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2007-407 ~- EXHIBIT I RESOLUTION NO. 2007-407 RESOLUTION AUTHORIZING THE ISSUANCE OF $13,165,000 GENERAL OBLIGATION PROMISSORY NOTES, SERIES 2007, AND PROVIDING THE DETAILS THEREOF Be it resolved by the City Council of the City of Janesville, Wisconsin, as follows: Section 1. Authority and Purpose. This resolution is adopted pursuant to Section 67.12(12) of the Wisconsin Statutes to authorize the issuance of notes for the following improvements: (a) $3,314,000 to construct and improve streets; (b) $1,050,000 to construct and improve storm sewers; (c) $1,142,000 to acquire, improve and maintain parks and public grounds; (d) $3,084,000 to acquire, improve and maintain public buildings and grounds; (e) $1,040,000 to acquire capital equipment; (f) $510,000 to construct and close landfills; (g) $1,225,000 to extend and improve the waterworks system; and (h) $1,800,000 to extend and improve the sanitary sewer system; and The foregoing improvements or purposes are each hereby authorized to be made or undertaken by the City of Janesville, Wisconsin. For the purpose of paying principal of and interest on the notes, there is hereby levied on all the taxable property in the City a direct, annual, irreparable tax sufficient for that purpose. Section 2. Authorization and Terms of Notes. To meet part of the estimated cost of the improvements or purposes described in Section 1 of this resolution, there is hereby appropriated the sum of $13,165,000. For the purpose of financing said appropriation, general obligation promissory notes of the City shall be issued and sold in an aggregate principal amount of $13,165,000, shall be designated "General Obligation Promissory Notes, Series 2007" and shall be issuable in the denominations of $5,000 or any integral multiple thereof. The notes shall be numbered consecutively from 1 upwards in order of their issuance and may bear such other identifying numbers or letters as may be useful to facilitate the registration, transfer and exchange thereof. Each note shall be dated as of the interest payment date next preceding the date of issuance thereof, except that (a) if such date of issuance shall be prior to the first interest payment date, said note shall be dated as of a date to be established by the subsequent action of the City Council, (b) if such date of issuance shall be an interest payment date, said note shall be dated as of such interest payment date, or (c) if interest due on said note shall not have been paid in full, then, notwithstanding any of the foregoing provisions, said note shall be dated as of the date to which interest has been paid in full on said note. The notes shall mature and bear interest on the dates and in the amounts established by subsequent action of the City Council. The principal of and premium, if any, on the notes shall be payable in lawful money of the United States of America at the principal corporate trust office of the bank, trust company or national banking association designated in Section 7 of this resolution, as note registrar, or at any additional or successor paying agent or fiscal agent designated by the City pursuant to Section 67.10(2), Wisconsin Statutes. Interest on the notes shall be payable in lawful money of the United States of America on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the City for such purpose at the principal office of the note registrar, as of the close of business on the fifteenth day of the calendar month next preceding the applicable interest payment date. Interest on the notes shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books. The notes shall be subject to redemption prior to maturity as provided by subsequent action ofthe City Council. In the event of the redemption of less than all the notes of like maturity, the aggregate principal amount thereof to be redeemed shall be $5,000 or an integral multiple thereof, and the note registrar shall assign each note of such maturity a distinctive number for each $5,000 principal amount of such note and shall select by lot from the numbers so assigned as many numbers as, at $5,000 for each number, shall equal the principal amount of such notes to be redeemed. The notes to be redeemed shall be the notes to which were assigned the numbers so selected, provided that only so much of the principal amount of each note shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. Notice of the redemption of notes shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of notes to be redeemed at their last addresses appearing on said registration books. The notes or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the notes or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, then from and after the redemption date interest on such notes or portions thereof shall cease to accrue and shall become payable. If there shall be drawn for redemption less than all of a note, the City shall execute and the note registrar shall authenticate and deliver, upon the surrender of such note, without charge to the owner thereof, for the umedeemed balance of the note so surrendered, notes of like maturity and of the denomination of$5,000 or any integral multiple thereof. The notes may be initially issued in temporary form and shall be exchanged for definitive printed notes as soon as possible. The temporary notes shall be executed as provided herein and shall be in substantially the form set forth in Section 5 hereof. Section 3. Execution and Authentication of Notes. The notes shall be executed in the name of the City by the manual or facsimile signatures of its City Manager and City Clerk, and 2 the corporate seal of the City, or a facsimile thereof, shall be thereunto affixed, impressed or otherwise reproduced thereon. In case any officer whose signature, or a facsimile of whose signature, shall appear on any notes shall cease to hold such office before the issuance of the notes, such notes shall nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such notes had not ceased to hold such office. Any note may be signed, sealed or attested on behalf of the