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07.02.2020CouncilPacket AMMON CITY COUNCIL MEETING THURSDAY, JULY 2, 2020 7:00 P.M. 2135 SOUTH AMMON ROAD ZOOM CALL IN INFORMATION: https://zoom.us/j/2086124000 DIAL IN: 1 (669) 900 6833 MEETING ID: 208 612 4000 PASSWORD: 26666 OR TUNE INTO RADIO BROADCAST AT 88.1FM AGENDA A.CALL TO ORDER: Mayor Sean Coletti at 7:00 p.m. Pledge of Allegiance Councilmember Wiscombe Prayer Council President Slack B.CONSENT AGENDA: 1.Accounts Payable Report: Exhibit A 2.Minutes: i.June 18, Regular Meeting C.PROCLAMATIONS AND ANNOUNCEMENTS D.PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit) E.PUBLIC HEARINGS: F.ACTION ITEMS: 1.Ordinance 641 Water Bond Financing (Micah Austin, City Administrator) 2.EIRWWA CAS Agreement 3.EIRWWA RFP 4.Resolution 2020-007R Surplus Property (Micah Austin, City Administrator) G.DISCUSSION ITEMS: 1.Staff Items i.Bonneville County Fire District ii.Fiber LID #1 Delinquent Account Discussion 2.City Council Items 3.Items H.ADJOURN INDIVIDUALS NEEDING ACCOMODATION DUE TO DISABILITY MUST CONTACT CITY HALL NO Next Resolution Number: 2020-008R Ammon City Council 06/30/2020Page 1 of 48 LATER THAN 1:00 P.M. THE DAY BEFORE THE SCHEDULED MEETING TO ARRANGE ASSISTANCE Next Ordinance Number: 643 AMMON CITY COUNCIL MEETING THURSDAY, JUNE 18, 2020 7:00 P.M. 2135 SOUTH AMMON ROAD AGENDA A.CALL TO ORDER: Mayor Sean Coletti at 7:00 p.m. Pledge of Allegiance Council President Slack Prayer Councilmember Tibbitts B.CONSENT AGENDA: 1.Accounts Payable Report: Exhibit A 2.Minutes: i.June 4, Regular Meeting ii.June 11, Work Session C.PROCLAMATIONS AND ANNOUNCEMENTS D.PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit) E.PUBLIC HEARINGS F.ACTION ITEMS: 1.Ordinance 639 Storage Unit Zoning (Cindy Donovan, City Planner) 2.Ordinance 640 Road Name Change (Micah Austin, City Administrator) 3.Resolution 2020-006R Surplus Property G.DISCUSSION ITEMS: 1.Staff Items i.Urban Renewal Area: 1st Street Innovation District ii.Fire District Resolution 2.City Council Items 3.Items H.ADJOURN MINUTES City Officials Present: Mayor Sean Coletti (in person) Council President Russell Slack (in person) Councilmember Rex Thompson (in person) Councilmember Scott Wessel (in person) Councilmember Byron Wiscombe (in person)*** Councilmember Craig Tibbitts (in person) Councilmember Josh Wheeler (via Zoom City Attorney Scott Hall (in person) City Administrator Micah Austin (in person) Finance Director Jennifer Belfield (in person) Fire Chief Stacy Hyde (in person) City Clerk Kristina Buchan (in person) A.CALL TO ORDER: Mayor Coletti opened the meeting at 7:00 p.m. at the Ammon City Hall building located at 2135 South Ammon Road. Council President Slack led the Pledge of Allegiance and Council Member Tibbitts offered a prayer. Ammon City Council 06/30/2020Page 2 of 48 B.CONSENT AGENDA: a.Accounts Payable Report: Exhibit A b.Minutes: i.June 4, Regular Meeting ii.June 11, Work Session Council discussed various items within the financials with staff explanation for each. It was moved by Council President Slack and seconded by Council Member Wessel to approve the consent agenda. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ C.PROCLAMATIONS AND ANNOUNCEMENTS Mayor Coletti recognized April Forrest for the Extra Mile Award. April has gone above and beyond with a large influx of hiring and handling all aspects of the work from home system and payroll coding in recent months. Council and staff thanked her for her amazing work. D.PUBLIC COMMENT REGARDING ITEMS NOT ON AGENDA (5-minute limit) E.PUBLIC HEARINGS F.ACTION ITEMS: a.Ordinance 639 Storage Unit Zoning (Cindy Donovan, City Planner) City Administrator Micah Austin presented Council with a proposed amendment to Code to change the locations in which storage units are allowed to be developed within the City. Austin noted that in just a few years, nearly 30 acres of land have been developed into storage units within City limits. Council discussed the implications of having so much space dedicated to this type of property and the impact it can have on local economy. Recommendation - Staff recommends approval of Ordinance 639 and Summary. Summary of Analysis 1. Ordinance 639 amends Title 10 Chapter 37-1(A) to allow storage units only in the M-1, I&M-1, I&M-2 zones. 2. Currently, storage units are allowed in all commercial zones with some restrictions. Storage Units are allowed seven commercial zones as a permitted use (C-1, HC-1, CC-1, GC-1, M-1, I&M-1, and I&M-2). They are allowed by conditional use permit in LC/PB and PB. They are allowed as part of a master plan in Multi-Use. 3. Storage units consume space which would be better used for the purpose of commercial entities with a higher employment rate and provide services to the community. 4. Storage units typically have one of the lowest jobs per acre ratio. 5. Storage units are difficult to redevelop and cannot easily be converted into any other land use. 6. Prior to 2018, there were approximately 10.8 acres of storage units within Ammon city limits. 7. Since 2018, the City has approved 32 acres of additional storage within Ammon. 8. The total storage space in Ammon, with everything approved, is now approximately 43 acres. These 43 acres will likely never produce a significant number of local jobs. 9. Most cities highly restrict storage units to industrial, manufacturing and some limited commercial zones. For example, Idaho Falls restricts storage units to only Industrial, Manufacturing, and Highway Commercial zones. In Chubbuck, Storage Units are only permitted in Industrial zones but conditionally allowed in Ag, Dense Residential, Limited Commercial and General Commercial. Notice - Mailed notices were sent to the required public entities on May 14, 2020 Ammon City Council 06/30/2020Page 3 of 48 - Notice was published in the Post Register on May 14, 2020 - Posting of a sign was not required Planning and Zoning Commission - Public hearing held on Wednesday, June 3, 2020 - Recommended approval of the ordinance as presented. Reasoned Statement: Fits Comprehensive Use Plan, preserves prime development property for its best use, storage units limit redevelopment and job growth, Commission recognizes there is limited s standard practice in most cities. Compliance with Zoning Ordinance - Title 10 Chapter 1 Purpose, Declaration, Intent It was moved by Council Member Wessel and seconded by Council Member Tibbitts to dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be waived. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ It was moved by Council Member Wessel and seconded by Council Member Tibbitts to approve Ordinance 639 amending Title 10 Chapter 37-1(A) finding it meets state standards for approval, has been noticed properly, is in accordance with the Comprehensive Plan aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ b.Ordinance 640 Road Name Change (Micah Austin, City Administrator) Austin updated Council on the status of Robins Avenue in the Bridgewater Subdivision. The original plan and plat had a road connection the various sections of the subdivision, as developments continued it was impossible to connect the various parts of the road. To assist with emergency vehicles, it was requested to adjust the name of the street to ensure accurate access. The County asked that an ordinance be passed by the City to recognize the name change. Recommendation - Staff recommends adoption of Ordinance 640 as presented. Summary of Analysis 1. Robins Avenue is a street in the Lawndale Subdivision of Bonneville County, which is located south of the Bridgewater Subdivision, which is within Ammon City Limits. 2. When Bridgewater was platted, it was intended that Robins Avenue would continue from continued through Bridgewater Divisions 1 and 3. 3. After Division 3 of Bridgewater Subdivision was built, it became clear that Lawndale and Bridgewater Subdivisions would not meet and the street, Robins Avenue, would not connect. At that point, it was required to rename the Bridgewater portion of Robins Avenue to Red Robin Avenue for public safety reasons and to avoid confusion. 4. Ordinance 640 officially renames Robins Avenue of Divisions 1 and 3 of Bridgewater to Red Robin Avenue. Financial Impact - No immediate cost impact is known. The street signs were erected by the developer with the name Red Robin Avenue. It was moved by Council President Slack and seconded by Council Member Wheeler to dispense with the rule requiring the reading of the ordinance on three different days and that the three readings be waived. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ Ammon City Council 06/30/2020Page 4 of 48 It was moved by Council President Slack and seconded by Council Member Wessell to approve Ordinance 640 to change the name of the street Robins Avenue to Red Robin Avenue in Bridgewater Subdivision. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ c.Resolution 2020-006R Surplus Property Austin explained the need for declaring items from the technology department as surplus. Director Patterson reviewed the items to be considered noting that declaring them surplus and selling them for a lower than market price would provide more of a cost offset than returning the items to the original purchasing company. Recommendation - Declare four (4) Fiber Store S5800-48F4S network switches and two (2) Brocade 6910 network switches as surplus, thus allowing the S5800-48F4S to be sold at auction and the 6910s to be sold to Bonneville County for $500. Summary of Analysis 1. Section 1-13-13 of the Ammon municipal code allows the City Council to declare any city- owned personal property as surplus. 2. Declaring property surplus allows staff to sell the property according to 1-13-13 3. Fiber Store S5800-48F4S equipment has been replaced by S5800-48F4SR which adds an API functionality which provides for security and better auto-provisioning. 4. We will not be able to sell the units in inventory for the same cost as new, but as they were purchased as inventory as replacement backups and for new development. 5. We should be able to get 65% of costs paid and V2 replacements cost 15% less for an estimated net loss of $1400 for all 4 switches. 