THIEF RIVER FALLS CITY COUNCIL AGENDA TUESDAY - MARCH 6, 2018

Transcription

1 THIEF RIVER FALLS CITY COUNCIL AGENDA TUESDAY - MARCH 6, 2018 COUNCIL CHAMBERS CITY HALL lto STREET EAST 5:30 PM 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. PUBLIC FORUM - Individuals may addre.<;.<; the City Council about any iteni not included on tlie regular agenda. A mwdm11m o/5 minutes is allotted/or tire public forum. Speaker.; are requested to come to the microphone, state their name and address/or the record, and limit their remarks tojlve minutes. The City Council will not take official action on item.r discttned at this time, with the exception of referral to staff or a committee, board or commfrsion for a future report. 5. PRESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION ANNOUNCEMENTS Northwest Regional Library - Kristi Hanson (page 3-4) 6. APPROVE AGENDA - Cou11cil members may add items to the age11dafor discussion purposes or staff direction. The Council will not normally take official action on items added to tile agenda. 7. CONSENT AGENDA - Tltese items are considered routine in nature and are approved with one motion without discussion/debate. Tlze Mayor will ask if any Council member wishes to remove an item and place it 011 the regular agenda for cliscussio11 and coti.~ideration. lf no items are to be removed, the Mayor will the11 usk for a motion to approve the Consent Agenda Approval of February 20, 2018 Council Proceedings (page 5-13) 7.02 City of Thief River Falls Bills and Disbursements 7.03 Approval of Brandi and Bryan Dorge to be part of the City Slow Second Mortgage Program (page 14-15) 7.04 Approval of two assignments of mortgage documents for "Building a better Neighborhood" (page 16-17) 8. NEW BUSINESS 8.0 l Approval of bond resolution for Electric Department Building (page 18-49) 8.02 Second Reading of Ordinance Amendment - Signs (page 50-51) Approval of Ordinance Amendment - Signs 1

2 8.03 Second Reading ofnopers Fifth Addition rezoning (page 52-53) Approval of Nopers Fifth Addition rezoning 8.04 Approval to submit an outdoor recreation grant application for Annie Park (page 54-56) 9. COUNCIL BOARDS AND COMMISSIONS REPORTS - Not all boards orcomnu) sions will have met prior to the Council meeli11g. These reports are intende1/ to keep the otlier co11ncil members informed of actions or proposed actions taken by these boards atld commission.f, Only those with something to report would he on the age11da. 1 O. UPCOMING MEETINGS I 0.01 State of the City - March 8 1 h at 5:00 p.m. NCTC Theatre Utilities Committee Meeting - March 12'h at 7:00 a.m Public Safety/Liquor Committee Meeting - March Ith at 4:30 p.m Administration Committee Meetin g - March 13th at 4:30 p.m Public Works Conunittee Meeting - March 14th at 4:30 p.m. I 0.06 Thief River Falls Day at the Capitol - March 20Lh City Council Meeting - March 20th at 5:30 p.m. 11. INFORMATIONAL ITEMS 12. ADJOURNMENT City ofthicf River fulls complies with the ADA. tndividuals with disabilities requiring special aids should contact the City Administrator, 405 Third Street East, Thief River Falls, MN 56701, , 48 hours prior to the scheduled meeting. 2

3 Funding Under NWRL City Funded City of Thief River Falls $169,052 $169,052 Pennington County $112,519 $112,519 (if county supports city) RLBSS (State funding) $299,900 n/a RL TA (telecorn grant) $11,734 n/a Fines and Fees $11,142 $11,142 Donations $5,471 $5,471 TRF Foundation $22,000 $22,000 Legacy Grant $16,348 n/a Total $648,166 Total $320,184 Expense UnderNWRL City Funded Insurance {building content) $1,900 $1,900 Insurance (worker's comp) $953 $1,430 Insurance (Health) $24,922 $24,922 PERA $9,316 $16,157 Library staff $141,414 $232,623 Delivery $2,885 (w/o vehicle) n/a Books $14,420 $20,188 (no discount) Magazines $950 $1,140 (no discount) Music $1,350 $1,350 Newspapers $2,443 $2,931 {no discount) DVDs $4,047 $4,047 Overdrive (e-books) $22,000 n/a Interlibrary Loan $5,701 n/a Automation Contract $10,104 Market rate Internet $11,734 $35,000 (after line installation) Legacy $16,000 n/a Integrated Library System $5,000 $50,000 ongoing support Total $275,139 Total $391,688 Costs going forward do not include services that are not available to the library once it is no longer a member of the NWRL system: Legacy programming Interlibrary Loan {from NWRL libraries, LARL libraries and MN libraries Overdrive (e-books and e-audio books) State-funded library services (including online databases) Shared catalog/automation support with LARL Use of other MN libraries {except for fee cards), including NWRL libraries 3

4 Need to Purchase Book collection $846,320 Music $10,480 DVDs $65,000 Audio books $102,000 Integrated Library System $50,000 initial fees Furniture/circ desk $30,000/$14,000 Computers (staff/public) $40,000 Library cards $2,000 Staff recruit/ Training $20,000 Barcodes/MARC records $25,000 Misc. equipment/supplies $10,000 Vehicle $27,000 Total $1,241,800 4

5 COUNCIL PROCEEDINGS FEBRUARY 20, 2018 #7.01 The City Council of Thief River Falls, Minnesota, met in regular session at 5:30 p.m. on February 20, in the Council Chambers of City Hall. The following Councilmembers were present: Holmer, Narverud, Sollom, Howe, Brown, Aarestad, Prudhomme and Hagen. No Councilmembers were absent. Mayor Holmer chaired the meeting. RESENTATIONS/PROCLAMATIONS/PUBLIC INFORMATION/ANNOUNCEMENTS Volunteer Firefighter retirement after 20 years - Greg Bottem School Board Recognition Week Proclamation Mike Spears Certificate of Appreciation Norwegian Heritage Week Proclamation 2017 Forestry Report Blandin Comrrnmity Leadership Program - September 24-28, 2018 AP PROV AL OF AGENDA Councilmember Sollom motioned, being seconded by Councilmember Prudhomme, to approve the agenda with the addition of one item. On vote being taken, the motion was unanimously approved. RESOLUTION NO : APPROVAL OF COUNCIL PROCEEDINGS Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Council member Narverud, that: RES 0 L VED, by the City Council, to approve February 6, 2018 Council Proceedings. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF PAYMENT OF BILLS Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narverud, that: RESOLVED, by the City Council, to authorize payment of bills and disbursements in the total amount of$730, A printout of the approved payments and disbursements is attached hereto and made a part hereof. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF PROGRESSION RAISE FOR WADE WALLACE, WATER TREATMENT PLANT OPERATOR Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narverud, that: 5

6 Council Proceedings February 20, 2018 Page 2 of9 WHEREAS, Mr. Wallace has successfully completed his six-month probationary period and is eligible for progression to Step 2. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Utilities Committee recommendation and grant a progression raise for Wade Wallace, Water Treatment Plant Operator, to Step 2 of the Water Treatment Plant Operator salary schedule, for a new salary of $17.95 effective February 21, On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF PROGRESSION RAISE FOR MARAH FROILAND, PART-TIME OFF-SALE CLERK Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No t being seconded by Councilmember Narverud, that: WHEREAS, Ms. Froiland was hired by the City Council on May 17, 2017 as a part-time Off-Sale Clerk at Step I. Ms. Froiland has successfully completed her probationary period and a required hour worked and is eligible for a progression raise. THEREFORE, BE IT RESOL YEO, by the City Council, to accept the Public Safety/Liquor Committee recommendation to grant Marah Froiland, part-time Off-Sale Clerk, a progression raise to Step 2 of the Off-Sale Clerk salary schedule, effective upon her successful completion of her probationary period and working 1,020 hours as per the union and city agreement. Ms. Froiland's new hourly wage shall be $16.46 per hour, retroactive to her completion of 1,020 hours of employment. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVALTO PURCHASE 2018 FORD INTERCEPTOR UTILITY A WD SQUAD CAR Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narvernd, that: WHEREAS, the following bids were received for a new squad car purchase: Option A: Nelson Ford bid in Fergus Falls, $27, Option B: Thjef River Ford bid (Specs exactly the same as above),$ 28, THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Safety Committee's recommendation to approve the purchase of a new 2018 Ford Interceptor-Utility A WD Police Package from Nelson Ford in accordance with the previously approved replacement schedule of one squad per year. On vote being taken, the resolution was Wlanimously passed. 6

7 Council Proceedings February 20, 2018 Page 3of9 RESOLUTION NO : APPROVAL TO PURCHASE MINI EXCAVATOR FROM IRONHIDE EQUIPMENT Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narverud, that: BE IT RESOLVED, by the City Council, to accept the recommendation of the Public Utilities Committee to purchase a Mini Excavator from Ironhide Equipment for the price of$51, On vote being taken, the resolution was lulanimously passed. RESOLUTION NO : APPROVAL TO PURCHASE 2018 ELGIN STREET SWEEPER FROM SANITATION PRODUCTS Presented as part of the Consent Agenda, Council member Brown introduced Resolution No , being seconded by Councilmember Narverud, that: BE IT RESOLVED, by the City Council, to accept the recommendation of the Public Works Committee to approve the purchase of a Elgin Pelican NP 55KW Street Sweeper from Sanitation Products in the amount of $204, less a trade in for the 2014 Schwarze Model A7 Air Street Sweeper currently used by the city. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF QUOTE FROM WIKTEL TELCOM FOR ANALOG SECURITY CAMERA SYSTEMS FOR THE POWER PLANT AND WATER PLANT Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narverud, that: WHEREAS, the camera system was installed at the Water Treatment Plant in 2005 under a Homeland Security Grant. The Power Plant's system was installed shortly after that. Both systems are at the end of their projected usefulness and are failing. With the City buildings now having fiber run to most all of them, there is an opportunity to network the different sites and connect them to a server at City Hall to be monitored and maintained by the IT Specialist; and WHEREAS, the current Systems are beyond upgrade/repair and are in need of replacement. The Power plant needs to be completed by June 30 1 h before the next compliance inspection. The league of Cities Insurance Trust Senior Control Consultant has indicated the need for a functioning Security System at the Water Treatment plant as well. 7

