MADISON METROPOLITAN SEWERAGE DISTRICT

Transcription

1 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner NOTICE OF COMMISSION MEETING PLEASE TAKE NOTICE that there will be a regular meeting of the Commission of the Madison Metropolitan Sewerage District at 8:00 a.m., on Thursday, April 25, 2013 in the Commission Room of the Operations Building at 1610 Moorland Road, Madison, Wisconsin The Commission will consider and may take action on the matters set forth on the attached Agenda. If any matter on the Agenda is to be considered in closed session of the Commission, please be advised that following the closed session the Commission will reconvene into open session for purposes of concluding its Agenda. Date: April 22, 2013 D. Michael Mucha, P.E. Chief Engineer and Director Any person who has a qualifying disability as defined by the Americans with Disabilities Act that requires the meeting or materials at the meeting to be in an accessible location or format must contact the Director at , 1610 Moorland Road, Madison, Wisconsin, at least twenty four hours prior to the commencement of the meeting so that any necessary arrangements can be made to accommodate each request. 1. Opening (8:00 AM 8:15 AM) A. Call to Order B. Welcome guests and visitors C. Announcements Introduction of IT Network Technician: Matt Beckler (started April 2, 2013) Introduction of Relief Operator Jake Schinderle (started April 2, 2013) 2. Appearances by the Public (8:15 8:16 AM) 3. Consent Calendar (8:16 AM 8:17 AM) Approval of Commission Meeting Minutes from Review and Approval of Sewer Extension Plans (8:17 8:30 AM) Sauser Click Here: Commission Agenda Report Pumping Station 18, MMSD Westlawn Heights Phase 1, Village of Cottage Grove 2013 Public Works Improvements, Village of Waunakee Kilkenny Farms Phase 1B, Village of Waunakee Merrill Crest Drive Assessment District 2013, City of Madison

2 Secret Places Phase 9, City of Madison Eighth Addition to Blackhawk Subdivision Phase 7, City of Madison Linden Park Phase 10, City of Madison 5. Adoption of Municipal Obligation Resolution Authorizing the Issuance and Sale up to $8,191,338 General Obligation Sewerage System Promissory Notes, Series 2013A and Providing for Other Details and Covenants with Respect Thereto for the CWF Loan for the Northeast Interceptor SEI to FEI Relief/Replacement (8:30 8:45 AM) Brochtrup Click Here: Commission Agenda Report Click Here: Resolution 6. STUDY SESSION: SPACE NEEDS & PLANNING UPDATE AND FINAL RECOMMENDATIONS Presentation by Bray Architects (8:45 AM 9:15 AM) Borelli Click Here: Commission Agenda Report 7. Phosphorus Management Strategy (9:15 AM 9:30 AM) Taylor Click Here: Commission Agenda Report 8. Oral Reports and Updates (9:30 AM 9:45 AM) Staff A. Operations Report Nehm Click Here: March Plant Performance Data Click Here: March Plant Flow Data B. CARPC Update C. Chief Engineer and Director Report Mucha Meeting Schedule as of 4/22/13 9. Convene in Closed Session in Accordance with 19.85(1)(c) of the Wisconsin Statutes for Purposes of Developing Negotiating Strategies for Collective Bargaining with the Local 60, AFSCME, AFL CIO, for the Contract that Expires December 31, (9:45 AM 10:15 AM) Mucha Click Here: Commission Agenda Report 10. Reconvene in Open Session (10:15 AM 10:16 AM) Commission 11. Discussion and actions, if any, related to matters discussed in closed session Commission (10:16 AM 10:20 AM) 12. Future Agenda Topics (10:20 AM 10:22 AM) Commission 13. Other Business Allowed by Law (10:23 AM 10:24 AM) Commission 14. Adjournment (10:24 AM 10:25 AM) Commission

3 Meeting of the Commissioners of the Madison Metropolitan Sewerage District Thursday, April 11, :00 a.m. MMSD Commission Board Room, 1610 Moorland Road, Madison, WI Present: Commissioner Caryl Terrell (via teleconference call) Commissioner Tom Hovel Commissioner Ezra Meyer Commissioner Topf Wells Commissioner Hendrick (8:13 AM) Commission Meeting Call to order: Commissioner Hovel called the meeting to order at 8:02 a.m. 1. Opening A. Welcome Guests 1. Mike Dailey, City of Madison 2. Sharon Peters, EMA, Inc. 3. Jack Geisenhoff, EMA, Inc. B. Announcements Dylan Bahr, a new Building and Grounds employee, and Hank Richardson, the new Asset Information Specialist, were introduced to the Commission. 2. Appearances by the Public None. 3. Consent Calendar Discussion: The Commission Meeting Minutes of March 28, 2013, the General Account Cash Statement as of April 4, 2013, and the Construction Account Cash Statement as of April 4, 2013 were reviewed and placed on file. The General Account Cash Statement shows an available cash balance through General Account Check No in the

4 amount of $8,789.11; with adjustments of $ and subsequent receipts totaling $1, ; less disbursements of $1,214, with a resulting cash balance of $5, The Construction Account Cash Statement shows an available cash balance through Construction Account Check No in the amount of $4,758.42; and subsequent receipts totaling $1,394,564,.33; less disbursements of $1,394, with a resulting cash balance of $4, Action: Commissioner Wells moved, seconded by Commissioner Meyer that the Commission approve the Consent Calendar. Motion carried 4 0 (Commissioner Hendrick not present for the vote). 4. Consideration of Order to Annex Lands in the Village of Cottage Grove and the Village of Waunakee (Subjects of the Annexation Hearing) Presenter: Attorney, Dan Hardy Description: Attorney Hardy presented a draft Order of Annexation for lands in the Village of Cottage Grove and the Village of Waunakee that were the subject of the March 28, 2013 public hearing. Discussion: Attorney Hardy confirmed questions and requested that the Order to Annex Lands in the Villages of Cottage Grove and Waunakee be approved. Action: Commissioner Wells moved, seconded by Commissioner Terrell that the Order of Annexation be approved as written. Motion carried 4 0 (Commissioner Hendrick not present for the vote). 5. Review & Approval of Sewer Extension Plans Presenter: Curt Sauser, Engineering Technician Description: The following sewer extension plans were reviewed and placed on file: Cathedral Point=Phase 3A, City of Verona Lake Mendota Drive ( ) Sanitary Assessment District, City of Madison Dayton St. Assessment District 2013, City of Madison Hammersley Road Pacific Cycle, City of Madison 2013 Marshall Court Street and Sanitary Sewer Improvements, Village of Shorewood Hills Action: Commissioner Wells moved, seconded by Commissioner Meyer that the following resolutions be adopted: Attachment: R1 Cathedral Point=Phase 3A, City of Verona Attachment: R2 Lake Mendota Drive ( ) Sanitary Assessment District, City of Madison

5 Attachment: R3 Dayton St. Assessment District 2013, City of Madison Attachment: R Hammersley Road Pacific Cycle, City of Madison Attachment: R Marshall Court Street and Sanitary Sewer Improvements, Village of Shorewood Hills Motion carried unanimously. 6. Approval of 1 st Quarter 2013 Sewer Service Bills Presenter: Todd Gebert, Collections System Engineer Description: Mr. Gebert reported that sewer service charges for the First quarter of 2013 have been calculated in the amount of $6,578, Discussion: The service charges are approximately $158,000 above the budgeted value for the first quarter. Mr. Gebert displayed a chart showing the breakdown of the revenue surplus in the first quarter among the seven billable parameters. Actual revenues for all four pollutant parameters (CBOD, TSS, TKN, and TP) are slightly above the budgeted values for the first quarter. Actual revenue for volume is approximately $80,000 above the budgeted value for the first quarter. Influent flow to the plant steadily increased throughout the first quarter due to a combination of high snow amounts, warm temperatures, and large rain events in the months of January and March. Action: Commissioner Wells moved, seconded by Commissioner Meyer that the First quarter 2013 sewer service bills be approved as presented. Motion carried unanimously. 7. Pumping Station 18 Project Update Presenter: Bruce Borelli, Director of Engineering Description: Mr. Borelli presented an update on the status of the Pumping Station 18 project. Discussion: Mr. Borelli presented information to the Commission related to the Pumping Station 18 Project. He covered the need for the project, history of the site, detailed design considerations, building highlights, projected costs, and the current project schedule. Action: None.