6. The two Brocade 6910 have been in use for over 5 years. Their use has changed over time and currently they are only in use by the County. These units sell used on Ebay for between $80 and $700. Staff recommends that we sell both units to the County for $250 each or $500 total. Financial Impact o No additional costs. o Selling units for less than paid by City, but staff feels that this is important in achieving better functionality/performance. o Staff feels that costs are reasonable and sustainable as part of operations. It was moved by Council President Slack and seconded by Council Member Tibbitts to to approve Resolution 2020-006R to declare the equipment identified in the resolution as surplus with specifically listed items sold directly to Bonneville County. aƚƷźƚƓ ƦğƭƭĻƭ ǒƓğƓźƒƚǒƭƌǤ ǞźƷŷ ǝƚƷĻ ĬǤ Ʃƚƌƌ ĭğƌƌ Λ/ƚǒƓĭźƌ aĻƒĬĻƩ ‘źƭĭƚƒĬĻ ŷğķ ƓƚƷ ǤĻƷ ƆƚźƓĻķ ƷŷĻ ƒĻĻƷźƓŭ ğƷ Ʒŷźƭ ƷźƒĻ ğƓķ ķźķ ƓƚƷ ĭğƭƷ ğ ǝƚƷĻ ƚƓ Ʒŷźƭ źƷĻƒΜ G.DISCUSSION ITEMS: a.Staff Items i.Fire District Resolution Austin and Mayor Coletti reviewed the draft agreement to join into the Bonneville County Fire District presented to Council detailing each item within the agreement. Council discussed the cost of the transition and leasing options and gave guidance to the committee to bring back for further discussion. Mayor Coletti and present Ammon Fire staff discussed their concerns regarding the transition and what new leadership could mean for existing staff and procedures. ii.Urban Renewal Area: 1st Street Innovation District st Austin updated Council on the plans for an Urban Renewal Area in the 1 street area and sought guidance from Council on their desires to move forward with the plan. Austin Ammon City Council 06/30/2020Page 5 of 48 detailed the various aspects of the intent to create a district and what implications that might have for the City. Council asked Austin to move forward with discussion and plans to create the URA. iii.Mayor Coletti discussed Ammon Days 2020 with Council and added concerns coming from internal and external sources. Coletti reviewed the concerns that have come in and asked for input from Council. Council asked that staff continue to move forward with planning with consideration that it could be a different event than in the past. H.ADJOURN The meeting was adjourned at 9:48pm _____________________________ Sean Coletti, Mayor _____________________________ Kristina Buchan, City Clerk Ammon City Council 06/30/2020Page 6 of 48 Ammon City Council 06/30/2020Page 7 of 48 PROCEDURES PROCEDURE TO ADOPT AN ORDINANCE Ordinance No.641introduced and read by title. AN ORDINANCE OF THE CITY OF AMMON, BONNEVILLE COUNTY, IDAHO, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A WATER REVENUE REFUNDING BOND, SERIES 2020, IN A PRINCIPAL AMOUNT NOT TO EXCEED $8,888,384, FOR THE PURPOSE OF REFUNDING THE CITYS OUTSTANDING WATERREVENUE BOND, SERIES 2012; PROVIDING FOR THE REDEMPTION OF THEOUTSTANDING WATER REVENUE BOND, SERIES 2012; PROVIDING FOR THECOLLECTION AND APPLICATION OF WATER REVENUES TO PAY THE PRINCIPAL OFAND INTEREST ON THE BOND; ESTABLISHING FUNDS; PROVIDING FOR THE FORM,EXECUTION, REGISTRATION, MATURITY, AND PAYMENT OF THE BOND;PROVIDING COVENANTS RELATING TO THE BOND AND THE TAX-EXEMPT STATUSOF THE INTEREST ON THE BOND; APPROVING A LOAN AGREEMENT WITHJPMORGAN CHASE BANK, NA; PROVIDING FOR RELATED MATTERS; APPROVING ASUMMARY OF THIS ORDINANCE FOR PUBLICATION; AND PROVIDING ANEFFECTIVE DATE. Councilperson moves: with the rule requiring the reading of the ordinance on three different days and th Councilperson seconds: Roll call vote on motion. Ordinance again read by title and read in full. TITLE AND FULL Councilperson moves: No.641as an ordinance of the City of Ammon on its third and final Councilperson seconds: Roll callvote. Ammon City Council 06/30/2020Page 8 of 48 ORDINANCE NO.641 AN ORDINANCE OF THE CITY OF AMMON,BONNEVILLECOUNTY, IDAHO, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A WATERREVENUE REFUNDING BOND, SERIES 2020, IN APRINCIPAL AMOUNT NOT TO EXCEED $8,888,384,FOR THE PURPOSE OF REFUNDING THE CITYS OUTSTANDING WATER REVENUE BOND, SERIES 2012;PROVIDING FOR THE REDEMPTION OF THE OUTSTANDING WATERREVENUE BOND, SERIES 2012;PROVIDING FOR THE COLLECTION AND APPLICATION OF WATERREVENUES TO PAY THE PRINCIPAL OF AND INTEREST ON THE BOND; ESTABLISHING FUNDS; PROVIDING FOR THE FORM, EXECUTION, REGISTRATION, MATURITY, AND PAYMENT OF THE BOND; PROVIDING COVENANTS RELATING TO THE BOND AND THE TAX-EXEMPT STATUS OF THE INTEREST ON THE BOND; APPROVING A LOAN AGREEMENTWITH JPMORGAN CHASE BANK, NA;PROVIDING FOR RELATED MATTERS; APPROVING A SUMMARY OF THIS ORDINANCE FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Ammon,BonnevilleCounty, Idaho (the City), is a municipal corporation duly organized and operating under and pursuant to the laws of the State of Idaho; and WHEREAS, the City owns and operatesadomestic watersystem (the System) for the benefit of the residents of the City; and WHEREAS, the City heretofore, on January 5, 2012, issuedits Water Revenue Bond, Series 2012, in the original principal amount of $14,287,000, the principal amount of which WHEREAS, the Mayor and City Councilhavedetermined that it is in the best interests of the City and its utility ratepayers to refund the Refunded Bondand to issue refunding bonds for that purpose; and WHEREAS, the City is authorized by the Constitution and laws of Idaho to issue refunding bondsto refund its outstanding obligationswhenever the Mayor and Council determine that a savings or other beneficial public objective can be achieved thereby, without an approving vote of the electors of the City, and to sell such refunding bonds at private sale; and WHEREAS, the ordinancepursuant to which the Refunded Bondwasissued reservesthe right of the City to redeem the Refunded Bond, in full, prior to maturity, upon notice as provided in said ordinance;and WHEREAS, the City is authorized to sell its bonds at private sale and the City is further authorizedto enter into a loan agreement for such purpose, and the Mayor and Council have determined to issue the refunding obligations of the City in the form of a single, amortized water revenue refunding bond in an aggregate principal amount not to exceed $8,888,384toJPMorgan Chase Bank, NA. Ammon City Council 06/30/2020Page 9 of 48 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF AMMON,BonnevilleCounty, Idaho, as follows: Section 1: DEFINITIONS As used in this Ordinance, the following words shall have the following meanings: Actmeans, collectively, Title 50, Chapter 10, Title 57, Chapters 2, 5, and 9, and Title 67, Chapter 87, Idaho Code. Additional Bondsmeans any bonds or other obligations issued pursuant to Section 9 of this Ordinance. Annual Debt Servicemeans the amount required in a given Fiscal Year of the City for the payment of the principal of and interest on the Bondand any Additional Bonds. Average AnnualDebt Servicemeans the average annual amount required over the term of the Bondand any Additional Bondsfrom the time of calculation for the payment of the principal of and interest on the Bondand any Additional Bonds. Bondmeans the AmmonWaterRevenue Refunding Bond, Series 2020 authorized to be issued, sold, and delivered. Bond Counselmeans MSBT Law, Chartered, Boise, Idaho, or another attorney at law or a firm of attorneys of nationally recognized standing in matters pertaining to the tax-exempt status of interest on obligations issued by states and their political subdivisions, duly admitted to the practice of law before the highest court of any state of the United States. Bond Fundmeans the Bond Fund established by Section 8(A)of this Ordinance. Bond Registermeans the registration books on which are maintained the names and addresses of the owners or nominees of the owners of the Bond. Bond Registrarmeans the bond registrar, transfer agent, and authenticating and paying agent appointed and designated in Section 6 of this Ordinance, and any successor Bond Registrar. Citymeans the City of Ammon,BonnevilleCounty, Idaho. City Clerkmeans the Clerk of the City, or other officer of the City who is the custodian of the seal of the City and of the records of the proceedings of the City, or his/her successor in functions, if any. Codemeans the Internal Revenue Code of 1986, as amended. Cost of IssuanceFundmeans the fund created by Section 8(A) of this Bond Ordinance for the payment of the costs of issuance of the Bond. Ammon City Council 06/30/2020Page 10 of 48 Councilmeans the City Council of the City. Estimated Net Revenuesmeans, for any current or prior Fiscal Year of the City, the estimated Revenues of the System for such year less the estimated Operation and Maintenance Expenses for such year, based upon estimates prepared by the City Engineer or an independent engineer,or an independent certified public accountant. In computing Estimated Net Revenues, Revenues of the System may be adjusted as necessary to reflect any changed schedule of rates and charges. Fiscal Yearmeans the annual fiscal year of the City, currently commencing on October 1 of each year and ending on September 30 of the following year. Government Obligationsmeans (a) direct, noncallable United States Treasury Obligations, and (b) United States Treasury Obligations -State and Local Government Series. Interest Payment Date(s)means each November 1 and May 1, commencing November 1, 2020. Loan Agreementmeans the loan agreement between the Purchaserand the City, substantially in the form of the bond purchase agreement which is annexed hereto as Exhibit B, and referred to and authorized in Section 14of the Ordinance. Mayormeans the Mayor of the City, or his/her successor in functions, if any. Net Revenuesmeans Revenue of the System after the deduction of Operation and Maintenance Expenses. Operation and Maintenance Expensesor any phrase of similar import means all reasonable and necessary current expenses of the City (except depreciation), paid or accrued, of operating, maintaining, and repairing the System or of levying, collecting, and otherwise administering the Net Revenues for the payment of the Bond; and the term includes (except as limited by contract or otherwise limited by law) without limiting the generality of the foregoing: (1)Engineering, auditing, reporting, legal, and other overhead expenses of the various City departments directly relating and reasonably allocable to the administration of the System; (2)Fidelity bonds and property and liability insurance premiums pertaining to the System, or a reasonably allocable share of a premium of any blanket bond or policy pertaining thereto; (3)Payments to pension, retirement, health, and hospitalization funds and other insurancerelated to the System; Ammon City Council 06/30/2020Page 11 of 48 (4)Any taxes, assessments, excise taxes, or other charges which may be lawfully imposed on the City, the System, revenues therefrom, or any privilege in connection with their operation; (5)The reasonable charges of the bond registrar, fiscal or paying agent, commercial bank, trust bank, or other depository bank pertaining to the Bond issued by the Cityor pertaining tothe Project, if any; (6)Contractual services, professional services, salaries, other administrative expenses, and the cost of materials, supplies, repairs, and labor, pertaining to the Bond and to the ordinary operationof the System; and (7)All other administrative, general, and commercial expensesof the System. Ordinancemeans this Ordinance No.641, adopted on July 2,2020. Projectmeans the redemption and refunding of the Refunded Bond. Purchasermeans JPMorgan Chase Bank, NA as purchaser of the Bond. Refunded Bondmeans the City of Ammon Water Revenue Bond, Series 2012, issued on January 5, 2012, in the principal amount of $14,287,000 pursuant to Ordinance No. 509 of the City, adopted on December 15, 2011. Registered Ownermeans the purchaser of the Bond and any subsequent transferee or purchaser of the Bond. Regulationsmeans the Treasury Regulations issued or proposed under Section103, Section 148, Section 149, or Section 150 of the Code (26 CFR Part2) or other sections of the Code relating to arbitrage bondsor rebate, including without limitation Sections 1.148-0through 1.148-11 and 1.150-1 of the Treasury Regulations, to the extent applicable, and includes amendments thereto or successor provisions. Revenue Fundmeans the City of AmmonWaterRevenue Fundreferred to in Sections 8(A) and 8(D) of this Ordinance. Revenue of the Systemmeans all revenues received by the City from its System, including, without limitation, rates, charges, rents, connection fees, other fees, and any other income derived from the operation or ownership of, the use of services of, or the availability of or services pertaining to, or otherwise derived in connection with, the System or all or any part of any property pertaining to the System. Systemmeansthedomesticwatersystem of the City, as the same now exists, including its assets, real and personal, tangible and intangible, and as it may later be added to, extended, and improved, and shall include buildings, structures, utilities, or other income producing water Ammon City Council 06/30/2020Page 12 of 48 facilities from the operation of or in connection with which the revenues of the payment of the Bond to be issued hereunder