750-425300 7003775 freight 18.00 11/11/2014 609-49750-433300 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 12 Invoice No Description Amount Payment Date Acct Number Reference 1,417.94Check Total: Vendor:1209 WIRTZ BEVERAGE MINNESOTA WINE & SPIRITS Check Sequence: 78 ACH Enabled: False 1080244227 re sale 2,522.87 11/11/2014 609-49750-425100 1080244227 re sale 408.00 11/11/2014 609-49750-425300 1080244227 freight 31.37 11/11/2014 609-49750-433300 2080060630 re sale -208.40 11/11/2014 609-49750-425100 2080060639 re sale -63.00 11/11/2014 609-49750-425100 2080060644 re sale -120.01 11/11/2014 609-49750-425100 2080060651 re sale -106.92 11/11/2014 609-49750-425100 2,463.91Check Total: Vendor:1577 WRIGHT CO AUDITOR-TREAS - ACH Check Sequence: 79 ACH Enabled: True November 2014 November 2014 91,250.00 11/11/2014 101-42100-430500 91,250.00Check Total: Vendor:1579 WRIGHT COUNTY HIGHWAY DEPARTMENT Check Sequence: 80 ACH Enabled: False 7392 348.75 salt 28,560.88 11/11/2014 101-43125-421700 28,560.88Check Total: Vendor:2810 WRIGHT COUNTY HUMAN SERVICES Check Sequence: 81 ACH Enabled: False 10/10/14 (24) Flu; (8) TDAP; (3) HBV Immunizations Fire Dept 1,215.00 11/11/2014 101-42200-431990 10/10/14 ((2) Hepatitis B immunizations MT & SW 90.00 11/11/2014 602-49490-431990 1,305.00Check Total: Total for Check Run: Total of Number of Checks: 374,641.15 81 AP-Computer Check Proof List by Vendor (11/05/2014 - 11:32 AM)Page 13 The Preceding list of bills payable was reviewed and approved for payment. Date:11/10/14 Approved by:______________________________________ Mayor Clint Herbst CityCouncilAgenda:11/10/2014 1 5B.ConsiderationofapprovingnewhiresanddeparturesforCitydepartments (TE) A.REFERENCEANDBACKGROUND: TheCouncilisaskedtoratifythehiringanddeparturesofemployeesthathaveoccurred recentlyinthedepartmentslisted.ItisrecommendedthattheCouncilofficiallyratifythe hiring/departureofalllistedemployeesincludingpart-timeandseasonalworkers. A1.BudgetImpact:(positionsaregenerallyincludedinbudget) A2.StaffWorkLoadImpact:Ifnewpositions,theremaybesometraining involved.Ifterminatedpositions,existingstaffwouldpickupthosehours,as needed,untilreplaced. B.ALTERNATIVEACTIONS: 1.Motiontoratifythehire/departuresoftheemployeesasidentifiedontheattached list. 2.Motiontodenytherecommendedhiresanddepartures. C.RECOMMENDATION: BystatutetheCityCouncilhastheauthoritytoapproveallhires/departures.Citystaff recommendsAlternative#1,fortheCounciltoapprovethehiresand/ordeparturesas listed. D.SUPPORTINGDATA: Listofnew/terminatedemployees Name Title Department Hire Date Class Emily Sabel Guest Service 2 MCC 10/24/14 PT Tess Oliverius Guest Service 2 MCC 10/25/14 PT Elayna Taylor Guest Service 2 MCC 10/25/14 PT April Scheef Custodian MCC 10/28/2014 PT Richard Moore Custodian MCC 11/6/2014 PT Name Reason Department Last Day Class Shanna Grambart Voluntary MCC 7/31/14 PT Clayton Schuster Voluntary MCC 9/30/14 PT Kayla Lamar Voluntary Liquor Store 10/17/14 PT Jerod Ruotsalainen Voluntary Water Dept.10/22/14 FT Mark Schaefer Voluntary MCC 10/23/14 PT NEW EMPLOYEES TERMINATING EMPLOYEES New Hire and Terms City Council 2014: 11/5/2014 CityCouncilAgenda:11/10/14 1 5C.ConsiderationofadoptingResolution#2014-112toacceptcontributionfrom UptownEyeCarefortheCommunityCenterHalloweenKiddieParade (KB) A.REFERENCEANDBACKGROUND: UptownEyeCareiscontributing$250asasponsoroftheHalloweenKiddieParadetogo totheCommunityCenter. TheCommunityCenterusesthismoneyfordecorationsandalsoforprizestobegiven outattheactivitiesandgamesattheevent. A1.BudgetImpact:Themoneywillbeusedtocoverthecostofthesuppliesneeded fortheHalloweenKiddieParade. A2.StaffWorkloadImpact:Staffaccountsforandreconcilesdonationscontributed throughtheCity.Theyalsosearchforandpurchasethesuppliesthatthe sponsorshippaysfor. B.ALTERNATIVEACTIONS: 1.Motiontoapprovethecontributionandauthorizeuseoffundsasspecified. 2.Motiontonotapprovethecontributionandreturnthefundstothedonors. C.STAFFRECOMMENDATION: Staffrecommendationistoadopttheresolutionacceptingthecontributions. D.SUPPORTINGDATA: Resolution#2014-112 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-112 RESOLUTIONAPPROVINGCONTRIBUTIONS WHEREAS,theCityofMonticelloisgenerallyauthorizedtoaccept contributionsofrealandpersonalpropertypursuanttoMinnesotaStatutesSections 465.03and465.04forthebenefitofitscitizensandisspecificallyauthorizedtomaintain suchpropertyforthebenefitofitscitizensinaccordancewiththetermsprescribedbythe donor.SaidgiftsmaybelimitedunderprovisionsofMNStatutesSection471.895. WHEREAS,thefollowingpersonsandorentitieshaveofferedtocontribute contributionsorgiftstotheCityaslisted: DONOR/ENTITYDESCRIPTIONVALUE UptownEyeCareCash$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 UptownEyeCareCommunityCenterSponsorKiddieParade AdoptedbytheCityCouncilofMonticellothis10thdayofNovember,2014. CITYOFMONTICELLO ______________________________ ClintHerbst,Mayor ATTEST: ______________________________________ JeffO’Neill,CityAdministrator CouncilAgenda:10/22/14 1 5D.ConsiderationofapprovingtheWasteWaterTreatmentFacilitycontractamounts withVeoliaWaterfor2015 (WO/JO) A.REFERENCEANDBACKGROUND: InJanuary2011,thecityenteredintoanall-inclusive,five-yearoperationsand maintenanceservicecontractwithVeolia.Veolia’sfirstyearannualfeewassetby contract.Theannualfeeincludes:a)maintenanceandrepair,b)gas,c)electricity,d) polymer,e)professionalservices.Items‘a’through‘d’haveannuallimits,butthecity paystheactualamountthroughatrue-uppayment.Thetrue-uppaymentswere$72,913, $61,476,$94,610for2011,2012,and2013,respectively.Theselargepaymentsindicate thelimitsneedtoberaisedsignificantly. Afterthefirstyear,theannualfeeshallbenegotiatedoritdefaultstotheapplicationof procedures(formula)inthecontract.Inyearspast,thePublicWorksDirectorappliedthe defaultprovisionsandornegotiatedthecontractwhenexaminingtheneedforan adjustmentwithchangesthenmadeadministratively.Inreviewingthecontract,Wayne ObergobservedthattheCityCouncilneedstotakeformalactionwhensettingrenewal rates.Veoliahaspresentedaproposed2015annualfeethatsignificantlyraisesthelimits onitemssubjecttothetrue-uppaymentandslightlylowerstheamountforprofessional services.Newlandfillandhaulingfeesweremajorcontributorstothehigher reimbursablelimit. ScheduleofReimbursables(True-uplimits) YearReimbursableChange$Change% 2011228,000.00$ 2012228,000.00$-$0.00% 2013229,500.00$1,500.00$0.65% 2014234,504.00$5,004.00$2.13% 2015375,516.00$141,012.00$37.55% ScheduleofChargesforServices YearServiceChange$Change% 2011522,281.04$ 2012544,788.96$22,507.92$4.13% 2013562,361.04$17,572.08$3.12% 2014585,096.00$22,734.96$3.89% 2015582,360.00$(2,736.00)$-0.47% ScheduleofAnnualCostswithTrue-ups YearServiceReimbursableTrue-Up*TotalChange 2011522,281.04$228,000.00$72,913.15823,194.19$ 2012544,788.96228,000.0061,476.13834,265.091.3% 2013562,361.04229,500.0094,609.64886,470.686.3% 2014585,096.00234,504.00141,012.00960,612.008.4% 2015582,360.00375,516.00-957,876.00-0.3% *The2014True-upisestimatedatthechangeinthereimbursablelimitfrom2014to2015. CouncilAgenda:10/22/14 2 A1.BudgetImpact:Lowerchargeforservicesandahigherchargeforreimbursable itemsasdetailedabove. A2.StaffWorkloadImpact:Minimal. A3.LegalReview:Notapplicable. B.ALTERNATIVEACTIONS: 1.MotiontoapprovetheWWTFcontractamountsfor2015withVeoliaWater compensationssetat$957,876. 2.Motiontonotapprovethe2015Veoliacompensationsatthistime. C.STAFFRECOMMENDATION: CityStaffrecommendsAlternative#1. D.SUPPORTINGDATA: ProposalfromVeoliaWater CityCouncilAgenda:11/10/14 1 5E.ConsiderationofadoptingResolution#2014-114amendingtheConditionalUse PermitforDevelopmentStageandFinalStagePlannedUnitDevelopment(PUD) forSunsetPonds2nd Addition.Applicant:Jensen,Donald/SunsetPonds,LLC (NAC) A.REFERENCE&BACKGROUND: Property:Lots6,7,9and10Block3,SunsetPonds2ndAddition PlanningCaseNumber:2014–048 Request(s):PlannedUnitDevelopmentAmendmentallowingfor modificationstorequired20%frontbuildingmaterials requirement,garagedoorwidth,5’garageforward regulation,andoverallgaragesizerelativetohome footprint. DeadlineforDecision:December19,2014 LandUseDesignation:PlacestoLive ZoningDesignation:T-N(formerlyR-2A),SunsetPondsPlannedUnit Development Thepurposeofthe"T-N,"Thepurposeofthe"T-N" traditionalneighborhoodresidentialdistrictistoprovide formediumdensity,singlefamily,detachedresidential dwellingunitsanddirectlyrelatedcomplementaryuses. CurrentSiteUse:Thefourlotsproposedforamendmentarevacant residentialproperties. SurroundingLandUses: North:Residential,includingtownshipandR-1 East:Residential,MonticelloTownship South:Residential,R-2A West:Residential,R-2A Analysis: Inthefallof2012,theCityapprovedaPlannedUnitDevelopment(PUD)amendmentto theSunsetPonds2nd Additiontoallowlimitedlotandbuildingflexibilitiesforcertain lotswithinthesubdivision.Thesubjectsubdivisioniscomprisedof35lots,31ofwhich weregrantedlotandbuildingflexibilitiesviathePUD.Ofthe35lotsinthesubdivision, nearlyonehalfarecurrentlydeveloped. CityCouncilAgenda:11/10/14 2 Atthetimeofapplicationprocessing,itwasanticipatedthatalimitedmarketforstandard singlefamilyresidentiallotsexisted.Asaresult,Lots,6,7,9and10,Block3were reservedforthatmarketandexcludedfromthe2012PUDamendmentapplication.The applicanthasindicatedthat,since2012,amarketforthestandardsinglefamilylots withinthesubjectsubdivisionhasnotbeendemonstrated.Asaresult,theapplicant proposestoamendthePUDtoallowthepreviouslyexcludedlots(Lots6,7,9and10, Block3)tobegrantedthesamelotandbuildingflexibilitiescurrentlyaffordedthe balanceofthelotswithinthesubdivision. LotCharacteristics.Lots6,7,9and10,Block3arelocatedintheextremenortheast cornerofthesubdivision.Theorientationofthebuildingoneachofthelotsisproposed toremainunchangedfromtheprevioussubmittal.Generallyconsistentwithotherlotsin thesubdivision,thelotareasofthefourlotsisasfollows: Lot6:7,200squarefeet Lot7:9,400squarefeet Lot9:10,650squarefeet Lot10:10,700squarefeet PreviousPUDApproval.WiththeexceptionofLots6,7,9and10,Block3,the followingflexibilitiesweregrantedtolotswithintheSunsetPonds2nd Additionaspartof the2012PUDapproval: FrontBuildingFacades.TheCityCoderequiresthatnolessthan20%ofthefront buildingfaçadeofanystructureintheR-2Ashallbecoveredwithbrickorstone. Theapplicantwasgrantedflexibilitytoallowforstoneveneers,shakesidingor similarenhancedstylesofaccentcolors.Suchflexibilitywasgrantedsubjecttothe following: Stoneveneermustbeprovidedonboththegaragefaceareaandporticoas shownonsubmittedplans. Shakesidingshallnotbepermittedinlieuofstoneveneer,butonlyto completetherequired20%requirement. Anycornerlotmustincludeadditionalstoneorbrickonthesecondaryright- of-wayelevationtobettermeettheintentofthe20%“frontbuildingfaçade” requirement. GarageDoors.TheCityCoderequiresthatfromsidebuildinglinetosidebuilding lineofanysinglefamilystructure,nomorethan50%ofsuchbuildingwidthshall consistofgaragedoorsthatfacethestreet.Theapplicantwasgrantedflexibilityfrom suchrequirementprovidedthatexteriordesignenhancementsbeprovidedtooff-set the“garage-forward”appearance.Theseenhancementsincludethefollowing: Additionalgablesandvariationinbuildingmaterialsandcolors. CityCouncilAgenda:11/10/14 3 Finishedlivingspaceabovethegarage,cantileveredslightlybeyondthe garagebuildingline,whichcreatesavisualbreakalongthefrontbuilding planeofthehomes. Garagedoorswhichincluderaisedpanels(andmayincludewindowlights). GarageSetbacks.TheCityCoderequiresthatnoportionofanygaragespacemaybe morethanfivefeetclosertothestreetthanthefrontbuildinglineoftheprincipal singlefamilyuse.Theapplicantwasgrantedflexibilityfromsuchgaragesetback requirementsubjecttothefollowing: Cantileveredlivingareasbeplacedoverthegarage,effectivelycreatingthe effectofsinglefamilylivingspaceclosertothestreetthanthegarage. Garagedoorsmustincluderaisedpanels(andmayincludewindowlights). AccessoryStorageSpace.TheCityCoderequiresthat,exceptbyconditionaluse permit,thecombinationofattachedgarageanddetachedaccessorybuildingmustnot exceedthegrosssquarefootageofthebuildingfootprintoftheprincipaluse. Ultimately,thePlanningCommissionrecommendedandtheCityCouncilapprovedthe requestedPUDsubjecttothefollowingspecificconditions: 1.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumfinishedsquarefootagestandards. 2.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumsetbackrequirements. 3.Stoneorbrickveneershallbeonboththegaragefaceareaandporticoasshown ontheprovidedplansdatedOctober6,2012. 4.Shakeveneershallnotbepermittedasanexclusivetreatmentinlieuofstoneor brickveneer,andshallonlybeusedtocomplimentthebrickorstoneinmeeting therequired20percentasshownontheplans. 5.Anycornerlotshallincludeadditionalstoneorbrickonthesecondaryright-of- wayelevationtobettermeettheintentofthe20percent“frontbuildingfaçade” requirement. 6.Allgaragedoorsshallincluderaisedpanelsandmayincludewindowlights. 7.Nohomesonabuttingpropertiesmaybeconstructedoftheexactsameexterior homedesign. 