6 8. Study Session: Staffing Study Recommendations Presenter: Paul Nehm, Director of Operations and Maintenance, Sharon Peters, EMA, Inc., and Jack Geisenhoff, EMA, Inc. Description: Presentation and discussion related to the recent Staffing Study. Discussion: Before the presentation began, Mr. Mucha noted that the EMA Staffing Study looks at the capacity that will be needed to meet the needs of the District as it addresses new facilities and new initiatives. That capacity is being defined in terms of full time equivalents (FTE). Jack Geisenhoff and Sharon Peters of EMA, Inc. were introduced and gave a presentation on the status of the study. They described the methodology that was used to project additional capacity needs. Those needs were identified as being equivalent to eight FTEs. Mr. Geisenhoff and Ms. Peters also presented an analysis method that could be used to increase the efficiency of the current and future workforce by looking at ways to eliminate tasks, reduce the frequency of tasks, shift tasks to other workgroups, or use non District employees to perform the tasks. District management will review these options when evaluating ways to meet capacity needs. Action: None. 9. Oral Reports and Updates A. Topic: Capital Projects Update Presenter: Mike Simon, Assistant Chief Engineer and Director of Planning Report/Update: Mr. Simon provided an update on the status of the Eleventh Addition. He highlighted problems with the new substation facility and their pending resolutions. Mr. Simon then provided an update on other ongoing projects including the Northeast Interceptor FEI to SEI project, for which he showed some recent project pictures. Action: None. B. Topic: Commission Discussion CARPC Update. Presenter: Commission. Report/Update: No report. Action: None. C. Topic: Chief Engineer and Director Report Presenter: Michael Mucha, Chief Engineer and Director Report/Update: Mr. Mucha noted that the request had been met to send a community letter related to the financial status of MMSD to all community customers. The letter had been requested at the 3/28/13 Commission Meeting. Action: None.

7 10. Convene in Closed Session in Accordance with the (1)(c) of the Wisconsin Statues for Purposes of Developing Negotiating Strategies for Collective Bargaining with the Local 60, AFSCME, AFL CIO, for the Contract that Expires December 31, Action: Commissioner Wells moved, seconded by Commissioner Hendrick to convene into closed session pursuant to section 19.85(1)(c) of the Wisconsin Statutes in order to consider employment, promotion, compensation or performance evaluation data of certain public employee(s). Commissioner Meyer, Aye Commissioner Terrell, Aye Commissioner Hendrick, Aye Commissioner Wells, Aye Commissioner Hovel, Aye Nays: None. Motion carried unanimously. 11. Reconvene in Open Session Action: Commissioner Meyer moved, seconded by Commissioner Wells that the Commission reconvene in open session. Commissioner Meyer, Aye Commissioner Terrell, Aye Commissioner Hendrick, Aye Commissioner Wells, Aye Commissioner Hovel, Aye Nays: None. Motion carried unanimously. 12. Discussion and Actions, If Any, Related to Matters Discussed in Closed Session Action: None. 13. Future Agenda Topics Action: None. 14. Other Business Allowed by Law Action: None.

8 15. Adjournment Action: Commissioner Wells moved, seconded by Commissioner Meyer that the Commission meeting be adjourned. Motion carried unanimously. Regular Meeting of the Commissioners April 11, 2013 Ezra J. Meyer, Secretary Future Meetings: Thursday, April 25, :00 a.m. Commission Meeting, and Study Session Thursday, May 16, :00 a.m. Regular Commission Meeting Thursday, May 30, :00 a.m. Regular Commission Meeting & Study Session

9 Attachment: R1 RESOLUTION NO: 1 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for Cathedral Point Phase 3A, in the City of Verona on March 28, 2013, by Kevin Pape, D Onofrio Kottke and Associates, Inc., and WHEREAS, the current submittal referred to as Cathedral Point Phase 3A replaces and voids plans which were previously approved by MMSD on August 16, 2012, MMSD plan number , titled Cathedral Point Phase 3, and WHEREAS, the project consists of installing 2,991 feet of 8 inch sanitary sewer on Chad s Crossing, Sophia Drive, Whispering Pines Way, Winchester Pass and Salisbury Lane, and WHEREAS, the proposed sanitary sewer extensions will connect to the City of Verona s sewerage facilities and MMSD s Nine Springs Valley/Pump Station 17 Service Area, and WHEREAS, the lands to be immediately served are Lots , , , , , , and Outlot 9 of the plat of Cathedral Point, and WHEREAS, Outlot 9 of the plat of Cathedral Point is dedicated to the public for storm water management and sanitary sewer infrastructure, is in the environmental corridor and is recognized and mapped in the Water Quality Plan as permanent open space, and WHEREAS, plan review fees are due, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated March 26, 2013, stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Cathedral Point Phase 3A, in the City of Verona, submitted on March 28, 2013, by Kevin Pape, D Onofrio Kottke and Associates, Inc., be approved subject to the following conditions: 1. That the City of Verona shall pay the plan review fee of $1, to the MMSD within 30 days of receiving an invoice for the fee. 2. That MMSD sewer connection fees for Outlot 9 of the plat of Cathedral Point are deferred.

10 3. That prior to connection of sewers serving said lands to sewers within the public sewerage system, the City of Verona shall have paid to MMSD the sum of $50, for payment of $42, in Nine Springs Valley/Pump Station 17 Service Area interceptor connection charges and $7, in treatment plant connection charges; said lands being Lots , , , , , , and OL9 of the plat of Cathedral Point. 4. That interceptor and treatment plant connection charges are adjusted at the beginning of each calendar year and said connection charges will be due based on the rate for the year in which the payment is made. 5. That, if said interceptor and treatment plant connection charges for the lands to be served remain unpaid after connection of the said sewer extensions to sewers within MMSD s system, appropriate interest on the unpaid balance shall be charged to the City of Verona by MMSD. 6. That the City of Verona shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design. 7. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 8. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on April 11, 2013.

11 Attachment: R2 RESOLUTION NO: 2 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for Lake Mendota Drive ( ) Sanitary Assessment District, City of Madison, on April 3, 2013, by Mark Moder, City Engineering Division, and WHEREAS, the project consists of replacing 189 feet of 8 inch sanitary sewer on Lake Mendota Drive on the City s west side. The existing sewer is located under 2 houses and is being relocated to the right of way, and WHEREAS, the proposed sanitary sewer extension will connect directly to MMSD manhole which is part of MMSD s West Interceptor, and WHEREAS, no new areas are being served and no additional flows are anticipated, and WHEREAS, interceptor connection charges for the areas being served have been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated April 3, 2013 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Lake Mendota Drive ( ) Sanitary Assessment District, City of Madison, submitted on April 3, 2013, by Mark Moder, City Engineering Division, be approved subject to the following conditions: 1. That the City of Madison shall pay the plan review fee of $1, to the MMSD within 30 days of receiving an invoice for the fee. 2. That the City of Madison be responsible for contacting Ray Schneider at MMSD for inspection a minimum of 3 days prior to making the connection to MMSD MH That the City of Madison shall abandon the existing 6 direct connection at station with a watertight plug upon installation of the new sewer. 4. That the City of Madison shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design.

