Loading...
HomeMy Public PortalAbout2023-01-17 packet NOTICE OF MEETING AND CITY COUNCIL AGENDA i TUESDAY, JANUARY 17, 2023 – 6:00 P.M. CITY COUNCIL CHAMBERS ~ JOHN G. CHRISTY MUNICIPAL BUILDING ~ 320 E. MCCARTY STREET TO JOIN VIRTUALLY: https://jeffersoncity.webex.com/jeffersoncity/j.php?MTID=m3e975d42f162029b4154b56027f0a20b CALL-IN PARTICIPATION AVAILABLE AT: 1-404-397-1516 MEETING NUMBER: 2490 061 8370 MEETING PASSWORD: 1234 TENTATIVE AGENDA PRAYER – Councilmember Spencer PLEDGE OF ALLEGIANCE 1. CALL TO ORDER 2. ROLL CALL 3. ADOPTION OF AGENDA 4. MISCELLANEOUS AGENDA ITEMS 5. PUBLIC HEARINGS a. Amending Chapter 34, Article III, Section 34-27 of the City Code Related to Transit System Fares i. Pending Bill 2022-093 (Fitzwater) Staff: Matt Morasch 6. APPOINTMENTS BY THE MAYOR a. Recommended Appointments to the Following Boards and Commissions Board or Commission Recommended Appointment New Term Expires Term Full/Partial Police Personnel Board Pete Fleischmann Jan 2026 Full Troy Pinkerton Jan 2026 Full Stacey Backues* Jan 2026 Full Public Transit Advisory Committee Angela Hirsch Jan 2027 Full Enjoli Dixon Jan 2027 Full Joshua Hale Jan 2027 Full *Requires 2/3 Majority Vote City Council Agenda – January 17, 2023 ✓ = Request to suspend rules 2 7. PRESENTATIONS FROM STAFF, CONSULTANTS & INVITED GUESTS a. Evergreen Salary Study Presentation 8. ANNOUNCEMENTS BY MAYOR, COUNCIL, AND STAFF a. Council Committee Meetings (Check www.jeffersoncitymo.gov meeting calendar for dates, times locations, and agendas): i. Administration ii. Finance iii. Public Safety iv. Public Works & Planning 9. LINCOLN UNIVERSITY STUDENT REPRESENTATIVE UPDATE 10. PRESENTATIONS FROM THE GALLERY ON SPECIFIC BILLS OR RESOLUTIONS (All individuals will be limited to 5 minutes without exception. All presentations shall be made from the podium unless other accommodation is requested and granted.) 11. CONSENT AGENDA a. Minutes of City Council Meetings: January 3, 2022 12. BILLS INTRODUCED a. 2022-094 Amending Chapter 19 of the City Code, Schedule O (Parking Time Limit Zones) to Match Existing Conditions on E. High St. and Lafayette St. (Wiseman) Staff: Matt Morasch b. 2022-095 Amending Chapter 19 of the City Code, Schedule O (Parking Time Limit Zones) by the Modification of 600 Block of E. High St. from 2-hours to 4- hours (Wiseman) Staff: Matt Morasch c. 2022-096 Amending Chapter 19 of the City Code, Schedule O (Parking Time Limit Zones) by Deletions Next to 1001 W. McCarty St. (Wiseman) Staff: Matt Morasch d. 2022-097 Authorizing a $69,950 Contract with Automotive Technology, Inc. for the Removal of Transit’s Existing Lift, Site Preparation, and Installation of New Lift (Fitzwater) Staff: Matt Morasch e. 2022-098 Amending Chapter 17 and 18 of the City Code Related to Marijuana (Schreiber) Staff: Ryan Moehlman f. 2022-099 Approving a Plan for an Industrial Development Project for Scholastic Inc., Authorizing the Issuance of TID Revenue Bonds, Series 2023, in a Principal Amount not to Exceed $44,700,000 (Fitzwater) Staff: Ryan Moehlman 13. BILLS PENDING a. 2022-090 Amending Chapter 16, Article III, Section 16-31 of the City Code Related to the Commission on Human Relations - Structure of Commission; Quorum; Compensation (Wiseman) Staff: Gail Strope b. 2022-091 Approving a Final Subdivision Plat of Emily Lane Subdivision Section 3 (Lester) Staff: Sonny Sanders City Council Agenda – January 17, 2023 ✓ = Request to suspend rules 3 c. 2022-092 Authorizing a $190,500 Engineering Design Contract with Bartlett & West, Inc. for the High St. Viaduct (Fitzwater) Staff: Matt Morasch d. 2022-093 Taken Up Under 5(a.) 14. INFORMAL CALENDAR 15. RESOLUTIONS a. RS2022-40 Approving an Application for Transportation Alternative Program (TAP) Grant for the Greenway Trail from St. Louis Rd. to Riverside Park (Fitzwater) Staff: Matt Morasch b. RS2022-41 Approving an Application for Transportation Alternative Program (TAP) Grant for the Pedestrian Accommodations along Stadium Blvd. from JCMG to Lynnwood Dr. (Fitzwater) Staff: Matt Morasch 16. PRESENTATIONS FROM THE GALLERY ON OTHER TOPICS – (All individuals will be limited to 3 minutes without exception. All presentations shall be made from the podium unless other accommodation is requested and granted.) 17. COUNCIL AND STAFF DISCUSSION OF PRESENTATION TOPICS 18. NEW BUSINESS 19. APPROVAL OF JANUARY 3, 2023 CLOSED SESSION MINUTES 20. CLOSED SESSION a. Pursuant to Sec. 610.021 of the Revised Statutes of Missouri, the Chair will entertain a motion to go into Closed Session to discuss the following: i. Attorney Client Privilege [Sec. 610.021(1)] ii. Real Estate [Sec. 610.021(2)] iii. Sealed Proposals and Negotiated Contracts [Sec. 610.021(12)] 21. UNFINISHED BUSINESS 22. ADJOURN i Individuals should contact the ADA Coordinator at (573) 634-6570 to request accommodations or alternative formats as required under the Americans with Disabilities Act. Please allow three business days to process the request. NOTICE OF MEETING AND CITY COUNCIL AGENDAi CITY COUNCIL WORK SESSION City of Jefferson, Missouri 320 E. McCarty St. City Council Chambers TUESDAY, JANUARY 17, 2023 5:45 P.M. AGENDA 1. Discussion of January 17, 2023 City Council Meeting Agenda Items 2. Adjournment i Individuals should contact the ADA Coordinator at (573) 634-6570 to request accommodations or alternative formats as required under the Americans with Disabilities Act. Please allow three business days to process the request. PUBLIC HEARING/BILL SUMMARY BILL NO: 2022-093 SPONSOR: Councilmember Fitzwater SUBJECT: Amends Chapter 34, Article Ill, Section 34-27-Transit System Fares DATE INTRODUCED: January 3, 2023 ~ ·~ DEPARTMENT DIRECTOR: ~- CITY ADMINISTRATOR: h "'"""' !;%....~ Staff Recommendation: Approve. Summary: An ordinance increasing JEFFTRAN fares . Origin of Request: Public Works/Transit Division Department Responsible: Department of Public Works PERSON RESPONSIBLE: MATT MORASCH/Gerry Stegeman Background Information: The Public Transit Advisory Committee and the Public Works & Planning Committee have recommended the City Council consider the transit fare increases outlined below. Fare Type Current Fare Proposed Fare Increase Regular Fare (1 ride) $1 .00 $1.50 Regular Fare Adult Pass (20 rides) $20.00 $30.00 Reduced Fare (1 ride) $0.50 $0.75 Reduced Fare pass (20 rides) $10 .00 $15.00 Student Pass (20 rides) $18.00 $27.00 Handi-Wheels Fare (1 ride) $2.00 $3.00 Handi-Wheels Pass (1 0 rides) $20 .00 $30.00 The Public Transit Advisory Committee recommendation was specifically contingent on t he implementation of a means of accepting fares electronically. A staff memo regarding t he recommendation from the Public Transit Advisory Committee meeting on August 30 , 2022 is provided in Attachment A. The Public Works and Planning Committee discussed the subject at their September 8,2022 meeting and approved referring the fare increase to City Council w ith a recommendation for approval. The minutes of the September 8 ,2022 Public Works and Planning meeting are provided in Attachment B. Two public meetings were held on November 9th and 17th, 2022. A public survey was also utilized to gather comment from current and prospective riders. 106 survey responses were received between October 28, 2022 and December 21, 2022. In general, public response was not favorable towards increasing fares. The survey responses are provided as Attachment C. A final public hearing, scheduled for January 16th, is required to be held prior to final consideration by the City Council. Fiscal Information: The fare increase is estimated to generate approximately $60,000 annually, and would be used to fund JEFFTRAN operations. Editor’s note: Added language shown thus. Deleted language shown thus. BILL NO. 2022-093 SPONSORED BY Councilmember Fitzwater ORDINANCE NO. _________________________ AN ORDINANCE AMENDING THE CODE OF THE CITY OF JEFFERSON, MISSOURI, PERTAINING TO TRANSIT SYSTEM FARES. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Section 34-27 of the Code of the City of Jefferson, Missouri, is hereby amended to read as follows: Sec. 34-27. - Transit system fares. The following shall be the fares to be charged passengers for riding the City buses: A. The general fare to be charged all passengers, except those riding under other provisions of this section, shall be $1.00 $1.50. B. Children under the age of six years accompanied by a paying passenger shall ride free of charge. C. Any student enrolled in any elementary, junior high, senior high school, or college in the City shall be eligible to purchase a special student discount pass entitling the student to 20 rides for a cost of $18.00 $27.00. Student passes shall be honored only on school days between the hours of 6:45 a.m. and 6:45 p.m. Student I.D. card may be required as proof of eligibility. D. Half fare program for fixed routes. The fare on fixed routes shall be one -half the general fare charged in subsection 34-27.A. above for persons age 60 years and over, persons with disabilities and Medicare cardholders. To access the half fare program: 1. Passengers shall show photo identification and proof of eligibility at the time fares are paid or upon boarding transit vehicles. Proof of eligibility is either a Medicare card or a half fare identification card issued by the City Finance Department. 2. Passengers may obtain a half fare identification card from the City Finance Department by providing photo-identification, proof of eligibility and completion of the "JeffTran Application for Half Fare Identification Card." Proof of eligibility for the half-fare identification card shall be: (a) Medicare card; or (b) Proof of age, if age 60 or older, such as driver's license or identification card issued by a State agency; or (c) Proof of disability, such as ADA eligibility card, Veterans Administration disability card, or physician statement. E. Transfers on the transit system are free subject to the rules established by the Director of Public Works. F. The fare for the demand-response bus for the handicapped will be $2.00 $3.00 per trip. Persons requesting this service mu st meet e lig ibili ty criteria as estab li shed by the Director of Publi c Work s in comp li ance with th e Americans With Di sa biliti es Act of 1990 (ADA) and the Department of Transportation impl ementin g regu lat ion s, 49 C FR , Part 37 and sub seq uent updates. A doc tor's certificati o n ma y be req uired. G. A transit benefit pro gram is hereby estab li shed by t he City in wh ich the C ity sha ll issue id e nt ificat ion card s to emp loyers for distribution to the ir employees whi ch pro vide fo r an un lim ited number of employment related ride s. The id ent ification cards sha ll be issued by the Ci ty Fi nance Department o n a monthly bas is. The price for a fixed ro ut e ide ntifi cat ion card shall be $40.00 per mo nth and for a para-tran sit id e ntification ca rd sha ll be $80.00 per mo nth . H. Th e Director of Public Work s may estab lis h other rul es and regul at ions not in co ns istent with requirements o f the Fede ral Tran s it Adm ini stration , U.S. Department of Transportatio n, or th e C ity Co de in order to implement thi s section. I. C ity bu s se rvice wi ll only be provided wi th in the C ity limits. J . The Ci ty Administrator s hall have the authority to negotiate the bu lk sa le of transit services to be known as the Un iv ersa l Pass. The City Ad mini strator s ha ll estab lish the per-rid e fee for the Universa l Pass at an a moun t that furthers the transit div is ion's goals of increasing ridership and prov id ing low-cost publ ic tran sportation within th e Ci ty of J effe rso n. The C ity Ad min is trator sha ll contract for the sa le of Uni versa l Pass es through the Universal Pass Form approved by ord in ance of the City Co uncil. (Code 1977 , § 11-3; Ord . No. 9690, § 1, 10-1 9-8 1; Ord. No. 9748 , § 1, 3-1-8 2; Ord. No. 9792, §I, 6-7-82 ; Ord. No. 995 1, § I, 3-2 1-83 ; Ord. No. 10379 , § 1, 3-4-85 ; Ord. No. 10 5 1 I, § 1, I 0-2 1-85 ; Ord. No. I 1904 , § 4.E -F , 5- 17-9 3; Ord. No. 11 934 , §I, 7-19-93; Ord . No. 12994 , §I, 11-1-99 ; Ord . 13070 §I , 6-19-2000 ; Ord . 136 00 , § 13 , 9-2 -2003; Ord. 13790, § I, I 0-18-2004 ; Ord. No. 1450 5, § I, 4-6-20 09 ; Ord . No. 14964 , § I, 5-2 1-2 0 12; Ord. 158 12 , §I, 8-6-2 018 ) Section .f.. This Ordinance shall be in full force and effect beginning February 6 , 2023. Passed : ______________________ _ Approved : Presiding Officer M ayo r Carrie T e rg in ATTEST: APPROVED AS TO FORM: City Clerk City~ Editor 's not e: Add ed lang uage s hown thu s . Deleted lan gua ge s how n~ DEPARTMENT OF PUBLIC WORKS Transit Division– 820 E. Miller St. Jefferson City, MO 65101 PUBLIC HEARING NOTICE: JEFFTRAN FARE CHANGE JEFFTRAN, the public transportation provider in Jefferson City, invites comment on a proposal to increase JEFFTRAN fares by fifty percent. To view a description of the proposed fares, please visit https://www.jeffersoncitymo.gov/government/transit/alerts_and_news.php. A Public Hearing will be held at the City of Jefferson City Council meeting on Tuesday, January 17, 2023, at 6:00 p.m. in the Council Chambers, John G. Christy Municipal Building (City Hall), 320 East McCarty Street, Jefferson City, Missouri. Persons wishing to comment may do so in person at public hearing, or by mail to JEFFTRAN, 820 E. Miller Street, Jefferson City, MO 65101; by email to gstegeman@jeffersoncitymo.gov or by fax to 573.636.3632. The John G. Christy Municipal Building is accessible to individuals with disabilities. Individuals should contact the ADA Coordinator at 573.634.6570 to request accommodations or alternative formats as required under the Americans with Disabilities Act. Please allow three business days to process the request. Any questions regarding this notice should call 573.634.6479. Emily Donaldson, City Clerk, City of Jefferson, Missouri N.T. - Friday, December 16, 2022 Friday, January 6, 2023 Contact/billing information: City of Jefferson Transit Division/JeffTran 820 E. Miller Street Jefferson City, Missouri 65101 Contact: Glenna Vernon Phone 573.634.6479 ext. 1 DEPARTAMENTO DE OBRAS PÚBLICAS División de Tránsito – 820 E. Miller St. Jefferson City, MO 65101 AVISO DE UNA AUDIENCIA PÚBLICA: CAMBIO DE TARIFA DE JEFFTRAN JEFFTRAN, el proveedor de transporte público en Jefferson City, invita a comentar sobre una propuesta para aumentar las tarifas de JEFFTRAN en un cincuenta por ciento. Para ver una descripción de las tarifas propuestas, visite https://www.jeffersoncitymo.gov/government/transit/alerts_and_news.php. Se llevará a cabo una audiencia pública en la reunión del Concejo Municipal de Jefferson City el martes 17 de enero de 2023 a las 6:00 p. m. en las salas del Concejo, Edificio Municipal John G. Christy (City Hall), 320 East McCarty Street, Jefferson City, Missouri. Las personas que deseen hacer comentarios pueden hacerlo personalmente en una audiencia pública o por correo postal a JEFFTRAN, 820 E. Miller Street, Jefferson City, MO 65101; por correo electrónico a gstegeman@jeffersoncitymo.gov o por fax al 573.636.3632. El Edificio Municipal John G. Christy es accesible para personas con discapacidades. Las personas deben comunicarse con el Coordinador de ADA al 573.634.6570 para solicitar adaptaciones o formatos alternativos según lo exige la Ley para Estadounidenses con Discapacidades. Por favor permita tres días hábiles para procesar la solicitud. Si tiene alguna pregunta con respecto a este aviso debe llamar al 573.634.6479. Emily Donaldson, Secretaria Municipal, Jefferson City, Missouri N.T. Viernes, 16 de diciembre de 2022 Viernes, 6 de enero de 2023 Información de contacto/facturación: División de Tránsito de Jefferson City/JeffTran 820 E. Miller Street Jefferson City, Missouri 65101 Contacto: Glenna Vernon Department of Public Works Memorandum 320 E. McCarty Street • Jefferson City, Missouri 65101 • P 573-634-6410 • F 573-634-6562 • www.jeffcitymo.org At their August 30, 2022 meeting, the Public Transit Advisory Committee (P-TAC) recommended the Public Works Committee consider a change to transit fares. Unapproved P-TAC minutes of the meeting are attached. The group indicated fare changes should be considered in light of the level of inflation, which is up approximately 42% since 2007 when the last fare change was implemented. The recommendation is as follows: The fare change recommendation was specifically contingent on the implementation of a means of accepting fares electronically. Changing fares requires the approval of the Public Works Committee as well as the City Council. Public hearings prior to consideration by the Council is also required. A draft timeline of a potential fare change is below. Fare Type Current Fare Recommended Fare Regular Fare (1 ride)$1.00 $1.50 Regular Fare Adult Pass (20 rides)$20.00 $30.00 Reduced Fare (1 ride)$0.50 $0.75 Reduced Fare pass (20 rides)$10.00 $15.00 Student Pass (20 rides)$18.00 $27.00 Handiwheels Fare (1 ride)$2.00 $3.00 Handiwheels Pass (10 rides)$20.00 $30.00 Date: September 6, 2022 To: Public Works and Planning Committee From: Mark Mehmert Subject: Public Transit Advisory Committee Fare Recommendation Attachment A Please let me know if you have questions. cc: Public Transit Advisory Committee Date Activity 8/30/2022 Public Transit Advisory Committee recommended fare changes 9/8/2022 The Public Works Committee considers the recommendation 9/12/2022 If survey is approved by Committee, public comment period/rider survey begins 11/28/2022 Public comment period/rider survey ends 11/10/2022 Public comment/rider survey information reviewed by Public Works Committee 11/21/2022 If forwarded by Committee, bill is introduced at the City Council 12/5/2022 Public hearing is held in conjunction with City Council meeting 12/19/2022 Bill is considered by City Council TBD If approved, modified fares take effect Draft Fare Change Timeline MINUTES JEFFERSON CITY PUBLIC WORKS AND PLANNING COMMITTEE John G. Christy Municipal Building, 320 East McCarty Street Council Chambers and Virtual Committee Members Present: Ron Fitzwater Mike Lester David Kemna Mark Schreiber *Scott Spencer *Left the meeting at (10:05 a.m.) Staff Present: September 8, 2022 Matt Morasch, Director of Public Works David Bange, City Engineer Don Fontana, Stormwater Engineer Jon Fitch, Civil Engineer II Eric Bowers, Airport Manager Mark Mehmert, Transit Division Manager Chief Matt Schofield, Fire Chief Rachel Senzee, Neighborhood Services Supervisor Eric Barron, Planning/MPO Manager Katrina Williams, Planner 11 Matt Kreyling, Building Official Jessica Rackers, IT Ron Childs, IT Ryan Moehlman, City Counselor Steve Crowell, City Administrator Brenda Wunderlich, Administrative Supervisor Attendance 6 of 6 6 of 6 6 of 6 6 of 6 5 of 6 Chairman Fitzwater called the meeting to order at 7:30 a.m. A quorum was present at this time. The following guests attended the meeting: Jack Deeken, Joe Ridenhour, Derek Thomas, Angela Hirsch, Zeke Long, Randy Aulbur, Grant Shorthose and Matt Brenneke. 1)Introductions No formal introductions were made at this time. 2)Approval of the August 11, 2022 Committee meeting minutes Councilman Lester moved and Councilman Kemna seconded to approve the August 11 minutes, motion carried. 3)Business Attachment B Minutes/Jefferso n City Publi c Wo rk s and Pl anning Co mmittee September 8, 20 22 1. MoDOT Presentation of the Highway 54/63 Lane Addition North of the Missouri River Bridge and the Truman Boulevard Interchange Scoping Study 2 Mr. Aulbur gave a presentation and explained the various options for a lane addition on Highway 54/63. He stated MoDOT will be having public meetings in the next couple months regarding the options. He then went on the discuss the unfunded needs project on Truman Boulevard interchange project and how it is not a good pedestrian and bicycle mode due to site distance problems. He stated there will be public meetings coming up soon . 2. Parking Garage Study Update and App Update (Britt Smith) Mr. Smith explained the consultant should have the draft study to the City next month. Staff has ordered new parking rate cards to place on the meters, new signage to reflect the time limit change, and the software vendor is working on the app. There was discussion among Committee members and staff regarding the draft study taking so long, one of the parking garage stairwells being closed, possibly supply chain issues for rate cards, and possible changes to additional parking rates. Chairman Fitzwater requested the raising the parking rates be placed on the October Committee meeting for discussion . 3. Program for Upgrading Private Stormwater Systems (Committee Feedback) Mr. Morasch explained staff has created another section in the stormwater code. There was discussion among Committee members and staff regarding the cost to the homeowner, the restoration of the property would be at the homeowner cost , and the petition needing to be signed by all owners whose property agreed upon the drainage system resides . Committee members requested staff bring this item back to the Committee at the October Committee meeting. 4. TAP Grants for City Street Crosswalks at Southwest Boulevard, Lafayette Street, Edgewood Drive, and the Highway 179 Bypass Trail (David Bange) Mr. Bange explained staff is requesting the Committee to move the Missouri Highways and Transportation Commission Transportation Alternatives Funds Program agreement for the improved crosswalks at Southwest Boulevard and at Lafayette Street to the Council with recommendation to approve . The agreement for the acceptance of the grant for the 179 Bypass Trail will be presented to the Parking Commission for approval at their upcoming meeting. Minutes/Jefferso n City Publi c Wo rk s and Pl anning Co mmittee September 8, 20 22 3 There was discussion among Committee members and staff regarding the height of the raised crosswalk, the funding of the 20 percent match, and safety. Councilman Kemna moved and Councilman Lester seconded to refer the TAP grant agreements to the City Council with recommendation to approve , motion carried. 5. Public Transit Advisory Committee (PTAC) Recommendation for Transit Fare Increase (Mark Mehmert) Mr. Mehmert explained the PTAC recommended the Committee consider a change to transit fares at their August 30 meeting. Fare changes should be considered in light of the level of inflation, which is up approximately 42 percent since the last fare change in 2007 . There was discussion among Committee members, staff and those present regarding electronic payment and cost, and the required public hearings prior to consideration by the Council. Councilman Spencer moved and Councilman Lester seconded to refer the fare change recommendation to the City Council with recommendation to approve, motion carried. 6. On-line Building Permit Process (Matt Kreyling) Mr. Kreyling explained the new permitting and inspection software has been implemented to improve internal and external communications and processes through the plan review, permitting , and inspection phases of all construction project within the City. This will give a public access portal where designers, contractors, and property owners can track the progress of their projects. There was discussion among Committee members and staff regarding if this was presented to the Home Builders Association, on-line payments for permits, and a much easier application process. Mr. Kreyling stated he would discuss the program with the HBA. 7. Regulation of Utilities in Right-of-Way (Chairman Fitzwater) Chairman Fitzwater stated he gets several calls from citizens complaining regarding the utilities not fixing the yards when doing work in the City. There was discussion among Committee members , staff, and those present regarding the disruptions, restoring yards, keeping the streets clean, State law allowing standards for restoration, and the possibility of the City restoring and billing the utilities, the need for better communications with property owners, and using door hangers to Minutes/Jefferso n City Public Works and Planning Committee September 8, 2022 4 explain to property owners when the restoration may be finished. There was also discussion of cables running through the streets. Mr. Moehlman stated many of these items discussed could be put in the City standards and staff would work with the utility companies on time limits. Chairman Fitzwater requested the item come back to the Committee at a future meeting. 8. Annexation in General (Chairman Fitzwater) Councilman Spencer asked about the Wildwood and Algoa areas for annexation. There was discussion among Committee members and staff regarding if properties want City sewer they must sign for voluntary annexation, involuntary annexation, and development agreements. Chairman Fitzwater requested Mr. Crowell and Mr. Moehlman work to get an Annexation Committee together. 4) Citizen opportunity to address Council/Staff on Stormwater and Other Public Works Issues) • Mr. Shorthose asked the Committee to not approve the removal of the ramp MoDOT is discussing on Route W. There is a lot of traffic that uses Route W. Committee members requested staff coordinate with the businesses across the river to get their idea . Staff explained the City Council could do a resolution to send an official position letter to MoDOTto keep this ramp open. Mr. Morasch stated staff would have something for the next Committee meeting. 5) Reports: Neighborhood Service Grant Updates (Rachel Senzee) Ms. Senzee gave an update on the grants. She explained staff is continually looking for opportunities for use of grant funds . She stated this item will be a continual agenda item to update the public about funding opportunities, give Council the information to provide their respective constituency, and provide information to support budgetary decisions. There was discussion among Committee members and staff regarding if the developer could do a presentation at a Council meeting or if a Special Work Session would be needed. *Councilman Spencer left the meeting at this time (1 0:05a.m.). 6) Adjourn Councilman Kemna moved and Councilman Lester seconded to adjourn the meeting at this time (1 0:15a .m.), motion carried . Councilman Spencer was absent for this vote. Transit Fare Increase Survey 1 / 13 28.30%30 71.70%76 Q1 Do you currently use JEFFTRAN (including Handi-Wheels) or have you used us in the past 12 months? Answered: 106 Skipped: 0 TOTAL 106 0%10%20%30%40%50%60%70%80%90%100% NO - I have not used... YES - I have ridden JEFFT... ANSWER CHOICES RESPONSES NO - I have not used JEFFTRAN in the past 12 months. YES - I have ridden JEFFTRAN or HandiWheels in the past 12 months. Attachment C Transit Fare Inc rease Survey 2 / 13 62.50%40 29.69%19 4.69%3 1.56%1 1.56%1 Q2 Overall, how satisfied are you with current JEFFTRAN or Handi- Wheels service? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Very satisfied Somew hat satisfied Neither satisfied no... Somewhat dissatisfied Ver y dissatisfied ANSWER CHOICES RESPONSES Very s atisfied Somewhat sat isfied Neither satisfied nor dissatis fied Somewhat dis s atisfied Very dissatis fied Transit Fare Inc rease Survey 3 / 13 34.38%22 28.13%18 35.94%23 20.31%13 45.31%29 15.63%10 1.56%1 21.88%14 Q3 What route(s) do you ride most often? (Choose up to three) Answered: 64 Sk ipped: 42 Total Respondents : 64 0%10%20%30%40%50%60%70%80%90%1 00% #1 Gol d (High St. West) #2 Bl ue (Southw est) #3 Red (Business 5 0) #4 Bl ack (Capital Mall ) #5 Orange (M issouri... #6 Gr een (High St. East) Tripper Routes (After School) I use Handi-Wheels... ANSWER CHOICES RESPONSES #1 Gold (High St. West ) #2 Blue (Southwest) #3 Red (Business 50) #4 Blac k (Capit al Mall) #5 Orange (Mis souri Blv d.) #6 Green (High St. East) Tripper Routes (After School) I use Handi-Wheels f or some or all of my rides. Transit Fare Inc rease Survey 4 / 13 51.56%33 10.94%7 9.38%6 10.94%7 54.69%35 60.94%39 4.69%3 Q4 When you ride JEFFTRAN or Handi-Wheels what is the primary purpose of your trip? Answered: 64 Sk ipped: 42 Total Respondents : 64 0%10%20%30%40%50%60%70%80%90%1 00% Commute to/fr om work School Entertainment o r communit y... Visit friends or famil y Shopping Medical /Dental or other soc... Chil dcare ANSWER CHOICES RESPONSES Commute t o/from work School Entertainment or c ommunity events Vis it friends or family Shopping Medical/Dental or other s oc ial s ervices Childcare Transit Fare Inc rease Survey 5 / 13 1.56%1 10.94%7 18.75%12 14.06%9 12.50%8 21.88%14 20.31%13 Q5 What is your age range? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Under 1 8 1 8-24 25-34 35-44 45-54 55-64 65 + ANSWER CHOICES RESPONSES Under 18 18-24 25-34 35-44 45-54 55-64 65+ Transit Fare Inc rease Survey 6 / 13 59.38%38 40.63%26 Q6 Do you have a disability or limited mobility? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Yes No ANSWER CHOICES RESPONSES Yes No Transit Fare Inc rease Survey 7 / 13 37.50%24 28.13%18 10.94%7 14.06%9 4.69%3 4.69%3 Q7 How often do you ride JEFFTRAN or Handi-Wheels? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Ever y day A few times a w eek About once a week A few times a month Once a month Less than once a month ANSWER CHOICES RESPONSES Every day A few times a week About once a week A few times a month Onc e a month Less than onc e a month Transit Fare Inc rease Survey 8 / 13 59.38%38 18.75%12 26.56%17 Q8 What type of fare do you usually purchase? Answered: 64 Sk ipped: 42 Total Respondents : 64 0%10%20%30%40%50%60%70%80%90%1 00% Fixed Route Fare ($1.00) Reduced Far e ($0.50) Handi-Wheels Fare ($2.00) ANSWER CHOICES RESPONSES Fix ed Route Fare ($1.00) Reduc ed Fare ($0.50) Handi-Wheels Fare ($2.00) Transit Fare Inc rease Survey 9 / 13 40.63%26 10.94%7 18.75%12 7.81%5 21.88%14 Q9 If made available, how likely is it that you would use an app on your phone to pay for transit. Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Very likely Likel y Unsure Unlikely Very unl ikel y ANSWER CHOICES RESPONSES Very lik ely Lik ely Unsure Unlikely Very unlik ely Transit Fare Inc rease Survey 10 / 13 14.06%9 14.06%9 7.81%5 15.63%10 48.44%31 Q10 Do you approve of an increase to JEFFTRAN fares? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% St r ongly approve Approve Neither approve nor... Disapprove Strongl y disappr ove ANSWER CHOICES RESPONSES St rongly approve Approve Neither approve nor dis approve Dis approve St rongly dis approv e Transit Fare Inc rease Survey 11 / 13 39.06%25 23.44%15 18.75%12 9.38%6 9.38%6 Q11 How likely are you to continue using JEFFTRAN or Handi-Wheels if the proposed fare increase is approved? Answered: 64 Sk ipped: 42 TOTAL 64 0%10%20%30%40%50%60%70%80%90%1 00% Very likely Likel y Unsure Unlikely Very unl ikel y ANSWER CHOICES RESPONSES Very lik ely Lik ely Unsure Unlikely Very unlik ely Transit Fare Increase Survey 12 / 13 Q12 Do you have any additional comments about proposed fare increases? How would these potential changes impact you, if at all? Answered: 35 Skipped: 71 Transit Fare Inc rease Survey 1 / 2 Q12 Do you have any additional comments about proposed fare increases? How would these potential changes impact you, if at all? Answered: 35 Sk ipped: 71 #RESPONSES DATE 1 Friendly 12/15/2022 1:07 PM 2 It increases t he amount of money I s pend eac h week on fares 12/13/2022 4:59 PM 3 Don’t rais e t he fare!!!!!11/21/2022 3:22 PM 4 This increase is 50% more. That is a large inc reas e. There is different change av ailable besides quarters. Maybe $1.25 and $.60 for reduced fare. And the handiwheels should be $25.00 or $2.50 per ride. 11/18/2022 3:33 PM 5 NONE 11/18/2022 9:42 AM 6 I DO USE HANDIWHEELS SOMETIMES FOR SOCIAL REASONS AND THE PROPOSED INCREASE WOULD BE A HARDSHIP. 11/18/2022 9:37 AM 7 I AM ON SSI. SO, I AM ON A VERY TIGHT BUDGET AS IT IS.11/18/2022 9:34 AM 8 I CAN BARELY AFFORD RENT, UTILITIES, AND FOOD 11/18/2022 9:23 AM 9 I HAVE NO CHOICE BUT TO RIDE THE BUS, BUT CAN'T AFFORD RATE INCREASE.11/18/2022 9:10 AM 10 FEDERAL GRANT PROVIDES INCREASES NOT GOOD.11/17/2022 2:53 PM 11 PLEASE DONT INCREASE.11/17/2022 2:46 PM 12 LONGER HOURS OF OPERATION.11/17/2022 2:45 PM 13 WOULD HAVE NO CHOICE BUT TO CUT BACK ON HOW MUCH WE PURCHASE.11/17/2022 2:40 PM 14 IT'S ALREADY A STRUGGLE TO PAY FARES.11/17/2022 2:37 PM 15 No. Run on Sat urday.11/17/2022 2:07 PM 16 Everyt hing is more ex pensiv e as a fair increase doesn't seem unavoidable. pay y our driv ers better! I don't own a c ar; J eff Tran is my only means of transportation. I would hate for Jeff Tran to be disc ontinnued. 11/17/2022 2:05 PM 17 Need t o run on week ends. Would love a monthly pas s.11/17/2022 1:51 PM 18 Somewhat impac t me due t o fair inc reas e.11/17/2022 1:48 PM 19 the people that ride the bus s es are all people who are in need of it and it should be a servic e for every one liv ing in town. I don't like the f act they don't run on week ends or even alil after normal busines s hours of c losing time. s ome of us c an't move as quic k ly and have children as well who don't always habe the means of mak ing the last bus , and then you are s tuc k as stores /drs offic es are clos ing especially when it's bey ond y our control. ov erall experienc e is an amazing one. love t he s taff and the c oncept of trans it.. just wish it was more affordable as it is. without even higher prices. at times y ou have to choos e between rides and getting all the meds one needs as it is .. 11/15/2022 2:10 PM 20 Does t he propos ed fare increase come with any improvements to Jeff tran? It's a public serv ice so I don't care if it's losing money ? 11/12/2022 8:14 AM 21 I will go do what I hav e to do and c ut the trips.11/11/2022 12:21 AM 22 I believ e an inc reas e in pric e c ould be benefic ial. If the bus es and trans it c enter would be updated appropriately. And possibly if more routes would be added. The increase in pric e would be a bit diffic ult to maintain f or me and pos sibly for others. Howev er, it is possible. I just hope this change does not go into effec t until 2023 at the earliest. 11/9/2022 4:06 PM Transit Fare Inc rease Survey 2 / 2 23 Hoping it s tays t he s ame 11/9/2022 3:43 PM 24 No 11/9/2022 9:10 AM 25 I work for Capitol Projec ts and don't mak e a lot of money. I barely can af ford the $20.00 a week now. 11/9/2022 8:52 AM 26 i am a pregnant lady who has t o us e the bus to get to and from work. and rais ing the pric e would force me to walk to work and back. 11/8/2022 8:30 PM 27 I am on a fixed inc ome. I will not be able to afford the inc reas ed fare 11/4/2022 4:19 AM 28 You are as k ing people to multiply our t rans portation budgets by 50% with no improv ement in serv ice. You are hav ing a public meeting about it purposefully when few transit patrons can attend. As I hav e said for 18 y ears , the way to inc rease revenue is t o increase ridership by adding ev ening and week end s erv ice. I see you hating and res enting us — wanting to be rid of us. We are v aluable humans who c ontribute to the life of the city and to the economy — y et we are left out of s o muc h t hat goes on here for lack of transportation. I s ee y ou. I see what kind of people you are. 11/1/2022 8:43 PM 29 Less groc ery money 11/1/2022 11:25 AM 30 If rates inc reas e I'd like to see bases run lat er in the day as well and s ome on week ends 11/1/2022 11:10 AM 31 No 11/1/2022 10:13 AM 32 Liv e on fixed inc ome and can't afford even a few dollars more a month than current ride cost.11/1/2022 6:41 AM 33 I am a 17 year old student who already walks to the bus s top. i feel lik e a dollar is jus t the right amount of money to pay for a bus ride. 10/31/2022 5:56 PM 34 It's hard for me t o get enough money for my pas s es as it is 10/31/2022 5:25 PM 35 I am on a fixed inc ome. Can't afford a inc rease fare.10/30/2022 10:57 AM Transit Fare Increase Survey 13 / 13 Q13 Although you do not currently use JEFFTRAN, please feel free to provide comments about why you don't ride or what changes might encourage you to ride. Thank you for your time. Answered: 21 Skipped: 85 Transit Fare Inc rease Survey 1 / 2 Q13 Although you do not currently use JEFFTRAN, please feel free to provide comments about why you don't ride or what changes might encourage you to ride. Thank you for your time. Answered: 21 Sk ipped: 85 #RESPONSES DATE 1 Own a vehicle 11/29/2022 8:24 AM 2 Times posted on bus s top would help out.. not ev ery one has a way to look up times via phone, computer or hav e nternet ac c es s.. 11/29/2022 7:44 AM 3 Smaller v ehicles per needs seem more appropriate 11/10/2022 6:04 PM 4 The people that utilize J eff Tran are people that are living with a limited inc ome or have dis abilities. They already have a hard enough time try ing to afford to go to their doc tor appointments. Why make it harder for our community to utiliz e these servic es ? 11/9/2022 9:34 AM 5 Currently have v ehic le 11/5/2022 1:36 PM 6 I am mov ing to Jeffers on Cit y within the next month and plan on using the bus s ystem. As an alleviation to conges tion, environmental impact, and car dependency, bus fares s hould be kept affordable and the times the buses run ex tended further into the ev ening. 11/4/2022 1:22 PM 7 Your bus routes only help thos e who are going s hopping. Public t rans portation should be available to prov ide people a means t o go to work. The c ity annex ed the farmland east of town becaus e t he s tate prison moved and y et there are no c it y s erv ices that support that area. This inc ludes fire s tations , but also no public transportation to two prisons , the dump, National Guard, and s ev eral fac tories . This leaves a dis adv antage to individuals who do not have a ride to get to good paying jobs that would giv e them the means to purchase a car. 11/4/2022 6:21 AM 8 I live in Columbia, where I use trans it regularly. I would use it if there was a regular bus link to Jefferson City f rom Columbia. Howev er… Columbia and Kansas City both offer free transit. I’m concerned about a fare increase for J EFFTRAN, and would not use it as regularly (if I had t he option) due to an increase in fares . For a fare increase to be jus tified, s ervice needs to be improved firs t. 11/3/2022 4:36 PM 9 Don't ride becaus e I have a baby that needs a carseat. I also have a car.11/2/2022 9:59 PM 10 public transit is a servic e, not a business. it should be free.11/2/2022 3:36 PM 11 Will ride when I need to.11/2/2022 12:19 PM 12 No stops c lose enough to where I live - jus t like for mos t in Jeff City. The system only works for a relative few. It should c ome much clos er to being paid for by the fortunate f ew that live in plac es they can use it. 11/2/2022 8:57 AM 13 Hav e my own car, but daughter uses Handiwheels 11/1/2022 9:51 PM 14 I do not us e JEFFTRAN bec ause I have my own mode of transportation.11/1/2022 11:07 AM 15 Hav e not needed bus serv ice. May need handy wheels in future. Believ e rat e hike is appropriat e. Still good deal and c heaper than Uber. 11/1/2022 10:31 AM 16 I would lov e to ride J effTran as there is a s top 10 f eet from my hous e. However, t he hours and routes aren't c ompatible with my M-F 8AM-5PM job. An inc reas e in operating hours would be benefic ial to s o many that would prefer to use public trans it. 11/1/2022 10:11 AM 17 I know the serv ice is there, and available if I need it. I am luc k y to have my own c ar, but cars breakdown. I know many that use t his servic e and sc rape up the funds and often borrow the funds to use the bus . Hourly rate of pay has gone up, but in the same breath so has everything els e. We need to do what litt le we can to help thos e affected mos t. If an inc reas e is necess ary, maybe 25 cents would be more reasonable. 11/1/2022 6:50 AM Transit Fare Increase Survey 2 / 2 18 Jefftran needs to run busses longer so people can actually work an 8 hour a day job and be able to get back home. It's already hard for some people to pay a dollar a ride. Please don't raise the rates. 10/31/2022 9:00 PM 19 I have private transportation. The bus schedule does not meet my needs.10/31/2022 5:00 PM 20 Too time consuming waiting on buses. I do agree fare increases are needed, as we are all paying higher prices in everything. 10/31/2022 3:39 PM 21 I don't ride because it needs to run laer in the bar/entertainment areas so people can indulge than have a safe ride home 10/31/2022 11:29 AM Wiliiams, Katrina From: Morasch, Matt Sent: Tuesday, January 17, 2023 8:47 AM To: Stegeman, Gerry; Williams, Katrina Subject: FW: ***EMAIL SENT THROUGH WEBSITE Gerry., could you contact this person to answer any questions she might have thanks. Matt Morasch, P.E. Director, Public Works City of Jefferson City, MO 573-634-6410 From: Tergin, Carrie <CTergin@jeffersoncitymo.gov> Sent: Monday, January 16, 2023 3:38 PM To: candacehawkins.65101@gmail.com; Suchanek, Jennifer <JSuchanek@jeffersoncitymo.gov>; Morasch, Matt <MMorasch@jeffersoncitymo.gov>; Smith, Britt <BSmith@jeffersoncitymo.gov>; Crowell, Steve <SCrowell@jeffersoncitymo.gov> Cc: Suchanek, Jennifer <JSuchanek@jeffersoncitymo.gov> Subject: RE: ***EMAIL SENT THROUGH WEBSITE*** Hi Candace, Thank you for reaching out. I agree that transit is extremely important and we want to continue to strengthen it. It has been over 20 years since fairs were raised, and there are many expenses to cover, although fares make up a small part of it. The Transit Advisory Commission has made the recommendation to council after much evaluation. The council will take that all into consideration, and I am sure they would welcome your input. Over the years I have always been a strong supporter of public transit. I also want to see the service maintained and I'm glad that extra conveniences like the app have been added to increase the service level. We review routes regularly and always try to be efficient with changes and updates. I've copied Mr. Smith from Public Works to ask if he can send you a link to the information about this specific bill, and you are welcome to read through it and also attend the council meeting or reach out and share your feelings with other council members as well. Lastly you mentioned the money spent on demolitions, and the city budget is very broad and there are many needs to address in a wide variety of areas. Transit receives a very large subsidy and the costs continue to increase, but was want to keep the service going. Thank you for being a transit rider. We want to continue to maintain in grow our transit. Thank you, Carrie Carrie Tergin, Mayor City of Jefferson, Missouri 320 East McCarty Street Jefferson City, MO 65101 Office 573-634-6381 CeII 573-230-7645 #BuckleUpPhoneDown ejv 0 #EmptyCleanDry dio #CloseBeforeYouDoze #JCSTRONG Original message From: noreply@revize.com Date: 1/16/23 2:41 PM (GMT -06:00) To: "Tergin, Carrie" <CTergin@ieffersoncitvmo.gov> Cc: "Suchanek, Jennifer" <JSuchanek@ieffersoncitvmo.gov> Subject: ***EMAIL SENT THROUGH WEBSITE*** Name = Candace S Hawkins Address = 712 Nelson Dr Address Line 2 = City_Town = Jefferson City Stat_Prov = MO Zip Code = 65101 Phone = 5736352660 Email = candacehawkins.65101@gmail.com Comments = As a rider of JeffTran I am incredibly disappointed that the City of Jefferson is considering raising the fare for public transit. Columbia and Kansas City have implemented zero -fare transit with good results. Increased ridership helps with congestion, and parking issues while making for a friendlier, more welcoming city environment. If the increase in fares were to provide more services such as evenings and/or weekends, it might make sense. If the increase in fares were to hire more drivers, again it might make sense. However, with no improvement in service, all this fare increase will provide will be a decline in ridership. Surely that is not your goal. Why is the city moving backward? I resent being charged more for riding public transit while my tax dollars are being spent to demolish privately owned properties. Seniors, disabled citizens, and low-income families should not have to bear this burden for the small increase in revenue. Please reconsider this short-sighted move. Client IP = 104.166.236.59 2 January 10, 2023 Compensation Study for the City of Jefferson, MO FINAL REPORT PAGE 1.0 INTRODUCTION .......................................................................................................... 1-1 1.1 Study Methodology ............................................................................................ 1-1 1.2 Report Organization........................................................................................... 1-2 2.0 ASSESSMENT OF CURRENT CONDITIONS ................................................................ 2-1 2.1 Analysis of Pay Plans ......................................................................................... 2.1 2.2 Grade Placement Analysis ................................................................................ 2-3 2.3 Quartile Analysis ................................................................................................ 2-4 2.4 Conclusion ......................................................................................................... 2-8 3.0 MARKET SUMMARY ................................................................................................... 3-1 3.1 Market Data ....................................................................................................... 3-3 3.2 Salary Survey Conclusion .................................................................................. 3-8 4.0 RECOMMENDATIONS ................................................................................................ 4-1 4.1 Compensation Recommendations ................................................................... 4-1 4.2 Compensation and Classification System Administration .............................. 4-5 4.3 Summary ......................................................................................................... 4-10 APPENDIX: POSITION GRADE ASSIGNMENTS EVERGREEN SOLUTIONS, LLC Table of Contents Evergreen Solutions, LLC Page 1-1 The leadership of Jefferson City, MO (the “City) in keeping with its commitment to attracting and retaining the staff necessary to provide high quality services to its employees and citizens determined that its current compensation system needed to be updated to reflect market best practices. Evergreen Solutions, LLC (“Evergreen”) was selected by the City as its partner to accomplish this goal. This study and the analysis contained within provides the City with valuable information related to their employee demographics, market data, and internal and external equity. This study aims to address how the City is positioned in the market relative to other Cities in the state and to other local area government organizations with similar positions. The data gathered during the market portion of this study were used to develop recommendations that allow the City to recruit and retain quality employees. 1.1 STUDY METHODOLOGY Evergreen combines qualitative and quantitative data analysis to produce recommendations that maximize the fairness and competitiveness of an organization’s compensation structure and practices. It is important to note that the data utilized in the study represents a snapshot in time. As market conditions can change rapidly, it is important for the City to conduct regular market surveys to ensure their external market position does not decay. A full compensation and classification review is recommended approximately every five years. Some examples of project activities included:  Conducting a project kick-off meeting;  Conducting an analysis on the internal conditions at the City;  Conducting an external market salary survey;  Developing recommendations for compensation management;  Realigning positions based on the market results;  Developing recommendations for compensation changes; and  Creating draft and final reports; Kickoff Meeting The kickoff meeting provided an opportunity to finalize the work plan and begin the data collection process. Data collection included the gathering of relevant background material including existing pay plans, organization charts, policies, procedures, training materials, classification specifications, and other pertinent material. EVERGREEN SOLUTIONS, LLC Chapter 1 - Introduction Chapter 1 - Introduction Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 1-2 Internal Analysis The internal analysis was run on data provided by the City. Checks were run to evaluate employees’ salaries compared to the minimum, midpoint, and maximum of their pay ranges, as well as evaluating the employees’ salaries against the “expected salary” that an employee would expect to make based on the number of years an employee has spent in their current classification. Salary Survey The external market for this study was defined as identified local governmental organizations in the State of Missouri with similar positions, characteristics, demographics, and service offerings. Representative benchmark classifications were selected by Evergreen in consultation with the City. The benchmark classifications were included in the market survey and sent to each peer for a market comparison, although not all City positions had matching positions in the peer organizations. The data were then analyzed comparing City classifications to the jobs performing the same duties at peer organizations to gain a fuller understanding of their market position. Recommendations Evergreen developed recommendations for the City to consider helping maximize the effectiveness and efficiency of its current compensation structure. Evergreen provided recommendations designed to fix the issues identified in this report, while continuing to build on the strengths the City currently exhibits. 1.2 REPORT ORGANIZATION This report includes the following additional chapters:  Chapter 2 – Assessment of Current Conditions  Chapter 3 – Market Summary  Chapter 4 – Recommendations Chapter 2 - Assessment of Current Conditions An assessment of current conditions was conducted to help Evergreen better understand the current standing of all City pay plans, demographics, and compensation structures. This assessment should be considered a snapshot in time and reflects the conditions within the City upon this study's start. By leveraging this information, Evergreen gained a better understanding of the strengths and weaknesses of the current compensation system. When combined with the market results, the Assessment of Current Conditions helped provide a basis for recommendations. A full summary of the Assessment of Current Conditions can be found in Chapter 2 of this report. Chapter 1 - Introduction Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 1-3 Chapter 3 - Market Summary A salary survey was designed by Evergreen and approved by the City. After the results were received, the data were analyzed to compare the City to the overall results from public-sector peers. Combined with the Assessment of Current Conditions, the market survey gave Evergreen the information needed to understand the City’s position relative to its labor market. A full summary of the market results can be found in Chapter 3 of this report. Chapter 4 – Recommendations During the recommendations phase, Evergreen provided solution options based on their current relationship to market. Evergreen has given the City recommendations that will leverage the strengths of the current compensation structure and help expand its ability to recruit and retain talent in the most competitive classifications. A full explanation of the recommendations can be found in Chapter 4 of this report.   Evergreen Solutions, LLC Page 2-1 The purpose of this chapter is to provide a statistical analysis of the classification and compensation system in place at the City at the start of this study. The assessment is divided into the following sections: 2.1 Analysis of Pay Plans 2.2 Grade Placement Analysis 2.3 Quartile Analysis 2.4 Compression Analysis 2.5 Conclusion The analysis represented in this chapter represents a snapshot in time – this chapter was built from employee information collected in March of 2022. Every organization changes continuously, so this chapter is not meant to be a definitive statement on continuing compensation practices in the City. Rather, this AOCC is meant to represent the conditions that were in place when this study began. The data contained in provide the baseline for analyses through this study but are not sufficient cause for recommendations in isolation. By reviewing employee data, Evergreen gained a better understanding of the structure and methods in place and identified issues for both further review and potential revision. 2.1 ANALYSIS OF PAY PLANS The purpose of analyzing the pay plan used within the City is to help gain an overview of the compensation philosophy as it existed when the study began. The City had a system in place that used numeric pay grades to represent classifications of varying level and responsibility. For this report's purpose, Evergreen only analyzed pay grades occupied by full-time employees. Exhibit 2A displays the City’s pay plan. The exhibit provides the name; each pay grade on the plan; the value of each pay grade at minimum, midpoint and maximum; the range spread for each pay grade – which is a measure of the distance between the minimum and maximum of the grade; the midpoint progression between grades; and the number of employees per pay grade. The City’s pay plan includes eighteen occupied pay grades that hold 324 employees (it is important to note that the Police ranks were excluded from these employees counts and subsequent tables). The range spread of all the grades is 50 percent. Pay grades 7 and 28 only have a single employee each, while pay grade 16 contains the most employees with 96. EVERGREEN SOLUTIONS, LLC Chapter 2 – Assessment of Current Conditions Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 2-2 EXHIBIT 2A PAY PLAN SUMMARY Comparing the summary data in Exhibit 2A to best practices, a few observations can be made regarding the City’s pay plan. Based on the analysis of the pay plan, the following facts can be observed:  Range spreads are set at a static 50 percent. In the market, range spreads are typically set anywhere between 50 and 70 percent.  The number of employees on each pay grade is widely varied. Multiple pay grades have only one incumbent occupying the grade, while several have over thirty employees.  The minimum annual pay offered to any City employee is $29,831 while the maximum salary of any pay grade is $180,871. Pay Plan Grade Minimum Midpoint Maximum Range     Spread Midpoint  Progression Employees General 7 29,831$        37,289$        44,747$        50% ‐ 1 General 8 31,323$        39,154$        46,985$        50% 5% 2 General 9 32,889$        41,111$        49,334$        50% 5% 38 General 10 34,534$        43,167$        51,800$        50% 5% 39 General 11 36,260$        45,325$        54,390$        50% 5% 3 General 12 38,073$        47,592$        57,110$        50% 5% 28 General 13 39,977$        49,971$        59,965$        50% 5% 13 General 14 41,976$        52,470$        62,964$        50% 5% 40 General 15 44,075$        55,093$        66,112$        50% 5% 4 General 16 46,278$        57,848$        69,418$        50% 5% 55 General 17 48,592$        60,740$        72,888$        50% 5% 29 General 18 51,022$        63,777$        76,533$        50% 5% 33 General 19 53,573$        66,966$        80,359$        50% 5% 6 General 20 56,252$        70,315$        84,377$        50% 5% 2 General 21 61,877$        77,346$        92,815$        50% 10% 17 General 23 74,871$        93,589$        112,306$     50% 21% 5 General 25 90,594$        113,242$     135,891$     50% 21% 8 General 28 120,580$     150,725$     180,871$     50% 33% 1 Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 2-3 2.2 GRADE PLACEMENT ANALYSIS The Grade Placement Analysis examines how employee salaries are distributed throughout the pay grades. This can help identify salary progression issues, which are usually accompanied by employee salaries that are clustered in segments of the pay grades. A clustering of employee salaries in the lower part of ranges can indicate a lack of salary progression for employees or an elevated level of employee turnover. A clustering of employee salaries in the high end of pay ranges can be a sign of high employee tenure or a sign that the pay ranges are behind market, forcing the organization to offer salaries near the maximum of the range to new hires. Regarding minimum and maximum salaries, employees at the grade minimum are typically newer to the organization or to the classification, while employees at the grade maximum are typically highly experienced and highly proficient in their classification. The Grade Placement Analysis examines how salaries compare to pay range minimums, midpoints, and maximums. Only pay grades with at least one incumbent are included in this analysis. Exhibit 2B displays the percentage and number of employees compensated at their pay grade minimum and pay grade maximum. The percentages presented are based on the total number of employees in that grade. As can be seen in the exhibit, 6.8 percent (22 total) of all employees are compensated at their pay grade’s minimum. A much smaller percentage of employees, at 0.9 percent (3 total), are compensated at their pay grade’s maximum. EXHIBIT 2B EMPLOYEES AT MINIMUM AND MAXIMUM BY GRADE Grade Employees # at Min % at Min # at Max % at Max 7100.0%00.0% 82150.0%00.0% 93837.9%00.0% 10 39 0 0.0% 1 2.6% 11 3 0 0.0% 0 0.0% 12 28 0 0.0% 0 0.0% 13 13 10 76.9% 0 0.0% 14 40 1 2.5% 0 0.0% 15 4 1 25.0% 0 0.0% 16 55 3 5.5% 0 0.0% 17 29 1 3.4% 2 6.9% 18 33 0 0.0% 0 0.0% 19 6 1 16.7% 0 0.0% 20 2 0 0.0% 0 0.0% 21 17 0 0.0% 0 0.0% 23 5 0 0.0% 0 0.0% 25 8 1 12.5% 0 0.0% 28 1 0 0.0% 0 0.0% Total 324 22 6.8% 3 0.9% Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 2-4 In addition to assessing the number of employees at minimum and maximum, an analysis was conducted to determine the number of employees below and above pay grade midpoint. The percentages refer to the percentage of employees in each pay grade that are above and below midpoint. Exhibit 2C shows the results of this analysis: 270 employees are compensated below their pay grade midpoint, 83.3 percent of all employees for the City. There are 54 employees compensated above midpoint of their pay grade, which is 16.7 percent of all employees. EXHIBIT 2C EMPLOYEES ABOVE AND BELOW MIDPOINT BY PAY GRADE 2.3 QUARTILE ANALYSIS The last part of the Grade Placement Analysis is a detailed look at how salaries are distributed through pay grades, through a quartile analysis. Here, each pay grade is divided into four segments of equal width, called quartiles. The first quartile represents the first 25 percent of the pay range; the second quartile represents the part of the range above the first quartile up to the mathematical midpoint; the third quartile represents the part of the range from the midpoint to 75 percent of the pay range; and the fourth quartile represents the part of the range above the third quartile up to the pay range maximum. Employees are assigned to a quartile within their pay range based on their current salary. Grade Employees # < Mid % < Mid # > Mid % > Mid 7 1 0 0.0% 1 100.0% 8 2 2 100.0% 0 0.0% 9 38 34 89.5% 4 10.5% 10 39 33 84.6% 6 15.4% 11 3 3 100.0% 0 0.0% 12 28 27 96.4% 1 3.6% 13 13 13 100.0% 0 0.0% 14 40 38 95.0% 2 5.0% 15 4 3 75.0% 1 25.0% 16 55 47 85.5% 8 14.5% 17 29 24 82.8% 5 17.2% 18 33 24 72.7% 9 27.3% 19 6 4 66.7% 2 33.3% 20 2 1 50.0% 1 50.0% 21 17 11 64.7% 6 35.3% 23 5 2 40.0% 3 60.0% 25 8 4 50.0% 4 50.0% 28 1 0 0.0% 1 100.0% Total 324 270 83.3% 54 16.7% Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 2-5 The quartile analysis is used to determine the location of employee salary clusters. Quartile analysis helps identify whether clusters exist in specific quartiles of pay grades. Additionally, the amount of time the employee has spent at the organization is also analyzed, to observe any relationship between organizational tenure and salary progression. This information, while not definitive alone, can shed light on any root issues within the current compensation and classification plan when combined with market data and employee feedback. Exhibit 2D shows the number of employees that are in each quartile of each grade, as well as the average overall tenure (i.e., how long an employee has worked for the City) by quartile. Overall, data provides that 65.1 percent of employees fall into Quartile 1 of their respective grade; 18.2 percent fall into Quartile 2; 10.5 percent fall into Quartile 3; and 6.2 percent fall into Quartile 4. While this distribution does not lead to a conclusion, data for average tenure does lead to determinations on the relationship between tenure and salary. Overall average tenure increases as quartile increases; the average tenure in Quartile 1 is 8.4 years; in Quartile 2 is 16 years; in Quartile 3 is 19.9 years; and in Quartile 4 is 25.2 years. This indicates that employees are moved through their pay grades equitably, or at least a positive linear relationship exists between tenure and pay. Exhibit 2E displays a graphical representation of the data contained in Exhibit 2D. Each pay grade is divided into up to four sections representing the percentage of employees in that pay grade who belong in each quartile. For example, pay grade 8 has zero employees in Quartile 2, 3, or 4. That pay grade is represented by a 100 percent blue bar, showing that 100 percent of pay grade 8 employees are in Quartile 1. Pay grades 16 – 19, however, have employees in all four quartiles, represented by bars displaying all four colors. Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 2-6 EXHIBIT 2D QUARTILE ANALYSIS AND TIME WITH THE ORGANIZATION # Employees Avg Tenure # Employees Avg Tenure # Employees Avg Tenure# Employees Avg Tenure7119.70‐0‐119.70‐8 2 1.9 2 1.9 0 ‐ 0 ‐ 0 ‐9 38 10.8 31 6.4 3 20.7 1 27.0 3 40.310 39 8.5 27 5.6 6 10.8 4 16.4 2 25.111 3 2.0 3 2.0 0 ‐ 0 ‐ 0 ‐12 28 8.8 22 6.2 5 16.5 1 29.3 0 ‐13 13 3.2 13 3.2 0 ‐ 0 ‐ 0 ‐14 40 10.3 32 9.4 6 13.5 2 16.4 0 ‐15 4 13.4 2 4.0 1 20.5 0 ‐ 1 24.816 55 13.0 40 10.3 7 18.9 5 24.2 3 16.717 29 16.8 13 13.6 11 16.7 2 25.3 3 25.918 33 16.7 17 12.7 7 19.3 7 20.5 2 28.419 6 14.4 3 5.7 1 23.6 1 22.7 1 23.020 2 8.8 0 ‐ 1 1.8 1 15.9 0 ‐21 17 15.6 3 14.8 8 13.9 4 17.9 2 19.423 5 22.0 2 26.4 0 ‐ 2 19.2 1 18.625 8 16.2 1 12.6 3 14.7 2 14.7 2 21.828 1 8.3 0 ‐ 0 ‐ 1 8.3 0 ‐Overall 324 12.0 211 8.4 59 16.0 34 19.9 20 25.24th QuartileAverage TenureGRADETotal Employees1st Quartile 2nd Quartile 3rd Quartile Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 2-7 EXHIBIT 2E QUARTILE PLACEMENT BY PAY GRADE Chapter 2 - Assessment of Current Condition Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 2-8 Studying the data from the following exhibits can reveal certain patterns. One thing that can be observed is the percentage of employees in Quartile 1 generally decreasing as you progress through the grades. For example, you can observe the blue Quartile 1 bars decreasing from pay grades 13 through 28. This indicates that as employees on the pay plan move up into the highest pay grades, they are progressing through the individual pay range, too. There are many reasons why this might be the case. One explanation is that employees who are promoted in the City could be expected to have progressed through their current pay grade to near the maximum. Then when they are promoted, they do not start back over at their new pay grade minimum, as that would result in a pay decrease. Instead, when an employee is promoted, they might start towards the midpoint of their new pay grade from day one. Another explanation is as you move to higher pay grades, positions are more competitive on the open market. There are typically more certifications required, more experience is desirable, and there are fewer employees available to fill the position. That requires the hiring managers to bid up the price of a new hire to attract high quality employees. It is impossible to determine why this pattern is occurring without more data. However, it is something that bears watching in the future, as the City could gather valuable information about itself. 2.4 CONCLUSION The City utilizes one pay plan to classify employees. This provides a unified approach to allow the City to adjust the pay plan as much or as little as needed for all employees at once. There were many observations made about the City’s compensation system at the start of the study.  Range spreads are set to 50 percent for each pay grade.  Most employees are paid below their pay grade midpoint.  More than half of employees (65.1 percent) are in Quartile 1 of their pay grade. This can indicate a workforce with a high turnover, a workforce experiencing compression, or that has recently expanded with many new hires. Further analysis is required to determine the cause of this imbalance.  While there will always be outliers, the City has a consistent and positive relationship between tenure and pay grade penetration. This analysis acts as a starting point for the development of recommendations in subsequent chapters of this report. Paired with market data, Evergreen can make recommendations that will ensure that the City compensation system is structurally sound in terms of best practice, competitive with the market, and treats all employees equitably moving forward.       