will be derived, and the lands pertaining thereto. Treasurermeans the Treasurer of the City, or his/her successor in functions, if any. Written Certificatemeans an instrument in writing on behalf of the City executed by an authorized officer of the City. Section 2: FINDINGS The Mayor and Council hereby find, determine, and declare: A.That the CitysRefunded Bondcan be refunded at a cost saving to the benefit of the City and its utility ratepayers; that it is desirable and necessary for the benefit of the City and its utility ratepayersto refund the Refunded Bondfor the purpose of achieving a cost saving and other beneficial public objectives; and that the net proceeds of the Bond, together with other lawfully available moneys of the City, to the extent necessary, shall be used to refund the Refunded Bond. B.That it is the intent of the Mayor and Council to issue the Bond for the purpose of providing funds in an amount sufficient, together with other lawfully available funds of the City, if necessary, to refund, redeem, and retire the Refunded Bond. Section 3: THE BOND The Bond, designated City of AmmonWaterRevenue Refunding Bond, Series 2020(the Bond), in an aggregate principal amount not to exceed $8,888,384,is hereby authorized to be issued, sold, and delivered pursuant to the Act. The Bondshall consist of a single, transferrable, amortized revenue bond, substantially in the form annexed hereto as Exhibit A,shall be issued in fully registered form, shall be dated as of its date of delivery, and shall bear interest on its unpaid principalbalance at such rate or rates, shall be payable at such times and in such amounts, and shall mature, as shall be set forth in the Loan Agreement. Section4: EXECUTION The Bond shall be executed by the manual signature of the Mayor, countersigned by the manual signature of the Treasurer, and attested by the manual signature of the City Clerk, and the seal of the City shall be impressed thereon. Section 5: PLACE AND MANNER OF PAYMENT Both principal of and interest on the Bond shall be payable in lawful money of the United States of America to the Registered Ownerthereof, at the address of such Registered Owneras shown on the registration records of the City, or at such other address as shall be designated in writing to the City by the Registered Owner. Section 6: BOND REGISTRAR Ammon City Council 06/30/2020Page 13 of 48 The Treasureris hereby appointed as bond registrar, transfer agent and paying agent, and is herein referred to as the Bond Registrar.The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and transfer of the Bond. The Bond Registrar is authorized, on behalf of the City, to carry out all of the Bond Registrars powers and duties under this Ordinance. The Bond may be transferred only upon the books for the registration and transfer of bonds (the Bond Register), upon the surrender thereof to the Bond Registrar, together with a form of transfer duly executed by the Registered Owner or its attorney duly authorized in writing. Upon the transfer of aBond, there shall be issued in the name of the transferee or transferees a new fully registered bond or bonds of any authorized denomination or denominations and of the same maturity and interest rate, and of the same aggregate principal amount, as the surrendered Bond. The new bond or bonds shall bear the same date as the date of the surrendered bond, but shall bear interest from the immediately preceding interest payment date to which interest has been paid or fully provided for. This Section is intended to provide the system of registration required by Chapter 9, Title 57, Idaho Code. Section 7: PRE-PAYMENT; DEFEASANCE The City does not have to option to prepay the Bond. In the event that money and/or government obligations, maturing or having guaranteed redemption prices at the option of the owner at such time or times and bearing interest to be earned thereon in such amounts as are sufficient (together with any resulting cash balances) to redeem and retire part or all of the Bond in accordance with its terms, are hereafter irrevocably set aside in a special account and pledged to effect such redemption and retirement, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bond so provided for, and the Bond and interest accrued thereon shall then cease to be entitled to any lien, benefit, or security of this Ordinance, except the right to receive the funds so set aside and pledged, and the Bond and interest accrued thereon shall no longer be deemed to be outstanding hereunder. Section 8:FUNDS AND ACCOUNTS REDEMPTION OF REFUNDED BOND A.Establishment of Funds and Accounts. The following funds and accounts are created or confirmed with respect to the Bond. 1.Bond Fund, to be held by the City. 2.Cost of Issuance Fund, to be held by the City. 3.Revenue Fund, to be held by the City. Ammon City Council 06/30/2020Page 14 of 48 B.Delivery of Bond; Application of Proceeds. The Treasureris hereby instructed to receive payment therefor in accordance with the terms of this Ordinance and deposit the proceeds of sale as follows: 1.A portion of the proceeds of sale of the Bond,or other funds of the City,as shall be designated by WrittenCertificate of the City,shall be deposited in the Cost of Issuance Fund. 2.Accrued interest on the Bond from its date to the date of delivery, if any, shall be deposited into the Bond Fund. 3.The remaining proceeds of the sale of the Bond,together with additional funds of the City,if any,shall be used to redeem the Refunded Bond. C.Redemption of Refunded Bond (1)The Refunded Bondis hereby irrevocably called for redemption on July 8, 2020. The Refunded Bondisbeing redeemed at a redemption price of par plus accrued interest to the date of redemption. D.Revenue Fund. There has heretofore been created a special fund known as the City of AmmonWaterRevenue Fund(the Revenue Fund), which shall be maintained by the Treasurer and into which the Revenue of the System shall be deposited forthwith upon its receipt. The Revenue of the System shall be used for payment of the following obligations in the following order of priority: 1.First Charge and Lien: the costs of Operationand Maintenance Expenses; 2.Second Charge and Lien: the principal of and interest on the Bondand any Additional Bonds, by payment into the Bond Fund; and 3.To administer surplus funds. Funds remaining in the Revenue Fund, after having been applied to the purposes provided in this Ordinance, shall constitute surplus funds and may be used for the purposes set forth in Section 8(G)of this Ordinance. E.BondFund. There is heretofore created a special fund known as the City of AmmonWaterRevenue Bond Fund(the Bond Fund), into which shall be deposited, from Net Revenues,the following described revenues: 1.Each semi-annual installment of interest andprincipal payable on the Bond shall be payable into the Bond Fund from the RevenueFund. The moneys herein allocated shall be used solely to pay currently maturing installments of principal of and interest on the Bond. {Should this reference Additional Ammon City Council 06/30/2020Page 15 of 48 Bonds as well. If so, you should indicate how a shortfall between the Bond and Additional Bonds will be allocated.} 2.Interest earnings on deposits in the Bond Fund shall remain in the Bond Fund to be used for the purposes of the Bond Fund. F.Cost of Issuance Fund. There is hereby established a separate fund designated as ,the City shall deposit into the Cost of Issuance Fund such amount as shall be required to pay the reasonable and necessary costs of issuance of the Bond. Moneys in the Cost of Issuance Fund shall be used for the payment of costs of issuance of the Bond. Any moneys remaining in the Cost of Issuance Fund on the date of the full and final payment of all costs of issuance of the Bond shall be transferred to the City and deposited into the Bond Fund. G.Surplus Funds. Funds remaining in the Revenue Fund after having been applied to or designated funds for the purposes provided in Section 8(D)of this Ordinance shall constitute surplus funds and may be used for any of the following purposes: 1.To pay the costs of unusual or extraordinary maintenance of orrepair to the System; 2.To pay the principal of and interest on any subordinate lien obligations which may have been issued to provide waterfacilities in or for the City; 3.To improve, extend, enlarge, or replace any waterfacilities; 4.To acquire or construct additional waterfacilities in or for the City; 5.To prepay the principal, interest, and any costs of the Bond; and 6.For any other lawful purpose. Section 9: ADDITIONAL BONDS A.Limitation Upon Issuance of Parity Obligations. Nothing contained in this Ordinance shall be construed in such a manner as to prevent the issuance by the City of Additional Bondspayable from the Net Revenues on a parity with, but neither prior nor superior to, the lien of the Bondherein authorized; provided, however, that before any such Additional Bondsare authorized or actually issued: (1)The City is not, and has not been, in default as to any payments required by the provisions of this Ordinance for a period of not less than twelve (12) months immediately preceding the issuance of such Additional Bonds. (2)The Net Revenues of the System for the past twelve (12) consecutive months immediately preceding the year of the issuance of such Additional Bondsshall Ammon City Council 06/30/2020Page 16 of 48 have been sufficient to pay the Operation and Maintenance Expenses of theSystem for said past twelve (12) months, and, in addition, sufficient so that the Net Revenues for such preceding year equal an amount representing at least 125% of the Annual Debt Serviceof the outstanding Bondand any other outstanding Additional Bonds. (3)The Estimated Net Revenues of the System for the twelve-month period immediately succeeding the issuance of the Additional Bondsproposed to be issued will be not less than 125% of the Annual Debt Servicerequirements of the Bondand any other outstanding Additional Bonds, plus the Average Annual Debt Servicerequirements of the Additional Bondsproposed to be issued. (4)A written certification by the Treasurer that the 125% Net Revenue requirement of subsection (2) above, andthe 125%Estimated Net Revenues requirement of subsection (3) above hasbeen satisfied shall be obtained and filed with the City, which certification shall be conclusively presumed to be accurate in determining the right of the City to authorize, issue, sell, and deliver said Additional Bondson a parity with the Bond authorized herein. (5)The foregoing limitations, or any of them, may be waived or modified by the written consent of the Registered Owner of not less than 75% of the principal amount of the Bond then outstanding. B.Subordinate Lien Bond.No provision of this Ordinance shall be deemed to limit or restrict the power of the City to issue bonds, notes or warrants, or to make pledges of the revenues which shall be subordinate as to the lien of the Bondand which shall provide for compliance with the current provisions hereof prior to the application of any funds to said subordinate purpose. C.Refunding. The restrictions with respect tothe issuance of parity obligations shall not apply if such additional parity bondsproposed to be issued are for the sole purpose of refunding outstanding waterrevenue bondsand the Annual Debt Service requirements for such refunding additional parity bonds are less than or equal to the Annual Debt Service requirements for the water revenue bonds being refunded for each Fiscal Year such bonds are outstanding. Section 10: PLEDGE OF REVENUES The Net Revenues of the System are hereby pledged for the payment of the Bond and shall be used and applied in the order of priority provided