12 5. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 6. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on April 11, 2013.

13 Attachment: R3 RESOLUTION NO: 3 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (MMSD) for East Dayton Street and North Brearly Street Assessment District 2013, City of Madison, on April 3, 2013, by Mark Moder, City Engineering Division, and WHEREAS, the project consists of replacing 3,446 feet of sanitary sewer on East Dayton Street and North Brearly Street, in the Tenney Lapham Neighborhood on the City s Isthmus. The existing sewer is in poor condition and is being replaced in conjunction with the street reconstruction project, and WHEREAS, a variance is being requested from the DNR by the City of Madison for some sewers that do not meet minimum slope requirements, and WHEREAS, the Madison Sewer Utility operates an aggressive sewer maintenance program and believes they can accommodate the new sewers with less than minimum slopes, and WHEREAS, the proposed sanitary sewer extension will connect to the City of Madison s sewerage facilities and MMSD s East Interceptor, and WHEREAS, no new areas are being served and no additional flows are anticipated, and WHEREAS, interceptor connection charges for the areas being served have been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated April 3, 2013 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for East Dayton Street and North Brearly Street Assessment District 2013, City of Madison, submitted on April 3, 2013, by Mark Moder, City Engineering Division, be approved subject to the following conditions: 1. That the City of Madison shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design.

14 2. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 3. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on April 11, 2013.

15 Attachment: R4 RESOLUTION NO: 4 WHEREAS, plans for sanitary sewer extension were submitted to the Madison Metropolitan Sewerage District (MMSD) for the Hammersley Road (Pacific Cycle), City of Madison, on April 4, 2013 by Mark Moder, City Engineering Division, and WHEREAS, the project consists of relocating sewer to accommodate a building addition by installing 373 feet of 8 inch PVC sanitary sewer on Hammersley Road and within an easement in the Orchard Ridge neighborhood on the City s southwest side, and WHEREAS, the lands to be served are three parcels located at 4817, 4902 and 4908 Hammersley Road, and WHEREAS the sewer extension shall connect to the City of Madison s sewerage facilities and MMSD s Southwest Interceptor, and WHEREAS, plan review fees are due, and WHEREAS, interceptor connection charges for the lands to be served have been paid, and WHEREAS, treatment plant connection charges for the lands to be served have not been paid, and WHEREAS, the subject property has expanded its parking lot into the US Highway 12 right ofway owned by the Wisconsin Department of Transportation, and WHEREAS, interceptor and treatment plant connection charges have not been paid for the area of parking lot expansion, and WHEREAS, MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission dated April 8, 2013 stating the Regional Planning Commission staff has determined that the sewer extension plans are consistent with the urban service area provisions of the Dane County Water Quality Plan and Dane County Land Use and Transportation guide, and WHEREAS, the Chief Engineer and Director of MMSD has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Hammersley Road (Pacific Cycle), City of Madison, submitted on April 4, 2013, by Mark Moder, City Engineering Division, be approved subject to the following conditions:

16 1. That City of Madison shall pay the plan review fee of $1, to the MMSD within 30 days of receiving an invoice for the fee. 2. That prior to connection of sewers serving said lands to the public sewerage system, the City of Madison shall have paid to MMSD $ for payment of treatment plant connection charges; said lands being parcels located at 4817, 4902 and 4908 Hammersley Road. 3. That the area of parking lot expansion into the highway right of way may be subject to additional interceptor and treatment plant connection charges. 4. That interceptor and treatment plant connection charges are adjusted at the beginning of each calendar year and said connection charges will be due based on the rate for the year in which the payment is made. 5. That, if said interceptor and treatment plant connection charges for the lands to be served remain unpaid after connection of the said sewer extensions to sewers within MMSD s system, appropriate interest on the unpaid balance shall be charged to the City of Madison by MMSD. 6. That the City of Madison shall require the presence of an engineer or an inspector on the construction of said sewer extensions, who shall make a record showing in detail the construction as built, and shall furnish MMSD with as built plans in the case of any significant deviations from the original design. 7. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 8. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR reapproval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on April 11, 2013.

17 Attachment: R5 RESOLUTION NO: 5 WHEREAS, plans for sanitary sewer replacement were submitted to the Madison Metropolitan Sewerage District (MMSD) for 2013 Marshall Court Street and Utility Improvements in the Village of Shorewood Hills on March 29, 2013, by Mark Barden, Town & Country Engineering, and WHEREAS, the sanitary sewer mains are being replaced in conjunction with the street and utility reconstruction project. The sewers are aging, and in need of replacement, and WHEREAS, the project consists of replacing 660 feet of 8 inch sanitary sewer on Marshall Court, and WHEREAS, the proposed extensions will connect to the Village of Shorewood Hills s sewerage facilities and MMSD s West Interceptor, and WHEREAS, no new areas are being served, and no additional flows are anticipated, and WHEREAS, connection charges for the areas being served have been paid, and WHEREAS, the MMSD has received a sewer extension review letter # from the Capital Area Regional Planning Commission (CARPC) dated April 1, 2013 stating the CARPC staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the Dane County Water Quality Plan and the Dane County Land Use and Transportation Plan, and WHEREAS, the Chief Engineer and Director of the MMSD recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extension for 2013 Marshall Court Street and Utility Improvements, Village of Shorewood Hills, submitted on March 29, 2013, by Mark Barden, Town & Country Engineering, be approved subject to the following conditions: 1. That the Village of Shorewood Hills shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the MMSD with as built plans in the case of any significant deviations from the original design. 2. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the MMSD and with the applicable State of Wisconsin plumbing and sewerage codes. 3. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has

18 not been completed within the four year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held in the District office on April 11, 2013.

19 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner Lead Staff: Curt Sauser, Engineering Technician Commission Agenda Report Meeting of April 25, 2013 Sewer Extensions Requested Action: Request a motion to approve 7 sewer extension: A. Pumping Station 18, MMSD B. Westlawn Heights Phase 1, Village of Cottage Grove C Public Works Improvements, Village of Waunakee D. Kilkenny Farms Phase 1B, Village of Waunakee E. Merrill Crest Drive Assessment District 2013, City of Madison F. Secret Places Phase 9, City of Madison G. Eighth Addition to Blackhawk Subdivision Phase 7, City of Madison Financial Impact, Background, Analysis and Options: To be presented at commission meeting Next Steps Upon commission approval, MMSD will forward plans to DNR for consideration of approval.

20 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner Commission Agenda Report Meeting of April 25, 2013 Approval of Resolution Authorizing Promissory Notes for CWF Loan for the Northeast Interceptor SEI to FEI Relief/Replacement Lead Staff: Jeff Brochtrup, Director of Administration Requested Action: Adopt the resolution authorizing the issuance and sale of up to $8,191,338 General Obligation Sewerage System Promissory Notes for the Clean Water Fund (CWF) Loan for the Northeast Interceptor SEI to FEI Relief/Replacement project. Attachments: Attachment Resolution 1 Financial Impact: The adoption of the resolution commits the District to finance up to $8,191,338 of the project costs via a CWF loan. The interest rate on the loan would be 2.795%. Interest payments on the loan would begin on November 1, 2013 and are then due every May 1 st and November 1 st. Annual principal payments on the loan would begin May 1, The maximum annual principal and interest payment would be $535,854 if the District uses the maximum amount of the loan. During the 2013 budget work we assumed the maximum annual principal and interest payment for the project would be $563,000. Background: The District s 2013 Capital Projects Budget and Capital Improvements Plan anticipated funding this project with a Clean Water Fund Loan. The District s bond counsel, Thomas Griggs of Griggs Law Office, LLC, has prepared the resolution and related documents and has reviewed the Financial Assistance Agreement. Mr. Griggs, the District s long time bond counsel, was formerly with Godfrey & Kahn and has transitioned his practice to an independent company.