City by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such note such person may not have held such office. No recourse shall be had for the payment of any notes against any officer who executes the notes. The notes shall bear thereon a certificate of authentication executed manually by the note registrar. No note shall be entitled to any right or benefit under this resolution or shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the note registrar. Section 4. General Obligations. The full faith and credit of the City are hereby irrevocably pledged to the punctual payment of the principal of and interest on the notes. The notes shall be direct and general obligations of the City, and the City shall be obligated to levy ad valorem taxes upon all the taxable property in the City for the payment of the notes and the interest thereon, without limitation as to rate or amount. Section S. Form of Notes. The notes shall be issued as fully registered notes and shall be substantially in the following form, the blanks to be appropriately completed when the notes are printed: 3 [FORM OF NOTE] United States of America State of Wisconsin County of Rock CITY OF JANESVILLE GENERAL OBLIGATION PROMISSORY NOTE SERIES 2007 REGISTERED NO. REGISTERED $ Dated Date Interest Rate Maturity Date CUSIP REGISTERED OWNER: PRINCIPAL AMOUNT: The CITY OF JANESVILLE, a municipal corporation of the State of Wisconsin situate in the County of Rock, acknowledges itself indebted and for value received hereby promises to pay to the registered owner identified above, or registered assigns, the principal amount specified above on the maturity date specified above, unless this note shall be redeemable and shall have previously been called for redemption and payment of the redemption price made or provided for, and to pay interest on such principal amount from the dated date hereof at the interest rate per annum specified above, payable in lawful money of the United States of America on February 1, 2008, and semiannually thereafter on the first days of August and February in each year until the principal amount shall have been paid, by check or draft mailed to the registered owner of record hereof as of the fifteenth day of the calendar month next preceding such interest payment date, at the address of such owner appearing on the registration books maintained by the City for such purpose at the principal corporate trust office of Wells Fargo Bank, N.A., in the City of Chicago, Illinois, as fiscal agent pursuant to Section 67.10(2), Wisconsin Statutes, and as note registrar or its successor (the "Note Registrar"). This note, as to principal and premium, if any, when due, will be payable in lawful money of the United States of America upon presentation and surrender of this note at the office of the Note Registrar. The full faith and credit of the City are irrevocably pledged for the punctual payment of the principal of and interest on this note according to its terms. This note is part of a series of notes issued in the aggregate principal amount of $13,165,000, which are all oflike tenor except as to date, maturity, option ofredemption and rate of interest. The notes are being issued for the following purposes: (i) to construct and improve streets; (ii) to construct and improve storm sewers; (iii) to acquire, improve and maintain parks and public grounds; (iv) to acquire, improve and maintain public buildings and grounds; (v) to acquire capital equipment; (vi) to construct and close landfills; (vii) to extend and improve the waterworks system; and (viii) to extend and improve the sanitary sewer system, including the costs of issuance of the notes. The notes are authorized and issued under and pursuant to 4 regular and due time, form and manner as required by law, that a direct, annual, irreparable tax has been levied by the City sufficient to pay the interest when it falls due and also to pay and discharge the principal at maturity, and that the series of notes of which this note is one, together with all other indebtedness of the City, is within every debt or other limit prescribed by law. IN WITNESS WHEREOF, the CITY OF JANESVILLE has caused this note to be executed in its name and on its behalf by the manual or facsimile signatures of its City Manager and its City Clerk, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon. CITY OF JANESVILLE By City Manager By City Clerk 6 CERTIFICATE OF AUTHENTICATION Date of Authentication: This note is one of the General Obligation Promissory Notes, Series 2007, described in the within mentioned resolutions. WELLS FARGO BANK, N.A., as Note Registrar By Authorized Officer ASSIGNMENT For value received the undersigned sells, assigns and transfers unto the within note and hereby irrevocably constitutes and appoints attorney to transfer the said note on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guaranty: Section 6. Transfer, Exchange and Registry. The notes shall be negotiable, subject to the provisions for registration of transfer contained herein. Each note shall be transferable only upon the registration books maintained by the City for that purpose at the office of the note registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the note registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such note, the City shall execute and the note registrar shall authenticate and deliver a new note or notes registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered note. Notes, upon surrender thereof at the office of the note registrar, with a written instrument satisfactory to the note registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of notes of the same maturity and interest rate and of the denominations of$5,000 or any integral multiple thereof. For every such exchange or registration of transfer of notes, the City or the note registrar may make a charge sufficient to reimburse it for any tax, fee or other governmental charge 7 required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The note registrar shall not be required to transfer or exchange any note after notice of the redemption of all or a