8 Council Proceedings February 20, 2018 Page 4 of9 NOW THEREFORE, BE IT RESOLVED, by the City Council, to accept the Utilities Committee recommendation approving the quote from Wiktel Telcom in the amount of $20, for the replacement of the analog security camera systems for the Power Plant and Water Plant that are no longer functional or supportable. $11, will be paid from the Electric Department budget and $9, will be paid from the Water Systems budget. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL TO RENEW PETE CARLSON LAND LEASE- GILBERT INDUSTRIAL PARK Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ll..,, being seconded by Councilmember N arverud, that: WHEREAS, Pete Carlson has rented 38 acres of farm land from the city for several years in the Gilbert Industrial Park. The lease has provisions to terminate the lease in the event of any lot sales in the industrial park. THEREFORE, BE IT RESOLVED, by the City Council, to accept the recommendation of the Public Works Committee to approve the renewal of a lease between the City of Thief River Falls and Pete Carlson for farm land rental until December 15, 2020 in the Gilbert Industrial Park; and authorize the Mayor and City Administrator to execute the agreement. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF REVISIONS TO SANITATION SERVICES Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No ~ being seconded by Councilmember Narverud, that: BE IT RESOLVED, by the City Council, to accept the Public Works Committee recommendation 10 approve the following two revisions to the sanitation services: Direct staff to pick up televisions, monitors, microwaves and car/light truck tires with one orange sticker. Discontinue providing TRF garbage bags to tenants in apartment buildings that have dumpsters. On vote being taken, the resolution was lulanimously passed. RESOLUTION NO J 8: APPROVAL OF WATER SYSTEMS RESIDUAL PROJECT CHANGE ORDERS Presented as part of the Consent Agenda, Councilmember Brown introduced Resolution No lt being seconded by Councilmember Narverud, that: 8

9 Council Proceedings February 20, 2018 Page 5 of9 WHEREAS, the change order recommended is needed for successful replacement of the aging bubbler level control system to submersible electronic level transducers and the wiring of the new blow-off valves to tie them into the new SCADA system. The Water Treatment Plant Residuals Project included the rehabilitation of the filters and a new blower for the backwash system. The exhaust piping needed to be raised for clearance above the natural ground line. The current bubbler system requires an oil-less air compressor and cannot be connected to the new SCADA System so electronic pressure transducers are needed to replace the cwtent system. This makes possible replacement of future compressors with longer lasting oil bath compressors for the pneumatic valve operators. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Utilities Committee recommendation to approving change order# 6 & # 7 from John T Jones Construction in the amounts of$1,689 and $15,842 and the amended task order to Advanced Engineering Services in the amount of $4700 for the design of these change orders. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : ORDERING THE 2018 STRf:ET AND UTILITIES IMPROVEMENT PROJECT AND PREPARATION OF PLANS AND SPECIFICATIONS Mark Borseth, Community Services Director, presented a recommendation. Following discussion, Councilmember Brown introduced Resolution No , being seconded by Council member Narverud, that: WHEREAS, a public hearing was held on February lih to discuss the proposed improvements: 1. Technology Street - Street & Utilities Improvements 2. Digi-Key Drive - Street Improvements 3. First Street West - Street & Utilities Improvements 4. Nelson Drive - Utilities Improvements 5. MMCDC -Alley Construction 6. Spruce Avenue Crosswalks 7. Greenwood Street from Kendall Ave. to Spruce Ave. - Full Mill & Resurfacing 8. Highway No. 1 East (Eighth Street) - Street & Utilities Improvements 9. Highway No. 1 East Multi-Use Trail 10. Public Works Facility Paving 11. Water Distribution Facility Paving WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was given, the hearing was held at which time all persons desiring to be heard were given an opportunity to be heard thereon. THEREFORE, BE IT RESOLVED, by the City Council, that: 9

10 Council Proceedings February 20, 2018 Page 6 of9 1) Such improvements are necessary, cost-effective, and feasible as detailed in the feasibility Report; 2) Such improvements are hereby ordered as proposed; 3) The Community Services Director shall assist Widseth, Smith, & Nolting, as the designated engineers for these improvements. They shall prepare plans and specifications for the making of such improvements; and 4) The City Council declares its official intent to provide interim financing of the improvements through the use ofreserves and/or outside flulding. On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF AGREEMENT WITH NORTHWEST ASSOCIATED CONSULT ANTS, INC (NAC) TO UPDATE THE COMPREHENSIVE PLAN Mark Borseth, Community Services Director, presented a recommendation. Following discussion, Councilmember Sollom introduced Resolution No , being seconded by Councilmember Howe, that: WHEREAS, the City contracted with NAC in 2006 to prepare a comprehensive plan. This plan has many components that include Land Use, Growth Management-Annexation, Natural Resources, Transportation, Community Facilities, Parks and Trails, and Administration/Implementation. This docwnent is a road map to guide the city in long range planning and development. It is used extensively by the Planning Commission for land use issues and is amended periodically to be a living document; and WHEREAS, the current comprehensive plan is twelve years old and in need of a major update that reflects the numerous growth and changes that have taken place over that period ohime. NAC, having prepared the last comprehensive plan, have the previous data, background and experience to prepare a new plan for the City of Thief River Falls. This is estimated to take nearly one year to complete, that includes data gathering, team building, stakeholder interviews, workshops and extensive planning that engages the entire community. Phase 1 would start in September of 2018 and be completed in December of This will give clarity and direction for Phase II that will provide a completed comprehensive plan by July of 2019 for City Council approval. THEREFORE, BE IT RESOLVED, by the City Council, to accept the Public Works Committee recommendation to approve an agreement with Northwest Associated Consultants, [nc. (NAC) to update the City of Thief River Falls Comprehensive Plan. On vote being taken, the resolution was unanimously passed. FIRST READING OF ORDINANCE OF THE CITV OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTER 152 ENTITLED "ZONING CODE" BY AMENDING (0)(4) LIMITING HEIGHT OF SIGNS AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 10 AND SECTJON , WHJCH, AMONG OTHER THJNGS, CONTAIN PENALTY PROVISIONS 10

11 Council Proceedings February 20, 2018 Page 7 of9 Councilmember Howe motioned, being seconded by Councilmember Narvcrud, to call for the first reading of an ordinance amending 152 to provide for the amendment of city ordinance , D, 4, remove the limitation that an attached sign shall not extend higher than one foot below the roof line and allow an attached sign to extend no higher than the roof line. The motion was unanimously carried. City Attorney Sparby read the proposed ordinance. No action was taken at this time and this ordinance will again be presented at the next council meeting. FIRST READING OF ORDINANCE OF THE CITY OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTER 152 ENTITLED "ZONING CODE" BY AMENDING THE CITY ZONING DISTRICTS MAP, AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 10 AND SECTION , WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS Councilmember Narverud motioned, being seconded by Councilmember Howe, to call for the first reading of an ordinance amending the city zoning districts map, and by adopting by reference city code chapter I 0 and section , which, among other things, contain penalty provisions. City Attorney Sparby read the proposed ordinance. No action was taken at this time and this ordi nance will again be presented at the next council meeting. UPCOMING MEETINGS/EVENTS City Council Meeting - March 6 1 h at 5:30 p.m. State of the City-March gth at 5:00 p.m. NCTC Theatre Utilities Committee Meeting- March 12 1 h at 7:00 a.m. Public Safety/Liquor Committee Meeting - March lih at 4:30 p.m. Administration Committee Meeting- March 13th at 4:30 p.m. Public Works Conunittee Meeting- March 14'h at 4:30 p.m. Thief River Falls Day at the Capitol - March 20 1 h City Council Meeting - March 20 1 h at 5:30 p.m. 1NFORt'1A TIONAL ITEMS Thief River Falls Fire Department 2017 Annual Report Investment Summary dated January 31, 2018 CLOSE MEETING TO DISCUSS LABOR NEGOTIATIONS Councilmember Brown motioned, being seconded by Councilmember Hagen, to close the Council Meeting pursuant to Minnesota Statute 13D.03 to discuss labor negotiations. Following the closed session, the Council meeting reopened. RESOLUTION NO : APPROVAL OF LELS UNION CONTRACT FOR YEARS

12 Council Proceedings February 20, Page 8 of9 Councilmcmber Brown introduced Resolution No , being seconded by Councilmember Sollom, that: WHEREAS, the LELS Union and the City have met in negotiations for the last couple of months and have reached a tentative agreement; and WHEREAS, the proposed contract includes a wage increase in the amount of2% for 2018, 2 12% for 2019 and 2 Yi% for 2020 on January l st of each of the three years. Mutually agreed upon amendments were also made to certain other items; and THEREFORE, BE IT RESOLVED, by the City Council, to approve LELS Union Contract for years On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF TEAMSTERS #320 PUBLIC WORKS AND TEAMSTERS #320 FIRE UNION CONTRACTS FOR YEARS Councilmember Brown introduced Resolution No , being seconded by Councilmember Howe, that: WHEREAS, the Teamster #320 Union and the City have met in negotiations for the last couple of months and have reached a tentative agreement; and WHEREAS, the proposed contract includes a wage increase in the amount of 2% for 2018, 2 12% for 2019 and 2 Yi% for 2020 on January 1st of each of the three years. Mutually agreed upon amendments were also made to certain other items; and THEREFORE, BE IT RESOLVED, by the City Cotlllcil, to approve the Teamster #320 Public Works and Teamster #320 Fire Union Contracts for years On vote being taken, the resolution was unanimously passed. RESOLUTION NO : APPROVAL OF NON tjnion (NON-EXEMPT) AND NON UNION (EXEMPT) CONTRACTS FOR YEARS Councilmember Brown introduced Resolution No , being seconded by Councilmember Narverud, that: WHEREAS, a wage increase in the amount of2% for 2018, 2 Yi% for 2019 and 2 Yi% for 2020 on January 1st of each of the three years has been reconunended by the Chair of the Ad-Hoc Labor Committee to mirror increases for Union employees. THEREFORE, BE IT RESOLVED, by the City Council, to approve, Non Union(nonexempt) wage increases and Non Union (exempt) wage increase in the amount of2% for 2018, 2 Yi% for and 2 Yi% for 2020 on January 1st of each of the three years