21 Analysis and Options Adopting the note resolution is an essential element of obtaining a Clean Water Fund (CWF) loan for the project. CWF financing for the project is part of the District s capital improvements plan. Failure to obtain financing for the project would leave us with inadequate funds to continue other capital improvement projects. Adopting the Note Resolution levies a property tax which the District abates by collecting the required debt service funds via service charges the year before the payments are due. Adopting the Note Resolution will allow for a loan closing on May 8, 2013 at which time the District expects to receive a payment of approximately $1.2 million. This payment will reimburse the District for planning, design, and construction costs for the project. Option 1: Adopt the Note Resolution. The loan would close on May 8, 2013 when the District would receive a first loan draw estimated to be $1.2 million. Staff recommends this option. Option 2: Choose not to adopt the Note Resolution and thereby decline CWF financing for the project. This option would leave us with inadequate funds to continue other capital improvement projects. Next Steps After adoption of the note resolution, we will proceed with the work needed to close the loan on May 8.

22 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $8,191,338 GENERAL OBLIGATION SEWERAGE SYSTEM PROMISSORY NOTES, SERIES 2013A AND PROVIDING FOR OTHER DETAILS AND COVENANTS WITH RESPECT THERETO WHEREAS, the Madison Metropolitan Sewerage District, Dane County, Wisconsin (the "Municipality") owns and operates a sewerage system (the "System") which is operated for a public purpose as a public utility by the Municipality; and WHEREAS, certain improvements to the System are necessary to meet the needs of the Municipality and the residents thereof, consisting of the construction of a project (the "Project") assigned Clean Water Fund Program Project No by the State of Wisconsin Department of Natural Resources (the "Department of Natural Resources"), and as defined in the Department of Natural Resources approval letters for the Plans and Specifications of the Project, or portions thereof, issued under Section of the Wisconsin Statutes, and assigned No. S dated November 29, 2012; and WHEREAS, under the provisions of Chapter 67.12(12) of the Wisconsin Statutes, any Municipality (as defined in Section 67.01(5) of the Statutes) may, by action of its governing body, provide for the acquisition, planning, design, construction, development, extension, enlargement, renovation, rebuilding, repair or improvement of land, water, properties, buildings, equipment or facilities from the proceeds of promissory notes which are general obligations of the Municipality; and WHEREAS, the Municipality deems it to be necessary, desirable and in its best interest to authorize and sell general obligation sewerage system promissory notes of the Municipality pursuant to the provisions of Section 67.12(12) of the Wisconsin Statutes, to pay the cost of the Project; and WHEREAS, other than "preliminary expenditures" as defined in Treas. Reg. 26 CFR in an amount not exceeding 20% of the principal amount of the notes authorized to be issued by this resolution, or other than a "de minimis" amount as defined in Treas. Reg. 26 CFR in an amount not exceeding the lesser of $100,000 or 5% of the principal amount of the notes authorized to be issued by this resolution, all of the proceeds loaned to the Municipality will be used for Project costs paid by the Municipality subsequent to (i) the date which is 60 days prior to the date on which the Municipality adopted a "declaration of intent" pursuant to Treas. Reg. 26 CFR stating its intent to reimburse other funds of the Municipality previously used to finance the Project, or (ii) the date on which the notes authorized herein are issued; and WHEREAS, the Municipality currently has general obligation debt outstanding in the aggregate principal amount of $109,006, as follows:

23 Bond Issue Date of Issue Original Principal Amount Principal Amount Outstanding 1994 Sewerage System Improvement Bonds 11/22/94 $ 1,200, $ 163, Sewerage System Improvement Bonds 10/11/95 2,753, , Sewerage System Improvement Bonds 02/28/96 15,974, ,144, Sewerage System Improvement Bonds 06/11/97 4,992, ,507, Sewerage System Improvement Bonds 11/22/00 1,886, , Sewerage System Improvement Bonds 05/09/01 2,190, ,087, A Sewerage System Promissory Notes 07/23/03 7,674, ,941, B Sewerage System Promissory Notes 08/27/03 35,427, ,935, A Sewerage System Promissory Notes 10/12/05 332, , A Sewerage System Promissory Notes 09/13/06 1,892, ,295, A Sewerage System Promissory Notes 12/12/07 2,826, ,173, A Sewerage System Promissory Notes 11/12/08 9,143, ,636, A Sewerage System Promissory Notes 05/26/10 8,964, ,177, A Sewerage System Promissory Notes 02/22/12 50,362, ,362,380.00** 2012B Sewerage System Promissory Notes 05/23/12 2,955, ,955,949.00*** Total $169,878, $109,006, ** As of April 1, 2013 $37,345, has been drawn against the authorized amount. *** As of April 1, 2013 $2,647, has been drawn against the authorized amount. NOW, THEREFORE, be it resolved by the Governing Body of the Municipality that: Section 1. Definitions. The following terms shall have the following meanings in this Resolution unless the text expressly or by implication requires otherwise: (a) "Act" means Chapter 67 of the Wisconsin Statutes; (b) "Closing Date" means the date of closing on the Clean Water Fund Program loan when the Notes are delivered to the State pursuant to the Financial Assistance Agreement; (c) "Debt Service Fund" means the Debt Service Fund of the Municipality, created by this resolution, pursuant to Section of the Act; (d) "Financial Assistance Agreement" means the Financial Assistance Agreement by and between the Municipality and the State of Wisconsin by the Department of Natural Resources and the Department of Administration pursuant to which the Notes are to be issued and sold to the State, dated as of the Closing Date, substantially in the form attached hereto and incorporated herein by reference; (e) "Fiscal Year" means the twelve-month period ending on each December 31; (f) "Governing Body" means the Madison Metropolitan Sewerage District Commission, or such other body as may hereafter be the chief legislative body of the Municipality; (g) "Municipal Treasurer" means the Treasurer of the Municipality, who shall act as Note Registrar and Paying Agent; (h) "Municipality" means Madison Metropolitan Sewerage District; 2

24 (i) "Notes" mean the $8,191,338 General Obligation Sewerage System Promissory Notes, Series 2013A of the Municipality dated as of the Closing Date, authorized to be issued by this Resolution; (j) the Notes; "Note Registrar" means the Municipal Treasurer who shall act as Paying Agent for (k) "Note Year" means the twelve-month period ending on each May 1; (l) "Project" means the Project described in the preamble to this Resolution. All elements of the Project are to be owned and operated by the Municipality as part of the System as described in the Financial Assistance Agreement; (m) "Record Date" means the close of business on the fifteenth day of the calendar month next preceding any principal or interest payment date; and (n) "System" means the entire sewerage system of the Municipality, specifically including that portion of the Project owned by the Municipality and including all property of every nature now or hereafter owned by the Municipality for the collection, transmission, treatment and disposal of domestic and industrial sewerage and waste, including all improvements and extensions thereto made by the Municipality while any of the Notes remain outstanding, including all real and personal property of every nature comprising part of or used or useful in connection with such sewerage system and including all appurtenances, contracts, leases, franchises, and other intangibles. Section 2. Authorization of the Notes and the Financial Assistance Agreement. For the purpose of paying the cost of the Project (including legal, fiscal, engineering and other expenses), there shall be borrowed on the full faith and credit of the Municipality up to the sum of $8,191,338; and fully registered general obligation sewerage system promissory notes of the Municipality are authorized to be issued in evidence thereof and sold to the State of Wisconsin Clean Water Fund Program in accordance with the terms and conditions of the Financial Assistance Agreement, which is incorporated herein by this reference; and the President (or in his/her absence, the Vice President) and the Secretary (or in his/her absence, the Vice President) of the Municipality are hereby authorized, by and on behalf of the Municipality, to execute the Financial Assistance Agreement. Section 3. Terms of the Notes. The Notes shall be designated "General Obligation Sewerage System Promissory Notes, Series 2013A" (the "Notes"); shall be dated as of the Closing Date; shall be numbered one and upward; shall bear interest at 2.795% per annum, calculated on the basis of a 360-day year made up of twelve 30-day months; shall be issued in denominations of $0.01 or any integral multiple thereof; and shall mature on the dates and in the amounts as set forth in Exhibit B of the Financial Assistance Agreement as it is from time to time adjusted by the State based upon actual draws made by the Municipality. Interest on the Notes shall be payable semiannually on May 1 and November 1 of each year, commencing on November 1, The Notes shall not be subject to redemption prior to maturity except as provided in the Financial Assistance Agreement. 3