Evergreen Solutions, LLC Page 3-1 The market summary chapter benchmarks the City’s compensation practices against its market peers to establish how competitive the City is for employees within its market. To complete this market study, Evergreen compared pay ranges of select benchmark positions that the City possesses against the compensation of positions performing those same duties within peer organizations. By aggregating the differences in pay ranges across all the positions, a reasonable determination is made as to the City’s competitive position within the market. The City wanted to look at the difference between competing in the 50th percent and 70th percent of the market. Competing in the 70th percentile would be a more aggressive approach for the City. These two positionings are discussed in this chapter. It is important to note that individual salaries are not analyzed in this methodology, since individual compensation can be affected by several variables such as experience and performance. For this reason, Evergreen looked at average pay ranges across the entire classification to make the most accurate comparison. The results of this market study should be considered reflective of the current state of the market at the time of this study; however, market conditions can change rapidly. Consequently, it is necessary to perform market surveys of peer organizations at regular intervals for an organization to consistently monitor its position within the market. Furthermore, the market results detailed in this chapter provide a foundation for understanding the City’s overall structural standing to the market, and the rates reflected in this chapter, while a crucial factor, are not the sole determinant for how classifications were placed into the proposed salary ranges outlined in Chapter 4. Evergreen conducted a comprehensive market salary survey for the City, which included 17 peers including cities, a county, a non-profit association, and the State. Target peers were selected based on several factors, including geographic proximity and population size. Target organizations were also identified for their competition to the City for employee recruitment and retention efforts. The list of targets provided data for this study are included in Exhibit 3A. EVERGREEN SOLUTIONS, LLC Chapter 3 – Market Summary Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO     Evergreen Solutions, LLC Page 3-2 EXHIBIT 3A TARGET MARKET PEERS Since the data collected for the market summary was from various regions of Missouri, it was necessary to adjust peer responses relative to the City based on cost-of-living. For all organizations that fell outside the City’s immediate region, a cost-of-living adjustment was applied to the reported pay ranges to ensure the market average was attained in terms of the spending power an employee would have in the City. Evergreen utilizes cost-of-living index information from the Council for Community and Economic Research, and the scale is based on the national average cost of living being set at 100. The cost-of-living index figures for The City and each of the respondent market peers are in Exhibit 3B. Ashland, MO Blue Springs, MO Boone County, MO Cape Girardeau, MO Clayton, MO Columbia, MO Florissant, MO Fulton, MO Independence, MO Joplin, MO Mid-America Regional Council O'Fallon, MO St. Charles, MO St. Joseph, MO State of Missouri University City, MO Wentzville, MO Target Respondents Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO     Evergreen Solutions, LLC Page 3-3 EXHIBIT 3B RESPONDENTS WITH COST-OF-LIVING ADJUSTMENTS 3.1 MARKET DATA The results of the market study are displayed in Exhibits 3C-1 and 3C-2, representing the City’s positioning in the 50th percentile and 70th percentile, respectively. These exhibits include the benchmark job titles and the market average salaries for each position at the minimum, midpoint, and maximum points of the pay ranges. Also included within the exhibits are the percentage differentials of the City’s pay ranges at each respective point, relative to the market average pay. A positive percent differential is indicative of the City’s pay range exceeding that of the average of its market peers, while a negative differential indicates the City’s compensation for a given position lagged behind the peer average. The exhibits also include the average pay range for the market respondents for each position, as well as how many responses each benchmark received. While all benchmarks are surveyed by each peer, not every peer organization possesses an appropriate match to supply salary information for. Consequently, the benchmarks receive varying levels of response. For this study’s purpose, all positions that received less than five matches from market peers were not considered in establishing the City’s competitive position. The rationale behind these positions being excluded is that insufficient response can lead to unreliable averages that may skew the aggregated data, blurring the reality of the City’s actual position in the market. Fifty-eight of the 72 positions surveyed had a sufficient response for inclusion. Market Peers Cost of Living Index Ashland, MO 92.4 Blue Springs, MO 92.4 Boone County, MO 92.4 Cape Girardeau, MO 91.3 Clayton, MO 104.2 Columbia, MO 92.4 Florissant, MO 104.2 Fulton, MO 90.0 Independence, MO 92.4 Jefferson City, MO 94.6 Joplin, MO 87.6 MARC 92.4 O'Fallon, MO 95.7 St. Charles, MO 95.7 St. Joseph, MO 89.2 State of MO 94.6 University City, MO 104.2 Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 3-4 EXHIBIT 3C-1 MARKET SURVEY RESULTS – 50TH PERCENTILE  Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 3-5 EXHIBIT 3C-1 MARKET SURVEY RESULTS – 50TH PERCENTILE (CONTINUED)  Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 3-6 EXHIBIT 3C-2 MARKET SURVEY RESULTS - 70TH PERCENTILE Average % Diff Average % Diff Average % Diff 1 Accountant $52,612.70 -12.8% $61,829.84 -6.7% $72,828.42 -4.8% 51.4% 13.0 2 Accounting Technician $37,630.98 -8.6% $48,464.19 -11.6% $56,544.98 -8.8% 48.4% 11.0 3 Administrative Assistant $36,020.97 5.5% $43,830.14 8.2% $51,352.45 10.6% 46.1% 16.0 4 Airport Manager $63,276.40 -2.2% $78,927.10 -2.0% $97,259.36 -4.7% 53.6% 5.0 5 Animal Control Manager $55,180.11 -3.0% $69,403.89 -3.6% $83,627.67 -4.0% 58.5% 5.0 6 Animal Control Officer $32,487.80 6.1% $41,668.25 3.5% $49,240.46 5.1% 56.0% 7.0 7 Assistant Fire Chief $88,341.92 -16.5% $108,240.25 -14.5% $125,505.10 -11.1% 43.2% 9.0 8 Building Inspector I $48,086.90 -13.6% $58,518.14 -10.9% $68,059.12 -7.8% 41.6% 14.0 9 Building Official Mgr $68,605.27 -19.8% $81,723.51 -15.0% $93,895.10 -10.7% 42.1% 11.0 10 Building Service Worker $38,233.00 -24.7% $48,995.50 -27.1% $57,249.15 -24.5% 51.5% 8.0 11 Bus Driver $32,043.10 2.6% $38,665.70 6.1% $45,288.31 8.6% 38.7% 2.0 12 City Administrator $146,585.80 -19.5% $183,140.42 -19.4% $230,253.39 -24.0% 51.5% 10.0 13 City Clerk $69,425.82 -30.6% $86,787.40 -30.6% $104,148.97 -30.6% 47.1% 11.0 14 City Counselor $109,709.31 -19.1% $148,140.66 -26.7% $182,429.49 -29.2% 53.7% 5.0 15 City Engineer $75,963.87 -1.4% $99,700.34 -6.3% $122,879.15 -9.0% 49.6% 12.0 16 Civil Engineer II $59,979.97 3.1% $75,069.63 3.0% $90,159.29 2.9% 45.4% 7.0 17 Collection System Mgr $64,994.17 -4.9% $83,451.60 -7.6% $104,789.31 -12.1% 54.1% 5.0 18 Communications Oper I $48,001.09 -27.9% $59,773.47 -27.5% $71,545.85 -27.2% 49.7% 5.0 19 Communications Supv $54,706.97 -11.8% $66,153.43 -8.5% $77,599.88 -6.3% 48.0% 5.0 20 Construction Inspector $45,237.49 2.3% $58,671.25 -1.4% $68,039.13 2.0% 47.7% 11.0 21 Customer Service Rep. $35,975.09 -9.0% $44,740.97 -8.5% $53,506.85 -8.1% 43.1% 7.0 22 Deputy Court Clerk I $37,624.10 -8.6% $44,591.53 -3.2% $52,080.41 -0.5% 40.1% 7.0 23 Dir of Finance & ITS $114,414.79 -23.2% $147,495.36 -26.3% $174,160.09 -24.7% 50.0% 10.0 24 Director of Human Res $87,852.02 3.1% $111,052.60 2.0% $131,078.49 3.6% 51.5% 11.0 25 Director of P&PS $96,566.82 -6.4% $120,374.53 -6.1% $145,017.63 -6.5% 51.6% 10.0 26 Director of Parks & Rec $97,446.10 -7.3% $120,629.44 -6.3% $142,940.81 -5.1% 46.1% 12.0 27 Director of Public Works $98,681.11 -8.5% $126,975.40 -11.4% $165,216.80 -19.5% 61.4% 14.0 28 Environmental Health Spe $52,706.25 -13.0% $65,053.15 -11.7% $73,001.08 -5.0% 42.2% 4.0 29 Equip Operator Spec I $35,946.36 5.7% $45,376.05 4.8% $54,080.20 5.4% 53.3% 6.0 30 Evidence Technician $34,986.03 13.3% $42,866.91 15.3% $50,948.01 16.3% 43.3% 5.0 31 Fire Captain $62,700.50 -20.5% $71,502.06 -11.4% $93,655.50 -20.1% 44.0% 8.0 32 Fire Chief $102,155.56 -12.0% $128,196.63 -12.4% $149,072.26 -9.3% 46.6% 10.0 33 Fire Driver Engineer $45,724.96 1.2% $60,042.11 -3.7% $72,556.81 -4.4% 48.6% 7.0 34 Fire Fighter $46,589.10 -10.4% $56,687.46 -7.7% $67,802.40 -7.4% 42.5% 8.0 35 Firefighter Trainee $39,446.49 1.3% $48,346.15 3.3% $55,493.31 7.7% 29.2% 5.0 36 GIS Manager/Temp ITS Mgr $65,594.45 -5.8% $82,287.66 -6.2% $98,980.87 -6.4% 47.8% 8.0 37 GIS Specialist $47,416.75 7.3% $61,799.42 3.2% $75,758.70 1.0% 55.0% 11.0 38 Golf Course Superintend $53,514.71 -14.5% $68,531.00 -16.9% $80,357.45 -14.6% 48.9% 5.0 39 HR Specialist $49,651.44 -7.0% $62,891.29 -8.4% $75,795.45 -8.8% 46.7% 13.0 40 IT Support Tech I $47,852.19 -32.3% $58,238.82 -29.7% $67,106.46 -25.7% 42.6% 8.0 41 Lab Analyst $41,945.85 4.9% $52,785.56 4.3% $63,625.27 3.8% 49.6% 2.0 42 Mechanic $40,733.93 12.7% $52,536.48 9.6% $61,056.91 12.8% 49.7% 8.0 43 Mechanic Supervisor $45,298.45 7.0% $57,350.16 5.7% $66,722.24 8.8% 50.8% 5.0 44 Municipal Court Admin $55,679.88 -18.4% $69,594.52 -18.4% $83,509.17 -18.4% 46.3% 11.0 45 Neighborhood Serv Spec I $38,377.93 -0.8% $48,483.29 -1.9% $59,441.36 -4.0% 46.5% 4.0 46 Neighborhood Serv Superv $50,428.80 1.2% $63,660.38 0.2% $78,715.57 -2.8% 50.7% 3.0 47 Paralegal $41,545.31 1.0% $51,173.81 2.5% $61,211.68 2.8% 45.3% 4.0 48 Parking Division Supv $43,509.61 11.0% $55,178.43 9.6% $66,847.26 8.6% 43.6% 5.0 49 Parking Enforcement Offc $37,396.25 -17.7% $44,935.02 -13.8% $52,473.80 -11.0% 43.0% 4.0 50 Parks Maintenance Worker $34,878.27 -5.9% $43,715.44 -6.1% $51,021.55 -3.4% 47.4% 11.0 # Resp.ID Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg Range Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 3-7 EXHIBIT 3C-2 MARKET SURVEY RESULTS - 70TH PERCENTILE (CONTINUED)  Average % Diff Average % Diff Average % Diff 51 Parks Manager $61,954.85 -0.1% $75,230.74 2.8% $88,804.38 4.4% 45.7% 10.0 52 Parts Technician $30,915.14 11.1% $39,638.73 8.5% $48,362.31 6.9% 42.3% 4.0 53 Plan Reviewer $54,767.62 -2.2% $64,163.83 4.3% $76,449.14 5.0% 42.2% 10.0 54 Planner I $48,918.72 -5.5% $60,585.52 -4.6% $73,337.48 -5.5% 45.0% 12.0 55 Planner Manager $70,227.10 -22.1% $88,166.42 -22.5% $106,105.75 -22.8% 42.0% 7.0 56 Police Chief $110,775.45 -20.0% $132,332.87 -15.5% $148,967.61 -9.2% 39.6% 12.0 57 Police Information Mgr $41,367.46 11.2% $54,805.49 5.4% $67,767.46 2.4% 64.2% 3.0 58 Prop/Housing Inspector I $42,930.57 -2.2% $54,473.80 -3.7% $68,079.11 -7.8% 48.9% 7.0 59 Pumping System Mechanic $38,428.44 18.5% $45,068.86 24.8% $51,709.28 29.2% 39.9% 2.0 60 Recreation Program Spec $39,907.93 -4.7% $50,154.85 -5.2% $60,401.76 -5.6% 48.5% 10.0 61 Sr. Utility Maint Wkr $35,169.86 -1.8% $42,707.22 1.1% $49,257.75 5.0% 37.9% 4.0 62 Street Maint Crew Leader $45,243.44 -7.5% $55,339.12 -5.3% $63,137.12 -0.3% 44.0% 7.0 63 Street Maint Worker $34,833.31 -5.7% $43,845.02 -6.4% $51,016.55 -3.4% 46.8% 8.0 64 Street Supervisor $57,810.63 -17.3%$72,006.10 -17.0% $88,328.00 -19.2% 43.2% 9.0 65 Systems Analyst $54,907.89 -7.3% $69,919.61 -9.2% $84,697.52 -10.1% 50.0% 7.0 66 Transit Division Manager $121,581.41 -65.1% $158,500.47 -68.8% $195,419.53 -71.2% 61.4% 2.0 67 Utilities Electrician $45,558.48 1.6% $59,494.51 -2.8% $73,430.54 -5.6% 64.2% 4.0 68 Utility Crew Supervisor $52,334.46 -7.4% $61,431.18 -1.1% $77,728.61 -6.4% 47.2% 6.0 69 Veterinarian Assistant $32,378.93 1.6% $40,476.22 1.6% $48,573.51 1.6% 50.0% 1.0 70 Wastewater Supervisor $57,036.05 -16.0% $69,021.42 -12.8% $81,592.10 -11.3% 41.4% 8.0 71 WWTP Manager $60,998.00 1.4% $74,899.81 3.2% $88,801.63 4.4% 53.3% 8.0 72 WWTP Operator II $36,021.49 15.3% $49,305.77 6.2% $57,253.76 9.5% 49.3% 9.0 Overall Average -7.7% -7.3% -6.5% 47.7% 7.6 Outliers Removed*-7.4% -7.3% -6.7% # Resp.ID Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg Range Chapter 3 – Market Summary Compensation Study for the City of Jefferson, MO   Evergreen Solutions, LLC Page 3-8 Private Sector The private sector is almost always going to show significantly more variation in terms of pay in a given market. Top employers in the private sector have the ability to hire – and fire – employees much more rapidly than their public-sector comparators, so there is less risk in hiring employees at elevated salaries. If an employee is not “profitable” to a private sector firm, they have the ability to lay that employee off and recoup salary savings immediately, while the public sector will be much slower to result to layoffs. While the cities can typically compete with the lowest paying private companies in the market, higher paying private-sector peers quickly outpace the rates that they are able to pay for talent. 3.2 SALARY SURVEY CONCLUSION The standing of individual classifications pay range relative to the market should not be considered a definitive assessment of actual employee salaries being similarly above or below the market; however, such differentials can, in part, explain symptomatic issues with recruitment and retention of employees. The main summary points of the market study are as follows:  The City is approximately 0.2 percent below the market minimum in the 50th percentile and 7.4 percent below the market minimum in the 70th percentile.  The City is 0.7 above the market midpoint in the 50th percentile and 7.3 percent below the market midpoint in the 70th percentile.  The City is approximately 1.3 percent above the market maximum in the 50th percentile and 6.7 percent below the market maximum in the 70th percentile.  The City’s pay range spread is 50 percent, while its peers’ pay range spread is only 47 percent. That means that the City’s salary scale is wider than its peers. As a result, even though the City is below the average compared to the market at the minimum, because it has a wider spread it catches up to its peers at the higher end of the spectrum and slightly surpasses the market at the maximum, when being compared to the 50th percentile. The results of the market summary chapter are pivotal in the formulation of recommendations by Evergreen Solutions. By establishing the City’s market position relative to its peers, Evergreen is better able to propose recommendations that enable the City to occupy its desired competitive position. Evergreen Solutions, LLC Page 4-1 After reviewing the information provided in the preceding sections of this report, Evergreen developed recommendations to improve the City’s current compensation system. The recommendations and findings that led to each are discussed in detail in this section. The recommendations are organized into two sections: compensation and administration of the system. 4.1 COMPENSATION RECOMMENDATIONS The compensation analysis consisted of two parts: an external market assessment and an internal equity assessment. During the external market assessment, the City’s compensation for selected benchmark classifications was compared to average compensation offered in the market the City competes for employees in. The external assessment consisted of comparing the City against its peer organizations within its market, and revealed that the City is currently slightly behind the market at the minimum of the pay range, and slightly ahead of the market at the maximum of the pay range. During the internal equity assessment, consideration of the relationships between and the type of work being performed by the City’s employees in their classifications was reviewed and analyzed. FINDING The City currently maintains an organized and defined overall pay plan. However, Evergreen recommended additional pay grades to be created on the new pay plan. RECOMMENDATION 1: Adjust the pay plan to reflect the 50th or 70th percentile of the market. For the City to maintain alignment with the market, it will be necessary to shift ranges to adjust for the annual market movement found in the region. The City will find that if no adjustment is made to its ranges, it will quickly lose ground in the labor market. Two separate pay plans were created to reflect the market's 50th and 70th percentile. The City can approximate what market position it wants to be. If the City chooses to go with the 70th percentile, it must maintain strong adjustments each year to ensure it does not fall behind market. EVERGREEN SOLUTIONS, LLC Chapter 4 - Recommendations Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-2 EXHIBIT 4-1 50TH PERCENTILE - PROPOSED PAY PLAN Grade Minimum Midpoint Maximum Range Spread Midpoint Progression 101 31,200.00$     39,000.00$     46,800.00$     50.0% ‐ 102 32,760.00$     40,950.00$     49,140.00$     50.0% 5.0% 103 34,398.00$     42,997.50$     51,597.00$     50.0% 5.0% 104 36,117.90$     45,147.38$     54,176.85$     50.0% 5.0% 105 37,923.80$     47,404.74$     56,885.69$     50.0% 5.0% 106 39,819.98$     49,774.98$     59,729.98$     50.0% 5.0% 107 41,810.98$     52,263.73$     62,716.48$     50.0% 5.0% 108 43,901.53$     54,876.92$     65,852.30$     50.0% 5.0% 109 46,096.61$     57,620.76$     69,144.91$     50.0% 5.0% 110 48,401.44$     60,501.80$     72,602.16$     50.0% 5.0% 111 50,821.51$     63,526.89$     76,232.27$     50.0% 5.0% 112 53,362.59$     66,703.23$     80,043.88$     50.0% 5.0% 113 56,030.72$     70,038.40$     84,046.08$     50.0% 5.0% 114 58,832.25$     73,540.32$     88,248.38$     50.0% 5.0% 115 64,715.48$     80,894.35$     97,073.22$     50.0% 10.0% 116 71,187.03$     88,983.78$     106,780.54$  50.0% 10.0% 117 78,305.73$     97,882.16$     117,458.59$  50.0% 10.0% 118 86,136.30$     107,670.38$  129,204.45$  50.0% 10.0% 119 94,749.93$     118,437.42$  142,124.90$  50.0% 10.0% 120 104,224.93$  130,281.16$  156,337.39$  50.0% 10.0% 121 114,647.42$  143,309.27$  171,971.13$  50.0% 10.0% 122 126,112.16$  157,640.20$  189,168.24$  50.0% 10.0% 123 138,723.38$  173,404.22$  208,085.06$  50.0% 10.0% 124 152,595.71$  190,744.64$  228,893.57$  50.0% 10.0% 125 167,855.28$  209,819.11$  251,782.93$  50.0% 10.0% F1 41,975.85$     52,469.80$     62,963.75$     50.0% ‐ F2 44,074.64$     55,093.29$     66,111.94$     50.0% 5.0% F3 48,592.28$     60,740.34$     72,888.40$     50.0% 10.2% F4 53,572.98$     66,966.23$     80,359.48$     50.0% 10.3% F5 64,970.64$     81,213.30$     97,455.96$     50.0% 21.3% F6 78,614.47$     98,268.08$     117,921.69$  50.0% 21.0% F7 95,123.50$     118,904.38$  142,685.26$  50.0% 21.0% Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-3 EXHIBIT 4-2 70TH PERCENTILE - PROPOSED PAY PLAN Grade Minimum Midpoint Maximum Range Spread Midpoint Progression 101 33,072.00$     41,340.00$     49,608.00$     50.0% ‐ 102 34,725.60$     43,407.00$     52,088.40$     50.0% 5.0% 103 36,461.88$     45,577.35$     54,692.82$     50.0% 5.0% 104 38,284.97$     47,856.22$     57,427.46$     50.0% 5.0% 105 40,199.22$     50,249.03$     60,298.83$     50.0% 5.0% 106 42,209.18$     52,761.48$     63,313.78$     50.0% 5.0% 107 44,319.64$     55,399.55$     66,479.46$     50.0% 5.0% 108 46,535.63$     58,169.53$     69,803.44$     50.0% 5.0% 109 48,862.41$     61,078.01$     73,293.61$     50.0% 5.0% 110 51,305.53$     64,131.91$     76,958.29$     50.0% 5.0% 111 53,870.80$     67,338.50$     80,806.20$     50.0% 5.0% 112 56,564.34$     70,705.43$     84,846.51$     50.0% 5.0% 113 59,392.56$     74,240.70$     89,088.84$     50.0% 5.0% 114 62,362.19$     77,952.74$     93,543.28$     50.0% 5.0% 115 68,598.41$     85,748.01$     102,897.61$  50.0% 10.0% 116 75,458.25$     94,322.81$     113,187.37$  50.0% 10.0% 117 83,004.07$     103,755.09$  124,506.11$  50.0% 10.0% 118 91,304.48$     114,130.60$  136,956.72$  50.0% 10.0% 119 100,434.93$  125,543.66$  150,652.39$  50.0% 10.0% 120 110,478.42$  138,098.03$  165,717.63$  50.0% 10.0% 121 121,526.26$  151,907.83$  182,289.39$  50.0% 10.0% 122 133,678.89$  167,098.61$  200,518.33$  50.0% 10.0% 123 147,046.78$  183,808.47$  220,570.17$  50.0% 10.0% 124 161,751.46$  202,189.32$  242,627.18$  50.0% 10.0% 125 177,926.60$  222,408.25$  266,889.90$  50.0% 10.0% F1 43,974.70$     54,968.36$     65,962.03$     50.0% ‐ F2 46,173.44$     57,716.78$     69,260.13$     50.0% 5.0% F3 50,906.20$     63,632.73$     76,359.27$     50.0% 10.2% F4 56,124.08$     70,155.10$     84,186.12$     50.0% 10.3% F5 68,064.48$     85,080.60$     102,096.72$  50.0% 21.3% F6 82,358.01$     102,947.51$  123,537.01$  50.0% 21.0% F7 99,653.19$     124,566.49$  149,479.79$  50.0% 21.0% Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-4 Implementation of the new compensation structure requires two steps. First, all positions were assigned to an appropriate pay grade within the plan. As the City was in a appropriate market position overall, major changes were not needed. However, some positions were found to be further behind the market than others. Those positions were reassigned to an appropriate grade in the updated pay plan, based on the market results and internal equity in the City. Assigning pay grades to classifications requires a balance of internal equity and desired market position, and recruitment and retention concerns also played a role in the process. Thus, the market results discussed in Chapter 3 were not the sole criteria for the proposed pay ranges. RECOMMENDATION 2: Evergreen recommends the City adopt a methodology to transition employee salaries into the proposed pay plan that aligns with its established compensation philosophy and meets the available financial resources of the organization. The second step of implementing the proposed structure is then to transition employee salaries into their new recommended pay ranges. The City has chosen to move forward with the Hybrid Parity option. Hybrid Parity This option consists of placing employees into their proposed pay ranges based on how long employees have been with the City. The parity effectively divides the pay range into 30 equal segments, where each segment represents a year of class time. Additionally, employees are given partial credit for anytime they have spent at the City outside of their current classification at half credit. For example, an employee who has been in their classification for 5 years, but had 25 years with the City over all, would be placed at the midpoint of the range, due to their receiving 5 years of class time at straight credit, and the remaining 20 years of experience at half credit, for a total of 15 years of credit. If an employee’s current salary is higher than their hybrid parity projected salary, the employee would maintain his or her current salary, as no salaries are decreased as part of this adjustment. This methodology seeks to re-align employee salaries based on years in classification, while also giving credit for additional experience, and can space out compressed employee salaries along the range based on this factor. However, this methodology does not account for experience employees may have outside of the City. If the City goes with the pay plan at the market's 50th percentile, the estimated total cost for this adjustment would be $603,306.75 and would affect 150 General employees. For employees within the Fire Department, this option's total cost would be $391,164.42 and affect 74 employees. If the City goes with the pay plan at the market's 70th percentile, the estimated total cost for this adjustment would be $1,182,038.94 and would affect 206 General employees. For employees within the Fire Department, this option's total cost would be $592,792.12 and affect 74 employees. Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-5 FINDING At the request of the City, Evergreen conducted a review of job descriptions for the position of Administrative Assistant. The City shared updated job descriptions for this classification for various departments. Employees and Department Heads provided feedback on the descriptions, and Evergreen reviewed them to determine if there were any discrepancies in the duties or responsibilities of the position. RECOMMENDATION 3: Adjust job titles of Administrative Assistants to better reflect the work performed. Upon review of the job descriptions, Evergreen determined some employees are working at a higher level than others. Evergreen recommends to update titles of Administrative Assistants as appropriate based on the review. As a result of this review, Evergreen is recommending an upgrade to the classification of the Administrative Assistant positions in the Administration and Parks and Recreation departments. These two positions have taken on additional responsibilities and are asked to work at a higher level than the Administrative Assistants in other departments according to the updated job descriptions provided for review. These positions are recommended for a new title of Administrative Assistant, Senior. 4.2 COMPENSATION AND CLASSIFICATION SYSTEM ADMINISTRATION Any organization’s compensation and classification system will need periodic maintenance. The recommendations provided in this chapter were developed based on conditions at the time the study was conducted. Without proper upkeep of the system, the potential for recruitment and retention issues may increase as the compensation and classification system becomes dated and less competitive. RECOMMENDATION 4: Conduct small-scale salary surveys as needed to assess the market competitiveness of hard-to-fill classifications and/or classifications with retention issues and adjust pay grade assignments if necessary. While it is unlikely that the pay plan will need to be adjusted for several years, a small number of classifications’ pay grades may need to be reassigned more frequently. If one or more classifications are exhibiting high turnover or are having difficulty with recruitment, the City should collect salary range data from peer organizations to determine whether an adjustment is needed for the pay grade of the classification(s). RECOMMENDATION 5: Conduct a comprehensive classification and compensation study every three to five years. While small-scale salary surveys can improve the market position of specific classifications, it is recommended that a full classification and compensation study be conducted every three to five years to preserve both internal and external equity for the City. Changes to classification and compensation do occur, and while the increments of change may seem minor, they can compound over time. A failure to react to these changes quickly can place the City in a poor position for recruiting and retaining quality employees. Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-6 While the previous two recommendations intend to maintain the competitiveness over time of the classification and compensation structure, it is also necessary to establish procedures for determining equitable pay practices for individual employees. RECOMMENDATION 6: Revise policies and practices for moving employees’ salaries through the pay plan, including procedures for determining salaries of newly hired employees and employees who have been promoted, demoted, or transferred to a different classification. The method of moving salaries through the pay plan and setting new salaries for new hires, promotions, demotions, and transfers depends largely on an organization’s compensation philosophy. However, it is important for the City to have established guidelines for each of these situations, and that they are followed consistently for all employees. Common practices for progressing and establishing employee salaries are outlined below. Salary Progression As outlined above, Evergreen recommends City implement the new pay plan which would involve a one-time salary adjustment for employees to ensure they are placed properly in their salary range. While this major adjustment should be performed when the City has the financial resources to do so, the City should continue to adjust salaries annually when financially feasible. Based on the feedback from employees and City leadership, Evergreen recommends that the basis of salary adjustment in the future be done at three distinct levels.  Structural: Adjustment to the ranges should be done annually and with the aim of adjusting for the changes in cost of living. Evergreen recommends the City tie the annual compensation structure movement to the local change in the Consumer-Price- Index (CPI). This annual adjustment will ensure the City’s pay ranges do not rapidly fall out of line with that of its peers; however, when conducting the small-scale surveys referenced above, the City should also collect pay plan movement and anticipated movement from its peers to gauge if market movement is keeping pace with CPI movement.  Classification: As a result of the market surveys, the City may identify classifications or job families that are experiencing considerable market movement and as a result, reassignment of the pay grades should be considered when this occurs. Alternatively, if the City identifies classifications that have become hard to recruit and retain, pay grade reassignment should also be considered to ensure the City is competitive for both recruiting new talent and retaining existing employees.  Individual: To tie into the adjustment of the structure, Evergreen recommends the City adjust employee salaries annually for Cost-of-living adjustment (COLA). This adjustment would be done for all employees who receive a satisfactory performance evaluation, and the percentage adjustment would need to be 1.0-2.0 percent more than the movement of the compensation structure in any given years, to allow for employee progression into the range. Moreover, based on the feedback from employees and the City’s desire to recruit and retain a high-quality workforce, Evergreen recommends the City grant additional adjustment to employees who receive above average performance evaluations. The City should exercise a differentiated Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-7 percentage for high performers that met the financial constraints of the budget while still providing a meaningful incentive for high performance. New Hires A new employee’s starting salary largely depends on the amount of education and experience the employee possesses beyond the minimum requirements for the job. Typically, an employee holding only the minimum education and experience requirements for a classification is hired at or near the classification’s pay grade minimum. An upper limit to the percentage above minimum that can be offered to a new employee with only the minimum requirements should be established, where approval is needed to offer a starting salary that is a higher percentage above minimum. Another threshold should be established as the maximum starting salary possible without approval for new employees with considerable experience and/or education above the requirements for the position. It is common for the midpoint to be used as the maximum starting salary for most classifications. Once the City has performed the initial implementation adjustment for current employee salaries, new employee starting salaries should take into consideration internal equity, meaning that new hires should be offered comparable salaries to existing employees in the classification with similar levels of education and experience. RECOMMENDATION 7: Evergreen recommends the City adopt a hiring grid that aligns with its selected implementation methodology. A hiring grid should be adopted that provides guidance where new employee salaries should be set. The adoption of a new hiring grid should be done after implementation to ensure alignment of salary placement between current employees and new hires, and to prevent new compression issues from arising both within classifications and departments, as well as throughout the City as a whole. A policy that determines the maximum hiring rate available to employees is important to ensure consistency and maintain internal equity. Evergreen has created three different approaches for crediting employees for any additional experience they have above and beyond the minimum requirements. This additional credit applied to employees would only apply to any experience above and beyond the minimum qualifications of the position into which an employee was being hired. For example, in the tables below an employee with five years of experience would be credited for two years of additional experience if the job he/she was applying for required three years of experience in the minimum qualifications. Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-8 EXHIBIT 4-3 HIRING RATE ALTERNATIVE 1 EXHIBIT 4-4 HIRING RATE ALTERNATIVE 2 Additional  Years of  Experience Percentile  Upper  Boundary 1 3rd Percentile 2 6th Percentile 3 10th Percentile 4 13th Percentile 5 16th Percentile 6 20th Percentile 7 23th Percentile 8 26th Percentile 9 30th Percentile 10 33rd Percentile 11 36th Percentile 12 40th Percentile 13 43rd Percentile 14 46th Percentile 15 50th Percentile Additional  Years of  Experience Hiring Zone Zone  Percentile 1‐3 1 1% ‐ 10% 3‐6 2 11% ‐ 20% 6‐9 3 21% ‐ 30% 9‐12 4 31% ‐ 40% 12‐15 5 41% ‐ 50% Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-9 EXHIBIT 4-5 HIRING RATE ALTERNATIVE 3 The three different options presented give the City three different choices on how flexible or structured they would like the hiring process to be. The first option provides relatively narrow hiring bands for crediting previous experience – only five percent of flexibility is available per year of experience. The second option provides more flexibility by grouping experience together into zones. While an employee in option 1 with seven years of experience would be limited to a maximum salary of the 30th percentile of his/her grade, that would increase to the 40th percentile in option 2. Option 3 takes some of the aspects of both options and blends them together – hiring zones with minimum salaries like option 2, while having a different range of outcomes for each additional year of experience like option 1. The City’s Human Resources and City Management teams should decide which alternative they believe best meet the City’s needs going forward before selecting an alternative to implement. Once implemented, the approach should guide the City’s hiring process so that consistency can be maintained over time. Promotions/Demotions When an employee is promoted to a new classification, it is important to have guidelines for calculating the employee’s new salary that rewards the employee for his or her new responsibilities, moves the salary into the new pay grade, and ensures internal equity in the new classification. It is common for organizations to establish a minimum percentage salary increase that depends on the increase in pay grade because of the promotion. Regardless of Additional  Years of  Experience Hiring  Percentile 10% ‐ 10% 20% ‐ 13% 30% ‐ 16% 40% ‐ 19% 50% ‐ 21% 64% ‐ 24% 77% ‐ 27% 8 10% ‐ 30% 9 13% ‐ 33% 10 16% ‐ 36% 11 19% ‐ 39% 12 21% ‐ 41% 13 24% ‐ 44% 14 27% ‐ 47% 15 30% ‐ 50% Chapter 4 - Recommendations Compensation Study for the City of Jefferson, MO Evergreen Solutions, LLC Page 4-10 the minimum percent increase, the employee’s new salary should be within the new pay grade’s range, and internal equity of salaries within the classification should be preserved. Transfers An employee transfer occurs when an employee is reassigned to a classification at the same pay grade as his or her current classification or when an employee’s classification stays the same, but his or her department changes. In either of these cases, it is likely that no adjustment is necessary to the employee’s salary. The only situation in which a salary adjustment would be needed for a transferred employee would be if his or her current salary is not aligned with the salaries of employees in the new classification or department. If that occurs, it may be necessary to adjust the salary of the employee or the incumbents of the classification to ensure salary equity within the new classification. RECOMMENDATION 8: Evergreen recommends the City update its policy regarding promotions/demotions and transfers to align with its new compensation structure. Evergreen recommends the City Implement a minimum increase of five percent per grade of base salary for employees receiving promotion. However, the employee’s salary should always be increased to at least the minimum of the new salary range. In the case of demotions, Evergreen recommends a minimum salary decrease of five percent per grade, except in cases where this percent decrease would reduce the employee’s salary below the new range minimum. If the employee’s salary exceeds the new range maximum after the pay decrease, the employee should be capped from receiving any salary adjustments until the pay moves upward to allow for increases. 4.3 SUMMARY The City should be commended for its desire and commitment to provide competitive and fair compensation for its employees. The recommendations in this report establish a new competitive pay plan, externally and internally equitable pay grade assignments, and system administration practices that will provide the City with a responsive compensation and classification system for years to come. While the upkeep of this recommended system will require concrete effort, the City will find that having a competitive compensation and classification system that encourages strong recruitment and employee retention is worth this commitment. APPENDIX POSITION GRADE ASSIGNMENTS   Evergreen Solutions, LLC Page A-1 APPENDIX POSITION GRADE ASSIGNMENTS   Classification Recommended Title Proposed  Grade  Proposed   Minimum   Proposed   Midpoint   Proposed   Maximum  Accountant  Accountant  110  $48,401.44   $60,501.80   $72,602.16   Senior Accountant  Accountant, Senior  112  $53,362.59   $66,703.23   $80,043.88   Sr. Accounting Tech Supv  Accounting Tech Supv  110  $48,401.44   $60,501.80   $72,602.16   Senior Accounting Tech  Accounting Tech, Senior  106  $39,819.98  $49,774.98   $59,729.98   Accounting Technician  Accounting Technician  105  $37,923.80   $47,404.74   $56,885.69   Administrative Assistant  Administrative Assistant  106  $39,819.98   $49,774.98   $59,729.98   Administrative Supvr  Administrative Assistant, Senior  108  $43,901.53   $54,876.92   $65,852.30   Administrative Tech  Administrative Tech  104  $36,117.90   $45,147.38   $54,176.85   Airport Manager  Airport Manager  115  $64,715.48   $80,894.35   $97,073.22   Senior Airport Maint Wkr  Airport Senior Maint Wkr  104  $36,117.90   $45,147.38   $54,176.85   Animal Control Manager  Animal Control Manager  113  $56,030.72   $70,038.40   $84,046.08   Animal Control Officer  Animal Control Officer  104  $36,117.90   $45,147.38   $54,176.85   Sr. Animal Control Offcr  Animal Control Senior Offcr  106  $39,819.98   $49,774.98   $59,729.98   Assistant Fire Chief  Assistant Fire Chief  F6  $78,614.47   $98,268.08   $117,921.69   Assoc City Attorney  Assoc City Attorney  115  $64,715.48   $80,894.35   $97,073.22   Asst Parking Supervisor  Asst Parking Supervisor  106  $39,819.98   $49,774.98   $59,729.98   Building Inspector I  Building Inspector I  109  $46,096.61   $57,620.76   $69,144.91   Building Inspector II  Building Inspector II  111  $50,821.51   $63,526.89   $76,232.27   Building Official Mgr  Building Official Mgr  115  $64,715.48   $80,894.35   $97,073.22   Building Service Worker  Building Service Worker  101  $31,200.00   $39,000.00   $46,800.00   Bus Driver  Bus Driver  104  $36,117.90   $45,147.38   $54,176.85   Bus Driver Comm Operator  Bus Driver Comm Operator  105  $37,923.80   $47,404.74   $56,885.69   Bus Driver/Trainer  Bus Driver/Trainer  104  $36,117.90   $45,147.38   $54,176.85   Central Garage Manager  Central Garage Manager  113  $56,030.72   $70,038.40   $84,046.08   Chief Accountant  Chief Accountant  115  $64,715.48   $80,894.35   $97,073.22   City Administrator  City Administrator  122  $126,112.16   $157,640.20   $189,168.24   City Clerk  City Clerk  112  $53,362.59   $66,703.23   $80,043.88   City Counselor  City Counselor  119  $94,749.93   $118,437.42   $142,124.90   City Engineer  City Engineer  117  $78,305.73   $97,882.16   $117,458.59   Civil Engineer I  Civil Engineer I  113  $56,030.72   $70,038.40   $84,046.08   Civil Engineer II  Civil Engineer II  115  $64,715.48   $80,894.35   $97,073.22   Collections System Manager  Collections System Manager  115  $64,715.48   $80,894.35   $97,073.22   Communications Oper I  Communications Oper I  106  $39,819.98   $49,774.98   $59,729.98   Communications Oper II  Communications Oper II  107  $41,810.98   $52,263.73   $62,716.48   Communications Supv  Communications Supv  112  $53,362.59   $66,703.23   $80,043.88   Construction Inspector  Construction Inspector  110  $48,401.44   $60,501.80   $72,602.16   Controls/Instrument Tech  Controls/Instrument Tech  109  $46,096.61   $57,620.76   $69,144.91   Cultural Arts Specialist  Cultural Arts Specialist  106  $39,819.98   $49,774.98   $59,729.98   Customer Service Rep  Customer Service Rep  103  $34,398.00   $42,997.50   $51,597.00   Deputy Court Clerk I  Deputy Court Clerk  105  $37,923.80   $47,404.74   $56,885.69   ‐  Deputy Court Clerk, Senior  106  $39,819.98   $49,774.98   $59,729.98   Director of Finance & IT  Director of Finance & IT  119  $94,749.93   $118,437.42   $142,124.90   Director of Human Res  Director of Human Res  119  $94,749.93   $118,437.42   $142,124.90   Director of P&PS  Director of P&PS  119  $94,749.93   $118,437.42  $142,124.90   Director of Parks & Rec  Director of Parks & Rec  119  $94,749.93   $118,437.42   $142,124.90   Director of Public Works  Director of Public Works  119  $94,749.93   $118,437.42   $142,124.90   Div Chief of Prevention  Div Chief of Prevention  F5  $64,970.64  $81,213.30   $97,455.96   Div Chief of Training  Div Chief of Training  F5  $64,970.64   $81,213.30   $97,455.96   Engineering Designer  Engineering Designer  110  $48,401.44   $60,501.80   $72,602.16   Engineering Insp. Supv.  Engineering Insp. Supv.  112  $53,362.59   $66,703.23   $80,043.88   Engineering Survey Tech  Engineering Survey Tech  108  $43,901.53   $54,876.92   $65,852.30   Environ Health Svcs Mgr  Environ Health Svcs Mgr  113  $56,030.72   $70,038.40   $84,046.08   Appendix: Position Grade Assignments Compensation Study for the City of Jefferson, MO    Evergreen Solutions, LLC Page A-2 APPENDIX (CONTINUED) POSITION GRADE ASSIGNMENTS   Classification Recommended Title Proposed  Grade  Proposed   Minimum   Proposed   Midpoint   Proposed   Maximum  ‐  Environmental Health Spe I  109  $46,096.61   $57,620.76   $69,144.91   Environmental Health Spe  Environmental Health Spe II  111  $50,821.51   $63,526.89   $76,232.27   Equip Operator Spec I  Equip Operator Spec I  106  $39,819.98   $49,774.98   $59,729.98   Equip Operator Spec II  Equip Operator Spec II  107  $41,810.98   $52,263.73   $62,716.48   Evidence Technician  Evidence Technician  107  $41,810.98   $52,263.73   $62,716.48   Fire Captain  Fire Captain  F4  $53,572.98   $66,966.23   $80,359.48   Fire Chief  Fire Chief  119  $94,749.93   $118,437.42   $142,124.90   Fire Driver Engineer  Fire Driver Engineer  F3  $48,592.28   $60,740.34   $72,888.40   Fire Fighter  Fire Fighter  F2  $44,074.64   $55,093.29   $66,111.94   Firefighter Trainee  Firefighter Trainee  F1  $41,975.85   $52,469.80   $62,963.75   GIS Manager  GIS Manager  115  $64,715.48   $80,894.35   $97,073.22   GIS Specialist  GIS Specialist  112  $53,362.59   $66,703.23   $80,043.88   Golf Course Superintend  Golf Course Superintend  110  $48,401.44   $60,501.80   $72,602.16   HR Specialist  HR Specialist  110  $48,401.44   $60,501.80   $72,602.16   ‐  HR Specialist, Senior  112  $53,362.59   $66,703.23   $80,043.88   IT Support Specialist  IT Support Specialist  110  $48,401.44   $60,501.80   $72,602.16   IT Support Tech I  IT Support Tech  106  $39,819.98   $49,774.98   $59,729.98   IT Support Tech II  IT Support Tech, Senior  108  $43,901.53   $54,876.92   $65,852.30   ITS Manager  ITS Manager  115  $64,715.48   $80,894.35   $97,073.22   Lab Analyst  Lab Analyst  109  $46,096.61   $57,620.76   $69,144.91   Lab Pretreatment Supv  Lab Pretreatment Supv  111  $50,821.51   $63,526.89   $76,232.27   Management Analyst  Management Analyst  109  $46,096.61   $57,620.76   $69,144.91   Sr. Management Analyst  Management Analyst, Senior  110  $48,401.44   $60,501.80   $72,602.16   Mechanic  Mechanic  110  $48,401.44   $60,501.80   $72,602.16   Mechanic Supervisor  Mechanic Supervisor  111  $50,821.51   $63,526.89   $76,232.27   Municipal Court Admin  Municipal Court Admin  111  $50,821.51   $63,526.89   $76,232.27   Neighborhood Serv Spec I  Neighborhood Serv Spec  106  $39,819.98   $49,774.98   $59,729.98   Neighborhood Serv Spc II  Neighborhood Serv Spec, Senior  108  $43,901.53   $54,876.92   $65,852.30   Neighborhood Serv Superv  Neighborhood Serv Superv  112  $53,362.59   $66,703.23   $80,043.88   Network Administrator  Network Administrator  112  $53,362.59   $66,703.23   $80,043.88   Operations Division Dir  Operations Division Dir  117  $78,305.73   $97,882.16   $117,458.59   P&R Assistant Director  P&R Assistant Director  115  $64,715.48   $80,894.35   $97,073.22   Paralegal  Paralegal  108  $43,901.53   $54,876.92   $65,852.30   ‐  Paralegal, Senior  109  $46,096.61   $57,620.76   $69,144.91   Park Resources Supv  Park Resources Supervisor  111  $50,821.51   $63,526.89   $76,232.27   Parking Division Supv  Parking Division Supv  111  $50,821.51   $63,526.89   $76,232.27   Parking Enforcement Offc  Parking Enforcement Officer  102  $32,760.00   $40,950.00   $49,140.00   Parking Maint Worker  Parking Maint Worker  102  $32,760.00   $40,950.00   $49,140.00   Sr. Parking Enforce Ofcr  Parking Senior Enforce Ofcr  103  $34,398.00   $42,997.50   $51,597.00   Sr. Parking Maint Worker  Parking Senior Maint Worker  104  $36,117.90   $45,147.38   $54,176.85   Parks Maint Crew Leader  Parks Maint Crew Leader  108  $43,901.53   $54,876.92   $65,852.30   Parks Maintenance Worker  Parks Maintenance Worker  103  $34,398.00   $42,997.50   $51,597.00   Parks Manager  Parks Manager  115  $64,715.48   $80,894.35   $97,073.22   Sr.Parks Maintenance Wkr  Parks Senior Maint Worker  104  $36,117.90   $45,147.38   $54,176.85   Parts Technician  Parts Technician  104  $36,117.90   $45,147.38   $54,176.85   Plan Reviewer  Plan Reviewer  113  $56,030.72   $70,038.40   $84,046.08   Planner I  Planner  111  $50,821.51   $63,526.89   $76,232.27   Planner II  Planner, Senior  112  $53,362.59   $66,703.23   $80,043.88   Planner Manager  Planner Manager  115  $64,715.48   $80,894.35   $97,073.22   Police Chief  Police Chief  119  $94,749.93   $118,437.42   $142,124.90   Police Information Clerk  Police Information Clerk  104  $36,117.90   $45,147.38   $54,176.85   ‐  Police Information Clerk, Senior  106  $39,819.98   $49,774.98  $59,729.98   Appendix: Position Grade Assignments Compensation Study for the City of Jefferson, MO    Evergreen Solutions, LLC Page A-3 APPENDIX (CONTINUED) POSITION GRADE ASSIGNMENTS   Classification Recommended Title Proposed  Grade  Proposed   Minimum   Proposed   Midpoint   Proposed   Maximum  Police Information Mgr  Police Information Mgr  110  $48,401.44   $60,501.80   $72,602.16   Police Maintenance Wkr  Police Maintenance Worker  103  $34,398.00   $42,997.50   $51,597.00   Community Relations Mgr  Program Manager  110  $48,401.44   $60,501.80   $72,602.16   Program Manager  Program Manager  110  $48,401.44   $60,501.80   $72,602.16   ‐  Program Manager, Senior  111  $50,821.51   $63,526.89   $76,232.27   Prop/Housing Inspector I  Property & Housing Inspector I  109  $46,096.61   $57,620.76   $69,144.91   Prop & Housing Insp II  Property & Housing Inspector II  111  $50,821.51   $63,526.89   $76,232.27   Property & Housing Supv  Property & Housing Supv  112  $53,362.59   $66,703.23   $80,043.88   Pumping System Mechanic  Pumping System Mechanic  110  $48,401.44   $60,501.80   $72,602.16   Purchasing Agent  Purchasing Agent  113  $56,030.72   $70,038.40   $84,046.08   Purchasing Technician  Purchasing Technician  105  $37,923.80   $47,404.74   $56,885.69   ‐  Purchasing Technician, Senior  106  $39,819.98   $49,774.98   $59,729.98   Rec Program Specialist  Recreation Program Specialist  106  $39,819.98   $49,774.98   $59,729.98   Registered Land Surveyor  Registered Land Surveyor  112  $53,362.59   $66,703.23   $80,043.88   Street Maint Crew Leader  Street Maint Crew Leader  108  $43,901.53   $54,876.92   $65,852.30   Street Maint Wkr Trainee  Street Maint Wkr Trainee  102  $32,760.00   $40,950.00   $49,140.00   Street Maint Worker  Street Maintenance Worker  103  $34,398.00   $42,997.50   $51,597.00   Street Manager  Street Manager  115  $64,715.48   $80,894.35   $97,073.22   Sr. Street Maint Worker  Street Senior Maint Worker  104  $36,117.90   $45,147.38   $54,176.85   Street Supervisor  Street Supervisor  112  $53,362.59   $66,703.23   $80,043.88   Systems Analyst  Systems Analyst  112  $53,362.59   $66,703.23   $80,043.88   ‐  Traffic Signal Tech I 109  $46,096.61   $57,620.76   $69,144.91   Traffic Signal Tech II  Traffic Signal Tech II  110  $48,401.44   $60,501.80   $72,602.16   Transit Division Manager  Transit Division Manager  115  $64,715.48   $80,894.35   $97,073.22   Transit Operations Asst  Transit Operations Asst  106  $39,819.98   $49,774.98   $59,729.98   Transit Operations Supvr  Transit Operations Supvr  111  $50,821.51   $63,526.89   $76,232.27   Utilities Electrician  Utilities Electrician  110  $48,401.44   $60,501.80   $72,602.16   Utility Crew Supervisor  Utility Crew Supervisor  111  $50,821.51   $63,526.89   $76,232.27   Utility Maint Crew Ldr  Utility Maint Crew Ldr  108  $43,901.53   $54,876.92   $65,852.30   Utility Maint Worker  Utility Maint Worker  103  $34,398.00   $42,997.50   $51,597.00   Sr. Utility Maint Wkr  Utility Senior Maint Worker  104  $36,117.90   $45,147.38   $54,176.85   Veterinarian  Veterinarian  115  $64,715.48   $80,894.35   $97,073.22   Veterinarian Assistant  Veterinarian Assistant  103  $34,398.00   $42,997.50   $51,597.00   Wastewater Division Dir  Wastewater Division Dir  117  $78,305.73   $97,882.16   $117,458.59   Wastewater Supervisor  Wastewater Supervisor  112  $53,362.59   $66,703.23   $80,043.88   WW Environmental Spec  WW Environmental Spec  109  $46,096.61   $57,620.76   $69,144.91   WW Maint Supervisor  WW Maint Supervisor  111  $50,821.51   $63,526.89   $76,232.27   WWTP Manager  WWTP Manager  115  $64,715.48   $80,894.35   $97,073.22   WWTP Operator I  WWTP Operator I  106  $39,819.98   $49,774.98   $59,729.98   WWTP Operator II  WWTP Operator II  108  $43,901.53   $54,876.92   $65,852.30     CITY COUNCIL “PRE-MEETING” WORK SESSION, JANUARY 3, 2023 CALL TO ORDER Mayor Carrie Tergin called the January 3, 2023 City Council “Pre-Meeting” to order at 5:45 P.M. to review the agenda. ATTENDANCE The following Councilmembers were present when the meeting convened: Present: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman* Absent: None *Participated via WebEx DISCUSSION OF AGENDA ITEMS Councilmember Fitzwater will lead the prayer. Appointments by the Mayor - Gail Strope, Human Resources Director will present the recommended appointment. Consent Agenda - There were no questions at this time. Bills Introduced - City Staff presented their introduced bills. Bills Pending - City Staff presented their pending bills. - City Attorney Ryan Moehlman noted a need for a floor amendment to the RS2022-39 contract. Councilmember Fitzwater stated that he would make a motion to amend the contract. Closed Session - A closed session is scheduled on tonight’s agenda. ADJOURNMENT The meeting adjourned at 5:52 P.M. 1 REGULAR COUNCIL MEETING, JANUARY 3, 2023 CALL TO ORDER Mayor Carrie Tergin called the January 3, 2023 City Council meeting to order at 6:01 P.M. ROLL CALL The f ollowing Councilmembers were present for roll-call: Present: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman* Absent: None *Participated via WebEx ADOPTION OF THE AGENDA Councilmember Schreiber motioned and Councilmember Lester seconded the motion to adopt the agenda. The motion passed unanimously by voice-vote. MISCELLANEOUS AGENDA ITEMS There were no miscellaneous agenda items at this time. PUBLIC HEARINGS There were no public hearings at this time. APPOINTMENTS BY THE MAYOR Human Resources Director Gail Strope presented Jeff Earl as the recommended reappointment to the Heartland Port Authority. Councilmember Hensley motioned and Councilmember Ward seconded the motion to approve the reappointment of Jeff Earl to the Heartland Port Authority. The motion passed unanimously. PRESENTATIONS FROM STAFF, CONSULTANTS & INVITED GUESTS Shiela Pearre, Director of Finance and I.T. provided a financial update. An update will be provided at the first City Council meeting of each month per the request of City Council. ANNOUNCEMENTS BY MAYOR, COUNCIL, AND STAFF City Council committee announcements: • Committee on Administration – The next meeting is scheduled for January 11th, 7:30 A.M. in the Boone-Bancroft Room. • Finance Committee – There were no updates at this time. • Public Safety Committee – Chair Schreiber thanked Vice-Chair Ward for presiding over the December Public Safety Committee meeting. 2 REGULAR COUNCIL MEETING, JANUARY 3, 2023 • Public Works & Planning Committee –The next meeting is January 12th, 7:30 A.M. in Council Chambers. The topic of Parking will be on the agenda. Mayor announcements: • Mayor Tergin congratulated Councilmember Fitzwater for running unopposed for the Mayoral seat on the April 4, 2023 election ballot. Staff announcement: • Rachel Senzee, Neighborhood Services Manager announced the upcoming 2024- 2028 Consolidated Plan Public Input Meeting. The meeting is scheduled for January 11th, 4:00 P.M. – 6:00 P.M. in City Council Chambers. There will be a virtual option to join as well. There is also a survey on the homepage of the City’s website. LINCOLN UNIVERSITY STUDENT REPRESENTATIVE UPDATE There were no updates at this time. Octavia Ailsworth is out of town for the semester break. She will be returning mid-January. PRESENTATIONS FROM THE GALLERY ON SPECIFIC BILLS OR RESOLUTIONS There were no presentations at this time. CONSENT AGENDA a. Minutes of City Council Meetings: December 19, 2022 b. Authorizing Change Order #1 with Sam Gaines Construction, Inc. for Concrete Street Repair in the Amount of $32,306 Councilmember Lester motioned and Councilmember Ward seconded the motion to approve the above items on the Consent Agenda. The motion passed unanimously. BILLS INTRODUCED 2022-090 sponsored by Councilmember Wiseman AN ORDINANCE AMENDING CHAPTER 16, ARTICLE III, SECTION 16 -31 OF THE CITY CODE RELATED TO THE COMMISSION ON HUMAN RELATIONS - STRUCTURE OF COMMISSION; QUORUM; COMPENSATION. 2022-091 sponsored by Councilmember Lester AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, ACCEPTING AND APPROVING THE FINAL SUBDIVISION PLAT OF EMILY LANE SUBDIVISION SECTION THREE, A SUBDIVISION OF THE CITY OF JEFFERSON, MISSOURI. 2022-092 sponsored by Councilmember Fitzwater AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH BARTLETT AND 3 REGULAR COUNCIL MEETING, JANUARY 3, 2023 WEST, IN THE AMOUNT OF $190,500.00 FOR THE CONCEPTUAL DESIGN OF THE HIGH STREET VIADUCT. 2022-093 sponsored by Councilmember Fitzwater AN ORDINANCE AMENDING THE CODE OF THE CITY OF JEFFERSON, MISSOURI, PERTAINING TO TRANSIT SYSTEM FARES. BILLS PENDING 2022-088 sponsored by Councilmember Fitzwater AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A $80,336.00 AGREEMENT WITH BARTLETT & WEST INC. FOR THE BASIN 10- WESTVIEW SEWER MAIN UPGRADE PROJECT. Bill 2022-088 was read third time by title, placed on final passage, and pa ssed by the following roll-call vote as Ordinance 16303: Aye: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Nay: None 2022-089 sponsored by Councilmember Wiseman AN ORDINANCE IMPOSING A SALES TAX AT A RATE OF THREE PERCENT ON ALL TANGIBLE PERSONAL PROPERTY RETAIL SALES OF ADULT USE MARIJUANA SOLD WITHIN THE CITY OF JEFFERSON, MISSOURI, PURSUANT TO ARTICLE XIV, SECTION 2.6(5) OF THE MISSOURI CONSTITUTION SUBJECT TO THE APPROVAL BY THE VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON APRIL 4, 2023; DESIGNATING THE FORM OF BALLOT; AND DIRECTING THE CITY CLERK TO PROVIDE NOTICE OF SAID ELECTION. During the discussion of bill 2022-089, Councilmember Spencer expressed his hope that future City Councils will allocate these tax revenues to City departments affected by the passage of adult use, non-medical marijuana; i.e. Municipal Court and public safety. Bill 2022-089 was read third time by title, placed on final passage, and pa ssed by the following roll-call vote as Ordinance 16304: Aye: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Nay: None INFORMAL CALENDAR There was nothing on the informal calendar at this time. 4 REGULAR COUNCIL MEETING, JANUARY 3, 2023 RESOLUTIONS RS2022-39 sponsored by Councilmember Fitzwater A RESOLUTION AUTHORIZING THE CITY TO EXECUTE A CONTRACT WITH JEFFERSON CITY REGIONAL ECONOMIC PARTNERSHIP. Ryan Moehlman, City Attorney, presented the resolution. Councilmember Fitzwater motioned to amend the contract to the bill to correct an amount typo on page one. The total annual contract amount should be $185,000 (not $120,000). Councilmember Spencer seconded the motion. The motion passed unanimously. Councilmember Lester said he would like to see a progress report presented mid-year by Jefferson City Regional Economic Partnership. Councilmember Schreiber motioned to adopt RS2022-39 with the amended contract. Councilmember Ward seconded the motion. The motion passed by the following roll-call vote: Aye: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Nay: None PRESENTATIONS FROM THE GALLERY ON OTHER TOPICS There were no presentations at this time. COUNCIL AND STAFF DISCUSSION OF PRESENTATION TOPICS There was no discussion at this time. NEW BUSINESS Councilmember Spencer congratulated Councilmember Fitzwater for running unopposed for the Mayoral seat on the April 4, 2023 election ballot. He looks forward to working with him. Councilmember Spicer echoed Councilmember Spencer’s sentiments. APPROVAL OF DECEMBER 19, 2022 CLOSED SESSION MINUTES Councilmember Spicer motioned, and Councilmember Ward seconded the motion to approve the December 19, 2022 Closed Session Minutes. The motion passed by the following roll-call vote: Aye: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Nay: None 5 REGULAR COUNCIL MEETING, JANUARY 3, 2023 CLOSED SESSION Pursuant to Sec. 610.021 of the Revised Statutes of Missouri, Mayor Tergin entertained a motion to go into Closed Session to discuss the following: i. Attorney Client Privilege [Sec. 610.021(1)] ii. Real Estate [Sec. 610.021(2)] iii. Sealed Proposals [Sec. 610.021(12)] A motion was made by Councilmember Spicer to go into Closed Session for the above- stated reasons, seconded by Councilmember Schreiber and approved by the following roll-call vote at 7:06 P.M.: Aye: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Nay: None RECONVENE IN OPEN SESSION Following the Closed Session, the City Council reconvened in Open Session at 7:48 P.M. with the following Councilmembers present: Present: Deeken, Fitzwater, Hensley, Kemna, Lester, Schreiber, Spencer, Spicer, Ward, and Wiseman Absent: None UNFINISHED BUSINESS There was no unfinished business at this time. ADJOURNMENT A motion to adjourn was made by Councilmember Wiseman, seconded by Councilmember Spicer, and approved unanimously at 7:49 P.M. BILL SUMMARY BILL NO: 2022-094 SPONSOR: Councilmember Wiseman SUBJECT: Amend Chapter 19 of the Code of the City of Jefferson . Schedule 0 (Parking Time Limit Zones), to Match Existing Conditions on East High Street and Lafayette Street DATE INTRODUCED: January 17, 2023 DEPARTMENT DIRECTOR(S) =----f-L...q.v.,.=-'-?~:....____o"-7-'1-r---:.(==-------­ CITY ADMINISTRATOR:----!:-;;_:::.:::........:~..L-~~::H.~---------- Staff Recommendation: Approve . Summary: If approved, this would modify City Code to match existing parking time limit conditions in various locations on East High Street and Lafayette Street. Origin of Request: Staff; through the Transportation & Traffic Commission Department Responsible: Department of Public Works PERSON RESPONSIBLE: MATT MORASCH P .E./David Bange , P.E . Background Information: While looking at the parking time limit request in the 600 block of E. High St., Staff noticed some inconstancies between e xisting conditions and e xisting City Code. To fix the inconstancies , Staff is recommending the following modifications be, for the following reasons . 1) Parking is no longer available in these locations , so Staff is recommending removing parking time restriction from them . • High Street: on the south half thereof, east and within 45 feet of the east curb of Lafayette Street. • Lafayette Street: on the east side thereof, a distance of 71 feet south of the south curb of East McCarty Street. (Ord . No. 10499, § 2 , 9-16-85) • Lafayette Street: on the east sides thereof, extending 100 feet south of the south curb of East High Street. 2) Parking is not currently signed with a time restriction in these locations, so Staff is recommending removing the restriction from City Code. • Lafayette Street: between Capitol Avenue and Commercial Avenue. 3) City Code has this area listed with 2 different time restrictions. One of the restrictions matches existing signed condition, so Staff is recommending removing the other from City Code. • Remove: High Street: on the north half thereof, between points 20 and 112 feet east of the east curb of Adams Street. • Leave in Place: High Street: on the north side of the 400 block thereof. This issue was discussed at the December 2022 Transportation and Traffic Commission meeting. Approval was recommended by Commission members to make the above listed modifications. Fiscal Information: Estimated cost for Staff to make changes to the code. BILL NO . 2022-094 SPONSORED BY Councilmember Wiseman ORDINANCE NO. _______ _ AN ORDINANCE OF THE CITY OF JEFFERSON , MISSOURI , AMENDING CHAPTER 19 (MOTOR VEHICLES AND TRAFFIC ), SCHEDULE 0 (PARKING TIME LIMIT ZONES), TO MATCH EXISTING CONDITIONS ON EAST HIGH STREET AND LAFAYETTE STREET. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS: Section 1. Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking Time Limit Zones), Section c (Time Zone C , 1-hour limit) of the Code of the City of Jefferson , Missouri, is hereby amend ed by the Addition of: High ~treet: on the nort h half ther eof, between points 20 and I 12 feet east of the east curb of Adams &treet-: High ~treet: on t he south ha lf t hereof, east and with in 4 5 feet of the east eurb of Lafayette ~treet. Lafayette ~treet: on the ea st side thereof, a distan ce of 71 feet south of the south curb of East Mc C arty ~lreet. (O rd. 11-lo . I 0499 , § 2, 9 16 85) Se ctio n ~. Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking Time Limit Zone s), Section e (Time Zone E , 2-hour limit), Subsection 1 (Between 7 am & 7 pm) of the Code of the City of Jefferson , M isso uri , is hereby am e nded by the Addition of: Lafayette ~treet: on the east side thereof, e><tend in g I 00 feet south of the south eurb of East 1=1 igh Street Lafayette Stre et: between Capito l Avenue and Cmflmereia l Avenue. Section ~. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Pas se d : -----------------------Approved : _______ _ Presiding Officer Mayor Carrie Tergin ATTEST: APPROVED AS TO FORM : City Clerk Ed itor's note: Deleted language s h ow n tf:ll:ffi . Added lang uage s hown thus . BILL SUMMARY BILL NO: 2022-095 SPONSOR: Councilmember Wiseman SUBJECT: Amend Chapter 19 of the Code of the City of Jefferson , Schedule 0 (Parking Time Limit Zones), by the Modification of the 600 block of East H ight Street from 2 hours (section e) to 4 hours (section f) DATE INTRODUCED: January 17, 2023 DEPARTMENT DIRECTOR(S):~-->'-'-~~~~Ll..J.L._.,...r-...:.----------­ CITY ADM I NISTRATOR:_~.....::=:::::..__..fL..k.~-:::1?_~~---------- Staff Recommendation: Approve. Summary: If approved, this would modify the parking time limit in the 600 b lock of E . High Street to 4 hou rs . Currently the t ime limit in this block is 2 hours . Origin of Request: Ms. Charlotte Boeckman (business owner in the block); through the Transportation & Traffic Commission Department Responsible: Department of Public Works PERSON RESPONSIBLE: MATI MORASCH P .E./David Bange , P .E . Background Information: The 600 block of East High Street is located between Marshall St. and Lafayette St. The buildings along this block are a m ix of commercial and residential. Currently the bloc k has parking on both sides , and all parking is limited to 2-hou rs between 7 am & 7 pm , Monday-Saturday. If the majority of owners and tenants are agreeable or ind ifferent to modifying the time limits, Staff could support modifying time limits on the north half of the block , south half of the block, or both . However, Staff would suggest setting time limits as 1-hour, 2-hour, 4-hour, 1 0-hour, or Unrestricted as these are more c ommon in the Downtown area than a 3-hour time limit. This issue was discussed at the December 2022 Transportation and Traffic Commiss ion meeting . Comments where heard from the requestor-no ot her comments were h eard or received from the mailings to area tenants/owners . [Notifications w ere sent to 529 , 530 , 600,601 ,606 ,609,615 ,616 ,617,620,621,623,624 ,626 ,628,630,631 ,633,700,701 East High St.] Approval was recommended by Commission members to mod ify the parking time limit to 4 hours . Fiscal Information: Estimated cost for Staff to make chan ges to the c ode and $100 in labor and materials to modify parking signs . BILL NO . 2022-095 SPONSORED BY Councilmember Wiseman ORDINANCE NO . _______ _ AN ORDINANCE OF THE CITY OF JEFFERSON , MISSOURI , AMENDING CHAPTER 19 (MOTOR VEHICLES AND TRAFFIC), SCHEDULE 0 (PARKING TIME LIMIT ZONES), BY THE MODIFICATION OF THE 600 BLOCK OF EAST HIGH STREET, FROM 2 HOUR (SECTION E) to 4 HOUR (SECTION F). BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS : Section 1. Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking T ime Limit Zones), Section e (Two-hour limit), subsection 1 (7 am -7 pm) of the Code of the City of Jefferson, Missouri , is hereby modified by the deletion of: II igh Street Eas t: on the--tterth and so uth sides of' tite-6{}0 block thereo f'. (Ord. 15173 . ~ I. 9 16 ~ Section .f.. Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking Time Limit Zones), Section f (four-hour limit) of the Code of the City of Jefferson , Missouri , is hereby modified by the addition of: Hig h Stt·cN East: o n bot h s ides o f t he 600 bloc k t h ereof. Section 3. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed : __________ _ Approved : _______ _ Presiding Officer Mayor Carrie Tergin ATTEST: APPROVED AS TO FORM : City Clerk Ci~ Editor's note : De leted language sho wn tRt.s. Added language shown thus. BILL SUMMARY BILL NO: 2022-096 SPONSOR: Councilmember Wiseman SUBJECT: Amend Chapter 19 of the Code of the City of Jefferson , Schedule 0 (Parking Time Limit Zones), by Deletions Next to 1001 West McCarty Street DATE INTRODUCED: January 17, 2023 DEPARTMENT DIRECTOR(S): __ --f'-J~~~::........:....~~-------- Staff Recommendation : Approve. Summary: If approved, this would remove parking time limits from 2 spaces next to 1001 W. McCarty Street. One space is on West McCarty Street and one space is on Brooks Street. Origin of Request: Staff; through the Transportation & Traffic Commission Department Responsible: Department of Public Works PERSON RESPONSIBLE: MATT MORASCH P.E./David Bange, P.E. Background Information: Near the south-west corner of the Brooks St.-W . McCarty St. intersection, there are 2- time limited spaces . Both are located next to 1001 W . McCarty St., with one on Brooks St. and one on W. McCarty St. These spaces were requested in 1987 by the business in that building (alteration shop), and approved via ordnance 10959 . Since then, the shop has been closed for several years and no new business has moved in. Given this and the residential nature of the area , Staff is requesting the time limits be removed from both blocks to allow residents to legally utilize these spaces. This issue was discussed at the December 2022 Transportation and Traffic Commission meeting . No public comments were received from the mailings to area tenants/owners . [Notifications were sent to 404 , 406 ,407 , 408 , 410,415, 416 , 418 , & 420 Brooks Street; and 921, 922, 1000, 1004, 1005, 1007, 1008, 1009, 1010, 1011, 1013, 1014, & 1001 West McCarty Street.] Approval was recommended by Commission members to remove the parking time limit from both spaces. Fiscal Information : Estimated cost for Staff to make changes to the code and remove parking signs and poles . BILL NO . 2022-096 SPONSORED BY Coun cilm ember Wiseman ORDINANCE NO . _______ _ AN ORDINANCE OF THE C ITY OF JEFFERSON , MISSOURI , AMENDING CHAPTER 19 (MOTOR VEHICLES AND TRAFFIC), SCHEDULE 0 (PARKING TIME LIMIT ZONES), BY DELETIONS NEXT TO 1001 WEST MCCARTY STREET . BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS: Section 1 . Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking Time Limit Zones), Section C (one-hour lim it), of the Code of the City of Jefferson , Missouri , is hereby modified by the deletion of: Brooks Street: the west side of the 400 block thereof beginning a distan ce of 20 fee t from the south curb of We st McCarty and e>(tending south a distance of 25 feet. (Ord. No. I 0959, § I , 12 7 87) McCarty Street, West: the south sid e of the I 000 b locl< beginning at a point II feet seven in ches from the west cu rb of Brooks Street and extending west a distance of 40 feet. (Ord. l'Jo. I 0959, § I, 12 7 87) Section .f.. Chapter 19-401 (Motor Vehicles and Traffic), Schedule 0 (Parking Time Limit Zones), Section e (two-hour limit), s ubsection 1 (between 7 am-7 pm) of the Code of th e City of Jefferson , Mi sso uri , is he reby modified by th e deletion of: Brooks Street: the west side of the 4 00 block thereof beginning a distance of 20 feet from the south curb of West McCarty and extending south a distance of 25 feet. (Ord. No. I 0959, § I , 12 7 87) McCarty S treet, Wes t: the south s ide of the I 000 bloc k beginning at a point II fee t seven in che s from the west curb of Brooks S treet and extending west a distance of 40 feet. (Ord. No. I 0959, § I , 12 7 87) Section ~. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passe d : ___________ _ Approved: ________ _ Presiding Officer Mayor Carrie Tergin ATTEST: APPROVED AS TO FORM: City Clerk c~ Editor's note : Deleted langu age s hown tfllis. Added la ngu age sh own thus . BILL SUMMARY BILL NO: 2022-097 SPONSOR: Councilmember Fitzwater SUBJECT: Authorizing a $69 ,950 Contract with Automotive Technology for the Service of Demolition and Installation for a New Bus Lift for Transit in Central Maintenance DATE INTRODUCED: January 17 , 2023 DEPARTMENT DIRECTOR(S) :-:-------1'-'~~~.J::......!_.J.L.II.._~,___ _____ _ CITY ADMINISTRATOR:_~.::::_.....:::::=~-L..,.(LL::::.~~SL----------- Staff Recommendation: Approve . Summary: This bill will authorize a $69,950 contract with Automotive Technology for the demolition/removal of the old bus lift and the installation of a new bus lift . The current lift is well past its expected lifespan and is not fully functioning. Origin of Request: City Staff Department Responsible: Public Works PERSON RESPONSIBLE: MATTHEW J . MORASCH , P.E./Gerry Stegeman Fiscal Information: This project is part of M0-2022-043 which will fund $55 ,960 (80%) of this project. A $13,990 (20%) local match is required , which will come from CIP/Transit Matching funds. FISCAL NOTE · I~· ' I ' Expended or Estimated I' 'd Account ,, FY2022 Encumbered Spend ~umber .. fl)escriotion Budeet Amount Amount Balance Pu rc has e of Eq uipment- 63-630 -572020 Transit Fund $21 6.000 .00 s 111.067.75 $55 960.00 $48 972.25 Transit Matching-Sales 45 -990-59 0070 Tax G funds $4 00.000 .00 $2 53.098.24 $13 990.00 $132.991.76 Total Amount S69,950.00 BILL NO . 2022-097 SPONSORED BY Councilmember Fitzwater ORDINANCE NO . _______ _ AN ORDINANCE OF THE CITY OF JEFFERSON , MISSOURI , AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH AUTOMOTIVE TECHNOLOGY IN THE AMOUNT OF $69 ,950 FOR THE DEMOLITION OF THE OLD BUS LIFT AND INSTALLATION OF A NEW BUS LIFT. WHEREAS , Automotive T echnology is the Sole Source Procurement. NOW, THEREFORE BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI, AS FOLLOWS: Section 1 . Automotive Technology is the Sole Source Procurement. The Rotary bus lift was purchased off of a State contract. Automotive Technology is the sole service provider authorized for Rotary Lifts in the Jefferson City area . Section ~. The Mayor and City Clerk are hereby authorized and directed to execute an agreement with Automotive Technology. Section ~· The agreement shall be substantially the same in form and content as the agreement attached hereto as Exhibit A. Section 1 . This Ordinance shall be in full force and effect from and after th e date of its passage and approval. Passed : __________ _ Approved : _______ _ Presiding Officer Mayor Carrie Tergin ATTEST: APPROVED AS TO FORM : City Clerk City~ FINANCE DEPARTMENT PURCHASING DIVISION SUBJECT: Sole Source Procurement-Automotive Technology Public Works -Transit RECOMMENDATION: Staff recommends purchasing demolition and installation services for a new bus lift from Automotive Technology , Inc of Fenton, Missouri by means of sole source procurement. The Rotary lift was purchased from Vehicle Services Group, LLC from a statewide contract issued by the Office of Adm inistration. This contract only supplied the equipment. It did not provide for removal, site preparation , and installation services. Automotive Technology, Inc is the only authorized supplier for services for this equipment for our region, therefore making th is a sole source procurement. Prior to the installation, the contractor required soil samples from the area in order to provide an accurate bid . At that time, the vendor was deemed to be a sole source by the City Administrator since it was within his purview ($7 ,500). We are asking for approval to declare this purchase as a sole source and to approve the expenditure and contract. The total cost for the removal of the existing lift , site preparation , and installation of the new lift is $69 ,950. SOLE SOURCE PROCUREMENT: Automotive Technology, INC, Fenton, MO FISCAL NOTE · I· Account Number !8 . 'Description Purchase of Equipment- 63-630-572020 Transit Fund Transit Matching -Sales 45-990-590070 Tax G Funds Tota l City Cost $69,950 Expended or FY2022 Encumbered Bude:et Amount $2 16 000.00 $1 11 ,067.75 $400 000.00 $253 ,098 .24 Total Amount ATTACHMENTS-SUPPORTING DOCUMENTATION s;9 nature ~a fku~ hasing Agent~ Estimated Spend Amount Balance $55 960.00 $48,972.25 $13 990.00 $132 991.76 $69,950.00 Automotive Technology, Inc. 544 Mae Court, Fenton, MO 63026 Automotive Tcchnolo,::y f nc. 636 -343-8 10 I • Fax: 636-343-5597 • Toll Free: 1-800-875-810 I www.automotivetechnology.com E-ma il: doug@automotivetechnology .com C it y of Jefferson C it y 820 E. Mi ll er St. Jeffe rso n Ci ty. MO 65101 Mod 35 in -grou nd li ft 12/27 /22 Mod 35 Labor & Material s: $69,950 Remove exis ting lift from pit including all chain . cyl ind e rs and black p ipin g Pump o il from trench and tank s (!-above g ro und. !-below ground into 55 ga ll o n drums. leave for customer to disp ose of. Remove chase pip e cove r plates. steel pip in g and supe rstru ctures. Sawcu t noor 10 ' wide x 32'--t" Long and from fron t of li ft to MCP location at front wall. Jack hammer out concrete. remove with backhoe and dump offs ite Excavate to a pp ro pri ate eleva ti on per pit draw in gs and ex pose exis tin g pit wal ls as yo u go Jack o ut ex is ting wa ll s, remove spo il s wi th backho e. d ump spo il s o ffs it e Remove exis tin g li xed pos ition cylinde r and moveable cylinder So il s eng in eer to in s pect exposed pit to e ns ure ve rify so il s a r c as expect ed pe1· repo1·t Install specified geotextilc (pe r so ils engineer) between pea g r avel and concrete Backlill ex istin g pit len g th that is from 6"6 BFF to 8'BFF with 3/,'" minu s rock and compac t w ith drone compac tor Pit is now ready for normal Mod 35 insta llati on Make final ai r connections to MCP fr o m ex is ting a ir line o n wall. Elec tri cian to br in g power to the MCP (By oth er s)-208v. 3p hz Add O il. bleed. run and test lift. Train cus tomer o n operation. Not in c luded : Permit Stamped drawing s Elect ric al co nn ec ti ons. by others (powt.:r to Master Contro l Panci-MCP) Structura l/Soi l cond iti o n iss ues th at require remed iation (water. cave-in. undermin ing of existing !l oor. .. ) Underground utilities enco untered . requiring repa ir Additiona l concrete required outs ide the I o·w X 32·4·· I cutout. Weekends. Holida ys or required OT Non-A Tl labor 7 r f l ,_ ~I Automo t iv e T c.:hnology ln.:. 28 December 2022 To : Britt Smith Automotive Technology, Inc. 544 Ma e Co urt. Fenton. MO 63026 636 -343 -8 10 I • Fax: 636 -343 -5597 • Toll Fr ee: 1-800 -875-8 10 I www.au tom o ti ve te chn o logy.com E-ma i I: doug@automotivetechnology.com Jefferson City Public Wo rks Cc: Sha\\ n Stum pe Subject: Mod35 in stall ati o n pricing explanation Encl os ure: Upda ted Mod35 In stal lati on qu ote Britt Wh en we s tart ed wo rkin g on thi s project. we gave yo u a budget in sta ll ation pr ic e of$50.000 fo r the lift in s ta ll. T hi s numb e r was ba se d on o ur las t in s tall atio n done in 2020 . Wit h the dama ge to yo ur ex istin g lift (conc rete bow in g in seve rel y) we re co mm e nded a so il s analys is to dete rmin e what was ca usi ng the lift damage to ens ure it would not affec t th e new li ft in sta ll ati on. We sa id we would prov ide an ac tu a l insta llat io n qu ote once we knew the results of the so il s ana lys is. The so il s ana lys is is now co mp lete . 1\ lo t ha s happ ened s ince 2020 and our las t Mod35 ins tallation. Prices/costs hav e in creased on every thin g. Specific a ll y: Materials (concrete . rebar. rock. PV C. plywood ... ) have in creased 150-250%. Labor. rental equipmen t. excavati on. fue l -have in c reased ove r 25% As a result of th ese increased costs. th e 2022 installation price is $68 .950 . The so il s analysis requires the use of a non-wo ve n geo tex til e to sep arat e th e pea grav e l from th e ex isting so il/clay . We wi ll a lso need a visual in spe cti o n of th e excavation by a so il s engineer to en s ure the soi ls a rc as expe cted and w ill bea r th e li ft -..veig ht. The adde r for both of th ese is $1.000 . T he tota l Mod35 ins ta ll ati on qu ote is $69 .950 ($1.305 less than o ur previo us email-was a ble to find the non-woven fa bric loca ll y and fo r a lot less). We hope this helps exp lain the difference between our or iginal bud get numb er and the ac tu al numbe rs. Ple as e let us kn ow o f any more questi o ns. Since re!) Doug S lattery Pres ident City of Jefferson Finance Department, Purchasing Div. 320 E. McCarty St. Room 202 Jefferson City, MO 65101 TO: FROM: DATE: Steve Crowell City Administrator Leigh Ann Corrigan Purchasing Agent October 28 , 2022 MEMORANDUM RE: So le So urce-Automotive Teclmology, Inc Carrie Tergin, Mayor L eigh Ann Corrigan Purchasing Agent Central Maintenance needs to replace the bus lift. The purchase of the bus lift is being procured us ing an Office of Admini stratio n statewide contract. The contract is for the lift only. The lift must be install ed by an authorized dealer. A utomotive Technology, Inc. of Fenton , MO is our authorized dealer. Please see the attached letter from R otary. We a lso posted the intent to award the work as a so le source on Bonfire and ask ed vendors to notify us if they were able to perform these services . We did n ot receive any responses. A uto motive Techno logy must first conduct a soi l analysis befo re they can give us a firm quote on the removal of the ex isting lift and in stal lation of the new li ft. The soil analysis wi ll cost $7,5 00 . It is estimated the cost for th e removal/in sta llation will be around $50,000 . I am requesting approval fo r the soil sampling as a so le source. Once thi s is completed and we receive the quote fo r the r emo val and installation work, we will take that to City Council for approval. Please indi cate if yo u approve or decline thi s req uest for a sole source purchase. Thank you. Appro ve:!0~~ Date: c 3/ ~~~~~-------- Decline: A utomotive Tccltnol ogy lm:. EXHIBIT A Automotive Technology, Inc. 544 Mae Court , Fenton, MO 63026 636-343-8101 • Fax: 636-343-5597 • To ll Free: 1-8 00-875-8101 www .automotivetechnolog y .com E-mail: cloug@aulomotivetechnology .com Due to the extreme bowing of the existing concrete slab for the HD inground lift, a soils analysis is required to ensure we do not put a new lift in the ground and then have the same issue in the future. This will be a two ·step process to figure out the problem and then design a solution for it. Soil Analysis conducted by a soils engineering firm Task 1 Conduct a subsurface investigation to characterize the soil, rock and groundwater conditions pertinent to installation of the Rotary Mod 35 lift. Two borings to approximately 17' below floor elevation. Task2 Delivyr a preliminary verbal report of field observations. The complexity of subsmface conditions and the actual findings of the field investigation will dictate to what extent "fmal" design recommendations can be provided with the preliminary report. Task3 Evaluate the findings of the site subsurface investigation to design and conduct laboratory testing to quantify and supplement field data and observations . Task4 Analyze field data and observations, local soil and rock stratigraphy, and laboratory data to prepare an engineering report that describes: allowable foundation bearing capacity : foundation settlement estimates; anticipated lateral eru1h pressures ; subsurface drainage recommendation; and pertinent geotechnical construction considerations Structural review of Soils analysis, conditions and recommendations Analysis of the soils report and the Rotary Mod35 lift installation design Design changes to the. proposed Rotary Mod35 installation to address the soil conditions identified in the soil report The cost for these analysis/reviews : Soils analysis (2-3 weeks) Stuctural engineering $ 7,500 TBD (may or may not need) Once we have a solution to the problem~ ATI and Rotary can schedule the Mod35 for installion. September 27, 2022 Re : Rotary Authori zed Distributor/In staller This letter is to info rm yo u that Automotive Technology Inc. is our Rotary Authori ze d Dealer in your area with sales and in stallation RAI status. Rotary Authori zed Installers and service companies are factory trained and committed to offering the highe st level of service and installation on behal f of Vehicle Service Gro up , LLC/Rotary Lift. To activate the first year of parts warranty on this product the in stal lation shall be done by a Rotary Authorized In staller and the product registered with the factory. If you have any questions, pl ease call me toll free at 800-445-5438 x5655. Sincerely, Christine Bilz Government Sales Leader 800.445.5438 x5655 hilz@rotarylift.com ROTARY LIFT The World's Most Trusted Lih . -··- ROTARY UFT A 2 00VER )"'COMPANY 2700 Lanier Drive Madison, Indiana 47250-0560 P: 800.640.5438 F: 800.578.5438 www.rotarylift.com f:tt:t-rl. JE11FERSO N ,,,, . SS4071-1 0/22 -Sole Source -Rotary Lift Installation Project Overview ' -~ " ·11 II. ,.. ~ ~""' 'f P roject Details "· •II Refere nce ID SS4071-1 0/22 Project Name Sole Source-Rotary Lift Insta ll at ion Project Owner Leigh Ann Corrigan Project Type ss Department Public Wo rks -Transit Budget $0.00 -$0.00 ·~ The City of Jefferson intend s to award a contract for the demolition of an existing Rotary bus lift a nd the installation Project of a new Rotary bus li ft as a sole source provider. If yo u are aut horized by Rotary to perform t hese services in the Description Jefferson City, MO area , please respond to this notification with your qua lifi ca tions and docum entation sho wi ng you are a Rotary authorized provider/installer. Open Date Oct 18, 2022 12 :00 PM COT Close Date Oct 25, 2022 12 :00 PM COT .'',;:· Highest Scoring Supplier .. ~~ Score No vendors res ponded to t his notification Generated on Oct 25. 2022 12:09 PM CDT-Le 1gh Ann Corngan Page 1 of 4 J E~E HSON Miiiii!HEEM I Submissions Supplier Date I Name Email Confirmation Submitted " No responses received Project Criteria .•. ,;, " "' . ..I Criteria Points Descrription Vendor is Authorized by Pass/Fail Rotary "' Total Opts I Generated on Oct 25, 2022 12 :09 PM COT-Le 1gh Arn Corrigan Page 2 of 4 Code J Ei1FE HSON · • '''"'''* Vendor List Email Address or Domain Name Date Invited ------~~~~~------------~ aforrest@euronetworldwide.com Oct 18th 2022, 12:02 PM COT agoddard@oxfordats.com Oct 18th 2022, 12 :02 PM COT alan.kraemer@psxgroup .com Oct 18th 2022, 12 :02 PM COT ariellegroup@gmail.com Oct 18th 2022, 12 :02 PM COT bissot@jmr-tech .com Oct 18th 2022, 12 :02 PM COT bob@ledou xi ndustries.com Oct 18th 2022, 12 :02 PM COT carrieg@plattcon .net Oct 18th 2022, 1 2:02 PM COT chollingsworth@jbs.edu Oct 18th 2022, 12 :02 PM COT christopher.gall agher@sbdinc.com Oct 18th 2022, 12 :02 PM COT collin .pohl@mobilemoney.net Oct 18th 2022, 12 :02 PM COT corey@wyco.biz Oct 18th 2022, 12 :02 PM COT csr2@stairbusters .com Oct 18th 2022, 12:02 PM COT estimating@eaglerock.us Oct 18th 2022 , 12:02 PM COT gemsinc@gemsenvironmental.com Oct 18th 2022, 12:02 PM COT h.mcanderson@govoptimum.com Oct 18th 2022, 12:02 PM COT info@fardenterprises.com Oct 18th 2022, 12:02 PM COT jcartmill@shieldsharper.com Oct 18th 2022 , 12 :02 PM COT jma thews@mathmec.com Oct 18th 2022, 12:02 PM COT j on .dickson@johnstonesupply.com Oct 18th 2022 , 12:02 PM COT kdickerson@vtc .us .com Oct 18th 2022 , 12:02 PM COT keith@eliteelevatorservices.com Oct 18th 2022 , 12:02 PM COT kmcclave@wrallp .com Oct 18th 2022, 12 :02 PM COT mhewett@bxk entucky.com Oct 18th 2022 , 12:02 PM COT michael@tx1src.com Oct 18th 2022, 12:02 PM COT michal@real.kalisz.pl Oct 18th 2022, 12:02 PM COT mikes@dps-inc.net Oct 18th 2022, 12:02 PM COT ngarcia@real.inc Oct 18th 2022, 12:02 PM COT nhusiow@gmail.com Oct 18th 2022, 12 :02 PM COT paul@cityfire.com Oct 18th 2022, 12:02 PM COT paul@cowboyscranes.com Oct 18th 2022, 12 :02 PM COT quinley.inc@gmail.com Oct 18th 2022, 12 :02 PM COT rcamacho@gemsen vironmental.com Oct 18th 2022 , 12 :02 PM COT rickb@pennfence.com Oct 18th 2022, 12 :02 PM COT ryan .maher@sdvservicesinc .com Oct 18th 2022, 12 :02 PM COT sm archette@airlinkint.com Oct 18th 2022, 12:02 PM COT sveith@aaansi.com Oct 18th 2022, 12:02 PM COT tstonge@maycontracting.com Oct 18th 2022, 12 :02 PM COT vanessa.krodell@dormakaba .com Oct 18th 2022, 12 :02 PM COT Generated on Oct 25 2022 12 .09 PM COT-Le gh A1'r Corngan Pc:1ge 3 of 4 _, veronica@ mid-americanelevator .com vicki@hoppscsi.com Oct 18th 2022, 12:02 PM COT Oct 18th 2022, 12:02 PM COT Generated on Oct 25. 2022 12:09 PM COT -Leigh Ann Corrigan Page 4 of 4 CITY OF JEFFERSON CONTRACT FOR CONSTRUCTION SERVICES THIS CONTRACT, made and entered into the date last executed by a party as indicated below, by and between the City of Jefferson, a municipal corporation of the State of Missouri, hereinafter referred to as "City", and Automotive Technology, Inc. hereinafter referred to as "Contractor". WITNESSETH: THAT WHEREAS, Contractor has become the lowest responsible bidder for furnishing the supervision, labor, tools, equipment, materials and supplies for the following City improvements: removal of previous bus lift, site preparation and installation of a new bus lift. NOW THEREFORE, the parties to this contract agree to the following: 1. Scope of Services. Contractor agrees to provide all supervision, labor, tools, equipment, materials and supplies for the site preparation and installation of a transit bus lift, as set forth in Exhibit A. In the event of a conflict between this agreement and any attached exhibits, the provisions of this agreement shall govern and prevail. 2. Payment. The City hereby agrees to pay Contractor the work done pursuant to this contract according to the payment schedule set forth in the contract documents upon acceptance of said work by an Agent of the City of Jefferson's Public Works Department and in accordance with the rates and/or amounts stated in the bid of Contractor dated December 22, 2022, which are by reference made a part hereof. No partial payment to Contractor shall operate as approval or acceptance of work done or materials furnished hereunder. The total amount of this contract shall not exceed an estimated amount of Sixty-Nine Thousand Nine Hundred Fifty Dollars and Zero Cents ($69,950.00) 3. Manner and Time for Completion. Contractor agrees with the City to furnish all supervision, labor, tools, equipment, materials and supplies necessary to perform, and to perform said work at Contractor's own expense in accordance with the contract documents and any applicable City ordinances and state and federal laws from the date of the last signature and shall be completed within six (6) months. 4. Prevailing Wages. If the bid price is $75,000 or higher, prevailing wage will apply to public works projects. To the extent that the work performed by Contractor is subject to prevailing wage law, Contractor shall pay a wage of no less than the "prevailing hourly rate of wages" for work of a s~milar character in this locality, as established by Department of Labor and Industrial Relations of the State of Missouri, and as established by the Federal Employment Standards of the Department of Labor. Contractor acknowledges that Contractor knows the prevailing hourly rate of wages for this project because Contractor has obtained the prevailing hourly rate of wages from the contents of Annual Wage Order No. 26 Section 026 in which the rate of wages is set forth. Contractor further agrees that Contractor will keep an accurate record showing the names and occupations of all workers employed in connection with the work to be performed under the terms of this contract. The record shall show the actual wages paid to the workers in connection with the work to be performed under the terms of this contract. A copy of the record shall be delivered to the Purchasing Agent each week. In accordance with Section 290.250, RSMo, Contractor shall forfeit to the City One Hundred Dollars ($1 00.00) for each worker employed, for each calendar day or portion thereof that the worker is paid less than the stipulated rates for any work done under this contract, by Contractor or any subcontractor under the Contractor. 5. Insurance. Contractor shall procure and maintain at its own expense during the life of this contract: A. Workmen's Compensation Insurance for all of its employees to be engaged in work under this contract. B. Contractor's Public Liability Insurance in an amount not less than $3,000,000 for all claims arising out of a single occurrence and $500,000 for any one person in a single accident or occurrence, except for those claims governed by the provisions of the Missouri Workmen's Compensation Law, Chapter 287, RSMo, and Contractor's Property Damage Insurance in an amount not less than $3,000,000 for all claims arising out of a single accident or occurrence and $500,000 for any one person in a single accident or occurrence. C. Automobile Liability Insurance in an amount not less than $3,000,000 for all claims arising out of a single accident or occurrence and $500,000 for any one person in a single accident or occurrence. D. Owner's Protective Liability Insurance. The Contractor shall also obtain at its own expense and deliver to the City an Owner's Protective Liability Insurance Policy naming the City and the City as the insured, in an amount not less than $3,000,000 for all claims arising out of a single accident or occurrence and $500,000 for any one person in a single accident or occurrence, except for those claims governed by the provisions of the Missouri Workmen's Compensation Law, Chapter 287, RSMo. No policy will be accepted which excludes liability for damage to underground structures or by reason of blasting, explosion or collapse. Such policy shall not be required if the City of Jefferson is endorsed as an additional insured under the policies described in Sub-paragraphs B and C above and such are not subject to cancellation or modification without thirty (30) days' notice to the City. E. Subcontracts. In case any or all of this work is sublet, the Contractor shall require the Subcontractor to procure and maintain all insurance required in Sub-paragraphs A, B, and C hereof and in like amounts. F. Scope of Insurance and Special Hazard. The insurance required under Sub-paragraphs B and C hereof shall provide adequate protection for Contractor and its subcontracts, respectively, against damage claims which may arise from operations under this contract, whether such operations be by the insured or by anyone directly or indirectly employed by it, and also against any special hazards which may be encountered in the performance of this contract. NOTE: Paragraph F is construed to require the procurement of Contractor's protective insurance (or contingent public liability and contingent property damage policies) by a general contractor whose subcontractor has employees working on the project, unless the general public liability and property damage policy (or rider attached thereto) of the general contractor provides adequate protection against claims arising from operations by anyone directly or indirectly employed by Contractor. 6. Contractor's Responsibility for Subcontractors. It is further agreed that Contractor shall be as fully responsible to the City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons it directly employs. Contractor shall cause appropriate provisions to be inserted in all subcontracts relating to this work, to bind all subcontractors to Contractor by all the terms herein set forth, insofar as applicable to the work of subcontractors and to give Contractor the same power regarding termination of any subcontract as the City may exercise over Contractor under any provisions of this contract. Nothing contained in this contract shall create any contractual relations between any subcontractor and the City or between any subcontractors. 2 7. Liquidated Damages. The City may deduct Two Hundred Dollars ($200.00) from any amount otherwise due under this contract for every day Contractor fails or refuses to prosecute the work, or any separable part thereof, with such diligence as will ensure the completion by the time above specified, or any extension thereof, or fails to complete the work by such time, as long as the City does not terminate the right of Contractor to proceed. It is further provided that Contractor shall not be charged with liquidated damages because of delays in the completion of the work due to unforeseeable causes beyond Contractor's control and without fault or negligence on Contractor's part or the part of its agents. 8. Termination. The City reserves the right to terminate this contract by giving at least five ( 5) days prior written notice to Contractor, without prejudice to any other rights or remedies of the City should Contractor be adjudged a bankrupt, or if Contractor should make a general assignment for the benefit of its creditors, or if a receiver should be appointed for Contractor or for any of its property, or if Contractor should persistently or repeatedly refuse or fail to supply enough properly skilled workmen or proper material, or if Contractor should refuse or fail to make prompt payment to any person supplying labor or materials for the work under the contract, or persistently disregard instructions of the City or fail to observe or perform any provisions of the contract. 9. City's Right to Proceed. In the event this contract is terminated pursuant to Paragraph 8, then the City may take over the work and prosecute the same to completion, by contract or otherwise, and Contractor and its sureties shall be liable to the City for any costs over the amount of this contract thereby occasioned by the City. In any such case the City may take possession of, and utilize in completing the work, such materials, appliances and structures as may be on the work site and are necessary for completion of the work. The foregoing provisions are in addition to, and not in limitation of, the rights of the City under any other provisions of the contract, city ordinances, and state and federal laws. 10. Indemnity. To the fullest extent permitted by law, the Contractor will defend, indemnify, and hold harmless the City, its elected and appointed officials, employees, and agents from and against any and all claims, damages, losses, and expenses including attorneys' fees arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense (I) is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the work itself) including the loss of use resulting therefrom and (2) is caused in whole or in part by any negligent act or omission of contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person describ~d in this paragraph. 11. Payment for Labor and Materials. Contractor agrees and binds itself to pay for all labor done and for all the materials used in the construction of the work to be completed pursuant to this contract. 12. Supplies. Contractor is hereby authorized and directed to utilize the City's sales tax exemption in the purchase of goods and materials for the project as set out in Section 144.062, RSMo 1986 as amended. 13. Performance and Materialman's Bonds Required. Contractor shall provide a bond to the City before work is commenced, and no later than ten (I 0) days after the execution of this contract, guaranteeing the Contractor's performance of the work bid for, the payment 3 of amounts due to all suppliers of labor and materials, the payment of insurance premiums for workers compensation insurance and all other insurance called for under this contract, and the payment of the prevailing wage rate to all workmen as required by this contract, said bond to be in a form approved by the City, and to be given by such company or companies as may be acceptable to the City in its sole and absolute discretion. The amount of the bond shall be equal to the Contractor's bid. 14. Knowledge of Local Conditions. Contractor hereby warrants that it has examined the location of the proposed work and the attached specifications and has fully considered such local conditions in making its bid herein. 15. Severability. If any section, subsection, sentence, or clause of this contract shall be adjudged illegal, invalid, or unenforceable, such illegality, invalidity, or unenforceability shall not affect the legality, validity, or enforceability of the contract as a whole, or of any section, subsection, sentence, clause, or attachment not so adjudged. 16. Governing Law. The contract shall be governed by the laws of the State of Missouri. The courts of the State of Missouri shall have jurisdiction over any dispute which arises under this contract, and each of the parties shall submit and hereby consents to such courts exercise of jurisdiction. In any successful action by the City to enforce this contract, the City shall be entitled to recover its attorneys' fees and expenses incurred in such action. 17. Contract Documents. The contract documents shall consist of the following: a. This Contract d. Notice to Bidders b. Addenda e. Signed Copy of Bid c. Information for Bidders f. Drawing and/or Sketches This contract and the other documents enumerated in this paragraph, form the contract between the parties. These documents are as fully a part of the contract as if attached hereto or repeated herein. 18. Complete Understanding, Merger. Parties agree that this document, including those documents described in the section entitled "Contract Documents", represent the full and complete understanding of the parties. This contract includes only those goods and services specifically set out. This contract supersedes all prior contracts and understandings between the Contractor and the City. 19. Authorship and Enforcement. Parties agree that the production of this document was the joint effort of both parties and that the contract should not be construed as having been drafted by either party. In the event that either party shall seek to enforce the terms of this contract through litigation, the prevailing party in such action shall be entitled to receive, in addition to any other relief, its reasonable attorneys' fees, expenses and costs. 20. Amendments. This contract may not be modified, changed or altered by any oral promise or statement by whosoever made; nor shall any modification of it be binding upon the City until such written modification shall have been approved in writing by an authorized officer of the City. Contractor acknowledges that the City may not be responsible for paying for changes or modifications that were not properly authorized. 21. Waiver of Breach. Failure to insist upon strict compliance with any of the terms, covenants or conditions herein shall not be deemed a waiver of any such terms, covenants or conditions, nor shall any failure at one or more times be 4 deemed a waiver or relinquishment at any other time or times by any right under the terms, covenants or conditions herein. 22. Assignment. Neither party may sell or assign its rights or responsibilities under the terms of this agreement without the express consent of the remaining party. 23. Nondiscrimination. Contractor agrees in the performance of this contract not to discriminate on the grounds of race, creed, color, national origin or ancestry, sex, religion, handicap, age, or political opinion or affiliation, against any employee of Contractor or applicant for employment, and shall include a similar provision in all subcontracts let or awarded hereunder. 24. Illegal Immigration. Prior to commencement of the work: a. Contractor shall, by sworn affidavit and provision of documentation, affirm its enrollment and participation in a federal work authorization program with respect to the employees working in connection with the contracted services. b. Contractor shall sign an affidavit affirming that it does not knowingly employ any person who is an unauthorized alien in connection with the contracted services. c. If Contractor is a sole proprietorship, partnership, or limited partnership, Contractor shall provide proof of citizenship or lawful presence of the owner prior to issuance of the Notice to Proceed. 25. Construction Safety Program Requirements. a. Contractor shall require all on-site employees to complete the ten-hour safety training program required pursuant to Section 292.675 RSMo, if they have not previously completed the program and have documentation of having done so. All employees working on the project are required to complete the program within sixty (60) days of beginning work on the Project. b. Any employee found on the worksite subject to this section without documentation of the successful completion of the course required under subsection (a) shall be afforded twenty (20) days to produce such documentation before being subject to removal from the project. c. Pursuant to Section 292.675 RSMo., Contractor shall forfeit as a penalty to City Two Thousand Five Hundred Dollars ($2,500.00) plus One Hundred Dollars ($1 00.00) for each employee employed by Contractor or subcontractor, for each calendar day, or portion thereof, such employee is employed without the required training. The penalty shall not begin to accrue until the time periods in subsections (a.) and (b.) have elapsed. City shall withhold and retain from the amount due Contractor under this Contract, all sums and amounts due and owing City as a result of any violation of this section. 26. Federal Funds The City of Jefferson is a recipient of federal grant funds. Therefore, the grant requirements in Exhibit B shall be fully considered in preparing responses and performing work under any resulting award. 27. Notices. All notices required or permitted hereinunder and required to be in writing may be given by first class mail addressed to the following addresses. The date and delivery of any notice shall be the date falling on the second full day after the day of its mailing. 5 If to the City: City of Jefferson Department of Law 320 East McCarty Street Jefferson City, Missouri, 6510 l CITY OF JEFFERSON, MISSOURI City Administrator Date: ---- AITEST: City Clerk APPROVED AS TO FORM : Ci~ If to the Contractor: Automotive Technology, Inc . Doug Slattery 544 Mae Court Fenton, MO 63026 AUTOMOTIVE TECHNOLOGY, INC. Title: Date: ---- ATTEST: Title: 6 EXHIBIT A Automotive Technology, Inc. 544 Mac Court. Fento n. MO 63026 636 -343-8101 • fax: 636 -343 -5597 • Toll free: 1-800 -875 -8101 ww\\ .a utomoti vctechno log y.com E-mail: doug@automotive techn ology .co m C it y o f Jefferson C ity 820 E. iV!il lt:r St. .Jefferso n C it y. lvi O 6510 I iV!od 35 in -gro un d lin I '2 1'2 7 12'2 :\Iod 35 L abor & Materia ls : $69,950 Rcmm·c ex isting lift fr om pit in clu d in g all chain. c~ lind crs and black pipin g Pump o il fro m trc:nch and tank s ( 1-abovc grou nd. !-below ground int o 55 ga llon dr um s. lea ve for customer to d ispose of. Renwvc chasl.! pipe cove r plates. s tee l piping and s up ers tru ctu res. S a\\ CU t noor 10' wide x 32'-.t" Long and fr om fr on t of lirt to MC P loca tion at front wa ll. .lack hamma o ut co ncr e te. remove with backhoe a nd dump ofTs ite Excav at e to app ro priate e lev ation per pi t drawings and expose existing pit walls as you go Jack ou t cxis tin g walls. rem ove spo il s with bac khoe . d um p s po il s o fTsit e Rem ove ex istin g li xcd po sition cyl ind er a nd moveab le cy li nde r S oil s e n g in eer t o inspect ex p osed pit to ensure verify so il s arc as exp ected pc1· r epo rt In st a ll s pec ili cd gcotcxti le (per so ils engineer} between pea g ravel and concrete Backfi ll exist in g pit leng th that is fr o m 6"6 BIT to s ·B rr '' ith % .. min us rock and compact with drone compactor Pit is no" ready lor nor mal i\·lod 35 installati on i\•l akc linal ai r co nnl.!ctio ns to Jv iCP froml.!xis ting airline o n wall. Elec trician to bri ng power to th e 1'v iCP (Uy othcrs)-'20Sv . 3phz ,\dd Oil. bleed . run an d test li ft. Train cu sto mer on ope rati on . N01 included: Permit Stam pe d drawi ngs Elcctrica l co nn ec t io ns. by ot her s (pmv<..:r In Master Co ntrol Pancl -1'v1CP) Stru c tural /So il condit io n iss ue s that require rcnh:diation (\\iller. cav ~::-in. undt:rmini ng of exis ting ll oo r ... ) Unde rgro und uti lities cncountcrl.!d. requir ing repair !\dditional concrete rcquir ctl outside the I o·w X 32"4"" I CUtOllt. \\'cckcnds. ll olidays or req uir ed OT Non-;\ Tl labor Automotive Technology, Inc. 544 Mae Court. Penton . MO 63026 -\utumotivt• Tt!t'hnology lnl'. 636-343-810 I o Fax: 636-343 -5597 • Toll f ree: 1-800-875-8 10 I W\\ \\'.atttomotivetec h no logy.com E-mai I: doug @a ut omo tivetechnolog y.e orn 28 December 2022 To: 13ritt Smith Jefferson Cit: Pub lic Works Cc: Sh:l\\ n St umpe Subject: wlnd35 inswl lation pricing explanation Enc lo s ure: Updated iVIod35 Ins tallation quote Brill \V hc n we sta n ed worki ng on this proj ect. we gave yo u n budge t ins tall ation price of$50.000 for the l ift install. Th is number was based o n ou r las t installa t ion done in 2020. With the damage to your ex isting lif't (co ncrete bowing in severe!~) we reco m me nded a soi ls anal ysis to de term ine what ''as caus ing the lift da mage to ensure it would no t affect the ne\\ lift in s tallat io n. \Vc said we would provide an actual installation quote once we knc'' the results of the so il s ana l: sis. The soils analysis is now complete. 1\ lot has happened since 2020 and ou r las t Mod35 insta llation. Prices/costs have increased on everyth ing. Specifi cally : \tla tc r ia ls (conc rete. rcbar. rock. PVC . plywood ... ) have inc reased 150-250%,. Labor. rema l equ ip men t. excavatio n. fu el-have increased ove r 25% 1\s a result of thc~e increased costs. the 2022 installation price is $68.950. The so il s analysis requires the usc or a non-woven gcotcxtilc to sep arate the pea grave l rrom the existing soil /clay. We will also need a visual inspection of the excavation b~ a soils enginccr to ensure the soils arc as expected and wil l bear the lift weigh t. The adder lor bot h of' these is $1.000. The total iv lod35 insta llation quote is $69 .950 ($1.305 1css than our prev ious email-was able to lind the noiH\Ovcn fabric locally :tnd fo r a lot less). \Vc hope this helps c.xplain the di f'f crcm:e be tween our o riginal budget numbe r and the ac t ual numbe rs. Ple:tsc let US kilO\\ of any more ques t io ns . Since re!) Doug Slaucry Pres ident 1 EXHIBIT B-FEDERAL LANGUAGE No Government Obligation to Third Parties- ( 1) The City and contractor acknowledge and agree that, notwithstanding any concurrence by the US Government in or approval of the solicitation or award of the underlying contract, absent the express written consent by the US Government, the US Government is not a party to this contract and shall not be subject to any obligations or liabilities to the City, the contractor, or any other party (whether or not a party to that contract) pertaining to any matter resulting from the underlying contract. (2) The contractor agrees to include the above clause in each subcontract financed in whole or in part with FT A assistance. It is further agreed that the clause shall not be modified, except to identify the subcontractor who will be subject to its provisions. Program Fraud and False or Fraudulent Statements or Related Acts - (1) The contractor acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as amended, 31 USC 3801 et seq. and USDOT regulations, "Program Fraud Civil Remedies," 49 CFR 31, apply to its actions pertaining to this project. Upon execution of the underlying contract, the contractor certifies or affirms the truthfulness and accuracy of any statement it has made, it makes, it may make, or causes to be made, pertaining to the underlying contract or FT A assisted project for which this contract work is being performed. In addition to other penalties that may be applicable, the contractor further acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submittal, or certification, the US Government reserves the right to impose the penalties of the Program Fraud Civil Remedies Act ( 1986) on the contractor to the extent the US Government deems appropriate. (2) If the contractor makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submittal, or certification to the US Government under a contract connected with a project that is financed in whole or in part with FTA assistance under the authority of 49 USC 5307, the Government reserves the right to impose the penalties of 18 USC 1001 and 49 USC 5307(n)(1) on the contractor, to the extent the US Government deems appropriate. (3) The contractor shall include the above two clauses in each subcontract financed in whole or in part with FT A assistance. The clauses shall not be modified, except to identify the subcontractor who will be subject to the provisions. Access to Records and Reports -The following access to records requirements apply to this contract: 1. Where the City is not a State but a local government and is an FT A recipient or a subgrantee of FT A recipient in accordance with 49 CFR 18.36(i), the contractor shall provide the City, the FT A, the US Comptroller General or their authorized representatives access to any books, documents, papers and contractor records which are pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions. The contractor shall also, pursuant to 49 CFR 633.17, provide authorized FTA representatives, including any PMO contractor, access to the contractor's records and construction sites pertaining to a capital project, defined at 49 2 USC 5302(a}1, which is receiving FTA assistance through the programs described at 49 USC 5307, 5309 or 5311. 2. Where a City which is an FT A recipient or a sub grantee of FT A recipient in accordance with 49 USC 5325(a) enters into a contract for a capital project or improvement (defined at 49 USC 5302(a)(l )) through other than competitive bidding, the contractor shall make available records related to the contract to the City, the Secretary ofUSDOT and the US Comptroller General or any authorized officer or employee of any of them for the purposes of conducting an audit and inspection. 3. The contractor shall permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. 4. The contractor shall maintain all books, records, accounts and reports required under this contract for a period of not less than three (3) years after the date of termination or expiration of this contract, except in the event of litigation or settlement of claims arising from the performance of this contract, in which case contractor agrees to maintain same until the City, FTA Administrator, US Comptroller General, or any of their authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related thereto. Re: 49 CFR 18.39(i)(11 ). Federal Changes -The contractor shall comply with all applicable FT A regulations, policies, procedures and directives, including without limitation those listed directly or by reference in the Master Agreement between the City and FT A, as they may be amended or promulgated from time to time during the term of the contract. The contractor's failure to comply shall constitute a material breach of the contract. Civil Rights Requirement The following requirements apply to the underlying contract: (1) Nondiscrimination-In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6102, section 202 of the Americans with Disabilities Act of 1990,42 U.S.C. § 12132, and federal transit law at 49 U.S.C. § 5332, the contractor agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability. In addition, the contractor agrees to comply with applicable federal implementing regulations and other implementing requirements FT A may issue. (2) Equal Employment Opportunity -The following equal employment opportunity requirements apply to the underlying contract: (a) Race, Color, Creed, National Origin, Sex -In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and federal transit laws at 49 U.S.C. § 5332, the contractor agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 CFR Parts 60 et seq., (which implement Executive Order No. 11246, "Equal 3 Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable federal statutes, executive orders, regulations, and federal policies that may in the future affect construction activities undertaken in the course of the Project. The contractor agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. In addition, the contractor agrees to comply with any implementing requirements FTA may issue. (b) Age -In accordance with section 4 of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § § 623 and federal transit law at 49 U.S.C. § 5332, the contractor agrees to refrain from discrimination against present and prospective employees for reason of age. In addition, the contractor agrees to comply with any implementing requirements FT A may issue. (c) Disabilities -In accordance with section 1 02 of the Americans with Disabilities Act, as amended, 42 U.S.C. § 12112, the contractor agrees that it will comply with the requirements of U.S. Equal Employment Opportunity Commission, "Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act," 29 CFR Part 1630, pertaining to employment of persons with disabilities. In addition, the contractor agrees to comply with any implementing requirements FTA may issue. (3) The contractor also agrees to include these requirements in each subcontract financed in whole or in part with federal assistance provided by FT A, modified only if necessary to identify the affected parties. Termination- Termination for Default If the contractor refuses or fails to prosecute the work or any separable part, with the diligence that will insure its completion within the time specified, or any extension, or fails to complete the work within this time, or if the contractor fails to comply with any other provisions of this contract, the City may terminate this contract for default. The City shall terminate by delivering to contractor a notice of termination specifying the nature of default. In this event, the City may take over the work and compete it by contract or otherwise, and may take possession of and use any materials, appliances, and plant on the work site necessary for completing the work. The contractor and its sureties shall be liable for any damage to the City resulting from the contractor's refusal or failure to complete the work within specified time, whether or not the contractor's right to proceed with the work is terminated. This liability includes any increased costs incurred by the City in completing the work. The contractor's right to proceed shall not be terminated nor shall the contractor be charged with damages under this clause if: 1. Delay in completing the work arises from unforeseeable causes beyond the control and without the fault or negligence of the contractor. Examples of such causes include: acts of 4 God, acts of the City, acts of another contractor in the performance of a contract with the City, epidemics, quarantine restrictions, strikes, freight embargoes; and 2. Contractor, within 10 days from the beginning of any delay, notifies the City in writing ofthe causes of delay. If in the City's judgment, delay is excusable, the time for completing the work shall be extended. The City's judgment shall be final and conclusive on the parties, but subject to appeal under the Disputes clauses. If, after termination of the contractor's right to proceed, it is determined that the contractor was not in default, or that the delay was excusable, the rights and obligations of the parties will be the same as if termination had been issued for the City's convenience. Disadvantaged Business Enterprise (DBE) - a. This contract is subject to the requirements of Title 49, Code of Federal Regulations, Part 26, Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. The national goal for participation of Disadvantaged Business Enterprises (DBE) is 10%. The City's overall goal for DBE participation is listed elsewhere. If a separate contract goal for D BE participation has been established for this procurement, it is listed elsewhere. b. The contractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of this contract. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the municipal corporation deems appropriate. Each subcontract the contractor signs with a subcontractor must include the assurance in this paragraph (see 49 CFR 26.13(b)). c. Since no separate contract goal has been established, the contractor will be required to report its DBE participation obtained through race-neutral means throughout the period of performance. d. The contractor is required to pay its subcontractors performing work related to this contract for satisfactory performance of that work no later than 30 days after the contractor's receipt of payment for that work from the City. In addition, the contractor may not hold retainage from its subcontractors or must return any retainage payments to those subcontractors within 30 days after the subcontractor's work related to this contract is satisfactorily completed or must return any retainage payments to those subcontractors within 30 days after incremental acceptance of the subcontractor's work by the City and contractor's receipt of the partial retainage payment related to the subcontractor's work. e. The contractor must promptly notify the City whenever a DBE subcontractor performing work related to this contract is terminated or fails to complete its work, and must make good faith efforts to engage another DBE subcontractor to perform at least the same amount of work. The contractor may not terminate any DBE subcontractor and perform that work through its own forces or those of an affiliate without prior written consent of the City. 5 Incorporation of Federa l Transit Administration (FTA) Terms -A ll U SDOT-required contractual provisions, as sta ted in FTA Cir cular 4220.1F , are hereby in corporated b y r efe r e nce . A n ythin g to the contrary herein notwiths tanding, all FTA mandated te rms shall be deemed to contro l in the event of a conflict with other pro v is ions contained in this contract. The contractor s hall not p e rform any act, fail to perform any act, or r efu se to comp ly with any reques t t ha t wou ld cause the C ity to be in v iolation of FT A term s and cond itions. Government-wide Debarment and Suspension (Non procurement)-The C ity agrees to comply w ith the re quire me nts of2 C.F .R. part 180, s ubpa rt C, as adopted and supplemented b y U.S. DOT re g ul ation s a t 2 C.F.R. part 1200, which includes th e following: (a) It will not e nter into any arrangement to participate in the development or imp lementation of contracts with any contractor that is d e barred or suspended exce pt as author ized by: 1 U.S. DOT regulations, "Nonprocurement Suspension and D e ba rm ent," 2 C.F .R. patt 1200 , 2 U.S. OMB , "Guide lines to Age ncies on Government-w ide Debarme nt a nd Suspension (Nonprocurement)," 2 C .F.R. patt 180, including a ny amendments thereto , and 3 Executi ve Orders Nos. 12549 and 12689 , "Deba1ment and Suspension," 3 1 U .S.C . § 610 1 note , (b) It wi ll review the U.S . GSA "System fo r Award Management," https://www.sa m.gov, if required by U.S. DOT regul a ti o ns , 2 C.F.R. p art 1200. T he contractor a lso w ill comply w ith federal debarment a nd s uspens ion requirements when hiring subcontractors, and w ill re v iew the "Syste m for Award Management" at https ://www.sam.gov , if necessar y, to comp ly w ith U .S. DOT regul a tions, 2 C.F.R . patt 1200, and (2). Lobbying -AppLic ability-Construction/Architectural and Engin eering/Acquisition of Ro lling Stock/Profess ional Servi ce Con tract/Ope rat io nal Service Contract/Turnkey contracts over $10 0,000 Lobbying -Byrd A nti-Lobb y in g Amendment, 3 1 U.S.C. 1352, as amended b y the Lobbying Disclosure Act of 1995 , P .L. 104-65 [to be codi'fi ed a t 2 U.S.C. § 1601 , e t seq.]-Contractors w ho apply o r bid for an award of $100 ,000 o r more s hall 'fil e th e certification required by 49 CFR p a rt 20 , "New R estri c tion s on Lobbying." Each tier certifies to the tier a bo ve that it w ill not and has not used federal appropriated funds to pay any p erso n or o r gani zation for influencing or atte mpting to influe nc e an officer o r employee of a ny agency, a member of Congress, officer or e mplo yee of Con gress, or an employee of a m emb er of Co n g ress in connection with obtaining a n y fede ral co ntract, g rant or a ny othe r award cove re d by 3 1 U.S .C. 1352. Each ti e r s ha ll al so di sc lose the name of any regis tra nt und e r the Lobbying Di sclos ure Act of 1995 w h o has m a d e lobby in g contacts on it s be half w ith non-fed e ra l funds w ith respect to that fe de ral contract, gr ant or awa rd covered by 3 1 U.S .C . 1352. S uch di sc los ures ru·e forward e d from tier to ti e r up to the C ity. Dav is-Bacon and C opeland Anti-Kickback Acts (1) M inimum wages - (i) A ll la bore rs and m ec hanics employed o r wo rkin g up o n th e s ite of the work (or under th e United States H ous ing Act of 1937 o r und e r the H ous in g Act of 1949 in the co ns truction or 6 development of the project), will be paid unconditionally and not less often than once a .week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1 (b )(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed The wage determination (including any additional classifications and wage rates conformed under paragraph (l)(ii) of this section) and the Davis- Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. (ii)(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) Except with respect to helpers as defined as 29 CFR 5.2(n)(4), the work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination; and (4) With respect to helpers as defined in 29 CFR 5.2(n)(4), such a classification prevails in the area in which the work is performed. (B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 7 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt an~ so advise ~h~ cont~acti?g officer or will notify the contracting officer within the 30-day penod that addttlonal ttme IS necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30- day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(l)(ii) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (v)(A) The contracting officer shall require that any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefor only when the following criteria have been met: ( 1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour 8 Division, Employment Standards Administration, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination with 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(v) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (2) Withholding -The City shall upon its own action or upon written request of an authorized representative ofthe Department of Labor withhold or cause to be withheld from the contractor under this contract or any other federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, the grantee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (3) Payrolls and basic records- (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 193 7, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section l(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(l )(iv) that the wages of any laborer or mechanic include the amount of any costs 9 reasonably anticipated in providing benefits under a plan or program described in section 1 (b )(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the City for transmission to the Federal Transit Administration. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under section 5.5(a)(3)(i) of Regulations, 29 CFR part 5. This information may be submitted in any form desired. Optional Form WH-347 is available for this purpose and may be purchased from the Superintendent of Documents (Federal Stock Number 029-005-00014-1), U.S. Government Printing Office, Washington, DC 20402. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. (B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: ( 1) That the payroll for the payroll period contains the information required to be maintained under section 5.5(a)(3)(i) of Regulations, 29 CFR part 5 and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (a)(3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the Federal Transit Administration or the Department of Labor, and shall permit such 10 representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5 .12. (4) Apprentices and trainees- (i) Apprentices -Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Bureau of Apprenticeship and Training, or with a State Apprenticeship Agency recognized by the Bureau, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Bureau of Apprenticeship and Training or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator of the Wage and Hour Division of the U.S. Department of Labor determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Bureau of Apprenticeship and Training, or a State Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees -Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan 11 approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity -The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended and 29 CFR part 30. (5) Compliance with Copeland Act requirements -The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. ( 6) Subcontracts -The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the Federal Transit Administration may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract termination: debarment-A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5 .12. (8) Compliance with Davis-Bacon and Related Act requirements-All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. (9) Disputes concerning labor standards -Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives. 12 ( 1 0) Certification of Eligibility - (i) By entering into this contract, contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) . . (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii) The penalty for making false statements is prescribed in 18 USC 1001. Energy Conservation -The contractor shall comply with mandatory standards and policies relating to energy efficiency, stated in the state energy conservation plan issued in compliance with the Energy Policy & Conservation Act. Recycled Products -The contractor agrees to comply with all the requirements of Section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended (42 U.S.C. 6962), including but not limited to the regulatory provisions of 40 CFR Part 24 7, and Executive Order 12873, as they apply to the procurement of the items designated in Subpart B of 40 CFR Part 247. Access Requirements for Persons with Disabilities -The contractor shall comply with 49 USC 5301 (d), stating federal policy that the elderly and persons with disabilities have the same rights as other persons to use mass transportation services and facilities and that special efforts shall be made in planning and designing those services and facilities to implement that policy. The contractor shall also comply with all applicable requirements of Sec. 504 of the Rehabilitation Act (1973), as amended, 29 USC 794, which prohibits discrimination on the basis of handicaps, and the Americans with Disabilities Act of 1990 (ADA), as amended, 42 USC 12101 et seq., which requires that accessible facilities and services be made available to persons with disabilities, including any subsequent amendments thereto. Prompt Payment-The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 30 days from the receipt of each payment the prime contract receives from the City. The prime contractor agrees further to return retainage payments to each subcontractor within 30 days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above referenced time frame may occur only for good cause following written approval of the City. This clause applies to both DBE and non-DBE subcontracts. Compliance With Federal Regulations -All US DOT -required contractual provisions, as set forth in FT A Circular 4220.1 F, are incorporated by reference. Anything to the contrary herein notwithstanding, FT A mandated terms shall control in the event of a conflict with other provisions contained in this Agreement. Contractor shall not perform any act, fail to perform any act, or refuse to comply with any grantee request that would cause the recipient to be in violation ofFTA terms and conditions. Contractor shall comply with all applicable FTA regulations, policies, procedures and directives, including, without limitation, those listed directly or 13 incorporated by reference in the Master Agreement between the recipient and FT A, as may be amended or promulgated from time to time during the term of this contract. Contractor's failure to so comply shall constitute a material breach of this contract. BILL SUMMARY BILL NO: 2022-098 SPONSOR: Councilmember Schreiber SUBJECT: Marijuana Regulations DATE INTRODUCED: January 17. 2023 DEPARTMENT DIRECTOR(S);.,: ------:--+-+------------ CITY ADMINISTRATOR:____:s:::z.....:::=_ _ _L_~~:.!..4~:....