portion thereof has been mailed. The note registrar shall not be required to transfer or exchange any note during a period of 15 days next preceding the mailing of a notice of redemption that could designate for redemption all or a portion of such note. The City and the note registrar may deem and treat the person in whose name any note shall be registered upon the registration books as the absolute owner of such note, whether such note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of, premium, if any, or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such note to the extent of the sums or sums so paid, and neither the City nor the note registrar shall be affected by any notice to the contrary. In order to provide for the initial issuance of the notes in a form that provides for a system of book-entry only transfers, the ownership of one fully registered note for each maturity in the aggregate principal amount of such maturity shall be registered in the name of Cede & Co., as a nominee of The Depository Trust Company, New York, New York ("DTC"). In the event that the City determines that the system of book-entry only transfers through DTC (or a successor securities depository) is not in the best interests of the Beneficial Owners (as hereinafter defined) of the notes or is burdensome to the City, the City may notify DTC, whereupon DTC will notify the DTC Participants (as hereinafter defined) of the availability through DTC of note certificates. In such event, the City shall issue and the note registrar shall authenticate, transfer and exchange note certificates as requested by DTC of like principal amount, series and maturity, in denominations of $5,000 or any integral multiple thereof to the identifiable Beneficial Owners, in replacement of such Beneficial Owners' beneficial interests in the notes. For the purposes of this paragraph, the term "Beneficial Owners" shall mean (a) those persons for whom DTC was created to hold their securities ("DTC Participants"), and (b) the persons for whom the DTC Participants acquire interests in the notes as nominees. Section 7. Note Registrar. The City has contracted with and designated Wells Fargo Bank, N.A., Chicago, Illinois, to serve as fiscal agent pursuant to Section 67.10(2), Wisconsin Statutes, and as note registrar. The City covenants that it maintain at the designated office of such note registrar a place where notes may be presented for payment and registration of transfer or exchange and that it shall require that the note registrar maintain proper registration books and perform the other duties and obligations imposed upon it by this resolution in a manner consistent with the standards, customs and practices ofthe municipal securities business. The note registrar shall signify its acceptance of the duties and obligations imposed upon it by this resolution by executing the certificate of authentication on any note, and by such execution the note registrar shall be deemed to have certified to the City that it has all requisite power to accept, and has accepted, such duties and obligations not only with respect to the note so authenticated but with respect to all the notes. The note registrar is the agent of the City and 8 shall not be liable in connection with the performance of its duties except for its own negligence or default. The note registrar shall, however, be responsible for any representation in its certificate of authentication on the notes. The City may remove the note registrar at any time. In case at any time the note registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the note registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the note registrar or of its property or affairs, the City covenants and agrees that it will thereupon appoint a successor note registrar. The City shall mail notice of such appointment made by it to each registered owner of notes within 20 days after such appointment. Any successor note registrar appointed under the provisions of this Section, other than the Finance Director, shall be a bank, trust company or national banking association maintaining a corporate trust office in the State of Wisconsin, the City of Chicago, Illinois, or the Borough of Manhattan, City and State of New York. Section 8. Sale of Notes. The notes shall be advertised for sale by the City Clerk in the manner provided herein, and the City Clerk is authorized to circulate an Official Statement prepared by RBC Capital Markets, Milwaukee, Wisconsin, and an Official Notice of Sale. When the notes shall have been sold, this Council will adopt the proceedings to award the notes, fix the interest rates thereon in accordance with the bid accepted, and levy taxes to meet principal thereof and interest thereon at maturity as required by law. Section 9. Application and Investment of Note Proceeds. Following the sale of the notes, the City Manager and City Clerk are hereby authorized and directed to execute and deliver the notes to the purchasers thereof upon payment therefor; and the principal proceeds from the sale of the notes shall be used only for the purposes and in the manner required by law and by this resolution. The proceeds may be invested in the manner permitted by law, subject to the restrictions contained in the next succeeding section. Section 10. Tax Covenants. (a) The City shall not take, nor omit to take, any action that is lawful and within its power to take, which action or omission would cause interest on any note to become subject to federal income taxes in addition to federal income taxes to which interest on such note is subject on the date of issuance thereof. (b) The City shall not permit any of the proceeds of the notes, or any facilities financed with such proceeds, to be used in any manner that would cause any note to constitute a "private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986 (the "Code"). (c) The City shall not permit any of the proceeds of the notes or other moneys to be invested in any manner that would cause any note to constitute an "arbitrage bond" within the meaning of Section 148 of the Code. 9 (d) The City shall