25 Section 4. Form, Execution, Registration and Payment of the Notes. The Notes shall be issued as registered obligations in substantially the form attached hereto as Exhibit A and incorporated herein by this reference. The Notes shall be executed in the name of the Municipality by the manual signatures of the President (or in his/her absence, the Vice President) and the Secretary (or in his/her absence, the Vice President, as Acting Secretary), and shall be sealed with its official or corporate seal, if any. The principal of, premium, if any, and interest on the Notes shall be paid by the Municipal Treasurer, who is hereby appointed as the Municipality's registrar (the "Note Registrar"). Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America by the Note Registrar. Payment of principal of the final maturity on the Note will be payable upon presentation and surrender of the Note to the Note Registrar. Payment of principal on the Note (except the final maturity) and each installment of interest shall be made to the registered owner of each Note who shall appear on the registration books of the Municipality, maintained by the Note Registrar, on the Record Date and shall be paid by electronic transfer or by check or draft of the Municipality and mailed to such registered owner at his or its address as appears on such registration books or at such other address as may be furnished in writing by such registered owner to the Note Registrar. Section 5. Note Proceeds. The sale proceeds of the Notes (exclusive of accrued interest and any premium received) shall, forthwith upon receipt, be placed in and kept by the Treasurer as a separate account of the Municipal Capital Projects Fund to be known as the "General Obligation Sewerage System Promissory Notes, Series 2013A, Borrowed Money Account" (hereinafter referred to as the "Borrowed Money Fund", which shall be the borrowed money fund as such term is defined in the Act). Monies in the "Borrowed Money Fund" shall be used solely for the purposes for which borrowed or for transfer to the Debt Service Fund as provided by law. Section 6. Tax Levy. (a) For the express purpose of paying the interest on the Notes as it falls due and also to pay and discharge the principal thereof at maturity, there is hereby levied upon all of the taxable property in the Municipality, in addition to all other taxes, a non-repealable, direct, annual tax in an amount sufficient for that purpose. This tax shall be for collection in the years 2014 through 2033, inclusive, and shall be in such amounts as are necessary to provide for the payment of the principal and interest on the Notes when due. This tax, based on an interest rate of 2.795%, shall be in the maximum amounts as set forth in Exhibit B to the Financial Assistance Agreement, or such lesser amounts as it is from time-to-time adjusted by the State based upon actual draws made by the Municipality. Said Exhibit B is attached hereto as Exhibit B. The actual tax carried onto the tax rolls each year shall equal the amount necessary to repay the actual principal amount drawn under the Notes, and any interest thereon, when due. The amount of tax carried into the tax roll may be reduced in any year by the amount of revenues of the Municipality's wastewater sewer service charge system which are appropriated and irrevocably deposited in the Debt Service Fund for the Notes. 4

26 (b) The Municipality shall be and continue without power to repeal such levy or obstruct the collection of said tax until all such payments have been made or provided for. After the issuance of the Notes, said tax shall be, from year to year, carried into the tax rolls of the Municipality and collected as other taxes are collected, provided that the amount of tax carried into said tax rolls may be reduced in any year by the amount of any surplus money in the Debt Service Fund created in Section 7 hereof. (c) If at any time there shall be on hand insufficient funds from the aforesaid tax levy to meet principal and/or interest payments on said Notes when due, the requisite amounts shall be paid from other funds of the Municipality then available, which sums shall be replaced upon the collection of the taxes herein levied. Section 7. Debt Service Fund. The proceeds of the taxes levied pursuant to Section 6 above, when collected by the Municipal Treasurer, shall be placed and kept by the Municipal Treasurer as a separate fund irrevocably pledged for paying the principal of and interest on the Notes so long as any such Notes shall remain outstanding, to be known as the General Obligation Sewerage System Promissory Notes, Series 2013A, Debt Service Fund (hereinafter referred to as "Debt Service Fund"). The accrued interest and any premium received at the time of delivery of the Notes shall be paid over to the Debt Service Fund. Interest on or principal of the Notes falling due at any time when there shall be on hand in the Debt Service Fund insufficient funds for the payment of such principal and interest shall be paid promptly when due from other funds of the Municipality. Section 8. Deposits and Investments. The Debt Service Fund shall be kept apart from monies in the other funds and accounts of the Municipality and the same shall be used for no purpose other than the prompt payment of principal of and interest on the Notes as the same becomes due and payable. All monies therein shall be deposited in special and segregated accounts in a public depository selected under Chapter 34 of the Wisconsin Statutes and may be temporarily invested until needed in legal investments subject to the provisions of Section and 67.10(3) of the Wisconsin Statutes. All income derived from such investments shall be regarded as revenues of the Municipality. No such investment shall be in such a manner as would cause the Notes to be "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or the Regulations of the Commissioner of Internal Revenue thereunder. An officer of the Municipality shall, on the basis of the facts, estimates and circumstances in existence on the date of closing, make such certifications as are necessary to permit the conclusion that the Notes are not "arbitrage bonds" under Section 148 of the Internal Revenue Code of 1986, as amended, or the Regulations of the Commissioner of Internal Revenue thereunder. Section 9. Operation of System; Municipality Covenants. It is covenanted and agreed by the Municipality with the owner or owners of the Notes, and each of them, that the Municipality will perform all of the obligations as set forth in the Financial Assistance Agreement. Section 10. Sale of Notes. The sale of Notes to the State of Wisconsin Clean Water Fund Program for the purchase price of up to $8,191,338, at par, is ratified and confirmed; and the 5

27 officers of the Municipality are authorized and directed to do any and all acts, including executing the Financial Assistance Agreement and the Notes as hereinabove provided, necessary to conclude delivery of the Notes to said purchaser, as soon after adoption of this Resolution as is convenient. The purchase price for the Notes shall be paid upon requisition therefor as provided in the Financial Assistance Agreement. Section 11. Application of Note Proceeds. The proceeds of the sale of the Notes shall be deposited by the Municipality into the "Borrowed Money Fund". The Borrowed Money Fund shall be used solely for the purpose of paying the costs of the Project (including capitalized interest, if any, on the Notes) as more fully described in the preamble hereof and in the Financial Assistance Agreement. Moneys in the Borrowed Money Fund shall be disbursed within three (3) business days of their receipt from the State of Wisconsin and shall not be invested in any interest-bearing account. Section 12. Amendment to Resolution. After the issuance of any of the Notes, no change or alteration of any kind in the provisions of this Resolution may be made until all of the Notes have been paid in full as to both principal and interest, or discharged as herein provided, except: (a) the Municipality may, from to time, amend this Resolution without the consent of any of the owners of the Notes, but only to cure any ambiguity, administrative conflict, formal defect, or omission or procedural inconsistency of this Resolution; and (b) this Resolution may be amended, in any respect, with a written consent of the owners of not less than two-thirds (2/3) of the principal amount of the Notes then outstanding, exclusive of Notes held by the Municipality; provided, however, that no amendment shall permit any change in the pledge of tax revenues of the Municipality or the maturity of any Note issued hereunder, or a reduction in the rate of interest on any Note, or in the amount of the principal obligation thereof, or in the amount of the redemption premium payable in the case of redemption thereof, or change the terms upon which the Notes may be redeemed or make any other modification in the terms of the payment of such principal or interest without the written consent of the owner of each such Note to which the change is applicable. Section 13. Defeasance. When all Notes have been discharged, all pledges, covenants and other rights granted to the owners thereof by this Resolution shall cease. The Municipality may discharge all Notes due on any date by irrevocably depositing in escrow with a suitable bank or trust company a sum of cash and/or bonds or securities issued or guaranteed as to principal and interest by the U.S. Government, or by a commission, board or other instrumentality of the U.S. Government, maturing on the dates and bearing interest at the rates required to provide funds sufficient to pay when due the interest to accrue on each of said Notes to its maturity or, at the Municipality's option, if said Note is prepayable to any prior date upon which it may be called for redemption, and to pay and redeem the principal amount of each such Note at maturity, or at the Municipality's option, if said Note is prepayable, at its earliest redemption date, with the premium required for such redemption, if any, provided that notice of the redemption of all prepayable Notes on such date has been duly given or provided for. Section 14. Rebate Fund. Unless the Notes are exempt from the rebate requirements of the Internal Revenue Code of 1986, as amended, the Municipality shall establish and maintain a separate account for the Notes to be known as the Rebate Fund. The sole purpose of the Rebate Fund is to provide for the payment of any rebate liability with respect to the Notes under 6