in Section 8(D)of this Ordinance. The City shall establish, revise, maintain, and collect charges sufficient, with other revenues received, after taking into consideration anticipated delinquencies, to provide Net Revenues equal to not less than 1.25times the Average Annual Debt Service on the Bondand any Additional Bonds. Section 11: INVESTMENTS Ammon City Council 06/30/2020Page 17 of 48 Surplus funds in any of the funds set forth in this Ordinance may be invested in securities as permitted by law. Section 12: GENERAL COVENANTS For the protection and security of the Bond, it is covenanted and agreed to and with the Registered Ownerof the Bond from time to time, that the City will perform the following covenants: A.Operate System.It will operate the System in an efficient and economical manner and prescribe, revise, and collect such charges in connection therewith so that the services, facilities, and properties of the System may be furnished at the lowest possible cost consistent with sound economy and prudent management. B.Good Repair.It will operate, maintain, preserve, and keep the System and every part hereof in good repair, working order, and condition. C.Preserve Security.It will preserve and protect the security of the Bond and the rights of the Registered Ownerthereof. D.Collect Revenues.It will collect and hold in trust the revenues andother funds pledged to the payment of the Bond and apply such revenue or other funds only as provided in this Ordinance. E.Service Bond.It will pay and cause to be paid punctually the principal of the Bond and the interest thereon on the date or dates and at the place or places and in the manner provided in the Bond, and in accordance with this Ordinance. F.Pay Claims.It will pay and discharge any and all lawful claims for labor, materials, and supplies which, if unpaid, might by law become a lien or charge upon the Revenue of the System, or any part of said Revenue of the System, or any funds in the hands of the Treasurer, prior or superior to the lien of the Bond or which might impair the security of the Bond, to the end that the priority and security of the Bond shall be fully preserved and protected. G.Encumbrances.It will not mortgage or otherwise encumber, sell, lease, or dispose of the System or any part thereof, nor enter into any lease or agreement which would impair or impede the operation of the System or any part thereof necessary to secure adequate revenues for the payment of the principal of and interest on the Bond, nor which would otherwise impair or impede the rights of the Registered Ownerof the Bond with respect to such revenues of the operation of the System without provisions for the retirement of the Bond then outstanding from the proceeds thereof. H.Insurance.It will procure and keep in force insurance upon all buildings and structures of the System and the machinery and equipment therein, which are usually insured by entities operating like property, in good and responsible insurance companies.The amount of the insurance shall be such as may be required to adequately protect it and the Registered Ownerof Ammon City Council 06/30/2020Page 18 of 48 the Bond from loss due to any casualty, and in the event of any such loss, the proceeds shall be used to repair or restore the System or for the payment of the Bond issued under this Ordinance. I.Engineers.It will employ consulting engineers of acknowledged reputation, skill, and experience in the improvement and operation of the System for any unusual or extraordinary items of maintenance, repair, or betterments as shall be required from time to time, all reports, estimates, and recommendations of such consulting engineers to be filed with the Clerk and furnished to the Registered Ownerof the Bond issued hereunder, upon request. J.Accounts.It will keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to the System, and it will furnish complete operating and income statements upon request. K.Delinquencies.It will not furnish Systemservice to any customer whatsoever free of charge, and it shall not later than sixty (60) days after an account becomes delinquent, take such legal action as may be reasonable to enforce collection of any collectible delinquent account. L.Disclosure. The City will provide the Registered Ownerwith its annual audit, within 270 days of the Fiscal Year end and its annual budget within 30 days of adoption. The City will provide other financial information as reasonably requested by the Registered Owner. Section 13: SPECIAL COVENANTS The City further covenants and agrees: A.In accordance with Section 149(a) of the Internal Revenue Code of 1986, as amended (the Code), the Bond, and any serial bonds to which itmay be converted, shall be issued and remain in fully registered form in order that interest thereon be excluded from gross income of the owner or owners for federal income tax purposes. The City covenants and agrees that it will take no action to permit the Bond, or any serial bonds to whichitmay be converted, to be issued in or converted to bearer or coupon form. B.None of the proceeds of the Bondwill be used, directly or indirectly, (i) to make or finance loans to persons or (ii) in any trade or business carried on by any person (other than as a member of the general public). For purposes of the preceding sentence, the term persondoes not include a government unit other than the United States or any agency or instrumentality thereof, and the term trade or businessmeans any activity carried on by a person other than a natural person.The City further covenants and agrees to take no action which would cause the Bondto become aprivate activity bond,nor will it omit to take any action necessary to prevent the Bond from becoming aprivate activity bond,within the meaning of Section 141 of the Code. C.The Mayor, Clerk, and Treasurer, and other appropriate officials of the City, or any one or more of such officials, as may be appropriate, are each hereby authorized and directed to execute, on behalf of the City, such certificate or certificates as shall be necessary to establish that the Bondisnot anarbitrage bondwithin the meaning of Section 148 of the Code and the Ammon City Council 06/30/2020Page 19 of 48 Regulations promulgated thereunder, and to establish that interest on the Bondisnot and will not become includable in the gross income of the Registered Ownerof the Bondunder the Code and applicable regulations. The City covenants and agrees that no use will be made of the proceeds of the Bond, or any funds of the City which may, pursuant to Section 148 of the Code and applicable regulations, be deemed to be proceeds of the Bond, which would cause the Bondto become an arbitrage bondwithin the meaning of Section 148 of the Code. The City further covenants to comply throughout the term of the Bondwith the requirements of Section 148 of the Code and the regulations promulgated thereunder in order to prevent the Bondfrom becoming an arbitrage bond. D.The Bondis hereby designated as a qualified tax-exempt obligationwithin the meaning and for the purpose of Section 265(b)(3) of the Internal Revenue Code of 1986 (the Code), and the City, including all aggregated issuers as described in Section 265(b)(3)(E), does not reasonably anticipate that it will issue more than$10,000,000, including the Bond, as qualified tax-exempt obligations during the calendar year 2020. Section 14: LOAN AGREEMENT The Loan Agreement, as may be amended and similar to the formof the bond purchase agreementannexed hereto as Exhibit B,is hereby approved. The Mayor and City Clerk, or such officers designee, are each hereby authorized and directed, on behalf of the City, to execute and attest, respectively, and to deliver the Loan Agreementas such Agreement may be revised. The sale of the Bondto the Purchaser is hereby approved. The City shall comply with all terms and provisions of the Loan Agreement, and, in the event that any provision of this Ordinance or the Bondisinconsistent with the provisions of the Loan Agreement, the provisions of the Loan Agreement shall control. Section 15: AMENDMENTS A.The City from time to time and at any time may adopt an ordinance or ordinances supplemental hereto, which ordinance or ordinances thereafter shall become a part of this Ordinance, for any one or more of all of the following purposes: 1.To add to the covenants and agreements of the City in this Ordinance, other covenants and agreements thereafter to be observed, which shall not adversely affect the interest of the Registered Ownerof the Bond, or to surrender any right or power herein reserved. 2.To make such provisions for the purpose of curing any ambiguities or of curing, correcting, or supplementing any defective provisions contained in this Ordinance, or any ordinance authorizing Additional Bondsin regard to matters or questions arising undersuch ordinances as the Council may deem necessary or desirable and not inconsistent with such ordinances and which shall not adversely affect, in any material respect, the interest of the Registered Ownerof the Bond. Ammon City Council 06/30/2020Page 20 of 48 Any such supplemental ordinance may be adopted without the consent of the Registered Ownerof the Bondat any time outstanding, notwithstanding any of the provisions of subsection B of this Section. B.With the consent of the Registered Ownerof notless than 75% in aggregate principal amount of the Bondat the time outstanding, the Council may adopt an ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Ordinance or of any supplemental ordinance; provided, however, that no such supplemental ordinance shall: 1.Extend the fixed maturities of the Bond, or reduce the rate of interest thereon, or extend the time of payments of interest from theirdue date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, if applicable, without the consent of the Registered Ownerof the Bondso affected; or 2.Reduce the aforesaid percentage of the Registered Ownerrequired to approve any such supplemental ordinance. It shall not be necessary for the consent of the Registered Ownerunder this subsection B to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. C.Upon the adoption of any supplemental ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be modified and amended in accordancetherewith, and the respective rights, duties, and obligations of the City under this Ordinance and the Registered Ownerof the Bondoutstanding hereunder shall thereafter be determined, exercised, and enforced thereunder, subject in all respects to such modification and amendments, and all terms and conditions of any such supplemental ordinance shall be deemed to be part of the terms and conditions of this Ordinance for any and all purposes. D.Any bond executed anddelivered after the execution of any supplemental ordinance adopted pursuant to the provisions of this Section may have a notation as to any matter provided for in such supplemental ordinance, and if such supplemental ordinance shall so provide, new bondsso modified as to conform, in the opinion of the Council, to any modification of this Ordinance contained in any such supplemental ordinance, may be prepared and delivered without cost to the Registered Owner of the Bond then outstanding, upon surrender for cancellation of the Bond. Section 16: VALIDITY OF ISSUANCE The Bondis issued pursuant to the Idaho Revenue Bond Act, being Idaho Code Sections 50-1027 through 50-1042. This recital is conclusive evidence of the validity of the Bondand the regularity ofitsissuance. Section 17: REGISTERED OWNERS REMEDIES -RECEIVER Ammon City Council 06/30/2020Page 21 of 48 By action or suit in equity, the Registered Owneror subsequent owners of the Bond may, in the event of a material