13 Council Proceedings February 20, 2018 Page 9 of9 On vote being taken, the resolution was unanimously passed. ADJOURNMENT There being no further discussion, Councilmember Brown moved, being seconded by Councilmember Prudhomme to adjourn. On vote being taken, the Chair declared the motion unanimously carried. Brian D. Holmer, Mayor Rodney Ottemess, City Administrator 13

14 hie 405 Third Street Ea~t PO Box 528 Thief River Falls MN ver a ls I #7.03 I PHONE: Fi\.X: aphilipp@citytrf.net REQUEST FOR COUNCIL ACTION DATE: February 20th., 2018 SUBJECT: City of Thief River Falls Slow Second Program RECOMMENDATION: It is respectfully requested the Council to consider to approve Brandi and Bryan Dorge to be part of the City of Thief River Falls Slow Second Mo1tgage Program and authorize the Mayor and City Administrator to sign the mortgage and agreement when completed by the City Attorney. MOTION TO: To approve Brandi and Bryan Dorge to be part of the City of Thief River Falls Slow Second Mortgage Program and authorize the Mayor and City Administrator to sign the mortgage and agreement when completed by the City Attorney. FINANCIAL CONSIDERATION: $10,000 Slow Second Mortgage with a monthly ACH 0% 10 year payment plan. LEGAL CONSIDERATION: none DEPARTMENT/RESPONSIBLE PERSON: Angela Philipp, Finance Director 14

15 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION I #7.03 I RESOLUTION NO.: APPROVAL OF BRANDI AND BRYAN DORGE TO BE PART OF THE SLOW SECOND MORTGAGE PROGRAM Presented as part of the Consent Agenda, Councilmember introduced Resolution No., being seconded by Councilmember that: BE IT RESOLVED, by the City Council, to approve Brandi and Bryan Dorge to be part of the City of Thief River Falls Slow Second Mortgage Program and authorize the Mayor and City Administrator to sign the mortgage and agreement when completed by the City Attorney. Presented at the March 6, 2018 Council Meeting Introduced by: Seconded by: _ Roll Call (if required): _ Holmer_Howe _Sollom _Hagen _ Brown _ Prudhomme _Aarestad _Narverud Notes: ~ 15

16 f 405 Third Street Ea~t PO Oox 528 Thief River Falls MN ! iver fa s #7.04 PHONH: FA.)(: aphilipp@cilytrf.net REQUEST FOR COUNCIL ACTION DATE: March 6, 2018 SUBJECT: 2 assigrunents of mortgage documents for "Building a better Neighborhood" Impact Fund Agreement ID # RECOMMENDATION: It is respectfully requested the Council to authorize the City Administrator Rod Otterness and Mayor Brian Holmer to sign both assignment of mortgage documents due to a housekeeping measure for Impact award MOTION TO: Approve a the authorization of the City Administrator Rod Ottemess and Mayor Brian Holmer to sign 2 assignment of mortgage documents due to a housekeeping measure for the Impact award KEY ISSUES: none FINANCIAL CONSIDERATION: none LEGAL CONSIDERATION: none DEPARTMENT/RESPONSIBLE PERSON: Angela Philipp, Finance Director 16

17 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION I #7.04 I RESOLUTION NO. : APPROVAL OF TWO ASSIGNMENTS OF MORTGAGE DOCUMENTS FOR "BUJLDING A BETTER NEIGHBORHOOD" IMPACT FUND AGREEMENT Presented as part of the Consent Agenda, Councilmember No., being seconded by Councilmember that: introduced Resolution BE IT RESOLVED, by the City Council, to approve authorization of the City Administrator Rod Otterness and Mayor Brian Holmer to sign 2 assignments of mortgage documents due to a housekeeping measure for the Impact award Presented at the March 6, 2018 Council Meeting Introduced by: Seconded by: ~ Roll Call (if required): _ Holmer_Howe _Sollom _Hagen _Brown _Prudhomme _ Aarestad _Narverud Notes: ~ 17

18 CERTIFICATION OF MINUTES RELATING TO $3,950,000 ELECTRIC REVENUE BONDS, SERIES 2018A Issuer: City of Thief River Falls, Minnesota Governing body: City Council Kind, date, time and place of meeting: A regular meeting held on March 6th, 2018, at 5 :30 p.m. in the City Offices in Thief River Falls, Minnesota. Members present: Members absent: Documents attached: Minutes of said meeting (including): RESOLUTION NO RESOLUTION RELATING TO $3,950,000 ELECTRIC REVENUE BONDS, SERIES 2018A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, PRESCRIBING THE FORM AND DETAILS, PROVIDING FOR THE PAYMENT THEREOF I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the origjnal records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice given as required by law. WITNESS my hand officially as such recording officer on March_, City Administrator \

19 Member introduced the following resolution (the "Resolution") and moved its adoption, which motion was seconded by Member RESOLUTION RELATING TO $3,950,000 ELECTRIC REVENUE BONDS, SERIES 2018A; AUTHORIZING THE ISSUANCE, AW ARD ING THE SALE, PRESCRIBING THE FORM AND DETAILS, PROVID1NG FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council (the "Cotmcil") of the City of Thief River Falls, Minnesota (the "City"), as follows: SECTION 1. RECITALS. This Council has investigated the facts necessary to determine and does hereby find and declare the following: 1.0 I. Electric Utility System. The City has heretofore duly authorized the establishment and operation of a municipal electric distribution system for the distribution of electricity to the residents of the City and the surrounding area (the municipal electric utility system as now or hereafter improved, the "Electric Utility") Project. It is necessary and in the best interests of the City and its residents that the City make improvements to the Electric Utility (the "Project'') Necessity of Issuance of Series 2018A Bonds. To provide funds for payment of the costs of the Project, it is necessary for the City to issue its $3,950,000 Electric Revenue Bonds, Series 2018A (the "Series 2018A Bonds"), pursuant to Minnesota Statutes, Sections and , and Chapter 475. Costs of the Project in excess of the proceeds of the Series 2018A Bonds, if any, will be paid from funds on hand which have been generated from the operation of the Electric Utility and are available to be used for this purpose Sufficiency of Net Revenues. This Council reasonably anticipates that the Gross Revenues (as hereinafter defined) to be received from the operation of the Electric Utility during the period for which the Series 2018A Bonds will be outstanding will be more than sufficient to pay all costs of the operation and maintenance thereof and to provide Net Revenues (as hereinafter de.fined) adequate to pay the principal of and interest on the Series 2018A Bonds and additional bonds issued in compliance with Sections 7.02 or 7.03 hereof (together with the Series 2018A Bonds, the "Parity Bonds") when due. There are no outstanding obligations payable from or constituting a lien or charge upon such Net Revenues, and it is in the best interests of the City that the Series 2018A Bonds be made payable solely from the Net Revenues. SECTION 2. AUTHORIZAT ION. SALE AND SECURITY FOR SERIES 2018A BONDS 2.0 I. Conditions Precedent To Issuance of Series 20 I 8A Bonds. All acts, conditions and things whjch are required by the Constitution and laws of the State of Minnesota to be done, to \

20 exist, to happen and to be performed precedent to and in the valid issuance of the Series 2018A Bonds have been done, do exist, have happened and have been performed, in due form, time and manner as required by law Sale and Award. Pursuant to Minnesota Statutes, Section , subdivision 2, paragraph (9), the requirements as to public sale do not apply to the issuance of the Bonds. The District has received an offer from [ ], in [ ], [ ] (the "Purchaser'') to purchase the Bonds at a price of$[ ], plus accrued interest on alj Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. The offer is accepted, the sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and the Finance Director are hereby authorized and directed to execute a contract on behalf of the City for the sale of the Bonds in accordance with the terms of proposal Security for Series 20 l 8A Bonds. The Series 2018A Bonds and the interest coming due thereon shall be payable solely from the Net Revenues of the Electric Utility; however, the Series 2018A Bonds shall not constitute a lien on the property comprising the Electric Utility. The Series 20 l 8A Bonds shall not constitute a general obligation of the City; the full faith and credit and taxing powers of the City are not pledged for the payment of the Series 2018A Bonds and no person shall ever have the right to compel the application of City moneys (other than Net Revenues) or the levy of ad valorem taxes for the payment of such principal and interest. SECTION 3. SERIES 2018A BONDS: TERMS, EXECUTION AND DELIVERY Maturities, Interest Rates, Denominations and Payment. The City shall forthwith issue and deliver the Series 20 l 8A Bonds, which shall be dated originally as of April 3, 2018, shall be in fully registered fo rm, in the denomination of $5,000 each or any integral multiple thereof of a single maturity, shall mature on February 1 in the years and amounts set forth below and shall bear interest from their date of original issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount($) Rate(%) Year Amount($) Rate(%) \