28 the relevant provisions of the Internal Revenue Code of 1986, as amended (the Code ), and the Treasury Regulations promulgated thereunder (the Regulations ). The Rebate Fund shall be maintained by the Municipality until all required rebate payments with respect to the Notes have been made in accordance with the relevant provisions of the Code and the Regulations. The Municipality hereby covenants and agrees that it shall pay to the United States from the Rebate Fund, at the times and in the amounts and manner required by the Code and the Regulations, the portion of the rebate amount (as defined in Section (b) of the Regulations) that is due as of each computation date (within the meaning of Section (e) of the Regulations). As of the date of this Resolution, the provisions of the Regulations specifying the required amounts of rebate installment payments and the time and manner of such payments are contained in Sections (f) and (g) of the Regulations, respectively. Amounts held in the Rebate Fund and the investment income therefrom are not pledged as security for the Notes and may only be used for the payment of any rebate liability with respect to the Notes. The Municipality may engage the services of accountants, attorneys or other consultants necessary to assist it in determining the rebate payments, if any, owed to the Unites States with respect to the Notes. The Municipality shall maintain or cause to be maintained records of determinations of rebate liability with respect to the Notes for each computation date until six (6) years after the retirement of the last of the Notes. The Municipality shall make such records available to the State of Wisconsin upon reasonable request therefor. Section 15. Continuing Disclosure. The officers of the Municipality are hereby authorized and directed, if requested by the State, to provide to the State of Wisconsin Clean Water Fund Program (the CWFP ) and to such other persons or entities as directed by the CWFP such ongoing disclosure regarding the Municipality's financial condition and other matters, at such times and in such manner as the CWFP may require, in order that securities issued by the Municipality and the CWFP satisfy rules and regulations promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended or may be amended from time to time imposed on brokers and dealers of municipal securities before the brokers and dealers may buy, sell, or recommend the purchase of such securities. Section 16. Resolution a Contract. The provisions of this Resolution shall constitute a contract between the Municipality and the owner or owners of the Notes, and after issuance of any of the Notes no change or alteration of any kind in the provisions of this Resolution may be made, except as provided in Section 12, until all of the Notes have been paid in full as to both principal and interest. The owner or owners of any of the Notes shall have the right in addition to all other rights, by mandamus or other suit or action in any court of competent jurisdiction, to enforce such owner's or owners' rights against the Municipality, the Governing Body thereof, and any and all officers and agents thereof including, but without limitation, the right to require the Municipality, its Governing Body and any other authorized body, to take any and all actions necessary to carry out all of the provisions and agreements contained in this Resolution. Section 17. Requirements of Municipality. The officers of the Municipality, staff of the Municipality, attorneys for the Municipality, financial consultants of the Municipality, or other agents or employees of the Municipality are hereby authorized to do all acts and things required of 7

29 them by this Resolution for the full, punctual and complete performance of all of the provisions of this Resolution. Section 18. Illegal or Invalid Provisions. In case any one or more of the provisions of this Resolution or any of the Notes shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this Resolution or of the Notes. Section 19. Conflicting Resolutions. All ordinances, resolutions, or orders, or parts thereof heretofore enacted, adopted or entered, in conflict with the provisions of this Resolution, are hereby repealed, and this Resolution shall be in effect from and after its passage. Passed: April 25, 2013 Approved: April 25, 2013 Attest: Ezra J. Meyer, Secretary Caryl E. Terrell, President 8

30 EXHIBIT A (Form of Note) REGISTERED UNITED STATES OF AMERICA REGISTERED NO. R-1 STATE OF WISCONSIN $8,191,338 COUNTY OF DANE MADISON METROPOLITAN SEWERAGE DISTRICT GENERAL OBLIGATION SEWERAGE SYSTEM PROMISSORY NOTE, SERIES 2013A Final Maturity Date Date of Original Issue May 1, 2033 May 8, 2013 REGISTERED OWNER: STATE OF WISCONSIN CLEAN WATER FUND PROGRAM KNOW ALL MEN BY THESE PRESENTS that the Madison Metropolitan Sewerage District, Dane County, Wisconsin, (the "Municipality") hereby acknowledges itself to owe and for value received promises to pay to the registered owner shown above, or registered assigns, solely from the fund hereinafter specified, the principal sum of an amount not to exceed EIGHT MILLION ONE HUNDRED NINETY ONE THOUSAND THREE HUNDRED THIRTY-EIGHT DOLLARS ($8,191,338) (but only so much as shall have been drawn hereunder, as provided below) on May 1 of each year commencing May 1, 2014 until the final maturity date written above, together with interest thereon (but only on amounts as shall have been drawn hereunder, as provided below) from the dates the amounts are drawn hereunder or the most recent payment date to which interest has been paid, at the rate of 2.795% per annum, calculated on the basis of a 360-day year made up of twelve 30-day months, such interest being payable on the first days of May and November of each year, with the first interest being payable on November 1, The principal amount evidenced by this Note may be drawn upon by the Municipality in accordance with the Financial Assistance Agreement entered by and between the Municipality and the State of Wisconsin by the Department of Natural Resources and the Department of Administration including capitalized interest transferred (if any). The principal amounts so drawn shall be repaid in installments on May 1 of each year commencing on May 1, 2014 in an amount equal to an amount which when amortized over the remaining term of this Note plus current payments of interest (but only on amounts drawn hereunder) at Two and Seven Hundred Ninety- Five Thousandths percent (2.795%) per annum shall result in equal annual payments of the total of principal and the semiannual payments of interest. The State of Wisconsin Department of Administration shall record such draws and corresponding principal repayment schedule on a cumulative basis in the format shown on the attached Exhibit A. Both principal and interest hereon are hereby made payable to the registered owner in lawful money of the United States of America. On the final maturity date, principal of this Note shall be payable only upon presentation and surrender of this Note at the office of the Municipal Treasurer. Principal hereof (except the final maturity) and interest hereon shall be payable by