violation of any of the foregoing covenants, cause the appointment of a receiver, which receiver may enter and take possession of the System and any Net Revenues for the payment of the Bond, prescribe fees to be derived from the System, and collect, receive, and apply all Net Revenues of other moneys pledged for the payment of the Bond in the same manner as the City might do in accordance with the obligations of the City.In addition, the Registered Ownershall have the remedies set forth in the Loan Agreement. Section 18: ORDINANCE A CONTRACT The provisions of this Ordinance shall constitute a contract between the City and the Registered Ownerso long as the Bond hereby authorized remainsunpaid. Section19: SEVERABILITY If any one or more of the covenants or agreements provided in this Ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Ordinance and shall in no way affect the validity of the other provisions of this Ordinance or of the Bond. Section 20: REPEALER All other ordinances or parts thereof, to the extent inconsistent herewith, are hereby repealed and shall, to the extent of such inconsistency, have no further force or effect. Section 21: AUTHORIZATION The Mayor, City Clerk, and City Treasurer, or any one of such officers, as may be appropriate to the circumstances, are hereby authorized to execute, on behalf of the City, the Bond, the Bond Purchase Agreement, and all such additional documents as may be necessary to effect the sale and delivery of the Bond. Section 22: PUBLICATION This Ordinance, or a summary thereof in compliance with Section 50-901A, Idaho Code, shall be published once in the official newspaper of the City, and shall take effect immediately upon passage, approval, and publication. nd DATED this2day ofJuly,2020. CITY OF AMMON BonnevilleCounty, Idaho Ammon City Council 06/30/2020Page 22 of 48 By________________________________ Mayor ATTEST: ____________________________ City Clerk ( S E A L ) Ammon City Council 06/30/2020Page 23 of 48 UNITED STATES OF AMERICA RegisteredRegistered No. One$8,888,384 STATE OF IDAHO COUNTYOF BONNEVILLE CITY OFAMMON WATERREVENUEREFUNDING BOND, SERIES 2020 THE CITY OFAMMON,BonnevilleCounty, Idaho (the City), for value received, promises to pay from the special fund hereinafter described and in the manner hereinafter set forth, and not otherwise, toJPMorgan Chase Bank, NA(the Bank), as the registered owner hereof, the principal sum of EIGHT MILLION EIGHT HUNDRED EIGHTY-EIGHT THOUSAND THREE HUNDRED EIGHTY-FOURDOLLARS AND 00/100 DOLLARS ($8,888,384.00),together with interest on the unpaid balance.Said principal and interest shall be payable in accordance with the following schedule: DATEPRINCIPALCOUPONINTERESTTOTAL P&I 11/01/2020$397,9931.210%$33,758.58$431,751.58 05/01/2021$380,3851.210%$51,366.87$431,751.87 11/01/2021$382,6861.210%$49,065.54$431,751.54 05/01/2022$385,0011.210%$46,750.29$431,751.29 11/01/2022$387,3311.210%$44,421.03$431,752.03 05/01/2023$389,6741.210%$42,077.68$431,751.68 11/01/2023$392,0321.210%$39,720.15$431,752.15 05/01/2024$394,4031.210%$37,348.36$431,751.36 11/01/2024$396,7891.210%$34,962.22$431,751.22 05/01/2025$399,1901.210%$32,561.64$431,751.64 11/01/2025$401,6051.210%$30,146.55$431,751.55 05/01/2026$404,0351.210%$27,716.83$431,751.83 11/01/2026$406,4791.210%$25,272.42$431,751.42 05/01/2027$408,9381.210%$22,813.23$431,751.23 11/01/2027$411,4131.210%$20,339.15$431,752.15 05/01/2028$413,9021.210%$17,850.10$431,752.10 11/01/2028$416,4061.210%$15,345.99$431,751.99 05/01/2029$418,9251.210%$12,826.74$431,751.74 11/01/2029$421,4591.210%$10,292.24$431,751.24 05/01/2030$424,0091.210%$7,742.41$431,751.41 11/01/2030$426,5741.210%$5,177.16$431,751.16 05/01/2031$429,1551.210%$2,596.39$431,751.39 TOTAL$8,888,384-$610,151.57$9,498,535.57 Ammon City Council 06/30/2020Page 24 of 48 Both principal of and interest on this Bond are payable in lawful money of the United States of America to the registered owner hereof whose name and address shall appear on the registration books of the City maintained by the City Treasurer(the Bond Registrar). This Bond is not subject to redemption prior to maturity. This Bond is issued for the purpose ofpaying the costs of currentlyrefunding the Citys outstanding Refunded Bond, pursuant to Idaho Code, Title 50, Chapter 10 and Title57, Chapters 2, 5,and 9, and also pursuant toOrdinance 641of the City,adopted on July 2,2020(the Bond Ordinance). This Bond further evidences the Citys payment obligations under the Bond PurchaseAgreement, dated July 3, initially capitalized terms used, but not otherwise defined herein, shall have the meanings assigned such terms in the Bond Ordinance or the Agreement, as applicable. This Bond is issued pursuant to and in full compliance with the Constitution and statutes of the State of Idaho, particularly Chapter 10 of Title 50, and Chapters 2, 5, and 9 of Title 57, Idaho Code, and proceedings duly adopted and authorized by the Mayor and Council of the City acting for and on behalf of the City, more particularly the Bond Ordinance, for the purpose of providing funds to refund and redeem certain outstanding obligationsof the City. This Bond creates a first lien and charge upon the Net Revenues of the System on parity of lien withany Additional Bonds which may hereafter be issued on a parity with the Bond in accordance with the provisions of the Bond Ordinanceand the Agreement, and superior to all other charges of any kind or nature. This Bond is a limited obligation of the City and is payable as to principal and interest solely from a special fund created by the Bond Ordinance and designated City of AmmonWaterRevenue Bond Fund(the Bond Fund). For a more particular description of said Bond Fund, the revenues to be deposited therein, and the nature and extent of the security afforded thereby, reference is made to the provisions of the Bond Ordinance pursuant to which this Bond is issued, and such Bond Fund will be maintained. This Bond is transferable by the registered owner hereof in person, or by his attorney duly authorized in writing, upon presentation and surrender of this Bond at the office of the Bond Registrar.Upon such transfer, a new Bond, of the same denomination, maturity, and interest rate, will be issued to the transferee, in exchange therefor. Reference is hereby made to the Bond Ordinanceand the Agreementfor the covenants and declarations of the City and other terms and conditions under which this Bond has been issued.The covenants contained herein and in the Bond Ordinance may be discharged by making provision, at any time, for the payment of the principal of and interest on this Bond in the manner provided in the Bond Ordinance. The City and the Bond Registrar may deem andtreat the registered owner hereof as the absolute owner hereof for the purpose of receiving payments of principal hereof and interest due hereon and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to thecontrary. Ammon City Council 06/30/2020Page 25 of 48 IT IS HEREBY CERTIFIED AND DECLARED that all acts, conditions, and things required by the Constitution and statutes of the State of Idaho to exist, to have happened, been done, and performed precedent to and in the issuance of this Bond have happened, been done, and performed, and that the issuance of this Bond do not violate any Constitutional, statutory, or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City ofAmmon,BonnevilleCounty, Idaho, has caused this Bond to be executed by the manual signature of the Mayor, countersigned by the manual signature of its Treasurer, and attested by the manual signature of its Clerk, and the seal of the City to be th impressed hereon, as of this8day ofJuly,2020. CITYOFAMMON BonnevilleCounty, Idaho ___________________________________ Mayor ___________________________________ City Treasurer ATTEST: ______________________________ City Clerk ( S E A L ) Ammon City Council 06/30/2020Page 26 of 48 BOND PURCHASE AGREEMENT BETWEEN CITY OF AMMON, BONNEVILLECOUNTY, IDAHO AND JPMORGAN CHASE BANK, NA $8,888,384PAR AMOUNT CITY OF AMMON BONNEVILLECOUNTY,STATE OF IDAHO WATERREVENUEREFUNDING BOND SERIES 2020 DATED JULY 3,2020 Ammon City Council 06/30/2020Page 27 of 48 BOND PURCHASE AGREEMENT July 3,2020 City of Ammon Mayor and City Council 2135 South Ammon Road Ammon, ID 83401 Dear Mayor and City Council: The undersigned, JPMorgan Chase Bank, NA the City of Ammon,BonnevilleCounty, Idaho, an Idaho municipal corporation This Agreement authorizes the purchase by the Purchaser of your Bonddescribed below. This Agreement is made subject to acceptance by the Issuer. Upon such acceptance,this Agreement shall be in full force and effect according to its terms and shall bind the Issuer and the Purchaser. If not so accepted, this Agreement will be subject to withdrawal by the Purchaser upon notice delivered by the Purchaser to the Issuer any time before the acceptance hereof by the Issuer. 1.Purchase and Sale.Subject to (i) the satisfaction by the Issuer of the terms and conditions set forth herein, (ii) the conditions precedent set forth herein and in reliance upon the representations herein set forth or incorporated herein, the Purchaser hereby agrees to purchase, upon the terms and conditions set forth herein, in Exhibit Aattached hereto,and in the Addendum to Request for Proposal and Bid Form, a copy of which is attached hereto as Exhibit B, the City of AmmonWaterRevenueRefunding Bond, Series 2020in the aggregate original principal sum of $8,888,384shall be as described in Exhibit A attached hereto, and shall be issued and secured pursuant to Ordinance641of the Issuer adopted on July 2,2020Ordinancee issuance of such Bond. This Agreement shall constitute the Loan Agreementauthorized by, and as defined in, the Ordinance. 2. Representations. A.The Issuer represents to and agrees with the Purchaser as follows, provided, however, that the representations contained in the subparagraphs (3) and (4) below are based upon the opinion of Bond Counsel rendered in accordance with Section 4.D.1. hereof: 1.The Issuer is a municipal corporation and political subdivision organized and existing under the Constitution and laws of the State of Idaho, and the Issuer has full legal right, power, and authority pursuant to the Constitution and laws of the State of Idaho, to sell and deliver its Bond for the purpose of refinancing a certain portion of its WaterRevenueBond, Series 2012Refunded Bond. Ammon City Council 06/30/2020Page 28 of 48 2.To the knowledge of the Issuer, the execution and delivery of this Agreement does not, and the execution and delivery of the Bond and the adoption of the Ordinanceand compliance with the provisions of each of them, under the circumstances contemplated hereby and thereby, will not, in any material respect, conflict with or constitute on the part of the Issuer a breach of or default under any other agreement or instrument to which the Issuer is a party or any existing law, administrative regulation, court order or consent decree to which the Issuer is subject. 3. Based upon the opinion of Bond Counsel, the Bond whenduly issued, authenticated, delivered and paid for in accordance with the Ordinanceand purchased by the Purchaser as provided herein, will be the validly issued and outstanding water revenue bondof the Issuer. 4.Based upon the opinion of Bond Counsel, the Ordinance, and this Agreement, when each of them has been adopted, executed and delivered by the Issuer, will, assuming due authorization, execution and delivery by all other parties thereto, each constitute a valid and binding obligation of the Issuer, provided, however, that the enforceability of such obligations may be subject to bankruptcy, insolvency, reorganization, moratorium or other extent constitutionally applicable, and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases and to general principles of equity. 