8.TheapplicantenterintoanagreementforamendmenttoPlannedUnit DevelopmentforSunsetPonds2nd Addition. PUDAmendmentCriteria.InconsideringwhethertoamendanexistingPUD,theCity mustconsiderwhethertheproposedamendmentaffectsthePUD’sabilitytocontinueto achievePUDgoalsoutlinedbyCode.Specifically,adeterminationshouldbemade whethertheamendmentsupportshigherstandardsofsiteandbuildingdesign,efficient useofland,amoredesirableenvironmentthanpossiblethroughstrictapplicationofthe zoningregulations,andinnovativeresidentialdevelopmenthousingoptionsatalllevels. CityCouncilAgenda:11/10/14 4 Approvalofthe2012PUDdoes,tosomedegree,establishthattherequestedlotand buildingstandardflexibilitiessatisfytheintentofthePUD. TherequestedPUDamendmentisaresultofachangingmarketconditionapplicableto thesubjectlots.Theapplicantbelievesthatcurrentmarketconditionshaveresultedin limitedinterestinstandardsinglefamilylotssuchaspresentlyallowedandthatthe allowancecertaindesignflexibilities(asallowedforotherlotswithinthesubdivision) willincreasebuyerinterest. Asinthecaseoftheprevious2012PUDamendmentapproval,theproposedhomeswill meettheminimumhomearearequirementoftheunderlyingzoningdistrictbutaretobe organizedinamannernotpresentlyallowed. AlsotobenotedisthatlandscapinguponthesubjectlotswillmeetminimumZoning Ordinancerequirementsandwillbesimilartoothercompliantlotswithinthe subdivision. Inthisregard,itisnotanticipatedthatapprovaloftheamendmentwillnegatively impactsthehealthandsafetyoftheCity. PlanningCommissionRecommendation OnWednesday,November5,2014,thePlanningCommissionconductedapublichearing toconsiderthePUDamendmentrequest.Staffandtheapplicantmadepresentations regardingtherequest.Therewasnoonepresentintheaudiencespeakingtotheitem. TheCommissiondiscussedtheitem,andspecificallynotedthattheproposalwouldbe consistentwithotherapprovalsinthesubdivision,andthatthebuildingsconstructed underthoseregulationshaveresultedinanattractiveneighborhood.Theyfurthernoted thatprovidingthesamerequirementsforallnewstructuresinthePUDwouldbemore consistentthanthecurrentapproach.TheCommissionfurtherconfirmedwiththe applicantthathewasawareoftheconditionsofapproval,andthathehadnoissueswith thoseconditions. Followingthehearing,theCommissionvotedunanimously(3–0)torecommendapproval ofthePUDAmendmentasproposed,withtheconditionsfromExhibitZofthestaff report. B.ALTERNATIVEACTIONS: ThePlanningCommissionrecommendsAlternative#1below. 1.MotiontoadoptResolution#2014–114approvinganamendmenttoConditional UsePermitforPlannedUnitDevelopmentasrelatedtoresidentialdesign CityCouncilAgenda:11/10/14 5 standardsforT-N(Single-Family)Districtfor Lots6,7,9and10,Block3,Sunset Ponds2ndAddition,subjecttotheconditionsoutlinedinExhibitZandbasedona findingthattheproposedamendmentcontinuestoachievethegoalsofthe originalPUDandisconsistentwiththelong-rangegoalsforresidential developmentasoutlinedintheComprehensivePlan. 2.MotiontodenyResolution#2014-114foramendmentoftheConditionalUse PermitforPUD,basedonfindingstobemadebytheCouncil. C.STAFFRECOMMENDATION: In2012,thePlanningCommissionandCityCouncildeterminedthattherequestedlot andbuildingstandardflexibilitiesprovidedanacceptablebalancebetweenensuringthe constructionofhomeswhichblendintotheexistingSunsetPondsneighborhoodandthe applicant’sdesireforamarketablehomeproduct. RecognizingthatLots6,7,9and10ofthesubdivisionareinternaltothedevelopment, theinfillingofahousingproductwhichissimilarinsizeandcharactertoneighboring homesisexpectedtobecompatiblewithsurroundinguses.Inthisregard,staff recommendsAlternative#1,thattheCityCouncilapprovetherequestedPUD amendmentsubjecttothesameconditionsimposedaspartofthe2012amendment approval. D.SUPPORTINGDATA: ExhibitZ–ConditionsofApproval A.Resolution#2014-114 B.AerialParcelImage C.Application D.NarrativeInformation E.AmendmentText F.PlatMap G.AerialofNeighborhood H.LotOrientation/SurveyExample I.HomeDesign–ImageIllustrations J.HomeDesign–ExteriorOptions K.HomePlans L.NeighborhoodHomeImages CityCouncilAgenda:11/10/14 6 ExhibitZ SunsetPonds2nd AdditionAmendmenttoPUD (Lots6,7,9and10,Block3) October,2014 1.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumfinishedsquarefootagestandards. 2.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumsetbackrequirements. 3.Stoneorbrickveneershallbeonboththegaragefaceareaandporticoasshown ontheprovidedplansdatedOctober6,2012. 4.Shakeveneershallnotbepermittedasanexclusivetreatmentinlieuofstoneor brickveneer,andshallonlybeusedtocomplimentthebrickorstoneinmeeting therequired20percentasshownontheplans. 5.Anycornerlotshallincludeadditionalstoneorbrickonthesecondaryright-of- wayelevationtobettermeettheintentofthe20percent“frontbuildingfaçade” requirement. 6.Allgaragedoorsshallincluderaisedpanelsandmayincludewindowlights. 7.Nohomesonabuttingpropertiesmaybeconstructedoftheexactsameexterior homedesign. 8.TheapplicantenterintoanagreementforamendmenttoPlannedUnit DevelopmentforSunsetPonds2nd Addition. CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-114 APPROVINGANAMENDMENTTOACONDITIONALUSEPERMITFOR PLANNEDUNITDEVELOPMENTREVISINGREQUIREMENTSFORBUILDING DESIGNINSUNSETPONDSSECONDADDITION WHEREAS,DonaldJensen,onbehalfofSunsetPondsLLC,hassubmittedanapplication foranamendmenttoaConditionalUsePermit(CUP)foraPlannedUnitDevelopment (PUD)revisingcertainbuildingrequirementsforconstructiononthefollowingparcels: Lots6,7,9and10,Block3,SunsetPonds2nd Addition;and WHEREAS,thesubjectparcelsarepartofasubdivisioninwhichallothernearbyparcels hadpreviouslyreceivedapprovalsforsimilaramendments;and WHEREAS,thedevelopmentofthePUDsubdivisionhasproceededsuccessfullyonother lots,consistentwiththeintentofthePUDapprovals;and WHEREAS,theamendmentfortheproposedlotswillfurtherthosePUDobjectives;and WHEREAS,thePlanningCommissionheldapublichearingonNovember5th,2014onthe applicationandtheapplicantandmembersofthepublicwereprovidedtheopportunityto presentinformationtothePlanningCommission;and WHEREAS,thePlanningCommissionoftheCityofMonticelloadoptedResolution#2014- 111statingthefollowingFindingsofFactintheirrecommendationofapproval: 1.TheproposedamendmentisconsistentwiththeoriginalPUDintentfortheproject. 2.Theproposedchangestothehomeswillallowtheproposedbuildingsonthe proposedlotstobecompatiblewithothersintheimmediateneighborhood. 3.TheproposedamendmentisconsistentwiththegoalsoftheCity’sComprehensive Plan. 4.Thesiteandbuildingplansmeettheperformancestandardsintheordinanceforthe developmentofasinglefamilyhomeintheapplicablezoningdistrict,subjecttothe conditionsoutlinedbelow. NOW,THEREFORE,BEITRESOLVED,bytheCityCounciloftheCityofMonticello, MinnesotathattheproposedamendmenttotheSunsetPondsPUDisherebyapproved subjecttothefollowingconditions: 1.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumfinishedsquarefootagestandards. 2.TheplansforthebuildingpermitshallcomplywiththeZoningOrdinance minimumsetbackrequirements. 3.Stoneorbrickveneershallbeonboththegaragefaceareaandporticoas shownontheprovidedplansdatedOctober6,2012. 4.Shakeveneershallnotbepermittedasanexclusivetreatmentinlieuofstone orbrickveneer,andshallonlybeusedtocomplimentthebrickorstonein meetingtherequired20percentasshownontheplans. 5.Anycornerlotshallincludeadditionalstoneorbrickonthesecondaryright- of-wayelevationtobettermeettheintentofthe20percent“frontbuilding façade”requirement. 6.Allgaragedoorsshallincluderaisedpanelsandmayincludewindowlights. 7.Nohomesonabuttingpropertiesmaybeconstructedoftheexactsame exteriorhomedesign. 8.TheapplicantenterintoanagreementforamendmenttoPlannedUnit DevelopmentforSunsetPonds2nd Addition. ADOPTEDBY theMonticelloCityCouncilthis10thdayofNovember,2014. CITYOFMONTICELLO _______________________________ ClintHerbst,Mayor ATTEST: _______________________________ JeffO’Neill,CityAdministrator Amendment to Development Stage Planned Unit Development (PUD) - Lots 6, 7, 9 & 10, Block 3, Sunset Ponds 2nd Addition 9398, 9404, 9408 & 9410 Golden Pond Lane (155173003100,155173003090, 155173003070, 155173003060) CityCouncilAgenda:11/10/14 1 5F.ConsiderationofadoptingResolution#2014-113statingIntenttoReimbursefrom bondproceedsforcertaincityprojects:SchoolBlvdimprovements,FallonAvenue overlayand85th Streetimprovements,FallonAvenuetrailconnection,andState Hwy25/85th Streetintersectionimprovements (WO) A.REFERENCEANDBACKGROUND: TheInternalRevenueServicerequirestheCitytoadoptaresolutiondeclaringtheofficial intenttoreimbursecertainprojectexpendituresfrombondproceeds,iftheCityplansor wouldissuebondstofinanceprojectcosts.Bypassingthisresolution,itwouldallowthe CitytoincludetheSchoolBlvdimprovements,FallonAvenueoverlayand85th Street improvements,FallonAvenuetrailconnection,andStateHwy25/85th Streetintersection improvementprojectsinafuturebondissue.Withouttheresolution,theprojectcould notbefundedbybonds.Atthistime,theCityisplanningonissuingbondstofinance theseandotherprojectsandreplacestate-aidusedasinterimfunding. OtherrecentlypassedreimbursementresolutionsincludeStateHwy25/CR75 intersectionimprovements($850,000)andFallonAvenueOverpass($6,000,000). A1.BudgetImpact:Byadoptingtheresolution,theCitywouldhavetheabilityto includetheSchoolBlvdimprovements,FallonAvenueoverlayand85 th Street improvements,FallonAvenuetrailconnection,andStateHwy25/85th Street intersectionprojectsinafuturebondissue. A2.StaffWorkloadImpact:Therewouldbenoimpactonthestaffbythisaction. WhentheCityissuesbonds,therewouldbestafftimeandconsultantcostsrelated tothebondissue. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-113declaringtheofficialintenttoreimburse expendituresfromtheproceedsofbondsforSchoolBlvdimprovements,Fallon Avenueoverlayand85th Streetimprovements,FallonAvenuetrailconnection, andStateHwy25/85th Streetintersectionimprovements. 2.Motiontonotadoptaresolutiondeclaringtheofficialintenttoreimburse expendituresfromtheproceedsofbonds. C.STAFFRECOMMENDATION: CitystaffsupportsAlternative#1. D.SUPPORTINGDATA: Resolution#2014-113 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-113 DECLARINGTHEOFFICIALINTENTOFTHECITYOFMONTICELLO TOREIMBURSECERTAINEXPENDITURESFROMTHEPROCEEDS OFBONDSTOBEISSUEDBYTHECITYFORCERTAINCITYPROJECTS: SCHOOLBOULEVARDSTREETANDTRAILIMPROVEMENTS, FALLONAVENUEOVERLAYAND85TH STREETIMPROVEMENTS, FALLONAVENUETRAILCONNECTION,AND STATEHWY25/85TH STREETINTERSECTIONIMPROVEMENTS WHEREAS,theInternalRevenueServicehasissuedTreas.Reg.§1.150-2providingthat proceedsoftax-exemptbondsusedtoreimbursepriorexpenditureswillnotbedeemedspent unlesscertainrequirementsaremet;and WHEREAS,theCityexpectstoincurcertainexpenditureswhichmaybefinancedtemporarily fromsourcesotherthanbonds,andreimbursedfromtheproceedsofabond; WHEREAS,theCityhasdeterminedtomakethisdeclarationofofficialintent(“Declaration”)to reimbursecertaincostsfromproceedsofbondsinaccordancewiththeReimbursement Regulations. NOW,THEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFTHECITYOF MONTICELLO(THE“CITY”)ASFOLLOWS: 1.TheCityreasonablyintendstomakeexpendituresfortheprojectsdescribedinExhibitA (the“Projects”),andreasonablyintendstoreimburseitselfforsuchexpendituresfromthe proceedsofdebttobeissuedbytheCityinthemaximumprincipalamountdescribedin ExhibitA.Allreimbursedexpenditureswillbecapitalexpenditures,costsofissuanceof thebonds,orotherexpenditureseligibleforreimbursementunderSection1.150-2(d)(3) oftheReimbursementRegulations. 2.ThisDeclarationhasbeenmadenotlaterthan60daysafterpaymentofanyoriginal expendituretobesubjecttoareimbursementallocationwithrespecttotheproceedsof bonds,exceptforthefollowingexpenditures:(a)costsofissuanceofbonds;(b)costsin anamountnotinexcessof$100,000or5percentoftheproceedsofanissue;or(c) “preliminaryexpenditures”uptoanamountnotinexcessof20percentoftheaggregate issuepriceoftheissueorissuesthatfinanceorarereasonablyexpectedbytheCityto financetheprojectforwhichthepreliminaryexpenditureswereincurred.Theterm “preliminaryexpenditures”includesarchitectural,engineering,surveying,bondissuance, andsimilarcoststhatareincurredpriortocommencementofacquisition,constructionor rehabilitationofaproject,otherthanlandacquisition,sitepreparation,andsimilarcosts incidenttocommencementofconstruction. 3.ThisDeclarationisanexpressionofthereasonableexpectationoftheCitybasedonthe factsandcircumstancesknowntotheCityasofthedatehereof.Theanticipatedoriginal expendituresfortheProjectandtheprincipalamountofthebondsdescribedinparagraph 1areconsistentwiththeCity’sbudgetaryandfinancialcircumstances.Nosourcesother thanproceedsofbondstobeissuedbytheCityare,orarereasonablyexpectedtobe, reserved,allocatedonalong-termbasis,orotherwisesetasidepursuanttotheCity’s budgetorfinancialpoliciestopaysuchprojectexpenditures. 4.TheCityAdministratorisauthorizedtodesignateappropriateadditionstoExhibitAin circumstanceswheretimeisoftheessence,andanysuchdesignationshallbereportedto theCouncilattheearliestpracticabledateandshallbefiledwiththeofficialbooksand recordsoftheCityasprovidedinSection3. 5.Thisresolutionisintendedtoconstituteadeclarationofofficialintentforpurposesof Treas.Reg.§1.150-2andanysuccessorlaw,regulation,orruling. ADOPTEDBY theCityCouncilthis10thdayofNovember,2014. CITYOFMONTICELLO __________________________________ ClintHerbst,Mayor ATTEST: __________________________________ JeffO’Neill,CityAdministrator EXHIBITA TOOFFICIALINTENTRESOLUTION#2014-113 ADOPTEDNovember10,2014 DATEOF DECLARATION DESCRIPTIONOFPROJECT MAXIMUM PRINCIPAL AMOUNTOFDEBT FORPROJECT 11/10/14Project(s)costs-including,butnotlimited to,constructionofimprovementsand indirectcosts,suchaslegal,engineering, administrative,rightofwayacquisition (land,etc.)andfinancingcosts. Engineeringcostsincludessurvey, feasibilitystudy,environmentaldocuments, permitting,preliminaryandfinaldesign, preparationofplansandspecs,bidding administration,constructionmanagement, staking,inspectionandmaterialtesting. TOTAL $1,200,000 SCHOOLBOULEVARDANDTRAIL IMPROVEMENTS $550,000 FALLONAVENUEOVERLAYAND 85THSTREETIMPROVEMENTS $250,000 FALLONAVENUETRAIL CONNECTION $85,000 STATEHWY25/85TH STREET INTERSECTIONIMPROVEMENTS $315,000 CityCouncilAgenda:11/10/14 1 7B.ConsiderationofadoptingResolution#2014-115awardingthesaleof$6,510,000G. O.Bonds,Series2014A (WO/Northland) A.REFERENCEANDBACKGROUND: AtitsregularOctober13,2014meeting,theCounciladoptedaresolutionsetting November10,2014asthesaledateforGeneralObligationBonds,Series2014A. OnFriday,October17,2014,citystaffandNorthlandSecuritiesconductedaratingscall withMoody’sInvestorServices.Moody’sreaffirmeditsrating(A2)onthefollowing Friday,October24th.A2creditworthinessisdescribedasupper-mediumgradeandlow creditrisk.ThereportfromMoody’sisattached. Thebidsforthesalewillbeopenedat10:30a.m.onNovember10thandtheresultswill bepresentedtoCouncilthatnightbyTammyOmdalofNorthlandSecurities.Council willthenbeaskedtoapprovetheattachedresolutionapprovingthesaleoftheG.O. Bonds,Series2014A. Thisgeneralobligation(G.O.)bondissuecontainstwoportions:judgmentand equipment.The$6,000,000judgmentbondportionoftheissueincludes$5,750,000for thesettlementand$250,000forissuancecosts,capitalizedinterestanda1% underwriter’sdiscount.The$510,000equipmentportionincludes$500,000for equipment(firetruckandplowtruck)and$10,000forissuancecostsanda1% underwriter’sdiscount.Issuancecostsareproratedaccordingtotherespectivesizeof eachportion.Inthiscase,issuancecostsminimallyincreasewithadditionofthe equipmentportion. TheattachedFinancePlanSummaryincludesdetailsrelatedtotheissue.Thebondsare generalobligationsofthecityofMonticellobackedbyapledgeoftheCity’sfullfaith, creditandunlimitedtaxingability.Theprincipalandinterestonthebondsisexpectedto bepaid100%bytaxeslevied,withthefirstlevyin2015forcollectionin2016.Thefirst paymentinDecember2015isinterestonly.Onthejudgmentportion,the2015interest onlypayment(estimatedat$153,000)isaddedtothesizeofthebondascapitalized interest. Afterthefirstyear,theannualdebtserviceisestimatedat$500,000forthejudgment bondsand$60,000fortheequipmentportion. A1.BudgetImpact:Annualdebtservicepaymentsareestimatedat$560,000forthe 1st 10yearsand$500,000forthenext5years. A2.StaffWorkloadImpact:Internalcoordinationofissuance-otherwiselittletono impactonthestaff. CityCouncilAgenda:11/10/14 2 B.ALTERNATIVEACTIONS 1.MotiontoadoptResolution#2014-115awardingthesaleof$6,510,000G.O. Bonds,Series2014Ato_____________. 