__ _________ _ Staff Recommendation: Approve. Summary: Amending Chapter 17 and 18 of the City Code to amend existing regulations and added new regulations regarding Marijuana. Origin of Request: City Attorney Department Responsible: Law PERSON RESPONSIBLE: RYAN MOEHLMAN Background Information: This Ordinance would amend Chapters 17 and 18 of the City Code to amend existing regulations on Medical Marijuana and to add new regulations which would allow for adult-use recreational marijuana subject to limitation set forth in Amendment 3 to the Missouri Constitution , approved by voters in November 2022. The amendments to Chapter 17 impose restrictions on personal use of adult use recreational marijuana as allowed by Amendment 3 . These restrictions are generally i n the area of now allowing use in public spaces , prohibiting possession and use by minors, prohibiting sales or distribution to minors , prohibiting operation of motor vehicles while under the influence , and prohibiting use in a manner that harms others . The amendments to Chapter 18 amending current business license regulations regarding medical marijuana facilities and converts them to contemplate the new recreational marijuana industry, including the new combined medical/recreational marijuana facilities (called under Amendment 3 , "Comprehensives Facilities "), consistent w ith the authorized reserve to local governments under the Missouri Constitution. FISCAL INFORMATION: This bill would establish new business license fee for microbusiness marijuana facilities (recreational marijuana only; $350 annually) and comprehensive facilities (combined medical and recreational marijuana ; $600 annually). Editor’s note: Deleted language shown thus. Added language shown thus. BILL NO. 2022-098 SPONSORED BY Councilmember Schreiber ORDINANCE NO. AN ORDINANCE AMENDING AND ENACTING REGUALTION REGARDING MARIJUANA. WHEREAS, on November 8, 2022, the electors of the State of Missouri approved Amendment 3 to the Missouri Constitution enacting Section 2 of Article XIV of the Missouri Constitution effective December 8, 2022; and WHEREAS, the newly enacted Article XIV, specifically Sections 1 and 2 of Article XIV of the Missouri Constitution, authorize the City of Jefferson, Missouri to impose, by ordinance, certain limitations regarding marijuana within the city limits of the City of Jefferson, Missouri; and WHEREAS, the City Council finds that it is in the best interests of the citizens of the City of Jefferson, Missouri to impose such limitations regarding marijuana within the city limits of the City of Jefferson, Missouri. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Article XIV (Offenses Against Public Health and Safety) of Chapter 18 (Miscellaneous Provisions and Offenses) of the Jefferson City Code is hereby amended to read as follows: ARTICLE XIV. - OFFENSES AGAINST PUBLIC HEALTH AND SAFETY Sec. 18-280. - Definitions. For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed them by this section: The terms “administer,” “comprehensive facility,” “comprehensive marijuana cultivation facility,” “comprehensive marijuana dispensary facility,” “comprehensive marijuana-infused products manufacturing facility,” “church,” “daycare,” “marijuana,” “marijuana accessories,” “marijuana facility,” “marijuana infused products,” “marijuana microbusiness facility,” “marijuana testing facility,” “medical facility,” “medical marijuana cultivation facility,” “medical marijuana dispensary facility,” “medical marijuana-infused products manufacturing facility,” “medical use,” “primary caregiver,” and “qualifying patient,” shall have the definition set forth in article XIV, sections 1 and 2 of the Missouri Constitution. The terms "administer," "marijuana," "marijuana infused products," "medical marijuana cultivation facility," "medical marijuana dispensary facility," "medical marijuana-infused products manufacturing facility," "medical marijuana testing facility," "medical use," "primary caregiver" and "qualifying patient," shall have the definition set forth in article XVI, section 1 of the Missouri Constitution. Editor’s note: Deleted language shown thus. Added language shown thus. Controlled substance. Any drug or substance included in RSMo §§ 195.005 through and including section 195.425. Drug paraphernalia. All equipment, products and materials of any kind which are used, intended for use, or designed for use, in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, storing, containing, concealing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance or an imitation controlled substance in violation of RSMo §§ 195.005 to 195.425. Identification card. A document, whether in paper or electronic format, issued by the Missouri Department of Health and Senior Services, or its successor agency, that authorizes a qualifying patient, primary caregiver, or employee or contractor of a licensed medical marijuana facility to access medical marijuana as provided by law. “Identification card” shall also include similar cards issued by another state, but only to the extent required under state or federal law. Medical marijuana facility. Either a “medical marijuana cultivation facility,” “medical marijuana dispensary facility,” “medical marijuana-infused products manufacturing facility,” or a “medical marijuana testing facility,” as defined in article XIV, section 1 of the Missouri Constitution, or a “medical marijuana transportation facility” as defined in chapter 35, the Zoning Code. Public place. Any public or private property, or portion of public or private property, that is open to the general public, including, but not limited to, sidewalks, streets, bridges, parks, schools, and businesses. However, for purposes of designating a nonpublic place within a public place, the owner or entity with control of any such property may, but is not required to, provide one or more enclosed, private spaces where one qualifying patient and, if required by the owner or entity with control of any such prop erty, a representative of such owner or entity, may congregate for the qualifying patient to consume medical marijuana. The qualifying patient may be accompanied by the family of the qualifying patient, the qualifying patient's primary caregiver, and/or the qualifying patient's physician. The owner or entity with control of any such property may provide such a space by individual request or designate such a space for ongoing use and may limit use of medical marijuana in that space to uses that do not produc e smoke. Any such permission shall be given in writing and provided to the qualifying patient or publicly posted prior to a qualifying patient's use of medical marijuana in that space. Nothing herein shall allow conduct in violation of chapter 15, article III, the Jefferson City Clean Indoor Air Ordinance. Sec. 18-281. - Possession of marijuana; penalty. A. It is unlawful for any person to possess any amount of marijuana except as authorized by Section 18-2803 through 18-289. B. In addition to any fine or penalty that may be imposed on a person for a violation of the provisions of Section 18-280 through 18-289, violations of Section 18-280 through 18-289 may subject such person to forfeiture of marijuana, as may be allowed under Article XIV of the Missouri Constitution. Any person violating any provision of this section, upon conviction, shall be fined not less than $100.00 no more than $500.00, or shall be imprisoned for three months, or shall be both fined and sentenced. Sec. 18-282. - Unlawful use of drug paraphernalia; penalty. A. It is unlawful for any person to use, or to possess with intent to use, drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance or an imitation controlled substance in violation of §§ 195.005 to 195.425, RSMo, except as authorized by Section 18-2803 through 18-289. Editor’s note: Deleted language shown thus. Added language shown thus. B. Any person violating any provision of this section, upon conviction, shall be fined not less than $100.00 no more than $500.00, or shall be imprisoned for three months, or shall be both fined and sentenced. Sec. 18-283. - Medical marijuana. A. Possession of medical marijuana. 1. A qualified patient in possession of a valid qualified patient identification card shall be allowed to possess marijuana in any amount allowed by state law. 2. A primary caregiver of a qualified patient shall be allowed to possess any amount of marijuana allowed by state law when transporting marijuana to a qualified patient(s) or when accompanying a qualified patient(s). 3. An owner or an employee of a medical marijuana facility shall be allowed to possess any amount of marijuana allowed by state law within the enclosed building licensed as such, or when delivering directly to the residence of a qualified patient, the residence of a primary caregiver of a qualified patient, or another medical marijuana facility. a. The term “directly” shall mean the shortest possible practicable route from the medical marijuana facility to the permitted destination or destinations, without any voluntary detours or additional stops. B. Possession of drug paraphernalia related to medical marijuana. 1. A qualified patient in possession of a valid qualified patient identification card shall be allowed to possess drug paraphernalia for the purposes of administering marijuana. 2. A qualified patient or a primary caregiver of a qualified patient with a valid medical marijuana cultivation card shall be allowed to possess drug paraphernalia for the purposes of cultivating marijuana. C. Failure to produce medical marijuana identification card. 1. Any person who in possession of medical marijuana shall, immediately upon the request of any law enforcement officer, produce a valid identification card which allows such possession. Any person who fails to immediately produce such an identification card upon request shall be guilty of the offense of failure to produce a medical marijuana identification card. 2. It shall be illegal for any person to possess a fraudulent or altered medical marijuana identification card. D. Disposal of medical marijuana. No person shall dispose of marijuana or marijuana-Infused products in an unsecured waste receptacle not in possession and control of a qualifying patient, primary caregiver, or licensed medical marijuana facility and designed to prohibit unauthorized access. E. Residential cultivation. To the extent allowed by State law, marijuana for medicinal purposes may be cultivated in a residential structure, provided: 1. The structure is the primary residence of a primary caregiver or qualifying patient and the marijuana is grown solely for the use of the qualifying patient who resides there or who is under the care of the primary caretaker. Editor’s note: Deleted language shown thus. Added language shown thus. 2. The residence has operating systems to assure that the emission of fumes or vapors connected with the cultivation are not allowed out of the building, or if the residence is in a multifamily building, that such fumes and vapors are not allowed into any other residence. 3. The cultivation must comply with the security and other requirements of state law and the rules of the Department of Health and Senior Services. 4. The resident has notified the City Clerk, including providing proof of eligibility, on a form provided by the City Clerk, so that law enforcement and code officials will be aware that the cultivation is lawfully taking place. F. Residential and nonpublic consumption. Qualifying patients may administer medical marijuana in their private residence, or in the residence of another with permission, or any nonpublic place described in section 18-230, but may not administer marijuana in such a manner that marijuana smoke or odor exits the residence or nonpublic place. In a multifamily or similar dwelling, medical marijuana may not be administered in any common area. G. Public places. No person shall administer medical marijuana in a public place. H. Public nuisances. 1. The smell or noxious odor emitted from smoking, consumption, or cultivation of marijuana by a person possessing a valid state-issued license shall be treated as a public nuisance. Any odors emitted from cultivating or consuming marijuana shall be treated as a public nuisance. 2. It shall be unlawful for any person or entity to cultivate marijuana in such a manner that constitutes a public nuisance. A public nuisance may be deemed to exist if cultivating marijuana produces light, glare, heat, noise, odor, or vibration that is detrimental to public health, safety, or welfare, or interferes with the reasonable enjoyment of life and property. Sec. 18-284. - Transportation of medical marijuana. A. Medical marijuana shall not be carried in public except: 1. In the original unopened package if purchased from a licensed dispensary, or 2. In an unopened container with the original packaging, if purchased from a licensed dispensary, or 3. In a sealed container with the name of the cultivator if produced by home cultivation. B. No medical marijuana shall be transported in the passenger compartment of any vehicle within reach of the driver or any passenger unless the medical marijuana is: 1. In an unopened package from a licensed dispensary; or 2. In a locked compartment. C. Subsections A and B of this section shall not apply to the transportation of medical marijuana by a licensed medical marijuana transportation facility or its employees in the course of their duties. Sec. 18-285. – Personal Use of Marijuana Editor’s note: Deleted language shown thus. Added language shown thus. A. Except as provided in this section, the following acts by a person at least twenty-one years of age are not unlawful: 1. Purchasing, possessing, consuming, using, ingesting, inhaling, processing, transporting, delivering without consideration, or distributive without consideration three ounces or less of dried, unprocessed marijuana, or its equivalent; 2. Possessing, transporting, planting, cultivating, harvesting, drying, processing, or manufacturing no more than six flowering marijuana plants, six non-flowering marijuana plants (over fourteen inches tall), and six clones (plants under fourteen inches tall) provided the person is registered with the Department of Health and Senior Services for cultivation of marijuana plants, provided: i. The plants and any marijuana produced by the plants in excess of three ounces are kept at one private residence, are in a locked space, and are not visible by normal, unaided vision from a public place, and ii. Not more than twice the number of allowable plants under this paragraph (b) are kept in or on the grounds of a private residence at one time. 3. Assisting another person who is at least twenty-one years of age in, or allowing property to be used for. any of the acts permitted by this section; and 4. Purchasing, possessing, using, delivering, distributing, manufacturing, transferring, or selling to persons twenty-one years of age or older marijuana accessories. B. It shall be unlawful to deliver or distribute marijuana or marijuana accessories, with or without consideration, to a person younger than twenty-one years of age. C. It shall be unlawful to purchase, possess, use, or transport marijuana accessories, with or without consideration, to a person younger than twenty-one years of age. D. It shall be unlawful for a person under the age of twenty-one years of age to possess, use, ingest, inhale, transport, deliver, or distribute marijuana; E. It shall be unlawful to possess, deliver, or distribute more than three ounces of a marijuana by a single individual. F. It shall be unlawful for a person to operate or be in physical control of any motor vehicle, train, aircraft, motorboat, or other motorized form of transport while under the influence of marijuana. Notwithstanding the foregoing, a conviction of a person who is at least twenty- one years of age for any applicable offense shall require evidence that the person was in fact under the influence of marijuana at the time the person was in physical control of the motorized form of transport and not solely on the presence of tetrahydrocannabinol (THC) or THC metabolites, or a combination thereof, in the person’s systems. G. It shall be unlawful to consume marijuana while operating or being in physical control of a motor vehicle, train, aircraft, motorboat, or other motorized form of transport while it is being operated. H. It shall be unlawful to smoke marijuana within a motor vehicle, train, aircraft, motorboat, or other motorized form of transport while it is being operated. Editor’s note: Deleted language shown thus. Added language shown thus. I. It shall be unlawful to possess or consume marijuana or possess marijuana on the grounds of a public or private preschool, elementary or secondary school, institution of higher education, in a school bus, or on the grounds of any correctional facility. J. It shall be unlawful to smoke marijuana in a location where smoking tobacco is prohibited. K. It shall be unlawful to consume marijuana in a public place. L. It shall be unlawful to consume marijuana in such a manner that marijuana smoke or odor exits a residence or nonpublic place where consumption of marijuana is otherwise lawful. In a multifamily residence or similar dwelling, marijuana may not be administered in any common area. M. It shall be unlawful to undertake any task while under the influence of marijuana, if doing so would constitute negligence, recklessness, or professional malpractice. N. It shall be unlawful to perform solvent-based extractions on marijuana using solvents other than water, glycerin, propylene glycol, vegetable oil, or food-grade ethanol, unless licensed for the activity by the Department of Health and Senior Services. Sec. 18-286. – Public Nuisances. A. The smell or noxious odor emitted from smoking, consumption, or cultivation of marijuana by a person shall be treated as a public nuisance. Any odors emitted from cultivating or consuming marijuana shall be treated as a public nuisance. B. It shall be unlawful for any person or entity to cultivate marijuana in such a manner that constitutes a public nuisance. A public nuisance may be deemed to exist if cultivating marijuana produces light, glare, heat, noise, odor, or vibration that is detrimental to public health, safety, or welfare, or interferes with the reasonable enjoyment of life and property. C. It shall be unlawful for any person, owner of a parcel of real property or person authorized to exercise control over a parcel of real property to create, maintain, allow, or suffer a public nuisance. Section 2. Article X (Medical Marijuana Facilities) of Chapter 18 (Licenses, Taxation and Miscellaneous Business Regulations) of the Jefferson City Code is hereby amended by renaming such Article and amending such Article to read as follows: ARTICLE X – MARIJUANA BUSINESSES Sec. 17-400. - Definitions The terms “administer,” “comprehensive facility,” “comprehensive marijuana cultivation facility,” “comprehensive marijuana dispensary facility,” “comprehensive marijuana-infused products manufacturing facility,” “church,” “daycare,” “marijuana,” “marijuana accessories,” “marijuana facility,” “marijuana infused products,” “marijuana microbusiness facility,” “marijuana testing facility,” “medical marijuana cultivation facility,” “medical marijuana dispensary facility,” “medical marijuana-infused products manufacturing facility,” “medical use,” “primary caregiver,” and “qualifying patient,” shall have the definition set forth in article XIV, sections 1 and 2 of the Missouri Constitution. Editor’s note: Deleted language shown thus. Added language shown thus. The terms "administer," "marijuana," "marijuana infused products," "medical marijuana cultivation facility," "medical marijuana dispensary facility," "medical marijuana-infused products manufacturing facility," "medical marijuana testing facility," "medical use," "primary caregiver" and "qualifying patient," shall have the definition set forth in article XVI, section 1 of the Missouri Constitution. Identification card. A document, whether in paper or electronic format, issued by the Missouri Department of Health and Senior Services, or its successor agency, that authorizes a qualifying patient, primary caregiver, or employee or contractor of a licensed medical marijuana facility to access medical marijuana as provided by law, or a similar card issued by another state. Medical marijuana facility. Either a “medical marijuana cultivation facility,” “medical marijuana dispensary facility,” or a “medical marijuana-infused products manufacturing facility,” or a “medical marijuana testing facility,” as defined in article XIV, section 1 of the Missouri Constitution, or a “medical marijuana transportation facility” as defined in chapter 35, the Zoning Code. Sec. 17-401. - Business license required. A. All medical marijuana facilities and marijuana facilities shall be required to have a City business license as required in this chapter 17, but shall not be required to have any other City-issued license. The cost of such license shall be $350.00. 1. The cost of a business license for a medical facility shall be $350. 2. The cost of a business license for a marijuana microbusiness facility shall be $350. 3. The cost of a business license for a comprehensive facility shall be $600. B. Medical marijuana facilities shall be required to be properly licensed and/or certified by the Missouri Department of Health and Senior Services as required by 19 CSR 30 -95. Each medical marijuana facility in operation shall obtain a separate license, but multiple licenses may be utilized in a single location. All licenses shall be displayed at all times within 20 feet of the main entrance to the medical marijuana facility. Continued maintenance of all necessary state licenses and/or certificates shall be a condition of a medical marijuana facility's City business license. Licenses and certification for medical marijuana facilities suspended or revoked by the State of Missouri will also be suspended or revoked by the City Administrator. C. Marijuana facilities shall be required to be properly licensed and/or certified by the Missouri Department of Health and Senior Services as required by the Missouri Constitution, Article XIV, Section 2. Each marijuana facility in operation shall obtain a separate license, but multiple licenses may be utilized in a single location. All licenses shall be displayed at all times within 20 feet of the main entrance to the medical marijuana facility. Continued maintenance of all necessary state licenses and/or certificates shall be a condition of a marijuana facility's City business license. Licenses and certification for marijuana facilities suspended or revoked by the State of Missouri will also be suspended or revoked by the City Administrator. Sec. 17-402. - Operation of medical marijuana facilities. A. Prohibited hours of sale. Medical marijuana dispensary facilities shall not be open to the public or make any sales between the hours of 7:00 p.m. and 6:00 a.m. B. Unauthorized marijuana prohibited on premises. It shall be unlawful for any marijuana other than expressly authorized to be cultivated or sold in accordance with the regulations issued by the Department of Health and Senior Services. Editor’s note: Deleted language shown thus. Added language shown thus. C. Sales by certain persons restricted. It shall be unlawful for medical marijuana to be sold by any individual other than those licensed through the State of Missouri. D. Purchases by unlicensedunauthorized persons. It shall be unlawful for any individual who does not possess and produce a patient identification card or primary caregiver identification card to purchase, attempt to purchase, or have in his possession any amount of medical marijuana. E. Sale to unlicensedunauthorized persons. It shall be unlawful to sell or attempt to sell medical marijuana to any individual who does not possess and produce a patient identification card or primary caregiver identification card. F. Use of property for unlawful purposes. It shall be unlawful for any person to own, operate, lease, occupy, or control any building, car, shed, room, basement, structure, tent, or booth and knowingly permit medical marijuana to be unlawfully manufactured, sold, stored, kept, or consumed therein or thereon. G. Regulation of sale in original packages. Any marijuana or marijuana-infused products packaged for retail sale must be packaged and sold in accordance with the rules and regulations issued by the Department of Health and Senior Services. H. Unauthorized extraction. It shall be unlawful for any person to extract resins from marijuana using dangerous materials or combustible gases without a medical marijuana-infused products manufacturing facility license issued by the Department of Health and Senior Services. I. Use of medical marijuana at a licensed dispensary facility prohibited. The consumption, inhalation, or other personal use of marijuana or other medical marijuana -infused products on or within the premises of a medical marijuana dispensary facility is prohibited, nor shall the licensee permit such consumption. J. Security plan. All medical marijuana facilities shall provide adequate security on the premises in accordance with the regulations issued by the State of Missouri, including, but not limited to the following: 1. Security video shall be preserved for at least 90 days and be made available to law enforcement officers upon demand. 2. A method of immediate, automatic notification to alert local law enforcement agencies of an unauthorized breach of security at the facility. 3. Professionally monitored robbery alarm and burglar alarm systems shall be installed and maintained in good working condition within the facility at all times with the capability of alerting local law enforcement agencies immediately of an unauthorized breach of security at the facility. Each facility shall provide the chief of police with the name and telephone number of the designated on-call facility personnel to respond to any alarms. 4. d.Each facility shall provide the chief of police with the name, telephone number, electronic mail address, and facsimile number of an on-site facility employee to whom the City may provide notice of any operating problems associated with the facility. It shall be the responsibility of the licensee to keep up to date the contact information of the facility employee. 5. e.Each facility shall provide policies for keeping local law enforcement updated on whether the facility employs armed security personnel and how law enforcement can identify such Editor’s note: Deleted language shown thus. Added language shown thus. personnel on-site. It shall be the responsibility of the licensee to inform the Police Chief of any changes to this policy. 6. f.Each facility shall provide a method to allow the police department real -time remote access to the security video system as required by 19 CSR 95.040(4)(H)(C)III. K. Permanent location required. Each medical marijuana dispensary shall be operated from a permanent and fixed location. No medical marijuana dispensary shall be permitted to operate from a moveable, mobile, or transitory location. This subsection shall not prevent the physical delivery or medical marijuana to a qualifying patient or primary caregiver at a location off of the premises of the licensee's medical marijuana dispensary, to the extent so permitted by law. L. Odors. No medical marijuana facility shall emit any odor of marijuana which is capable of being smelled by a person of ordinary senses outside of the boundary of the lot upon with the medical marijuana facility is located. M. Minimum age. No person under the age of 18 years old shall be allowed into a medical marijuana dispensary; except that a qualifying patient who is under the age of 18 years but who has been emancipated by a court order and a qualifying patient under the age of 18 years when accompanied by the qualifying patient's parent or guardian. N. Sale of accessories. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a medical marijuana dispensary. Such items may be sold or provided only to qualifying patients or primary caregivers. O. Comprehensive facilities shall be required to comply with the provisions of this Section to the fullest extent allowed by law. Sec. 17-403. - Operation of marijuana facilities. A. Prohibited hours of sale. Microbusiness dispensary facilities and comprehensive marijuana dispensary facility shall not be open to the public or make any sales between the hours of 7:00 p.m. and 6:00 a.m. B. No marijuana facility shall manufacture, package, label, marijuana or marijuana infused products in a false or misleading manner. C. No person shall sell any product in a manner designed to cause confusion between marijuana or a marijuana-infused product and any product not containing marijuana. D. No marijuana facility may sell edible marijuana-infused candy in shapes or packages that are attractive to children or that are easily confused with commercially sold candy that does not contain marijuana. E. All marijuana and marijuana-infused products shall be sold in individual, child-resistant containers that are labeled with serving amounts, instructions for use, and estimated length of effectiveness. F. All marijuana and marijuana-infused products shall be sold in containers clearly and conspicuously labeled, as mandated by the department, as containing “Marijuana” or a “Marijuana-Infused Product.” Editor’s note: Deleted language shown thus. Added language shown thus. G. A marijuana facility may not allow cultivation, manufacturing, sale, or display of marijuana, marijuana-infused products, or marijuana accessories to be visible from a public place outside of the marijuana facility without the use of binoculars, aircraft, or other optical aids. H. A marijuana facility may not cultivate, manufacture, test, sell, or store marijuana at an y location other than a physical address approved by the Department of Health and Senior Services and within an enclosed area that is secured in a manner that prevents access by persons not permitted by the marijuana facility to access the area. I. A marijuana facility shall secure every entrance to the facility so that access to areas containing marijuana is restricted to employees and other persons permitted by the marijuana facility to access the area and to agents of the Department of Health and Senior Services or state and local law enforcement officers and emergency personnel and shall secure its inventory and equipment during and after operating hours to deter and prevent theft of marijuana, marijuana-infused products. and marijuana accessories. J. Use of property for unlawful purposes. It shall be unlawful for any person to own, operate, lease, occupy, or control any building, car, shed, room, basement, structure, tent, or booth and knowingly permit marijuana to be unlawfully manufactured, sold, stored, kept, or consumed therein or thereon. K. Permanent location required. Each marijuana facility shall be operated from a permanent and fixed location. No marijuana facility shall be permitted to operate from a moveable, mobile, or transitory location. This subsection shall not prevent the physical delivery of marijuana to a consumer at a location off of the premises of the licensee's marijuana facility, to the extent so permitted by law. L. Odors. No marijuana facility shall emit any odor of marijuana which is capable of being smelled by a person of ordinary senses outside of the boundary of the lot upon with the marijuana facility is located. M. Minimum age. No person under the age of 21 years old shall be allowed into a marijuana facility; except that a qualifying patient who is under the age of 18 years but who has been emancipated by a court order and a qualifying patient under the age of 18 years when accompanied by the qualifying patient's parent or guardian may be allowed in a comprehensive marijuana dispensary facility. N. Sale of accessories. Devices, contrivances, instruments, and paraphernalia for inhaling or otherwise consuming marijuana including, but not limited to, rolling papers and related tools, water pipes, and vaporizers may lawfully be sold at a marijuana dispensary. Section 3. If any one or more of the terms, provisions, or conditions of this ordinance shall to any extent be declared invalid, unenforceable, void, or voidable for any reason whatsoever by a court of competent jurisdiction, none of the remaining terms, provisions, or conditions of this ordinance shall be affected thereby and each provision of this ordinance shall be valid and enforceable to the fullest extent permitted by law. Section 4. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed:Approved:.Presiding OfficerMayor Carrie TerginATTEST:APPROVED AS TO FORM:City ClerkEditor's note: Deleted language shown tlws. Added language shown thus. BILL SUMMARY BILL NO: 2022-099 SPONSOR: Councilmember Fitzwater SUBJECT: Approving a Plan for an Industrial Development Project for Scholastic Inc., Authorizing the Issuance of TID Revenue Bonds , Series 2023. in a Principal Amount not to Exceed $44 ,700,000 DATE INTRODUCED: January 17 , 2023 DEPARTMENT DIRECTOR(S):,......-------r--+---:----------- CITY ADMINISTRATOR:___.,~~~===------I-~~W7~---------- Summary: This Ordinance authorizes the City to issue the Taxable Industrial Development Revenue Bonds (Scholastic Inc . Project), Series 2023 , in an aggregate principal amount not to exceed $44 ,700,000 (the "Bonds "), under Chapter 100 of the Revised Statutes of Missouri , as amended ("Chapter 1 00"), and approves the Chapter 100 Plan (and other documents) relating to an industrial development project (the "Project") for Scholastic ln. (the "Company") consisting of the acquisition and installation of a new conveyor system, automation equipment and other machinery , equipment and personal property (the "Project Equipment") at the Company's existing facility located at 6336 Algoa Road in the City (the "Project Site ") in order to expand the Company 's production capacity and operating efficiencies at the facility . The Bonds are being issued as a mechanism to provide personal property tax abatement for the Project Equipment. As provided in the Plan and the Performance Agreement (as further described below), it is anticipated that the Company will acquire and install portions of the Project Equipment in calendar years 2023, 2024 and 2025 ; and each portion of Project Equipment will be subject to 50 % personal property tax abatement for a period of ten (1 0) years , beginning in the calendar year immediately after the applicable portion of the Project Equipment is acquired and installed . The Company has also applied to the Missouri Department of Economic Development for available sales tax exemptions for the purchase of certain portions of the Project Equipment as approved by the Missouri Department of Economic Development. The issuance of the Bonds and approval of the Chapter 1 00 Plan for the Company's Project was previously contemplated by Resolution RS2022-32 adopted by the City Council on October 17 , 2022 . On the day of closing of the Bonds , the Company will execute a Bill of Sale from the Company to the City conveying title to all personal property comprising the Project Equipment previously purchased by the Company, which will be exempt from personal property taxes as a result of the City's ownership of such Project Equipment. Under a Lease Agreement between the City , as lessor, and the Company, as lessee (referenced below and approved by the Ordinance), the City will simultaneously lease the Project Equipment (and any future Project Equipment acquired by the Company and transferred to the City via a Bill of Sale) back to the Company in exchange for rental payments to be paid by the Company to the City that will be equal to the debt service required to be paid on the Bonds to the Company, as the sole owner of the Bonds, under the Trust Indenture (as further descr ibed below) In accordance with the Performance Agreement (the “Performance Agreement” referenced below and approved by the Ordinance), between the City and the Company, personal property tax abatement for each portion of the Project Equipment acquired in calendar years 2023, 2024 and 2025 will be provided to the Company for a period of 10 years, beginning in the calendar year immediately after the applicable portion of the Project Equipment is acquired and installed, as follows: (a) for the portion of the Project Equipment acquired in calendar year 2023, 50% personal property tax abatement will be provided in calendar years 2024 through 2033; (b) for the portion of the Project Equipment acquired in calendar year 2024, 50% personal property tax abatement will be provided in calendar years 2025 through 2034; and (c) for the portion of the Project Equipment acquired in calendar year 2025, 50% personal property tax abatement will be provided in calendar years 2026 through 2035. Under the Performance Agreement, during each year of the 10-year period each applicable portion of the Project Equipment is exempt from personal property taxation, the Company will be required to make a payment in lieu of taxes (“PILOT Payment”) equal to 50% of the personal property taxes that would otherwise be due with respect to the Project Equipment, but for the City’s ownership of the Project Equipment. Pursuant to the Performance Agreement, in order for the Company to receive the full-benefit of the personal property tax abatement during the tax abatement period, the Company will be required to maintain at least 827 jobs at its facility locations in the City, as further described in the Performance Agreement. The Bonds will be purchased by the Company and will be payable solely o ut of the payments, revenues and receipts derived from the lease of the Project Equipment by the City, as lessor, to the Company, as lessee, under the Lease Agreement. Below is a brief summary of the following documents relating to this Chapter 100 transaction that are approved by the Ordinance: • Chapter 100 Plan and Costs-Benefit-Analysis: This Chapter 100 Plan and Cost-Benefit-Analysis (the “Plan”) for the Company’s Project was provided to each of the taxing jurisdictions that levy a personal property tax on the Company’s facility where the Project Equipment that will be located. The Plan provides the details of the primary terms of this Chapter 100 transaction, including the projected value of the 50% personal property tax abatement the Company is expected to receive with respect to the Project Equipment and the PILOT Payments relating to the Project Equipment that the Company will be required to make to each of the taxing jurisdictions. The Plan also provides notice of the City’s intent to formally approve the Plan at the February 6, 2023, City Council meeting. • Trust Indenture: The Trust Indenture (the “Indenture”), provides the terms for the issuance and repayment of the Bonds. The City will issue the Bonds pursuant to the Indenture, which creates a contract between the City and BOKF, N.A., as trustee (the “Trustee”), for the benefit of the Company, as the sole purchaser and owner of the Bonds. Under the Indenture, the City assigns the administration of the mechanics of the Bond issue to the Trustee. The Trustee is responsible for maintaining records of the principal amount of the Bonds which are funded up to an amount equal to the costs of acquiring and installing the Project Equipment paid by the Company (not to exceed $44,700,000 which is the maximum principal amount of the Bonds). The Company will purchase the Bonds in a principal amount equal to the costs relating to acquiring and installing the Project Equipment the Company has already paid; however, the Company also asks the Trustee to reimburse the Company from proceeds of the Bonds for the costs of Project Equipment it has already paid. Because the purchase price of the Bonds is equal to the amount for which the Company is seeking reimbursement, these are offsetting transactions, eliminating the need for the Company to wire the purchase price to the Trustee only to receive the same amount back from the Trustee as reimbursement. • Lease Agreement: Under the Lease Agreement, the City, as lessor, leases the Project Equipment back to the Company, as lessee, over a term equal to the period of the personal property tax abatement set forth in the Performance Agreement (through calendar year 2035). The Lease Agreement requires the Company to make one lease payment each year on December 1st in an amount equal to debt service due on the Bonds on each Decembe r 1st. Only interest is required to be paid on the Bonds each year with the full principal amount due at maturity on December 1, 20 35. Because the amount of the lease payment required to be made b y the Company each December 1st is equal to the interest due on December 1st to be paid to the Company, as the sole owner of the Bonds, these again are offsetting transactions so no actual transfer of funds will be required. At maturity of the Bonds when all principal is due, the Lease Agreement permits the Comp any to tender the Bonds to the Trustee in lieu of requiring a payment of principal and interest at maturity and the Trustee then cancels the Bonds. • Bond Purchase Agreement: This is the document by which the Company agrees to purchase all of the Bonds from the City. Under the Bond Purchase Agreement, the Company agrees to indemnify and hold harmless the C ity and the Trustee against any losses, claims, damages, liabilities or expenses whatsoever to the extent caused by any violation by the Company of an y federal or state securities laws in connection with the Bonds. • Performance Agreement: The Performance Agreement sets forth the PILOT Payments to be made by the Company as consideration for the p ersonal property tax abatement provided for the Project Equipment and contains the certain terms that the Company must adhere to in order for the Company to receive the benefit of the full amount of the 50% personal property tax abatement offered by the City and made available to the Company under the Lease Agreement. History of Scholastic & NSOFor more Uian 100 years, Scholastic has beenearning its reputation as a trusted partner toeducators and families, and today is the world'slargest publisher and distributor of children'sbooks, a leading provider of literacy curriculum,professional services, and classroom magazines,and a producer of educational and entertainingchildren's media. Among our best known seriesare Clifford the Big Red Dog, Cooscbiiiiips, I Sptj,Dciir America, Dog Man, Hunger Games, and, ofcourse, Harry Potter.Scholastic makes quality, affordable booksavailable to all children aroimd tlie worldthrough school-based book clubs and book fairs,classroom libraries, school and public libraries,retail, and online.National Service Organization | JeffersonCity, Neosho, & Sanford FLScholastic's National Service Organization hasexperienced significant growth since locating tliefirst warehouse in Jefferson Git}' in 1968. Mostrecently expanding to serve the Nem WorldReading Initiatii'c in Sanford FL. OutsideScholastic Book Fairs school events the NSO isresponsible for all of Scholastic's distributionoperations. NSO provides customer service,credit & collection, warehousing, packaging,order fulfillment and accounts receivablefunctions for most of Scholasbc's businesses.These operations are responsible for getting allbooks and products from "here to there" and areconducted in 1.6 million square foot facilitieslocated in Jefferson City and Neosho, Missouri,and Sanford FL.McCarty Site Groundbreaking^SCHOLASTICNational Service OrganizationJefferson City | Neosho| Sanford FLNSO Facilities (square feel)FuiliUesOfficeBalkWarehooseFulfiUmenlCross DockAIgM43,913SS4,542420.667-McCaity53,30053,62S84,517-RabinMnRoad6,150164.17576,20015,613Neoslio29,075---Sanford FL1.42616.988--NSO Feisonnel Average at Peak(Poll Time, Part Time, Seasonal,Tomrorarv AmncipsFacilitiesWarehouseOfficeAlgoa77045McCarty/Robinson Road125230Neosho300Sanford FL15-OUR MISSIONTo encourage the intellectual and personal growth of all children,beginning with literacy.A Business Built on the Common Good.The stronger our commitment to helping children learn, the stronger the growth of ourorganization. Scholastic continues to prove that doing something positive for the world is agood way to run a profitable enterprise. To that end, we seek out the smartest minds in supplychain & logistic.s, finance, customer service, engineering, analytics, and other fields in order toidentify opportunities, while continuing to use emerging technologies to expand our capabilitiesand ensure that Scholastic remains a leader in tlie areas in which we operate.We're always looking for talented people to join Scholastic in instilling a love of reading andlifelong learning in children. At Scholastic, our benefit plans have been designed to be in-linewith market conditions and employee needs. Our plans provide flexibility and allow individualsa broad range of choices that can be tailored to meet each employee's needs. Scholastic is anEqual Opportunity Employer.In addition to our full-time staff, we will recruit, hire, andtrain over 200 seasonal call center representatives and over400 seasonal warehouse workers. Tlus enables us to scaleup to the seasonal peak service and shipping volumes. Wemove the employees where tine demand is.All of our major business units have very cyclical demandcurves and, in many cases, operate on a countcr<yclicalbasis. Effective cross-training of associates allows for day-to-day, even hour-to-hour, movement throughdepartments. United Way Board a nd Committee Parso ns Family Fall Festival Partn ers in Ed uc atio n Le adership JC JCPS Foundation JCSD Lear ni ng Fair JCSD Teacher of the Year Ea stside Bu siness Assoc . YMCA Music Festiv al JCPD Haunted Hallways J ayc ees Tr unk -or -Treat Local school donation s for literacy campaign s/PT O car nival s/special event s Ea st School Bl ock Party J unetee nth Celebration Community Bridge s Splash pad p ark Investments in Employees ® Wage alignment process & implementation • Annual wage alignment expenditure ® Benefits' package enhancements ® Enhanced paid time off • Addition of flexible shifts ® Increased focus of upskilling to meet future demands • Ultimate goal E GHOST OF �YLO Algoa Fulfillment Retrofit Project Statement The Algoa Fulfillment Center has been in service for more than 30 years and is in need of vital investment to meet the increased demand of Scholastic customer order profiles. Project Goal Develop a new state-of-the-art fulfillment center that will drive Scholastic success for the next 20+ yrs. The system must be designed to maximize the current local labor market capacity. This new system will continue to be the primary fulfillment for the company. Potential Capital Investment for Algoa Calendar Year Total Capital 15,000,000 15,000,000 30,000,000 Estimated property values based on assumed in-service years 1110 SCHOLASTIC Scholastic History of Tax Abatement Scholastic has not requested tax abatement over the past 20+ years for any capital expenditures at the Algoa site, completing them without tax relief. Request To gain your support to allow Scholastic to enter a tax abatement program to help offset the new tax liabilities that will come from investing $30M into our Algoa site. This will help ensure Scholastic can continue to fulfill its mission to put books into children's hands from our NSO campus in Jefferson City. Pre K ON MY WAY SCHOLASTIC LITERACY R.L STINE oo ebupil BILL NO. 2022-099 SPONSORED BY Councilmember Fitzwater ORDINANCE NO. ____________________ AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR SCHOLASTIC INC.; AUTHORIZING THE CITY OF JEFFERSON, MISSOURI, TO ISSUE ITS TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (SCHOLASTIC INC. PROJECT), SERIES 2023, IN A PRINCIPAL AMOUNT NOT TO EXCEED $44,700,000 TO FINANCE THE COSTS OF SUCH PROJECT; AUTHORIZING AND APPROVING CERTAIN DOCUMENTS; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS. WHEREAS, The City of Jefferson, Missouri (the “City”), is authorized under the provisions of Article VI, Section 27 of the Missouri Constitution, as amended, and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended (collectively, the “Act”), to purchase, construct, extend and improve certain projects (as defined in the Act) for the purposes set forth in the Act and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable; and WHEREAS Scholastic Inc., a New York corporation authorized to do business in the State of Missouri (the “Company”), has proposed an industrial development project (the “Project”) consisting of the acquisition and installation of a new conveyor system, automation equipment and other machinery and personal property (the “Project Equipment”) to be installed at the Company’s existing facility located at 6336 Algoa Road in the City (the “Project Site”), and has requested that the City issue its Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum principal amount not to exceed $44,700,000 (the “Bonds”) for the purpose of acquiring and installing the Project Equipment, contingent upon preparation and approval of a plan for industrial development with respect to the Project (the “Plan”) as required by Section 100.050 of the Act; and WHEREAS, The City has prepared a Plan for the Project, notice of the Project was given to the taxing jurisdictions in accordance with Section 100.059.1 of the Act, and the City now desires to approve the Plan; and WHEREAS, The City has and does hereby find and determine that it is desirable for the economic development of the City and within the public purposes of the Act that the City proceed with the issuance of the Bonds for the purpose described above; and WHEREAS, The City further finds and determines that it is necessary and desirable in connection with approval of the Plan and the issuance of the Bonds that the City enter into certain documents, and that the City take certain other actions and approve the execution of certain other documents as herein provided; NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOWS: Section 1. Promotion of Economic Development. The City Council hereby finds and determines that the Project will promote the economic welfare and the development of the City, and the issuance of the Bonds by the City to pay the costs of the Project will be in furtherance of the public purposes set forth in the Act. Section 2. Approval of Plan. The City Council hereby approves the Plan for Industrial Development Project attached hereto as Exhibit A in accordance with Section 100.050 of the Act. Section 3. Authorization and Sale of the Bonds. The City is hereby authorized to issue and sell the Bonds as described in the recitals hereto for the purpose of providing funds to pay the costs of the Project. The Bonds shall be issued and secured pursuant to the herein authorized Trust Indenture (defined below) and shall have such terms, provisions, covenants and agreements as are set forth in the Trust Indenture. The sale of the Bonds to the Company at private sale pursuant to the provisions of Section 108.170 of Revised Statutes of Missouri, as amended, at the interest rate and upon the terms set forth in the Trust Indenture is hereby approved. Section 4. Limited Obligations. The Bonds and the interest thereon shall be limited obligations of the City payable solely out of the payments, revenues and receipts derived by the City from the herein authorized Lease Agreement (defined below), and such payments, revenues and receipts shall be pledged and assigned to the Trustee (defined below) as security for the payment of the Bonds as provided in the Trust Indenture. The Bonds and the interest thereon shall not be deemed to constitute a debt or liability of the City within the meaning of any constitutional provision, statutory limitation or City Charter provision and shall not constitute a pledge of the full faith and credit of the City. The issuance of the Bonds shall not, directly, indirectly or contingently, obligate the City to levy any form of taxation therefore or to make any appropriation for their payment. Section 5. Approval and Authorization of Documents. The following documents (the “City Documents”) are hereby approved in substantially the forms presented to the City Council at this meeting (copies of which documents shall be filed in the records of the City), and the City is hereby authorized to execute and deliver the City Documents with such changes therein as shall be approved by the officials of the City executing such documents, such officials’ signatures thereon being conclusive evidence of their approval thereof: (a) Trust Indenture dated as of the date set forth therein (the “Trust Indenture”), between the City and BOKF, N.A., as trustee (the “Trustee”), pursuant to which the Bonds will be issued and the City will pledge and assign the payments, revenues and receipts received pursuant to the Lease Agreement (defined herein) to the Trustee for the benefit and security of the owners of the Bonds upon the terms and conditions as set forth in the Trust Indenture. (b) Lease Agreement dated as of the date set forth therein (the “Lease Agreement”), between the City, as lessor, and the Company, as lessee, under which the City will lease the Project Equipment to the Company pursuant to the terms and conditions in the Lease Agreement, in consideration of rental payments by the Company which will be sufficient to pay the principal of and interest on the Bonds. (c) Bond Purchase Agreement dated as of the date set forth therein (the “Bond Purchase Agreement”), between the City and the Company, pursuant to which the Company agrees to purchase the Bonds. (d) Performance Agreement dated as of the date set forth therein (the “Performance Agreement”), between the City and the Company, pursuant to which the City will grant the Company certain rights with respect to the abatement of ad valorem personal property taxes on the Project Equipment. Section 6. Execution of Documents. The Mayor or Mayor Pro Tem is hereby authorized and directed to execute the Bonds and to deliver the Bonds to the Trustee for authentication for and on behalf of and as the act and deed of the City in the manner provided in the Trust Indenture. The Mayor or Mayor Pro Tem is hereby authorized and directed to execute the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance, for and on behalf of and as the act and deed of the City. The City Clerk of the City is hereby authorized and directed to attest to and affix the seal of the City to the Bonds and the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 7. Further Authority. The City shall, and the officials, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents. The Mayor or Mayor Pro Tem is hereby authorized, through the term of the Lease Agreement, to execute all documents on behalf of the City (including documents pertaining to the transfer of the Project Equipment or the financing or refinancing of the Project Equipment by the Company as may be requested by the Company) as may be required to carry out and comply with the intent of this Ordinance, the Trust Indenture and the Lease Agreement. The Mayor or Mayor Pro Tem is also authorized, unless otherwise expressly provided herein to the contrary, to grant on behalf of the City such consents, estoppels and waivers relating to the Bonds, the Trust Indenture, the Lease Agreement or the Performance Agreement as may be requested during the terms thereof; provided, such consents, estoppels and/or waivers shall not increase the principal amount of the Bonds, increase the term of either Lease Agreement or adversely affect the personal property tax exemption as provided for therein, waive an Event of Default (as defined in the Trust Indenture and the Lease Agreement), or materially change the nature of the transaction unless approved by an ordinance of the City Council. Section 8. Severability. If any term, condition or provision of this Ordinance is, to any extent, held to be invalid or unenforceable, the remainder hereof shall be valid in all other respects and continue to be effective and each and every remaining provision hereof shall be valid and shall be enforced to the fullest extent permitted by law, it being the intent of the City Council that it would have enacted this Ordinance without the invalid or unenforceable provision. If, as a result of a subsequent change in applicable law, the provision that had been held invalid is no longer invalid, said provision shall thereupon return to full force and effect without further action by the City and shall thereafter be binding. Section ~-Effective Date. This Ordinance shall take effect and be in full force and effect from and after its passage by the City CounCil of the City. Passed: ____________ _ Approved: __________ _ Presiding Officer Mayor Carrie Tergin A TTEST: APPROVED AS TO FORM : City Clerk NOTICE TO TAXING JURISDICTIONS To: Taxing Jurisdictions (Distribution List attached) Re: Notice of Public Hearing – Scholastic Inc. Project On behalf of the City of Jefferson, Missouri (“City”), please find enclosed a copy of the proposed Plan for an Industrial Development Project (“Plan”) for Scholastic Inc. (“Company”), which also contains a Cost Benefit Analysis for the affected taxing jurisdictions. The City anticipates considering an Ordinance to approve the Plan at its regular meeting on Monday, February 6, 2023, at 6:00 PM at City Council Chambers at City Hall in the John G. Christy Municipal Building, 320 E. McCarty Street, in Jefferson City, Missouri. The Plan, if approved, consists of the acquisition and installation of a new conveyor system, automation equipment and other personal property at the Company’s facility located at 6336 Algoa Road in Jefferson City, Missouri, for purposes as further described in the attached Plan. The City invites all affected taxing jurisdictions to attend the meeting on February 6, 2023, and to make oral comments on the proposed Plan to the City or to provide written comments to the City on the Plan prior to the meeting. All comments of the taxing districts will be fairly and duly considered by the City. A copy of the Plan and Cost Benefit Analysis for the proposed project is enclosed and also will be on file in the office of the City Clerk and will be available for public inspection during normal business hours. Dated: January 13, 2023 CITY OF JEFFERSON, MISSOURI 320 E. McCarty St. Jefferson City, Missouri 65101 2 Jefferson City Public Schools Bryan McGraw, Superintendent 315 East Dunklin Street Jefferson City, MO 65101 Missouri River Regional Library Claudia Cook, Director 214 Adams Street P.O. Box 89 Jefferson City, MO 65102 City of Jefferson Fire Pension Fund Steven S. Crowell, Jr., City Administrator 320 E. McCarty St. Jefferson City MO 65101 Missouri Department of Revenue County Tax Section State Blind Pension Fund 301 West High Street, Room 330 Jefferson City, MO 65105 Cole County Cole County Road and Bridge Sam Bushman, Presiding Commissioner 311 E High Street Jefferson City, MO 65101 Cole County Residential Services Executive Director 1908 Boggs Creek Road Jefferson City, MO 65101 State Tax Commission of Missouri 301 W. High Street, Room 840 P.O. Box 146 Jefferson City, MO 65102 ____________________________ CITY OF JEFFERSON, MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS FOR SCHOLASTIC INC. _____________________________ TABLE OF CONTENTS Page I. PURPOSE OF THIS PLAN .......................................................................................................... 1 II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS ............................................. 1 General ............................................................................................................................................ 1 Issuance and Sale of Bonds ........................................................................................................... 1 Property Tax Abatement ............................................................................................................... 2 III. DESCRIPTION OF THE PARTIES ............................................................................................ 2 Scholastic Inc. ................................................................................................................................. 2 City of Jefferson, Missouri. ........................................................................................................... 2 IV. REQUIREMENTS OF THE ACT ................................................................................................ 3 Description of the Project. ............................................................................................................. 3 Estimate of the Costs of the Project. ............................................................................................ 3 Source of Funds to be Expended for the Project. ........................................................................ 3 Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. ............................................................................................................. 4 Affected Taxing Jurisdictions. ...................................................................................................... 4 Current Assessed Valuation. ......................................................................................................... 4 Payments in Lieu of Taxes. ........................................................................................................... 5 Application for Sales and Use Tax Exemption on Personal Property. ...................................... 6 Cost-Benefit Analysis and Discussion of Attachments. .............................................................. 7 V. ASSUMPTIONS AND BASIS OF PLAN .................................................................................... 8 ATTACHMENT A – SUMMARY OF KEY ASSUMPTIONS ATTACHMENT B – COST-BENEFIT ANALYSIS * * * CITY OF JEFFERSON, MISSOURI ______________________________ PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS FOR SCHOLASTIC INC. I. PURPOSE OF THIS PLAN On February 6, 2023, the City Council of the City of Jefferson, Missouri (the “City”) will consider an ordinance approving this Plan (defined below) and authorizing the issuance by the City of its taxable industrial development revenue bonds in the aggregate principal amount of not to exceed $44,700,000, to finance the costs of equipping an industrial development project (the “Project”) for Scholastic Inc., a New York corporation (the “Company”), consisting of acquiring and installing a machinery, equipment and other personal property (the “Project Equipment”) to be installed in the Company’s existing facility located at 6336 Algoa Road in the City, as more fully described herein. The Bonds will be issued pursuant to the provisions of Sections 100.010 to 100.200 of the Revised Statutes of Missouri, as amended (“Chapter 100”), and Article VI, Section 27(b) of the Missouri Constitution, as amended (collectively, with Chapter 100, the “Act”). Gilmore & Bell, P.C., as bond counsel to the City, has prepared this Plan for an Industrial Development Project and Cost-Benefit Analysis (the “Plan”) to satisfy requirements of the Act and to analyze the potential costs and benefits, including the related tax impact on all affected taxing jurisdictions, of using industrial development revenue bonds to finance the acquisition and installation of the Project Equipment and to facilitate abatement of ad valorem personal property taxes on the bond-financed equipment, machinery or other personal property comprising the Project Equipment. II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS General. The Act authorizes cities, counties, towns and villages to issue industrial development bonds to finance the purchase, construction, extension and improvement of warehouses, distribution facilities, research and development facilities, office industries, agricultural processing industries, service facilities that provide interstate commerce, industrial plants , including the real estate either within or without the limits of such municipalities, buildings, fixtures, and machinery. In addition, Article VI, Section 27(b) of the Missouri Constitution authorizes cities, counties, towns and villages to issue revenue bonds for the purpose of paying all or part of the cost of purchasing, constructing, extending or improving any facility for manufacturing, commercial, warehousing and industrial development purposes, including the real estate, buildings, fixtures and machinery. Issuance and Sale of Bonds. Revenue bonds issued pursuant to the Act do not require voter approval and are payable solely from revenues received from a lease or other disposition of the project. The municipality issues its bonds pursuant to a trust indenture entered into between the municipality and a bank or trust company acting as trustee. In exchange, the benefited company promises under a lease agreement to make rental payments that are sufficient to pay the principal of and interest on the bonds as they become due. Thus, the municipality merely acts as a conduit for the financing. If proceeds of the revenue bonds are to be used to pay the costs, or reimburse the costs, of purchasing and installing personal property only, concurrently with the closing of the bonds, the company will convey to the municipality title to the personal property included in the project. The municipality must -2- be the legal owner of the personal property while the bonds are outstanding for the personal property to be eligible for personal property tax abatement, as further described below. At the same time, the municipality will lease the personal property included in the project back to the benefited company pursuant to a lease agreement. The lease agreement will require the company, acting on behalf of the municipality, to use the bond proceeds to pay, or reimburse, the costs of purchasing and installing the personal property included in the project, as applicable. Under the lease agreement, the company typically: (1) will unconditionally agree to make payments sufficient to pay the principal of and interest on the bonds as they become due; (2) will agree, at its own expense, to maintain the project, to pay all taxes and assessments with respect to the project, and to maintain adequate insurance; (3) has the right, at its own expense, to make certain additions, modifications or improvements to the project; (4) may assign its interests under the lease agreement or sublease the project while remaining responsible for payments under the lease agreement; (5) will covenant to maintain its corporate existence during the term of the bond issue; and (6) will agree to indemnify the municipality for any liability the municipality might incur as a result of its participation in the transaction. Property Tax Abatement. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Revised Statutes of Missouri, as amended, all property of any political subdivision is exempt from taxation. In a typical transaction, the municipality holds fee title to the project and leases the project to the benefited company. Although the Missouri Supreme Court has held that the leasehold interest is taxable, it is taxable only to the extent that the economic value of the lease is less than the actual market value of the lease. See Iron County v. State Tax Commission, 437 S.W.2d 665 (Mo. 1968) (en banc) and St. Louis County v. State Tax Commission, 406 S.W.2d 644 (Mo. 1966) (en banc). If the rental payments under the lease agreement equal the actual debt service payments on the bonds, the leasehold interest should have no “bonus value” and the bond-financed property should be exempt from ad valorem property taxation so long as the bonds are outstanding. If the municipality and the company determine that partial tax abatement is desirable, the company may agree to make “payments in lieu of taxes” (sometimes referred to as “PILOTS” or “PILOT Payments”). The amount of payments in lieu of taxes is negotiable. The payments in lieu of taxes are payable by December 31 of each year, and are distributed to the municipality and to each political subdivision in the same manner and in the same proportion as personal property taxes would otherwise be distributed under Missouri law. III. DESCRIPTION OF THE PARTIES Scholastic Inc. The Company is a New York corporation headquartered in New York, New York. The Company has a multi-national presence and is the world’s largest publisher and distributor of children’s books, a leading provider of literacy curriculum, profession services and classroom magazines and a producer of educational and popular children’s media. More information about the Company can be found on the Company’s website (https://www.scholastic.com/aboutscholastic/history/). City of Jefferson, Missouri. The City is a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri. The City is authorized and empowered pursuant to the provisions of the Act to purchase, construct, extend, equip and improve certain projects (as defined in the Act) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City deems advisable. -3- IV. REQUIREMENTS OF THE ACT Description of the Project. The Project consists of the acquisition and installation of a new conveyor system, automation equipment and other machinery, equipment and personal property (i.e., the Project Equipment) at the Company’s existing facility located at 6336 Algoa Road in the City (the “Project Site”) in order to expand the Company’s production capacity and operating efficiencies at the facility. The City will acquire (or cause the Company to acquire) the Project Equipment with proceeds of the Bonds and the City will lease the Project Equipment to the Company, with an option to purchase, pursuant to the Lease (defined herein). Any personal property not purchased or reimbursed with proceeds of the Bonds in connection with the Project will not be considered Project Equipment and will not be subject to personal property tax abatement. There is no real property included in the Project because the Project is solely related to the acquisition and installation of the machinery, equipment and other personal property (i.e. the Project Equipment) acquired and installed with proceeds of the Bonds. Estimate of the Costs of the Project. The Company expects the acquisition, delivery and installation of the new conveyor system, automation equipment and other personal property comprising the Project Equipment to cost approximately $44,530,000. The Company currently expects to acquire and deliver portions of the Project Equipment to the Project Site during calendar years ending December 31, 2023, 2024 and 2025. The anticipated cost of the acquiring, delivering and installing said Project Equipment at the Project Site in each of the calendar years 2023, 2024, and 2025 as well as the anticipated Modified Accelerated Cost Recovery System (“MACRS”) class-life of such Project Equipment for depreciation purposes is reflected in the table below: Year Acquired and Delivered to Project Site Estimated Cost of Acquiring and Installing Project Equipment(1) MACRS Class-Life 2023 $1,050,000 5-year 2023 1,950,000 7-year 2023 5,500,000 10-year 2024 1,000,000 5-year 2024 2,000,000 7-year 2024 14,230,000 10-year 2025 1,000,000 5-year 2025 500,000 7-year 2025 17,300,000 10-year __________________ (1) Total estimated costs may include estimated soft costs relating to the freight, delivery, installation, assembly, etc., of the Project Equipment, which soft costs are excludable from the calculation of personal property assessed valuation under Missouri law. The Cost-Benefit Analysis attached hereto as Attachment B is based on anticipated costs of the Project Equipment listed above expected to be acquired and installed at the Project Site in calendar years 2023, 2024 and 2025. The Bonds will be issued in a principal amount not to exceed $44,700,000 to allow for a reasonable contingency and provide for certain soft costs relating to the Project Equipment, such as freight, delivery, installation and assembly, which may be excluded from the calculation of the assessed value of the Project Equipment under Missouri law. Source of Funds to be Expended for the Project. The sources of funds to pay for (or reimburse costs of) the Project will be the proceeds of the Bonds in the maximum principal amount of $44,700,000, to be issued by the City and purchased by the Company, as bondholder, and, if needed, other available funds of the Company. The Bonds will be payable solely from the revenues derived by the City from the lease or other disposition of the Project Equipment (as further described below). The Bonds will not be an -4- indebtedness or general obligation, debt or liability of the City, Cole County, Missouri, or the State of Missouri. The Bonds will be issued upon such terms, in such amounts and at such time as shall be satisfactory to the City and the Company. Statement of the Terms Upon Which the Project Equipment is to be Leased or Otherwise Disposed of by the City. The Company will convey title to the Project Equipment (consisting solely of the equipment, machinery and other personal property, the costs of which were paid for or reimbursed with proceeds of the Bonds) to the City pursuant to a bill of sale, subject to any permitted encumbrances. The City, as lessor, will then lease the Project Equipment to the Company, as lessee, under a lease agreement (the “Lease”). The rental payments to be paid by the Company under the Lease for use of the Project Equipment will be equal to, and will be used to pay, the principal and interest payments due on the Bonds. The Company will also make certain PILOT Payments to the City for distribution to the affected taxing jurisdictions, as further described herein. Under the terms of the Lease with the City, the Company will have the option to purchase the Project Equipment at any time. The Lease will terminate on December 31, 2035, unless terminated sooner pursuant to the terms thereof. Affected Taxing Jurisdictions. The Jefferson City School District is the school district financially impacted by the Project. The City of Jefferson, Missouri, is the city financially impacted by the Project. Cole County, Missouri, is the county financially impacted by the Project. There is no community college district, fire protection district, ambulance district or other emergency services district financially impacted by the Project. Below is a list of all taxing jurisdictions financially impacted by the Project, which are also reflected in the Cost-Benefit Analysis attached as Attachment B hereto: • City of Jefferson (includes Fire Pension Fund) • Cole County (General Revenue and Road & Bridge) • Cole County Special Services (Developmental Disabilities Board) • Jefferson City/Cole County Public Library District • Jefferson City School District • State of Missouri Blind Pension Fund Current Assessed Valuation. The most recent equalized assessed valuation of the personal property comprising the Project Equipment included in the Project on the Project Site, as of January 1, 2022, is $0 (as of January 1, 2022, the Company had not yet acquired any portion of the Project Equipment to the Project Site and the initial assessment of the Project Equipment will not occur until 2024). The total equalized assessed valuation of the machinery, equipment and other personal property comprising the Project Equipment upon completion of acquisition and installation of all of the Project Equipment on the Project Site, which is expected to occur during calendar year ending December 31, 2025, is estimated to be $11,889,740 (based upon the estimated 2026 equalized assessed value of such Project Equipment), after deducting for depreciation. This valuation was calculated based upon estimated total cost of acquiring and installing the equipment, machinery and other personal property comprising the Project Equipment in the amount of approximately $44,530,000 (however, if any of the estimated total costs is associated with freight, delivery, installation or assemble of such Project Equipment those costs may be excluded from the calculation of personal property assessed value under Missouri law), less depreciation, multiplied by the statutorily required assessment rate of 33.33% for the Project Equipment. If the actual investment in the Project Equipment is larger than anticipated, the assessed valuation of such Project Equipment will likely be greater. As noted previously, there is no real property included in the Project because the Project is solely related to the acquisition and installation of the machinery, equipment and other personal property (i.e. the Project Equipment) acquired with proceeds of the Bonds. -5- Payments in Lieu of Taxes. If this Plan is approved by the City Council, the City intends to issue the Bonds and to extend 50% personal property tax abatement for each portion of the Project Equipment to the Company for a period of 10 years. The 10-year period of personal property tax abatement will begin on January 1 in the year in which the applicable portion of the Project Equipment would first be subject to personal property taxation under Missouri law absent the City’s ownership thereof; however, in no event will the personal property tax abatement period for any portion of the Project Equipment extend beyond the calendar year ending December 31, 2035. Therefore, the 10-year personal property tax abatement period for each portion of the Project Equipment will be as follows: (1) for the portion of the Project Equipment expected to be acquired and delivered to the Project Site during calendar year ending December 31, 2023, the 10-year period of personal property tax abatement will be from calendar year 2024 through calendar year 2033; (2) for the portion of the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2024, the 10-year period of personal property tax abatement will be from calendar year 2025 through calendar year 2034; and (3) for the portion of the Project Equipment expected to be acquired and delivered to the Project Site during calendar year ending December 31, 2025, the 10-year period of personal property tax abatement will be from calendar year 2026 through calendar year 2035. [Remainder of this page intentionally left blank.] -6- The equipment, machinery and other personal property that comprises the Project Equipment would otherwise be exempt from ad valorem personal property taxes during the entire term of the applicable 10- year period of personal property tax abatement. Therefore, the Company will make a PILOT Payment to the City on or before December 31 of each year, commencing December 31, 2024 (for the portion of the Project Equipment acquired and delivered to the Project Site during the current calendar year ending December 31, 2023), in an amount equal to the applicable “Percentage of PILOT Payment” shown in the table below multiplied by the amount of ad valorem personal property taxes which would otherwise be due with respect to the Project Equipment, but for the City’s ownership thereof: Project Equipment Acquired and Delivered During Calendar Year Ending December 31 Tax Abatement Period in Years Calendar Years of Personal Property Tax Abatement Percentage of PILOT Payment 2023 1 through 10 2024-2033 50% 2023 -- 2034 and after 100%(1) 2024 1 through 10 2025-2034 50% 2024 -- 2035 and after 100%(2) 2025 1 through 10 2026-2035 50% 2025 -- 2036 and after 100% _______________ (1) For equipment, machinery and other personal property comprising the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2023, the last year of the 10-year personal property tax abatement applicable to that portion of the Project Equipment will be 2033. Under the Lease, it is expected the City will own all portions of the Project Equipment and lease all portions of the Project Equipment to the Company until calendar year ending December 31, 2035; therefore, in calendar years 2034 and 2035, the Company will be required to pay a PILOT Payment equal to 100% of the ad valorem personal property taxes that would otherwise be due with respect to that portion of the Project Equipment originally acquired and delivered to the Project Site in 2023. (2) For equipment, machinery and other personal property comprising the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2024, the last year of the 10-year personal property tax abatement applicable to that portion of the Project Equipment will be 2034. Under the Lease, it is expected the City will own all portions of the Project Equipment and lease all portions of the Project Equipment to the Company until calendar year ending December 31, 2035; therefore, in calendar year 2035, the Company will be required to pay a PILOT Payment equal to 100% of the ad valorem personal property taxes that would otherwise be due with respect to that portion of the Project Equipment originally acquired and delivered to the Project Site in 2024. Such PILOT Payments would, after reduction for actual costs of the City for distributing such payments, be distributed among the taxing jurisdictions in proportion to the amount of personal property taxes which would have been paid in each year had the Project Equipment not been exempt from personal property taxation, pursuant to Section 100.050.3 of the Act. Application for Sales and Use Tax Exemption on Personal Property.. The Company has applied to the Missouri Department of Economic Development (“DED”) for certification of the extent to which eligible tangible personal property comprising a portion of the Project Equipment integral to the activities at the Project Site qualifies for exemption from sales and use tax. DED, through its internal review procedures, will determine the dollar amount of purchases that may qualify for the exemption, which exemption will be contingent upon compliance with DED procedures and ultimate approval by DED of the application for exemption. For purposes of determining the impact of the sales and use tax exemptions for this personal property on the affected taxing jurisdictions, it is assumed that DED will approve the personal property described in the application in the amount of approximately $40,183,500 and that the taxes applied to purchases of DED-approved personal property in the amount of approximately $40,183,500 will be those of the local taxing jurisdictions. -7- Please note that any variance in these assumptions will alter the fiscal impact of the sales and use tax exemptions on the affected taxing jurisdictions. Based on the assumptions set forth above, the fiscal impact on the affected taxing jurisdictions of the sales and use tax exemptions for DED-approved personal property is as follows: Jurisdiction Sales Tax Rate Use Tax Rate Estimated Sales and/or Use Tax Revenues Subject to Exemption State of Missouri 4.225% 4.225% $1,697,753 City of Jefferson General Revenue 1.000% --(1) $401,835(1) Capital Improvement 0.500% --(1) $200,918(1) Parks 0.500% --(1) $200,918(1) Public Safety 0.250% --(1) $100,459(1) Cole County Capital Improvements 0.500% 0.500% $200,918 Emergency Services 0.500% 0.500% $200,918 Law Enforcement 0.375% 0.375% $150,688 Total 7.850% 5.600% $3,154,405 ______________ (1) Unlike the State of Missouri and Cole County, the City does not currently impose a “local use tax” corresponding to its local sales tax, which “local use tax” would be imposed on the Company for the storage, use or consumption of any of the total $40,183,500 tangible personal property purchased from vendors located outside of the City that would not be subject to the City’s local sales tax. The amounts above assume that all vendors selling the $40,183,500 of tangible personal property would be required to collect and remit the local sales taxes imposed by the City and the City will be forgoing the collection of these amounts due to the assumed DED sales/use tax exemption. However, if any or all of the total $40,183,500 in tangible personal property that is assumed to be exempted by DED from local sales/use tax is purchased by the Company from vendors located outside of the City, the City may not be entitled to collect any of these local sales tax revenues regardless of the DED sales/use tax exemption because the City does not impose a “local use tax” that would permit the City to collect these revenues from such vendors. Cost-Benefit Analysis and Discussion of Attachments. In compliance with Section 100.050.2(3) of the Revised Statutes of Missouri, as amended, this Plan has been prepared to show the costs and benefits to the City and to other taxing jurisdictions affected by the personal property tax abatements for the Project Equipment. The following is a summary of the “COST-BENEFIT ANALYSIS” attached to this Plan as Attachment B that shows the direct impact the personal property tax abatements for the Project Equipment is expected to have on each taxing jurisdiction. This Plan does not attempt to quantify the overall economic impact of the Project. Project Assumptions. Attachment A and page B-1 of the Cost-Benefit Analysis included as Attachment B presents a list of the assumptions related to the determination of the personal property assessed valuations and the personal property tax formulas for the Project Equipment. Summary of Cost-Benefit Analysis. Page B-2 of the Cost-Benefit Analysis included as Attachment B presents a summary for each affected taxing jurisdiction of (1) the total estimated personal property tax revenues that would be generated if the Project Equipment did not receive personal property tax abatement, (2) the total estimated value of the PILOT Payments to be made by the Company for the proposed personal property tax abatement period and (3) the total estimated value of the personal property tax abatement to the Company. Please note that the actual value of the Project Equipment may differ from the estimated value assumed in this Plan and may impact the value of the PILOT Payments to be made by Company. -8- Personal Property Tax Revenues. Page B-3 of the Cost-Benefit Analysis included as Attachment B provides the projected personal property tax revenues that would be generated from the Project Equipment without personal property tax abatement. Page B-4 of the Cost-Benefit Analysis included as Attachment B provides the projected value of the PILOT Payments to be made by the Company based on an estimated personal property assessed value of the Project Equipment after it is acquired and installed. Page B-5 of the Cost-Benefit Analysis included as Attachment B provides the projected value of the personal property tax abatement to the Company based on an estimated personal property assessed value of the Project Equipment after it is acquired and installed. Refer to Attachment A for the assumptions related to the determination of the personal property assessed values and the personal property tax formulas. V. ASSUMPTIONS AND BASIS OF PLAN In preparing this Plan, we have made some key assumptions to estimate the fiscal impact of the personal property tax abatement and exemptions proposed for the Project Equipment. See Attachment A and page 1 of the Cost-Benefit Analysis included as Attachment B for a summary of these assumptions. In addition to the foregoing, in order to complete this Plan, we have generally reviewed and relied upon information furnished to us by, and have participated in conferences with, representatives of the City, representatives of the Company, and other persons as we have deemed appropriate. We do not assume any responsibility for the accuracy, completeness or fairness of any of the information provided to us and make no representation that we have independently verified the accuracy, completeness or fairness of such information. * * * * A-1 ATTACHMENT A SUMMARY OF KEY ASSUMPTIONS 1. The total cost of acquiring, delivering, assembling and installing the equipment, machinery and other personal property comprising the Project Equipment on the Project Site is estimated to cost $44,530,000. 2. It is anticipated that the equipment, machinery and other personal property comprising the Project Equipment will be purchased and delivered to the Project Site during the calendar years ending December 31, 2023, 2024 and 2025 and the anticipated cost of acquiring, delivering, assembling and installing each portion of the Project Equipment in each calendar year as well as the anticipated Modified Accelerated Cost Recovery System (“MACRS”) class-life of such Project Equipment for depreciation purposes is reflected in the table below (any of the estimated costs listed below that are attributable to the installation, assembly and delivery of such Project Equipment may be excludable from the calculation of personal property assessed value under Missouri law because assessed value of personal property is only based upon the acquisition cost of personal property): Year Acquired and Delivered to Project Site Estimated Cost of Acquiring and Installing Project Equipment MACRS Class-Life 2023 $1,050,000 5-year 2023 1,950,000 7-year 2023 5,500,000 10-year 2024 1,000,000 5-year 2024 2,000,000 7-year 2024 14,230,000 10-year 2025 1,000,000 5-year 2025 500,000 7-year 2025 17,300,000 10-year 3. The Project Equipment will be conveyed to the City by December 31 of the year in which the applicable portion of the Project Equipment is acquired and will be leased to the Company with an option to purchase. As long as the Project Equipment is owned by the City, it will be exempt from ad valorem personal property taxes. 4. 50% personal property tax abatement with respect to each separate investment in Project Equipment will be provided to the Company for a period of 10 years. The period of personal property tax abatement will begin in the year in which the applicable portion of the Project Equipment would first be subject to personal property taxation under Missouri law; however, in no event will the personal property tax abatement period for any portion of the Project Equipment extend beyond the calendar year ending December 31, 2035, as described in Section IV of the Plan under the caption entitled “Payments in Lieu of Taxes.” 5. During the 10-year personal property tax abatement period applicable to each portion of the Project Equipment expected to be acquired and delivered to the Project Site in calendar years ending December 31, 2023, 2024 and 2025, the Company will make PILOT Payments as follows: (a) Project Equipment Acquired/Delivered in 2023: (i) in years 2024 through 2033, inclusive, the Company will make PILOT Payments equal to 50% of the personal property taxes that would otherwise be due on that portion of the Project Equipment, but for the City’s ownership thereof; and A-2 (ii) in years 2034 and 2035, inclusive, the Company will make PILOT Payments equal to 100% of the personal property taxes that would otherwise be due on that portion of the Project Equipment, but for the City’s ownership thereof. (b) Project Equipment Acquired/Delivered in 2024: (i) in years 2025 through 2034, inclusive, the Company will make PILOT Payments equal to 50% of the personal property taxes that would otherwise be due on that portion of the Project Equipment, but for the City’s ownership thereof; and (ii) in year 2035, inclusive, the Company will make PILOT Payments equal to 100% of the personal property taxes that would otherwise be due on that portion of the Project Equipment, but for the City’s ownership thereof. (c) Project Equipment Acquired/Delivered in 2025: (i) in years 2026 through 2035, inclusive, the Company will make PILOT Payments equal to 50% of the personal property taxes that would otherwise be due on that portion of the Project Equipment, but for the City’s ownership thereof. 6. Personal property taxes are calculated using the following formula: (Assessed Value * Tax Rate)/100 7. The assessed value of the personal property comprising the Project Equipment is calculated using the following formula: (Cost * Depreciation Factor) * Assessment Ratio of 33.33% [Remainder of this page intentionally left blank.] A-3 8. In determining the assessed valuation of the personal property comprising the Project Equipment, a depreciation factor is applied at the end of each year which depends on the recovery period of such personal property. The Company represented that the personal property comprising the Project Equipment is expected to have either a 5-year recovery period, 7-year recovery period or 10-year recovery period. The depreciation factor used for personal property with a 5-year recovery period, 7-year recovery period and 10-year recovery period is reflected in the table below (note: year 0 represents the calendar year in which the personal property was acquired and year 1 represents the calendar year immediately following the year the personal property was acquired - the depreciation factor reflected in each year is multiplied by the original cost of the personal property): Recovery Period Depreciation Factors Year 5-Year Recovery Period 7-Year Recovery Period 10-Year Recovery Period 0 100.00% 100.00% 100.00% 1 85.00% 89.29% 92.50% 2 59.50% 70.16% 78.62% 3 41.65% 55.13% 66.83% 4 24.99% 42.88% 56.81% 5 10.00% 30.63% 48.07% 6 10.00% 18.38% 39.33% 7 10.00% 10.00% 30.59% 8 10.00% 10.00% 21.85% 9 10.00% 10.00% 15.00% 10 and on 10.00% 10.00% 15.00% 9. The tax rates used in this Plan reflect the rates in effect for the tax year ended December 31, 2022. The tax rates were held constant through the December 31, 2035, tax year. * * * The Cost-Benefit Analysis has been prepared on the basis of factual information and assumptions provided to Gilmore & Bell, P.C. by, or on behalf of, the City or the Company. This information is provided in conjunction with our legal representation of the City, as its bond counsel, for this transaction. It is not intended as financial advice or a financial recommendation to the Company, the City or any other taxing jurisdiction that may be affected by the Project. Gilmore & Bell, P.C. is not a financial advisor or a “municipal advisor” as defined in the Securities Exchange Act of 1934, as amended. ATTACHMENT B COST-BENEFIT ANALYSIS [See attached] (Scholastic Inc.) COST-BENEFIT ANALYSIS PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT City of Jefferson, Missouri Summary of Key Assumptions 1 Summary of Personal Property Tax Impact Analysis 2 Projected Personal Property Tax Revenues Without Abatement on Project Equipme 3 Projected Revenues Generated From PILOT Payments on Project Equipment 4 Projected Value of Personal Property Tax Abatement on Project Equipment 5 Table of Contents This information is provided based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This information is intended to provide factual information only and is provided in conjunction with our legal representation. It is not intended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a “municipal advisor” as defined in the Securities Exchange Act of 1934, as amended. City of Jefferson, Missouri (Scholastic Inc.) Cost-Benefit Analysis 1/11/2023 Initial year taxes assessed 2024 Annual investments in Project Equipment:Year Acquired Recovery Period Est. Cost 2023 5-Year 1,050,000$ 2023 7-Year 1,950,000 2023 10-Year 5,500,000 8,500,000$ Year Acquired Recovery Period Est. Cost 2024 5-Year 1,000,000$ 2024 7-Year 2,000,000 2024 10-Year 14,230,000 17,230,000$ Year Acquired Recovery Period Est. Cost 2025 5-Year 1,000,000$ 2025 7-Year 500,000 2025 10-Year 17,300,000 18,800,000$ 44,530,000$ Assessed value as a percentage of appraised value for Project Equipment (personal property):33.33% Terms of Personal Property Tax Abatement for Project Equipment: Years 1-10 50.0% The Project Equipment will be depreciated using the following 5-year, 7-year and 10-year recovery period schedules: Year 5-Year 7-Year 10-Year 0 100.00%100.00%100.00% 1 85.00%89.29%92.50% 2 59.50%70.16%78.62% 3 41.65%55.13%66.83% 4 24.99%42.88%56.81% 5 10.00%30.63%48.07% 6 10.00%18.38%39.33% 7 10.00%10.00%30.59% 8 10.00%10.00%21.85% 9 10.00%10.00%15.00% 10 and on 10.00%10.00%15.00% Summary of Key Assumptions Recovery Period in Years Total Cost of Project Equipment Acquired in 2023: Total Cost of Project Equipment Acquired in 2024: Total Cost of Project Equipment Acquired in 2025: Total Cost of Project Equipment: City of Jefferson, Missouri (Scholastic Inc.) Cost-Benefit Analysis -1 -1/11/2023 Summary of Personal Property Tax Impact Analysis Taxing Jurisdiction 2022 Tax Rate per $100 of AV Projected Personal Property Tax Revenues Generated from Project Equipment Without Abatement (Years 2024-2035) Projected Revenues Generated from PILOT Payments on Project Equipement (Years 2024-2035) Projected Value of Personal Property Tax Abatement on Project Equipment (Years 2024-2035) Cole County - General Revenue 0.0665 44,421$ 22,729$ 21,691$ Cole County - Road & Bridge 0.2779 185,631 94,985 90,646 Cole County Special Services (Developmental Disabilities Board)0.0927 61,922 31,684 30,237 Jefferson City/Cole County Library District 0.2000 133,596 68,359 65,237 Jefferson City 0.4600 307,270 157,226 150,044 Jefferson City Fire Pension Fund 0.0961 64,193 32,847 31,346 Jefferson City School District 4.7593 3,179,110 1,626,709 1,552,400 State of Missouri - Blind Pension Fund 0.0300 20,039 10,254 9,785 5.9825 3,996,181$ 2,044,794$ 1,951,387$ City of Jefferson, Missouri (Scholastic Inc.) Cost-Benefit Analysis -2 -1/11/2023 Projected Personal Property Tax Revenues Without Abatement on Project Equipment 2,573,461$ 7,371,103$ 11,889,740$ 9,932,065$ 8,262,986$ 6,823,301$ 5,538,102$ 4,383,127$ 3,325,109$ 2,496,267$ 2,101,290$ 2,101,290$ Taxing Jurisdiction 2022 Tax Rate per $100 of AV 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Cole County - General Revenue 0.0665 1,711$ 4,902$ 7,907$ 6,605$ 5,495$ 4,538$ 3,683$ 2,915$ 2,211$ 1,660$ 1,397$ 1,397$ 44,421$ Cole County - Road & Bridge 0.2779 7,152 20,484 33,042 27,601 22,963 18,962 15,390 12,181 9,240 6,937 5,839 5,839 185,631 Cole County Special Services (Developmental Disabilities Board)0.0927 2,386 6,833 11,022 9,207 7,660 6,325 5,134 4,063 3,082 2,314 1,948 1,948 61,922 Jefferson City/Cole County Library District 0.2000 5,147 14,742 23,779 19,864 16,526 13,647 11,076 8,766 6,650 4,993 4,203 4,203 133,596 Jefferson City 0.4600 11,838 33,907 54,693 45,688 38,010 31,387 25,475 20,162 15,296 11,483 9,666 9,666 307,270 Jefferson City Fire Pension Fund 0.0961 2,473 7,084 11,426 9,545 7,941 6,557 5,322 4,212 3,195 2,399 2,019 2,019 64,193 Jefferson City School District 4.7593 122,479 350,813 565,868 472,697 393,260 324,741 263,575 208,606 158,252 118,805 100,007 100,007 3,179,110 State of Missouri - Blind Pension Fund 0.0300 772 2,211 3,567 2,980 2,479 2,047 1,661 1,315 998 749 630 630 20,039 Totals 5.9825 153,957$ 440,976$ 711,304$ 594,186$ 494,333$ 408,204$ 331,317$ 262,221$ 198,925$ 149,339$ 125,710$ 125,710$ 3,996,181$ Year Project Equipment (5-Year Depreciation) Acquired Estimated Cost of 5-Year Project Equipment 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2023 1,050,000 297,470 208,229 145,760 87,456 34,997 34,997 34,997 34,997 34,997 34,997 34,997 34,997 2024 1,000,000 - 283,305 198,314 138,819 83,292 33,330 33,330 33,330 33,330 33,330 33,330 33,330 2025 1,000,000 - - 283,305 198,314 138,819 83,292 33,330 33,330 33,330 33,330 33,330 33,330 3,050,000 297,470 491,534 627,379 424,589 257,108 151,618 101,657 101,657 101,657 101,657 101,657 101,657 Year Project Equipment (7-Year Depreciation) Acquired Estimated Cost of 7-Year Project Equipment 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2023 1,950,000 580,327 455,994 358,309 278,692 199,075 119,458 64,994 64,994 64,994 64,994 64,994 64,994 2024 2,000,000 - 595,207 467,687 367,497 285,838 204,180 122,521 66,660 66,660 66,660 66,660 66,660 2025 500,000 - - 148,802 116,922 91,874 71,460 51,045 30,630 16,665 16,665 16,665 16,665 4,450,000 580,327 1,051,202 974,798 763,110 576,787 395,097 238,559 162,284 148,319 148,319 148,319 148,319 Year Project Equipment (10-Year Decpreciation) Acquired Estimated Cost of 10-Year Project Equipment 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2023 5,500,000 1,695,664 1,441,223 1,225,094 1,041,413 881,195 720,978 560,761 400,543 274,973 274,973 274,973 274,973 2024 14,230,000 - 4,387,145 3,728,836 3,169,653 2,694,418 2,279,892 1,865,366 1,450,841 1,036,315 711,429 711,429 711,429 2025 17,300,000 - - 5,333,633 4,533,300 3,853,478 3,275,716 2,771,759 2,267,803 1,763,847 1,259,891 864,914 864,914 37,030,000 1,695,664 5,828,367 10,287,563 8,744,365 7,429,091 6,276,586 5,197,886 4,119,187 3,075,134 2,246,292 1,851,315 1,851,315 Year Project Equipment Acquired 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2023 2,573,461 2,105,446 1,729,164 1,407,561 1,115,267 875,432 660,751 500,533 374,963 374,963 374,963 374,963 2024 - 5,265,657 4,394,836 3,675,969 3,063,548 2,517,402 2,021,218 1,550,831 1,136,305 811,419 811,419 811,419 2025 - - 5,765,740 4,848,535 4,084,172 3,430,467 2,856,134 2,331,763 1,813,842 1,309,886 914,909 914,909 2,573,461 7,371,103 11,889,740 9,932,065 8,262,986 6,823,301 5,538,102 4,383,127 3,325,109 2,496,267 2,101,290 2,101,290 Estimated Assessed Value of Project Equipment Project Equipment Assessed Value (7-Year Depreciation) Project Equipment Assessed Value (5-Year Depreciation) Project Equipment Assessed Value (10-Year Depreciation) Project Equipment Assessed Value (TOTAL) City of St. Joseph, Missouri (Schutz Container Systems, Inc.) Cost Benefit Analysis -3 -1/11/2023 Projected Revenues Generated From PILOT Payments on Project Equipment (Personal Property) 2,573,461$ 2,105,446$ 1,729,164$ 1,407,561$ 1,115,267$ 875,432$ 660,751$ 500,533$ 374,963$ 374,963$ 374,963$ 374,963$ PILOT Payment 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%100.00%100.00% - 5,265,657$ 4,394,836$ 3,675,969$ 3,063,548$ 2,517,402$ 2,021,218$ 1,550,831$ 1,136,305$ 811,419$ 811,419$ 811,419$ PILOT Payment - 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%100.00% - - 5,765,740$ 4,848,535$ 4,084,172$ 3,430,467$ 2,856,134$ 2,331,763$ 1,813,842$ 1,309,886$ 914,909$ 914,909$ PILOT Payment - - 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00% Taxing Jurisdiction 2022 Tax Rate per $100 of AV 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Cole County - General Revenue 0.0665 856$ 2,451$ 3,953$ 3,302$ 2,747$ 2,269$ 1,841$ 1,457$ 1,106$ 830$ 823$ 1,093$ 22,729$ Cole County - Road & Bridge 0.2779 3,576 10,242 16,521 13,801 11,481 9,481 7,695 6,090 4,620 3,469 3,441 4,568 94,985 Cole County Special Services (Developmental Disab 0.0927 1,193 3,417 5,511 4,604 3,830 3,163 2,567 2,032 1,541 1,157 1,148 1,524 31,684 Jefferson City/Cole County Library District 0.2000 2,573 7,371 11,890 9,932 8,263 6,823 5,538 4,383 3,325 2,496 2,476 3,288 68,359 Jefferson City 0.4600 5,919 16,954 27,346 22,844 19,005 15,694 12,738 10,081 7,648 5,741 5,695 7,562 157,226 Jefferson City Fire Pension Fund 0.0961 1,237 3,542 5,713 4,772 3,970 3,279 2,661 2,106 1,598 1,199 1,190 1,580 32,847 Jefferson City School District 4.7593 61,239 175,406 282,934 236,348 196,630 162,371 131,787 104,303 79,126 59,402 58,926 78,235 1,626,709 State of Missouri - Blind Pension Fund 0.0300 386 1,106 1,783 1,490 1,239 1,023 831 657 499 374 371 493 10,254 5.9825 76,979$ 220,488$ 355,652$ 297,093$ 247,167$ 204,102$ 165,659$ 131,110$ 99,462$ 74,670$ 74,071$ 98,342$ 2,044,794$ Estimated Assessed Value of Project Equipment Acquired in 2023 Estimated Assessed Value of Project Equipment Acquired in 2025 Estimated Assessed Value of Project Equipment Acquired in 2024 City of Jefferson, Missouri (Scholastic Inc.) Cost-Benefit Analysis -4 -1/11/2023 Projected Value of Personal Property Tax Abatement on Project Equipment 2,573,461$ 2,105,446$ 1,729,164$ 1,407,561$ 1,115,267$ 875,432$ 660,751$ 500,533$ 374,963$ 374,963$ Abatement Percentage 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00% - 5,265,657$ 4,394,836$ 3,675,969$ 3,063,548$ 2,517,402$ 2,021,218$ 1,550,831$ 1,136,305$ 811,419$ 811,419$ Abatement Percentage - 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00% - - 5,765,740$ 4,848,535$ 4,084,172$ 3,430,467$ 2,856,134$ 2,331,763$ 1,813,842$ 1,309,886$ 914,909$ 914,909$ Abatement Percentage - - 50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00% Taxing Jurisdiction 2022 Tax Rate per $100 of AV 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Cole County - General Revenue 0.0665 856$ 2,451$ 3,953$ 3,302$ 2,747$ 2,269$ 1,841$ 1,457$ 1,106$ 830$ 574$ 304$ Cole County - Road & Bridge 0.2779 3,576 10,242 16,521 13,801 11,481 9,481 7,695 6,090 4,620 3,469 2,399 1,271 Cole County Special Services (Developmental Dis 0.0927 1,193 3,417 5,511 4,604 3,830 3,163 2,567 2,032 1,541 1,157 800 424 Jefferson City/Cole County Library District 0.2000 2,573 7,371 11,890 9,932 8,263 6,823 5,538 4,383 3,325 2,496 1,726 915 Jefferson City 0.4600 5,919 16,954 27,346 22,844 19,005 15,694 12,738 10,081 7,648 5,741 3,971 2,104 Jefferson City Fire Pension Fund 0.0961 1,237 3,542 5,713 4,772 3,970 3,279 2,661 2,106 1,598 1,199 830 440 Jefferson City School District 4.7593 61,239 175,406 282,934 236,348 196,630 162,371 131,787 104,303 79,126 59,402 41,081 21,772 State of Missouri - Blind Pension Fund 0.0300 386 1,106 1,783 1,490 1,239 1,023 831 657 499 374 259 137 5.9825 76,979$ 220,488$ 355,652$ 297,093$ 247,167$ 204,102$ 165,659$ 131,110$ 99,462$ 74,670$ 51,639$ 27,367$ Estimated Assessed Value of Project Equipment Acquired in 2023 Estimated Assessed Value of Project Equipment Acquired in 2025 Estimated Assessed Value of Project Equipment Acquired in 2024 City of Jefferson, Missouri (Scholastic Inc.) Cost-Benefit Analysis -5 -1/11/2023 Gilmore & Bell, P.C. Draft v1 – January 5, 2023 CITY OF JEFFERSON, MISSOURI, the City, AND BOKF, N.A., as Trustee ________________ TRUST INDENTURE Dated as of February 1, 2023 ________________ Relating to: $44,700,000 (Aggregate Maximum Principal Amount) City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 TRUST INDENTURE TABLE OF CONTENTS Page Parties .............................................................................................................................. 1 Recitals ............................................................................................................................ 1 Granting Clauses ............................................................................................................. 2 ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms ....................................................................................... 3 Section 102. Rules of Interpretation ...................................................................................................... 8 Section 103. Date of Indenture .............................................................................................................. 8 ARTICLE II THE BONDS Section 201. Title and Amount of Bonds ............................................................................................... 9 Section 202. Nature of Obligation ......................................................................................................... 9 Section 203. Denomination, Number and Dating of the Bonds ............................................................ 9 Section 204. Method and Place of Payment of Bonds .......................................................................... 9 Section 205. Execution and Authentication of Bonds ......................................................................... 10 Section 206. Registration, Transfer and Exchange of Bonds .............................................................. 11 Section 207. Persons Deemed Owners of Bonds ................................................................................ 11 Section 208. Authorization of the Series 2023 Bonds ......................................................................... 12 Section 209. Authorization of Additional Bonds ................................................................................. 14 Section 210. Mutilated, Lost, Stolen or Destroyed Bonds .................................................................. 16 Section 211. Cancellation and Destruction of Bonds Upon Payment ................................................. 16 ARTICLE III REDEMPTION OF BONDS Section 301. Redemption of Bonds ..................................................................................................... 16 Section 302. Effect of Call for Redemption ........................................................................................ 17 Section 303. Notice of Redemption ..................................................................................................... 17 ARTICLE IV FORM OF BONDS Section 401. Form Generally ............................................................................................................... 17 ARTICLE V CUSTODY AND APPLICATION OF BOND PROCEEDS Section 501. Creation of Funds ........................................................................................................... 17 (ii) Section 502. Deposits into the Project Fund........................................................................................ 18 Section 503. Disbursements from the Project Fund ............................................................................ 18 Section 504. Completion of the Project ............................................................................................... 18 Section 505. Deposits into and Disbursements from the Costs of Issuance Fund ............................... 18 Section 506. Disposition Upon Acceleration ....................................................................................... 19 ARTICLE VI REVENUES AND FUNDS Section 601. Deposits Into the Bond Fund .......................................................................................... 19 Section 602. Application of Moneys in the Bond Fund ...................................................................... 19 Section 603. Payments Due on Days Other Than Business Days ....................................................... 20 Section 604. Nonpresentment of Bonds .............................................................................................. 20 ARTICLE VII SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS Section 701. Moneys to be Held in Trust ............................................................................................ 21 Section 702. Investment of Moneys in Project Fund and Bond Fund ................................................. 21 Section 703. Record Keeping .............................................................................................................. 21 ARTICLE VIII GENERAL COVENANTS AND PROVISIONS Section 801. Payment of Principal and Interest ................................................................................... 21 Section 802. Authority to Execute Indenture and Issue Bonds ........................................................... 22 Section 803. Performance of Covenants.............................................................................................. 22 Section 804. Instruments of Further Assurance ................................................................................... 22 Section 805. Recordings and Filings ................................................................................................... 22 Section 806. Inspection of Project Books ............................................................................................ 22 Section 807. Enforcement of Rights Under the Lease ......................................................................... 23 ARTICLE IX DEFAULT AND REMEDIES Section 901 Events of Default; Notice; Opportunity to Cure ............................................................. 23 Section 902. Acceleration of Maturity in Event of Default ................................................................. 23 Section 903. Surrender of Possession of Trust Estate; Rights and Duties of Trustee in Possession ............................................................................................................... 24 Section 904. Appointment of Receivers in Event of Default .............................................................. 24 Section 905. Exercise of Remedies by the Trustee .............................................................................. 24 Section 906. Limitation on Exercise of Remedies by Owners ............................................................ 25 Section 907. Right of Owners to Direct Proceedings .......................................................................... 25 Section 908. Application of Moneys in Event of Default ................................................................... 26 Section 909. Remedies Cumulative ..................................................................................................... 27 Section 910. Waivers of Events of Default .......................................................................................... 27 (iii) ARTICLE X THE TRUSTEE Section 1001. Acceptance of the Trusts................................................................................................. 27 Section 1002. Fees, Charges and Expenses of the Trustee .................................................................... 29 Section 1003. Notice to Owners if Default Occurs ............................................................................... 30 Section 1004. Intervention by the Trustee ............................................................................................. 30 Section 1005. Successor Trustee Upon Merger, Consolidation or Sale ................................................ 30 Section 1006. Resignation of Trustee .................................................................................................... 30 Section 1007. Removal of Trustee ......................................................................................................... 30 Section 1008. Appointment of Successor Trustee ................................................................................. 31 Section 1009. Vesting of Trusts in Successor Trustee ........................................................................... 31 Section 1010. Right of Trustee to Pay Taxes and Other Charges .......................................................... 31 Section 1011. Trust Estate May be Vested in Co-Trustee ...................................................................... 31 Section 1012. Accounting ..................................................................................................................... 32 Section 1013. Performance of Duties Under the Lease ......................................................................... 32 ARTICLE XI SUPPLEMENTAL INDENTURES Section 1101. Supplemental Indentures Not Requiring Consent of Owners ......................................... 32 Section 1102. Supplemental Indentures Requiring Consent of Owners ................................................ 33 Section 1103. Company’s Consent to Supplemental Indentures ........................................................... 33 Section 1104. Opinion of Counsel ......................................................................................................... 34 ARTICLE XII SUPPLEMENTAL LEASES Section 1201. Supplemental Leases Not Requiring Consent of Owners ............................................... 34 Section 1202. Supplemental Leases Requiring Consent of Owners ...................................................... 34 Section 1203. Opinion of Counsel ......................................................................................................... 34 ARTICLE XIII SATISFACTION AND DISCHARGE OF INDENTURE Section 1301. Satisfaction and Discharge of this Indenture .................................................................. 35 Section 1302. Bonds Deemed to be Paid ............................................................................................... 35 ARTICLE XIV MISCELLANEOUS PROVISIONS Section 1401. Consents and Other Instruments by Owners .................................................................. 36 Section 1402. Limitation of Rights Under this Indenture ..................................................................... 36 Section 1403. Notices ............................................................................................................................ 36 Section 1404. Severability ..................................................................................................................... 37 Section 1405. Execution in Counterparts .............................................................................................. 37 Section 1406. Governing Law ............................................................................................................... 37 Section 1407. Electronic Storage .......................................................................................................... 38 Section 1408. Anti-Discrimination Against Israel Act .......................................................................... 38 (iv) Signatures and Seal ....................................................................................................... S-1 Exhibit A: Description of Project Site Exhibit B: Project Equipment Exhibit C: Form of Bonds Exhibit D: Form of Representation Letter TRUST INDENTURE THIS TRUST INDENTURE dated as of February 1, 2023, (the “Indenture”) between the CITY OF JEFFERSON, MISSOURI, a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri (the “City”), and UMB BANK, N.A., a national banking association duly organized and existing and authorized to accept and execute trusts of the character herein set forth under the laws of the United States of America, with a corporate trust office located in the City of Kansas City, Missouri, as Trustee (the “Trustee”); RECITALS: 1. The City is authorized and empowered pursuant to the provisions of Article VI, Section 27(b) of the Missouri Constitution and Sections 100.010 through 100.200, inclusive, of the Revised Statutes of Missouri, as amended (collectively, the “Act”), to purchase, construct, extend and improve certain projects (as defined in the Act) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or businesses for manufacturing, commercial, research and development, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable. 2. The City Council of the City adopted Resolution No. RS2022-32 on October 17, 2022, expressing the official intent of the City to issue industrial development revenue bonds under the Act to finance an economic development project (the “Project”) for Scholastic Inc., a New York corporation (the “Company”), consisting of acquiring and installing new machinery, equipment and other personal property (the “Project Equipment” as more fully described on Exhibit B hereto) to be installed at the Company’s existing facility located at 6336 Algoa Road in the City (the “Project Site” as more fully described on Exhibit A hereto). 3. Following notice to the affected taxing jurisdictions in accordance with Section 100.059.1 of the Act, the City Council of the City adopted Ordinance No. [____] on February 6, 2023 (the “Ordinance”), (a) approving a plan for the Company’s Project (the “Plan”) and (b) authorizing the issuance of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum aggregate principal amount of $44,700,000 (the “Series 2023 Bonds”), to pay costs of the Project. 4. Pursuant to the Ordinance, the City is authorized to execute and deliver (a) this Indenture for the purpose of issuing and securing the Bonds, (b) the Lease Agreement dated as of February 1, 2023 (the “Lease”) with the Company, as lessee, under which the City, as lessor, will cause the Company to acquire and install the Project Equipment and will lease the Project Equipment to the Company, in consideration of rental payments to be paid by the Company which will be sufficient to pay the principal of and interest on the Bonds, and (c) the Performance Agreement dated as of February 1, 2023 (the “Performance Agreement”), between the City and the Company, for the purpose of setting forth the terms and conditions of the Project Equipment’s exemption from ad valorem personal property taxes and certain payments in lieu of taxes to be made by the Company with respect to the Project Equipment. 5. All things necessary to make the Bonds, when authenticated by the Trustee and issued as in this Indenture provided, the valid and legally binding obligations of the City, and to constitute this Indenture a valid and legally binding pledge and assignment of the Trust Estate herein made for the security of the payment of the principal of and interest on the Bonds, have been done and performed, and the execution and delivery of this Indenture and the execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized. -2- NOW, THEREFORE, THIS TRUST INDENTURE WITNESSETH: GRANTING CLAUSES That the City, in consideration of the premises, the acceptance by the Trustee of the trusts hereby created, the purchase and acceptance of the Bonds by the Owners (defined herein) thereof, and of other good and valuable consideration, the receipt of which is hereby acknowledged, and in order to secure the payment of the principal of and interest on all of the Bonds issued and Outstanding (defined herein) under this Indenture from time to time according to their tenor and effect, and to secure the performance and observance by the City of all the covenants, agreements and conditions herein and in the Bonds contained, does hereby pledge and assign to the Trustee and its successors and assigns forever, the property described in paragraphs (a), (b) and (c) below (said property being herein referred to as the “Trust Estate”), to-wit: (a) All right, title and interest of the City in and to the Project Equipment together with the tenements, hereditaments, appurtenances, rights, easements, privileges and immunities thereunto belonging or appertaining and, to the extent permissible, all permits, certificates, approvals and authorizations; (b) All right, title and interest of the City in, to and under the Lease (excluding Unassigned Rights, as defined herein), and all rents, revenues and receipts derived by the City from the Project Equipment including, without limitation, all rentals and other amounts to be received by the City and paid by the Company under and pursuant to and subject to the provisions of the Lease; and (c) All moneys and securities from time to time held by or now or hereafter required to be paid to the Trustee under the terms of this Indenture, and any and all other real or personal property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, pledged, assigned or transferred as and for additional security hereunder by the City or by anyone in its behalf, or with its written consent, to the Trustee, which is hereby authorized to receive any and all such property at any and all times and to hold and apply the same subject to the terms hereof. TO HAVE AND TO HOLD, all and singular, the Trust Estate with all rights and privileges hereby pledged and assigned or agreed or intended so to be, to the Trustee and its successors and assigns forever; IN TRUST NEVERTHELESS, upon the terms and subject to the conditions herein set forth, for the equal and proportionate benefit, protection and security of all Owners from time to time of the Bonds Outstanding under this Indenture, without preference, priority or distinction as to lien or otherwise of any of the Bonds over any other of the Bonds except as expressly provided in or permitted by this Indenture; PROVIDED, HOWEVER, that if the City pays, or causes to be paid, the principal of and interest on the Bonds, at the time and in the manner mentioned in the Bonds, according to the true intent and meaning thereof, or provides for the payment thereof (as provided in Article XIII hereof), and pays or causes to be paid to the Trustee all other sums of money due or to become due to it in accordance with the terms and provisions hereof, then upon such final payments this Indenture and the rights hereby granted shall cease, determine and be void; otherwise, this Indenture shall be and remain in full force and effect. THIS INDENTURE FURTHER WITNESSETH, and it is hereby expressly declared, covenanted and agreed by and between the parties hereto, that all Bonds issued and secured hereunder are to be issued, authenticated and delivered and that all the Trust Estate is to be held and applied under, upon and subject to the terms, conditions, stipulations, covenants, agreements, trusts, uses and purposes as -3- hereinafter expressed, and the City does hereby agree and covenant with the Trustee and with the respective Owners from time to time, as follows: ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms. In addition to capitalized words and terms defined in the Lease and the Performance Agreement, which definitions shall be deemed to be incorporated herein, and capitalized terms defined elsewhere in this Indenture, the following capitalized words and terms as used in this Indenture shall have the following meanings, unless some other meaning is plainly intended: “Act” means, collectively, Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 through 100.200 of the Revised Statutes of Missouri, as amended. “Additional Bonds” means any additional parity bonds issued pursuant to Section 209 of this Indenture. “Additional Rent” means the additional rental amounts described in Section 5.2 of the Lease. “Assessor” means the County Assessor of Cole County, Missouri. “Authorized City Representative” means the Mayor, City Administrator, Finance Director, City Clerk or such other Person at the time designated to act on behalf of the City as evidenced by written certificate furnished to the Company and the Trustee containing the specimen signature of such Person and signed on behalf of the City by its Mayor. Such certificate may designate an alternate or alternates each of whom shall be entitled to perform all duties of the Authorized City Representative. “Authorized Company Representative” means the Person at the time designated to act on behalf of the Company as evidenced by written certificate furnished to the City and the Trustee containing the specimen signature of such Person and signed on behalf of the Company by authorized officers. Such certificate may designate an alternate or alternates each of whom shall be entitled to perform all duties of the Authorized Company Representative. “Basic Rent” means the rental described in Section 5.1 of the Lease. “Bond” or “Bonds” means the Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), issued, authenticated and delivered under and pursuant to this Indenture, including a series of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum aggregate principal amount of $44,700,000 and, upon the issuance of any Additional Bonds pursuant to Section 209 of this Indenture, the term “Bonds” shall include such Additional Bonds. “Bond Counsel” means Gilmore & Bell, P.C., Kansas City, Missouri. “Bond Fund” means the “City of Jefferson, Missouri, Bond Fund -- Scholastic Inc.” created in Section 501 of this Indenture. “Bond Purchase Agreement” means the agreement by that name with respect to the Bonds by and between the City and the Purchaser. -4- “Business Day” means any day other than a Saturday or Sunday or legal holiday or a day on which banks located in the city in which the principal corporate trust office or the principal payment office of the Trustee are required or authorized by law to remain closed. “City” means the City of Jefferson, Missouri, a home rule charter city and a municipal corporation organized and existing under the laws of the State of Missouri, and its successors and assigns. “Closing Date” means the date identified in the Bond Purchase Agreement for the initial issuance and delivery of the Bonds. “Closing Price” means the amount specified in writing by the Purchaser and agreed to by the City as the amount required to pay for the initial issuance of the Bonds on the Closing Date, which amount shall be equal to any Project Costs spent by the Company from its own funds before the Closing Date, including costs of issuance. “Company” means Scholastic Inc., a New York corporation, and its successors or assigns. “Completion Date” means the date of execution of the certificate required by Section 4.5 of the Lease and Section 504 hereof or December 31, 2025, whichever is earlier, except as otherwise provided in Section 4.5 of the Lease. “Costs of Issuance Fund” means the “City of Jefferson, Missouri, Costs of Issuance Fund -- Scholastic Inc.” created in Section 501 of this Indenture. “Cumulative Outstanding Principal Amount” means the aggregate principal amount of all Bonds Outstanding under the provisions of this Indenture, not to exceed $44,700,000, and any Additional Bonds issued hereunder, as reflected in the records maintained by the Trustee as provided in the Bonds and this Indenture. “Equipment Financing” means any financings which the Company may undertake with an Equipment Lender with respect to the Project Equipment or any portion thereof. “Equipment Financing Documents” means all loan agreements, notes, security documents, UCC financing statements, acknowledgements, assignments and other documents securing, evidencing or otherwise pertaining to any Equipment Financing. “Equipment Lender” means all third parties entering into any Equipment Financing Documents or receiving delivery of or the benefit from any Equipment Financing Documents, including the Equipment Lender’s designee, nominee, assignee, transferee, purchaser in foreclosure or receiver. “Event of Default” means, with respect to this Indenture, any Event of Default as defined in Section 901 hereof and, with respect to the Lease, any Event of Default as described in Section 12.1 of the Lease. “Full Insurable Value” means the reasonable replacement cost of the Project Equipment less physical depreciation and exclusive of land, excavations, footings, foundation and parking lots as determined in accordance with Section 7.2(a) of the Lease. “Government Securities” means direct obligations of, or obligations the payment of principal of and interest on which are unconditionally guaranteed by, the United States of America. -5- “Indenture” means this Trust Indenture, as from time to time amended and supplemented by Supplemental Indentures in accordance with the provisions of Article XI hereof. “Investment Securities” means any of the following securities: (a) Government Securities; (b) obligations of Fannie Mae, the Government National Mortgage Association, the Federal Financing Bank, the Federal Intermediate Credit Corporation, Federal Banks for Cooperatives, Federal Land Banks, Federal Home Loan Banks, Farmers Home Administration and Federal Home Loan Mortgage Corporation; (c) direct and general obligations of any state of the United States of America, to the payment of the principal of and interest on which the full faith and credit of such state is pledged, provided that at the time of their purchase under this Indenture such obligations are rated in either of the two highest rating categories by a nationally-recognized bond rating agency; (d) certificates of deposit, whether negotiable or nonnegotiable, issued by any bank or trust company organized under the laws of any state of the United States of America or any national banking association (including