comply with the provisions of Section 148(f) of the Code relating to the payment of certain investment earnings at periodic intervals to the United States of America; provided, however, that such payment shall not be required to the extent the City receives an opinion of nationally recognized bond counsel (which opinion may be given in reliance upon a ruling or rulings of the Internal Revenue Service) to the effect that such payment is not necessary to preserve the exemption from federal income taxes of interest on the notes. Section 11. Continuing Disclosure. For the benefit of the beneficial owners of the notes, the City covenants and agrees to provide an annual report containing certain financial information and operating data relating to the City. The annual report shall be filed with each Nationally Recognized Municipal Securities Information Repository and with the Wisconsin state information depository, if any, within 180 days after the close of the City's fiscal year. The Annual Report may be submitted as a single document or as separate documents comprising a package. The City may include the information described below by cross-reference from official statements of debt issues of the City, which have been submitted to each Nationally Recognized Municipal Securities Information Repository and with the Wisconsin state information depository, if any, and are available from the Municipal Securities Rulemaking Board. The information to be contained in the annual report shall consist of the annual audited financial statement of the City for the most recently completed prior fiscal year and such additional information as noted in the official statement relating to the notes under the caption "Continuing Disclosure." Each annual audited financial statement will conform to generally accepted accounting principles applicable to governmental units prepared in accordance with standards of the Governmental Accounting Standards Board. The City also covenants and agrees for the benefit of the beneficial owners of the notes to provide timely notice to each Nationally Recognized Municipal Securities Information Repository and to the Wisconsin state information depository, if any, of any failure of the City to file any such annual report within the 180-day period and of the occurrence of any of the following events with respect to the notes, if material: (I) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax -exempt status of the notes; (7) modifications to rights of noteholders; (8) note calls; (9) defeasances; (10) release, substitution or sale of property securing repayment of the notes; and (11) rating changes. It is found and determined that the City has agreed to the undertakings contained in this Section in order to assist participating underwriters of the notes and brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. The chief financial officer of the City is authorized and directed to do and perform, or cause to be done or performed, for or on behalf of the City, each and every thing necessary to accomplish the undertakings of the City contained in this Section for so long as said Rule 15c2-12 is applicable to the notes and the City remains an "obligated person" under the Rule with respect to the notes. 10 Notwithstanding any other provisions in this resolution to the contrary, failure of the City to perform any covenant in this Section 11 shall not constitute an event of default hereunder; however, any noteholder may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the City to comply with its obligations under this Section 11. The City may amend the provISIons of this Section II and any proVISIOn of this Section 11 may be waived, if: (a) such amendment or waiver is made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the City, or the activities conducted at the financed facilities; (b) the undertaking herein, as amended or waived, would have complied with the requirements of the Securities and Exchange Commission Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (the "Rule") at the time of the primary offering of the notes, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the amendment or waiver (i) does not materially impair the interests of noteholders, as determined by an opinion of nationally recognized bond counsel expert in federal securities laws acceptable to the City, or (ii) is approved by the affirmative vote of noteholders of at least two-thirds in aggregate principal amount of the outstanding notes at the time such consent is given. Following any such amendment or waiver, the next succeeding annual report shall explain, in narrative form, the reasons for the amendment or waiver and the impact of the change on the type of financial information being provided. Section 12. Defeasance and Payment of Notes. (a) If the City shall payor cause to be paid to the registered owners of the notes the principal, premium, if any, and interest due or to become due thereon, at the times and in the manner stipulated therein and in this resolution, then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the City to the registered owners and the beneficial owners of the notes shall be discharged and satisfied. (b) Any notes, whether at or prior to the maturity or the redemption date of such notes, shall be deemed to have been paid within the meaning of this Section if (i) in case any such notes are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such notes for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (ii) there shall have been deposited in trust with a bank, trust company or national banking association acting as fiduciary for such purpose either (A) moneys in an amount which shall be sufficient, or (B) "Federal Obligations" as defined in paragraph (c) of this Section, the principal of and the interest on which when due will provide 11 moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on said notes on and prior to the applicable redemption date or maturity date thereof. (c) As used in this Section, the term "Federal Obligations" means (i) noncallable, direct obligations of the United States of