5.To the knowledge of the Issuer no litigation is pending or, threatened against or affecting the Issuer and to which the Issuer is a party (i) seeking to restrain or enjoin the issuance or delivery of any of the Bond or the application of proceeds of the Bond as provided in the Ordinanceor the collection of Revenues (as defined in the Ordinance)of the Issuer pledged under the Ordinance, (ii) in any way contesting or affecting any authority for the issuance of the Bond, the refunding of the Refunded Bond,or the validity of the Bond,the Ordinanceor this Agreement, or (iii) in any way contesting the existence or powers ofthe Issuer. 3.Closing.On July 8,2020, or such later date as we mutually agree upon (the be delivered, at the offices of the Purchaser or other such place as may be mutually agreed upon, the Bond, duly executed and authenticated. In addition, the other documents hereinafter mentioned will be delivered at the offices of Bond Counsel and the Purchaser will accept such delivery and pay the purchase price thereof in federal funds to the account of the Issuer. 4.Conditions Precedent.The Purchaser has entered into this Agreement in reliance upon (i) the representations, warranties and agreements of the Issuer contained herein and in the Ordinanceand (ii) the performance by the Issuer of their obligations Ammon City Council 06/30/2020Page 29 of 48 hereunder, if any, and under the above mentioned documents, both as of the date hereof shall be subject to the followingfurther conditions: A.The representations and warranties of the Issuer contained herein shall be true, complete and correct on the date of acceptance hereof and as of the date of Closing with the same effect as if made on the date of Closing. B.At the time of the Closing, the Ordinanceshall be in full force and effect, shall be in form and substance acceptable to the Purchaser in all respects, and shall not have been amended, modified or supplemented except as may have been agreed to in writing; and shall have duly adopted and there shall be in full force and effect, such ordinances and agreements, as, in the opinion of Bond Counsel shall be necessary in connection with the transactions contemplated hereby or the documentation of security for the Bond. C.The Purchaser may terminate this Agreement by notification in writing to the Issuer if at any time subsequent to the date hereof and at or prior to the Closing: (i) legislation shall be enacted by, or favorably reported out of committee to, either Houseof the Congress of the United States, or a decision by a court of the United States shall be entered or a regulation or ruling shall be issued or proposed by or on behalf of the Treasury Department, the Internal Revenue Service of the United States, or any other agency of the federal government having jurisdiction, with respect to federal taxation upon interest received on obligations of the character of the Bond or the sale, at the contemplated offering prices, by the Purchaser of the Bond; or (ii) a stoporder, ruling, regulation, proposed regulation or statement by or on behalf of the Securities and Exchange Commission shall be issued or made to the effect that the issuance, offering, sale or distribution of obligations of the character of the Bondsis in violation or any provision of the Securities Act or the Trust Act of 1939; or (iii) the Congress of the United States shall enact a law, or a bill shall be favorably reported out of committee of either House of the Congress of the United States, or a decision by a court of the United States shall be rendered, or a ruling, regulation, proposed regulation or statement by or on behalf of the Securities and Exchange Commission or any other agency of the Federal government having jurisdiction of the subject matter shall be made, to the effect that securities of the Issuer or of any similar public body are not exempt from the registration, qualification or other requirements of the Securities Act or the Trust Act of 1939; or (iv) the United States shall have become engaged in hostilities which have resulted in a declaration of war or a national emergency; or (v) there shall have occurred a general suspension of trading on the New York Stock Exchange; or (vi) a general banking moratorium shall have been declaredby the United States, State of New York or State of Idaho authorities; or (vii) an event shall occur which in the reasonable judgment of the Purchaser materially adversely affects the market for the Bond,or the sale, at the contemplated offering prices, by the Purchaser of the Bond; or (viii) any documentation in connection with the issuance of the Bondshall not be satisfactory in form and substance to the Purchaser Ammon City Council 06/30/2020Page 30 of 48 or its counsel; or (ix) economic, market or other conditions shall occur or exist which, in the judgment of the Purchaser, render, the Bondincapable of being sold on terms acceptable to the Purchaser; or (x) the results of any due diligence efforts by the Purchaser with respect to the proposed issuance of the Bond shall not, in the sole discretion of the Purchaser, be satisfactory to the Purchaser; or (xi) any suit, proceeding, litigation or other action shall be commenced, or, if commenced prior to the date hereof, shall be continuing or have been adjudicated, which, in any event, in the reasonable judgment of the Purchaser, may affect the marketing, sale or delivery of the Bond; or (xii) the Purchaser and the Issuer shall not have reached agreement as to the terms of any of the agreements referred to in this Agreement. D.At or prior to the Closing, the Purchaser shall have received the following documents (in each case with such changes as the Purchaser shall approve): 1.The unqualified approving opinion of MSBT Law, Chartered, Bond Counsel, dated the date of the Closing, in form acceptable in all respects to the Purchaser. All fees of the Bond Counsel shall be the responsibility of the Issuer upon Closing. 2.A certificate of the Issuer, signed by the Mayor, Treasurer,and City Clerkof the Issuer, dated the date of the Closing, to the effect that (a) the representations, warranties and agreements of the Issuer contained herein and in the Ordinanceare true and correct in all material respects as of the date of the Closing; (b) to the knowledge of the Issuer without independent investigation, no litigation is pending or threatened (1) seeking to restrain or enjoin the issuance or delivery of any of the Bond,the refunding of the Refunded Bondor the collection of Revenues or other security pledged under the Ordinance, or (2) in any way contesting or affecting any authority for the issuance of the Bond or the validity of the Bond, the Ordinanceor this Agreement, or (3) in any way contesting the existence or powers of the Issuer; and with respect to the Bond,the Ordinanceor this Agreement. If the Issuer shall be unable for any reason to satisfy the conditions of the be terminated for any reason permitted by this Agreement, this Agreement shall terminate and neither the Purchaser nor the Issuer shall have any further obligations or liability hereunder, except that any respective obligations of the Purchaser or the Issuer for payment of Bond Counsel costs and expenses incurred prior to termination of the Agreement, shall continue in full force and effect. 5.Reporting Requirements.The Issuer will be required to provide the Purchaser audited annual financial statements, free of significant deficiencies or material weakness, and prepared by an independent Certified Public Accountant, within 270 days of the close of its fiscal year. Additionally, with the audited annual financial statement, the Issuerwill provide the Purchaser with a coverage.The Issuer will also provide other financial information as reasonably requested Ammon City Council 06/30/2020Page 31 of 48 by the Purchaser. 6.WaterRate Covenant.The Issuershall establish, revise, maintain, and collect charges sufficient, with other revenues received, after taking into consideration anticipated delinquencies, to provide Net Revenues(as defined in the Ordinance)equal to not less than 1.25times the average annual debt service on the Bondand all parity debt.If Issuershall fail to comply and is unable to bring itself into compliance within 60 days thereafter, it shall immediately notify the Purchaser. 7.Additional Bonds Test.Additional bonds or other additional obligations payable from the Net Revenues on a parity with, but neither prior nor superior to, the lien of the Bond may be issuedin accordance with Section IX of the Ordinance. 8.Legal Existence.The Issuerwill use all means legally available to maintain its existence. 9.Revenue Pledge.The Net Revenuesare pledged for the payment of the Bond and shall be used and applied in the order of priority provided in Section 8(D) of theOrdinance. 10.Payment of Taxes and Other Charges and Compliance with Governmental Regulations.The Issuerwill pay and discharge all taxes, service charges, assessments and other governmental charges which may hereafter be lawfully imposed upon the System or any properties owned by the Issuer, or upon the Revenues, when the same shall become due; provided,that nothing herein contained shall require the Issuerto make any such payments so long as the Issuerin good faith shall contest the validity of any such taxes, service charges, assessments or other governmental charges and such nonpayment will not materially adversely affect the Issuerits obligations hereunder. The Issuerwill duly comply with all applicable State, federal and local statutes and all valid regulations and requirements of any governmental authority relative to the operation of the System or any part thereof, but the Issuershall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith and such noncompliance will not materially adversely affect the Issuer ability to perform its obligations hereunder. 11.Events of Default.Any one of the following which occurs and continues shall constitute an event of default pursuant to this Agreement: (a)failure by the Issuerto pay any principal or interest payment on its respective due date; or (b)failure of the Issuerto observe and perform any covenant, condition or agreement on its part required to be observed or performed by this Agreement, other than making the payments referred to in (a) above, which continues for a period of 60 days after written notice, which notice shall specify such failure and request that it be remedied, given to the Issuerby the Purchaser, unless the Purchasershall agree in writing to an extension of such time; provided, however, that if the failure stated in the notice cannot be corrected Ammon City Council 06/30/2020Page 32 of 48 within such period, the Purchaserwill not unreasonably withhold their consent to an extension of such time if corrective action is instituted within such period and diligently pursued until the default is corrected. The provisions of subsection(b) of this Section are subject to the limitation that the Issuer shall not be deemed in default if and so long as the Issueris unable to carry out its agreements hereunder by reason of strikes, lockouts or other industrial disturbances; acts of public enemies; orders of any kind of the government of the United States or of the State of Idaho or any of their departments, agencies, or officials, or any civil or military authority; insurrections, riots, epidemics, landslides; lightning; earthquake; fire; hurricanes; storms; floods; washouts; droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage or accident to machinery, transmission pipes or canals; partial or entire failure of utilities; or any other cause or event not reasonably within the control of the Issuer; it being agreed that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the Issuer, and the Issuershall not be required to make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands of the opposing party or parties when such course is, in the judgment of the Issuer, unfavorable to the Issuer. This limitation shall not apply to any default under subsection (a) of this Section. 