2.MotiontodenyResolution#2014-115forthesaleofbonds. C.STAFFRECOMMENDATION: TheCitystaffsupportsAlternative#1. D.SUPPORTINGDATA: A.Resolution#2014-117 B.FinancePlanSummaryforG.O.Bonds,Series2014A C.Moody’sRatingComments 452470v2MNIMN190-146 CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-115 AWARDINGTHESALEOF$_________GENERALOBLIGATIONBONDS,SERIES 2014A;FIXINGTHEIRFORMANDSPECIFICATIONS;DIRECTINGTHEIR EXECUTIONANDDELIVERY;ANDPROVIDINGFORTHEIRPAYMENT BEITRESOLVEDBytheCityCounciloftheCityofMonticello,WrightCounty, Minnesota(the“City”)asfollows: Section1.Background. 1.01.TheCitypreviouslyissueditsTelecommunicationsRevenueBonds(Fibernet MonticelloProject),Series2008intheprincipalamountof$26,445,000(the“Series2008 Bonds”),theproceedsofwhichwereusedtofinancethecostsofacquiringandconstructinga “fiber-to-thepremises”broadbandcommunicationsnetworktoprovidecabletelevision,Internet accessandvoiceservicesasamunicipalenterprise(the“Facility”). 1.02.ThetrusteeandformerandcurrentbondholdersoftheSeries2008Bondsinitiated aclass-actionlawsuitagainsttheCityinJanuary2013(the“LawSuit”)inconnectionwiththe nonpaymentbytheCityofprincipalandinterestontheSeries2008Bonds.ThepartiestotheLaw SuitagreedtothetermsandconditionsofaSettlementAgreementandReleaseofAllClaimsdated September23,2013(the“SettlementAgreement”),anduponcompliancebythepartieswith certaintermsoftheSettlementAgreement,thematterwasbroughtbeforetheUnitedStatesDistrict Court,DistrictofMinnesota(the“Court”),wheretheCourtrendereditsJudgmentinaCivilCase, CaseNumber14-376DWF/JSM(the“Judgment”)onSeptember15,2014.Noappealwasfiled priortoexpirationoftheappealperiodonOctober14,2014(the“AppealDeadline”),whereupon theJudgmentbecamefinal. 1.03.PursuanttothetermsoftheJudgment,theCityisrequiredtopayaNetSettlement Amount(asdefinedintheJudgment)of$5,750,000within120daysafterexpirationoftheAppeal Deadline,insettlementofallclaimsagainsttheCity.PursuanttotheSettlementAgreementand Judgment,paymentoftheNetSettlementAmountwillreleasetheCityfromanyfutureclaimsor obligationsrelatingtotheSeries2008BondswithregardtoallApprovingClassMembers(as definedintheSettlementAgreement). 1.04.TheCityisauthorizedbyMinnesotaStatutes,Chapter475(the“Act”),and specificallySection475.58,subdivision1(1)oftheAct,toissueandsellitsgeneralobligation bondstopayanyunpaidjudgmentagainsttheCity.Inaddition,theCityisauthorizedbySection 475.67,subdivision3oftheActtoissueandsellitsgeneralobligationbondstorefundobligations andtheinterestthereonbeforetheduedateoftheobligations,ifconsistentwithcovenantsmade withtheholdersthereof,whendeterminedbytheCityCounciltobenecessaryordesirableforthe reductionofdebtservicecosttotheCityorfortheextensionoradjustmentofmaturitiesinrelation totheresourcesavailablefortheirpayment. 452470v2MNIMN190-146 2 1.05.TheCityisfurtherauthorizedbytheAct,andMinnesotaStatutes,Section412.301 (the“EquipmentAct”),toissueitsgeneralobligationequipmentcertificatesofindebtednesson suchtermsandinsuchmannerastheCitydeterminestofinancethepurchaseofitemsofcapital equipment(the“Equipment”),subjecttocertainlimitationscontainedintheActandthe EquipmentAct. 1.06.TheCitywillpurchaseandacquirevariousitemsofEquipment,whichitemsof EquipmentandtheirexpectedcostsaresetforthatEXHIBITBattachedhereto,tobepurchased pursuanttotheEquipmentAct. 1.07.AsrequiredbytheEquipmentAct, (i)theexpectedusefullifeoftheEquipmentisorwillbeatleastaslongasthe termoftheEquipmentBonds (hereinafterdefined);and (ii)theprincipalamountofEquipmentBondstobeissuedintheyear2014will notexceed0.25percentofthemarketvalueoftaxablepropertyintheCity,basedonfinalized taxablemarketvaluesfor2013. 1.08.Itisnecessaryandexpedienttothesoundfinancialmanagementoftheaffairsof theCitytoissueitsGeneralObligationBonds,Series2014A(the“Bonds”),intheaggregate principalamountof$_________,pursuanttotheActtofinancethecostoftheNetSettlement AmountandpursuanttotheActandtheEquipmentActtoprovidefinancingfortheacquisitionof theEquipment. Section2.SaleofBonds. 2.01.AwardtothePurchaserandInterestRates.Theproposalof___________________ (the“Purchaser”)topurchasetheBondsdescribedintheNoticeofSalethereofisdeterminedto beareasonableoffer,theproposalbeingtopurchasetheBondsatapriceof$__________(par amountof$_________,plusoriginalissuepremiumof$____________,lessunderwriter’s discountof$_________),plusaccruedinteresttodateofdelivery,forBondsbearinginterestas follows: YearInterestRateYearInterestRate 2016%2024% 20172025 20182026 20192027 20202028 20212029 20222030 2023 Trueinterestcost:_________% 452470v2MNIMN190-146 3 2.02.PurchaseContract.Anyoriginalissuepremiumandanyroundingamountshallbe creditedtotheNetSettlementFund,theEquipmentFundortheDebtServiceFundhereinafter created,asdeterminedbytheCity’smunicipaladvisorandtheCityFinanceDirector.TheCity FinanceDirectorisdirectedtoretainthegoodfaithcheckofthePurchaser,pendingcompletionof thesaleoftheBonds,andtoreturnthegoodfaithchecksoftheunsuccessfulproposers.The MayorandCityAdministratorareauthorizedtoexecuteacontractwiththePurchaseronbehalf oftheCity. 2.03.TermsandPrincipalAmountsofBonds.TheCitywillforthwithissueandsellthe BondspursuanttotheActinthetotalprincipalamountof$_________,originallydatedDecember 15,2014,inthedenominationof$5,000eachoranyintegralmultiplethereof,numberedNo.R-1, upward,bearinginterestasabovesetforth,andwhichmatureseriallyonDecember15intheyears andamountsasfollows: YearAmountYearAmount 2016$2024$ 20172025 20182026 20192027 20202028 20212029 20222030 2023 $_________oftheBonds(the“JudgmentBonds”)maturingintheamountsonthedates setforthbelowarebeingissuedtofinancetheNetSettlementAmountandaresecuredbyad valoremtaxes: Year Amount Year Amount 2016$2024$ 20172025 20182026 20192027 20202028 20212029 20222030 2023 $__________oftheBonds(the“EquipmentBonds”)maturingintheamountsandonthe datessetforthbelowarebeingissuedtofinancetheEquipmentandaresecuredbyadvalorem taxes: Year Amount Year Amount 2016$2021$ 452470v2MNIMN190-146 4 20172022 20182023 20192024 2020 2.04.OptionalRedemption.TheCitymayelectonDecember15,2021,andonanyday thereaftertoprepayBondsdueonorafterDecember15,2022.Redemptionmaybeinwholeor inpartandifinpart,attheoptionoftheCityandinsuchmannerastheCitywilldetermine.If lessthanallBondsofamaturityarecalledforredemption,theCitywillnotifyDTC(asdefinedin Section9hereof)oftheparticularamountofsuchmaturitytobeprepaid.DTCwilldetermineby lottheamountofeachparticipant'sinterestinsuchmaturitytoberedeemedandeachparticipant willthenselectbylotthebeneficialownershipinterestsinsuchmaturitytoberedeemed. Prepaymentswillbeatapriceofparplusaccruedinterest. 2.05ExtraordinaryOptionalRedemption.TheCitymayelecttocalltheBondsinwhole orinpartonanydateintheeventtheCitytakesanyactiontosellorleasetheFacilitytoaprivate entitythatwouldresultinadeterminationthattheBondswouldbecometaxableforfederaland stateincometaxpurposes.Prepaymentswillbeatapriceofparplusaccruedinterest. Section3.RegistrationandPayment. 3.01.RegisteredForm.TheBondswillbeissuedonlyinfullyregisteredform.The interestthereonand,uponsurrenderofeachBond,theprincipalamountthereof,ispayableby checkordraftissuedbytheRegistrardescribedherein. 3.02.Dates;InterestPaymentDates.EachBondwillbedatedasofthelastinterest paymentdateprecedingthedateofauthenticationtowhichinterestontheBondhasbeenpaidor madeavailableforpayment,unless(i)thedateofauthenticationisaninterestpaymentdateto whichinteresthasbeenpaidormadeavailableforpayment,inwhichcasetheBondwillbedated asofthedateofauthentication,or(ii)thedateofauthenticationispriortothefirstinterestpayment date,inwhichcasetheBondwillbedatedasofthedateoforiginalissue.Theinterestonthe BondsispayableonJune15andDecember15ofeachyear,commencingDecember15,2015,to theregisteredownersofrecordasofthecloseofbusinessonthefirstdayofthemonth,whether ornotthatdayisabusinessday. 3.03.Registration.TheCitywillappoint,andwillmaintain,abondregistrar,transfer agent,authenticatingagentandpayingagent(the“Registrar”).Theeffectofregistrationandthe rightsanddutiesoftheCityandtheRegistrarwithrespecttheretoareasfollows: (a)Register.TheRegistrarmustkeepatitsprincipalcorporatetrustofficea bondregisterinwhichtheRegistrarprovidesfortheregistrationofownershipofBonds andtheregistrationoftransfersandexchangesofBondsentitledtoberegistered, transferredorexchanged. (b)TransferofBonds.UponsurrenderfortransferofaBonddulyendorsedby theregisteredownerthereoforaccompaniedbyawritteninstrumentoftransfer,inform satisfactorytotheRegistrar,dulyexecutedbytheregisteredownerthereoforbyanattorney 452470v2MNIMN190-146 5 dulyauthorizedbytheregisteredownerinwriting,theRegistrarwillauthenticateand deliver,inthenameofthedesignatedtransfereeortransferees,oneormorenewBondsof alikeaggregateprincipalamountandmaturity,asrequestedbythetransferor.The Registrarmay,however,closethebooksforregistrationofanytransferafterthefirstday oftheofeachinterestpaymentdateanduntilthatinterestpaymentdate. (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 inwhosenameaBondisregisteredinthebondregisterastheabsoluteowneroftheBond, whethertheBondisoverdueornot,forthepurposeofreceivingpaymentof,oronaccount of,theprincipalofandinterestontheBondandforallotherpurposes,andpaymentsso madetoaregisteredownerorupontheowner’sorderwillbevalidandeffectualtosatisfy anddischargetheliabilityupontheBondtotheextentofthesumorsumssopaid. (g)Taxes,FeesandCharges.TheRegistrarmayimposeachargeuponthe ownerthereofforatransferorexchangeofBondssufficienttoreimbursetheRegistrarfor anytax,feeorothergovernmentalchargerequiredtobepaidwithrespecttothetransfer orexchange. (h)Mutilated,Lost,StolenorDestroyedBonds.IfaBondbecomesmutilated orisdestroyed,stolenorlost,theRegistrarwilldeliveranewBondoflikeamount,number, maturitydateandtenorinexchangeandsubstitutionforanduponcancellationofthe mutilatedBondorinlieuofandinsubstitutionforanyBonddestroyed,stolenorlost,upon thepaymentofthereasonableexpensesandchargesoftheRegistrarinconnection therewith;and,inthecaseofaBonddestroyed,stolenorlost,uponfilingwiththeRegistrar ofevidencesatisfactorytoitthattheBondwasdestroyed,stolenorlost,andofthe ownershipthereof,anduponfurnishingtotheRegistraranappropriatebondorindemnity inform,substanceandamountsatisfactorytoitandasprovidedbylaw,inwhichboththe CityandtheRegistrarmustbenamedasobligees.BondssosurrenderedtotheRegistrar willbecancelledbytheRegistrarandevidenceofsuchcancellationmustbegiventothe City.Ifthemutilated,destroyed,stolenorlostBondhasalreadymaturedorbeencalled forredemptioninaccordancewithitstermsitisnotnecessarytoissueanewBondpriorto payment. 452470v2MNIMN190-146 6 (i)Redemption.IntheeventanyoftheBondsarecalledforredemption,notice thereofidentifyingtheBondstoberedeemedwillbegivenbytheRegistrarbymailinga copyoftheredemptionnoticebyfirstclassmail(postageprepaid)totheregisteredowner ofeachBondtoberedeemedattheaddressshownontheregistrationbookskeptbythe Registrarandbypublishingthenoticeifrequiredbylaw.Failuretogivenoticeby publicationorbymailtoanyregisteredowner,oranydefecttherein,willnotaffectthe validityoftheproceedingsfortheredemptionofBonds.Bondssocalledforredemption willceasetobearinterestafterthespecifiedredemptiondate,providedthatthefundsfor theredemptionareondepositwiththeplaceofpaymentatthattime. 3.04.AppointmentofInitialRegistrar.TheCityappointsU.S.BankNational Association,St.Paul,Minnesota,astheinitialRegistrar.TheMayorandtheCityAdministrator areauthorizedtoexecuteanddeliver,onbehalfoftheCity,acontractwiththeRegistrar.Upon mergerorconsolidationoftheRegistrarwithanothercorporation,iftheresultingcorporationisa bankortrustcompanyauthorizedbylawtoconductsuchbusiness,theresultingcorporationis authorizedtoactassuccessorRegistrar.TheCityagreestopaythereasonableandcustomary chargesoftheRegistrarfortheservicesperformed.TheCityreservestherighttoremovethe Registrarupon30days’noticeandupontheappointmentofasuccessorRegistrar,inwhichevent thepredecessorRegistrarmustdeliverallcashandBondsinitspossessiontothesuccessor RegistrarandmustdeliverthebondregistertothesuccessorRegistrar.Onorbeforeeachprincipal orinterestduedate,withoutfurtherorderofthisCouncil,theCityFinanceDirectormusttransmit totheRegistrarmoniessufficientforthepaymentofallprincipalandinterestthendue. 3.05.Execution,AuthenticationandDelivery.TheBondswillbepreparedunderthe directionoftheCityAdministratorandexecutedonbehalfoftheCitybythesignaturesofthe MayorandtheCityAdministrator,providedthatallsignaturesmaybeprinted,engravedor lithographedfacsimilesoftheoriginals.Ifanofficerwhosesignatureorafacsimileofwhose signatureappearsontheBondsceasestobesuchofficerbeforethedeliveryofanyBond,that signatureorfacsimilewillneverthelessbevalidandsufficientforallpurposes,thesameasifthe officerhadremainedinofficeuntildelivery.Notwithstandingsuchexecution,aBondwillnotbe validorobligatoryforanypurposeorentitledtoanysecurityorbenefitunderthisResolution unlessanduntilacertificateofauthenticationontheBondhasbeendulyexecutedbythemanual signatureofanauthorizedrepresentativeoftheRegistrar.Certificatesofauthenticationon differentBondsneednotbesignedbythesamerepresentative.Theexecutedcertificateof authenticationonaBondisconclusiveevidencethatithasbeenauthenticatedanddeliveredunder thisResolution.WhentheBondshavebeensoprepared,executedandauthenticated,theCity AdministratorwilldeliverthesametothePurchaseruponpaymentofthepurchasepricein accordancewiththecontractofsaleheretoforemadeandexecuted,andthePurchaserisnot obligatedtoseetotheapplicationofthepurchaseprice. 