America, (ii) noncallable and nonprepayable, direct obligations of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) noncallable, nonprepayable coupons or interest installments from the securities described in clause (i) or clause (ii) of this paragraph, which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. Section 13. Resolution To Constitute a Contract. The provisions of this resolution shall constitute a contract between the City and the owner or owners of the notes. Any pledge made in this resolution and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the owners of any and all of the notes. All of the notes, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the notes over any other thereof except as expressly provided in or pursuant to this resolution. This resolution and the resolution awarding the notes, fixing the interest rates and levying taxes for the payment thereof shall constitute full authority for the issuance of the notes and, to the extent that the provisions of this resolution conflict with the provisions of any other resolution of the City, the provisions of this resolution, as amended, shall control. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions ofthis resolution. Section 14. Notice. The City Clerk is authorized to publish a notice of the issuance of the notes as a class 1 notice pursuant to Section 893.77, Wisconsin Statutes. Section 15. Effective Date. This resolution shall become effective immediately upon its passage, the public welfare requiring it 12 ADOPTED: June 11, 2007 APPROVED: <!:;>t-. c ~J Steven E. Sheiffer, City Mager APrl.OVr~AS TO FORM: W~ b- t. tJ7- Assistant Cily Attorney Proposed by: Administrative Services Prepared by: Administrative Services 13 Motion by: Wellnitz Second by: Williams Councilmember Aye Nay Pass Absent Brunner X DeGarmo X Loasching X Steeber X Truman X Wellnitz X Williams X EXHIBIT II 2007 NOTE ISSUE PROJECT DESCRIPTIONS Construct and Improve Streets - $3,314,000 . Major Streets - $395,000 The reconstruction of East Court Street from Main Street to Garfield Avenue is scheduled for 2007. The estimated cost of this improvement (desigu and construction) is $1,405,000. The Federal STP Urban Program will provide $1,090,000, with the remaining $315,000 to be provided by the City of Janesville. The City's share will be funded from two sources: Special Assessments ($35,000) and the General Fund ($280,000). The existing concrete pavement will be removed and replaced with new concrete. The reconstruction of Mineral Point Avenue from Austin Road east 1,300 feet to Parker High School is scheduled for 2007. The existing rural section will be replaced with an urban (curb and gutter) section, sidewalks, storm sewers and bicycle facilities. The project estimate has increased to $260,000. Initial funding ($220,000) was provided in 2006 with funding from Special Assessments ($95,000) and the General Fund ($125,000). The General Fund portion included the Special Assessments for the town ($95,000) and the General Fund ($30,000). In 2007, an additional $40,000 is needed to complete this project, with funding from the General Fund ($40,000). The reconstruction of East Rotamer Road from Wright Road to Townhall Road is scheduled for 2009. The existing rural section will be replaced with an urban (curb and gutter) section, sidewalks, storm sewers and bicycle facilities. The estimated total cost of this improvement (desigu and construction) is $1,817,000. The Federal STP Urban Program will provide $1,453,000, with the remaining $364,000 to be provided by the City of Janesville. Desigu work for this improvement is scheduled for 2007 with an estimated cost of $213,000. The Federal STP Urban Program will provide $170,000, with the remaining $43,000 to be provided by the City of Janesville. The 2007 Note Issue includes $40,000 from the General Fund to fund the design phase ofthis improvement. . Street Extensions - $879,000 This program totals $1,664,000 and represents actual bid prices for streets to be constructed in 2007 in new developments for the Spring Public Works Program ($1,640,000) and additional funding for streets included in the 2006 Public Works Program (24,000). The Winter 2006 Note Issue included $785,000 for this program which reduces the proposed borrowing to $879,000. Funding for these improvements is provided through Special Assessments ($1,550,000) with the balance ($114,000) being provided by the General Fund. Of the amount provided by Special Assessments, $785,000 was included in the Winter 2006 Note Issue leaving a balance of $765,000 to be included in this Note Issue. J:\Finance & Administration\Finance Administration\Debt\Note Issue\Spring 2007\Project Descriptions.doc jjw 5123/2007 Project Descriptions 2007 Note Issue Project Descriptions Page 2 of8 . Miscellaneous Streets - $440,000 This program provides $30,000 for the temporary grading and graveling of new streets following the installation of sewer and water mains in 2006 and 100% of this cost is assessed. It also includes $390,000 for curb and gutter replacement approved in the 2007 Spring Public Works Program. Approximately $160,000 of the curb and gutter replacement cost for 2007 will be assessed to the abutting property owners; however, $30,000 is available from the 2006 Special Assessment borrowing to decrease the special assessment borrowing to $130,000. The remaining $230,000 will be provided by the General Fund. In addition, $50,000 is required from the General Fund to fully fund the 2006 program. . Ruger Avenue Bridge Replacement (Design) - $10,000 The replacement of the Ruger Avenue Bridge over Spring Brook is scheduled for 2009. The estimated total cost of this improvement (design and construction) is $546,000. The Federal Bridge Replacement Program will provide $438,000, with the remaining $108,000 to be provided by the City of Janesville. Design work for this improvement is scheduled for 2007 with an estimated cost of $62,000. The Federal Bridge Replacement Program will provide $50,000, with the remaining $12,000 to be provided by the City of Janesville. The 2007 Note Issue includes $10,000 from the