31 electronic transfer or by check or draft dated on or before the applicable payment date and mailed from the office of the Municipal Treasurer to the person in whose name this Note is registered at the close of business on the fifteenth day of the calendar month next preceding such interest payment date. The Notes shall not be redeemable prior to their maturity, except with the consent of the registered owner. This Note is transferable only upon the books of the Municipality kept for that purpose at the office of the Municipal Treasurer, by the registered owner in person or its duly authorized attorney, upon surrender of this Note, together with a written instrument of transfer (which may be endorsed hereon) satisfactory to the Municipal Treasurer, duly executed by the registered owner or its duly authorized attorney. Thereupon a replacement Note shall be issued to the transferee in exchange therefor. The Municipality may deem and treat the person in whose name this Note is registered as the absolute owner hereof for the purpose of receiving payment of or on account of the principal or interest hereof and for all other purposes. This Note is issuable solely as a negotiable, fully-registered note, without coupons, and in denominations of $0.01 or any integral multiple thereof. This Note is issued for the purpose of providing for the payment of the cost of constructing improvements to the Sewerage System of the Municipality, pursuant to Article XI, Section 3 of the Wisconsin Constitution, Chapter 67, Wisconsin Statutes, and a resolution adopted on April 25, 2013, and entitled: "RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF UP TO $8,191,338 GENERAL OBLIGATION SEWERAGE SYSTEM PROMISSORY NOTES, SERIES 2013A AND PROVIDING FOR OTHER DETAILS AND COVENANTS WITH RESPECT THERETO." The principal of and interest on this Note is payable in lawful money of the United States of America as aforesaid, and for the prompt payment of the principal and interest on this Note, and for the levy of taxes sufficient for that purpose, the full faith, credit and resources of the Municipality are hereby irrevocably pledged. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Note have existed, have happened, and have been performed in due time, form and manner as required by law; that the indebtedness of the Municipality, including this Note and the issue of which it is a part, does not exceed any limitation, general or special, imposed by law; and that a valid, direct, annual irrepealable tax has been levied by the Municipality sufficient to pay the interest on this Note when it falls due and also to pay and discharge the principal hereof at maturity. 2

32 IN WITNESS WHEREOF, the Municipality has caused this Note to be signed by the signatures of its President (or in his/her absence, the Vice President) and Secretary (or in his/her absence, the Vice President, as Acting Secretary), and its corporate seal (or a true facsimile thereof) to be impressed (or imprinted) hereon, all as of the date of original issue specified above. MADISON METROPOLITAN SEWERAGE DISTRICT DANE COUNTY, WISCONSIN (SEAL) By: FORM OF NOTE Caryl E. Terrell, President By: FORM OF NOTE Ezra J. Meyer, Secretary 3

33 (Form of Assignment) FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto. (Please print or typewrite name and address, including zip code, of Assignee) Please insert Social Security or other identifying number of Assignee the within Note, and all rights thereunder, hereby irrevocably constituting and appointing Attorney to transfer said Note on the books kept for the registration thereof with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. Signature(s) guaranteed by: 4

34 EXHIBIT A TO NOTE $8,191,338 MADISON METROPOLITAN SEWERAGE DISTRICT DANE COUNTY, WISCONSIN GENERAL OBLIGATION SEWERAGE SYSTEM PROMISSORY NOTES, SERIES 2013A Amount of Date of Series of Principal Principal Disbursement Disbursement Bonds Repaid Balance $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5

35 EXHIBIT A TO NOTE (continued) PRINCIPAL REPAYMENT SCHEDULE Date Principal Amount May 1, 2014 $311, May 1, , May 1, ,898,.66 May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May 1, , May1, , May 1, , May 1, ,

36 Madison Metropolitan Sewerage District Project Clean Water Fund Program Loan Closing Date: May 8,2013 Exhibit B Payment Principal Interest Interest Principal & Bond Year Calendar year Date Pavment Rate Pavment Interest Debt Service Debt Servrce 1-Nov % 110, i0,022.i8 110,022.i8 1-May , o/o 114, , , Nov o/o 110, i0, May-'I5 319, o/o 110, , , Nov o/o 105, t0s,gs2.7o 53s, May , o/o 105, , , Nov o/o 1 01, , , May , o/o 101, , , Nov , , , May , o/o 96, , , '1-Nov % 91, , , l-may-1g 357, % 91, , , Nov % 86, , May , s% 86, , , Nov % 81, , , May , % 81, , s40, Nov % 76,074,25 76, , May , o/o 76, , , Nov o/o 70, , , May , o/o 70, , , Nov o/o 65, , , May , o/o 65, , , Nov o/o 59, , , May , % 59, , , Nov % 53, , , '1-May , %o 53, , , Nov o/o 47, , , May , o/o 47,400J5 492, , Nov o/o 41, , , May , ok 41, , , 'l-nov o/o 34, , , 'l -May-29 47A, o/o 34, , , Nov % 28, , May , o/o 28, , , Nov % 21, , , 'l-may , o/o 21, '18, , Nov o/o 14, , , May , % 14, , , Nov Yo 7, , , May , o./o 7, , , , Totals 8,191, ,608, ,799, ,799, '10,799, Net lnterest Rate Bond Years Average Life The above schedule assumes full disbursement of the loan on the loan closino date. 29-Mar-1 3 Wisconsin Deoartment of Administration 15-

37 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner Commission Agenda Report Meeting of April 25, 2013 Study Session: Space Needs and Planning Update Lead Staff: Bruce Borelli Director of Engineering Tim Stieve Project Engineer Bray Architects Requested Action: No Action Required. This is for informational purposes only and is intended to update the Commission on the current status of the Space Needs Project. Attachments: None. Financial Impact: The cost of the space needs study is $41,500. Estimated total project cost, including planning, design and construction of recommended spaces, is as follows: Total Cost Comments Planning: District & Consultant $90,000 Estimated at 1.0% of construction cost Design: District & Consultant $890,000 Estimated at 10.0% of construction cost Construction: District & Consultant $890,000 Estimated at 10.0% of construction cost Phase 1 New Construction $8.2M $9.6M 44,000 48,000 $200/SF Phase 2 Renovations $750K $900K 6,800 $130/SF Misc./Contingencies $200,000 Misc. costs/unknowns Total $11.0M $12.6M

38 Background: In August 2012, Bray Architects were retained to provide professional services associated with evaluating "non process" space needs at the Nine Springs Treatment Plant. Initial work focused on evaluating existing areas, including their uses, building sizes and conditions, adjacencies and interactions between Departments, and additional needs of the Departments. On December 13, 2012, Bray Architects completed this work and updated the Commission on their findings. Since then, Bray Architects have documented critical needs, identified major challenges, investigated solutions/alternatives, and determined the recommended course of action. This study session is intended to discuss findings, answer questions the Commission may have, and to obtain feedback from the Commission concerning space needs recommendations. Analysis and Options Bray Architects will provide a summary of their study, alternatives considered, and recommended improvements. Next Steps District staff and Bray Architects will incorporate any changes recommended by the Commission and finalize the Space Needs study. A design services agreement with Bray Architects will be initiated and brought before the Commission for approval. This is expected to occur in June. The 2014 Capital Budget will be updated as required to reflect estimated costs from the Space Needs study. Design of recommended facilities will begin in the summer of 2013 and continue through the spring of Construction is anticipated to begin in the summer of 2014 and last into 2015.

39 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner Lead Staff: Dave Taylor Director of Special Projects Requested Action: No action is required receive for information. Attachments: None. Financial Impact: No current financial impact on the District. Draft Commission Agenda Report April 25, 2013 Meeting Phosphorus Management Strategy Background: The commission receives monthly updates on key issues related to selecting a phosphorus management strategy. Analysis and Options Brief updates will be provided on water quality data associated with the USGS gaging stations in the pilot project area, progress toward developing a water quality monitoring program to support the full scale adaptive management project, work to better define the magnitude of phosphorus reductions and the associated cost for adaptive management, the April 29 th meeting of the Yahara WINs Strategic Planning Workgroup and Executive Committees, and other relevant topics. Next Steps 1. April 26 th meeting with DNR and Dane County to develop a process to account for phosphorus reductions achieved in the watershed between 2008 and present. 2. April 29 th meeting of Yahara WINs strategic planning workgroup and executive committee 3. May 8 th water quality monitoring meeting.