21 [REVISE MATURITY SCHEDULE FOR TERM BONDS] The Council finds and determines that such maturities, as set forth above, are warranted by the anticipated collection of the Net Revenues of the Electric Utility pledged for their payment. The Series 2018A Bonds shall be issuable only in fully registered fonn. The interest thereon and, upon stmender of each of the Series 20 l 8A Bonds, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein, provided that, so long as the Series 2018A Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 3.07, principal and interest shall be payable in accordance with the operational attangements of the securities depository Dates and Interest Payment Dates. Upon initial delivery of the Series 2018A Bonds pursuant to Section 3.06 and upon any subsequent transfer or exchange pursuant to Section 3.05, the date of authentication shall be noted on each of the Series 2018A Bonds so delivered, exchanged or transfelted. Interest on the Series 201 SA Bonds shall be payable on February 1 and August 1 of each year, commencing February 1, 2019, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Series 20 l 8A Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months Redemption. Series 2018A Bonds maturing February 1, 2027, and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and within a maturity by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000, on February 1, 2026, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Administrator shall cause notice of the call for redemption thereof to be published if and as required by law, and at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Series 20 l 8A Bonds to be redeemed at their addresses as they appear on the Bond Register (as hereinafter defined), but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any of the Series 2018 Bonds not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Series 20 l 8A Bonds or portions of Series 2018A Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Series 20 l 8A Bonds or portions of Series 20 t SA Bonds shall cease to bear interest. Upon partial redemption of any of the Series 2018A Bonds, new Series 2018A Bonds will be delivered to the owners without charge, representing the remaining principal amount outstanding. [The Bonds shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section at a redemption price equal to the stated principal \

22 amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each of the following years the following stated principal amounts of the Bonds: Principal Amount $ The remaining $ stated principal amount of such Bonds shall be paid at maturity on February I, 20_. Notice of redemption shall be given as provided in the preceding paragraph.] Appointment of Registrar. The City hereby appoints Northland Trust Services, Inc., in Minneapolis, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws of the United States or one of the states of the United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar, effective upon not less than thirty days' written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Series 2018A Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a register (the "Bond Register") in which the Registrar shall provide for the registration of ownership of Series 2018A Bonds and the registration of transfers and exchanges of Series 2018A Bonds entitled to be registered, transferred or exchanged. The term "Holder" or " Bondholder" as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name one or more of the Series 2018A Bonds are registered in the Bond Register. (b) Transfer of Series 2018A Bonds. Upon surrender for transfer of any Series 2018A Bonds duly endorsed by the Holder thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrru, duly executed by the Holder thereof or by an attorney duly authorized by the Holder in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or \

23 more new Series 2018A Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Series 2018A Bonds. At the option of the Holder of any Series 2018A Bonds in a denomination greater than $5,000, such Series 2018A Bonds may be exchanged for other Series 20 l 8A Bonds of authorized denominations, of the same maturity and a like aggregate principal amount, upon swtender of the Series 2018A Bonds to be exchanged at the office of the Registrar. Whenever any Series 20 I 8A Bonds is so surrendered for exchange, the Registrar shall authenticate and deliver one or more new Series 2018A Bonds of a like aggregate principal amount and maturity, as requested by the registered owner in writing. ( d) Cancellation. All Series 2018A Bonds surrendered for payment, transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of. The Registrar shall furnish the City at least once each year a certificate setting fo1th the principal amounts and numbers of Series 2018A Bonds canceled and destroyed. (e) Improper or Unauthorized Transfer. When any of the Series 2018A Bonds arc presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Series 2018A Bonds or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Series 2018A Bonds are at any time registered in the Bond Register as the absolute owner of the Series 2018A Bonds, whether the Series 2018A Bonds shall be overdue or not, for the purpose of receiving payment of or on accotmt of, the principal of and interest on the Series 2018A Bonds and for all other purposes; and all payments made to or upon the order of such Holder shall be valid and effectual to satisfy and discharge the liability upon such Series 2018A Bonds to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Series 2018A Bonds (except for an exchange upon a partial redemption of Series 2018A Bonds), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) MutiJated, Lost, Stolen or Destroyed Series 2018A Bonds. fn case any Series 20 l 8A Bonds become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Series 2018A Bonds of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Series 2018A Bonds or in lieu of and in substitution for any Series 2018A Bonds destroyed, stolen or \

24 lost, upon the payment of the reasonable expenses and charges of the Registrar in collllection therewith; and, in the case of Series 20 l 8A Bonds destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Series 2018A Bonds were destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Series 20 l 8A Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Series 2018A Bonds have already matured or been called for redemption in accordance with their terms it shall not be necessary to issue new Series 201 SA Bonds prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Series 20 l 8A Bonds, within the meaning of Minnesota Statutes, Section , Subdivision I, as amended. G) Valid Obligations. All Series 2018A Bonds issued upon any transfer or exchange of Series 2018A Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Series 20 l 8A Bonds surrendered upon such transfer or exchange Execution. Authentication and Delivery. The Series 2018A Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and the City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on any Series 20 l 8A Bonds shall cease to be such officer before the delivery of such Series 2018A Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until the date of delivery of such Series 2018A Bonds. Notwithstanding such execution, no Series 20 l 8A Bonds shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Series 2018A Bonds has been executed by the manual signature of an authori7,ed representative of the Registrar. Certificates of authentication on different Series 2018A Bonds need not be signed by the same representative. The executed certificate of authentication on any Series 20 l 8A Bonds shall be conclusive evidence that it has been duly authenticated and delivered under this Resolution. When the Series 2018A Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the PLU"chaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price Securities Depository. For purposes of this section, the following terms shall have the following meanings: \

25 "Beneficial Owner" means, whenever used with respect to Series 2018A Bonds, the person in whose name such Series 2018A Bonds are recorded as the beneficial owner of such Series 20 l 8A Bonds by a Participant oo the records of such Participant, or such person's subrogee. "Cede & Co." means Cede & Co., the nominee of DTC, and any successor nominee of OTC with respect to the Series 2018A Bonds. "OTC" means The Depository Trust Company of New York, New York. "Participant» means any broker~dealer, bank or other financial institution for which OTC holds Series 20 I 8A Bonds as securities depositmy. "Representation Letter" means the Representation Letter pursuant to which the City agrees to comply with DTC's Operational AITangements. (a) The Series 2018A Bonds shall be initially issued as separately authenticated fully registered bonds, and one bond shall be issued in the principal amotmt of each stated maturity of the Series 2018A Bonds. Upon initial issuance, the ownership of such Series 2018A Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Series 2018A Bonds registered in its name for the purposes of payment of the principal of or interest on the Series 2018A Bonds, selecting the Series 2018A Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Series 2018A Bonds under this Resolution, registering the transfer of Series 2018A Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Series 20 l 8A Bonds under or tluough DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Series 2018A Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Series 20 l 8A Bonds, with respect to any notice which is permitted or required to be given to owners of Series 20 l 8A Bonds under this Resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Series 20 l 8A Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Series 2018A Bonds. So long as any Series 20 l 8A Bonds are registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Series 20 l 8A Bonds, and shall give all notices with respect to such Series 20 l 8A Bonds, only to Cede & Co. in accordance with OTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Series 2018A Bonds to the extent of the sum or sums so paid. No person other than OTC shall receive authenticated Series 2018A Bonds for each \

26 separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Series 2018A Bonds will be transferable to such new nominee in accordance with paragraph ( e) hereof. (b) In the event the City dete1mines that it is in the best interest of the Beneficial Owners that they be able to obtain Series 201 8A Bonds in the fonn of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the participants of the availability through DTC of Series 20 l 8A Bonds in the form of certificates. In such event, the Series 20 l 8A Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Series 20 l 8A Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Series 20 l 8A Bonds will be transferable in accordance with paragraph (e) hereof. ( c) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Administrator is hereby authorized and directed. (d) In the event that any transfer or exchange of Series 2018A Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Series 20 l 8A Bonds to be transferred or exchanged and appropriate instnunents of transfer to the permitted transferee in accordance with the provisions of this Resolution. In the event Series 20 l 8A Bonds in the fonn of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Series 2018A Bonds, or another securities depository as o-v.rner of all the Series 201 8A Bonds, the provisions of this Resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Series 2018A Bonds in the fonn of bond certificates and the method of payment of principal of and interest on such Series 20 l 8A Bonds in the form of bond certificates. The Series 2018A Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each of the Series 2018A Bonds, the principal amount thereof: shall be payable by check or draft issued by the Registrar, provided that, so long as the Series 2018A Bonds are registered in the name of a secw-ities depository, or a nominee thereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. SECTION 4. FORM OF SERfES 2018A BONDS. The Bonds shall be prepared in substantially the form found at Exhibit A attached hereto \

27 SECTION 5. SECURITY PROVISIONS Definitions. For purposes of this Resolution, the following terms shall have the following meanings: "Parity Bonds" means any additional bonds which may be issued on a parity with the Series 2018A Bonds pursuant to Sections 7.02 or 7.03 hereof. "Series 2018A Bonds" means the $3,950,000 Electric Revenue Bonds, Series 2018A of the City; "Gross Revenues" means all receipts from rates, fees, charges and rentals established by the City for the availability, benefit and use of the Electric Utility, including availability and benefit to the City, and from any penalties and interest thereon, and from any sales of property constituting a part of the Electric Utility, and from the investment and reinvestment of Gross Revenues; "Net Revenues" means those revenues defined as such in Section 5.04 hereof; and "Operating Expenses" means current expenses, paid or accrued, of operation, maintenance and repair of the Electric Utility, as determined in accordance with generally accepted accounting principles, including but not limited to franchise fees, administrative expenses, premiums for insurance, fuel and electric energy purchased and materials, supplies and labor needed for current operation, maintenance and repair, and charges for the accumulation of appropriate reserves for current expenses which do not recur monthly but may reasonably be expected to be incurred; but not including allowances for depreciation, interest, renewals or replacements of capital assets, transfers to other funds, or any portion of the salary or wages of any officer or employee not representing reasonable compensation for the performance of the duties necessary to the operation of the Electric Utility Bond Proceeds and Revenues Pledged and Appropriated. For the convenient and proper administration of the moneys now and hereafter to be borrowed by issuance of the Series 2018A Bonds, and to make adequate and specific security to the purchasers and holders from time to time of the Series 2018./\ Bonds, the City shall at all times during which the Series 2018A Bonds are outstanding, continue to maintain on its official books and records an Electric Fund which shall be administered for the purposes and in the manner prescribed herein. All proceeds of the Series 20 l 8A Bonds and all other funds hereafter received or appropriated for purposes of the Electric Utility are appropriated to this Electric Fund. All Gross Revenues of the Electric Utility are irrevocably pledged and appropriated and shall be credited to the Electric Fund as received. Within its Electric Fund, the City shall establish and maintain the separate subfunds or accounts designated and described in Sections 5.03 to 5.07, to segregate income received and expenses paid and accrued for the respective purposes described in those sections. The Gross Revenues received in the Electric Fund shall be apportioned to said accounts (other than the Construction Account) on the fifteenth day of each month, commencing on April 15, \