General Fund to fund the design phase of this improvement. . Downtown Signal Replacement - $90,000 Funds are proposed for the replacement of several aging downtown traffic signals primarily along Milwaukee Street. These signal systems are experiencing malfunctions and it is increasingly difficult to find replacement and spare parts for the controllers. In addition, this project will include improvements necessary to coordinate the timing of the traffic control system and add fire pre-emption devices. . Sidewalks (New Program and Replacement) - $1,000,000 This program totals $1,000,000 for the construction of new sidewalk and the replacement of deteriorated sidewalk and/or sidewalk with other safety deficiencies. The sidewalk program is primarily funded through Special Assessment with 80% of the costs ($800,000) being assessed to abutting property owners. General Fund costs total $200,000 and include expenses such as curb ramp replacements, sidewalk crossing city owned property (greenbelts, parks, etc.) and other miscellaneous cost typically paid by the city at large. . Street Maintenance and Improvements - $500,000 This program includes funds to increase maintenance of City streets and make various other improvements to the street network such as intersection and railroad crossing improvements. This is a 5-year program which should allow the City to catch-up on its street maintenance activities. The 2007 Note Issue includes $500,000 for this program. Project Descriptions 2007 Note Issue Project Descriptions Construct and Improve Storm Sewers - $1,050,000 Page 3 of 8 . Storm Sewer Extensions - $545,000 This program totals $750,000 and represents actual bid prices to extend storm sewer for streets to be constructed in 2007 in new developments on the Spring Public Works Program ($385,000), as well as an estimate for storm sewer extensions to be constructed in the Fall Public Works Program ($365,000). The Winter 2006 Note Issue included $205,000 for this program which reduces the proposed borrowing to $545,000. Funding for these improvements is provided through the Stormwater Utility. . Storm Drainage Structures - $485,000 Storm drainage structures primarily consist of detention/retention ponds, greenbelts, overland flow routes and other facilities to prevent flooding from major storm events. The program proposed for 2007 supports the construction of ponds and greenbelts in new subdivisions including Wright Road Greenbelt ($240,000), Rock Prairie Greenbelt and Pond ($185,000) and Emerald Estates Pond ($60,000). . Greenbelt Protection - $20,000 In several locations where sidewalks cross greenbelts the sidewalk also goes over the top of a storm drainage structure (culvert). These locations present potential hazards if a person were to fall from the sidewalk into the greenbelt at the culvert location. This project will install railings at the top of critical storm drainage structures in greenbelts that present a fall hazard. Acquire. Improve & Maintain Parks and Public Grounds - $1,142,000 . Renovate PlaygroundslMaintain Equipment - $72,000 This project includes funding for two primary activities. In 1996, the City began a program to renovate/replace playground equipment in neighborhood parks. To date, renovations have been completed at 28 neighborhood parks at a cost of approximately $35,000 for each neighborhood park. The renovation/replacement of playground equipment will continue in 2007, with improvements proposed for Holiday Park ($35,000). Palmer Park contains the central outdoor tennis facilities for the City of Janesville. At this facility there are nine lighted tennis courts for public use. The light poles and fixtures are rusting, fading, chipping and in need of painting which requires a painting contractor. The light fixtures have not been painted since they were originally installed. This project provides for the painting of29 metal light poles and 54 light fixtures at a cost of $27,000. . Aquatics Facilities Improvements - $1,000,000 In 2006, initial funding ($255,000) was included for aquatics facilities design and improvements. An 18-member citizen committee, with the assistance of a consultant, has reviewed our current Project Descriptions 2007 Note Issue Project Descriptions aquatic facilities and prepared a recommendation for future aquatic facilities in Janesville. Their recommendation totaled $9,000,000 in three phases: Page 4 of 8 o Phase I ($5,250,000) includes funding to build a new medium swimming pool with amenities at Palmer Park ($5,000,000) and a splashpad at 4th Ward Park ($250,000). o Phase II ($3,000,000) includes funding to renovate Rockport Pool with a small shallow pool ($2,500,000) and two splashpads at Riverside Park ($250,000) and Kiwanis Park ($250,000). o Phase III ($750,000) includes funding for three splashpads at Palmer Park (to replace the current wading pool), the Northeast Regional Park and at a Southside Park ($750,000). It was originally anticipated the aquatic projects would cost $4,000,000 with initial funding of $2,000,000 proposed in the 2007 note issue and the remaining funds provided in 2008 ($1,000,000) and 2009 ($1,000,000). With the size of the committee's recommendation and the need for additional review and public comment, it is unlikely significant construction will occur in 2007. However it is desirable to move forward with the funding of this project to spread the debt over a number of years so $1,000,000 is included in the 2007 note issue. . Bike Trail Improvements - $70,000 A new bike trail will be constructed on the City's south side. This proposed bike trail will connect Jackson Elementary School with the Highway II bike trail ($70,000). Funding for this project will be provided by Tax Increment Finance (TIF) district #22. Acquire. Improve & Maintain Public Buildinl!s and Grounds - $3,084,000 . Transit Services Building - $475,000 A new Transit Administration and Maintenance Building is proposed to replace the existing facility located on North Parker Drive. The existing facility was constructed in 1961 as a public works garage and became the Transit Maintenance Facility in the