3.06.TemporaryBonds.TheCitymayelecttodeliverinlieuofprinteddefinitiveBonds oneormoretypewrittentemporaryBondsinsubstantiallytheformsetforthinExhibitCwithsuch changesasmaybenecessarytoreflectmorethanonematurityinasingletemporarybond.Upon theexecutionanddeliveryofdefinitiveBondsthetemporaryBondswillbeexchangedtherefor andcancelled. 452470v2MNIMN190-146 7 Section4.FormofBond. 4.01.FormofBond.TheBondswillbeprintedortypewritteninsubstantiallytheform asattachedheretoasEXHIBITC. 4.02.ApprovingLegalOpinion.TheCityAdministratorisauthorizedanddirectedto obtainacopyoftheproposedapprovinglegalopinionofKennedy&Graven,Chartered, Minneapolis,Minnesota,whichistobecompleteexceptastodatingthereofandcausetheopinion tobeprintedonoraccompanyeachBond. Section5.Payment;Security;PledgesandCovenants. 5.01.DebtServiceFund.TheBondsarepayablefromtheGeneralObligationBonds, Series2014ADebtServiceFund(the“DebtServiceFund”)herebycreated.TheCitywillcreate andmaintainseparateaccountswithintheDebtServiceFunddesignatedasthe“JudgmentBonds Account”andthe“EquipmentBondsAccount”. (a)JudgmentBondsAccount.TheCityFinanceDirectorwilltimelydeposit intheJudgmentBondsAccountoftheDebtServiceFundtheproceedsoftheadvalorem taxeshereinafterleviedforthepaymentoftheNetSettlementAmount,whichtaxesare pledgedtotheJudgmentBondsAccount.ThereisalsoappropriatedtotheJudgmentBonds Account(i)aprorataportionofcapitalizedinterestfinancedfromproceedsofthe JudgmentBonds,ifany;and(ii)aprorataportionofanyamountovertheminimum purchasepricepaidbythePurchaser,totheextentdesignatedfordepositintheDebt ServiceFundinaccordancewithSection2.02hereof. (b)EquipmentBondsAccount.TheCityFinanceDirectorwilltimelydeposit intheEquipmentBondsAccountoftheDebtServiceFundtheproceedsoftheadvalorem taxeshereinafterleviedforthepurchaseoftheEquipment,whichtaxesarepledgedtothe EquipmentBondsAccount.ThereisalsoappropriatedtotheEquipmentBondsAccount (i)aprorataportionofcapitalizedinterestfinancedfromproceedsoftheEquipment Bonds,ifany;and(ii)aprorataportionofanyamountovertheminimumpurchaseprice paidbythePurchaser,totheextentdesignatedfordepositintheDebtServiceFundin accordancewithSection2.02hereof. 5.02.NetSettlementFund.AllproceedsoftheJudgmentBondsportionoftheBonds, lesstheappropriationsmadeinSection5.01hereofandaprorataportionofthecostsofissuance oftheBonds,willbedepositedinaseparatefund(the“NetSettlementFund”)tobeusedsolelyto paytheNetSettlementAmountonDecember15,2014(the“RedemptionDate”).Anybalance remainingintheNetSettlementFundafterpaymentoftheNetSettlementAmountshallbe depositedintheJudgmentBondsAccountoftheDebtServiceFund. 5.03EquipmentFund.TheproceedsoftheEquipmentBondsportionoftheBonds,less theappropriationsmadeinSection5.01hereofandaprorataportionofthecostsofissuanceofthe Bonds,togetherwithanyotherfundsappropriatedforthepurchaseofEquipment,willbedeposited inaseparatefund(the“EquipmentFund”)tobeusedsolelytodefrayexpensesoftheEquipment. WhentheEquipmentispurchasedandthecostthereofpaid,theEquipmentFundistobeclosedand 452470v2MNIMN190-146 8 anymoneysremainingthereinshallbetransferredtotheEquipmentBondsAccountoftheDebt ServiceFund. 5.03.TaxLevy.(a)JudgmentBondsPortionoftheBonds.Forthepurposeofpayingthe principalofandinterestontheJudgmentBondsportionoftheBonds,thereisherebylevieda directannualirrepealableadvaloremtaxuponallofthetaxablepropertyintheCity,whichwill bespreaduponthetaxrollsandcollectedwithandaspartofothergeneraltaxesoftheCity.Such taxwillbecreditedtotheJudgmentBondsAccountoftheDebtServiceFundaboveprovidedand willbeintheyearsandamountsasfollows(yearstatedbeingyearofcollection): YearLevy (SeeExhibitD) (b)EquipmentBondsPortionoftheBonds.Forthepurposeofpayingtheprincipalofand interestontheEquipmentBondsportionoftheBonds,thereisherebyleviedadirectannual irrepealableadvaloremtaxuponallofthetaxablepropertyintheCity,whichwillbespreadupon thetaxrollsandcollectedwithandaspartofothergeneraltaxesoftheCity.Suchtaxwillbe creditedtotheEquipmentBondsAccountoftheDebtServiceFundaboveprovidedandwillbein theyearsandamountsasfollows(yearstatedbeingyearofcollection): YearLevy (SeeExhibitE) 5.04.FilingofResolution.TheCityAdministratorisdirectedtofileacertifiedcopyof thisresolutionwiththeCountyAuditorofWrightCountyandtoobtainthecertificaterequiredby Section475.63oftheAct. 5.05.TermsofLevy.Itisherebydeterminedthattheestimatedcollectionofthe foregoingTaxeswillproduceatleastfivepercentinexcessoftheamountneededtomeetwhen due,theprincipalandinterestpaymentsontheBonds.Thetaxlevyhereinprovidedwillbe irrepealableuntilalloftheBondsarepaid,providedthattheCityAdministratormayannually,at thetimetheCitymakesitstaxlevies,certifytotheCountyAuditortheamountavailableinthe DebtServiceFundtopayprincipalandinterestdueduringtheensuingyear,andtheCounty Auditorwillthereuponreducethelevycollectibleduringsuchyearbytheamountsocertified. 5.06.GeneralObligationPledge.Forthepromptandfullpaymentoftheprincipaland interestontheBonds,asthesamerespectivelybecomedue,thefullfaith,creditandtaxingpowers oftheCitywillbeandareherebyirrevocablypledged.IfthebalanceinDebtServiceFundisever insufficienttopayallprincipalandinterestthendueontheBondsandanyotherbondspayable therefrom,thedeficiencywillbepromptlypaidoutofmoniesinthegeneralfundoftheCitywhich areavailableforsuchpurpose,andsuchgeneralfundmaybereimbursedwithorwithoutinterest fromtheDebtServiceAccountwhenasufficientbalanceisavailabletherein. Section6.Refunding;Findings;RedemptionofSeries2008Bonds. 452470v2MNIMN190-146 9 6.01.Findings.TheSeries2008BondswereissuedbytheCitypursuanttotheIndenture ofTrustbetweentheCityandWellsFargoBank,NationalAssociation,asTrustee,datedasofJune 1,2008(the“Indenture”).PursuanttotheSettlementAgreementandJudgment,theCity’s paymentoftheNetSettlementAmountwillreleasetheCityinfullfromanyclaimsbyApproving ClassMembersinconnectionwiththeSeries2008Bonds,andthereforeuponpaymentoftheNet SettlementAmounttheSeries2008Bondswillberedeemedandprepaidinfullastosuch ApprovingClassMembers.TheCityacknowledgesandagreesthatonememberoftheclassopted outoftheSettlementAgreement,andthatuponpaymentoftheNetSettlementAmount,bondsin atotalaggregateamountof$20,000willremainoutstanding(the“RemainingBonds”)andthat theCitywillremainsubjecttothetermsoftheIndentureastosuchRemainingBonds. 6.02.RedemptionofSeries2008Bonds.WiththeexceptionoftheRemainingBonds, allSeries2008BondsoutstandingasoftheRedemptionDateandthereafterwillberedeemedand prepaidontheRedemptionDatethroughpaymentoftheNetSettlementAmount.TheNet SettlementAmountwillbepaidinaccordancewiththetermsoftheSettlementAgreementand Judgment,whichtermsandconditionsareherebyapprovedandincorporatedhereinbyreference. TheCityandTrusteeagreethattheApprovingClassMembershavereceivednoticeofpaymentof theNetSettlementAmountandthatnofurthernoticeofredemptionfortheSeries2008Bondsis necessary. Section7.AuthenticationofTranscript. 7.01.CityProceedingsandRecords.TheofficersoftheCityareauthorizedanddirected toprepareandfurnishtothePurchaserandtotheattorneysapprovingtheBonds,certifiedcopies ofproceedingsandrecordsoftheCityrelatingtotheBondsandtothefinancialconditionand affairsoftheCity,andsuchothercertificates,affidavitsandtranscriptsasmayberequiredtoshow thefactswithintheirknowledgeorasshownbythebooksandrecordsintheircustodyandunder theircontrol,relatingtothevalidityandmarketabilityoftheBondsandsuchinstruments, includinganyheretoforefurnished,willbedeemedrepresentationsoftheCityastothefactsstated therein. 7.02.CertificationastoOfficialStatement.TheMayor,CityAdministratorandFinance DirectorareherebyauthorizedanddirectedtocertifythattheyhaveexaminedtheOfficial StatementpreparedandcirculatedinconnectionwiththeissuanceandsaleoftheBondsandthat tothebestoftheirknowledgeandbelieftheOfficialStatementisacompleteandaccurate representationofthefactsandrepresentationsmadethereinasofthedateoftheOfficialStatement. Section8.TaxCovenant. 8.01.TaxExemptBonds.TheCitycovenantsandagreeswiththeholdersfromtimeto timeoftheBondsthatitwillnottakeorpermittobetakenbyanyofitsofficers,employeesor agentsanyactionwhichwouldcausetheinterestontheBondstobecomesubjecttotaxationunder theInternalRevenueCodeof1986,asamended(the“Code”),andtheTreasuryRegulations promulgatedthereunder,ineffectatthetimeofsuchactions,andthatitwilltakeorcauseits officers,employeesoragentstotake,allaffirmativeactionwithinitspowerthatmaybenecessary toensurethatsuchinterestwillnotbecomesubjecttotaxationundertheCodeandapplicable 452470v2MNIMN190-146 10 TreasuryRegulations,aspresentlyexistingorashereafteramendedandmadeapplicabletothe Bonds. 8.02.Rebate.TheCitywillcomplywithrequirementsnecessaryundertheCodeto establishandmaintaintheexclusionfromgrossincomeoftheinterestontheBondsunderSection 103oftheCode,includingwithoutlimitationrequirementsrelatingtotemporaryperiodsfor investments,limitationsonamountsinvestedatayieldgreaterthantheyieldontheBonds,and therebateofexcessinvestmentearningstotheUnitedStates. 8.03.NotPrivateActivityBonds.TheCityfurthercovenantsnottousetheproceedsof theBondsortocauseorpermitthemoranyofthemtobeused,insuchamannerastocausethe Bondstobe“privateactivitybonds”withinthemeaningofSections103and141through150of theCode. 8.04.QualifiedTax-ExemptObligations.InordertoqualifytheBondsas“qualifiedtax- exemptobligations”withinthemeaningofSection265(b)(3)oftheCode,theCitymakesthe followingfactualstatementsandrepresentations: (a)theBondsarenot“privateactivitybonds”asdefinedinSection141ofthe Code; (b)theCityherebydesignatestheBondsas“qualifiedtax-exemptobligations” forpurposesofSection265(b)(3)oftheCode; (c)thereasonablyanticipatedamountoftax-exemptobligations(otherthan privateactivitybonds,thatarenotqualified501(c)(3)bonds)whichwillbeissuedbythe City(andallsubordinateentitiesoftheCity)duringcalendaryear2014willnotexceed $10,000,000;and (d)notmorethan$10,000,000ofobligationsissuedbytheCityduringcalendar year2014havebeendesignatedforpurposesofSection265(b)(3)oftheCode. 8.05.ProceduralRequirements.TheCitywilluseitsbesteffortstocomplywithany federalproceduralrequirementswhichmayapplyinordertoeffectuatethedesignationsmadeby thissection. Section9.Book-EntrySystem;LimitedObligationofCity. 9.01.DTC.TheBondswillbeinitiallyissuedintheformofaseparatesingletypewritten orprintedfullyregisteredBondforeachofthematuritiessetforthinSection2.03hereof.Upon initialissuance,theownershipofeachBondwillberegisteredintheregistrationbookskeptby theRegistrarinthenameofCede&Co.,asnomineeforTheDepositoryTrustCompany,New York,NewYork,anditssuccessorsandassigns(“DTC”).Exceptasprovidedinthissection,all oftheoutstandingBondswillberegisteredintheregistrationbookskeptbytheRegistrarinthe nameofCede&Co.,asnomineeofDTC. 452470v2MNIMN190-146 11 9.02.Participants.WithrespecttoBondsregisteredintheregistrationbookskeptbythe RegistrarinthenameofCede&Co.,asnomineeofDTC,theCity,theRegistrarandthePaying Agentwillhavenoresponsibilityorobligationtoanybrokerdealers,banksandotherfinancial institutionsfromtimetotimeforwhichDTCholdsBondsassecuritiesdepository (the“Participants”)ortoanyotherpersononbehalfofwhichaParticipantholdsaninterestinthe Bonds,includingbutnotlimitedtoanyresponsibilityorobligationwithrespectto(i)theaccuracy oftherecordsofDTC,Cede&Co.oranyParticipantwithrespecttoanyownershipinterestinthe Bonds,(ii)thedeliverytoanyParticipantoranyotherperson(otherthanaregisteredownerof Bonds,asshownbytheregistrationbookskeptbytheRegistrar),ofanynoticewithrespecttothe Bonds,includinganynoticeofredemption,or(iii)thepaymenttoanyParticipantoranyother person,otherthanaregisteredownerofBonds,ofanyamountwithrespecttoprincipalof, premium,ifany,orinterestontheBonds.TheCity,theRegistrarandthePayingAgentmaytreat andconsiderthepersoninwhosenameeachBondisregisteredintheregistrationbookskeptby theRegistrarastheholderandabsoluteownerofsuchBondforthepurposeofpaymentof principal,premiumandinterestwithrespecttosuchBond,forthepurposeofregisteringtransfers withrespecttosuchBonds,andforallotherpurposes.ThePayingAgentwillpayallprincipalof, premium,ifany,andinterestontheBondsonlytoorontheorderoftherespectiveregistered owners,asshownintheregistrationbookskeptbytheRegistrar,andallsuchpaymentswillbe validandeffectualtofullysatisfyanddischargetheCity’sobligationswithrespecttopaymentof principalof,premium,ifany,orinterestontheBondstotheextentofthesumorsumssopaid. NopersonotherthanaregisteredownerofBonds,asshownintheregistrationbookskeptbythe Registrar,willreceiveacertificatedBondevidencingtheobligationofthisresolution.Upon deliverybyDTCtotheCityAdministratorofawrittennoticetotheeffectthatDTChasdetermined tosubstituteanewnomineeinplaceofCede&Co.,thewords“Cede&Co.,”willrefertosuch newnomineeofDTC;anduponreceiptofsuch anotice,theCityAdministratorwillpromptly deliveracopyofthesametotheRegistrarandPayingAgent. 9.03.RepresentationLetter.TheCityhasheretoforeexecutedanddeliveredtoDTCa BlanketIssuerLetterofRepresentations(the“RepresentationLetter”)whichwillgovernpayment ofprincipalof,premium,ifany,andinterestontheBondsandnoticeswithrespecttotheBonds. AnyPayingAgentorRegistrarsubsequentlyappointedbytheCitywithrespecttotheBondswill agreetotakeallactionnecessaryforallrepresentationsoftheCityintheRepresentationletter withrespecttotheRegistrarandPayingAgent,respectively,tobecompliedwithatalltimes. 