the Trustee or any of its affiliates), provided that such certificates of deposit shall be either (1) continuously and fully insured by the Federal Deposit Insurance Corporation, or (2) continuously and fully secured by such securities as are described above in clauses (a) through (c), inclusive, which shall have a market value at all times at least equal to the principal amount of such certificates of deposit and shall be deposited with the Trustee or a custodian bank, trust company or national banking association. The bank, trust company or national banking association holding each such certificate of deposit required to be so secured shall furnish the Trustee written evidence satisfactory to it that the aggregate market value of all such obligations securing each such certificate of deposit will at all times be an amount at least equal to the principal amount of each such certificate of deposit and the Trustee shall be entitled to rely on each such undertaking; (e) shares of a fund registered under the Investment Company Act of 1940, as amended, whose shares are registered under the Securities Act of 1933, as amended, having assets of at least $100,000,000, and which shares, at the time of purchase, are rated by S&P Global Ratings and Moody’s in one of the two highest rating categories (without regard to any refinements or gradation of rating category by numerical modifier or otherwise) assigned by such rating agencies for obligations of that nature; or (f) any other investment approved in writing by the Authorized City Representative and Owners of all of the Outstanding Bonds. “Lease” means the Lease Agreement dated as of February 1, 2023, between the City, as lessor, and the Company, as lessee, as from time to time amended and supplemented by Supplemental Leases in accordance with the provisions thereof and of Article XII of this Indenture. “Lease Term” means the period from the effective date of the Lease until the expiration thereof pursuant to Section 3.2 of the Lease. “Leasehold Security Agreement” means any leasehold security agreement, leasehold deed of trust, assignment of rents and leases, security agreement or other agreement relating to the Project Equipment permitted pursuant to the provisions of Section 10.4 of the Lease. -6- “Net Proceeds” means, when used with respect to any insurance or condemnation award with respect to the Project Equipment, the gross proceeds from the insurance or condemnation award remaining after payment of all expenses (including attorneys’ fees, Trustee’s fees and any extraordinary expenses of the City and the Trustee) incurred in the collection of such gross proceeds. “Outstanding” when used with reference to Bonds, means, as of a particular date, all Bonds theretofore authenticated and delivered, except: (a) Bonds previously cancelled by the Trustee or delivered to the Trustee for cancellation; (b) Bonds deemed to be paid in accordance with the provisions of Section 1302 hereof; and (c) Bonds in exchange for, or in lieu of other Bonds, which other Bonds have been authenticated and delivered pursuant to this Indenture. “Owner” or “Bondowner” means the registered owner of any Bond as recorded on the bond registration records maintained by the Trustee. “Paying Agent” means the Trustee and any other bank or trust company designated by this Indenture as paying agent for the Bonds at which the principal of or interest on the Bonds shall be payable. “Payment Date” means the date on which principal of or interest on any Bond, whether at the stated maturity thereof or the redemption date thereof, is payable, which shall be December 1 of each year that the Bonds are Outstanding. “Performance Agreement” means the Performance Agreement dated as of February 1, 2023, between the City and the Company, and acknowledged by the Assessor, as amended and supplemented from time to time. “Permitted Encumbrances” means, as of any particular time, as the same may encumber the Project Equipment (a) liens for ad valorem taxes, special assessments and other governmental charges not then delinquent, (b) this Indenture, the Lease and the Performance Agreement, (c) liens or security interests affecting an interest in the Project Equipment existing prior to the date of conveyance of the Project Equipment to the City, (d) liens and security interests granted pursuant to any Leasehold Security Agreement or any Equipment Financing Documents, and (e) any other lien, encumbrance, lease, easements, restrictions or covenants consented to in writing by the Company and the Owners of 100% of the principal amount of the Bonds. Nothing in this definition shall authorize or permit any party other than the Company to create or consent to the creation of any Permitted Encumbrance. “Person” means an individual, partnership, corporation, business trust, joint stock company, limited liability company, bank, insurance company, unincorporated association, joint venture or other entity of whatever nature. -7- “Principal Amount Advanced” means the amount set forth in each requisition certificate in accordance with Section 4.4 of the Lease, as reflected in the records maintained by the Trustee as provided in the Bonds and this Indenture. “Project” means the acquisition and installation of the Project Equipment on the Project Site as further described in Exhibit B attached hereto. “Project Costs” means all costs of acquiring and installing the Project Equipment including the following: (a) all costs and expenses necessary or incident to the acquisition of any portion of the Project Equipment, which the Company conveys to the City; (b) fees and expenses of consultants for any preliminary investigations and items necessary to the determination of the necessary equipment replacements and upgrades, preparation of specifications for the Project Equipment and supervision of the installation of the Project Equipment, as well as for the performance of all other duties of professionals and consultants in relation to the purchase and installation of the Project Equipment or the issuance of the Bonds; (c) all costs and expenses of every nature incurred in purchasing and installing the Project Equipment, including the actual cost of labor and materials, machinery, furnishings and equipment as payable to contractors and materialmen in connection with the acquisition and installation of the Project Equipment, but excluding any real property improvements; (d) interest accruing on the Bonds until the Completion Date; (e) reasonable expenses of administration, supervision and inspection properly chargeable to the Project Equipment, legal fees and expenses, fees and expenses of Bond Counsel, fees and expenses of accountants and other consultants, publication and printing expenses, and initial fees and expenses of the Trustee to the extent that said fees and expenses are necessary or incident to the issuance and sale of the Bonds or the acquisition and installation of the Project Equipment; (f) all other items of expense not elsewhere specified in this definition as may be necessary or incident to: (1) the authorization, issuance and sale of the Bonds, including costs of issuance of the Bonds; (2) the acquisition and installation of the Project Equipment; and (3) the financing thereof; and (g) reimbursement to the Company or those acting for it for any of the above enumerated costs and expenses incurred and paid by them before or after the execution of the Lease. “Project Equipment” means all items of machinery, equipment and other personal property acquired and installed on the Project Site pursuant to Article IV of the Lease and paid for, or reimbursed, in whole or in part from the proceeds of Bonds, as described in Exhibit B attached hereto and by this reference made a part hereof, and all replacements thereof and substitutions therefor which, pursuant to Section 8.2 of the Lease, constitute part of the Project Equipment. “Project Fund” means the “City of Jefferson, Missouri, Project Fund – Scholastic Inc.” created in Section 501 of this Indenture. -8- “Project Site” means the real estate upon which the Company’s existing facility is located in the City (at 6336 Algoa Road), which is where the Project Equipment will be situated, as further described in Exhibit A attached hereto. “Purchaser” means the entity identified in the Bond Purchase Agreement as the purchaser of the Bonds, and its successors or assigns. “State” means the State of Missouri. “Supplemental Indenture” means any indenture supplemental or amendatory to this Indenture entered into by the City and the Trustee pursuant to Article XI hereof. “Supplemental Lease” means any supplement or amendment to the Lease entered into pursuant to Article XII hereof. “Trust Estate” means the Trust Estate described in the Granting Clauses of this Indenture. “Trustee” means BOKF, N.A., St. Louis, Missouri, a national banking association organized and existing under the laws of the United States of America, and its successor or successors and any other corporation which at the time may be substituted in its place pursuant to and at the time serving as Trustee under this Indenture. “Unassigned Rights” means the City’s rights under the Lease to receive moneys for its own account and the City’s rights to indemnification or to be protected from liabilities by insurance policies required by the Lease, as provided in the Lease. Section 102. Rules of Interpretation. (a) Unless the context shall otherwise indicate, the words importing the singular number shall include the plural and vice versa, and words importing Persons shall include firms, associations and corporations, including public bodies, as well as natural Persons. (b) Wherever in this Indenture it is provided that either party shall or will make any payment or perform or refrain from performing any act or obligation, each such provision shall, even though not so expressed, be construed as an express covenant to make such payment or to perform, or not to perform, as the case may be, such act or obligation. (c) All references in this instrument to designated “Articles,” “Sections” and other subdivisions are, unless otherwise specified, to the designated Articles, Sections and subdivisions of this instrument as originally executed. The words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision. (d) Whenever an item or items are listed after the word “including”, such listing is not intended to be a listing that excludes items not listed. (e) The Table of Contents and the Article and Section headings of this Indenture shall not be treated as a part of this Indenture or as affecting the true meaning of the provisions hereof. Section 103. Date of Indenture. The dating of this Indenture as of February 1, 2023, is intended as and for the convenient identification of this Indenture only and is not intended to indicate that this Indenture -9- was executed and delivered on said date, this Indenture being executed and delivered and becoming effective simultaneously with the initial issuance of the Bonds. ARTICLE II THE BONDS Section 201. Title and Amount of Bonds. No Bonds may be issued under this Indenture except in accordance with the provisions of this Article. The Bonds authorized to be issued under this Indenture shall be designated as “City of Jefferson, Missouri, Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023,” with such other appropriate particular designation added to or incorporated in such title for the Bonds of any particular series of Additional Bonds as the City may determine. The maximum total principal amount of Bonds that may be issued hereunder is hereby expressly limited to $44,700,000 in one or more series of Bonds (except that such maximum total principal amount may be increased in connection with the issuance of Additional Bonds hereunder). Section 202. Nature of Obligation. The Bonds and the interest thereon shall be special obligations of the City payable solely out of the rents, revenues and receipts derived by the City from the Project Equipment and the Lease, and not from any other fund or source of the City. The Bonds are secured by a pledge and assignment of the Trust Estate to the Trustee in favor of the Owners, as provided in this Indenture. The Bonds and the interest thereon shall not constitute general obligations of the City, the State or any political subdivision thereof, and neither the City, the State nor any political subdivision thereof shall be liable thereon, and the Bonds shall not constitute an indebtedness within the meaning of any constitutional, charter or statutory debt limitation or restriction, and are not payable in any manner by taxation. Section 203. Denomination, Number and Dating of the Bonds. (a) The Bonds shall be issuable in the form of one fully-registered Bond, in substantially the form set forth in Exhibit C hereto, in the denomination of $0.01 or any multiple thereof. (b) The Bonds shall be dated by the Trustee as of the date of initial delivery thereof as provided herein. If the Bonds are at any time thereafter transferred, any replacement Bonds shall be dated as of the date of authentication thereof. The Bonds of each series will be numbered from 1 upward. Section 204. Method and Place of Payment of Bonds. (a) The principal of and interest on the Bonds shall be payable in any coin or currency of the United States of America which on the respective dates of payment thereof is legal tender for payment of public and private debts. -10- (b) Payment of the principal of the Bonds shall be made upon the presentation and surrender of such Bonds at the principal payment office of any Paying Agent named in the Bonds. The payment of principal on the Bonds shall be noted on the Bonds on Schedule I thereto and the registration books maintained by the Trustee pursuant to Section 206 hereof. Payment of the interest on the Bonds shall be made by the Trustee on each Payment Date to the Person appearing on the registration books of the Trustee hereinafter provided for as the Owner thereof on the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Payment Date by check or draft mailed to such Owner at such Owner’s address as it appears on such registration books. (c) In accordance with Section 5.1 of the Lease, provided that the Company, or any other affiliate of the Company, is the sole Owner of the Bonds, and the Company is lessee under the Lease, the Company, as lessee under the Lease, shall set-off the then-current Basic Rent payment against the City’s obligation to the Company as Bondowner under this Indenture in lieu of delivery of the Basic Rent on any Payment Date, without providing notice of such set-off to the Trustee. The Trustee may conclusively rely on the absence of any notice from the Company to the contrary as evidence that such set-off has occurred. At its option, on the final Payment Date, the Company may deliver to the Trustee for cancellation Bonds not previously paid and the Company, as lessee under the Lease, shall receive a credit against the Basic Rent payable by the Company under Section 5.1 of the Lease in an amount equal to the principal amount of the Bonds so tendered for cancellation plus accrued interest thereon. Notwithstanding anything contained in this Indenture, the Lease, the Bond Purchase Agreement or the Performance Agreement to the contrary, if the Company, or any other affiliate of the Company, is the Owner of all of the Bonds Outstanding, payments of principal and interest on the Bonds may be made via a transaction entry on the trust records held by the Trustee and the Paying Agent without requiring the Company to wire or otherwise transfer any moneys to the Trustee for payment to such Owner. (d) The Bonds and the original Schedule I thereto shall be held by the Trustee in trust, unless otherwise directed in writing by the Owner. If the Bonds are held by the Trustee, the Trustee shall, on each Payment Date, send a revised copy of Schedule I via facsimile or other electronic means to the Owner, the Company (if not the Owner) and the City. Absent manifest error, the amounts shown on Schedule I as noted by the Trustee shall be conclusive evidence of the principal amount paid on the Bonds. (e) If there is one Owner of the Bonds, the Trustee is authorized to make the final or any interim payments of principal on such Bonds by internal bank transfer or by electronic transfer to an account at a commercial bank or savings institution designated in writing by such Owner and located in the continental United States. The Trustee is also authorized to make interest payments on such Bonds by internal bank transfer or by electronic transfer to an account at a commercial bank or savings institution designated by such Owner and located in the continental United States. Section 205. Execution and Authentication of Bonds. (a) The Bonds shall be executed on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of the City Clerk, and shall have the corporate seal of the City affixed thereto or imprinted thereon. If any officer whose signature or facsimile thereof appears on the Bonds ceases to be such officer before the delivery of such Bond, such signature or facsimile thereof shall nevertheless be valid and sufficient for all purposes, the same as if such Person had remained in office until delivery. Any Bond may be signed by such Persons as at the actual time of the execution of such Bond are the proper officers to sign such Bond although at the date of such Bond such Persons may not have been such officers. (b) The Bonds shall have endorsed thereon a Certificate of Authentication substantially in the form set forth in Exhibit C hereof, which shall be manually executed by the Trustee. No Bond shall be -11- entitled to any security or benefit under this Indenture or shall be valid or obligatory for any purposes until such Certificate of Authentication has been duly executed by the Trustee. The executed Certificate of Authentication upon any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Indenture. The Certificate of Authentication on any Bond shall be deemed to have been duly executed if signed by any authorized signatory of the Trustee. Section 206. Registration, Transfer and Exchange of Bonds. (a) The Trustee shall keep books for the registration and for the transfer of Bonds as provided in this Indenture. (b) The Bonds may be transferred only upon the books kept for the registration and transfer of Bonds upon surrender thereof to the Trustee duly endorsed for transfer or accompanied by an assignment duly executed by the Owner or such Owner’s attorney or legal representative in such form as shall be satisfactory to the Trustee. In connection with any such transfer of the Bonds, the City and the Trustee shall receive an executed representation letter signed by the proposed assignee in substantially the form of Exhibit D hereto. Upon any such transfer, the City shall execute and the Trustee shall authenticate and deliver in exchange for such Bond a new fully registered Bond or Bonds, registered in the name of the transferee, of any denomination or denominations authorized by this Indenture, in an aggregate principal amount equal to the Outstanding principal amount of such Bond, of the same maturity and bearing interest at the same rate. (c) In all cases in which Bonds are exchanged or transferred hereunder the provisions of any legend restrictions on the Bonds shall be complied with and the City shall execute and the Trustee shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of this Indenture. All Bonds surrendered in any such exchange or transfer shall forthwith be cancelled by the Trustee. The City or the Trustee may make a reasonable charge for every such exchange or transfer of Bonds sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, and such charge shall be paid before any such new Bond shall be delivered. Neither the City nor the Trustee shall be required to make any such exchange or transfer of Bonds during the 15 days immediately preceding a Payment Date on the Bonds or, in the case of any proposed redemption of Bonds, during the 15 days immediately preceding the selection of Bonds for such redemption or after such Bonds or any portion thereof has been selected for redemption. (d) If any Owner fails to provide a certified taxpayer identification number to the Trustee, the Trustee may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure, which amount may be deducted by the Trustee from amounts otherwise payable to such Owner under such Owner’s Bond. (e) Notwithstanding any provision to the contrary contained herein or in the Lease, the Bonds shall at no time be owned or held by a Person other than the Company, or an affiliate entity of the Company, during the Lease Term; provided, however, if the Lease is assigned in whole pursuant to Section 13.1 thereof and the assignee entity expressly assumes all rights, duties and obligations of the Company under the Lease and the Performance Agreement, then a new Bond may be issued by the Trustee in the name of such assignee, and in substitution for the Bond issued in the name of the Company on the issue date of the Bonds, and this subsection (e) shall be of no further force and effect. Section 207. Persons Deemed Owners of Bonds. As to any Bond, the Person in whose name the same is registered as shown on the bond registration books required by Section 206 hereof shall be deemed and regarded as the absolute owner thereof for all purposes. Payment of or on account of the principal of and interest on any such Bond shall be made only to or upon the order of the Owner thereof or -12- a legal representative thereof. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. Section 208. Authorization of the Series 2023 Bonds. (a) The Series 2023 Bonds are authorized for the purpose of providing funds to pay all or a portion of the Project Costs, which includes costs of issuing the Bonds. The Series 2023 Bonds shall be dated as provided in Section 203(b) hereof, shall become due on December 1, 2035 (subject to prior redemption as provided in Article III hereof) and shall bear interest as specified in Section 208(f) hereof, payable on the dates specified in Section 208(f) hereof. (b) The Trustee is hereby designated as the Paying Agent. The Owners of a majority of Bonds then Outstanding may designate a different Paying Agent upon written notice to the City and the Trustee. (c) The Bonds shall be executed without material variance from the form and in the manner set forth in Exhibit C hereto and delivered to the Trustee for authentication. Prior to or simultaneously with the authentication and delivery of the Series 2023 Bonds by the Trustee, there shall be filed with the Trustee the following: (1) An original or certified copy of the Ordinance passed by the City Council authorizing the issuance of the Series 2023 Bonds and the execution of this Indenture and the Lease; (2) Executed counterparts of this Indenture, the Lease, the Performance Agreement and the Bond Purchase Agreement; (3) A representation letter from the Purchaser in substantially the form attached as Exhibit D hereto; (4) A request and authorization to the Trustee on behalf of the City, executed by the Authorized City Representative, to authenticate the Series 2023 Bonds and deliver the same to or at the written direction of the Purchaser upon payment to the Trustee, for the account of the City, of the purchase price thereof specified in the Bond Purchase Agreement. The Trustee shall be entitled to conclusively rely upon such request and authorization as to names of the purchaser and the amount of such purchase price; (5) An opinion of counsel nationally recognized on the subject of municipal bonds to the effect that the Series 2023 Bonds constitute valid and legally binding limited and special revenue obligations of the City; and (6) Such other certificates, statements, receipts, opinions and documents as the Trustee shall reasonably require for the delivery of the Series 2023 Bonds. (d) When the documents specified in subsection (c) of this Section have been filed with the Trustee, and when the Series 2023 Bonds have been executed and authenticated as required by this Indenture, either: (1) The Purchaser shall pay the Closing Price to the Trustee, and the Trustee shall endorse the Series 2023 Bonds in an amount equal to the Closing Price and then pursuant to Section 204(d) hereof either hold the Series 2023 Bonds in trust or if so directed in writing deliver the Series 2023 Bonds to or upon the order of the Purchaser; or -13- (2) The Company shall submit a requisition certificate in accordance with Section 4.4 of the Lease, in an amount equal to the Closing Price, and the Trustee shall authenticate and endorse the Series 2023 Bonds in an amount equal to the Closing Price and then pursuant to Section 204(d) hereof either hold the Series 2023 Bonds in trust for the Owners or if so directed in writing deliver the Series 2023 Bonds to the Owners (or another purchaser or assignee designated by the Owners). In either case, the Purchaser shall be deemed to have paid over to the Trustee, and the Trustee shall be deemed to have deposited into the Project Fund, an amount equal or up to the Closing Price. (e) Following the initial issuance and delivery of the Series 2023 Bonds, the Company may submit additional requisition certificates in accordance with Section 4.4 of the Lease, and the Trustee shall endorse the Bonds in an amount equal to the amount set forth in each requisition certificate. The date of endorsement of each Principal Amount Advanced as set forth on Schedule I to the Series 2023 Bonds shall be the date of the City’s approval of each requisition certificate. The Trustee shall keep a record of the total requisitions submitted for the Project Equipment and shall notify the City if the requisitions submitted exceed the maximum principal amount of the Bonds. Notwithstanding the foregoing, the Company shall be permitted to advance funds for eligible Project Costs. In such event, the Purchaser shall be deemed to have paid over to the Trustee, and the Trustee shall be deemed to have deposited into the Project Fund, an amount equal to such eligible Project Costs; provided that the Company shall submit to the Trustee a requisition certificate detailing the advance of funds for eligible Project Costs in accordance with Section 4.4 of the Lease. (f) The Series 2023 Bonds shall bear interest at the rate of 5.00% per annum on the Cumulative Outstanding Principal Amount of the Bonds. Such interest shall be payable in arrears on each December 1, commencing on December 1, 2023, and continuing thereafter until the Cumulative Outstanding Principal Amount is paid in full; provided that the aggregate maximum principal amount shall not exceed $44,700,000 (except as such amount may be increased in connection with the issuance of Additional Bonds) and further provided that the Bonds shall be paid in full no later than December 1, 2035. Interest shall be calculated on the basis of a year of 360 days consisting of twelve months of 30 days each. (g) The Trustee shall keep and maintain a record of the amount deposited or deemed to be deposited into the Project Fund pursuant to the terms of this Indenture as “Principal Amount Advanced” and shall enter the aggregate principal amount of the Bonds then Outstanding on its records as the “Cumulative Outstanding Principal Amount.” If the Trustee is holding the Bonds, such advanced amounts shall be reflected in Schedule I to the Bonds. To the extent that advances are deemed to have been made pursuant to a requisition submitted by the Company to the Trustee, the Trustee’s records and Schedule I to the Bonds, if the Trustee is holding the Bonds, of such advances shall be based solely on the requisitions provided to it. On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the Owners, pursuant to the redemption provisions of this Indenture, the Trustee shall enter on its records and Schedule I to the Bonds, if the Trustee is holding the Bonds, the principal amount paid on the Bonds as “Principal Amount Redeemed,” and shall enter the then Outstanding principal amount of the Bonds as “Cumulative Outstanding Principal Amount.” The records maintained by the Trustee as to amounts deposited into the Project Fund or principal amounts paid on the Bonds shall be the official records of the Cumulative Outstanding Principal Amount for all purposes, absent manifest error, and shall be in substantially the form of the Table of Cumulative Outstanding Principal Amount as set out in the form of Bonds in Exhibit C hereto. To the extent the Company sets-off its obligation to the City as lessee under the Lease against the City’s obligations to the Company as permitted by Section 204(c) the Trustee shall not be required to confirm that such set-off has occurred. If any moneys are deposited by the Trustee into the Project Fund, then the Trustee shall provide a statement of receipts and disbursements with respect thereto to the City and the Company on a monthly basis. After the Completion Date has been established as evidenced by a certificate signed by an Authorized Company Representative submitted to -14- the City and the Trustee as provided in Section 4.5 of the Lease and Section 504 hereof, the Trustee, to the extent it has not already done so pursuant to this Section or Section 1012 hereof, shall file a final statement of receipts and disbursements with respect thereto with the City and the Company. Section 209. Authorization of Additional Bonds. (a) Additional Bonds may be issued under and equally and ratably secured by this Indenture on a parity (except as otherwise provided in this Section) with the Bonds and any other Additional Bonds at any time and from time to time, upon compliance with the conditions set forth in this Section for any of the following purposes: (1) to provide funds to pay the costs of completing the Project, the total of such costs to be evidenced by a certificate signed by an Authorized Company Representative, (2) to provide funds to pay all or any part of the costs of repairing, replacing or restoring the Project Equipment in the event of damage, destruction or condemnation thereto or thereof, (3) to provide funds to pay all or any part of the costs of the acquisition or installation of such additions to the Project Equipment as the Company may deem necessary or desirable and as will not impair the nature of the Project as a “project” within the meaning and purposes of the Act, and (4) to provide funds for refunding all or any part of the Bonds of any series then Outstanding, including the payment of any premium thereon and interest to accrue to the designated redemption date and any expenses in connection with such refunding. (b) Before any Additional Bonds are issued under the provisions of this Section, the City shall pass an ordinance (1) authorizing the issuance of such Additional Bonds, fixing the principal amount thereof and describing the purpose or purposes for which such Additional Bonds are being issued, (2) authorizing the City to enter into a Supplemental Indenture for the purpose of issuing such Additional Bonds and establishing the terms and provisions of such series of Bonds and the form of the bonds of such series, (3) authorizing the City to enter into a Supplemental Lease Agreement with the Company to provide for lease payments at least sufficient to pay the principal of, redemption premium, if any, and interest on the Bonds and Additional Bonds then to be Outstanding (including the Additional Bonds to be issued) as the same become due, and to extend the term of the Lease if the maturity of any of the Additional Bonds would otherwise occur after the expiration of the term of the Lease, (4) authorizing the City to enter into a supplemental performance agreement with the Company to provide for payments in lieu of taxes with respect to the property being financed by the Additional Bonds, and (5) providing for such other matters as are appropriate because of the issuance of the Additional Bonds, which matters, in the judgment of the City, are not prejudicial to the City or the owners of the Bonds previously issued. (c) Such Additional Bonds shall have the same general title as the Bonds, except for an identifying series letter or date, shall be dated, shall mature on such dates, shall be in such denominations, shall be numbered, shall bear interest at such rates not exceeding the maximum rate then permitted by law payable at such times, and shall be redeemable at such times and prices (subject to the provisions of Article III of this Indenture), all as provided by the Supplemental Indenture authorizing the issuance of such Additional Bonds. Except as to any difference in the date, the maturities, denominations, the rates of interest or the provisions for redemption, such Additional Bonds shall be on a parity with and shall be entitled to the same benefit and security of this Indenture as the Bonds and any other Additional Bonds. (d) Such Additional Bonds shall be executed in the manner set forth in Section 205 hereof and shall be deposited with the Trustee for authentication, but prior to or simultaneously with the authentication and delivery of such Additional Bonds by the Trustee, and as a condition precedent thereto, there shall be filed with the Trustee the following: (1) An original or certified copy of the ordinance passed by the City Council authorizing the issuance of such Additional Bonds and the execution of the Supplemental Indenture, -15- Supplemental Lease, a supplement to the Performance Agreement and supplements to any other documents as may be necessary; (2) Original executed counterparts of the Supplemental Indenture, the Supplemental Lease Agreement and a supplement to the Performance Agreement; (3) A representation letter from the Purchaser in substantially the form attached as Exhibit D hereto; (4) A request and authorization to the Trustee on behalf of the City, executed by the Authorized City Representative, to authenticate the Additional Bonds and deliver the same to the Purchaser upon payment, for the account of the City, of the purchase price thereof specified in the bond purchase agreement executed in connection with the purchase of the Additional Bonds. The Trustee shall be entitled to conclusively rely upon such request and authorization as to names of the purchaser and the amount of such purchase price; (5) An opinion of counsel nationally recognized on the subject of municipal bonds to the effect that the Additional Bonds constitute valid and legally binding limited and special revenue obligations of the City; and (6) Such other certificates, statements, receipts, opinions and documents as the Trustee shall reasonably require for the delivery of the Additional Bonds. When the documents specified in this subsection (d) have been filed with the Trustee, and when the Additional Bonds have been executed and authenticated as required by this Indenture, either: (1) The Purchaser shall pay the purchase price to the Trustee, and the Trustee shall endorse the Additional Bonds in an amount equal to the purchase price and then either hold the Additional Bonds in trust or if so directed in writing deliver the Additional Bonds to or upon the order of the Purchaser; or (2) The Company shall submit a requisition certificate in accordance with Section 4.4 of the Lease, in an amount equal to the purchase price of the Additional Bonds, and the Trustee shall authenticate and endorse the Additional Bonds in an amount equal to the purchase price and pursuant to Section 204(d) hereof either hold the Additional Bonds in trust for the Purchaser or if so directed in writing deliver the Bonds to the Purchaser (or another purchaser or assignee designated by the Purchaser). In either case, the Purchaser shall be deemed to have paid over to the Trustee, and the Trustee shall be deemed to have deposited an amount equal or up to the purchase price of any Additional Bonds. (e) When the documents specified above have been filed with the Trustee, and when such Additional Bonds have been executed and authenticated as required by this Indenture, the Trustee shall deliver such Additional Bonds to or upon the order of the Purchaser thereof, but only upon payment to the Trustee of the purchase price of such Additional Bonds. The proceeds of the sale of such Additional Bonds (except Additional Bonds issued to refund Outstanding Bonds), including accrued interest and premium thereon, if any, shall be immediately paid over to the Trustee and shall be deposited and applied by the Trustee as provided in Article V hereof and in the Supplemental Indenture authorizing the issuance of such Additional Bonds. The proceeds of all Additional Bonds issued to refund Outstanding Bonds (excluding accrued interest and premium, if any, which shall be deposited in a separate account in the Debt Service Fund) shall be deposited by the Trustee, after payment or making provision for payment of all expenses incident to -16- such financing, to the credit of a special trust fund, appropriately designated, to be held in trust for the sole and exclusive purpose of paying the principal of, premium, if any, and interest on the Bonds to be refunded, as provided herein and in the Supplemental Indenture authorizing the issuance of such refunding Bonds. Section 210. Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond becomes mutilated, or is lost, stolen or destroyed, the City shall execute and the Trustee shall authenticate and deliver a new Bond of like series, date and tenor as the Bond mutilated lost, stolen or destroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Trustee, and in the case of any lost, stolen or destroyed Bond, there shall be first furnished to the City and the Trustee evidence of such loss, theft or destruction satisfactory to the Trustee, together with indemnity satisfactory to the Trustee to save, defend and hold each of the City and the Trustee harmless. If any such Bond has matured, instead of delivering a substitute Bond, the Trustee may pay the same without surrender thereof. Upon the issuance of any substitute Bond, the City and the Trustee may require the payment of an amount sufficient to reimburse the City and the Trustee for any tax or other governmental charge that may be imposed in relation thereto and any other reasonable fees and expenses incurred in connection therewith. Section 211. Cancellation and Destruction of Bonds Upon Payment. (a) All Bonds which have been paid or redeemed or which the Trustee has purchased or which have otherwise been surrendered to the Trustee under this Indenture, either at or before maturity shall be cancelled by the Trustee immediately upon the payment, redemption or purchase of such Bonds and the surrender thereof to the Trustee. (b) All Bonds cancelled under any of the provisions of this Indenture shall be destroyed by the Trustee in accordance with applicable laws and regulations and the Trustee’s policies and practices. The Trustee shall execute a certificate describing the Bonds so destroyed, and shall file executed counterparts of such certificate with the City and the Company. ARTICLE III REDEMPTION OF BONDS Section 301. Redemption of Bonds. (a) The Bonds are subject to redemption and payment at any time before the stated maturity thereof, at the option of the Company, on behalf of the City, and upon written instructions from the Company, (1) in whole, if the Company, in accordance with the terms of the Lease, exercises its option to purchase the Project Equipment and deposits an amount sufficient to effect such purchase pursuant to the Lease on the applicable redemption date, or (2) in part, if the Company prepays additional Basic Rent pursuant to the Lease. If only a portion of the Bonds are to be redeemed, the Trustee shall keep a record of the amount of Bonds to remain Outstanding following such redemption. Any redemption of Bonds pursuant to this paragraph shall be at a redemption price equal to the par value thereof being redeemed, plus accrued interest thereon, without premium or penalty, to the redemption date. Any redemption and payment of the Bonds shall account for any permitted set-off as set forth in Section 5.1 of the Lease. (b) The Bonds are subject to mandatory redemption, in whole or in part, to the extent of amounts deposited in the Bond Fund pursuant to Sections 9.1(a) or 9.2(c) of the Lease, in the event of substantial damage to or destruction or condemnation of substantially all of the Project Equipment. Bonds to be redeemed pursuant to this paragraph shall be called for redemption by the Trustee on the earliest practicable date for which timely notice of redemption may be given as provided hereunder. Any -17- redemption of Bonds pursuant to this paragraph shall be at a redemption price equal to the par value thereof being redeemed, plus accrued interest thereon, without premium or penalty, to the redemption date. Before giving notice of redemption to the Owners pursuant to this paragraph (b), money in an amount equal to the redemption price shall have been deposited in the Bond Fund. (c) At its option, the Company may deliver to the Trustee for cancellation any Bonds owned by the Company and not previously paid, and the Company shall receive a credit against the amounts payable by the Company for the redemption of such Bonds in an amount equal to the principal amount of the Bonds so tendered for cancellation, plus accrued interest. Section 302. Effect of Call for Redemption. Before or on the date fixed for redemption, funds, Government Securities, or a combination thereof, shall be placed with the Trustee which are sufficient to pay the Bonds called for redemption and accrued interest thereon, if any, to the redemption date. Upon the happening of the above conditions and appropriate written notice having been given, the Bonds or the portions of the principal amount of Bonds thus called for redemption shall cease to bear interest on the specified redemption date, and shall no longer be entitled to the protection, benefit or security of this Indenture and shall not be deemed to be Outstanding under the provisions of this Indenture. If the Bonds are fully redeemed before maturity and an amount of money equal to the Trustee’s and the Paying Agent’s agreed to fees and expenses hereunder accrued and to accrue in connection with such redemption is paid or provided for, the City shall, at the Company’s direction, deliver to the Company the items described in Section 11.2 of the Lease. Section 303. Notice of Redemption. If the Bonds are to be called for redemption as provided in Section 301(a) hereof, the Company shall deliver written notice to the City and the Trustee that it has elected to redeem all or a portion of the Bonds at least 40 days (10 days if the Purchaser is the Owner) prior to the scheduled redemption date. The Trustee shall then deliver written notice to the Owners at least 30 days (five days if the Purchaser is the Owner) prior to the scheduled redemption date by facsimile or by first-class mail stating the date upon which the Bonds will be redeemed and paid, unless such notice period is waived by the Owners in writing. ARTICLE IV FORM OF BONDS Section 401. Form Generally. The Bonds and the Trustee’s Certificate of Authentication to be endorsed thereon shall be issued in substantially the forms set forth in Exhibit C. The Bonds may have endorsed thereon such legends or text as may be necessary or appropriate to conform to any applicable rules and regulations of any governmental authority or any custom, usage or requirements of law with respect thereto. ARTICLE V CUSTODY AND APPLICATION OF BOND PROCEEDS Section 501. Creation of Funds. There are hereby created and ordered to be established in the custody of the Trustee the following separate special trust funds in the name of the City: (a) “City of Jefferson, Missouri, Bond Fund - Scholastic Inc., Series 2023” (herein called the “Bond Fund”); -18- (b) “City of Jefferson, Missouri, Project Fund - Scholastic Inc.” (herein called the “Project Fund”); and (c) “City of Jefferson, Missouri, Costs of Issuance Fund - Scholastic Inc.” (herein called the “Costs of Issuance Fund”). Upon the issuance of a series of Additional Bonds, if any, the Trustee shall create separate special trust funds similar to those set forth above for said series of Additional Bonds. Section 502. Deposits into the Project Fund. The proceeds of the sale of the Bonds (whether actually paid or deemed paid under Section 208(d) and (e) or Section 209(d) hereof), including Additional Payments provided for in the Bond Purchase Agreement, when received, excluding such amounts required to be paid into the Bond Fund pursuant to Section 601 hereof, shall be deposited by the Trustee into the Project Fund. Any money received by the Trustee from any other source for the purpose of purchasing and installing the Project Equipment shall pursuant to any written directions from the Person depositing such moneys also be deposited into the Project Fund. Section 503. Disbursements from the Project Fund. (a) The moneys in the Project Fund shall be disbursed or shall be deemed to be disbursed by the Trustee for the payment of, or reimbursement to the Company (or any other party that has made payment on behalf of the Company) for payment of, Project Costs upon receipt of requisition certificates signed by the Company in accordance with the provisions of Article IV of the Lease. The Trustee hereby covenants and agrees to disburse such moneys in accordance with such provisions. (b) If, pursuant to Section 208(d) or (e) or Section 209(d) hereof, the Trustee is deemed to have deposited into the Project Fund the amount specified in the requisition certificates submitted by the Company to the Trustee in accordance with the provisions of Article IV of the Lease, the Trustee shall upon endorsement of the Bonds in an equal amount be deemed to have disbursed such funds from the Project Fund to the Company (or such other purchaser designated by the Company) in satisfaction of the requisition certificate. If the Trustee is holding the Bonds, such deemed disbursement will be deemed to have been made on the date the Trustee endorses the Bond with respect to such additional amount. (c) In paying any requisition under this Section, the Trustee may rely as to the completeness and accuracy of all statements in such requisition certificate if such requisition certificate is signed by the Authorized Company Representative. If the City so requests in writing, a copy of each requisition certificate submitted to the Trustee for payment under this Section shall be promptly provided by the Trustee to the City. The City hereby authorizes and directs the Trustee to make disbursements in the manner and as provided for by the aforesaid provisions of the Lease. Section 504. Completion of the Project . The completion of the Project and payment of all costs and expenses incident to the acquisition and installation of the Project Equipment shall be evidenced by the filing with the Trustee of the certificate required by the provisions of Section 4.5 of the Lease. As soon as practicable after the Completion Date, any balance remaining in the Project Fund shall without further authorization be transferred by the Trustee to and deposited in the Bond Fund and applied as provided in Section 4.6 of the Lease. Section 505. Deposits into and Disbursements from the Costs of Issuance Fund. . Money deposited by the Company in the Costs of Issuance Fund shall be used solely to pay costs of issuing the Bonds or refunded to the Company as hereinafter provided. The Trustee shall without further authorization -19- disburse from the Costs of Issuance Fund, to the extent available, money sufficient to pay either (a) the amounts designated as costs of issuance in a requisition certificate submitted by the Company to the Trustee in accordance with Article IV of the Lease on or prior to the Closing Date, which will include the appropriate invoices corresponding to each such cost of issuance as attachments or (b) the amounts designated as costs of issuance in a closing memorandum provided to the Trustee on or before the Closing Date, which will include appropriate invoices corresponding to each such cost of issuance as attachments. The Trustee may rely conclusively on the amounts due as shown in either the requisition certificate or the closing memorandum and will not be required to make any independent inspection or investigation in connection therewith. Any of such money not used to pay costs of issuance by March 31, 2023 shall be refunded to the Company. Section 506. Disposition Upon Acceleration. If the principal of the Bonds has become due and payable pursuant to Section 902 hereof, upon the date of payment by the Trustee of any moneys due as hereinafter provided in Article IX hereof, any balance remaining in the Project Fund shall without further authorization be deposited in the Bond Fund by the Trustee, with advice to the City and to the Company of such action. ARTICLE VI REVENUES AND FUNDS Section 601. Deposits Into the Bond Fund. (a) The Trustee shall deposit into the Bond Fund, as and when received, (1) all accrued interest on the Bonds, if any, paid by the Purchaser; (2) all Basic Rent payable by the Company to the City specified in Section 5.1 of the Lease; (3) any Additional Rent payable by the Company specified in Section 5.2 of the Lease; (4) any amount in the Project Fund to be transferred to the Bond Fund pursuant to Section 504 hereof upon completion of the Project or pursuant to Section 506 hereof upon acceleration of the Bonds; (5) the balance of any Net Proceeds (as defined in the Lease) of condemnation awards or insurance received by the Trustee pursuant to Article IX of the Lease; (6) the amounts to be deposited in the Bond Fund pursuant to Sections 9.1(a) and (d) and 9.2(c) of the Lease; (7) all interest and other income derived from investments of Bond Fund moneys as provided in Section 702 hereof; and (8) all other moneys received by the Trustee under and pursuant to any of the provisions of the Lease when accompanied by directions from the Person depositing such moneys that such moneys are to be paid into the Bond Fund. (b) Unless the Company is exercising its right of offset pursuant to Section 5.1 of the Lease, the Trustee shall notify the Company in writing, at least 15 days prior to each date on which a payment is due under Section 5.1 of the Lease, of the amount that is payable by the Company pursuant to such Section. Section 602. Application of Moneys in the Bond Fund. (a) Except as provided in Section 604 and Section 908 hereof or in Section 4.6(a) of the Lease, moneys in the Bond Fund shall be expended solely for the payment of the principal of and the interest on the Bonds as the same mature and become due or upon the redemption thereof prior to maturity; provided, however, that any amounts received by the Trustee as Additional Rent under Section 5.2 of the Lease and deposited to the Bond Fund as provided in Section 601 above, shall be expended by the Trustee (1) without further authorization from the City for payment of the Trustee’s and Paying Agent’s fees and (2) disbursed for such other items of Additional Rent as they are received or due in accordance with the written direction of the City. -20- (b) The City hereby authorizes and directs the Trustee to withdraw sufficient funds from the Bond Fund to pay the principal of and the interest on the Bonds as the same become due and payable and to make said funds so withdrawn available to the Paying Agent for the purpose of paying said principal and interest. (c) Whenever the amount in the Bond Fund from any source whatsoever is sufficient to redeem all of the Bonds Outstanding and to pay interest to accrue thereon prior to such redemption, the City covenants and agrees, upon request of the Company, to take and cause to be taken the necessary steps to redeem all such Bonds on the next succeeding redemption date for which the required redemption notice may be given or on such later redemption date as may be specified by the Company. The Trustee may use any moneys in the Bond Fund to redeem a part of the Bonds Outstanding in accordance with and to the extent permitted by Article III hereof so long as the Company is not in default with respect to any payments under the Lease and to the extent said moneys are in excess of the amount required for payment of Bonds theretofore matured or called for redemption and past due interest, if any, in all cases when such Bonds have not been presented for payment. (d) After payment in full of the principal of and interest, if any, on the Bonds (or provision has been made for the payment thereof as provided in this Indenture), and the fees, charges and expenses of the Trustee, the City and any Paying Agent and any other amounts required to be paid under this Indenture, the Lease and the Performance Agreement, all amounts remaining in the Bond Fund shall be paid to the Company upon the expiration or sooner termination of the Lease. (e) Notwithstanding anything contained herein or in the Lease to the contrary, if the Purchaser, or any other affiliate of the Company, is the Owner of all of the Bonds Outstanding, payments of principal and interest on the Bonds may be made via a transaction entry on the trust records held by the Trustee and the Paying Agent without requiring the Company to wire or otherwise transfer any moneys to such Owner. Section 603. Payments Due on Days Other Than Business Days. In any case where the date of maturity of principal of or interest, if any, on the Bonds or the date fixed for redemption of any Bonds is not a Business Day, then payment of principal or interest, if any, need not be made on such date but may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest, if any, shall continue to accrue for the period after such date. Section 604. Nonpresentment of Bonds. If any Bond is not presented for payment when the principal thereof becomes due, either at maturity or otherwise, or at the date fixed for redemption thereof, if funds sufficient to pay such Bond shall have been made available to the Trustee, all liability of the City to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Trustee to hold such fund or funds, without liability for interest thereon, for the benefit of the Owner of such Bond who shall thereafter be restricted exclusively to such fund or funds for any claim of whatever nature on his part under this Indenture or on, or with respect to, said Bond. If any Bond is not presented for payment within one year following the date when such Bond becomes due, whether by maturity or otherwise, the Trustee shall without liability for interest thereon repay to the Company the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Company, and the Owner thereof shall be entitled to look only to the Company for payment, and then only to the extent of the amount so repaid, and the Company shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. -21- ARTICLE VII SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS Section 701. Moneys to be Held in Trust. All moneys deposited with or paid to the Trustee for account of the Bond Fund or the Project Fund under any provision of this Indenture, and all moneys deposited with or paid to any Paying Agent under any provision of this Indenture, shall be held by the Trustee or Paying Agent in trust and shall be applied only in accordance with the provisions of this Indenture and the Lease, and, until used or applied as herein provided, shall constitute part of the Trust Estate and be subject to the lien hereof. Neither the Trustee nor any Paying Agent shall be under any liability for interest on any moneys received hereunder except such as may be agreed upon in writing. Section 702. Investment of Moneys in Project Fund and Bond Fund. Moneys held in the Project Fund and the Bond Fund shall, pursuant to written direction of the Company, signed by the Authorized Company Representative, be separately invested and reinvested by the Trustee in Investment Securities which mature or are subject to redemption by the Owner prior to the date such funds will be needed. If the Company fails to provide written directions concerning investment of moneys held in the Project Fund and the Bond Fund, the Trustee is authorized to invest in such Investment Securities specified in paragraph (e) of the definition of Investment Securities, provided they mature or are subject to redemption prior to the date such funds will be needed. The Trustee is specifically authorized to implement its automated cash investment system to assure that cash on hand is invested and to charge its normal cash management fees and cash sweep account fees, which may be deducted from income earned on investments; provided that any such fees shall not exceed the interest income on the investment. Any such Investment Securities shall be held by or under the control of the Trustee and shall be deemed at all times a part of the fund in which such moneys are originally held, and the interest accruing thereon and any profit realized from such Investment Securities shall be credited to such fund, and any loss resulting from such Investment Securities shall be charged to such fund. After the Trustee has notice pursuant to Section 1001(h) hereof of the existence of an Event of Default, the Trustee shall direct the investment of moneys in the Bond Fund and the Project Fund. The Trustee shall sell and reduce to cash a sufficient amount of such Investment Securities whenever the cash balance in any Fund is insufficient for the purposes of such Fund. In determining the balance in any Fund, investments in such Fund shall be valued at the lower of their original cost or their fair market value as of the most recent Payment Date. The Trustee may make any and all investments permitted by the provisions of this Section through its own bond department or any affiliate or short-term investment department. Section 703. Record Keeping. The Trustee shall maintain records designed to show compliance with the provisions of this Article and with the provisions of Article VI hereof for at least six years after the payment of all of the Outstanding Bonds. ARTICLE VIII GENERAL COVENANTS AND PROVISIONS Section 801. Payment of Principal and Interest. The City covenants and agrees that it will, but solely from the rents, revenues and receipts derived from the Project Equipment and the Lease as described herein, deposit or cause to be deposited in the Bond Fund sufficient sums payable under the Lease promptly to meet and pay the principal of and the interest on the Bonds as they become due and payable at the place, on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning thereof. Nothing herein shall be construed as requiring the City to operate the Project Equipment -22- in any business-like manner other than as lessor or to use any funds or revenues from any source other than rents, funds and revenues derived from the Project Equipment. Section 802. Authority to Execute Indenture and Issue Bonds. The City covenants that it is duly authorized under the Constitution and laws of the State to execute this Indenture, to issue the Bonds and to pledge and assign the Trust Estate in the manner and to the extent herein set forth; that all action on its part for the execution and delivery of this Indenture and the issuance of the Bonds has been duly and effectively taken; that the Bonds in the hands of the Owners thereof are and will be valid and enforceable obligations of the City according to the import thereof. Section 803. Performance of Covenants. The City covenants that it will faithfully perform or cause to be performed at all times any and all covenants, undertakings, stipulations and provisions contained in this Indenture, in the Bonds and in all proceedings of its City Council pertaining thereto. The Trustee may take such action as it deems appropriate to enforce all such covenants, undertakings, stipulations and provisions of the City hereunder. Section 804. Instruments of Further Assurance. The City covenants that it will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, such Supplemental Indentures and such further acts, instruments, financing statements and other documents as the Trustee may reasonably require for the better pledging and assigning unto the Trustee the property and revenues herein described to the payment of the principal of and interest, if any, on the Bonds, upon being first indemnified by the Company for the cost thereof. The City covenants and agrees that, except as herein and in the Lease provided, it will not sell, convey, mortgage, encumber or otherwise dispose of any part of the Project Equipment or the rents, revenues and receipts derived therefrom or from the Lease, or of its rights under the Lease. Section 805. Recordings and Filings. The City shall cause to be kept and filed all financing statements, and hereby directs and authorizes the Trustee to file or cause to be kept and filed continuation statements with respect to such originally filed financing statements related to this Indenture and all supplements hereto and such other documents as may be required under the Uniform Commercial Code in order to fully preserve and protect the security of the Owners and the rights of the Trustee hereunder. The City will cooperate in causing this Indenture and all Supplemental Indentures, the Lease and all Supplemental Leases and all other security instruments to be recorded and filed, as may be applicable, in such manner and in such places as may be required by law in order to fully preserve and protect the security of the Owners and the rights of the Trustee hereunder. The Trustee shall file continuation statements with respect to each Uniform Commercial Code financing statement relating to the trust estate filed by the City at the time of the issuance of the Bonds with the appropriate filing office of the State, in such manner as may be required by the Uniform Commercial Code of the State; provided that a copy of the filed initial financing statement is timely delivered to the Trustee. In addition, unless the Trustee shall have been notified in writing by the City that any such initial financing statement or description of collateral included therein was or has become defective, the Trustee shall be fully protected in (a) relying on such initial financing statement filing and descriptions therein in filing any financing or continuation statements or modifications thereto pursuant to this Section, and (b) filing any continuation statements in the same filing offices of the State as the initial financing statement filings were made. The Company shall be responsible for the reasonable fees and costs, including fees and costs of counsel or other experts, incurred by the Trustee in the preparation and filing of all continuation statements hereunder. Section 806. Inspection of Project Books. The City covenants and agrees that all books and documents in its possession relating to the Project Equipment and the rents, revenues and receipts derived from the Project Equipment shall at all times be open to inspection by such accountants or other agencies as the Trustee may from time to time designate. -23- Section 807. Enforcement of Rights Under the Lease. The City covenants and agrees that it will enforce all of its rights and all of the obligations of the Company (at the expense of the Company) under the Lease to the extent necessary to preserve the Project Equipment in good repair and reasonably safe operating condition, and to protect the rights of the Trustee and the Owners hereunder with respect to the pledge and assignment of the rents, revenues and receipts coming due under the Lease; provided that, the City and the Trustee, as its assignee, shall refrain from enforcing any such right or obligation (except for the rights of the City or the Trustee to receive payments owing to either of them for their own account under the Indenture, the Lease, the Performance Agreement or any other agreement related to the Bonds or for their rights of indemnification or to be protected from liabilities by insurance policies required by the Lease) if so directed in writing by the Owners of 100% of the Outstanding Bonds. The City agrees that the Trustee, as assignee of the rentals and other amounts to be received by the City and paid by the Company under the Lease, or in its name or in the name of the City, may enforce all rights of the City to receive such rentals and other amounts and all obligations of the Company to pay such rentals and other amounts under and pursuant to the Lease for and on behalf of the Owners, whether or not the City is in default hereunder. So long as not otherwise provided in this Indenture, the Company shall be permitted to possess, use and enjoy the Project Equipment and appurtenances so as to carry out its obligations under the Lease. ARTICLE IX DEFAULT AND REMEDIES Section 901. Events of Default; Notice; Opportunity to Cure. (a) If any of the following events occur, it is hereby defined as and declared to be and to constitute an “Event of Default”: (1) Default in the due and punctual payment of the principal on any Bond, whether at the stated maturity or accelerated maturity thereof, or at any date fixed for redemption thereof; (2) Default in the due and punctual payment of the interest on any Bond, whether at the stated maturity or accelerated maturity thereof, or at any date fixed for redemption thereof; or (3) Default as specified in Section 12.1 of the Lease shall have occurred. (b) No default specified in subsection (a) above shall constitute an Event of Default until actual notice of such default by registered or certified mail has been given by the City, the Company, the Trustee or by the Owners of 25% in aggregate principal