28 5.03. Construction Account. To the Construction Account shall be credited from the proceeds of the Series 20 l 8A Bonds the sum of $( J, and all other funds appropriated thereto by the City, and all income received from the investment of the Construction Account. The moneys on hand from time to time in the Construction Account shall be used only to pay as incurred and allowed costs of issuance of the Bonds and costs which under generally accepted accounting principles are recognized capital costs of repairs, improvements, betterments or extensions of the Electric Utility including, with respect to the Series 2018A Bonds, the costs of the Project. All moneys remaining in the Construction Account after payment of all costs of the Project, unless appropriated for the payment of the cost of other capital improvements to the Electric Utility by resolution of the Council, shall be transferred to the Debt Service Account established by Section Operation and Maintenance Accoimt. On each monthly apportionment of gross revenues ("Monthly Apportionment") there shall first be set aside and credited to an Operation and Maintenance Account, as a first charge on the Gross Revenues, such amount as may be required over and above the balance then held in the account to pay the reasonable and necessary Operating Expenses of the Electric Utility which are then due and payable, or are to be paid prior to the next Monthly Apportionment, and to maintain a reasonable operating reserve within the Operation and Maintenance Account of at least two times the average monthly Operating Expenses from the preceding year. Moneys in the Operation and Maintenance Account shall be used solely for the payment of Operating Expenses of the Electric Utility. The amounts remaining after provision has been made for the Operation and Maintenance Account as provided in this Section are de.fined as the "Net Revenues" of the Electric Utility Debt Service Account. From the proceeds of the Series 2018A Bonds there shall be credited to the Debt Service Account the sum of$[ ], constituting accrued interest received with respect to the Series 2018A Bonds. Thereafter, upon each Monthly Appo1tionment there shall be set aside and credited to the Debt Service Account out of the Net Revenues an amount equal to one-sixth of the interest to become due on the next succeeding interest payment date, plus one-twelfth of the principal to become due on the next two succeeding interest payment dates, on all outstanding Series 20 I 8A Bonds, provided that the initial Monthly Apportionments with respect to the Series 2018A Bonds shall be in such larger amounts sufficient to accumulate the sums necessary to make the initial interest payment on the Series 2018A Bonds on February I, 2019, and the initial principal payment on the Series 2018A Bonds on February 1, Moneys from time to time held in the Debt Service Account shall be disbursed only to meet payments of principal and interest on the Series 2018A Bonds as such payments become due. If any payment of principal or interest becomes due when moneys in the Debt Service Account are temporarily insufficient therefor, such payment shall be advanced out of any bond proceeds or Net Revenues theretofore segregated and then on hand in the Surplus Account. The amounts remaining after provision has been made for the Debt Service Account as provided in this Section are defined as the "Surplus Net Revenues" of the Electric Utility Debt Service Reserve Account. So long as any Series 2018A Bonds remain outstanding, there shall be established and maintained in the Debt Service Reserve Account a balance not less than the Debt Service Reserve Requirement. The Debt Service Reserve \

29 Requirement shall be equal to the lesser of (j) 10% of the principal of all PaJity Bonds issued and outstanding under this Resolution, (ii) the maximum amount of principal and interest to become due in any future fiscal year on all Parity Bonds outstanding under this Resolution or (iii) 125% of the average annual debt service to become due in any future fiscal year on all Parity Bonds outstanding under this Resolution. Forthwith upon delivery of the Series 20 l 8A Bonds, there shall he deposited in the Debt Service Reserve Account the sum of$ ], from City funds on hand, which is equal to the Debt Service Reserve Requirement effective upon issuance of the Series 2018A Bonds. Moneys on hand in the Debt Service Reserve Account shall be used only to pay maturing principal and interest on the Parity Bonds when moneys in the Debt Service Account are insufficient therefor; provided that moneys on hand in the Debt Service Reserve Account may be applied by the City to the payment or discharge of the Parity Bonds or any Series thereof at any time when all outstanding Parity Bonds,, or all outstandjng Parity Bonds of a series, are to be discharged or paid and the total of moneys on hand in the Debt Service Reserve Account and the Debt Service Account (or the allocable portion thereof in the case of the payment or discharge of a Series of Parity Bonds) plus any other moneys irrevocably appropriated by the City for the purpose are sufficient to pay or discharge all outstanding Parity Bonds. In the event that additional bonds are issued pursuant to Section 7.02 or 7.03, provision shall be made to increase the Debt Service Reserve Account, upon issuance of such additional bonds, to an amount equal to the Debt Service Reserve Requirement effective upon the issuance of such additional bonds. If the balance on hand in the Debt Service Reserve Account is ever reduced below the Debt Service Reserve Requirement, such deficiency shall be restored out of amounts then on hand in the Surplus Account, or if the Surplus Account is not sufficient therefor, out of the next Surplus Net Revenues received Surplus Account. On each Monthly Apportionment, all Surplus Net Revenues not needed to restore a deficiency in any of the foregoing accounts shall be credited to the Surplus Account, provided that if additional bonds sball at any time be issued payable from said Surplus Net Revenues, in accordance with Section 7.04 hereof, Surplus Net Revenues may be pledged to a separate account for the payment of such additional bonds and interest thereon prior to being deposited into the Surplus Account. Moneys from time to time on hand in the Surplus Account which are not required to meet the current requirements of the foregoing accounts or to be held as a reserve for replacement and depreciation of the Electric Utility, may be used to discharge Series 2018A Bonds in accordance with Section 9, or may be used for any other lawful purpose Deposit and lnvestment of Funds. All revenues and proceeds of the Series 20 I 8A Bonds appropriated to the Electric Fund shall be kept on deposit with one or more deposito1y banks duly qualified under the laws of the State of Minnesota, with the security therein required, except that such revenues and funds may be invested and reinvested in securities which are authorized by Chapter 1 l 8A, Minnesota Statutes, or any successor chapter or section. All securities purchased shall mature at or before the time when it is estimated that the proceeds thereof will be needed for the purposes of the account from which funds are withdrawn for the purchase. All income, gain or loss on such investments shall be credited or charged, as the case may be, to the account from which the investment was made. SECTION 6. ADDITIONAL COVENANTS \

30 6.01. General Covenant. The City covenants and agrees with the holders of the Series 20 l 8A Bonds that until such obligations and interest thereon are fully paid or discharged as provided in this Resolution, it will fully and promptly perform and do all acts and things provided in this Section Rate Covenant. The City will establish and maintain reasonable charges, fees and rentals for all service and benefits of whatsoever nature furnished and made available by the Electric Utility to all individuals, firms, corporations and govenunental subdivisions and agencies, including the City itself, in accordance with schedules such that the Gross Revenues derived therefrom will at all times be sufficient to meet all payments due from and to maintain the amounts required in the Electric Fund and the several accounts therein as provided in Section 5, and will revise such rates, charges and rentals whenever necessary for these purposes, and sufficient in any event, except and unless prohibited by law, to produce in each fiscal year Net Revenues not less than 125% of the amount of principal and interest on Parity Bonds payable from the Debt Service Account in said fiscal year Improvements. The City will complete the Project, in accordance with plans and specifications approved and to be approved by the Council and at a total cost not to exceed the amount of the proceeds of the Series 20 l 8A Bonds and Net Revenues of the Electric Utility or other moneys available and appropriated for the payment thereof, under contracts advertised and awarded or to be advertised and awarded and secured by surety bonds executed in accordance with the laws of the State of Minnesota Continued Ownership. The City will continue its ownership and operation of the Electric Utility, until all Parity Bonds have been fully paid or discharged as provided by Section 9, and will cause it to be maintained in good and efficient operating condition, free from all liens on the revenues or the physical properties thereot: other than the liens herein provided, and will not sell or otherwise dispose of any capital assets of the Electric Utility except as provided herein. The City may at any time sell or otherwise dispose of any part of the Electric Utility, in the reasonable judgment of the Council, which is obsolete, inadequate, worn out, or no longer necessary or desirable for continued operation of the Electric Utility, provided that any amounts received upon such sale or other disposition of such properties shall be deposited in the Debt Service Account or applied toward payment of the cost of procuring other capital assets useful in operation of the Electric Utility. The City may also at any time discontinue its operation of the Electric Utility and thereupon sell or otherwise dispose of any part or all of the assets thereof provided that all of the following conditions are satisfied: (a) The Council shall have adopted a resolution dete1mining that it is in the best interest of the City that the City shall discontinue its operation of the Electric Utility; (b) The Council shall have entered into a contract for the sale or other disposition of part or all of the Electric Utility on terms such that the City is entitled to receive amounts at all times sufficient to pay when due the interest to accrue on all outstanding Series 20 l 8A Bonds to thcfr maturity dates or earlier designated redemption \