9.04.TransfersOutsideBook-EntrySystem.IntheeventtheCity,byresolutionofthe CityCouncil,determinesthatitisinthebestinterestsofthepersonshavingbeneficialinterestsin theBondsthattheybeabletoobtainBondcertificates,theCitywillnotifyDTC,whereuponDTC willnotifytheParticipants,oftheavailabilitythroughDTCofBondcertificates.Insucheventthe Citywillissue,transferandexchangeBondcertificatesasrequestedbyDTCandanyother registeredownersinaccordancewiththeprovisionsofthisResolution.DTCmaydetermineto discontinueprovidingitsserviceswithrespecttotheBondsatanytimebygivingnoticetothe Cityanddischargingitsresponsibilitieswithrespecttheretounderapplicablelaw.Insuchevent, ifnosuccessorsecuritiesdepositoryisappointed,theCitywillissueandtheRegistrarwill authenticateBondcertificatesinaccordancewiththisresolutionandtheprovisionshereofwill applytothetransfer,exchangeandmethodofpaymentthereof. 452470v2MNIMN190-146 12 9.05.PaymentstoCede&Co.NotwithstandinganyotherprovisionofthisResolution tothecontrary,solongasaBondisregisteredinthenameofCede&Co.,asnomineeofDTC, paymentswithrespecttoprincipalof,premium,ifany,andinterestontheBondandnoticeswith respecttotheBondwillbemadeandgiven,respectivelyinthemannerprovidedinDTC’s OperationalArrangementsassetforthintheRepresentationLetter. Section10.ContinuingDisclosure. 10.01.CityCompliancewithProvisionsofContinuingDisclosureCertificate.TheCity herebycovenantsandagreesthatitwillcomplywithandcarryoutalloftheprovisionsofthe ContinuingDisclosureCertificate.NotwithstandinganyotherprovisionofthisResolution,failure oftheCitytocomplywiththeContinuingDisclosureCertificatewillnotbeconsideredanevent ofdefaultwithrespecttotheBonds;however,anyBondholdermaytakesuchactionsasmaybe necessaryandappropriate,includingseekingmandateorspecificperformancebycourtorder,to causetheCitytocomplywithitsobligationsunderthissection. 10.02.ExecutionofContinuingDisclosureCertificate.“ContinuingDisclosure Certificate”meansthatcertainContinuingDisclosureCertificateexecutedbytheMayorandCity AdministratoranddatedthedateofissuanceanddeliveryoftheBonds,asoriginallyexecutedand asitmaybeamendedfromtimetotimeinaccordancewiththetermsthereof. Section11.Defeasance.WhenallBondsandallinterestthereon,havebeendischarged asprovidedinthissection,allpledges,covenantsandotherrightsgrantedbythisresolutiontothe holdersoftheBondswillcease,exceptthatthepledgeofthefullfaithandcreditoftheCityforthe promptandfullpaymentoftheprincipalofandinterestontheBondswillremaininfullforceand effect.TheCitymaydischargeallBondswhicharedueonanydatebydepositingwiththeRegistrar onorbeforethatdateasumsufficientforthepaymentthereofinfull.IfanyBondshouldnotbepaid whendue,itmayneverthelessbedischargedbydepositingwiththeRegistrarasumsufficientforthe paymentthereofinfullwithinterestaccruedtothedateofsuchdeposit. ADOPTEDBY theMonticelloCityCouncilonthis10th dayofNovember,2014. CITYOFMONTICELLO ____________________________________ ClintHerbst,Mayor ATTEST: _______________________________ JeffO’Neill,CityAdministrator 452470v2MNIMN190-146 13 ExtractofMinutesofMeeting oftheCityCounciloftheCityof Monticello,WrightCounty,Minnesota Pursuanttoduecallandnoticethereof,aregularmeetingoftheCityCounciloftheCity ofMonticello,Minnesota,wasdulyheldintheCityHallinsaidCityonMonday,November 10,2014,commencingat7:00P.M. Thefollowingmemberswerepresent: andthefollowingwereabsent: TheMayorannouncedthatthenextorderofbusinesswasconsiderationoftheproposals thathadbeenreceivedforthepurchaseoftheCity’s$_________GeneralObligationBonds, Series2014A. TheCityFinanceDirectorpresentedatabulationoftheproposalsthathavebeenreceived inthemannerspecifiedintheNoticeofSalefortheBonds.Theproposalsareassetforthin ExhibitAattached. Afterdueconsideration,Member____________thenintroducedthefollowingresolution andmoveditsadoption: ThemotionfortheadoptionoftheforegoingresolutionwasdulysecondedbyMember _______________,anduponvotebeingtakenthereon,thefollowingvotedinfavorthereof: andthefollowingvotedagainstthesame: Saidresolutionwasdeclareddulypassedandadopted. 452470v2MNIMN190-146 STATEOFMINNESOTA) ) COUNTYOFWRIGHT)SS. ) CITYOFMONTICELLO) I,theundersigned,beingthedulyqualifiedandactingDeputyCityClerkoftheCityof Monticello,WrightCounty,Minnesota,doherebycertifythatIhavecarefullycomparedthe attachedandforegoingextractofminutesofaregularmeetingoftheCityCounciloftheCityheld onNovember10,2014withtheoriginalminutesonfileinmyofficeandtheextractisafull,true andcorrectcopyoftheminutesinsofarastheyrelatetotheissuanceandsaleof$_________ GeneralObligationBonds,Series2014AoftheCity. WITNESSmyhandofficiallyasDeputyCityClerkandthecorporatesealoftheCitythis ______dayofNovember,2014. DeputyCityClerk Monticello,Minnesota (SEAL) 452470v2MNIMN190-146 STATEOFMINNESOTACOUNTYAUDITOR’S CERTIFICATEASTO COUNTYOFWRIGHTTAXLEVYAND REGISTRATION I,theundersignedCountyAuditorofWrightCounty,Minnesota,herebycertifythatacertified copyofaresolutionadoptedbythegoverningbodyoftheCityofMonticello,Minnesota,on November10,2014,levyingtaxesforthepaymentof$_________GeneralObligationBonds, Series2014A,ofsaidmunicipalitydatedDecember15,2014,hasbeenfiledinmyofficeandsaid bondshavebeenenteredontheregisterofobligationsinmyofficeandthatsuchtaxhasbeenlevied asrequiredbylaw. WITNESSmyhandandofficialsealthis_____dayof_________________,2014. CountyAuditor WrightCounty,Minnesota (SEAL) Deputy 452470v2MNIMN190-146 A-1 EXHIBITA PROPOSALS 452470v2MNIMN190-146 B-1 EXHIBITB EQUIPMENT FireTruck$300,000 PlowTruck$200,000 452470v2MNIMN190-146 C-1 EXHIBITC FORMOFBOND No.R-___UNITEDSTATESOFAMERICA$___________ STATEOFMINNESOTA COUNTYOFWRIGHT CITYOFMONTICELLO GENERALOBLIGATIONBOND,SERIES2014A Rate Maturity Dateof OriginalIssue CUSIP December15,20__December15,2014 RegisteredOwner:Cede&Co. TheCityofMonticello,Minnesota,adulyorganizedandexistingmunicipalcorporationin WrightCounty,Minnesota(the“City”),acknowledgesitselftobeindebtedandforvaluereceived promisestopaytotheRegisteredOwnerspecifiedaboveorregisteredassigns,theprincipalsum of$__________onthematuritydatespecifiedabovewithoutoptionofpriorpayment,with interestthereonfromthedatehereofattheannualratespecifiedabove,payableJune15and December15ineachyear,commencingDecember15,2015,tothepersoninwhosenamethis Bondisregisteredatthecloseofbusinessonthefirstday(whetherornotabusinessday)ofthe month.Theinteresthereonand,uponpresentationandsurrenderhereof,theprincipalhereofare payableinlawfulmoneyoftheUnitedStatesofAmericabycheckordraftbyU.S.BankNational Association,St.Paul,Minnesota,asRegistrar,PayingAgent,TransferAgentandAuthenticating Agent,oritsdesignatedsuccessorundertheResolutiondescribedherein.Forthepromptandfull paymentofsuchprincipalandinterestasthesamerespectivelybecomedue,thefullfaithand creditandtaxingpowersoftheCityhavebeenandareherebyirrevocablypledged. TheCitymayelectonDecember15,2021,andonanydatethereaftertoprepayBondsdue onorafterDecember15,2022.Redemptionmaybeinwholeorinpartandifinpart,attheoption oftheCityandinsuchorderastheCitywilldetermine.IflessthanallBondsofamaturityare calledforredemption,theCitywillnotifyTheDepositoryTrustCompany(“DTC”)ofthe particularamountofsuchmaturitytobeprepaid.DTCwilldeterminebylottheamountofeach participant’sinterestinsuchmaturitytoberedeemedandeachparticipantwillthenselectbylot thebeneficialownershipinterestsinsuchmaturitytoberedeemed.Prepaymentswillbeataprice ofparplusaccruedinterest. 452470v2MNIMN190-146 C-2 TheCitymayelecttocallBondsinwholeorinpartonanydateintheeventtheCitytakes anyactiontosellorleaseitsfiberopticsystemtoaprivateentitythatwouldresultina determinationthattheBondswouldbecometaxableforfederalandstateincometaxpurposes. Prepaymentswillbeatapriceofparplusaccruedinterest. TheCityCouncilhasdesignatedtheissueofBondsofwhichthisBondformsapartas “qualifiedtaxexemptobligations”withinthemeaningofSection265(b)(3)oftheInternal RevenueCodeof1986,asamended(the“Code”)relatingtodisallowanceofinterestexpensefor financialinstitutionsandwithinthe$10millionlimitallowedbytheCodeforthecalendaryearof issue. ThisBondisoneofanissueintheaggregateprincipalamountof$_________alloflike originalissuedateandtenor,exceptastonumber,maturitydate,andinterestrate,allissued pursuanttoaresolutionadoptedbytheCityCouncilonNovember10,2014(the“Resolution”), forthepurposeofprovidingmoneytofinancethepaymentofalegalsettlementamountandto providefinancingfortheacquisitionofvariousequipmentfortheCity,pursuanttoandinfull conformitywiththeConstitutionandlawsoftheStateofMinnesota,includingMinnesotaStatutes Chapter475andSection412.301,andJudgmentinaCivilCase,CaseNumber14-376DWF/JSM, andtheprincipalhereofandinteresthereonarepayableprimarilyfromadvaloremtaxes,asset forthintheResolutiontowhichreferenceismadeforafullstatementofrightsandpowersthereby conferred.ThefullfaithandcreditoftheCityareirrevocablypledgedforpaymentofthisBond andtheCityCouncilhasobligateditselftolevyadditionaladvaloremtaxesonalltaxableproperty intheCityintheeventofanydeficiencyintaxespledged,whichadditionaltaxesmaybelevied withoutlimitationastorateoramount.TheBondsofthisseriesareissuedonlyasfullyregistered Bondsindenominationsof$5,000oranyintegralmultiplethereofofsinglematurities. AsprovidedintheResolutionandsubjecttocertainlimitationssetforththerein,thisBond istransferableuponthebooksoftheCityattheprincipalofficeoftheRegistrar,bytheregistered ownerhereofinpersonorbytheowner’sattorneydulyauthorizedinwriting,uponsurrender hereoftogetherwithawritteninstrumentoftransfersatisfactorytotheRegistrar,dulyexecutedby theregisteredownerortheowner’sattorney;andmayalsobesurrenderedinexchangeforBonds ofotherauthorizeddenominations.UponsuchtransferorexchangetheCitywillcauseanew BondorBondstobeissuedinthenameofthetransfereeorregisteredowner,ofthesameaggregate principalamount,bearinginterestatthesamerateandmaturingonthesamedate,subjectto reimbursementforanytax,feeorgovernmentalchargerequiredtobepaidwithrespecttosuch transferorexchange. TheCityandtheRegistrarmaydeemandtreatthepersoninwhosenamethisBondis registeredastheabsoluteownerhereof,whetherthisBondisoverdueornot,forthepurposeof receivingpaymentandforallotherpurposes,andneithertheCitynortheRegistrarwillbeaffected byanynoticetothecontrary. ITISHEREBYCERTIFIED,RECITED,COVENANTEDANDAGREEDthatallacts, conditionsandthingsrequiredbytheConstitutionandlawsoftheStateofMinnesotatobedone, toexist,tohappenandtobeperformedpreliminarytoandintheissuanceofthisBondinorderto makeitavalidandbindinggeneralobligationoftheCityinaccordancewithitsterms,havebeen 452470v2MNIMN190-146 C-3 done,doexist,havehappenedandhavebeenperformedassorequired,andthattheissuanceof thisBonddoesnotcausetheindebtednessoftheCitytoexceedanyconstitutionalorstatutory limitationofindebtedness. ThisBondisnotvalidorobligatoryforanypurposeorentitledtoanysecurityorbenefit undertheResolutionuntiltheCertificateofAuthenticationhereonhasbeenexecutedbythe Registrarbymanualsignatureofoneofitsauthorizedrepresentatives. 452470v2MNIMN190-146 C-4 INWITNESSWHEREOF,theCityofMonticello,WrightCounty,Minnesota,byitsCity Council,hascausedthisBondtobeexecutedonitsbehalfbythefacsimileormanualsignatures oftheMayorandCityAdministratorandhascausedthisBondtobedatedasofthedatesetforth below. Dated:December__,2014 CITYOFMONTICELLO,MINNESOTA (Facsimile)(Facsimile) CityAdministratorMayor CERTIFICATEOFAUTHENTICATION ThisisoneoftheBondsdeliveredpursuanttotheResolutionmentionedwithin. U.S.BANKNATIONALASSOCIATION By AuthorizedRepresentative 452470v2MNIMN190-146 C-5 Thefollowingabbreviations,whenusedintheinscriptiononthefaceofthisBond,willbe construedasthoughtheywerewrittenoutinfullaccordingtoapplicablelawsorregulations: TENCOM--astenantsUNIFGIFTMINACT_________Custodian_________ incommon(Cust)(Minor) TENENT--astenantsunderUniformGiftsor byentiretiesTransferstoMinors Act............ JTTEN--asjointtenantswith rightofsurvivorshipand notastenantsincommon(State) Additionalabbreviationsmayalsobeusedthoughnotintheabovelist. __________________________ ASSIGNMENT Forvaluereceived,theundersignedherebysells,assignsandtransfersunto ________________________________________thewithinBondandallrightsthereunder,and doesherebyirrevocablyconstituteandappoint_________________________attorneytotransfer thesaidBondonthebookskeptforregistrationofthewithinBond,withfullpowerofsubstitution inthepremises. Dated: Notice:Theassignor’ssignaturetothisassignmentmustcorrespondwiththenameasit appearsuponthefaceofthewithinBondineveryparticular,withoutalterationor anychangewhatever. SignatureGuaranteed: NOTICE:Signature(s)mustbeguaranteedbyafinancialinstitutionthatisamemberofthe SecuritiesTransferAgentMedallionProgram(“STAMP”),theStockExchangeMedallion Program(“SEMP”),theNewYorkStockExchange,Inc.MedallionSignaturesProgram(“MSP”) orothersuch“signatureguaranteeprogram”asmaybedeterminedbytheRegistrarinadditionto, orinsubstitutionfor,STAMP,SEMPorMSP,allinaccordancewiththeSecuritiesExchangeAct of1934,asamended. 452470v2MNIMN190-146 C-6 TheRegistrarwillnoteffecttransferofthisBondunlesstheinformationconcerningthe assigneerequestedbelowisprovided. NameandAddress: (IncludeinformationforalljointownersifthisBond isheldbyjointaccount.) Pleaseinsertsocialsecurityorother identifyingnumberofassignee 452470v2MNIMN190-146 C-7 PROVISIONSASTOREGISTRATION TheownershipoftheprincipalofandinterestonthewithinBondhasbeenregisteredon thebooksoftheRegistrarinthenameofthepersonlastnotedbelow. DateofRegistration RegisteredOwner Signatureof OfficerofRegistrar Cede&Co. FederalID#13-2555119 452470v2MNIMN190-146 D-1 EXHIBITD TAXLEVYSCHEDULE–JUDGMENTBONDS YEAR*TAXLEVY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 *Yeartaxlevycollected. 