amount of all Bonds Outstanding to the Company or the City (as the case may be), and the Company or the City (as the case may be) has had 30 days after receipt of such notice to correct said default or cause said default to be corrected and has not corrected said default or caused said default to be corrected within such period; provided, however, if any such default (other than a default in the payment of any money) is such that it cannot be corrected within such period, it shall not constitute an Event of Default if corrective action is instituted by the Company or the City (as the case may be) within such period and diligently pursued until the default is corrected. Section 902. Acceleration of Maturity in Event of Default. (a) If an Event of Default has occurred and is continuing after the notice and cure period described in Section 901 elapses, the Trustee may, and upon the written request of the City or the Owners of not less than 25% in aggregate principal amount of Bonds then Outstanding, shall, by notice in writing -24- delivered to the City and the Company, declare the principal of all Bonds then Outstanding and the interest accrued thereon immediately due and payable, and such principal and interest and all other amounts due hereunder shall thereupon become and be immediately due and payable. (b) If, at any time after such declaration, but before the Bonds have matured by their terms, all overdue installments of principal and interest upon the Bonds, together with the reasonable and proper expenses of the Trustee, and all other sums then payable by the City under this Indenture are either paid or provisions satisfactory to the Trustee are made for such payment, then and in every such case the Trustee shall, but only with the approval of a majority of the Owners of the Bonds then Outstanding, rescind such declaration and annul such default in its entirety. In such event, the Trustee shall rescind any declaration of acceleration of Basic Rent as provided in Section 12.2 of the Lease. (c) In case of any rescission, then and in every such case the City, the Trustee, the Company and the Owners shall be restored to their former position and rights hereunder respectively, but no such rescission shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Section 903. Surrender of Possession of Trust Estate; Rights and Duties of Trustee in Possession. If an Event of Default has occurred and is continuing after the notice and cure period described in Section 901 hereof elapses, the City, upon demand of the Trustee, shall forthwith surrender the possession of, and it shall be lawful for the Trustee, by such officer or agent as it may appoint, to take possession of all or any part of the Trust Estate, together with the books, papers and accounts of the City pertaining thereto, and including the rights and the position of the City under the Lease, and to hold, operate and manage the same, and from time to time make all needful repairs and improvements. The Trustee may lease the Project Equipment or any part thereof, in the name and for account of the City, and collect, receive and sequester the rents, revenues and receipts therefrom, and out of the same and any moneys received from any receiver of any part thereof pay, and set up proper reserves for the payment of all proper costs and expenses of so taking, holding and managing the same, including without limitation (a) reasonable compensation to the Trustee, its agents and counsel, (b) any reasonable charges of the Trustee hereunder, (c) any taxes and assessments and other charges prior to the lien of this Indenture, (d) all expenses of such repairs and improvements, and (e) any amounts payable under the Performance Agreement. The Trustee shall apply the remainder of the moneys so received in accordance with the provisions of Section 908 hereof. Whenever all that is due upon the Bonds has been paid and all defaults cured, the Trustee shall surrender possession of the Trust Estate to the City, its successors or assigns, the same right of entry, however, to exist upon any subsequent Event of Default. While in possession of such property, the Trustee shall render annually to the City and the Company a summarized statement of receipts and expenditures in connection therewith. Section 904. Appointment of Receivers in Event of Default. If an Event of Default has occurred and is continuing after the notice and cure period described in Section 901 hereof elapses, and upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the Trustee and of the Owners under this Indenture, the Trustee shall be entitled, as a matter of right, to the appointment of a receiver or receivers of the Trust Estate or any part thereof, pending such proceedings, with such powers as the court making such appointment shall confer. Section 905. Exercise of Remedies by the Trustee. (a) Upon the occurrence of an Event of Default, the Trustee may pursue any available remedy at law or in equity by suit, action, mandamus or other proceeding to enforce the payment of the principal of and interest on the Bonds then Outstanding and all other amounts due hereunder, and to enforce and -25- compel the performance of the duties and obligations of the City or the Company as herein set forth or as set forth in the Lease, respectively. (b) If an Event of Default has occurred and is continuing after the notice and cure period described in Section 901 elapses, and if requested in writing to do so by (1) the City (in the case of an Event of Default pursuant to Section 12.1(b), (c), (d), (e) or (f) of the Lease), or (2) the Owners of 25% in aggregate principal amount of Bonds then Outstanding and indemnified as provided in subsection (l) of Section 1001 hereof, the Trustee shall be obligated to exercise such one or more of the rights and powers conferred by this Article as the Trustee, being advised by counsel, shall deem most expedient and in the interests of the City or the Owners, as the case may be. (c) All rights of action under this Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceedings relating thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its name as Trustee without necessity of joining as plaintiffs or defendants any Owners, and any recovery of judgment shall, subject to the provisions of Section 908 hereof, be for the equal benefit of all the Owners of the Outstanding Bonds. Section 906. Limitation on Exercise of Remedies by Owners. No Owner shall have any right to institute any suit, action or proceeding in equity or at law for the enforcement of this Indenture or for the execution of any trust hereunder or for the appointment of a receiver or any other remedy hereunder, unless (a) a default has occurred of which the Trustee has been notified as provided in Section 1001(h) hereof or of which by said subsection the Trustee is deemed to have notice, (b) such default has become an Event of Default, (c) the Owners of 25% in aggregate principal amount of Bonds then Outstanding have made written request to the Trustee, have offered it reasonable opportunity either to proceed for such reasonable period not to exceed 60 days following such notice and to exercise the powers hereinbefore granted or to institute such action, suit or proceeding in its own name, and have offered to the Trustee indemnity as provided in Section 1001(l) hereof, and (d) the Trustee thereafter fails or refuses to exercise the powers herein granted or to institute such action, suit or proceeding in its own name; such notification, request and offer of indemnity are hereby declared in every case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trusts of this Indenture, and to any action or cause of action for the enforcement of this Indenture, or for the appointment of a receiver or for any other remedy hereunder it being understood and intended that no one or more Owners shall have any right in any manner whatsoever to affect, disturb or prejudice this Indenture by their action or to enforce any right hereunder except in the manner herein provided, and that all proceedings at law or equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of the Owners of all Bonds then Outstanding. Nothing in this Indenture contained shall, however, affect or impair the right of any Owner to payment of the principal of and interest on any Bond at and after the maturity thereof or the obligation of the City to pay the principal of and interest on each of the Bonds issued hereunder to the respective Owners thereof at the time, place, from the source and in the manner herein and in the Bonds expressed. Section 907. Right of Owners to Direct Proceedings. (a) The Owners of a majority in aggregate principal amount of Bonds then Outstanding shall have the right, at any time, by an instrument or instruments in writing executed and delivered to the Trustee, to direct the time, method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of this Indenture, or for the appointment of a receiver or any other proceedings hereunder; provided that such direction shall not be otherwise than in accordance with the provisions of law and of this Indenture, including Section 1001(l) hereof. -26- (b) Notwithstanding any provision in this Indenture to the contrary, including subsection (a) of this Section, the Owners shall not have the right to control or direct any remedies hereunder upon an Event of Default under Section 12.1(b), (c), (d) or (e) of the Lease. Section 908. Application of Moneys in Event of Default. (a) All moneys received by the Trustee pursuant to any right given or action taken under the provisions of this Article shall first be applied to the costs and expenses of the proceedings resulting in the collection of such moneys and of the fees, expenses, liabilities and advances incurred or made by the Trustee (including any attorneys’ fees and expenses) or amounts to be paid pursuant to Section 903 hereof, and second be applied to the obligations outstanding under the Lease and the Performance Agreement. Any remaining money shall be deposited in the Bond Fund and all moneys so deposited in the Bond Fund shall be applied as follows: (1) Unless the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied: FIRST -- To the payment to the Persons entitled thereto of all installments of interest, if any, then due and payable on the Bonds, in the order in which such installments of interest became due and payable, and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, without any discrimination or privilege; SECOND -- To the payment to the Persons entitled thereof of the unpaid principal of any of the Bonds which shall have become due and payable (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Indenture), in the order of their due dates, and, if the amount available shall not be sufficient to pay in full Bonds due on any particular date, together with such interest, then to the payment, ratably, according to the amount of principal due on such date, to the Persons entitled thereto without any discrimination or privilege. (2) If the principal of all the Bonds shall have become due or shall have been declared due and payable, all such moneys shall be applied to the payment of the principal and interest, if any, then due and unpaid on all of the Bonds, without preference or priority of principal over interest or of interest over principal or of any installment of interest over any other installment of interest or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Person entitled thereto, without any discrimination or privilege. (3) If the principal of all the Bonds shall have been declared due and payable, and if such declaration shall thereafter have been rescinded and annulled under the provisions of Section 910, then, subject to the provisions of subsection (a)(2) of this Section in the event that the principal of all the Bonds shall later become due or be declared due and payable, the moneys shall be applied in accordance with the provisions of subsection (a)(1) of this Section. (b) Whenever moneys are to be applied pursuant to the provisions of this Section, such moneys shall be applied at such times and from time to time as the Trustee shall determine, having due regard to the amount of such moneys available and which may become available for such application in the future. Whenever the Trustee shall apply such moneys, it shall fix the date (which shall be a Payment Date unless it shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such dates shall cease to accrue. -27- (c) Whenever all of the Bonds and interest thereon, if any, have been paid under the provisions of this Section, and all fees, expenses and charges of the City and the Trustee and any other amounts required to be paid under this Indenture and the Lease have been paid (including any amounts payable under the Performance Agreement), any balance remaining in the Bond Fund shall be paid to the Company as provided in Section 602 hereof. Section 909. Remedies Cumulative. No remedy by the terms of this Indenture conferred upon or reserved to the Trustee or to the Owners is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to the Trustee or to the Owners hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right, power or remedy accruing upon any Event of Default shall impair any such right, power or remedy or shall be construed to be a waiver of any such Event of Default or acquiescence therein; every such right, power or remedy may be exercised from time to time and as often as may be deemed expedient. If the Trustee has proceeded to enforce any right under this Indenture by the appointment of a receiver, by entry, or otherwise, and such proceedings have been discontinued or abandoned for any reason, or have been determined adversely, then and in every such case the City, the Company, the Trustee and the Owners shall be restored to their former positions and rights hereunder, and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken. Section 910. Waivers of Events of Default. The Trustee shall waive any Event of Default hereunder and its consequences and rescind any declaration of maturity of principal of and interest, if any, on the Bonds, and only upon the written request of the Owners of at least 50% in aggregate principal amount of all the Bonds then Outstanding, provided, however, that (a) there shall not be waived without the consent of the City an Event of Default hereunder arising from an Event of Default under Section 12.1(b), (c), (d), (e) or (f) of the Lease, and (b) there shall not be waived without the consent of the Owners of all the Bonds Outstanding (1) any Event of Default in the payment of the principal of any Outstanding Bonds when due (whether at the date of maturity or redemption specified therein), or (2) any Event of Default in the payment when due of the interest on any such Bonds, unless prior to such waiver or rescission, all arrears of interest, or all arrears of payments of principal when due, as the case may be, and all reasonable expenses of the Trustee and the City (including attorneys’ fees and expenses), in connection with such default, shall have been paid or provided for. In case of any such waiver or rescission, or in case any proceeding taken by the Trustee on account of any such default shall have been discontinued or abandoned or determined adversely, then and in every such case the City, the Company, the Trustee and the Owners shall be restored to their former positions, rights and obligations hereunder, respectively, but no such waiver or rescission shall extend to any subsequent or other default, or impair any right consequent thereon and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken. ARTICLE X THE TRUSTEE Section 1001. Acceptance of the Trusts. The Trustee hereby accepts the trusts imposed upon it by this Indenture, but only upon and subject to the following express terms and conditions, and no implied covenants or obligations shall be read into this Indenture against the Trustee: (a) The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver of all Events of Default that may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. If any Event of Default has occurred and -28- is continuing, subject to Section 1001(l) below, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and shall use the same degree of care and skill in their exercise, as a prudent Person would exercise or use under the circumstances in the conduct of its own affairs. (b) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or through agents, affiliates, attorneys or receivers and shall not be responsible for any misconduct or negligence on the part of any agent, attorney or receiver appointed or chosen by it with due care. The Trustee may conclusively rely upon and act or refrain from acting upon any opinion or advice of counsel, who may be counsel to the City or to the Company, concerning all matters of trust hereof and the duties hereunder, and may in all cases pay such reasonable compensation to all such agents, attorneys and receivers as may reasonably be employed in connection with the trusts hereof and shall be reimbursed for such payments by the Company. The Trustee shall not be responsible for any loss or damage resulting from any action or inaction by it taken or omitted to be taken in good faith in reliance upon such opinion or advice of counsel addressed to the City and the Trustee. (c) The Trustee shall not be responsible for any recital herein or in the Bonds (except with respect to the Certificate of Authentication of the Trustee endorsed on the Bonds), or except as provided in Section 805 hereof and in the Lease and particularly Section 10.8 thereof, for the recording or rerecording, filing or refiling of this Indenture or any security agreement in connection therewith (excluding the continuation of Uniform Commercial Code financing statements required to be filed by the Trustee pursuant to Section 805 hereof), or for insuring the Project Equipment or collecting any insurance moneys, or for the validity of the execution by the City of this Indenture or of any Supplemental Indentures or instruments of further assurance, or for the sufficiency of the security of the Bonds. The Trustee shall not be responsible or liable for any loss suffered in connection with any investment of funds made by it in accordance with Article VII hereof. (d) The Trustee shall not be accountable for the use of any Bonds authenticated and delivered hereunder. The Trustee, in its individual or any other capacity, may become the Owner or pledgee of Bonds with the same rights that it would have if it were not Trustee. The Trustee shall not be accountable for the use or application by the City or the Company of the proceeds of any of the Bonds or of any money paid to or upon the order of the City or Company under any provision of this Indenture. (e) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, affidavit, letter, telegram or other paper or document provided for under this Indenture believed by it to be genuine and correct and to have been signed, presented or sent by the proper Person or Persons. Any action taken by the Trustee pursuant to this Indenture upon the request or authority or consent of any Person who, at the time of making such request or giving such authority or consent is an Owner, shall be conclusive and binding upon all future Owners of the same Bond and upon Bonds issued in exchange therefor or upon transfer or in place thereof. (f) As to the existence or nonexistence of any fact or as to the sufficiency or validity of any instrument, paper or proceeding, or whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee shall be entitled to rely upon a certificate signed by the Authorized City Representative or an Authorized Company Representative as sufficient evidence of the facts therein contained, and prior to the occurrence of a default of which the Trustee has been notified as provided in subsection (h) of this Section or of which by said subsection it is deemed to have notice, the Trustee shall also be at liberty to accept a similar certificate to the effect that any -29- particular dealing, transaction or action is necessary or expedient, but may at its discretion secure such further evidence deemed necessary or advisable, but shall in no case be bound to secure the same. (g) The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty, and the Trustee shall not be answerable for other than its negligence or willful misconduct. (h) The Trustee shall not be required to take notice or be deemed to have notice of any default hereunder except failure by the City to cause to be made any of the payments to the Trustee required to be made in Article VI hereof, unless the Trustee is specifically notified in writing of such default by the City or by the Owners of at least 25% in aggregate principal amount of all Bonds then Outstanding. (i) At any and all reasonable times and subject to the Company’s reasonable and standard security procedures, the Trustee and its duly authorized agents, attorneys, experts, engineers, accountants and representatives shall have the right, but shall not be required, to inspect any and all of the Project Equipment, and all books, papers and records of the Company pertaining to the Project Equipment and the Bonds, and to take such memoranda from and in regard thereto as may be desired. The Trustee shall treat all proprietary information of the Company as confidential. (j) The Trustee shall not be required to give any bond or surety in respect to the execution of its trusts and powers hereunder or otherwise in respect of the Project Equipment. (k) The Trustee shall have the right, but shall not be required, to demand, in respect of the authentication of any Bonds, the withdrawal of any cash, the release of any property, or any action whatsoever within the purview of this Indenture, any showings, certificates, opinions, appraisals or other information, or corporate action or evidence thereof, in addition to that by the terms hereof required, as a condition of such action by the Trustee deemed desirable for the purpose of establishing the right of the City to the authentication of any Bonds, the withdrawal of any cash, or the taking of any other action by the Trustee. (l) Notwithstanding anything in the Indenture or the Lease to the contrary, before taking any action under this Indenture other than the payments from moneys on deposit in the Project Fund or the Bond Fund, as provided herein, the Trustee may require that satisfactory indemnity be furnished to it for the reimbursement of all costs and expenses to which it may be put and to protect it against all liability which it may incur in or by reason of such action, except liability which is adjudicated to have resulted from its negligence or willful misconduct by reason of any action so taken. (m) Notwithstanding any other provision of this Indenture to the contrary, any provision relating to the conduct of, intended to provide authority to act, right to payment of fees and expenses, protection, immunity and indemnification to the Trustee, shall be interpreted to include any action of the Trustee, whether it is deemed to be in its capacity as Trustee, bond registrar or Paying Agent. Section 1002. Fees, Charges and Expenses of the Trustee. The Trustee shall be entitled to payment of and/or reimbursement for reasonable fees for its ordinary services rendered hereunder and all advances, agent and counsel fees and other ordinary expenses reasonably made or incurred by the Trustee in connection with such ordinary services. If it becomes necessary for the Trustee to perform extraordinary -30- services, it shall be entitled to reasonable extra compensation therefor and to reimbursement for reasonable extraordinary expenses in connection therewith; provided that if such extraordinary services or extraordinary expenses are occasioned by the neglect or willful misconduct of the Trustee, it shall not be entitled to compensation or reimbursement therefor. The Trustee shall be entitled to payment and reimbursement for the reasonable fees and charges of the Trustee as Paying Agent for the Bonds. Pursuant to the provisions of Section 5.2 of the Lease, the Company has agreed to pay to the Trustee all reasonable fees, charges and expenses of the Trustee under this Indenture. The Trustee agrees that the City shall have no liability for any reasonable fees, charges and expenses of the Trustee, and the Trustee agrees to look only to the Company for the payment of all reasonable fees, charges and expenses of the Trustee and any Paying Agent as provided in the Lease. Upon the occurrence of an Event of Default and during its continuance, the Trustee shall have a lien with right of payment prior to payment on account of principal of or interest on any Bond, upon all moneys in its possession under any provisions hereof for the foregoing reasonable advances, fees, costs and expenses incurred. Section 1003. Notice to Owners if Default Occurs. If a default occurs of which the Trustee is by Section 1001(h) hereof required to take notice or if notice of default is given as in said subsection (h) provided, then the Trustee shall give written notice thereof to the last known Owners of all Bonds then Outstanding as shown by the bond registration books required by Section 206 hereof to be kept at the designated corporate trust office of the Trustee. Section 1004. Intervention by the Trustee. In any judicial proceeding to which the City is a party and which, in the opinion of the Trustee and its counsel, has a substantial bearing on the interests of Owners, the Trustee may intervene on behalf of Owners and, subject to the provisions of Section 1001(l) hereof, shall do so if requested in writing by the Owners of at least 25% of the aggregate principal amount of Bonds then Outstanding. Section 1005. Successor Trustee Upon Merger, Consolidation or Sale. With the prior written consent of the Company, any corporation or association into which the Trustee may be merged or converted or with or into which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any merger, conversion, sale, consolidation or transfer to which it is a party, shall be and become successor Trustee hereunder and shall be vested with all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges hereunder as was its predecessor, without the execution or filing of any instrument or any further act on the part of any of the parties hereto. Section 1006. Resignation of Trustee. The Trustee and any successor Trustee may at any time resign from the trusts hereby created by giving 30 days’ written notice to the City, the Company and the Owners, and such resignation shall take effect at the end of such 30 days, or upon the earlier appointment of a successor Trustee by the Owners or by the City; provided, however, that in no event shall the resignation of the Trustee or any successor trustee become effective until such time as a successor trustee has been appointed and has accepted the appointment. If no successor has been appointed and accepted the appointment within 30 days after the giving of such notice of resignation, the Trustee may, at the Company’s expense, petition any court of competent jurisdiction for the appointment of a successor Trustee. Section 1007. Removal of Trustee. The Trustee may be removed at any time, with or without cause, by an instrument or concurrent instruments in writing (a) delivered to the Trustee, the City and the Company and signed by the Owners of a majority in aggregate principal amount of Bonds then Outstanding, or (b) so long as no Event of Default under this Indenture or the Lease shall have occurred and be continuing, delivered to the Trustee, the City and the Owners and signed by the Company. -31- Section 1008. Appointment of Successor Trustee. If the Trustee hereunder resigns or is removed, or otherwise becomes incapable of acting hereunder, or if it is taken under the control of any public officer or officers or of a receiver appointed by a court, a successor Trustee (a) reasonably acceptable to the City may be appointed by the Company (so long as no Event of Default has occurred and is continuing), or (b) reasonably acceptable to the City and the Company may be appointed by the Owners of a majority in aggregate principal amount of Bonds then Outstanding, by an instrument or concurrent instruments in writing; provided, nevertheless, that in case of such vacancy, the City, by an instrument executed and signed by its Mayor and attested by its City Clerk under its seal, may appoint a temporary Trustee to fill such vacancy until a successor Trustee shall be appointed in the manner above provided. Any such temporary Trustee so appointed by the City shall immediately and without further acts be superseded by the successor Trustee so appointed as provided above. Every such Trustee appointed pursuant to the provisions of this Section shall be a trust company or bank in good standing and qualified to accept such trust having, or whose obligations are guaranteed by a financial institution having, a reported capital, surplus and undivided profits of not less than $50,000,000. If no successor Trustee has been so appointed and accepted appointment in the manner herein provided, the Trustee, at the Company’s expense, or any Owner may petition any court of competent jurisdiction for the appointment of a successor Trustee, until a successor shall have been appointed as above provided. Section 1009. Vesting of Trusts in Successor Trustee. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the City and the Company an instrument in writing accepting such appointment hereunder, and thereupon such successor shall, without any further act, deed or conveyance, become fully vested with all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges of its predecessor and the duties and obligations of such predecessor hereunder shall thereafter cease and terminate; but such predecessor shall, nevertheless, on the written request of the City, execute and deliver an instrument transferring to such successor Trustee all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges of such predecessor hereunder; every predecessor Trustee shall deliver all securities and moneys held by it as Trustee hereunder to its successor. Should any instrument in writing from the City be required by any predecessor or successor Trustee for more fully and certainly vesting in such successor the trusts, powers, rights, obligations, duties, remedies, immunities and privileges hereby vested in the predecessor, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the City. Section 1010. Right of Trustee to Pay Taxes and Other Charges. If any tax, assessment or governmental or other charge upon, or insurance premium with respect to, any part of the Project Equipment is not paid as required herein or in the Lease, the Trustee may pay such tax, assessment or governmental charge or insurance premium, without prejudice, however, to any rights of the Trustee or the Owners hereunder arising in consequence of such failure; any amount at any time so paid under this Section, with interest thereon from the date of payment at the rate of 10 % per annum, shall become an additional obligation secured by this Indenture, and the same shall be given a preference in payment over any payment of principal of or interest on the Bonds, and shall be paid out of the proceeds of rents, revenues and receipts collected from the Project Equipment, if not otherwise caused to be paid; but the Trustee shall be under no obligation to make any such payment unless it shall have been requested to do so by the Owners of at least 25% of the aggregate principal amount of Bonds then Outstanding and shall have been provided adequate funds for the purpose of such payment. Section 1011. Trust Estate May be Vested in Co-Trustee. (a) It is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction (including particularly the State) denying or restricting the right of banking corporations or associations to transact business as trustee in such jurisdiction. It is recognized that in case of litigation -32- under this Indenture or the Lease, and in particular in case of the enforcement of either this Indenture or the Lease upon the occurrence of an Event of Default or if the Trustee deems that by reason of any present or future law of any jurisdiction it may not exercise any of the powers, rights or remedies herein granted to the Trustee, or take any other action which may be desirable or necessary in connection therewith, it may be necessary or desirable that the Trustee appoint an additional individual or institution as a co-trustee or separate trustee, and the Trustee is hereby authorized to appoint such co-trustee or separate trustee. (b) If the Trustee appoints an additional individual or institution as a co-trustee or separate trustee (which appointment shall be subject to the approval of the Company), each and every remedy, power, right, claim, demand, cause of action, immunity, title, interest and lien expressed or intended by this Indenture to be exercised by the Trustee with respect thereto shall be exercisable by such co-trustee or separate trustee but only to the extent necessary to enable such co-trustee or separate trustee to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such co-trustee or separate trustee shall run to and be enforceable by either of them. (c) Should any deed, conveyance or instrument in writing from the City be required by the co- trustee or separate trustee so appointed by the Trustee for more fully and certainly vesting in and confirming to such co-trustee such properties, rights, powers, trusts, duties and obligations, any and all such deeds, conveyances and instruments in writing shall, on request, be executed, acknowledged and delivered by the City. (d) If any co-trustee or separate trustee shall die, become incapable of acting, resign or be removed, all the properties, rights, powers, trusts, duties and obligations of such co-trustee or separate trustee, so far as permitted by law, shall vest in and be exercised by the Trustee until the appointment of a successor to such co-trustee or separate trustee. Section 1012. Accounting. The Trustee shall render an annual accounting for the period ending December 31 of each year to the City, the Company and to any Owner requesting the same in writing and, upon the written request of the City, the Company or the Owner, a monthly accounting to any such party , showing in reasonable detail all financial transactions relating to the Trust Estate during the accounting period and the balance in any funds or accounts created by this Indenture as of the beginning and close of such accounting period. Section 1013. Performance of Duties Under the Lease. The Trustee hereby accepts and agrees to perform all duties and obligations assigned to it under the Lease. ARTICLE XI SUPPLEMENTAL INDENTURES Section 1101. Supplemental Indentures Not Requiring Consent of Owners. The City and the Trustee may from time to time, without the consent of or notice to any of the Owners, enter into such Supplemental Indenture or Supplemental Indentures as shall not be inconsistent with the terms and provisions hereof, for any one or more of the following purposes: (a) To cure any ambiguity or formal defect or omission in this Indenture, or to make any other change which, in the judgment of the Trustee, is not to the material prejudice of the Trustee or the Owners (provided the Trustee may rely upon an opinion of counsel in exercising such judgement); -33- (b) To grant to or confer upon the Trustee for the benefit of the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners or the Trustee or either of them; (c) To more precisely identify any portion of the Project Equipment or to add additional property thereto; (d) To conform the Indenture to amendments to the Lease made by the City and the Company; (e) To subject to this Indenture additional revenues, properties or collateral; or (f) To issue Additional Bonds as provided in Section 209 hereof. Section 1102. Supplemental Indentures Requiring Consent of Owners. (a) Exclusive of Supplemental Indentures covered by Section 1101 hereof and subject to the terms and provisions contained in this Indenture, and not otherwise, the Owners of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have the right, from time to time, anything contained in this Indenture to the contrary notwithstanding, to consent to and approve the execution by the City and the Trustee of such other Supplemental Indenture or Supplemental Indentures as shall be deemed necessary and desirable by the City for the purpose of modifying, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Indenture or in any Supplemental Indenture; provided, however, that without the consent of the Owners of 100% of the principal amount of the Bonds then Outstanding, nothing in this Section contained shall permit or be construed as permitting (1) an extension of the maturity or a shortening of the redemption date of the principal of or the interest, if any, on any Bond issued hereunder, or (2) a reduction in the principal amount of any Bond or the rate of interest thereon, if any, or (3) a privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (4) a reduction in the aggregate principal amount of Bonds the Owners of which are required for consent to any such Supplemental Indenture. (b) If at the time the City requests the Trustee to enter into any such Supplemental Indenture for any of the purposes of this Section, the Trustee shall cause notice of the proposed execution of such Supplemental Indenture to be mailed to each Owner as shown on the bond registration books required by Section 206 hereof. Such notice shall briefly set forth the nature of the proposed Supplemental Indenture and shall state that copies thereof are on file at the corporate trust office of the Trustee for inspection by all Owners. If within 60 days or such longer period as may be prescribed by the City following the mailing of such notice, the Owners of not less than a majority in aggregate principal amount of the Bonds Outstanding at the time of the execution of any such Supplemental Indenture shall have consented to and approved the execution thereof as herein provided, no Owner shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee or the City from executing the same or from taking any action pursuant to the provisions thereof. Section 1103. Company’s Consent to Supplemental Indentures. Anything herein to the contrary notwithstanding, a Supplemental Indenture that affects any rights of the Company under this Article shall not become effective unless and until the Company shall have consented in writing to the execution and delivery of such Supplemental Indenture. The Trustee shall cause notice of the proposed execution and delivery of any Supplemental Indenture (regardless of whether it affects the Company’s rights) together with a copy of the proposed Supplemental Indenture to be mailed to the Company at least 15 days prior to the proposed date of execution and delivery of the Supplemental Indenture. -34- Section 1104. Opinion of Counsel. In executing, or accepting the additional trusts created by, any Supplemental Indenture permitted by this Article or the modification thereby of the trusts created by this Indenture, the Trustee and the City shall receive, and, shall be fully protected in relying upon, an opinion of counsel addressed and delivered to the Trustee and the City stating that the execution of such Supplemental Indenture is permitted by and in compliance with this Indenture and will, upon the execution and delivery thereof, be a valid and binding obligation of the City. The Trustee may, but shall not be obligated to, enter into any such Supplemental Indenture which affects the Trustee’s rights, duties or immunities under this Indenture or otherwise. ARTICLE XII SUPPLEMENTAL LEASES Section 1201. Supplemental Leases Not Requiring Consent of Owners. The City and the Trustee shall, without the consent of or notice to the Owners, consent to the execution of any Supplemental Lease or Supplemental Leases by the City and the Company as may be required (a) by the provisions of the Lease and this Indenture, (b) for the purpose of curing any ambiguity or formal defect or omission in the Lease, (c) so as to more precisely identify the Project Equipment or add additional property thereto, (d) in connection with the issuance of Additional Bonds under Section 209 hereof, or (e) in connection with any other change therein which, in the judgment of the Trustee, does not materially and adversely affect the Trustee or security for the Owners (provided the Trustee may rely upon an opinion of counsel in exercising such judgement). Section 1202. Supplemental Leases Requiring Consent of Owners. Except for Supplemental Leases as provided for in Section 1201 hereof, neither the City nor the Trustee shall consent to the execution of any Supplemental Lease or Supplemental Leases by the City or the Company without the mailing of notice and the obtaining of the written approval or consent of the Owners of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding given and obtained as provided in Section 1102 hereof. If at any time the City and the Company shall request the consent of the Trustee to any such proposed Supplemental Lease, the Trustee shall cause notice of such proposed Supplemental Lease to be mailed in the same manner as provided in Section 1102 hereof with respect to Supplemental Indentures. Such notice shall briefly set forth the nature of such proposed Supplemental Lease and shall state that copies of the same are on file in the corporate trust office of the Trustee for inspection by all Owners. If within 60 days or such longer period as may be prescribed by the City following the mailing of such notice, the Owners of not less than 50% in aggregate principal amount of the Bonds Outstanding at the time of the execution of any such Supplemental Lease shall have consented to and approved the execution thereof as herein provided, no Owner shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee or the City from executing the same or from taking any action pursuant to the provisions thereof. Section 1203. Opinion of Counsel. In executing or consenting to any Supplemental Lease permitted by this Article, the City and the Trustee shall receive, and shall be fully protected in relying upon, an opinion of counsel addressed to the Trustee and the City stating that the executing of such Supplemental Lease is authorized or permitted by the Lease and this Indenture and the applicable law and will upon the execution and delivery thereof be valid and binding obligations of the parties thereof. -35- ARTICLE XIII SATISFACTION AND DISCHARGE OF INDENTURE Section 1301. Satisfaction and Discharge of this Indenture. (a) When the principal of and interest on all the Bonds have been paid in accordance with their terms or provision has been made for such payment, as provided in Section 1302 hereof, and provision also made for paying all other sums payable hereunder and under the Lease and the Performance Agreement, including the reasonable fees and expenses of the Trustee, the City and Paying Agent to the date of retirement of the Bonds, then the right, title and interest of the Trustee in respect hereof shall thereupon cease, determine and be void. Thereupon, the Trustee shall cancel, discharge and release this Indenture and shall upon the written request of the City or the Company execute, acknowledge and deliver to the City such instruments of satisfaction and discharge or release as shall be required to evidence such release and the satisfaction and discharge of this Indenture, and shall assign and deliver to the City (subject to the City’s obligations under Section 11.2 of the Lease) any property at the time subject to this Indenture which may then be in its possession, except amounts in the Bond Fund required to be paid to the Company under Section 602 hereof and except funds or securities in which such funds are invested held by the Trustee for the payment of the principal of and interest on the Bonds. (b) The City is hereby authorized to accept a certificate by the Trustee that the whole amount of the principal and interest, if any, so due and payable upon all of the Bonds then Outstanding has been paid or such payment provided for in accordance with Section 1302 hereof as evidence of satisfaction of this Indenture, and upon receipt thereof shall cancel and erase the inscription of this Indenture from its records. Section 1302. Bonds Deemed to be Paid. (a) Bonds shall be deemed to be paid within the meaning of this Article when payment of the principal of and interest thereon to the due date thereof (whether such due date be by reason of maturity or upon redemption as provided in this Indenture, or otherwise), either (1) have been made or caused to be made in accordance with the terms thereof, or (2) have been provided for by depositing with the Trustee or other commercial bank or trust company having full trust powers and authorized to accept trusts in the State in trust and irrevocably set aside exclusively for such payment (i) moneys sufficient to make such payment or (ii) Government Securities maturing as to principal and interest in such amount and at such times as will insure the availability of sufficient moneys to make such payment, or (3) have been provided for by surrendering the Bonds to the Trustee for cancellation. At such time as Bonds are deemed to be paid hereunder, as aforesaid, they shall no longer be secured by or entitled to the benefits of this Indenture, except for the purposes of such payment from such moneys or Government Securities. (b) Notwithstanding the foregoing, in the case of Bonds which by their terms may be redeemed before the stated maturities thereof, no deposit under clause (2) of the immediately preceding paragraph shall be deemed a payment of such Bonds as aforesaid until, as to all such Bonds which are to be redeemed before their respective stated maturities, proper notice of such redemption shall have been given in accordance with Article III of this Indenture or irrevocable instructions shall have been given to the Trustee to give such notice. (c) Notwithstanding any provision of any other section of this Indenture which may be contrary to the provisions of this Section, all moneys or Government Securities set aside and held in trust pursuant to the provisions of this Section for the payment of Bonds shall be applied to and used solely for -36- the payment of the particular Bonds, with respect to which such moneys and Government Securities have been so set aside in trust. ARTICLE XIV MISCELLANEOUS PROVISIONS Section 1401. Consents and Other Instruments by Owners. Any consent, request, direction, approval, objection or other instrument required by this Indenture to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in Person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Bonds (other than the assignment of ownership of a Bond) if made in the following manner, shall be sufficient for any of the purposes of this Indenture, and shall be conclusive in favor of the Trustee with regard to any action taken, suffered or omitted under any such instrument, namely: (a) The fact and date of the execution by any Person of any such instrument may be proved by the certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the Person signing such instrument acknowledged before him the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Bonds and the amount or amounts, numbers and other identification of such Bonds, and the date of holding the same shall be proved by the registration books of the City maintained by the Trustee pursuant to Section 206 hereof. Section 1402. Limitation of Rights Under this Indenture. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Indenture or the Bonds is intended or shall be construed to give any Person other than the parties hereto, and the Owners, if any, any right, remedy or claim under or in respect to this Indenture, this Indenture and all of the covenants, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto and the Owners, as herein provided. Section 1403. Notices. It shall be sufficient service of any notice, request, complaint, demand or other paper required by this Indenture to be given or filed with the City, the Trustee, the Company or Owners if the same is duly mailed, postage prepaid, sent by overnight delivery or other delivery service or sent by facsimile: (a) To the City: City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Attention: City Administrator Fax: (573) 634-6457 -37- with a copy to: City Counselor City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Fax: (573) 634-6457 (b) To the Trustee: BOKF, N.A. 2405 Grand Boulevard, Suite 840 Kansas City, Missouri 64108 Attention: Corporate Trust Department Fax: (816) 932-7315 (c) To the Company: Scholastic Inc. 557 Broadway New York, New York 10012 Attention: Jonathan Feldberg (d) To the Owners if the same is duly mailed by first class, registered or certified mail addressed to each of the Owners of Bonds at the time Outstanding as shown by the bond registration books required by Section 206 hereof to be kept at the corporate trust office of the Trustee. All notices given by certified or registered mail as aforesaid shall be deemed fully given as of the date they are so mailed. All notices given by overnight delivery or other delivery service shall be deemed fully given as of the date when received. All notices given by facsimile shall be deemed fully given as of the date when received. A duplicate copy of each notice, certificate or other communication given hereunder by either the City or the Trustee to the other shall also be given to the Company. The City, the Company and the Trustee may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. Section 1404. Severability. If any provision of this Indenture shall be held or deemed to be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts with any other provision or provisions hereof or any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to any extent whatever. Section 1405. Execution in Counterparts. This Indenture may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 1406. Governing Law. This Indenture shall be governed exclusively by and construed in accordance with the applicable laws of the State. -38- Section 1407. Electronic Storage. The parties agree that the transaction described herein may be conducted and related documents may be sent, received or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 1408. Anti-Discrimination Against Israel Act. Pursuant to Section 34.600 of the Revised Statutes of Missouri, the Trustee certifies it is not currently engaged in and shall not, for the duration of this Indenture, engage in a boycott of goods or services from (a) the State of Israel, (b) companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel or (c) persons or entities doing business in the State of Israel. [Remainder of page intentionally left blank.] Trust Indenture City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-1 IN WITNESS WHEREOF, the City has caused this Indenture to be signed in its name and behalf by its Mayor and the seal of the City to be hereunto affixed and attested by the City Clerk, and to evidence its acceptance of the trusts hereby created, the Trustee has caused this Indenture to be signed in its name and behalf by its duly authorized officer, all as of the date first above written. CITY OF JEFFERSON, MISSOURI By: ___________________________________ Name: Carrie Tergin Title: Mayor [SEAL] ATTEST: By: ___________________________________ Name: Emily Donaldson Title: City Clerk Trust Indenture City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-2 BOKF, N.A., as Trustee By: Name: Title: [SEAL] ATTEST: By: Name: Title: A-1 EXHIBIT A DESCRIPTION OF PROJECT SITE The Project Site consists of the real property site upon which the Company’s existing facility is located (with a street address of 6336 Algoa Road, Jefferson City, Missouri 65101) where the Project Equipment will be situated and installed. B-1 EXHIBIT B PROJECT EQUIPMENT All items of machinery, equipment and other personal property acquired pursuant to Article IV of the Lease to be installed and used on the Project Site by the Company and paid for, or reimbursed, with Bond proceeds and all additions, replacements, alterations, substitutions thereto now or hereafter effected and specifically designated by the Company. A replacement item may be included by the Company as a part of the Project Equipment under the conditions set forth in the Lease. C-1 EXHIBIT C FORM OF BONDS THIS BOND OR ANY PORTION HEREOF MAY BE TRANSFERRED, ASSIGNED OR NEGOTIATED ONLY AS PROVIDED IN THE HEREIN DESCRIBED INDENTURE. No. 1 Not to Exceed $44,700,000 UNITED STATES OF AMERICA STATE OF MISSOURI CITY OF JEFFERSON, MISSOURI TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BOND (SCHOLASTIC INC. PROJECT) SERIES 2023 Interest Rate Maturity Date Dated Date 5.00% December 1, 2035 February 13, 2023 OWNER: SCHOLASTIC INC. MAXIMUM PRINCIPAL AMOUNT: FORTY FOUR MILLION SEVEN HUNDRED THOUSAND DOLLARS THE CITY OF JEFFERSON, MISSOURI, a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri (the “City”), for value received, promises to pay, but solely from the source hereinafter referred to, to the Owner named above, or registered assigns thereof, on the Maturity Date shown above, the principal amount shown above, or such lesser amount as may be outstanding hereunder as reflected on Schedule I hereto held by the Trustee as provided in the hereinafter referred to Indenture. The City agrees to pay such principal amount to the Owner in any coin or currency of the United States of America which on the date of payment thereof is legal tender for the payment of public and private debts, and in like manner to pay to the Owner hereof, either by check or draft mailed to the Owner at a stated address as it appears on the bond registration books of the City kept by the Trustee under the within mentioned Indenture or, in certain situations authorized in the Indenture, by internal bank transfer or by wire transfer to an account in a commercial bank or savings institution located in the continental United States. Interest on the Cumulative Outstanding Principal Amount (as hereinafter defined) at the per annum Interest Rate stated above, is payable in arrears on each December 1, commencing on December 1, 2023, and continuing thereafter until the earlier of the date on which said Cumulative Outstanding Principal Amount is paid in full or the Maturity Date. Interest on each advancement of the principal amount of this Bond shall accrue from the date that such advancement is made, computed on the basis of a year of 360 days consisting of 12 months of 30 days each. C-2 As used herein, the term “Cumulative Outstanding Principal Amount” means all Bonds outstanding under the terms of the hereinafter-defined Indenture, as reflected on Schedule I hereto maintained by the Trustee. THIS BOND is one of a duly authorized series of Bonds of the City designated “City of Jefferson, Missouri, Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023,” in the maximum aggregate principal amount of $44,700,000 (the “Bonds”), to be issued for the purpose of acquiring and installing new machinery, equipment and other personal property (the “Project Equipment”) at the existing facility of Scholastic Inc., a corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Missouri (the “Company”), located on certain real property in the City (the “Project Site”). The City will lease the Project Equipment to the Company under the terms of a Lease Agreement dated as of February 1, 2023 (said Lease Agreement, as amended and supplemented from time to time in accordance with the provisions thereof, being herein called the “Lease”), between the City, as lessor, and the Company, as lessee, all pursuant to the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and statutes of the State of Missouri, including particularly the Act, the charter of the City and pursuant to proceedings duly had by the Council of the City. THE BONDS are issued under and are equally and ratably secured and entitled to the protection given by a Trust Indenture dated as of February 1, 2023 (said Trust Indenture, as amended and supplemented from time to time in accordance with the provisions thereof, being herein called the “Indenture”), between the City and BOKF, N.A., Kansas City, Missouri, as trustee (the “Trustee”). Capitalized terms not defined herein shall have the meanings set forth in the Indenture. Subject to the terms and conditions set forth therein, the Indenture permits the City to issue Additional Bonds (as defined in the Indenture) secured by the Indenture on a parity with the Bonds. Reference is hereby made to the Indenture for a description of the provisions, among others, with respect to the nature and extent of the security for the Bonds, the rights, duties and obligations of the City, the Trustee and the Owners, and the terms upon which the Bonds are issued and secured. THE BONDS are subject to redemption and payment at any time before the stated maturity thereof, at the option of the Company, on behalf of the City, and upon written instructions from the Company, (1) in whole, if the Company exercises its option to purchase the Project Equipment and deposits an amount sufficient to effect such purchase pursuant to the Lease on the applicable redemption date, or (2) in part, if the Company prepays additional Basic Rent pursuant to the Lease. Any redemption of Bonds pursuant to this paragraph shall be at a redemption price equal to the par value thereof being redeemed, plus accrued interest thereon, without premium or penalty, to the redemption date. THE BONDS are subject to mandatory redemption, in whole or in part, to the extent of amounts deposited in the Bond Fund pursuant to Sections 9.1(a) or 9.2(c) of the Lease, in the event of substantial damage to or destruction or condemnation of substantially all of the Project Equipment. Bonds to be redeemed pursuant to this paragraph shall be called for redemption by the Trustee on the earliest practicable date for which timely notice of redemption may be given as provided hereunder. Any redemption of Bonds pursuant to this paragraph shall be at a redemption price equal to the par value thereof being redeemed, plus accrued interest thereon, without premium or penalty, to the redemption date. Before giving notice of redemption to the Owners pursuant to this paragraph, money in an amount equal to the redemption price shall have been deposited in the Bond Fund. C-3 If the Bonds are to be called for optional redemption, the Company shall deliver written notice to the City and the Trustee that it has elected to redeem all or a portion of the Bonds at least 40 days (10 days if there is one Owner) prior to the scheduled redemption date. The Trustee shall then deliver written notice to the Owner of this Bond at least 30 days (five days if there is one Owner) before the scheduled redemption date by facsimile and by first-class mail stating the date upon which the Bonds will be redeemed and paid. THE BONDS, including interest thereon, are special obligations of the City and are payable solely out of the rents, revenues and receipts derived by the City from the Project Equipment and the Lease and not from any other fund or source of the City, and is secured by a pledge and assignment of the Project Equipment and of such rents, revenues and receipts, including all rentals and other amounts to be received by the City under and pursuant to the Lease, all as provided in the Indenture. The Bonds do not constitute a general obligation of the City or the State of Missouri, and neither the City nor said State shall be liable thereon, and the Bonds shall not constitute an indebtedness within the meaning of any constitutional, charter or statutory debt limitation or restriction, and are not payable in any manner by taxation. Pursuant to the provisions of the Lease, rental payments sufficient for the prompt payment when due of the principal of and interest on the Bonds are to be paid by the Company directly to the Trustee for the account of the City and deposited in a special fund created by the City and designated the “City of Jefferson, Missouri, Bond Fund – Scholastic Inc.” THE OWNER of this Bond shall have no right to enforce the provisions of the Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any Event of Default under the Indenture, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Indenture, the principal of all the Bonds issued under the Indenture and then Outstanding may become or may be declared due and payable before the stated maturity thereof, together with interest accrued thereon. Modifications or alterations of this Bond or the Indenture may be made only to the extent and in the circumstances permitted by the Indenture. THIS BOND is transferable, as provided in the Indenture, only upon the books of the City kept for that purpose at the above-mentioned office of the Trustee by the Owner hereof in Person or by such Person’s duly authorized attorney, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Trustee duly executed by the Owner or such Person’s duly authorized attorney, and thereupon a new fully registered Bond or Bonds, in the same aggregate principal amounts, shall be issued to the transferee in exchange therefor as provided in the Indenture, and upon payment of the charges therein prescribed. The City, the Trustee and any Paying Agent may deem and treat the Person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes. THE BONDS are issuable in the form of one fully-registered Bond in the maximum principal amount of $44,700,000. THIS BOND shall not be valid or become obligatory for any purposes or be entitled to any security or benefit under the Indenture until the Certificate of Authentication hereon shall have been executed by the Trustee. IT IS HEREBY CERTIFIED AND DECLARED that all acts, conditions and things required to exist, happen and be performed precedent to and in the execution and delivery of the Indenture and the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by the Constitution and laws of the State of Missouri. C-4 IN WITNESS WHEREOF, the City of Jefferson, Missouri, has caused this Bond to be executed in its name by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of its City Clerk and its corporate seal to be affixed hereto or imprinted hereon. CITY OF JEFFERSON, MISSOURI By: Mayor ATTEST: (Seal) City Clerk C-5 CERTIFICATE OF AUTHENTICATION This Bond is the Taxable Industrial Development Revenue Bond (Scholastic Inc. Project), Series 2023, described in the Indenture. The effective date of registration of this Bond is set forth below. BOKF, N.A., as Trustee ____________________ By: Date Authorized Signatory C-6 SCHEDULE I TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT CITY OF JEFFERSON, MISSOURI TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BOND (SCHOLASTIC INC. PROJECT) SERIES 2023 Bond No. 1 Date Principal Amount Advanced Principal Amount Redeemed Cumulative Outstanding Principal Amount Notation Made By C-7 FORM OF ASSIGNMENT (NOTE RESTRICTIONS ON TRANSFERS) FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ____________________________________________________________________________________ Print or Typewrite Name, Address and Social Security or other Taxpayer Identification Number of Transferee the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints _____________________________ attorney to transfer the within Bond on the books kept by the Trustee for the registration and transfer of Bonds, with full power of substitution in the premises. Dated: ______________________. _______________________________________ NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular. Medallion Signature Guarantee: D-1 EXHIBIT D FORM OF REPRESENTATION LETTER City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Attention: City Administrator BOKF, N.A. 2405 Grand Boulevard, Suite 840 Kansas City, Missouri 64108 Attention: Corporate Trust Department Re: $44,700,000 Maximum Principal Amount of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, of the City of Jefferson, Missouri Ladies and Gentlemen: In connection with the purchase of the above-referenced bonds (the “Bonds”), Scholastic Inc., a New York corporation, as purchaser of the Bonds (the “Purchaser”), hereby represents, warrants and agrees as follows: 1. The Purchaser, on the date hereof, received from the City of Jefferson, Missouri (the “City”) one registered bond designated Taxable Industrial Development Revenue Bond (Scholastic Inc. Project), Series 2023, in the maximum aggregate principal amount of $44,700,000, numbered No. l, becoming due on December 1, 2035, or when called, and bearing interest at the rate set forth therein from its date of authentication until its principal amount is paid in full. 2. The Purchaser fully understands that (a) the Bonds have been issued under and pursuant to a Trust Indenture dated as of February 1, 2023 (the “Indenture”), between the City and BOKF, N.A., as trustee (the “Trustee”), and (b) the Bonds are payable solely out of certain rents, revenues and receipts to be derived from the leasing or sale of the Project Equipment (as defined in the Indenture) to Scholastic Inc., a New York corporation (the “Company”), under a Lease Agreement dated as of February 1, 2023 (the “Lease”), between the City, as lessor, and the Company, as lessee, with certain of such rents, revenues and receipts being pledged and assigned by the City to the Trustee under the Indenture to secure the payment of the principal of and interest on the Bonds. 