mid-1960s. An addition was constructed in 1979 to provide a dedicated area for vehicle maintenance. In 2006 $100,000 was provided to fund the feasibility study and develop the building program. A new facility is estimated to cost $4,700,000, with 80% ($3,760,000) funded by the Federal Transit Act and the remainder ($940,000) provided by the City of Janesville. In 2007, land acquisition costs ($350,000) and design costs ($125,000) are proposed for funding. . Wastewater Treatment Plant Improvements - $2,000,000 In 2007, funds are proposed for Wastewater Treatment Plant improvements totaling $2,000,000. The Wastewater Utility is involved in a study to evaluate the overall conditional capacity of the Treatment Plant, optimization of electricity at the plant and overall sludge management practices. In 2006, funds were included to begin the design or implementation of the study's recommendations ($100,000). Funding for 2007 will be utilized to continue implementation of the study's recommendations. Project Descriptions 2007 Note Issue Project Descriptions Page 5 of 8 . Building Repairs - $134,000 Each year, funds are required for minor building maintenance projects at City facilities. In 2007, improvements totaling $134,000 are proposed for several public buildings. The locations include the Municipal Building, the City-owned building at 200 W. Milwaukee Street, and various park and recreational facilities. . Central Fire Station and Administration - $350,000 The central fire station and administrative offices (Fire Station #1) was constructed in 1957 and no longer meets the space or operational needs of the Fire Department. An analysis ofresponse times and ambulance/engine call data is underway and staff plans to present a report to the City Council in 2007 with recommended station locations. This proposal provides $350,000 which, when combined with the 2006 funding ($150,000) should be sufficient to pay site acquisition costs and begin the design process. . Hedberg Public Library - $125,000 The Hedberg Public Library was constructed in 1996 so the building is now eleven years old. This project proposes funding for ongoing general building maintenance needs ($50,000) as well as renovations to the library to improve the efficiency of operations ($75,000). Acquire Capital Equipment - $1,150,000 . Portable Generator - $100,000 A 150KW portable generator is proposed for the Water Utility. This generator will be able to provide electricity in the event of an extended power outage for two (2) water pumping stations. These pumping stations transfer water to higher pressure zones of the distribution system ($100,000). . Public Safety Equipment - $70,000 Funding is proposed to replace three vehicles in the Fire Department: a 1997 shift command vehicle ($26,000), a 1997 compact sedan ($13,000), and a 1998 compact pickup truck ($17,000). In addition, funding is provided to equip these vehicles with emergency equipment necessary for Fire Department operation ($14,000). . Technology Enhancements - $200,000 The City will continue implementation of the Information Technology Strategic Plan. This plan addresses maintaining the current information technology infrastructure and improving the efficiency of City services and providing citizen satisfaction through the use of information technology. In 2007, funds are requested from the General Fund ($100,000), Water Utility ($50,000) and Wastewater Utility ($50,000) to obtain consulting services and purchase hardware and software for the implementation of specific City-wide information technology priority projects, as determined by the City Manager. Project Descriptions 2007 Note Issue Project Descriptions . Police Communication System - $190,000 Page 6 of8 In 2007, funds are proposed to upgrade the Police Communication System ($190,000) to address coverage issues ($83,000) and replace approximately 106 aging and obsolete portable radios ($107,000). The Police communications system has particular coverage issues in the southwest area of the City and in the north/east growth areas. With the impending annexation of the Rock County Airport and surrounding properties, and proposed residential developments to the north and east, this issue will become more critical. In addition, a majority of the portable radios used by police officers are ten years old, with as old as fifteen years. The average life expectancy of a portable radio is seven years. . Landfill Equipment - $480,000 The volume of trash being brought to the Sanitary Landfill has increased dramatically in the last two years. In order to accommodate this increased volume, in 2007 the City rented an additional compactor at a cost of $15,000 per month. A landfill compactor compresses the trash being dumped in the landfill allowing more trash to be deposited in the same amount of space. Given the projected trash volumes at the landfill, a second compactor is being proposed at a cost of $500,000. The current compactor was purchased in 2005 and has a life expectancy of five years. This piece of equipment is experiencing more frequent breakdowns which creates operational issues. A second landfill compactor will allow for increased compaction thus extending the life of the landfill and will also provide redundancy in the event the current compactor experiences mechanical problems. The remaining portion of the funding ($20,000) will be provided from funds borrowed in 2006 for the construction of the current landfill. Construct and Maintain Solid Waste Disposal Facilities - $510,000 . New Landfill- Phase 2 Construction - $300,000 The construction of Phase 2 at the Landfill is expected to begin April 2007. In 2007, initial funding is proposed ($300,000) with the remainder of the project costs provided in 2008 and 2009. Total project funding will be $900,000 for the construction of Phase 2. . Horizontal Gas Collection System - $60,000 A temporary horizontal gas collection system is required by the DNR as a condition of approval for the operating Sanitary Landfill. The temporary system will allow the City to place the permanent gas collection header pipe system above the