452470v2MNIMN190-146 E-1 EXHIBITE TAXLEVYSCHEDULE–EQUIPMENTBONDS YEAR*TAXLEVY 2015 2016 2017 2018 2019 2020 2021 2022 2023 *Yeartaxlevycollected. CITYOF MONTICELLO,MINNESOTA $6,510,000 GENERAL OBLIGATION BONDS,SERIES 2014A 45South7th Street Suite2000 Minneapolis,MN55402 612-851-5900800-851-2920 October13,2014 CityofMonticello,Minnesota FINANCE PLAN SUMMARY Page2 $6,510,000 GeneralObligationBonds,Series2014A FINANCINGPLANOVERVIEW Thisfinanceplanprovidesforthepublicissuanceofapproximately$6,510,000General ObligationBonds(the“Bonds”)throughacompetitivebidprocesstofundthejudgmentagainst theCityrelatedtotheTelecommunicationRevenueBondsSeries2008,FibernetMonticello Project,(the“JudgmentPortion”)andtofundthepurchaseofcapitalequipment(the “EquipmentPortion”).NorthlandhasworkedwithCityStaffinthecreationofthefinanceplan. TheinformationprovidedintheFinancePlanwillhelptheCitytoevaluatetheabilityofthe proposedfinanceplantomeettheCity’sobjectivesandiftheproposedfinanceplanisinthe City’sbestinterest. AUTHORITY&PURPOSE TheBondswillbeissuedpursuanttoMinnesotaStatutesChapter475and412.TheJudgment PortionoftheBondsassumes$5,750,000inprojectcostsandtheEquipmentPortionassumes $500,000inequipmentcosts.IncludingthecostsofissuingtheBondsthetotalamountofBonds tobeissuedis$6,510,000.Theestimatedsourcesandusesoffundsareasfollows: TotalIssueSourcesAndUses Dated12/15/2014|Delivered12/15/2014 Judgment Portion Equipment Portion Issue Summary SourcesOfFunds ParAmountofBonds $6,000,000.00 $510,000.00 $6,510,000.00 TotalSources $6,000,000.00 $510,000.00 $6,510,000.00 UsesOfFunds TotalUnderwriter'sDiscount(1.000%)60,000.00 5,100.00 65,100.00 CostsofIssuance 36,910.60 3,137.40 40,048.00 DeposittoCapitalizedInterest(CIF)Fund 152,757.50 -152,757.50 DeposittoProjectConstructionFund 5,750,000.00 500,000.00 6,250,000.00 RoundingAmount 331.90 1,762.60 2,094.50 TotalUses $6,000,000.00 $510,000.00 $6,510,000.00 Page3 STRUCTURE&SECURITY ThestructureoftheBondsandpreliminarydebtserviceprojectionscanbefoundinAttachment A.PrincipalontheBondswillbepayableonDecember15th overa15yearperiod,from2016to 2030,fortheJudgmentPortionoftheBonds,andovera9yearperiod,from2016to2024,onthe EquipmentPortionoftheBonds(SeeAttachmentB).TheEquipmentPortionoftheBonds cannotexceed10yearsfromdateddate(SeeAttachmentC).Interestpaymentsonthe JudgmentPortionoftheBonds,throughDecember15,2015,willbefundedwithbondproceeds (capitalizedinterest).TheCitywillmakethefirstinterestpaymentontheEquipmentPortionof theBondsfromavailableCityfunds.Thereafter,interestispayablesemi-annuallyonJune15th andDecember15th. TheBondsaregeneralobligationsoftheCityofMonticellobackedbyapledgeoftheCity’sfull faith,creditandunlimitedtaxingability.TheprincipalandinterestontheBondsisexpectedto bepaid100%bytaxeslevied,firstlevytobemadein2015forcollectionin2016. RELATEDCONSIDERATIONS BankQualified TheCitydoesnotexpecttoissuemorethan$10,000,000intotaltax-exemptdebtincalendar year2014.Forthisreason,theBondswillbedesignatedas“bankqualified”obligations pursuanttoFederalTaxLaw.Theimpactofthisdesignationmayresultinslightlylower interestrates.Wehaveadjustedtheestimatedinterestratesaccordingly. ArbitrageCompliance ProjectFund–Alltaxexemptissuesaresubjecttofederalrebaterequirementswhichrequireall arbitrageearnedtoberebatedtotheU.S.Treasury.However,bondproceedsmaybeexempt fromrebateifcertainexpenditurerequirementsaremet.WerecommendtheCityelectthe18 MonthExpenditureExemptionforthisissue.Acompletedescriptionoftheexpenditure requirementsshallbeprovidedtostaff. DebtServiceFund–TheCitymustmaintainabonafidedebtservicefundforthebondsorbe subjecttoyieldrestrictioninthedebtservicefund.Abonafidedebtservicefundinvolvesan equalmatchingofrevenuestodebtserviceexpensewithabalanceforwardpermittedequalto thegreateroftheinvestmentearningsinthefundduringthatyearor1/12ofthedebtserviceof thatyear. TheCityshouldbecomefamiliarwiththevariousArbitrageCompliancerequirementsforthis bondissue.TheBondResolutionexplainstherequirementsingreaterdetail.Wearealso availabletoassisttheCityinmeetingtheserequirements. ContinuingDisclosure TheparamountoftheBondsisgreaterthan$1,000,000,andtheCity’soutstandingdebtexceeds $10,000,000makingthisissuesubjecttofulldisclosureunderthecontinuingdisclosure requirementsofSECRule15(c)2-12.BondCouncilwillpreparethe“undertaking”that Page4 describesthecontinuingdisclosurerequirementsforthisissue.Northlandisavailabletoassist theCityinmeetingtheserequirements. RedemptionofBonds TheBondsshallbesubjecttobothanOptionalRedemptionandanExtraordinaryOptional Redemption.TheOptionalRedemptionprovidestheBondsmaturingonDecember15,2022 andthereaftertobesubjecttoredemption,inwholeorinpart,onDecember15,2021andon anydatethereafteratapriceofparplusaccruedinterest.TheinclusionofanExtraordinary OptionalRedemptionmeanstheBondsarealsosubjecttoextraordinaryredemption,inwhole orinpart,ataredemptionpriceequaltoparplusaccruedinteresttotheredemptiondate,inthe eventtheCitysellsorleasesitsFiberOpticSystemtoaprivateentity,causingtheBondsto becometaxableforfederalandstateincometaxpurposes. Page5 SUMMARYOFRECOMMENDEDTERMS TypeofBondSale PublicSale –CompetitiveBids SaleDate Monday,November10,2014at 10:30 A.M. CouncilConsideration Monday,November10,2014at7:00P.M. RepaymentTerm TheBondswillmatureannuallyeach December 15,2016 - 2030.InterestontheBondswillbepayableonDecember 15,2015andsemiannuallythereafteroneachJune15th and December15th. Security GeneralObligationoftheCity.Principalandintereston theBondswillbepaid100%fromtaxleviesfiledin2015for firstcollectionin2016. OptionalRedemption TheBondsmaturingon December 15,2022 andthereafter aresubjecttoredemption,inwholeorinpart,onDecember 15,2021andonanydatethereafteratapriceofparplus accruedinterest. ExtraordinaryRedemption TheBondswillbesubjectto an extraordinaryredemption intheeventofTaxabilityofInterest. TaxStatus Opinion Kennedy&GravenChartered,Minneapolis,willprovide thetaxstatusopinionfortheBonds.TheFinancePlanis basedonataxexemptstatus. Rating TheCity’sGeneralObligationdebtiscurrentlyrated“A2” byMoody’sInvestorServices.Aratingwillberequested fromMoody’sfortheBonds. ContinuingDisclosure Full BankQualified Yes ArbitrageRebateExemption 18-MonthExemption PayingAgent U.S.BankN.A. Page6 ATTACHMENTA Note:InterestratesareestimatesonlyforthepurposeoftheFinancePlan. DebtServiceSchedule DatePrincipalCouponInterestTotalP+IFiscalTotal 12/15/2014 ----- 12/15/2015 --162,635.00 162,635.00 162,635.00 06/15/2016 --81,317.50 81,317.50 - 12/15/2016 405,000.00 0.950%81,317.50 486,317.50 567,635.00 06/15/2017 --79,393.75 79,393.75 - 12/15/2017 405,000.00 1.200%79,393.75 484,393.75 563,787.50 06/15/2018 --76,963.75 76,963.75 - 12/15/2018 410,000.00 1.450%76,963.75 486,963.75 563,927.50 06/15/2019 --73,991.25 73,991.25 - 12/15/2019 415,000.00 1.700%73,991.25 488,991.25 562,982.50 06/15/2020 --70,463.75 70,463.75 - 12/15/2020 420,000.00 1.950%70,463.75 490,463.75 560,927.50 06/15/2021 --66,368.75 66,368.75 - 12/15/2021 430,000.00 2.200%66,368.75 496,368.75 562,737.50 06/15/2022 --61,638.75 61,638.75 - 12/15/2022 440,000.00 2.400%61,638.75 501,638.75 563,277.50 06/15/2023 --56,358.75 56,358.75 - 12/15/2023 450,000.00 2.600%56,358.75 506,358.75 562,717.50 06/15/2024 --50,508.75 50,508.75 - 12/15/2024 460,000.00 2.800%50,508.75 510,508.75 561,017.50 06/15/2025 --44,068.75 44,068.75 - 12/15/2025 410,000.00 2.950%44,068.75 454,068.75 498,137.50 06/15/2026 --38,021.25 38,021.25 - 12/15/2026 425,000.00 3.100%38,021.25 463,021.25 501,042.50 06/15/2027 --31,433.75 31,433.75 - 12/15/2027 440,000.00 3.250%31,433.75 471,433.75 502,867.50 06/15/2028 --24,283.75 24,283.75 - 12/15/2028 450,000.00 3.350%24,283.75 474,283.75 498,567.50 06/15/2029 --16,746.25 16,746.25 - 12/15/2029 465,000.00 3.500%16,746.25 481,746.25 498,492.50 06/15/2030 --8,608.75 8,608.75 - 12/15/2030 485,000.00 3.550%8,608.75 493,608.75 502,217.50 Total$6,510,000.00-$1,722,970.00$8,232,970.00- YieldStatistics AverageCoupon 2.8809799% NetInterestCost(NIC)2.9898336% TrueInterestCost(TIC)2.9721363% AllInclusiveCost(AIC)3.0511408% Page7 105%Levy Less:Less:Equals:Collection DateTotalP+ICapInterestCityFundsCityTaxlevyLevyYearYear 12/15/2014 ---- 12/15/2015 162,635.00 (152,757.50)(9,877.50)- 12/15/2016 567,635.00 596,016.75 2015 2016 12/15/2017 563,787.50 591,976.88 2016 2017 12/15/2018 563,927.50 592,123.88 2017 2018 12/15/2019 562,982.50 591,131.63 2018 2019 12/15/2020 560,927.50 588,973.88 2019 2020 12/15/2021 562,737.50 590,874.38 2020 2021 12/15/2022 563,277.50 591,441.38 2021 2022 12/15/2023 562,717.50 590,853.38 2022 2023 12/15/2024 561,017.50 589,068.38 2023 2024 12/15/2025 498,137.50 523,044.38 2024 2025 12/15/2026 501,042.50 526,094.63 2025 2026 12/15/2027 502,867.50 528,010.88 2026 2027 12/15/2028 498,567.50 523,495.88 2027 2028 12/15/2029 498,492.50 523,417.13 2028 2029 12/15/2030 502,217.50 527,328.38 2029 2030 Total$8,232,970.00(152,757.50)(9,877.50)$8,473,851.75 Page8 ATTACHMENTB Note:InterestratesareestimatesonlyforthepurposeoftheFinancePlan. DebtServiceSchedule-JudgmentPortion DatePrincipalCouponInterestTotalP+IFiscalTotal 12/15/2014 ----- 12/15/2015 --152,757.50 152,757.50 152,757.50 06/15/2016 --76,378.75 76,378.75 - 12/15/2016 350,000.00 0.950%76,378.75 426,378.75 502,757.50 06/15/2017 --74,716.25 74,716.25 - 12/15/2017 350,000.00 1.200%74,716.25 424,716.25 499,432.50 06/15/2018 --72,616.25 72,616.25 - 12/15/2018 355,000.00 1.450%72,616.25 427,616.25 500,232.50 06/15/2019 --70,042.50 70,042.50 - 12/15/2019 360,000.00 1.700%70,042.50 430,042.50 500,085.00 06/15/2020 --66,982.50 66,982.50 - 12/15/2020 365,000.00 1.950%66,982.50 431,982.50 498,965.00 06/15/2021 --63,423.75 63,423.75 - 12/15/2021 375,000.00 2.200%63,423.75 438,423.75 501,847.50 06/15/2022 --59,298.75 59,298.75 - 12/15/2022 380,000.00 2.400%59,298.75 439,298.75 498,597.50 06/15/2023 --54,738.75 54,738.75 - 12/15/2023 390,000.00 2.600%54,738.75 444,738.75 499,477.50 06/15/2024 --49,668.75 49,668.75 - 12/15/2024 400,000.00 2.800%49,668.75 449,668.75 499,337.50 06/15/2025 --44,068.75 44,068.75 - 12/15/2025 410,000.00 2.950%44,068.75 454,068.75 498,137.50 06/15/2026 --38,021.25 38,021.25 - 12/15/2026 425,000.00 3.100%38,021.25 463,021.25 501,042.50 06/15/2027 --31,433.75 31,433.75 - 12/15/2027 440,000.00 3.250%31,433.75 471,433.75 502,867.50 06/15/2028 --24,283.75 24,283.75 - 12/15/2028 450,000.00 3.350%24,283.75 474,283.75 498,567.50 06/15/2029 --16,746.25 16,746.25 - 12/15/2029 465,000.00 3.500%16,746.25 481,746.25 498,492.50 06/15/2030 --8,608.75 8,608.75 - 12/15/2030 485,000.00 3.550%8,608.75 493,608.75 502,217.50 Total$6,000,000.00-$1,654,815.00$7,654,815.00- Page9 105%Levy-JudgmentPortion Less:Equals:Collection DateTotalP+ICapInterestCityTaxLevyLevyYearYear 12/15/2014 ----- 12/15/2015 152,757.50 (152,757.50)- 12/15/2016 502,757.50 527,895.38 2015 2016 12/15/2017 499,432.50 524,404.13 2016 2017 12/15/2018 500,232.50 525,244.13 2017 2018 12/15/2019 500,085.00 525,089.25 2018 2019 12/15/2020 498,965.00 523,913.25 2019 2020 12/15/2021 501,847.50 526,939.88 2020 2021 12/15/2022 498,597.50 523,527.38 2021 2022 12/15/2023 499,477.50 524,451.38 2022 2023 12/15/2024 499,337.50 524,304.38 2023 2024 12/15/2025 498,137.50 523,044.38 2024 2025 12/15/2026 501,042.50 526,094.63 2025 2026 12/15/2027 502,867.50 528,010.88 2026 2027 12/15/2028 498,567.50 523,495.88 2027 2028 12/15/2029 498,492.50 523,417.13 2028 2029 12/15/2030 502,217.50 527,328.38 2029 2030 Total$7,654,815.00(152,757.50)$7,877,160.38 Page10 ATTACHMENTC Note:InterestratesareestimatesonlyforthepurposeoftheFinancePlan. DebtServiceSchedule-EquipmentPortion DatePrincipalCouponInterestTotalP+IFiscalTotal 12/15/2014 ----- 12/15/2015 --9,877.50 9,877.50 9,877.50 06/15/2016 --4,938.75 4,938.75 - 12/15/2016 55,000.00 0.950%4,938.75 59,938.75 64,877.50 06/15/2017 --4,677.50 4,677.50 - 12/15/2017 55,000.00 1.200%4,677.50 59,677.50 64,355.00 06/15/2018 --4,347.50 4,347.50 - 12/15/2018 55,000.00 1.450%4,347.50 59,347.50 63,695.00 06/15/2019 --3,948.75 3,948.75 - 12/15/2019 55,000.00 1.700%3,948.75 58,948.75 62,897.50 06/15/2020 --3,481.25 3,481.25 - 12/15/2020 55,000.00 1.950%3,481.25 58,481.25 61,962.50 06/15/2021 --2,945.00 2,945.00 - 12/15/2021 55,000.00 2.200%2,945.00 57,945.00 60,890.00 06/15/2022 --2,340.00 2,340.00 - 12/15/2022 60,000.00 2.400%2,340.00 62,340.00 64,680.00 06/15/2023 --1,620.00 1,620.00 - 12/15/2023 60,000.00 2.600%1,620.00 61,620.00 63,240.00 06/15/2024 --840.00 840.00 - 12/15/2024 60,000.00 2.800%840.00 60,840.00 61,680.00 Total$510,000.00-$68,155.00$578,155.00- 105%Levy-EquipmentPortion DateTotalP+I Less:City Funds Equals:City TaxLevyLevyYear Collection Year 12/15/2014 ---- 12/15/2015 9,877.50 (9,877.50)- 12/15/2016 64,877.50 68,121.38 2015 2016 12/15/2017 64,355.00 67,572.75 2016 2017 12/15/2018 63,695.00 66,879.75 2017 2018 12/15/2019 62,897.50 66,042.38 2018 2019 12/15/2020 61,962.50 65,060.63 2019 2020 12/15/2021 60,890.00 63,934.50 2020 2021 12/15/2022 64,680.00 67,914.00 2021 2022 12/15/2023 63,240.00 66,402.00 2022 2023 12/15/2024 61,680.00 64,764.00 2023 2024 Total$578,155.00(9,877.50)$596,691.38 New Issue: Moody's assigns A2 to Monticello, MN's $6.5M GO Bonds, Series 2014A Global Credit Research - 24 Oct 2014 A2 affirmed on $26.0M post-sale GO debt MONTICELLO (CITY OF) MN Cities (including Towns , Villages and Towns hips) MN Moody's Rating ISSUE RATING General Obligation Bonds, Series 2014A A2 Sale Amount $6,510,000 Expected Sale Date 11/10/14 Rating Description General Obligation Moody's Outlook NOO Opinion NEW YORK, October 24, 2014 --Moody's Inv estors Service has assigned an A2 underly ing rating to the City of Monticello, MN's $6.5 million General Obligation Bonds, Series 2014A. The current offering and the city's outstanding general obligation (GO) bonds are ultimately secured by an unlimited and dedicated property tax pledge. The bonds are being iss ued under the authority of Minnes ota Statue 475.58 which authorizes munic ipalities to is sue bonds to fund judgments agains t the city. Proc eeds from the bonds will fund a $5.75 million judgment against the c ity relating to its 2012 default on Telec ommunications Revenue Bonds, Series 2008 (not rated). Additionally, $500,000 in proceeds will finance equipment purchases . Concurrently, Moody's has affirmed the A2 GO and A3 lease revenue ratings on the city's outstanding debt. Pos t sale, the c ity will have $26.5 million of general obligation debt outs tanding, of which $26.0 million is Moody's rated, and $985,000 of lease revenue debt outstanding, all of which is Moody's rated. SUMMARY RATINGS RATIONALE The A2 GO rating