31 dates and to pay when due the entire principal amount of all outstanding Series 2018A Bonds at maturity or upon prior redemption; (c) The Council shall have adopted resolutions irrevocably pledging to payment of the outstanding Series 2018A Bonds, and interest thereon, the amounts to be received by the City under paragraph (b); and (d) The City shall have received from nationally recognized bond counsel, a written opinion stating that the result of the pledge made in accordance with paragraph ( c) will not result in the interest payable on the Series 2018A Bonds thereafter being includable in gross income for Federal income tax purposes Books and Records. The City will cause proper and adequate books of record and account to be maintained, reflecting all receipts and disbursements and all accrued claims and expenses in connection with the operation, maintenance and improvement of the Electric Utility and the payment of obligations incurred therefor, and will cause them to be audited annually by a qualified independent certified public accountant Insurance. The City will procure and keep in force at all times insurance on all buildings, structures, improvements, machinery and equipment constituting at any time a part of the Electric Utility, exclusive of foundations and excavations, against the perils covered under "extended coverage" or "all risk" insurance approved by the Insurance Department of the State of Minnesota, in such amounts as like properties are customarily insured for by prudent owners thereof, and will maintain public liability insurance at all times in amounts not less than the amounts in excess of which the City is immune from tort liability under the laws of the State of Minnesota, for all acts and omissions of its officers and employees concerned with the operation and maintenance of the Electric Utility, and will procure and keep in force surety company bonds covering all officers and employees handling Electric Utility funds, in amounts sufficient to cover at all times the funds in their hands. In the event of loss or damage compensated by any such insurance or bonds, the proceeds thereof shall be used to repair and restore the damage compensated Bondholders' Rights. The holders of not less than 25% in aggregate principal amount of the Series 20 I SA Bonds which are at such time outstanding may, either at law or in equity, by suit, action or other proceedings, protect and enforce the rights of all holders of the Series 20 I SA Bonds and compel the performance of any and all of the covenants required herein to be performed by the City and its officers and agents, including but not limited to the establislunent and maintenance of charges, fees and rentals and the collection and proper segregation of revenues and the use thereof. The holders of a majority in principal amount of all outstanding Series 2018A Bonds shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to such holders or the exercise of any power conferred upon them, and the right to waive a default in the performance of any such covenant, and its consequences, except a default in the payment of the principal of or interest on any Series 2018A Bonds when due. However, nothing herein shall impair the absolute and unconditional right of the holder of each of the Series 2018A Bonds to receive payment of the principal thereof and interest thereon as such principal and interest respectively become due, 4!! t 86\

32 from the Net Revenues pledged and appropriated for the payment thereof, and to institute suit for the enforcement of any such payment Limitation; Series 2018A Bonds not Debt. The Series 2018A Bonds shall not constitute in any manner indebtedness, bonds or certificates of indebtedness of the City within the meaning of any provision of state law limiting the amount or method of incurring such indebtedness, and shajl be payable solely from the Net Revenues of the Electric Utility which are pledged and appropriated for that purpose in this Resolution, and the taxing powers of the City are not pledged in any manner for the payment thereof, except as may be needed for the payment of reasonable charges for electric utility service and benefits rendered and available to the City Competing Service. To the extent permitted by law, the City will not grant a franchise for, establish or authorize the establishment of any other system for the public supply of service or services in competition with any or all of the services supplied by the Electric Utility. SECTION 7. PRIORITIES AND ADDITIONAL BONDS Priority of Bond Payments. Except as otherwise expressly provided herein, each and all of the Parity Bonds shall be equally and ratably secured by and payable out of the Net Revenues without preference or priority of any one Bond over any other by reason of date of issue or maturity, serial number or otherwise, provided that if at any time the Net Revenues on hand in the Electric Fund as defined in Section 5 hereof are insufficient to pay principal and interest then due on all Parity Bonds, any and all moneys then on hand shall be first used to pay the interest accrued on all outstanding Parity Bonds, and the balance shall be applied toward payment of the maturing principal of outstanding Parity Bonds in order of their maturities, the earliest maturing Parity Bonds to be paid first, and pro rata in payment of Parity Bonds maturing on the same date Refunding Bonds. The City reserves the right to issue one or more series of additional bonds to refund any or all of the Series 2018A Bonds then outstanding. Any additional bonds issued for refunding purposes may be made payable from the Net Revenues on a parity as to principal and interest with all then outstanding Series 2018A Bonds, provided that (l) the maturity of each refunding revenue bond shall be subsequent to the last maturity of any then outstanding Series 2018A Bonds which are not refunded or otherwise discharged in accordance with Section 9 hereof, and (2) no bondholder shall be required to accept a refimding revenue bond in exchange for any Series 2018A Bonds owned by the bondholder Other Parity Bonds. The City reserves the right to issue additional bonds, over and above the amount, if any, issued pursuant to Section 7.02, payable from the Debt Service Account, on a parity as to both principal and interest with the Parity Bonds and any additional bonds theretofore issued, if the annual Net Revenues of the Electric Utility for each of the last two complete fiscal years preceding the issuance of such additional bonds have equaled at least 125% of the average annual principal and interest payable from the Debt Service Account in any subsequent fiscal year during the term of the outstanding Parity Bonds, on all Parity Bonds then \7 -t 5-32

33 outstanding (other than any bonds to be refunded by the additional bonds) and on the additional bonds proposed to be issued. For the purpose of the foregoing computation, the Net Revenues for the two fiscal years preceding the issuance of additional bonds shall be the Net Revenues as defined in Section 5.04 and as shown by the official books and records of the City, provided, however, that for the purposes of this Section, the preceding two year's Net Revenues may be adjusted to reflect the following: (I) estimates of additional gross revenues to be derived from the addition of any large Electric Utility customers since the beginning of the preceding two fiscal years; (2) estimates of additional gross revenues to be derived from rate increases placed in effect since the beginning of the preceding two fiscal years; (3) estimates of additional gross revenues to be derived from firm agreements for the sale of significant amounts of excess power, which have been entered into since the beginning of the two preceding fiscal years; or (4) estimated savings on operating costs, electric demand charges or base power costs which would have been realized if the proposed improvement had been in existence throughout the full two preceding fiscal years. 1f any adjustments are made to historic Net Revenues for the purposes of this Section as provided above, any estimate shall be made in writing by professional engineers or independent certified public accountants or financial advisors experienced in utility design, operation and financing, and not in the regular employ of the City except as they are employed in a consulting capacity ("Utility Consultants"). In no event shall any additional bonds within the meaning of this Section 7 be issued if the City is then in default in any payment of principal or interest on any outstanding Parity Bonds, or if there then exists any deficiency in the balances required by this Resolution to be maintained in any ofthc accounts of the Electric Fund. As an alternative to the foregoing test for issuing additional bonds, additional bonds may also be issued upon receipt of a report of a Utility Consultant concluding that the forecasted Net Revenues of the Electric Utility: (1) in the case of additional bonds to finance capital improvements which have not yet been acquired or constructed, for each of the two complete Fiscal Years next succeeding the date such capital improvements are expected to be placed in service, or, (2) in the case of additional bonds not financing capital improvements, for each of the two complete Fiscal Years next succeeding the date on which the additional bonds are issued, will not be less than 125% of the average amount of principal and interest payable from the Debt Service Account in any future fiscal year during the term of the then outstanding Parity Bonds, on all Parity Bonds then outstanding (other than any bonds to be refunded by the additional bonds) and on the additional bonds proposed to be issued, as shown by forecasted financial statements for each such period; any Utility Consultant's report delivered pmsuant hereto must \

34 be accompanied by such forccasted financial statements and by a statement of the relevant assumptions upon which such forecasted statements are based Subordinate Lien Bonds. Notwithstanding other provisions of Section 7, nothing contained in this Resolution or in the Series 2018A Bonds shall be construed to preclude the City from issuing additional bonds when necessary for the enlargement, improvement or extension of the Electric Utility, provided that such additional bonds, whether constituting a general obligation of the City or being payable solely from revenues of the Electric Utility, are expressly made a charge on and are payable only from the Surplus Net Revenues of the Electric Utility, are not superior to or on a parity with Parity Bonds payable from the Debt Service Account, and the annual Net Revenues of the Electric Utility for each of the last two complete fiscal years preceding the issuance of such additional bonds have equaled at least 100% of the maximum annual principal and interest payable from said Debt Service Account in any subsequent fiscal year during the term of the outstanding Parity Bonds, on all Parity Bonds then outstanding (other than any bonds to be refunded by the additional bonds) and on the additional bonds proposed to be issued. SECTION 8. AMENDMENTS Amendments Without Bondholder Consent. The City reserves the right to amend this Resolution from time to time and at any time, for the purpose of curing any ambiguity or of curing, correcting or supplementing any defective provision contained herein, or of making such provision with regard to matters or questions arising hereunder as the Council may deem necessary or desirable and not inconsistent with this Resolution, and which shall not adversely affect the interests of the holders of Series 2018A Bonds issued hereunder, or for the purpose of adding to the covenants and agreements herein contained, or to the Gross Revenues herein pledged, other covenants and agreements thereafter to be observed and additional Gross Revenues thereafter appropriated to the Electric Fund, for the purpose of surrendering any right or power herein reserved to or conferred upon the City or for the purpose of authorizing the issuance of additional bonds in the manner and subject to the terms and conditions prescribed in Section 7. Any such amendment may be adopted by resolution, without the consent of the holders of any of the Series 2018A Bonds Amendments With Bondholder Consent. With the consent of the holders of Series 2018A Bonds as provided in Section 8.03, the City may from time to time and at any time amend this Resolution by adding any provisions hereto or changing in any manner or eliminating any of the provisions hereof, or of any amending resolution, except that no amendment shall be adopted at any time without the consent of the holders of all Parity Bonds then outstanding and affected by the proposed amendment, if it would extend the maturities of any such bonds, would reduce the rate or extend the time of payment of interest thereon, would reduce the amount or extend the time of payment of the principal thereof, would give to any Series 2018A Bonds any privileges over any other Series 2018A Bonds, would reduce the sources of Gross Revenues appropriated to the Electric Fund, would authorize the creation of a pledge of said Gross Revenues prior to or on a parity with the Series 2018A Bonds (except as is autborized by Section \