plastic membrane at final closure. This will significantly reduce long-term maintenance costs related to the permanent system. The City proposes to implement a horizontal gas collection system at the Landfill, with funding ($60,000) proposed in 2007. . Maintenance FacilitylFuel Tank - $150,000 A new maintenance facility and fuel tank is proposed to support the operating Landfill at a total cost of $300,000. The existing facility was constructed in 1985 and has a limited capacity. A new Landfill Maintenance Facility and fuel tank will support the operating facility for its Project Descriptions 2007 Note Issue Project Descriptions projected remaining useful life of 13 years, and would also provide support for possible future expansion. On April 23, 2007, the City Council awarded Public Works Contract 2007-9 in the amount of $252,150 for the construction of the maintenance building and on May 14, 2007, a contract in the amount of $33,170 was awarded for the fuel tank. The balance of the project ($14,680) will used for site paving and construction contingency. In 2007, initial funding ($150,000) is proposed for a Landfill Maintenance Facility and fuel tank, with the remaining funds ($150,000) provided in 2008. Page 7 of 8 Construct and Extend Water Mains - $1,225,000 . System Improvements - $400,000 This program is needed to replace undersized water mains (from 1-1/2 inch up to 4-inch main) in the distribution system. There are approximately 12 miles of undersized main in the system. Replacement is done in coordination with street restoration projects. Funds requested will replace about 3,850 feet of main ($400,000). . Main Extensions - $655,000 This program totals $1,020,000 and represents actual bid prices to extend water mains for new developments on the Spring Public Works Program ($660,000), as well as an estimate for water main extensions to be constructed in the Fall Public Works Program ($360,000). Approximately $890,000 will be assessed to developers with the remainder of the cost ($130,000) being paid by the Water Utility. The total borrowing is reduced by $365,000 due to $80,000 in carryover funds from the 2006 Note issue ($75,000 - Special Assessments and $5,000 - Water Utility), and the Winter 2006 Note Issue ($285,000 - Special Assessments). . Water Laterals - $120,000 Water laterals are included as part of the improvement process with water mains and are installed at the same time. The amount includes $120,000 for new lateral work for 2007 programs. . Lead Service Replacement - $50,000 In 2005, the Water Utility implemented a lead services replacement program within the City. This program is similar to the iron service replacement activities the City has historically undertaken. The actual cost of this program will vary from year to year based upon the number of lead services under streets that are being reconstructed in any given year. Currently, there are about 2,560 lead services in the City. In 2006, 25 lead services were replaced. In 2007, the Water Utility proposes to replace 35 lead services ($50,000). Construct and Extend Sewer Mains - $1,800,000 . System Improvements - $900,000 This program totals $900,000 and has projects that fall into three primary categories: o Sanitary Sewer Repairs - $300,000 Project Descriptions 2007 Note Issue Project Descriptions Several sanitary sewer repair projects were identified totaling $300,000 in 2007. The City's sanitary sewer system has four (4) existing siphons to convey the sewer flow from one side of the river to the other. An Engineering inspection indicates that three of the four are in need of repair ($90,000). Several manholes on Rockport Road need rehabilitation due to the significant infiltration from these manholes and at least four (4) manholes are proposed for rehabilitation in 2007 ($100,000). The removal and relocation of a 36-inch sewer main that is exposed at the flow line of Springbrook, which has caused flow obstruction and deteriorated conditions of the shoreline, is proposed in 2007 ($110,000). Page 8 of 8 o Sewer Lining - $500,000 Janesville has approximately 140 miles of clay pipe in the sanitary sewer collection system that ranges in age from 40 to 100 years. Most of the clay pipe is structurally sound, but suffers from root intrusion and infiltration of groundwater. The 2007 Budget proposes $500,000 of funding, which will reline about 3 - 3-112 miles of sanitary sewer main. This is the seventh year of a multi-year program, which reduces the potential for clogged sewers resulting from root growth and also ensures the continued structural integrity of the clay sewers. o Inflow/Infiltration Reduction - $100,000 A six-year program, estimated to cost $100,000 annually, is proposed to repair about 520 manholes to prevent stormwater inflow and infiltration. These manholes are located in greenbelts and roadside ditches and many were submerged during the 1998 flooding. The manholes will be repaired and retrofitted with either internal or external seals, if needed. This is the fifth year of the program, and since 1999, the City has repaired about 450 of the manholes that were most susceptible to flooding. . Sewer Extensions - $800,000 This program totals $1,140,000 and represents actual bid prices to extend sewer mains for new developments on the Spring Public Works Program ($735,000), as well as an estimate for water main extensions to be constructed in the Fall Public Works Program ($385,000). In addition, $20,000 is also necessary for 2006 sewer extensions funded through Special Assessments not included in the 2006 funding levels. Approximately $1,010,000 will be assessed to developers with the remainder of the cost ($130,000) being paid by the Wastewater Utility. The total borrowing is reduced by $340,000 due to $40,000 in carryover funds from the 2006 Note issue ($40,000 - Wastewater Utility), and the Winter 2006 Note Issue ($300,000 - Special Assessments) . Sewer Laterals - $100,000 Sewer laterals are included as part of the improvement process with sewer mains and are installed at the same time. The amount includes $100,000 for new lateral work for 2007 programs.