12.Remedies on Default.Whenever any Event of Default shall have occurred and shall continue, the following remedies may be pursued: (a)The Purchasershall have access to and the right to inspect, examine and make copies of the books and records and any and all accounts and data of the Issuer. (b)The Purchasermay take whatever action at law or in equity as may be necessary or desirable to collect the payments and other amounts then due and thereafter to become due or to enforce performance and observance of any obligation, agreement or covenant of the Issuerunder this Agreement. In case the Purchasershall have proceeded to enforce its rights under this Agreementand such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Purchaser, then, and in every such case, the Issuerand the Purchasershall be restored respectively to their positions and rights hereunder, and all rights, remedies and powers of the Issuerandthe Purchasershall continue as though no such action had been taken (provided, however, that any settlement of such proceedings duly entered into by the Purchaseror the Issuershall not be disturbed by reason of this provision). In case the Issuershall fail forthwith to pay amounts due by reason of this Sectionupon demand of the Purchaser, the Purchasershall be entitled andempowered to institute any action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against theIssuerand collect in the manner provided by law the moneys adjudged or decreed to be payable. Ammon City Council 06/30/2020Page 33 of 48 In case proceedings shall be pending for the bankruptcy or for the reorganization of the Issuerunder the federal bankruptcy laws or any other applicable law, or in case a receiver or trusteeshall have been appointed for the property of the Issueror in the case of any other similar judicial proceedings relative to the Issuer, or the creditors or property of the Issuer, then the Purchasershall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount owing and unpaid pursuant to this Agreementand, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Purchaserallowed in such judicial proceedings relative to the Issuer, its creditors or its property, and to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute such amounts after the deduction of its charges and expenses. Any receiver, assignee or trusteein bankruptcy or reorganization is hereby authorized to make such payments to the Purchaser, and to pay to the Purchaserany amount due it for compensation and expenses, including expenses and fees of counsel incurred by it up to the date of such distribution. 13..In the event the Issuershould default under any of the provisions of this Agreementand the Purchasershould employ attorneys or incur other expenses for the collection of the payments due under this Agreementor the enforcement of performance or observance of any obligation or agreement on the part of the Issuerherein contained, the Issueragrees to pay to the Purchaserthe reasonable fees of such attorneys and such other expenses so incurred by the Purchaser. 14.No Remedy Exclusive.No remedy herein conferred upon or reserved to the Purchaseris intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreementor now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Purchaserto exercise any remedy reserved to it in this Agreement, it shall not be necessary to give any notice, other than such notice as may be herein expressly required. 15.No Additional Waiver Implied by One Waiver.In the event any agreement or covenant contained in this Agreementshould be breached by the Issuerand thereafter waived by the Purchaser, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. 16.Notices.Any notice or other communication to be given to the Issuer under this Agreement may be given by delivering the same in writing to the addresses set forth above and any such notice or other communication to be given to the Purchaser may be given by delivering the same in writing to the Purchaser c/o Steven L. Gleason, Vice- President, JPMorgan Chase Bank, NA, 2910 Washington Blvd., Ogden, UT 84401-3751. Ammon City Council 06/30/2020Page 34 of 48 17.Benefit.This Agreement is made solely for the benefit of the Issuer and the Purchaser (including their successors or assigns), and no other person, partnership, association or corporation shall acquire or have any right hereunder or by virtue hereof. 18.Approval.The approval of the Purchaser when required hereunder or the determination of its satisfaction as to any document referred to herein shall be in writing signed by the undersigned and delivered to the Issuer. 19.Governing Law; Counterpart.This Agreement shall be governed by the laws of the State of Idaho applicable to agreements made and to be performed in the State of Idaho; without regard or effect given to conflict of law rules which would require the application of laws of any other jurisdiction. This Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the samedocument. 20.Survival.All agreements, covenants and representations and all other statements of the Issuer and the Purchaser and their respective officers set forth in or made pursuant to this Agreement will survive the Closing and the delivery of and payment for the Bond. 21.Severability.If any section, paragraph, clause or provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Agreement. 22.Bank Exemption.The Issuer acknowledges and agrees that (i) the transaction Purchaser and its affiliates, (ii) in connection with such transaction, the Purchaser and its affiliates are acting solely as a principal and not as an advisor including, without limitation, Exchan on the bank exemption in the Municipal Advisor Rules, (iv) the Purchaser and itsaffiliates have not provided any advice or assumed any advisory or fiduciary responsibility in favor of the Issuer with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (whether or not the Purchaser, or any affiliate of the Purchaser, has provided other services or advised, or is currently providing other services or advising the Issuer on other matters), (v) the Purchaser and its affiliates have financial and other interests that differ from those of the Issuer, and (vi) the Issuer has consulted with its own financial, legal, accounting, tax and other advisors, as applicable, to the extent it deemed appropriate. 23.Non-Merger.The provisions of this Agreement shall survive all other performances hereunder, and shall not be deemed merged in any deed or other instrument or document delivered hereunder. Ammon City Council 06/30/2020Page 35 of 48 24.Obligations of Issuer Not Obligations of Officials Individually.All obligations of the Issuer under the Bond Documents, the Bonds will be deemed to be obligations of the Issuer to the full extent permitted by the Constitution and laws of the State. No obligation under any of the Bond Documents will be deemed to be an obligation of any present or future officer or employee of the Issuer in his or her individual capacity, and no officer of the Issuer who executes the Bonds will be personally liable on the Bonds or be subject to any personal liability or accountability by reason of the issuance of the Bonds. JPMORGANCHASEBANK,NA as Purchaser herein specified B Y: Its: ___________________________ Ammon City Council 06/30/2020Page 36 of 48 Approved and Agreed to: CITYOFAMMON B Y: Mayor Attest: ______________________________ City Clerk Ammon City Council 06/30/2020Page 37 of 48 EXHIBIT A TO THE BOND PURCHASE AGREEMENT $8,888,384PAR AMOUNT WATERREVENUEREFUNDING BOND A. Payment:$8,888,384 B.Dated Date:Dated the Closing Date C.Maturity Date: Final maturity is May 1, 2031. D.Reserve Requirement:None. E. Redemption:Nooptional redemption, but subject to mandatory sinking fund redemption pursuant to the amortization scheduleset forth in the Bond.Payment of principal due to a sinking fund installment shall not require presentation of the Bond. F.Covenants and As set forth in the Ordinanceandthis Agreement. Conditions: G.Estimated Closing Date:July 8,2020, or such other date mutually agreed to by the parties to this Agreement. H.Bond Counsel:MSBT Law, Chartered, Boise, Idaho. I. Method of Payment:Federal Funds draft or wire. J.8038:Issuer shall make all necessary filings. K.Tax Exemption:An opinion from Bond Counsel that interest on the Bonds is excluded from gross income for federal tax purposes and the Issuer has designated the Bonds as - pursuant to the small issuer exception provided by Section 265(b)(3) of the Internal Revenue Code of 1986. L.Interest Payment:Interest on the Bonds is payable at the rate of 1.21%with semi- annual payments of principal and interest due each May 1and November1, beginning November 1, 2020,until maturityon May 1, 2031.Calculated on the basis of a year of 360 days consisting of twelve 30-day months. M.Closing Costs:The Issuer is responsible for paying the costsof its Bond Counsel, Placement Agent,and Financial Advisor. In addition, the Issuer will pay for the fees of the BankCounsel, in an amount not to exceed $7,500.00. Ammon City Council 06/30/2020Page 38 of 48 Exhibit B Executed Addendum Ammon City Council 06/30/2020Page 39 of 48 Ammon City Council 06/30/2020Page 40 of 48 IDAHO DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF ) Eastern Idaho Regional Wastewater Authority) COMPLIANCE 618 East 1250 North ) AGREEMENT SCHEDULE Shelley, Idaho 83274 ) Idaho Code § 39-116A ) FINDINGS AND CONCLUSIONS 1.Pursuant to the Idaho Environmental Protection and Health Act (EPHA), Idaho Code § 39-116A, the Department of Environmental Quality (Department) enters into this Compliance Agreement Schedule (CAS)with Eastern Idaho Regional Wastewater Authority (Respondent) located in Shelley, BinghamCounty, Idaho. 2.The Respondent owns and operates a wastewater treatment plant in Shelley, Idaho, under Idaho Pollutant Discharge Elimination System (IPDES) Permit ID0020133 (Permit). The Respondent is governed under IDAPA 58.01.25, “Rules Regulating the Idaho Pollutant Discharge Elimination System Program.” 3.In May of 2019, the Respondent informed the Department that their membrane filters had experienced advanced deterioration due to poor screening during the plant start-up, debris accumulation in the basins, and age. While the Respondent is maintaining adequate performance now, flows are continuing to increase, which is increasing the demand on the remaining membrane filtersand is expected to impact current permit requirements in the near future. Recognizing the importance of a membrane system operating properly andefficiently, the Respondent has cited a need to focus on replacing the membrane system this year. However, due to the high costs associated with replacing the membrane system, the Respondent will not have the necessary funds required to complete Tasks 8- 11 outlined in Compliance Schedule Option 1 (Table 3) discussed inPart I.C.3.b of the Permit. Without the necessary funds, the Respondent will not be ableto complete Tasks 8, 9 and 10. This will result in the Respondent being out of compliance with Part I.C.2 of the Permit. Given the financial burden with replacing the membrane system and the anticipated noncompliance with Part I.C.2 of the Permit, the Respondent has requested to enter into this CAS with the Department. 