35 7), or would reduce the percentage in principal amount of Series 20 l 8A Bonds required to authorize or consent to any such amendment Notice and Consent. Any amendment adopted pursuant to Section 8.02 shall be made by resolution duly adopted and shall become effective only upon the filing of written consents with the City Administrator, signed by the holders of not less than a majority in principal amount of the Series 2018A Bonds then outstanding or, in the case of an amendment not affecting au outstanding Series 2018A Bonds, by the holders of not less than a majority in aggregate principal amount of the bonds affected by such amendment. Any written consent to an amendment may be embodied in and evidenced by one or any number of concurrent written instruments of substantially similar tenor signed by bondholders in person or by agent duly appointed in writing, and shall become effective when delivered to the City Administrator. Any consent by the holder of any Series 20 l 8A Bond shaji bind the holder and every future holder of the same bond with respect to any amendment adopted by the City pursuant to such consent Proof. Proof of the execution of any consent, or of a writing appointing any agent to execute the same, or of the ownership by any person of Series 20 l 8A Bonds, shall be sufficient for any purpose of this Resolution and shall be conclusive in favor of the City if made in the manner provided in this Section The fact and date of the execution by any person of any such consent or appointment may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the person signing it acknowledged the execution thereof. The amount of Series 2018A Bonds held by any person by or for whom a consent is given, and the distinguishing numbers of such Series 2018A Bonds, and the date of the holder's holding the same, shall be proved by the Bond Register. The fact and date of execution of any such consent and the amount and distinguishing numbers of bonds held by the person executing the same may also be proved in any other manner which the City may deem sufficient; but the City may nevertheless, in its discretion, require further proof in cases where it deems further proof desirable. SECTION 9. DEFEASANCE. When all of the Series 2018A Bonds have been discharged as provided in this Section 9, all pledges, covenants and other rights granted by this Resolution to the holders of the Series 201 SA Bonds shall cease. The City may discharge its obligations with respect to any Series 2018A Bonds which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Series 20 l 8A Bonds should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge its obligations with respect to any Series 2018A Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which arc authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity or earlier designated redemption date \

36 SECTION 10. DISCLOSURE. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING 10.0 I. Countv Auditor Registration. The City Administrator is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor of Pennington County, together with such other information as the County Auditor shall require, and to obtain from the County Auditor a certificate that the Series 20 l 8A Bonds have been entered on the bond register as required by law. I Certification of Proceedings. The officers of the City and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, bond counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Series 2018A Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein General Tax Covenant. The City covenants and agrees with the holders from time to time of the Series 2018A Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Series 2018A Bonds to become includable in gross income under the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the interest on the Series 2018A Bonds will not become includable in gross income under the Code and the Regulations. Specifically, the City covenants that so long as any Series 20 18A Bonds are outstandlng, it will continue to own and operate the Electric Utility as a public utility available on a substantially equal basis to all members of the general public. The City will not enter into any lease, management agreement, capacity agreement, output contract or other agreement which would cause the Series 20l8A Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code Arbitrage Certification. The Mayor and City Administrator being the officers of the City charged with the responsibility for issuing the Series 20 I 8A Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with Section 148 of the Code and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Series 2018A Bonds which make it reasonable to expect that the proceeds of the Series 2018A Bonds will not be used in a manner that would cause the Series 201 8A Bonds to be "arbitrage bonds" within the meaning of the Code and Regulations Arbitrage Rebate. The City acknowledges that the Bonds are subject to the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records, make such determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(.t) and applicable Regulations unless the Bonds \

37 qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section l. l 48-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof Qualified Tax-Exempt Obligations. ln order to enhance the marketability of the Series 2018A Bonds, this Council hereby specifically designates the Series 2018A Bonds as "qualified tax-exempt obligations" within the meaning of Section 265 of the Code. The City hereby declares that it does not reasonably expect to issue in calendar year 2018 tax-exempt obligations in an aggregate principal amount greater than $10,000,000 (exclusive of private activity bonds) and covenants that it will not in any event designate in calendar year 2018 more than $10,000,000 of its obligations as such "qualified tax-exempt obligations." Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the equipment which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1. t 50-2 of the Regulations, provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the equipment meeting the requirements of Section (.f)(l) of the Regulations, or (ii) with respect to "preliminary expenditures" for the equipment as defined in Section l.150-2(t)(2) of the Regulations which in the aggregate do not exceed 20% of the " issue price" of the Bonds Official Statement. The Official Statement relating to the Series 2018A Bonds, prepared and distributed by Northland Securities, Inc., the municipal advisor for the City, is hereby approved. Northland Securities, Inc. is hereby authorized on behalf of the City to prepare and deliver to the Purchaser within seven business days from the date hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, and the underwriters. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or l 86\

38 appropriate to enforce perfo1mance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default herellllder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Rondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Ovvner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (ii) is treated as the owner of the Rond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (l) on or before twelve (12) months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2017, the following financial information and operating data in respect of the City (the "Disclosure Information"): (A) (B) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Govenunental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and to the extent not included in the :financial statements referred to in paragraph (A) hereof, the infonnation for such fiscal year or for the period most recently available of the type contained in the Official Statement under headings: Coverage Ratio Analysis and Electric Utility System - "Number and Classification of Metered Connections," "Rate Schedule," and "Largest Users." Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date lulaudited financial statements in the format required for the audited financial statements as part of the Disclosure Info1mation and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or alt of the Disclosure Information may be incorporated by reference, if it is updated as 4& \

39 required hereby, from other documents, including official statements, which have been submitted to the Municipal Securities Rulemaking Board (MSRB) through its Electronic Municipal Market Access System (EMMA) or to the SEC. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Info1mation and the City determines that certain specified data regarding such replacement operations would be described in paragraph (2) hereof, then, from and after such dete1mination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(l) or subsection (d), then the City shall include in the next Disclosure Info1mation to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of any of the following events: (A) Principal and interest payment delinquencies; (B) Non-payment related defaults, if material; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS F01m 5701-TEB) or other material notices or dete1minations with respect to the tax status of the security, or other material events affecting the tax status of the Bonds; (G) Modifications to rights of Bond holders, if material; (H) Bond calls, if material, and tender offers; (I) Defeasances; (J) Release, substitution, or sale of property securing repayment of the Bonds, if material; (K) Rating changes; (L) Banla.uptcy, insolvency, receivership or similar event of the obligated person; (M) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and \

40 (N) Appointment of a successor or additional trustee or the change of name of a trustee, if material. As used herein, for those events that must be reported if material, an event is "material" if it is an event as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also "'material" if it is an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L) hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or govenunental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) (B) (C) (D) (E) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); the termination of the obligations of the City under this section pursuant to subsection ( d); any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and any change in the fiscal year of the City. ( c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection (b) \

41 (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term; Amendments; Interpretation. ( 1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause paiticipating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Infonnation) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and asswning that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be constmed so as to satisfy the requirements of paragraph (b)(5) of the Rule. Upon vote being taken thereon, the following voted in favor thereof: l 86\

42 and the following voted against the same: whereupon the Resolution was declared duly passed and adopted \

43 R-_ EXHIBIT A UNITED STATES OF AMERlCA STATE OF MINN ESOTA COUNTY OF PENNINGTON CITY OF THIEF RIVER FALLS ELECTRIC UTILfTY REVENUE BOND, SERIES 2018A $ Interest Rate Maturity Date Date of Original Issue CUSIPNo. %.February I, 20 _ April 3, 2018 REGISTERED OWNER: PRINCIPAL AMOUNT: CEDE&CO. THOUSAND DOLLARS THE CITY OF THIEF RIVER FALLS, COUNTY OF PENNINGTON, STATE OF MINNESOTA (the "City"), acknowledges itself to be indebted and for value received hereby, promises to pay to the registered owner specified above, or registered assigns, solely from the Net Revenues of the Electric Utility (as hereinafter defined), the principal amount specified above on the maturity date specified above and promises to pay interest thereon from the date of original issue specified above or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, at the annual interest rate specified above, payable on February 1 and August l of each yeaf, commencing February 1, 2019 (each such date, an "Interest Payment Date..), alt subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest so payable on any Interest Payment Date shall be paid to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such Interest Payment Date. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft by No11hland Trust Services, Inc., of St. Paul, Minnesota, as bond registrar, transfer agent and paying agent (the "Registrar"), or its designated successor under the Resolution (as hereinafter defined). This Bond is one of an issue in the aggregate principal amount of $3,950,000 (the "Bonds"), issued pursuant to a resolution adopted by the City Council on March 6, 2018 (the "Resolution"), to finance the cost of improvements to the municipal electric utility (the "Electric Utility"), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Sections and , and Chapter 475. This Bond and the interest thereon are payable solely from moneys on hand in the Debt Service Account of the Electric Fund of the C ity (the "Debt Service Account"), but this Bond shall not constitute a lien on the property comprising the Electric Utility. The Bonds shall not constitute a general \7 43

44 obligation of the City, and the full faith and credit and taxing powers of the City are not pledged for the payment of the Bonds and interest thereon, and no person shall ever have the right to compel the application of City moneys (other than Net Revenues of the Electric Utility ("Net Revenues" being defined in the Resolution ~nd hereafter as gross revenues after subtracting operating expenses of the Electric Utility)) or the levy of ad valorem taxes for the payment of such principal and interest. The Bonds are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof of a single maturity. Bonds maturing in 2027 and later years are each su~ject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary prncedures) in multiples of $5,000 on February 1, 2026, and on any date thereafter, at a pi:ice equal to the principal amount thereof plus interest accrued to the date of redemption. The City will cause notice of the call for redemption to be published if and as required by law and, at least thirty (30) days prior to the designated redemption date, will cause notice of the call thereof to be mailed by first class mail to the registered owner of any Bond to be redeemed at the owner's address as it appears on the bond register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. LThe Bonds shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements desctibed herein at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February l in each of the following years the following stated principal amounts of the Bonds; Principal Amount $ The remaining $ _ stated principal amount of such Bonds shall be paid at maturity on February I, 20. Notice ofredemption shall be given as provided in the preceding paragraph.] As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the Bond Register maintained by the Registrar at its principal office, upon surrender of this Bond for transfer at such office, duly endorsed by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney, and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the designated transferee \7 44