reflects the city's concentrated tax base; favorable soc io-economic indices; ample General Fund reserves des pite recent declines; elevated debt levels; and manageable pension obligations. The A2 rating also incorporates the city's ongoing support for a city -owned, competitiv e telec ommunications utility , whic h is ex pected to require subs idies from city funds on an indefinite basis . The one notch distinction between the A3 lease revenue debt rating and the A2 GO rating reflects the risk of annual non-appropriation and the ess entiality of the pledged as set, which is a city hall and community center. STRENGTHS - Fav orable resident socio-economic metrics, including abov e av erage median family income and low unemployment rates - Ample operating reserves in General Fund and essential enterprise funds - Manageable pension obligations CHALLENGES - Substantial tax bas e concentration, with a nuclear power plant comprising 49% of assess ed v aluation - Continued operation of a c ompetitive telecommunications enterprise which is expec ted to require support from other city funds - History of negativ e budget to actual res ults for telec ommunications enterprise operations and capital projects DETAILED CREDIT DISCUSSION RECENT SETTLEMENT OF 2012 REVENUE BOND DEFAULT Monticello's recent s ettlement of a default on 2012 revenue bonds reduces the likelihood of a c ontinuation of legal costs for the city. The resolution to pay bondholders 25% required the city to issue the c urrent bonds, whic h contributed slightly to the city's debt burden. Notably, however, the default itself otherwise had limited implications on the city 's overall credit quality given that the c ity had made no legal or other promis e to pay debt serv ice from any source other than pledged enterpris e net revenues. The city is sued $26.4 million of telecommunications rev enue bonds in 2008 for the construction of a telecommunic ations s ystem intended to provide city residents with an alternative to the exis ting priv ate sector internet provider. The utility operates and offers cable, telephone, and internet servic es. The c ity broadband projec t was approved by a referendum that garnered 74% voter support. Debt serv ice on the bonds was s ecured solely by net revenues generated by the s ystem. Reflecting the strength of private c ompetition, the city's telecommunications utility's market s hare and operating rev enues have remained well below original projections . Since inception, the enterpris e has had ongoing deficit operations and revenues hav e been insufficient to c over debt service and operations. Although the city had not pledged to cov er debt servic e should telecommunications net revenues be insufficient, the city opted to cov er the telecommunic ations enterprise's deficit operations and debt s ervice requirements with other city resources , mostly from the Municipal Liquor Fund. The city made the firs t two debt service payments on due Dec ember 1, 2011 and June 1, 2012. On June 6, 2012 the city notified the trustee, Wells Fargo Bank, N.A. (Aa3 stable) that it would no longer mak e required monthly sinking fund payments . Because net revenues of the utility c ontinued to be insufficient, a technical default occ urred on July 1, 2012, when the net revenues of the utility were insufficient to make the s inking fund payment. On December 1, 2012, the first princ ipal payment default occurred. Under the threat of litigation from bondholders, the c ity and the trustee negotiated a settlement agreement whereby the city will pay $5.75 million (estimated 25% recov ery) in ex change for release from any future claims from bondholders for debt service payments on the revenue bonds, as well as the ability to continue to own and operate the telecommunications enterprise. The Settlement Agreement was approved in a Final Approval Order signed by a US District Court judge on September 15, 2014. All bondholders, except for one person holding $20,000 in outstanding maturities, were included as a part of the class action suit agains t the city. As of October 15, 2014, the Final Approval Order was no longer subject to appeal and the c ourt ordered the city to fund the settlement amount within 120 days. Proceeds from the current issuanc e will pay bondholders which will be deposited into escrow. CONTINUED OWNERSHIP AND OPERATION OF NON-ESSENTIAL TELECOMMUNICATIONS ENTERPRISE REQUIRES ONGOING CITY SUPPORT The default on the telec ommunications revenue bonds, in and of itself, has limited implications for the Monticello's GO credit quality. The city's continued operation of the telecommunic ations utility, however, exposes the city to ongoing risks associated with operating a competitive enterprise, which we cons ider to be non-ess ential to munic ipal operations . The city's decision to continue to operate the enterprise exposes the city to increased operating ris k es pecially given competition and historical loss of cus tomers. While debt service obligations have been eliminated, the telecommunications enterprise c ontinues to rely on operating s ubsidies from the city. In fiscal 2013, the city supported the enterprise with c ash trans fers of $210,000 from the Capital Rev olving Fund and $650,000 from the Municipal Liquor Fund. Of that amount, $390,000 was for one time equipment needs, with the remaining amount funding operations. The transfers in 2013 were equivalent to a moderate 12% of General Fund rev enues. For fis cal 2014, management expec ts to transfer $600,000 from the Liquor Fund for operations, or 8% of 2013 General Fund revenues. For fiscal 2015, the city budgeted to reduce the transfer to $450,000 due to ex pected operational efficiencies achieved from improved billing systems and a change in management structure. The c ity is now operating the system instead of subcontracting operations to a third party. Despite reduced expenditures, we note continued revenue pressures are ongoing as cus tomer accounts continue to decline and that pric e increases for service may be challenging due to the competitive environment. Between phone, internet and television serv ices, ac counts declined by an average of 5.7% per year between yearend 2011 and 2013. Year to date in 2014, cus tomer accounts declined by an additional 3.1% through the firs t three quarters . To date, revenues from the Capital Revolving Fund and the Municipal Liquor Fund have been sufficient to support the telecommunications enterprise. The city has a s trong performing liquor enterprise. The enterpris e generated $680,000 operating income, net of deprec iation, in fiscal 2013, in alignment with prior years' performanc e. Going forward, management ex pects the Liquor Fund to provide approximately $450,000 to $600,000 of annual support to the telecommunications enterpris e. However, should the telecommunic ations utility require support bey ond that which these funds can prov ide, the city may elect to tap into its General Fund reserves or other reserves in order to keep the sys tem viable. Reduc tions in operating res erves could lead to downward movement in the city's GO rating. AMPLE OPERATING RESERVES DESPITE RECENT DECLINES Buoy ed by ample operating res erves, Monticello's financial profile is expected to remain stable des pite ongoing support for the telecommunications enterprise. In fiscal 2013, the city experienced stable financial operations with the General Fund netting a modest operating surplus of $436,000, leaving the General Fund with $3.7 million in av ailable reserves, equivalent to 53% of General Fund revenues. Similarly , the city's cash pos ition at the end of fiscal 2013 was $4.0 million or a healthy 58% of General Fund revenues . The fiscal 2013 fund balance exceeds the city's formal policy to maintain General Fund reserv es at 45% of operating expenditures. Officials report that year to date General Fund operations are balanc ed and they als o ex pect balanced General Fund operations for fiscal 2015. The largest source of General Fund rev enues is property taxes , whic h comprised 81% of revenues in fiscal 2013. The city ty pically increases its property tax levy by 2% to 5% annually and expects to continue this prac tic e going forward. SIGNIFICANT TAXPAYER CONCENTRATION; SIZEABLE TAX BASE FOR RATING CATEGORY The city's moderately s ized tax bas e v alue is expected to remain stable given recent facility upgrades and investments in the city's largest tax payer, a nuclear plant. The city is located 40 miles northwest of Minneapolis along Interstate 94, and midway between St. Cloud (Aa2) and the Twin Cities . The city's tax base is valued at $1.4 billion, based on its Economic Market Value in assessment year 2014. Following a trend of declines in tax base value that was relatively moderate in comparison to the Twin Cities metropolitan area as a whole, the city's tax base grew sharply in 2012. Approximately $600 million of power enhanc ements at the city's largest taxpayer, the Xcel Energy Inc. (A3 stable) Nuclear Station drove an 18% increase in the c ity 's assessed value in 2012 to $19.6 million. Management expects the city's ass essed value to grow again in 2015 to nearly $24 million as the full impac t of the improvements at the facility hit the tax roll. The 600 megawatt nuclear station compris es a substantial 49% of the city's asses sed value and employs approximately 2,000 during peak refueling and maintenance periods and 450 during normal operating periods. The plant, opened in 1970, has had stable operations and is licensed to operate through 2030. The plant's expected long-term presence, reinforced by its decision to undergo substantial plant upgrades recently, somewhat mitigates the risks inherent in tax base concentration of this scale. Wright County's (Aa2) J uly 2014 unemploy ment rate of 4.1% was on par with the state's rate of 4.3% and well below the nation's rate of 6.5% for the same time period. The c ity 's wealth indicators trend above the nation, with its median family income at 126% of the nation based on 2008 to 2012 estimates from the American Community Survey. ABOVE AVERAGE DEBT BURDEN WITH SOME FUTURE BORROWING PLANS The city's debt burden s hould remain above average despite rapid principal amortization due to s ome planned borrowing for infrastructure in two years . At 2.0% and 2.9% of full value, respectively, the c ity's direct and overall debt burdens are somewhat elev ated. The city's future debt plans inc lude up to $7 million of new money GO borrowing for road and overpass projects in 2016. Principal amortization is rapid with 87% of outstanding principal retired in 10 years. Debt serv ice remains by far the city's largest operating expenditure, making up roughly half of all of the city's costs. While this is exceptionally high, less than $2 million of the city's $6 million in annual debt serv ice costs are derived directly from general property taxes. Debt service is additionally supported by sewer enterpris e rev enues and spec ial assessments, both of which have remained stable. All of the city's debt is fixed rate and it has no expos ure to derivative or swap contracts. PENSION COSTS EXPECTED TO REMAIN MANAGEABLE Monticello has a below average employee pension burden, based on unfunded liabilities for its participation in two multiple-employer cost-sharing plans administered by the state, the General Employees Retirement Fund (GERF), Public Employees Police and Fire Fund (PEPFF), and one single employer plan, the City of Monticello Fire Relief Association. In 2013, the city contributed $351,000 of contributions for all three plans, equivalent to a modest 2.6% of operating revenues . Moody 's three year average (2011-2013) adjusted net pension liability (ANPL) for the city, under our methodology for adjusting reported pension data, is $10.0 million, or 0.74 times operating revenues . Moody's ANPL reflects certain adjustments we make to improve the comparability of reported pension liabilities . The adjustments are not intended to replace the city 's reported liability information, but to improve comparability with other rated entities. We determined the city 's s hare of liability for GERF and PEPFF in proportion to its contributions to the plans . WHAT COULD MOVE THE RATING UP - Significant diversification of the city's tax base - Sustained improvement in the performance of the telec ommunications enterprise that reduces gov ernmental fund support WHAT COULD MOVE THE RATING DOWN - Material reduction of operating reserv es - Challenges with city's larges t tax payer - Any increased support from the city for the telecommunications utility KEY STATISTICS 2014 Full value: $1.4 billion 2014 Estimated full value per capita: $106,234 2008-2012 Median family income (as a % of US): 126% Fiscal 2013 Available General Fund Balance: 27% Fiscal 2008 to Fisc al 2013 Change in Available Fund Balance as a % of rev enues: -15.9% Fiscal 2013 General Fund Cash Balance: 29.6% Fiscal 2008 to Fisc al 2013 Change in Cash Balance as a % of revenues: -29.4% Institutional Framework : Aa Fiscal 2008 to Fisc al 2013 Average Operating Revenues / Operating Expenditures: 0.88 times Net Direc t Debt / Full Value: 2.0% Net Direc t Debt / Operating Revenues: 2.0 times 3-y ear av erage of Moody's ANPL / Full Value: 0.73% 3-y ear av erage of Moody's ANPL / Operating Rev enues: 0.74 times PRINCIPAL METHODOLOGY The principal methodology used in the general obligation rating was US Local Government General Obligation Debt published in January 2014. The principal methodology us ed in the lease rental rating was The Fundamentals of Credit Analysis for Lease-Backed Munic ipal Obligations published in December 2011. Please see the Credit Policy page on www.moodys .com for a copy of these methodologies. REGULATORY DISCLOSURES For ratings is sued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a s ubsequently iss ued bond or note of the same s eries or c ategory/c lass of debt or pursuant to a program for whic h the ratings are derived exclusively from existing ratings in acc ordance with Moody's rating practices . For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating ac tion for s ecurities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement prov ides certain regulatory disclosures in relation to the provisional rating as signed, and in relation to a definitiv e rating that may be assigned subsequent to the final iss uance of the debt, in each case where the trans action struc ture and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applic able, the related rating outlook or rating review. Please s ee www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please s ee the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each c redit rating. 