40 Madison Metropolitan Sewerage District Nine Springs Wastewater Treatment Plant Performance Data (Data from Flows&Performance&AerationQuery) Raw Wastewater (mg/l) Final Effluent (mg/l) Percent Removal Digester/Methane Gas Data (MCF/day) Process Air Usage (cubic feet) per per Pound per Pound Month BOD TSS TKN TP BOD TSS NH4 TP BOD TSS NH4 TP Produced Purchased Used Wasted Gallon BOD Removed TOD Removed Jan % 98.1% 99.8% 96.2% , Feb % 98.8% 99.8% 97.2% Mar % 98.1% 99.8% 96.3% Apr % 98.3% 99.5% 96.5% , May % 98.7% 99.8% 95.7% , Jun % 98.0% 99.7% 92.0% Jul % 97.9% 99.5% 93.4% , Aug % 97.8% 99.7% 91.8% , Sep % 97.3% 99.8% 93.6% , Oct % 98.1% 99.7% 93.8% , Nov % 98.1% 99.7% 95.6% , Dec % 97.9% 99.8% 95.2% , Avg % 98.1% 99.7% 94.9% , Jan % 97.5% 99.6% 95.0% , Feb % 97.9% 99.6% 95.4% , Mar % 98.0% 99.8% 96.6% Apr % 98.4% 99.8% 96.2% , May % 98.1% 99.8% 96.2% Jun % 98.4% 99.2% 94.9% Jul % 98.2% 99.7% 93.4% , Aug % 97.4% 99.7% 90.2% , Sep % 97.6% 99.8% 93.6% , Oct % 97.8% 99.8% 94.5% , Nov % 97.4% 99.7% 94.2% , Dec % 98.3% 99.7% 95.3% , Avg % 97.9% 99.7% 94.6% , Jan % 98.6% 99.7% 96.9% , Feb % 98.6% 99.7% 97.3% Mar % 98.5% 99.6% 96.9% Apr % 98.5% 99.3% 96.6% May % 98.2% 99.4% 96.0% Jun % 97.6% 99.6% 93.9% Jul % 97.7% 99.6% 90.9% , Aug % 98.1% 99.5% 95.2% , Sep % 98.2% 99.5% 95.8% , Oct % 98.4% 99.6% 95.6% Nov % 98.0% 99.7% 96.2% , Dec % 98.5% 99.7% 96.8% Avg % 98.2% 99.6% 95.7% , Jan % 97.9% 99.5% 96.6% Feb % 98.0% 98.8% 96.9% Mar % 98.2% 99.4% 97.2% Avg % 98.0% 99.2% 96.9%

41 Madison Metropolitan Sewerage District Nine Springs Wastewater Treatment Plant Flow Data (Data from Flows&Performance&AerationQuery) Septage (gallons per day) Lagoon Flows To UV Final Effluent (mgd) Biosolids Raw Septic Holding Landfill POTW To From Units W4 Badfish Badger Mill By-passed to to Storage to Land Month (mgd) Tanks Tanks Leachate Sludge Other Total (mgd) (mgd) (mgd) Recycle Creek Creek Lake Waubesa (mgd) (mgd) Jan ,274 30, ,935 2,374 43, Feb ,760 36,560 1, ,465 53, Mar ,771 44,392 2, ,966 71, Apr ,593 38,370 1,558 4,000 3,277 68, May ,763 38,478 1,776 3,419 2,860 68, Jun ,446 48,061 2, ,863 82, Jul ,071 45,455 1, ,577 72, Aug ,754 39,556 1, ,879 65, Sep ,705 38,803 1,109 1,333 2,973 63, Oct ,545 37,690 1,114 2,484 2,697 65, Nov ,114 38,480 1, ,446 64, Dec ,114 38,480 1, ,446 64, Avg ,326 39,530 1,566 1,125 2,902 65, Jan ,944 36,984 1,791 1,774 2,424 50, Feb ,257 37,838 1,876 2,143 2,395 54, Mar ,345 45,544 1,380 2,290 3,546 75, Apr ,539 41,367 3,277 1,667 1,873 71, May ,868 42,480 3, ,781 71, Jun ,221 46,420 2, ,715 79, Jul ,739 38,179 2, ,124 64, Aug ,612 41,147 1, ,184 70, Sep ,758 43,170 1,060 2,500 3,140 72, Oct ,710 38, ,097 62, Nov ,140 39,702-3,333 2,360 61, Dec ,436 38, ,613 2,588 56, Avg ,214 40,817 1,702 1,317 2,852 65, Jan ,831 36, ,290 2,258 51, Feb ,271 36,084 1,666 2,069 2,402 54, Mar ,785 36, ,452 2,355 59, Apr ,422 37, ,989 58, May ,010 44,114 1,628-2,660 71, Jun ,608 36,915 1,310-2,842 58, Jul ,662 36, ,985 57, Aug ,338 36, ,967 58, Sep ,336 31, ,382 55, Oct ,452 40, ,742 3,433 69, Nov ,480 33, ,783 55, Dec ,848 30, ,968 2,632 50, Avg ,087 36, ,167 2,891 58, Jan ,156 35, ,290 2,445 49, Feb ,439 34, ,071 1,619 46, Mar ,331 36, ,290 3,184 56, Avg ,642 35, ,217 2,416 51,

42 MADISON METROPOLITAN SEWERAGE DISTRICT 1610 Moorland Road Madison, WI Telephone (608) Fax (608) D. Michael Mucha, P.E. Chief Engineer & Director Upcoming Agenda Items Commission Meeting Date Note: All dates are tentative and subject to change Meeting Finalized Meeting/Event 4/25/2013 X Commission Meeting & Study Session (Note: routine business is shown in smaller font) Potential Agenda Items COMMISSIONERS Caryl E. Terrell President Thomas D. Hovel Vice-President Ezra J. Meyer Secretary John E. Hendrick Commissioner Topf Wells Commissioner Review and Approval of Sewer Extension Plans-Sauser o Pumping Station 18, MMSD o Westlawn Heights Phase 1, Village of Cottage Grove o 2013 Public Works Improvements, Village of Waunakee o Kilkenny Farms-Phase 1B, Village of Waunakee o Merrill Crest Drive Assessment District-2013, City of Madison o Secret Places-Phase 9, City of Madison o Eighth Addition to Blackhawk Subdivision Phase 7, City of Madison Adoption of Municipal Obligation Resolution Authorizing the Issuance and Sale of up to $8,191,338 General Obligation Sewerage System Promissory Notes, Series 2013A and Providing for Other Details and Covenants with Respect Thereto for the CWF Loan for the Northeast Interceptor-SEI to FEI Relief/Replacement-Brochtrup Phosphorus Management Strategy-Taylor Convene in Closed Session in Accordance with 19.85(1)(c) of the Wisconsin Statutes for Purposes of Developing Negotiating Strategies for Collective Bargaining with the Local 60, AFSCME, AFL CIO, for the Contract that Expires December 31, Mucha Reconvene in Open Session-Commission Discussion and Actions, If Any, Related to Matters Discussed in Closed Session-Commission Note: Commissioner Hovel & Meyer excused. Commissioner Meyer may teleconference into the meeting. 4/25/2013 STUDY SESSION 5/16/2013 X Commission Meeting Topic: Space Needs and Planning Update and Final Recommendations-Borelli Cash Statements including sinking funds Review and Approval of Sewer Extension Plans-Sauser Tentative: Approval of Final MMSD Annual Report-Fox Tentative: CliftonLarsonAllen LLP Discussion of 2012 Audited Financial Statements-Fox