45 or transferees, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date. The Registrar may require payment of a sum sufficient to pay any tax, fee or governmental charge required to be paid with respect to any such transfer or exchange. The Bonds have been designated by the City as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment as herein provided and for all other purposes, and neither the C ity nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution authorizing its issuance until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by the manual signature of one of its authorized representatives. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in order to make this Bond a valid and binding special obligation of the City according to its te1ms have been done, do exist, have happened and have been perfonned in regular and due form as so required; that in and by the Resolution the City has covenanted and agreed with the owners of the Bonds that, to the extent permitted by law, it will impose and collect charges for the service, use and availability of the Electric Utility at the times and in the amounts required to produce Net Revenues in each year during which the Bonds are outstanding at least equal to 125% of the principal and interest coming due on the Bonds, and any other bonds hereafter issued on a parity with the Bonds in accordance with the provisions of the Resolution, in such year and has pledged and appropriated the Net Revenues to the Debt Service Account to the extent necessary to pay such principal and interest when due; that in and by the Resolution, the City has made other covenants for the security and payment of the Bonds, and will at all times comply therewith; that the City will authorize and issue additional bonds payable from the Debt Service Account on a parity with the Bonds only in strict accordance with the provisions of the Resolution; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation \7 45

46 IN WITNESS WHEREOF, the City of Thief River Falls, Pennington County, Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Administrator. CITY OF THlEF RIVER FALLS, MINNESOTA (facsimile signature - City Administrator) (facsimile signature - Mayor) CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Bonds delivered pursuant to the Resolution mentioned within. NORTHLAND TRUST SERVICES, INC., as Registrar By ~ Authorized Representative \7 46

47 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM --as tenants in common UTMA... as Custodian for.... (Cust) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act.... JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. (State) (Minor) ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the w ithin Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in ST AMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE fnsert SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: \7 47

48 X6\7 48

49 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION The undersigned, being the duly qualified and acting County Auditor of Pennington County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on March 6, 2018, by the City Council of the City of Thief River Falls, Minnesota, setting forth the form and details of an issue of $3,950,000 Electric Revenue Bonds, Series 2018A, dated as of April 3, I further certify that the issue has been entered on my bond register as required by Minnesota Statutes, Sections and WITNESS my hand officially on this day of, Pennington County Auditor \ 7 49

50 ity DIRECTOR OF PUBUC WORKS 405 Third Street East PO Box 528 Thiel'River Falls MN DATE: February 20, 2018 alls Request for Council Action I #a.02 I PHONE: FA.,"'<: mborseth@citytrf.net SUBJECT: Ordinance Amendment - Signs RECOMMENDATION: It is respectfully requested that the Council consider the following Planning Conunission recommendation: Motion to: Call for Second Reading and approval of Ordinance No. 104 to approve amending (D) (4) as follows: The proposed amendment removes the limitation that an attached wall sign shall not extend higher than one foot below the roof line and allow an attached wall sign to extend no higher than the roof line. BACKGROUND: The Zoning Code states the height limitation on an attached wall sign in a General Business District (C-2) shall not exceed eight feet in height nor shall any attached wall sign extend higher than one foot below the roofline. KEY ISSUES: A recent sign permit application requested the use of a sign that would not fit above a window and one foot below the roof line of an existing strip mall. The building had a step down roof that would require this business have a lower top of sign elevation than the adjacent business. The Planning Commission discussed the application and held a hearing to consider removing this limitation and allow an attached wall sign to extend no higher than the roof line. FINANCIAL CONSIDERATIONS: None. LEGAL CONSIDERATION: This ordinance amendment requires two readings. DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Public Works Director. Encl: (2) 50

51 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION I #a.02 I AN ORDINANCE OF THE CITY OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTE R 152 ENTITLED "ZONING CODE" BY AMENDING (0)(4) LIMITING HEIGHT OF SIGNS AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 10 AND SECTION , WHICH, ~JONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THIEF RlVER FALLS ORDAINS: Section 1. City Code Chapter (D) (4) is hereby amended to read as follows: Heigltt limitatio11s. No attached sign shall exceed eight feet in height, nor shall any attached sign extend higher than the roof line. Section 2. City Code Chapter 10 entitled "General Provisions" and Section entitled "Violation" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall be in force and effect from and after its passage, approval, and publication Passed by the City Council of Thief River Falls, Minnesota, on the th day of February, Presented at the March 6, 2018 Council Meeting Introduced by: Seconded by: Roll Call (if required): _ Holmer_Howe _ Sollom _Hagen _ Brown _ Prudhomme _ Aarestad _ Narverud Notes: ~ 51

52 ity of ie1 lver alls #8.03 DIRECTOR OF PUBl/C WORKS 405 Third Street East l'o Rox 528 Thief River falls MN DATE: February 20, 20 I 8 Reg uest for Council Action PHONE: FAX: mborseth@citytrt:nct SUBJECT: Nopers Fifth Addition - Rezoning RECOMMENDATION: It is respectfully requested that the Council consider the following Planning Commission recommendation: Motion to: Call for Second Reading of Ordinance No. 105 and approve rezoning Lot 1, Block 1, Nopers Fifth Addition from High Density Residential District (R-4) to General Business District (C-2). BACKGROUND: The City of Thief River Falls has comp1eted the purchase and platting of Nopers Fifth Addition. This property is Phase III of the Noper development, which was purchased to facilitate the construction of market rate multi-family housing as demand dictates and future commercial use along CSAH No. 16 if needed. KEY ISSUES: Digi-Key Electronics has purchased the fonner Electric Department facility and has constructed a new parking lot to support their existing business and current expansion. The Electric Department is currently functioning out of several locations on a temporary basis until a new facility can be completed. The Committee of the Whole selected the Naper site for the new Electric Department location as it is currently owned by the city and is a similar use to the adjacent MnDOT/Pcnnington County Joint Use Facility. This site can be utilized while allowing property for an additional 140 housing units on the other two lots in the subdivision. Additional yard space will be available at the water lime ponds on Pennington Avenue after they are decommissioned in The City Council has awarded a contract to Winkelman Building Company for the construction of the new facility. FINANCIAL CONSIDERATIONS: The cost for rezoning will be the responsibility of the city. LEGAL CONSIDERATION: The ordinance change requires a public hearing and neighborhood notification, which has been completed and would typicahy receive two readings. This rezoning is consistent with the adjacent zoning, but not consistent with the Comprehensive Plan and will require an amendment. DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Public Works Director Encl: (5) 52

53 CITY OF THIEF RIVER FALLS PROPOSED RESOLUTION I #8.03 I AN ORDTNANCE OF THE CITY OF THIEF RIVER FALLS, MINNESOTA, AMENDING CITY CODE CHAPTER 152 ENTITLED "ZONING CODE" BY AMENDING THE CITY ZONING DJSTRICTS MAP, AND BY ADOPTING BY REFERENCE CITY CODE CHAPTER 10 AND SECTION , WHICH, AMONG OTHER THINGS, CONTAIN PENAL TY PROVISIONS THE CITY COUNCIL OF THIEF RIVER FALLS ORDAINS: Section 1. The City Zoning Districts Map is hereby amended by changing the zoning designation of the following described real property from High Density Residential District (R-4) to General Business District (C-2): Lot One (1), Block One (1), Noper's Fifth Addition to Thief River Falls. Section 2. City Code Chapter 10 entitled "General Provisions" and Section entitled "Violation" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. 'lbis ordinance shall be in force and effect from and after its passage, approval, and publication. Presented at the March 6, 2018 Council Meeting Introduced by: Seconded by: _ Roll Call (if required): _Holmer_ Howc _ Sollom _Hagen _ Brown _Prudhomme _ Aarestad _ Narverud Notes: ~ 53

54 ly f DIRECTOU OF PUBLIC WORKS 405 Third Str~t Cast PO Box 528 Thief River Falls MN DATE: February 14, ver al s Request for Council Action #8.04 PHONE: FAX: mborseth@citytrf.net SUBJECT: Annie Park Grant Application RECOMMENDATION: It is respectfully requested that the Council consider the following Public Works Commitlee recommendation: Motion to: Approve submitting an Outdoor Recreation Grant application with the Minnesota Department of Natural Resources (DNR) for playground equipment and supporting infrastructure at Annie Park. BACKGROUND: The City of Thief River Falls owns a 3.5 acre parcel east of the Canadian Pacific Railroad between Greenwood Street and Annie Street. This property was donated to the city by the Kozojed family and has been utilized as an undeveloped park. Since the completion of the Greenwood Street underpass this property has been more visible and widely recognized as an important park for further development. KEY ISSUES: Private fund raising efforts have taken place with support from the city council. The city submitted a DNR Outdoor Recreation Grant in 2017, but was not successful. This grant period is open again with an application deadline of March 30, The application would include the cost to complete a new playground system, additional fencing, bituminous surfacing of the ajley and sidewalks. This would allow for a safe playground that is fully handicap accessible. The grant application is for 50% of the cost of the improvements. The vendor for the park equipment is undetermined at this time. FINANCIAL CONSIDERATIONS: The local share would be paid from the park development fund which has a current balance of $64,629 and the Annie Park Fund with a current balance of $13,300 for a total $77,929. LEGAL CONSIDERATION: None. DEPARTMENT/RESPONSIBLE PERSON: Mark Borseth, Public Works Director. Encl: (1) 54

55 ANNlf; STREET ':"" ANNIE PARK 3.45 ACRES 1-: Y.l:l llng 13/\CKO. lflp 20'i7' NORTH F JTUM'.!II' 1 n osr... 1s x I x I x I x l x FXISTINC <'Eo\ICEc 201'1 x - x-x - x - x - x x - x - x Annie City Of.4. \ Thi~\River\f lls, MN