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CityCouncilAgenda:11/10/14 1 7C.ConsiderationofadoptingResolution#2014-116authorizingpreparationof FeasibilityReportforFallonAvenuepathwayextensionandFallonAvenueand85th StreetImprovements,CityProjectNo.14Cxxx (SB) A.REFERENCEANDBACKGROUND: ResidentsoftheHunter’sCrossingdevelopmentsubmittedtheenclosedpetitiontothe CityCouncilattheOctober27,2014councilmeetingrequestingextensionof“apathway toconnecttheHuntersCrossingdevelopmenttothepathleadingtoPioneerParkon Fallon.”Inaddition,staffhadnotedatthemeetingthatadjacentstreetimprovements wereidentifiedintheCity’sCapitalImprovementPlanfor2015,andin2012aspartof theCity’sRuralRoadimprovementprogram.Theseadjacentstreetimprovementscould beconstructedwiththepathwayimprovementsatthesametime.Thestreet improvementstobeconsideredareasfollowsandasshownontheenclosedmap: FallonAvenueand85th Street(adjacenttoHuntersCrossing)–Improvementsare anticipatedtoincludeabituminousoverlay. 85th StreetImprovements(betweenTH25andEdmonsonAvewithinCitylimits) -Improvementsareanticipatedtoincludeareclamationandbituminouspaving fortheeasterlysegmentandabituminousoverlayforthewesterlysegment. MnDOTwillbereconstructing700feetof85th StreetfromTH25andaddingturn lanesattheintersectionin2015. FallonAvenueTrailExtension: TheParksCommissionidentifiedthepathwayextensionimprovementsasoneoftheir topfourpriorityprojectsfor2015,includingtheconstructionoftheHunter’sCrossing ParkthatCouncilauthorizedonOctober27,2014.TheCity’sParkandPathwayPlan identifiesapathwayalongFallonAvenueassecondarypathwayroutetoprovideaccess andconnectivitytothecommunity-wideparkandpathwaysystems.Inaddition,staff identifiedthispathwayextensionintheCity’sCapitalImprovementPlanfor2015.There isanexistingpathwaythatextendsalongFallonAvenuefromPioneerParktoFarmstead Avenue,towhichtheproposedtrailwillconnect.Staffhasreviewedpotentialpathway routesasshownontheenclosedmapandasdescribedbelow: Option1:ExtendthepathwayalongthewestsideofFallonAvenuefrom FarmsteadAvenueto87th StNE.Impactstotheadjacentwetland,ditchand backyardareasexistwiththisoption.Partofroadsideditchwouldneedtobe filledinandstormsewerinstalled.Inaddition,alargeoaktreewouldneedtobe removed.Wetlandimpactsexistwhetherthepathwaytrailisconstructedwitha boulevardortheroadwayisjustwidenedtoaccommodateanon-streettrail.The estimatedcostwiththisoptionisapproximately$85,000,whichincludesbuying wetlandcredittomitigatewetlandimpact. Option2:Constructthepathwaybetweenthesidelotlinesforoneortwoparcels withinKleinFarms6th Addition,thenextendthepathwaythroughtheCity-owned propertythatcontainsthepowerlineandpondingeasementstocontinuethe CityCouncilAgenda:11/10/14 2 pathwayalongFallonAvenueto87th Avenue.Pathwayeasementswouldneedto beacquiredbetweentheKleinFarmsproperties.Thereisanexisting50-foot widedrainageandutilityeasementalongthesesidelotsthatcouldaccommodate thepathway.Theestimatedcostwiththisoptionisapproximately$65,000,but couldvarydependingontheeasementacquisitioncost. Option3:Constructthepathwaybetweenthesidelotlinesfortheparcelswithin KleinFarms6th AdditionasnotedinOption2,thenextendthepathwaythrough theCity-ownedpropertythatcontainsthepowerlineandpondingeasementsand continuethepathwaybetweentheexistingsidelotlinesoftwolotsinHunters Crossingtotheexistingsidewalkon87th Avenue.Pathwayeasementswould needtobeacquiredfortheKleinFarmsandHuntersCrossingproperties.There areexistingdrainageandutilityeasementsalongthesesidelotsthatcould accommodatethepathway.Theestimatedcostwiththisoptionisapproximately $67,000,butcouldvarydependingontheeasementacquisitioncost. StaffrecommendstheOption2alignmentasthisposestheleastpropertyimpact,but wouldrequireaneasementforthepathway.IfCouncilapprovesthepathwayextensions, staffwouldcontactthepropertyownerstodiscussobtainingtheeasementbeforemoving forwardwithadesign.Ifeasementscannotbeobtained,Option1,toextendtheentire pathwayalongFallonAvenue,wouldbetheonlyoption. FallonAvenue/85th StreetImprovements: Inconjunctionwiththepathwayextension,staffhadidentifiedstreetimprovementsalong FallonAvenueand85th StreetthatwereincludedwiththeCity’sCapitalImprovement Planfor2015andin2012aspartoftheCity’sRuralRoadImprovementprogram.These adjacentstreetimprovementscouldbeconstructedwiththepathwayimprovementsatthe sametimealongwiththeSchoolBoulevardStreetandpathwayimprovements anticipatedfor2015construction.Thestreetimprovementsareshownontheenclosed mapandaredescribedbelow: FallonAvenueand85th StreetadjacenttoHuntersCrossing:In2012,theCity reclaimedandpavedFallonAvenuefromSchoolBoulevardtothepowerline corridor,justsouthofFarmsteadAvenue.TheremainingsegmentofFallon Avenueand85th StreetborderingtheHuntersCrossingdevelopmenthasbeen ratedandcouldbeacandidateforabituminousoverlayatthistimeinorderto extenditsusefullifepriortoamoresignificantimprovementneeded,suchas reclamationandpaving.Althoughthisroadwaycouldbeoverlaidatalatertime, itmaybetimelytocompletetheoverlaynowwiththeSchoolBoulevardandtrail improvementsidentifiedandtocompletethissectionofroadwaytocontinueto implementtheCity’spavementmanagementprogram.Completingthis improvementnowwillcompletemajorruralroadstreetimprovementsinthe southsectionoftheCitybetweenTH25andJasonAvenueandwouldbea continuationoftheRuralRoadprograminitiatedin2012. CityCouncilAgenda:11/10/14 3 85th Street(betweenTH25andEdmonsonAvewithinCitylimits):MnDOTwill bereconstructingapproximately700feetof85th StreetfromTH25totheeastand addingturnlanesattheintersectionin2015.Itmaybetimelytocompletethe remainingstreetimprovementon85thStreetfromthispointtoapproximately900 feetwestofEdmonsonAvenuewithintheCitylimits.Theeasterly1700foot segmentof85th StreetwestofEdmonsonAvenueisinpoorconditionandhas beenratedassuch.Improvementstothisroadwayareanticipatedtoincludea reclamationandbituminouspaving.Thewesterlyormiddlesegmentisa candidateforabituminousoverlay.ItshouldbenotedthatMnDOTwillbe closing85th Streetforanestimated6-7weeksperiodinMayandJune2015in ordertoconstructthewideningoftheeasthalfofTH25andthe85th Streetturn lanes.Itwouldbetimelytocompetetheremaining85thStreetimprovements duringthisperiod. Completingtheabovestreetimprovementsin2015,willcompletemajorruralroadstreet improvementsinthesouthsectionoftheCitybetweenTH25andJasonAvenueand wouldbeacontinuationoftheRuralRoadprograminitiatedin2012.TheCityhas severalstreetreconstructionprojectsslatedintheupcomingyears,soitmaymakesense tocompletetheseruralroadimprovementssoonerthanlateriffundingisavailable.The remainingroadwaystobeimprovedasidentifiedintheRuralRoadprograminclude: GillardAvenue,95th StNE,HaugAvenue,and90th StNEinthenortheastsectionofthe Cityand90th StreetinthesouthwestsectionoftheCity. TheestimatedcostfortheproposedstreetimprovementsforFallonAvenueand85th Streetis$250,000. Asnotedabove,thesestreetimprovementscouldbeconstructedatthesametimewiththe FallonAvenuepathwayimprovements,ifauthorized,alongwiththeSchoolBoulevard Streetandpathwayimprovementsanticipatedfor2015constructiontocreatealarger projectthatmaybenefitfromeconomiesofscale. StaffisrequestingCouncilauthorizepreparationofaFeasibilityReportaddressingthe pathwayandroadwayimprovementsdescribedabove.IfCouncildoesnotdecideto moveforwardwiththestreetimprovement,butwouldauthorizethepathway improvements,afeasibilitystudywouldnotberequired.Staffwouldpursueobtaining pathwayeasementsandthenreportbacktoCouncilwiththepathwayalignmentwhichis recommended,beforeproceedingwithpreparationoffinalplansandspecifications. Ifauthorized,theFeasibilityReportwilladdressthelocation,scope,existingconditions, proposedimprovements,estimatedcosts,availablefundingsources,preliminaryproject schedule,anddeterminationastothenecessity,feasibilityandcost-effectivenessofthe proposedimprovements.Anevaluationofthepavementandsub-surfaceisproposedwith theFeasibilityReporttodeterminethebestmethodofrepairandmostcost-effective methodtoextendthelifeoftheroadways.Theroadwaysmayalsobeacandidateforthe CityCouncilAgenda:11/10/14 4 Texasunderseal,whichisachipsealappliedunderthebituminousoverlay,andisa newermethodthathasdelayedtheonsetofcracking. A1.BudgetImpact:Asnotedabove,thepreliminarycostestimateforconstructing theproposedpathwayandstreetimprovementsin2015rangesbetweenis $315,000and$325,000.Thisincludesa10%contingencyand20%forindirect costs.Citystaffwillcompletethecostestimateandpreliminaryassessmentroll in-houseaspractical,withWSBandAssociatescompletingthepavementcores andsub-surfaceevaluation,topographicalsurveyasneeded,drawingsandreport preparation.Theestimatedcosttocompletethefeasibilityreportisestimatedat $15,000.ThepathwayportionoftheprojectwouldbefundedfromtheClosed BondFundandthestreetportionoftheprojectwouldbefundedfromtheCapital ProjectFundandreimbursedwithafuturestreetreconstructionbondsale. ItshouldbenotedthatFallonAvenueand85th Streetwithinthisprojectare“line roads”asdefinedwithintheOrderlyAnnexationAgreementwithMonticello Township,meaningthecenterlineoftheroadformsthepoliticalboundary betweentheCityandtheTownship.WhentheOrderlyAnnexationAgreement wasadoptedinMayof2005,theselineroadsbecametheCity’ssole responsibilitytobothmaintainandimprove.TheTownshipisthereforenot requiredtocontributefundingfortheproposedimprovementsand,assuch,staff willnotberequestingfundsfromtheTownshipfortheseimprovements. However,itisproposedthatapublichearingnoticeontheprojectbesentto benefittingtownshippropertieswhichwillprovidethelatitudetolevyan assessmentagainstthesepropertiesatsuchtimethatannexationoccurs.If annexationofabenefittingtownshippropertyoccurs,itislikelytohappenatthe timethepropertyownerseekstodevelopit.Underthisscenario,theCitywould havetheopportunitytoincorporatethepaymentoftheassessmentintoafuture developmentagreement. FundsforreconstructingFallonAveand85th StwerecollectedfromtheHunters Crossingdevelopmentandfundsforreconstructing85th Stwerecollectedfrom theFeatherstonedevelopmentandallocatedtotheCapitalProjectfund;thiscould beusedtofundthestreetportionoftheproject. A2.StaffWorkloadImpact:WSBandengineeringstaffwillcompletethe FeasibilityReport. B.ALTERNATIVEACTIONS: 1.MotiontoadoptResolution#2014-116authorizingWSB&Associatestoprepare aFeasibilityReportforFallonAvenuepathwayextensionandFallonAvenueand 85th StreetImprovements,CityProjectNo.14Cxxx,atanestimatedfeeof $15,000. CityCouncilAgenda:11/10/14 5 2.MotiontoadoptResolution#2014-116authorizingWSB&Associatestoprepare apreliminarydesignfortheFallonAvenuepathwayextension,CityProjectNo. 14Cxxx,atanestimatedcostlessthanthefeeforthefullprojectasproposed. 3.MotiontoadoptResolution#2014-116authorizingWSB&Associatestoprepare aFeasibilityReportforFallonAvenueand85th StreetImprovements(withoutthe pathwayextension),CityProjectNo.14Cxxx,atanestimatedcostlessthanthe feeforthefullprojectasproposed. 4.MotiontodenyadoptionofResolution#2014-116atthistime. C.STAFFRECOMMENDATION: CitystaffrecommendsapprovingAlternative#1forreasonsnotedherein. D.SUPPORTINGDATA: Resolution#2014-116(draft) ProjectLocationMap-TrailImprovements ProjectLocationMap-StreetImprovements ResidentPetitionforHuntersCrossingtrailconnection CITYOFMONTICELLO WRIGHTCOUNTY,MINNESOTA RESOLUTIONNO.2014-116 AUTHORIZINGFEASIBILITYSTUDYFORFALLONAVENUEPATHWAY EXTENSIONANDFALLONAVENUEAND85TH STREETIMPROVEMENTS CITYPROJECTNO.14CXXX WHEREAS,itisproposedtomakeimprovementstoFallonAvenueand85th Streetadjacentto HuntersCrossingtoincludeabituminousoverlay;tomakeimprovementsto85th Streetto includeareclamationandbituminouspavingfortheeasterlysegmentandabituminousoverlay forthewesterlysegmentof85th Street;toextendapathwayconnectionbetweenHunters CrossingdevelopmenttothepathleadingtoPioneerParkonFallonAvenue;todoother necessaryappurtenantwork;andtoassessthebenefittingpropertiesforalloraportionofthe costoftheimprovements,pursuanttoMinnesotaStatutes,Chapter429;and WHEREAS,suchFeasibilityReportwilladdressthelocation,scope,existingconditions, proposedimprovements,estimatedcosts,availablefundingsources,preliminaryproject schedule,anddeterminationastothenecessity,feasibility,andcost-effectivenessofthe proposedimprovements; NOWTHEREFORE,BEITRESOLVEDBYTHECITYCOUNCILOFMONTICELLO, MINNESOTA:ThatthefeasibilitystudyforproposedimprovementsbereferredtoWSB& Associates,andthattheEngineerisinstructedtoreportbacktotheCouncilwithallconvenient speedadvisingtheCouncilinapreliminarywayastowhethertheproposedimprovementis necessary,cost-effective,andfeasible;whetheritshouldbestbemadeasproposedorin connectionwithsomeotherimprovement;andtheestimatedcostoftheimprovementas recommended. ADOPTEDBY theMonticelloCityCouncilthis10th dayofNovember,2014. CITYOFMONTICELLO ________________________________________ ClintHerbst,Mayor ATTEST: ____________________________________ JeffO’Neill,CityAdministrator LEGEND BITUMINOUS OVERLAY RECLAIM AND PAVE MN/DOT RECONSTRUCTION IN 2015 MN/DOT TO RECONSTRUCT WITH TURN LANES IN 2015 85TH STREET NE FA L L O N A V E N E LEGEND OPTION 1: IN FALLON AVE ROW/WETLAND IMPACTS OPTION 2: OBTAIN EASEMENT OPTION 3: OBTAIN EASEMENT EXISTING BITUMINOUS PATHWAY FALLON AVE BITUMINOUS PATHWAY OPTIONS EX I S T I N G P A T H T O P I O N E E R P A R K