4.The Department has evaluated the factors in Idaho Code § 39-116A(4) and finds that a CASis an appropriate mechanism to assist the Respondent in achieving compliance with the final total phosphorus effluent limits. Granting a 1 year extension for Tasks 8-11 in Table 3 of the Permit (Paragraphs 7, 9, 11, and 12 of this CAS), will ensure the Respondent isable to complete these tasks,achieve compliance with Part I.C.2 of the Permit, and will be protective of human health and the environment. 5.In order to resolve this matter, the Respondent agrees to the provisions of this CAS and the following terms and actions outlined in Paragraphs 6-32 below. Ammon City Council 06/30/2020Page 41 of 48 AGREEMENT SCHEDULE 6.Membrane Filters.Submit awritten notice within 240calendar days of the effective date of this Agreement, to the Department through the IPDES E-Permitting system, documenting evidence that the new membrane filters are online. 7.Bidding Process Completion. Submit a written notice by February 1, 2021, to the Department through the IPDES E-Permitting system, documenting that bidding for the treatment process for total phosphorus is complete and an awardee has been identified. 8.Strategic Improvement Plan. Submit an updated Strategic Improvement Plan by May 1, 2021, to the Department through the IPDES E-Permitting system. The Plan must include: a.An updated user impact study. b.A schedule for dissolution of the joint powers agreement and formation of a sewer district, or a functional equivalent either as a public or private entity. c.A section outlining how future potential funding issues will be addressed and mitigated. 9.Construction Progress Report. Submit a progress report by October 1, 2021, to the Department through the IPDES E-Permitting system, on construction efforts, including percent of construction completed, remaining days left on the construction contract, and any change orders associated with the construction of the treatment process for total phosphorus. 10.Strategic Improvement Plan Progress Report.Submit a progress report by May 1, 2022, and annually thereafter, to the Department through the IPDES E-Permitting system, documenting status of the items addressed in Paragraph 8 and, if changes are necessary to the Plan, submit a revision and/or update following the provisions of Paragraph 16 of this CAS. 11.Construction Completion Notice. Submit written notice by September 1, 2022, to the Department through the IPDES E-Permitting system, documenting that construction of the treatment process for total phosphorus is completeto achieve compliance with Part I.C.2 of the Permit. 12.Final Compliance with Effluent Limits.The Respondent must achieve compliance with the final total phosphorus effluent limitationsof Part I.B.1 of the Permit by September 1, 2023. 13.All terms and conditions set forth in this Compliance Agreement Schedule must be completed no later than September 1, 2023 (Table 1). Ammon City Council 06/30/2020Page 42 of 48 Table 1.Compliance Agreement Schedule requirements and deadlines. RequirementParagraphDeadline Membrane Filters6240calendar days after the effective date of this Agreement Bidding Process Completion7February 1, 2021 Strategic Improvement Plan8May 1, 2021 Construction Progress Report9October 1, 2021 May 1, 2022, and Strategic Improvement Plan Progress Report10 annually thereafter Construction Completion Notice11September 1, 2022 Final Compliance with Effluent Limits12September 1, 2023 INSPECTION 14.Pursuant to Idaho Code § 39-108 and this CAS,the Department may conduct inspections or site visits that the Department determines necessary to verify compliance with all applicable Sections and requirements appearing in this CAS. CORRESPONDENCE 15.All correspondence sent by the Respondent to the Department regarding this CASwill be addressed to: Water QualityManager Idaho Department of Environmental Quality Pocatello Regional Office 444 Hospital Way #300 Pocatello, ID 83201 16.All correspondence sent by the Department tothe Respondent regarding this CAS should be addressed to: Eastern Idaho Regional Wastewater Authority 618 East 1250 North Shelley, Idaho 83274 Attn: Commissioner Roger Christensen and Scott Barry rchristensen@co.bonneville.id.us scottb@eirwwa.org Ammon City Council 06/30/2020Page 43 of 48 17.Unless specifically cited herein or in rule or statute,the Respondent must follow the document submittal and review process (Submittal Review Process) required of this CAS. The Respondent must follow this process until the Departmentapproves the document or the document review time frame expires, whichever comes first. In no instance does this Submittal Review Process change the deadlines in Paragraphs 6-12 above. A.Afterreceipt of a submittal from the Respondent, the Department willwithin 45 calendar days: 1) notify the Respondent in writing that the document is approved; or 2) notify the Respondent in writing of any deficiencies in the document. DEQ’s failure to provide written notice in the time described here does not waive or in any way alter the enforceability of the provision violated or any other provision of this CAS.If the Department notifies the Respondent of deficiencies in the document, the Respondent must submit a revised document to resolve those deficiencies within 30calendar days of receipt of the Department’s notice. B.The Submittal Review Process maybe repeated until the Department notifiesthe Respondent the document is approved. However, the submittal must receive the Department’s approval within 180 calendar days from the due date for the first submittal of the document, unless the Department provides the Respondent with a written extension of the 180 calendar day time frame. The failure ofthe Respondent to obtain the Department approval of a submittal within such time frames willconstitutea violation of this CAS. C.If the date on which a submittal or other communication is due falls on a Saturday, Sunday, or federal holiday, the deadline for such submission willbe the next business day. D.Each document approved by the Departmentunder the Submittal Review Process is incorporated into and enforceable as a part of this CAS. E.All submittals required of the Respondent pursuant to this CASwill be submitted to the Department in electronic format via the E-Permitting System. STANDARD PROVISIONS 18.This CAS does not relieve the Respondent from its obligation to comply with any of the provisions of EPHA, any provision of an IPDES permit issued by the Departmenttothe Respondent, or other applicable local, state, or federal laws and regulations. 19.This CAS binds the Respondent, its successors,and assignees until such time as the terms of the CASare met to the satisfaction and the Department terminates the CASin writing. 20.If the Respondent fails to comply with the termsof this CAS, the Department may seek and obtain, in any appropriate district court located in Bonneville or Bingham Counties, specific performance of the CAS and other relief as authorized in the EPHA. Ammon City Council 06/30/2020Page 44 of 48 21.If any event occurs that causes or may cause delay in the achievement of any requirement of this CAS,the Respondent must notify the Department in writing within 10calendar days of the date the Respondent knew, or should have known, of the delay. A.Any notice under this paragraph will describe in detail the cause of the delay, the anticipated length of the delay, all anticipated consequences of the delay, the start date of the event or the date of discovery, measures taken by the Respondent to prevent or minimize the delay, and a timetable by which those measures will be implemented. B.The Respondent must utilize all reasonable measures to avoid or minimize any such delay. If the Department determines that the delay or anticipated delay in achieving any requirements of this CAShas been or will be caused by circumstances beyond the reasonable control of the Respondent, the Department may grant an extension for a period equal to the length of the delay. C.The burden of proving that any delay is caused by circumstances beyond the reasonable control of the Respondentrests wholly with the Respondent. 22.If the Respondent wishes to seek an extension of any deadline contained in this CAS, it must make a written request to the Department.The written extension request must explain the reasoning for the request and state the length of extension requested. Any extension provided by the Department must be in writing, in response to the request. 23.In the event the Respondent violates the terms of this CAS,the Department will provide written notice to the Respondent describing the violation within 30 days. DEQ’s failure to provide written notice of a violation in the time described here does not waive or in any way alter the enforceability of the provision violated or any other provision of this CAS. No later than 10 calendar days after receiving the notification, the Respondent must reply to the Department in writing to explain the violation and provide a date on which the violation will be cured to the Department’s satisfaction. 24.A waiver or decision not to enforce by the Department of any provision, term, condition, or requirement of this CAS does not constitute a waiver of any other provision, term, condition, or requirement. 25.The Department and the Respondentrepresent and warrant that each has the authority to enter into this CAS and to take all actions or authorize all actions provided for herein. 26.In case any provision or authority of this CAS or the application of this CASto any party or circumstances is held by any judicial or administrative authority to be invalid, the application of such provisions to other parties or circumstances and the remainder of the CASwill remain in force. 27.If the Respondent sells or offers the Site Property (or any portion thereof) for sale prior to completion of the requirements of this CAS and termination thereof, the Respondent must notify any prospective purchaser of the terms and conditions of this CAS and the current status of completion of the requirements of this CAS. The Respondent must also provide notice to the Department of the offer for sale and the identity of the purchaser at Ammon City Council 06/30/2020Page 45 of 48 least 10 calendar days prior to closing of any sale of the Site property or any portion thereof. 28.Sale or transfer of the Site Property or any portion thereof by the Respondent does not relieve the Respondent of its obligation to complete the terms and conditions of this CAS unless appropriate arrangements are made with the purchaser or receiver of the Site Property for assignment of the obligations of this CAS and the Department consents in writing to the assignment of the obligations of this CAS to the new purchaser. 29.This CASsets forth the entire agreement of the parties related to the subject matter of this CAS and may not be modified without written consent of both parties. 30.If this Compliance Agreement Schedule is signed and agreed to with an electronic signature by either party, the electronic signature will have the same legal and evidentiary effect as a handwritten signature. EFFECTIVE DATE AND TERMINATION 31.The effective date of this CASis the date of the signature by the Department Director. 32.Upon request by the Respondent, this CASmay be terminated if the Department determines that all CASrequirements arecomplete. DATED THIS day of , 2020 ROGER CHRISTENSEN Commissioner, Authorized Representative of Eastern Idaho Regional Wastewater Authority DATED THIS day of , 2020 JOHN H. TIPPETS Director, Idaho Department of Environmental Quality Ammon City Council 06/30/2020Page 46 of 48 Ammon City Council 06/30/2020Page 47 of 48 Ammon City Council 06/30/2020Page 48 of 48