3. The Purchaser understands that (a) the Bonds and the interest thereon are special limited obligations of the City payable solely out of the rents, revenues and receipts derived by the City from the Project Equipment and the Lease, and not from any other fund or source of the City, (b) the Bonds are secured by a pledge and assignment of the Trust Estate to the Trustee in favor of the Owners, as provided in the Indenture, (c) the Bonds and the interest thereon shall not constitute general obligations of the City, the State or any political subdivision thereof, and neither the City, the State nor any related political subdivision thereof shall be liable thereon, and (d) the Bonds do not constitute an indebtedness within the meaning of any constitutional, statutory or charter debt limitation or restriction, and are not payable in any manner by taxation. 4. The Purchaser understands that the Bonds have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state and will be sold to the Purchaser in reliance upon certain D-2 exemptions from registration and in reliance upon the representations and warranties of Purchaser set forth herein. 5. The Purchaser understands that the Bonds are transferable only in the manner provided for in the Indenture and discussed below and warrants that it is acquiring the Bonds for its own account with the intent of holding the Bonds as an investment, and the acquisition of the Bonds is not made with a view toward its distribution or for the purpose of offering, selling or otherwise participating in a distribution of the Bonds. 6. The Purchaser agrees not to attempt to offer, sell, hypothecate or otherwise distribute the Bonds to others unless authorized by the terms of the Indenture and upon receipt of any required opinion of counsel acceptable to the City, the Company, the Trustee and the Purchaser that all registration and disclosure requirements of the Securities and Exchange Commission and all other appropriate federal and Missouri securities laws and the securities law of any other applicable state are complied with. 7. The Company has (a) furnished to the Purchaser such information about itself as the Purchaser deems necessary in order for it to make an informed investment decision with respect to the purchase of the Bonds, (b) made available to the Purchaser, during the course of this transaction, ample opportunity to ask questions of, and to receive answers from, appropriate officers of the City and the terms and conditions of the offering of the Bonds, and (c) provided to the undersigned all additional information which it has requested. 8. The Purchaser acknowledges that no offering document has been prepared in connection with the sale of the Bonds. The Purchaser further acknowledges that it has timely received in satisfactory form and manner all proceedings, certificates, opinions, letters and other documents required to be submitted to the Purchaser pursuant to the Bond Purchase Agreement prior to or on the date of the delivery of and payment for the Bonds, and that the City and the Company have in all respects complied with and satisfied all of their respective obligations to the Purchaser which are required under the Bond Purchase Agreement to be complied with and satisfied on or before such date. 9. The Purchaser is now, and was when it agreed to purchase the Bonds, familiar with the operations of the Company and fully aware of the terms and risks of the Bonds and that the Purchaser is relying on its own knowledge and investigation of facts and circumstances relating to the purchase of the Bonds. The Purchaser believes that the Bonds being acquired are a security of the type that the Purchaser wishes to purchase and hold for investment and that the nature and amount thereof are consistent with its investment program. 10. The Purchaser is fully aware of and satisfied with (a) the current status of the title to the Project Equipment and any issues related thereto and (b) the terms, amounts and providers of the insurance maintained pursuant to Article VII of the Lease, and the undersigned is purchasing the Bonds with full knowledge of such matters. 11. The Purchaser understands and agrees that the interest on the Bonds is subject to federal and state income taxation. 12. The Purchaser hereby directs the Trustee to hold the Bonds in trust pursuant to Section 204(c) of the Indenture. Dated: , 20___ D-3 [PURCHASER OF BONDS] By: Name: Title: Gilmore & Bell, P.C. Draft v1 – January 5, 2023 CITY OF JEFFERSON, MISSOURI, As Lessor, AND SCHOLASTIC INC., As Lessee _______________ LEASE AGREEMENT Dated as of February 1, 2023 _______________ Relating to: $44,700,000 (Aggregate Maximum Principal Amount) City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 Certain rights of the City of Jefferson, Missouri (the “City”), in this Lease Agreement has been pledged and assigned to BOKF, N.A., Kansas City, Missouri, as Trustee under the Trust Indenture dated as of February 1, 2023, between the City and the Trustee. LEASE AGREEMENT TABLE OF CONTENTS Page Parties ................................................................................................................................ 1 Recitals .............................................................................................................................. 1 ARTICLE I DEFINITIONS Section 1.1. Definitions of Words and Terms. ....................................................................................... 2 Section 1.2. Rules of Interpretation. ...................................................................................................... 2 Section 1.3. Acceptance of Indenture. ................................................................................................... 2 Section 1.4. Date of this Lease. ............................................................................................................. 3 ARTICLE II REPRESENTATIONS Section 2.1. Representations by the City. .............................................................................................. 3 Section 2.2. Representations by the Company. ...................................................................................... 4 ARTICLE III GRANTING PROVISIONS Section 3.1. Granting of Leasehold Estate. ............................................................................................ 4 Section 3.2. Lease Term. ........................................................................................................................ 4 Section 3.3. Possession and Use of the Project Equipment. .................................................................. 5 Section 3.4. Title to the Project Equipment. .......................................................................................... 5 ARTICLE IV PURCHASING AND INSTALLING OF THE PROJECT EQUIPMENT Section 4.1. Issuance of the Bonds. ....................................................................................................... 5 Section 4.2. Purchase and Installation of the Project Equipment. ......................................................... 6 Section 4.3. Project Costs. ..................................................................................................................... 7 Section 4.4. Payment for Project Costs. ................................................................................................. 7 Section 4.5. Establishment of Completion Date. ................................................................................... 8 Section 4.6. Surplus or Deficiency in Project Fund. .............................................................................. 8 Section 4.7. Project Equipment Property of City. .................................................................................. 8 Section 4.8. Personal Property Purchased by the Company. ................................................................. 9 Section 4.9. Environmental Matters. ..................................................................................................... 9 (ii) ARTICLE V RENT PROVISIONS Section 5.1. Basic Rent. ......................................................................................................................... 9 Section 5.2. Additional Rent. ............................................................................................................... 10 Section 5.3. Obligations of Company Absolute and Unconditional. ................................................... 11 Section 5.4. Prepayment of Basic Rent. ............................................................................................... 11 ARTICLE VI MAINTENANCE, TAXES AND UTILITIES Section 6.1. Maintenance and Repairs. ................................................................................................ 12 Section 6.2. Taxes, Assessments and Other Governmental Charges. .................................................. 12 Section 6.3. Utilities............................................................................................................................. 12 Section 6.4. Property Tax Exemption. ................................................................................................. 13 ARTICLE VII INSURANCE Section 7.1. Insurance Generally. ........................................................................................................ 13 Section 7.2. Property Insurance. .......................................................................................................... 13 Section 7.3. Commercial General Liability Insurance. ........................................................................ 13 Section 7.4. Workers’ Compensation. .................................................................................................. 14 Section 7.5. Blanket Insurance Policies; Self-Insurance...................................................................... 14 Section 7.6. Sovereign Immunity. ........................................................................................................ 14 ARTICLE VIII ALTERATION OF THE PROJECT EQUIPMENT Section 8.1. Additions, Modifications and Improvements to the Project Equipment. .................................................................................................................................... 14 Section 8.2. Removal and Replacement of Portions of the Project Equipment. .................................. 14 Section 8.3. [Reserved]. ....................................................................................................................... 15 Section 8.4. Permits and Authorizations. ............................................................................................. 15 Section 8.5. Mechanics’ Liens. ............................................................................................................ 15 ARTICLE IX DAMAGE, DESTRUCTION AND CONDEMNATION Section 9.1. Damage or Destruction. ................................................................................................... 16 Section 9.2. Condemnation. ................................................................................................................. 17 Section 9.3. Bondowner Approval. ...................................................................................................... 18 (iii) ARTICLE X SPECIAL COVENANTS Section 10.1. No Warranty of Condition or Suitability by the City; Exculpation and Indemnification. .......................................................................................................... 18 Section 10.2. Surrender of Possession. .................................................................................................. 19 Section 10.3. City’s Right of Access to the Project Equipment. ............................................................ 19 Section 10.4. Permitted Encumbrances; Equipment Financing Documents. ......................................... 19 Section 10.5. Indemnification of City and Trustee. ............................................................................... 21 Section 10.6. Depreciation, Investment Tax Credit and Other Tax Benefits. ........................................ 22 Section 10.7. Company to Maintain its Corporate Existence. ............................................................... 22 Section 10.8. Security Interests. ............................................................................................................. 23 ARTICLE XI OPTION AND OBLIGATION TO PURCHASE THE PROJECT EQUIPMENT Section 11.1. Option to Purchase the Project Equipment. ..................................................................... 23 Section 11.2. Conveyance of the Project Equipment. ............................................................................ 24 Section 11.3. Relative Position of Option and Indenture. ...................................................................... 24 Section 11.4. Obligation to Purchase the Project Equipment. ............................................................... 24 Section 11.5. Right of Set-Off. .............................................................................................................. 24 ARTICLE XII DEFAULTS AND REMEDIES Section 12.1. Events of Default. ............................................................................................................ 25 Section 12.2. Remedies on Default. ....................................................................................................... 26 Section 12.3. Survival of Obligations. ................................................................................................... 26 Section 12.4. Performance of the Company’s Obligations by the City. ................................................ 26 Section 12.5. Rights and Remedies Cumulative. ................................................................................... 26 Section 12.6. Waiver of Breach. ............................................................................................................ 26 Section 12.7. Trustee’s Exercise of the City’s Remedies. ..................................................................... 27 ARTICLE XIII ASSIGNMENT AND SUBLEASE Section 13.1. Assignment; Sublease. ..................................................................................................... 27 Section 13.2. Assignment of Revenues by City. .................................................................................... 28 Section 13.3. Restrictions on Sale or Encumbrance of Project Equipment by City. .............................. 28 ARTICLE XIV AMENDMENTS, CHANGES AND MODIFICATIONS Section 14.1. Amendments, Changes and Modifications. ..................................................................... 28 (iv) ARTICLE XV MISCELLANEOUS PROVISIONS Section 15.1. Notices. ............................................................................................................................ 28 Section 15.2. City Shall Not Unreasonably Withhold Consents and Approvals. ................................... 28 Section 15.3. Net Lease. ........................................................................................................................ 29 Section 15.4. Limitation on Liability of City. ........................................................................................ 29 Section 15.5. Governing Law. ............................................................................................................... 29 Section 15.6. Binding Effect. ................................................................................................................. 29 Section 15.7. Severability. ..................................................................................................................... 29 Section 15.8. Electronic Storage. ........................................................................................................... 29 Section 15.9. Performance by Company. ............................................................................................... 29 Section 15.10. Execution in Counterparts................................................................................................ 29 Section 15.11. Anti-Discrimination Against Israel Act ........................................................................... 29 Section 15.12. Complete Agreement. ...................................................................................................... 30 Signatures and Seals ..................................................................................................... S-1 Exhibit A: Description of the Project Site Exhibit B: Project Equipment Exhibit C: Form of Requisition Certificate Appendix I: Performance Agreement LEASE AGREEMENT THIS LEASE AGREEMENT, dated as of February 1, 2023 (the “Lease”), between the CITY OF JEFFERSON, MISSOURI, a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri, as lessor (the “City”), and SCHOLASTIC INC., a corporation organized and existing under the laws of the State of New York and authorized to do business in Missouri (the “Company”), as lessee; RECITALS: 1. The City is authorized under Article VI, Section 27(b) of the Missouri Constitution and Sections 100.010 through 100.200 of the Revised Statutes of Missouri, as amended (the “Act”), to purchase, construct, extend and improve certain “projects” (as defined in the Act) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable. 2. The City Council of the City adopted Resolution No. RS2022-32 on October 17, 2022, expressing the official intent of the City to issue industrial development revenue bonds under the Act to finance an economic development project for the Company (the “Project”), consisting of acquiring and installing new machinery, equipment and other personal property (the “Project Equipment” as more fully described on Exhibit B hereto) to be installed at the Company’s existing facility located at 6336 Algoa Road in the City (the “Project Site” as more fully described on Exhibit A hereto). 3. Following notice to affected taxing jurisdictions in accordance with Section 100.059.1 of the Act, the City Council of the City adopted Ordinance No. [_____] on February 6, 2023 (the “Ordinance”), (a) approving a plan for the Company’s Project and (b) authorizing the issuance of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum aggregate principal amount of $44,700,000 (the “Bonds”), to pay the costs of the Project. 4. Pursuant to the Ordinance, the City is authorized to execute and deliver (a) the Trust Indenture dated as of February 1, 2023 (the “Indenture”), between the City and BOKF, N.A., as bond trustee (the “Trustee”), for the purpose of issuing and securing the Bonds, (b) this Lease with the Company, as lessee, under which the City, as lessor, will cause the Company to acquire and install the Project Equipment and will lease the Project Equipment to the Company, in consideration of rental payments to be paid by the Company which will be sufficient to pay the principal of and interest on the Bonds, and (c) the Performance Agreement dated as of February 1, 2023 (the “Performance Agreement”), between the City and the Company, for the purpose of setting forth the terms and conditions of the Project Equipment’s exemption from ad valorem personal property taxes and certain payments in lieu of taxes to be made by the Company with respect to the Project Equipment. 5. Pursuant to the foregoing, the City desires to lease the Project Equipment to the Company and the Company desires to lease the Project Equipment from the City, for the rental payments and upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the premises and the mutual representations, covenants and agreements herein contained, the City and the Company do hereby represent, covenant and agree as follows: -2- ARTICLE I DEFINITIONS Section 1.1. Definitions of Words and Terms. In addition to any capitalized words and terms defined elsewhere in this Lease and the words and terms defined in Section 101 of the Indenture which definitions are hereby incorporated herein by reference, the following capitalized words and terms as used in this Lease shall have the following meanings: “Environmental Law” means and includes the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource Conservation and Recovery Act, the Superfund Amendments and Reauthorization Act of 1986, any other “Superfund” or “Superlien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Materials, as now or at any time hereafter in effect. “Plans and Specifications” means the plans and specifications prepared for and showing the Project, as amended by the Company from time to time before the Completion Date, the same being on file at the office of the Company and which shall be available for reasonable inspection during normal business hours and upon not less than one Business Day’s prior notice by the City, the Trustee and their duly appointed representatives. Section 1.2. Rules of Interpretation. (a) Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. (b) Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing Persons shall include firms, associations and corporations, including governmental entities, as well as natural Persons. (c) Wherever in this Lease it is provided that either party shall or will make any payment or perform or refrain from performing any act or obligation, each such provision shall, even though not so expressed, be construed as an express covenant to make such payment or to perform, or not to perform, as the case may be, such act or obligation. (d) All references in this instrument to designated “Articles,” “Sections” and other subdivisions are, unless otherwise specified, to the designated Articles, Sections and subdivisions of this instrument as originally executed. The words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or other subdivision. (e) The Table of Contents and the Article and Section headings of this Lease shall not be treated as a part of this Lease or as affecting the true meaning of the provisions hereof. (f) Whenever an item or items are listed after the word “including,” such listing is not intended to be a listing that excludes items not listed. Section 1.3. Acceptance of Indenture. The Company acknowledges that it has received an executed copy of the Indenture and that it is familiar with the terms and conditions of the Indenture. The Company further covenants that it will comply with all the conditions and covenants contained in the -3- Indenture relating to the Company and the Project Equipment, and that it will not take any action which would cause a default thereunder or jeopardize the rights of the Trustee, the City or the Bondowners. Section 1.4. Date of this Lease. The dating of this Lease as of February 1, 2023, is intended as and for the convenient identification of this Lease only and is not intended to indicate that this Lease was executed and delivered on said date, this Lease being executed and delivered and becoming effective simultaneously with the initial issuance of the Bonds. ARTICLE II REPRESENTATIONS Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertakings on its part herein contained: (a) The City is a home rule charter city and municipal corporation duly organized and validly existing under the laws of the State of Missouri. Under the provisions of the Act and its Charter, the City has lawful power and authority to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. By proper action of its City Council, the City has been duly authorized to execute and deliver this Lease, acting by and through its duly authorized officers; (b) As of the date of delivery hereof, the City agrees to purchase and install the Project Equipment or cause the Project Equipment to be purchased and installed at the Project Site. The City agrees to lease the Project Equipment to the Company and sell the Project Equipment or any portion thereof to the Company if the Company exercises its option to purchase the Project Equipment or any portion thereof as provided herein, all for the purpose of furthering the public purposes of the Act, and the City Council of the City has found and determined that the purchase and installation of the Project Equipment will further the public purposes of the Act; (c) To finance the Project Costs, the City proposes to issue the Bonds which will be scheduled to mature as set forth in Article II of the Indenture and will be subject to redemption prior to maturity in accordance with the provisions of Article III of the Indenture; (d) The Bonds are to be issued under and secured by the Indenture, pursuant to which the Project Equipment and the net earnings therefrom, including all rents, revenues and receipts to be derived by the City from the leasing or sale of the Project Equipment, will be pledged and assigned to the Trustee as security for payment of the principal of and interest on the Bonds and amounts owed pursuant to this Lease; (e) The City will not knowingly take any affirmative action that would permit a lien to be placed on the Project Equipment or pledge the revenues derived therefrom for any bonds or other obligations other than the Bonds except with the written consent of the Authorized Company Representative; (f) The City will not operate the Project Equipment in a business-like manner or in any other manner except as the lessor thereof; (g) The purchase and installation of the Project Equipment and the leasing of the Project Equipment by the City to the Company will further the public purposes of the Act; and -4- (h) No member of the City Council of the City or any other officer of the City has any significant or conflicting interest, financial, employment or otherwise, in the Company or in the transactions contemplated hereby. Section 2.2. Representations by the Company. The Company makes the following representations as the basis for the undertakings on its part herein contained: (a) The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of New York and authorized to do business in the State of Missouri and is in good standing under the laws of the State of Missouri; (b) The Company has lawful power and authority to enter into this Lease and to carry out its obligations hereunder and by proper corporate action of its governing body, the Company has been duly authorized to execute and deliver this Lease, acting by and through its duly authorized officers and representatives; (c) The execution and delivery of this Lease, the consummation of the transactions contemplated hereby, and the performance of or compliance with the terms and conditions of this Lease by the Company will not conflict with or result in a material breach of any of the terms, conditions or provisions of, or constitute a material default under, any mortgage, deed of trust, lease or any other restrictions or any agreement or instrument to which the Company is a party or by which it or any of its property is bound, or the Company’s organizational documents or any order, rule or regulation applicable to the Company or any of its property of any court or governmental body, or constitute a material default under any of the foregoing, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Company under the terms of any instrument or agreement to which the Company is a party; (d) The estimated costs of purchasing and installing the Project Equipment supplied by the Company are in accordance with sound accounting principles; and (e) The Project Equipment has been or will be installed and used in the Company’s facility situated on the Project Site which is located wholly within the corporate limits of the City, and will comply in all material respects with all presently applicable laws, rules and regulations. ARTICLE III GRANTING PROVISIONS Section 3.1. Granting of Leasehold Estate. The City hereby rents, leases and lets the Project Equipment to the Company, and the Company hereby rents, leases and hires the Project Equipment from the City, subject to Permitted Encumbrances, for the rentals and upon and subject to the terms and conditions herein contained. Section 3.2. Lease Term. This Lease shall become effective upon its execution and delivery, and subject to sooner termination pursuant to the provisions of this Lease, this Lease shall terminate on December 31, 2035. -5- Section 3.3. Possession and Use of the Project Equipment. (a) The City covenants and agrees that as long as neither the City nor the Trustee has exercised any of the remedies set forth in Section 12.2(b) hereof following the occurrence and continuance of an Event of Default, as defined in Section 12.1 hereof, the Company shall have sole and exclusive possession of the Project Equipment (subject to Permitted Encumbrances and the City’s and the Trustee’s right of access pursuant to Section 10.3 hereof) and shall and may peaceably and quietly have, hold and enjoy the Project Equipment during the Lease Term. The City covenants and agrees that it will not take any action, other than expressly pursuant to Article XII of this Lease, to prevent the Company from having quiet and peaceable possession and enjoyment of the Project Equipment during the Lease Term and will, at the request and expense of the Company, cooperate with the Company in order that the Company may have quiet and peaceable possession and enjoyment of the Project Equipment and will defend the Company’s enjoyment and possession thereof against all parties. (b) Subject to the provisions of this Section, the Company shall have the exclusive right to use the Project Equipment for any lawful purpose allowed by law and contemplated by the Act, this Lease and the Performance Agreement. The Company shall comply in all material respects with all statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements of all federal, state, local and other governments or governmental authorities, now or hereafter applicable to the Project Equipment, as to the manner of use or the condition of the Project Equipment. In the event of demonstrated noncompliance with such statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements the Company will take all reasonable steps to comply with such statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements. The Company shall also comply with the mandatory requirements, rules and regulations of all insurers under the policies carried under the provisions of Article VII hereof. The Company shall pay or cause to be paid all costs, expenses, claims, fines, penalties and damages that may in any manner arise out of, or be imposed as a result of, the failure of the Company to comply with the provisions of this Section. Notwithstanding any provision contained in this Section, however, the Company shall have the right, at its own cost and expense, to contest or review by legal or other appropriate procedures the validity or legality of any such governmental statute, law, ordinance, order, judgment, decree, regulation, direction or requirement, or any such requirement, rule or regulation of an insurer, and during such contest or review the Company may refrain from complying therewith. Section 3.4. Title to the Project Equipment. The City shall be the sole owner of the Project Equipment during the Lease Term; provided, however, that the Company alone shall be entitled to deduct all depreciation on the Project Equipment on the Company’s income tax returns and the City agrees to provide reasonable cooperation with the Company, at the expense of the Company, in obtaining favorable treatment of the lease, sale or repurchase of the Project Equipment for federal or state income and/or sales taxes. ARTICLE IV PURCHASING AND INSTALLING OF THE PROJECT EQUIPMENT Section 4.1. Issuance of the Bonds. To provide funds for the payment of Project Costs, the City agrees, upon request of the Company, that it will issue, sell and cause the Bonds to be delivered to the Company, as purchaser thereof, in accordance with the provisions of the Indenture and the Bond Purchase Agreement. The proceeds of the sale of the Bonds, when received, shall be paid over to the Trustee for the account of the City. The Trustee shall promptly deposit such proceeds, when received, as provided in the -6- Indenture, to be used and applied as hereinafter provided in this Lease and in the Indenture. Alternatively, the Trustee may (pursuant to Section 208(d) or (e) or Section 209(d) of the Indenture) endorse the Bonds in an amount equal to the requisition certificates submitted pursuant to Section 4.4 hereof. In that event, the purchaser of the Bonds shall be deemed to have deposited funds with the Trustee in an amount equal to the amount stated in the requisition certificate. Section 4.2. Purchase and Installation of the Project Equipment. The City and the Company agree that the Company, as the agent of the City shall, but solely from the Project Fund, or an endorsement of the Bond balance pursuant to Section 4.1 above and Section 208(d) or (e) or Section 209(d) of the Indenture, purchase and install the Project Equipment as follows: (a) Concurrently with the execution of this Lease, the City will acquire that portion of the Project Equipment previously acquired by the Company and currently situated on the Project Site, if any, and a bill of sale with respect thereto will be delivered to the City; (b) The Company will, on behalf of the City, purchase and install the Project Equipment on the Project Site in accordance with the Plans and Specifications. Except as provided in the next sentence, title to the Project Equipment shall be evidenced by bills of sale in substantially the form attached to the form of the requisition certificate attached hereto as Exhibit C or other instruments of transfer, including purchase orders or other instruments pursuant to which the City acquires title to personal property directly from the vendor thereof. Subject to Section 8.2 hereof, all portions of the Project Equipment substituted by the Company shall automatically become part of the Project Equipment subject to this Lease, and full title and ownership of such Project Equipment shall be automatically vested in the City, without the requirement of a bill of sale or other instrument of conveyance unless otherwise requested by the City. Such requisition certificate submitted by the Company pursuant to Section 4.4 hereof or other bills of sale or other instruments of transfer, must (1) be dated by no later than December 31 of each year to be treated as Project Equipment (and therefore to be exempt from ad valorem personal property taxes) in the next succeeding year and (2) be submitted to the City by no later than January 31. (c) Each requisition certificate submitted by the Company pursuant to Section 4.4 hereof in the form attached hereto as Exhibit C or other bill of sale or instrument of transfer and each personal property declaration form shall be of sufficient specificity so as to enable the City’s officials and the Assessor’s Office of Cole County, Missouri, to determine which personal property as reported on the annual personal property declaration constitutes Project Equipment (and therefore is owned by the City and subject to this Lease) and which personal property does not constitute Project Equipment (and therefore is owned by the Company and is not subject to this Lease). (d) On or before March 1 of each year or such other date required by law for reporting personal property declarations, the Company shall furnish to the City (addressed to the City Clerk) and the Trustee a list of personal property (based on the Company’s internal record keeping) comprising the Project Equipment as of January 1 of such year (as required by the personal property declarations provided by the Assessor’s Office of Cole County, Missouri). The improper inclusion or exclusion of any item in the Project Equipment pursuant to such list may be rectified by the Company within 30 days of the discovery by the Company of such improper inclusion or exclusion. The improper inclusion or exclusion of an item from such list shall not affect the items comprising the Project Equipment for the purpose of this Lease or title thereto as intended by the parties hereto. The Company shall provide such information to the City and the Trustee as may be requested in order to ensure that such list corresponds to the list of items comprising the Project Equipment maintained by the Trustee pursuant to Section 10.8 hereof. The Trustee may conclusively rely -7- upon such information in compiling a list of Project Equipment in accordance with Section 10.8 hereof. (e) The City and the Company agree that, pursuant to Section 4.7 and Section 4.8 hereof, any interest in any property purchased in whole or in part by the Company with its own funds, and not reimbursed from Bond proceeds, shall not constitute part of the Project Equipment and shall remain the property of the Company and therefore subject to property taxation. (f) The Company agrees that it will use reasonable efforts to cause the purchase and installation of the Project Equipment to be completed as soon as practicable with all reasonable dispatch. In the event such purchase and installation commences prior to the receipt of proceeds from the sale of the Bonds, the Company agrees to advance all funds necessary for such purpose; provided, however, that the Company may be reimbursed from Bond proceeds for any such advance. (g) The Company represents to the City that no portion of the Project Equipment constitutes the erection, construction, alteration, repair or improvement of any public building, road, street, public utility or other public facility. On this basis the provisions of Section 107.170 of the Revised Statutes of Missouri, as amended, are not applicable to the acquisition and installation of the Project Equipment. Section 4.3. Project Costs. The City hereby agrees to pay for, but solely from the Project Fund (or from funds deemed to be deposited into the Project Fund upon the Company’s delivery of a requisition certificate as permitted by Section 208(d) or (e) or Section 209(d) of the Indenture), and hereby authorizes and directs the Trustee to pay for, but solely from the Project Fund (or from funds deemed to be deposited into the Project Fund upon Company’s delivery of a requisition certificate as permitted by Section 208(d) or (e) or Section 209(d) of the Indenture), all Project Costs upon receipt by the Trustee of requisition certificates pursuant to Section 4.4 hereof. The Company may not submit any requisition certificates for Project Costs incurred after the Completion Date. The Company must submit all requisition certificates for Project Costs incurred before the Completion Date within three months after the Completion Date. The maximum amount of Project Equipment for which requisition certificates may be submitted is $44,700,000. All other machinery and equipment installed at the Project Site shall be subject to ad valorem personal property taxes. Section 4.4. Payment for Project Costs. (a) All Project Costs as specified in Section 4.3 hereof shall be paid by the Trustee from the Project Fund as more fully provided in the Indenture, or an endorsement of the Bond balance pursuant to Section 4.1 above and Section 208(d) or (e) or Section 209(d) of the Indenture. The City hereby authorizes and directs the Trustee to make disbursements from the Project Fund, or endorse the Bond balance pursuant to Section 4.1 above and Section 208(d) or (e) or Section 209(d) of the Indenture, upon receipt by the Trustee of certificates in substantially the form attached hereto as Exhibit C, signed by an Authorized Company Representative and approved by an Authorized City Representative. The Company agrees that the information in each certificate will be accurate in all respects when given, and that the Company will notify the City if the Company becomes aware of any material inaccuracies in a certificate after the date on which it is given. (b) The Trustee may rely conclusively on any such certificate and shall not be required to make any independent investigation in connection therewith. The submission of any requisition certificate by an Authorized Company Representative and an Authorized City Representative shall constitute unto the -8- Trustee an irrevocable determination that all conditions precedent to the payments requested have been satisfied. Section 4.5. Establishment of Completion Date. The Completion Date for the Project shall be evidenced to the City and the Trustee by a certificate signed by the Authorized Company Representative stating (a) that the purchase and installation of the Project Equipment has been substantially completed in accordance with the Plans and Specifications, (b) the date of completion thereof, (c) that all costs and expenses of the purchase and installation of the Project Equipment have been paid except costs and expenses the payment of which is not yet due or is being contested in good faith by the Company, and (d) that the foregoing certificate is given without prejudice to any rights against third parties which exist at the date of such certificate or which may subsequently come into being. Notwithstanding the foregoing, the certificate shall be deemed given on December 31, 2025 if not actually filed with the City by December 31, 2025, subject only to any delay caused by force majeure, being defined as damage or destruction of the Project Equipment by fire or casualty, strike, lockout, civil disorder, war, lack of issuance of any permits and/or legal authorization, through no fault of the Company, by the governmental entity necessary for the purchase and installation of the Project Equipment, shortage or delay in shipment of material for the Project Equipment, acts of God, unusually adverse weather or wet soil conditions, or other like causes beyond the Company’s reasonable control, including any litigation, court order or judgment resulting from any litigation affecting the validity of this Lease, the Indenture, the Ordinance or the Project Equipment (collectively, a “Permitted Excuse”). No Permitted Excuse shall be deemed to exist unless the Company provides a written notice to the City, within 30 days after the Company has actual notice of the claimed event, specifying the Permitted Excuse. In no event shall a Permitted Excuse extend the Completion Date beyond December 31, 2026. The Company and the City agree to cooperate in causing such certificate to be furnished to the Trustee. A certificate meeting the requirements of this section will be deemed filed on said date, even if not actually filed by said date. Section 4.6. Surplus or Deficiency in Project Fund. (a) Upon receipt of the certificate described in Section 4.5 hereof, the Trustee shall, as provided in Section 504 of the Indenture, transfer any remaining moneys then in the Project Fund to the Bond Fund to be applied as directed by the Company solely to (1) the payment of principal and premium, if any, of and interest on the Bonds through the payment (including regularly scheduled principal payments, if any) or redemption thereof at the earliest date permissible under the terms of the Indenture, or (2) at the option of the Company, to the purchase of Bonds at such earlier date or dates as the Company may elect. Any amount so deposited in the Bond Fund may be invested as permitted by Section 702 of the Indenture. (b) If no Additional Bonds are issued as provided in Section 209 of the Indenture, and the balance, if any, in the Project Fund shall be insufficient to pay fully all Project Costs and to complete the acquisition and installation of the Project Equipment free of liens and encumbrances other than Permitted Encumbrances, the Company shall pay, in cash, the full amount of any such deficiency by making payments thereof directly to the contractors and to the suppliers of materials and services as the same shall become due, and the Company shall save the City and the Trustee whole and harmless from any obligation to pay such deficiency. Section 4.7. Project Equipment Property of City. The Project Equipment, which the Company desires to convey to the City, and all additions thereto, as acquired, assembled and installed , anything under this Lease which becomes, is deemed to be, or constitutes a part of the Project Equipment, and the Project Equipment as repaired, rebuilt, rearranged, restored or replaced by the Company under the provisions of this Lease, except as otherwise specifically provided herein, shall immediately when acquired and/or installed become the absolute property of the City, subject only to this Lease, the Indenture and any other Permitted Encumbrances. Nothing herein shall limit the Company’s right to own personal property -9- which is not a part of the Project Equipment to be acquired by the City pursuant to Section 4.2 and Section 4.8 hereof. Section 4.8. Personal Property Purchased by the Company. Any items of machinery, equipment or other personal property which do not constitute part of the Project Equipment and the entire purchase price of which is paid for by the Company with the Company’s own funds, and no part of the purchase price of which is paid for, or reimbursed, from funds deposited pursuant to the terms of this Lease in the Project Fund, shall be the sole and absolute property of the Company and shall not constitute a part of the Project Equipment for purposes of Section 6.4 hereof or be subject to any other terms of this Lease or the Performance Agreement, and therefore, shall be subject to property taxation, to the extent otherwise provided by law. Section 4.9. Environmental Matters. (a) The Company acknowledges that is it responsible for maintaining the Project Equipment in compliance with all Environmental Laws. In the event that the Company fails to undertake to comply with any final, non-appealable order issued by any local, state or federal authority under applicable Environmental Law, the City or the Trustee, thirty (30) days after notice to the Company (except in the case of an immediate risk of harm to persons or the Project Equipment), may elect (but shall not be required) to undertake such compliance if the Company has not undertaken such compliance within such thirty (30) day period. Any moneys expended by the City or the Trustee in efforts to comply with any applicable Environmental Law (including the reasonable cost of hiring consultants, undertaking sampling and testing, performing any cleanup necessary or useful in the compliance process and reasonable attorneys’ fees) shall be due and payable as Additional Rent hereunder with interest thereon at the average rate of interest per annum on the Bonds, plus two (2) percentage points, from the date such cost is incurred. There shall be unlimited recourse to the Company to the extent of any liability incurred by the City or the Trustee with respect to any breaches of the provisions of this section. (b) The Company shall and does hereby indemnify the City, the Trustee and the Bondowners and agree to defend and hold them harmless from and against all loss, cost, damage and expense (including, without limitation, reasonable attorneys’ fees and costs associated incurred in the investigation, defense and settlement of claims) that they may incur, directly or indirectly, as a result of or in connection with the assertion against them or any of them of any claim relating to the presence on, escape or removal from the Project Equipment during the term of this Lease of any hazardous substance or other material regulated by any applicable Environmental Law, or compliance with any applicable Environmental Law, whether such claim is raised before, during or after the term of this Lease, including claims relating to personal injury or damage to property; provided, however, this indemnity shall only relate to claims resulting from the City’s ownership of the Project Equipment, the Trustee’s enforcement of its rights hereunder, or performance of its duties in accordance with the Indenture. ARTICLE V RENT PROVISIONS Section 5.1. Basic Rent. (a) The Company covenants and agrees to pay, as Basic Rent for the Project Equipment, to the Trustee in same day funds for the account of the City during this Lease Term, for deposit in the Bond Fund on or before 10:00 a.m., Trustee’s local time, on or before each December 1 (each December 1 being a Payment Date), commencing December 1, 2023 and continuing until the principal of and interest on the -10- Bonds shall have been fully paid, an amount which, when added to any collected funds then on deposit in the Bond Fund and available on such Payment Date, shall be equal to the total amount payable on each December 1 as interest on the Bonds. On December 1, 2035 (or such earlier date as the Company may elect to redeem the Bonds), the Company shall also pay an amount equal to all principal then due on the Bonds in connection with such maturity or redemption. Except as offset pursuant to the right of the Company set forth below, all payments of Basic Rent provided for in this Section shall be paid directly to the Trustee and shall be deposited in accordance with the provisions of the Indenture into the Bond Fund and shall be used and applied by the Trustee in the manner and for the purposes set forth in this Lease and the Indenture. In furtherance of the foregoing, and notwithstanding any other provision in this Lease, the Indenture, the Bond Purchase Agreement or the Performance Agreement to the contrary, and provided that the Purchaser, or any other affiliate of the Company, is the sole holder of the Bonds, the Company shall set-off the then- current Basic Rent payment against the City’s obligation to the Purchaser, or any other affiliate of the Company, as Owner of the Bonds under the Indenture in lieu of delivery of the Basic Rent on any Payment Date, without providing notice of such set-off to the Trustee. The Trustee may conclusively rely on the absence of any written notice from the Company to the contrary as evidence that such set-off has occurred. Any Basic Rent paid by the Company which exceeds the total amount payable on such Payment Dates shall be immediately paid to the Company by wire transfer. If the Trustee is not holding the Bonds pursuant to the provisions of the Indenture, the Purchaser shall, on or before the final Payment Date, deliver or cause to be delivered to the Trustee for cancellation Bonds not previously paid and the Company shall receive a credit against the Basic Rent payable by the Company in an amount equal to the principal amount of the Bonds so tendered for cancellation plus accrued interest thereon. (b) Notwithstanding anything contained in this Lease, the Indenture, the Bond Purchase Agreement or the Performance Agreement to the contrary, if the Purchaser, or any other affiliate of the Company, is the Owner of all of the Bonds Outstanding, payments of Basic Rent may be made via a transaction entry on the trust records held by the Trustee and the Paying Agent without requiring the Company to wire or otherwise transfer any moneys to such Owner or the Trustee. Section 5.2. Additional Rent. The Company shall pay or cause to be paid as Additional Rent, within 30 days after receiving an itemized invoice therefor, the following amounts as and when the same become due: (a) all reasonable fees, charges and expenses, including agent and legal counsel fees, of the City and the Trustee incurred under or arising from the Indenture, this Lease, the Performance Agreement or any other document entered into in connection with the Bonds, including but not limited to claims by contractors and subcontractors of vendors, as and when the same become due; (b) all costs incident to the payment of the principal of and interest on the Bonds as the same becomes due and payable, including all costs and expenses in connection with the call, redemption and payment of all Outstanding Bonds; (c) all reasonable costs which are reasonably incurred in connection with the enforcement of any rights against the Company or the Project Equipment or in connection with a failure of the Company to perform its obligations under this Lease, the Indenture or the Performance Agreement by the City, the Trustee or the Bondowners, including legal counsel fees and expenses; (d) all amounts payable under the Performance Agreement; and (e) all other payments of whatever nature which the Company has agreed to pay or assume under the provisions of this Lease, the Performance Agreement or the Indenture. -11- Section 5.3. Obligations of Company Absolute and Unconditional. (a) The obligations of the Company under this Lease to make payments of Basic Rent and Additional Rent on or before the date the same become due, and to perform all of its other obligations, covenants and agreements hereunder shall be absolute and unconditional, without notice or demand (except as expressly provided herein), and without abatement, deduction, set-off (subject to Section 11.5 hereof), counterclaim, recoupment or defense or any right of termination or cancellation arising from any circumstance whatsoever, whether now existing or hereafter arising, and irrespective of whether the Project Equipment shall have been acquired or installed, or whether the City’s title thereto or to any part thereof is defective or nonexistent, and notwithstanding any damage to, loss, theft or destruction of, the Project Equipment or any part thereof, any failure of consideration or frustration of commercial purpose, the taking by eminent domain of title to or of the right of temporary use of all or any part of the Project Equipment, legal curtailment of the Company’s use thereof, the eviction or constructive eviction of the Company, any change in the tax or other laws of the United States of America, the State of Missouri or any political subdivision thereof, any change in the City’s legal organization or status, or any default of the City hereunder, and regardless of the invalidity of any action of the City; provided, however, that nothing in this Section 5.3(a) or Section 5.3(b) is intended or shall be deemed to affect or impair in any way the rights of the Company to tender Bonds for redemption in satisfaction of Basic Rent as provided in Section 5.1 and Section 5.4 hereof, nor the right of the Company to terminate this Lease and repurchase the Project Equipment as provided in Article XI hereof. (b) Nothing in this Lease shall be construed to release the City from the performance of any agreement on its part herein contained or as a waiver by the Company of any rights or claims the Company may have against the City under this Lease or otherwise, but any recovery upon such rights and claims shall be had from the City separately, it being the intent of this Lease that the Company shall be unconditionally and absolutely obligated to perform fully all of its obligations, agreements and covenants under this Lease (including the obligation to pay Basic Rent and Additional Rent) for the benefit of the Bondowners. The Company may, however, at its own cost and expense and in its own name or in the name of the City, prosecute or defend any action or proceeding or take any other action involving third Persons which the Company deems reasonably necessary in order to secure or protect its right of possession, occupancy and use hereunder, and in such event the City hereby agrees to cooperate fully with the Company and to take all action necessary to effect the substitution of the Company for the City in any such action or proceeding if the Company shall so request. Section 5.4. Prepayment of Basic Rent. The Company may at any time and from time to time prepay all or any part of the Basic Rent provided for hereunder (subject to the limitations of Section 301(a) of the Indenture relating to the partial redemption of the Bonds). During such times as the amount held by the Trustee in the Bond Fund shall be sufficient to pay, at the time required, the principal of and interest on all the Bonds then remaining unpaid, the Company shall not be obligated to make payments of Basic Rent under the provisions of this Lease. At its option, the Company may deliver to the Trustee for cancellation Bonds owned by the Company and not previously paid, and the Company shall receive a credit against amounts payable by the Company for the redemption of Bonds in an amount equal to the principal amount of the Bonds so tendered for cancellation, plus accrued interest thereon (principal to be credited against principal and interest to be credited against interest). -12- ARTICLE VI MAINTENANCE, TAXES AND UTILITIES Section 6.1. Maintenance and Repairs. Throughout the Lease Term the Company shall, at its own expense, keep the Project Equipment in as reasonably safe condition as the operation thereof will permit, and keep the Project Equipment in good repair and in good operating condition, making from time to time all necessary repairs thereto and renewals and replacements thereof it determines to be necessary. Without limiting the generality of the foregoing, the Company shall at all times remain in compliance with all provisions of the City’s applicable codes relating to maintenance and appearance of the Project Equipment. Section 6.2. Taxes, Assessments and Other Governmental Charges. (a) Subject to subsection (b) of this Section, the Company shall promptly pay and discharge, or cause to be paid and discharged, as the same become due, all taxes and assessments, general and special, and other governmental charges of any kind whatsoever that may be lawfully taxed, charged, levied, assessed or imposed upon or against or be payable for or in respect of the Project Equipment, or any part thereof or interest therein (including the leasehold estate of the Company therein or any buildings, improvements, machinery and equipment at any time installed on the Project Site by the Company), or the income therefrom, including any new taxes and assessments not of the kind enumerated above to the extent that the same are lawfully made, levied or assessed in lieu of or in addition to taxes or assessments now customarily levied against personal property, and further including all utility charges, assessments and other general governmental charges and impositions whatsoever, foreseen or unforeseen, which if not paid when due would impair the security of the Bonds or encumber the City’s title to the Project Equipment; provided that with respect to any special assessments or other governmental charges that are lawfully levied and assessed which may be paid in installments, the Company shall be obligated to pay only such installments thereof as become due and payable during the Lease Term. (b) The Company shall have the right, in its own name or in the City’s name, to contest the validity or amount of any tax, assessment or other governmental charge which the Company is required to bear, pay and discharge pursuant to the terms of this Section by appropriate legal proceedings instituted at least 10 days before the tax, assessment or other governmental charge complained of becomes delinquent if and provided (1) the Company, before instituting any such contest, gives the City and the Trustee written notice of its intention to do so, (2) the Company diligently prosecutes any such contest, at all times effectively stays or prevents any official or judicial sale therefor, under execution or otherwise, and (3) the Company promptly pays any final judgment enforcing the tax, assessment or other governmental charge so contested and thereafter promptly procures record release or satisfaction thereof. The City agrees to cooperate fully with the Company in connection with any and all administrative or judicial proceedings related to any tax, assessment or other governmental charge. The Company shall save and hold harmless the City and the Trustee from any costs and expenses the City and the Trustee may incur related to any of the above. (c) Nothing in this Lease shall be construed to require the Company to make duplicate tax payments. The Company shall receive a credit against any PILOT Payments (as defined in the Performance Agreement) to be made by the Company due under the Performance Agreement to the extent of any ad valorem personal property taxes imposed with respect to the Project Equipment and paid by the Company pursuant to this Section, except as otherwise provided in the Performance Agreement. Section 6.3. Utilities. All utilities and utility services used by the Company in, on or about the Project Site shall be paid for by the Company and shall be contracted for by the Company in the Company’s -13- own name (or the name(s) of its affiliates), and the Company shall, at its sole cost and expense, procure any and all permits, licenses or authorizations necessary in connection therewith. Section 6.4. Property Tax Exemption. The City and the Company expect that while the Project Equipment is owned by the City and is subject to this Lease, the Project Equipment and the leasehold interest of the Company in the Project Equipment is expected to be exempt from all ad valorem personal property taxes by reason of such ownership, and the City agrees that it will (at the expense of the Company) cooperate with the Company to defend such exemption against all parties in accordance with the Performance Agreement attached hereto as Appendix I. The City and the Company further acknowledge and agree that the City’s obligations hereunder are contingent upon (a) the Company making the payments required by this Lease and (b) the compliance by the Company with the terms of the Performance Agreement to the extent of its obligations thereunder, if any, during the term of this Lease. The terms and conditions of the Performance Agreement are incorporated herein as if fully set forth herein. ARTICLE VII INSURANCE Section 7.1. Insurance Generally. The Company agrees to maintain the insurance required by this Article VII. The Trustee shall have no obligation to purchase insurance if the Company fails to maintain the insurance required by this Article VII. Section 7.2. Property Insurance. (a) The Company shall at its sole cost and expense obtain and shall maintain throughout the Lease Term, a policy or policies of insurance to keep the Project Equipment constantly insured against loss or damage by fire, lightning and all other risks covered by the extended coverage insurance endorsement then in use in the State of Missouri in an amount equal to the Full Insurable Value thereof (subject to reasonable loss deductible provisions). The insurance required pursuant to this Section shall be maintained with a generally recognized responsible insurance company or companies authorized to do business in the State of Missouri or generally recognized international insurers or reinsurers with an A.M. Best rating of B+ or the equivalent thereof or better as may be selected by the Company. Except when the Company self- insures in accordance with Section 7.5 herein, certificates of the insurance policies required under this Section shall be delivered by the Company to the Trustee and the City, annually, commencing on the date of execution of this Lease. All such policies of insurance pursuant to this Section, and all renewals thereof, shall name the City, the Trustee and the Company as insureds, as their respective interests may appear, and, to the extent reasonably attainable, shall contain a provision that such insurance may not be canceled by the issuer thereof without at least 10 days’ advance written notice to the City, the Company and the Trustee. (b) In the event of loss or damage to the Project Equipment, the Net Proceeds of property insurance carried pursuant to this Section shall be applied as provided in Article IX of this Lease, or as may be directed by, or on behalf of, the Owners of 100% in principal amount of the Bonds Outstanding. Section 7.3. Commercial General Liability Insurance. (a) The Company shall at its sole cost and expense maintain or cause to be maintained at all times during the Lease Term general accident and commercial general liability insurance under which the City, the Company and the Trustee shall be named as additional insureds, properly protecting and indemnifying the City and the Trustee, in an amount not less than $5,000,000 per occurrence (subject to reasonable loss deductible clauses not to exceed the amounts normally or generally carried by the Company -14- or its affiliates). The policies of said insurance shall contain a provision that such insurance may not be canceled by the issuer thereof without at least 10 days’ advance written notice to the City, the Company and the Trustee. Except when the Company self-insures in accordance with Section 7.5 herein, certificates of such policies shall be furnished to the Trustee annually commencing on the date of execution of this Lease at the address shown in Section 1403 of the Indenture. (b) In the event of a public liability occurrence, the Net Proceeds of liability insurance carried pursuant to this Section shall be applied toward the extinguishment or satisfaction of the liability with respect to which such proceeds have been paid. Section 7.4. Workers’ Compensation. The Company agrees throughout the Lease Term to maintain or cause to be maintained the Workers’ Compensation coverage as may be required by the laws of the State of Missouri. Section 7.5. Blanket Insurance Policies; Self-Insurance. The Company may satisfy any of the insurance requirements set forth in this Article by using blanket policies of insurance, provided each and all of the requirements and specifications of this Article respecting insurance are complied with. Nothing in this Lease shall be construed from prohibiting the Company from self-insuring provided the Company, or in combination with its parent corporation, has a net worth in excess of $200,000,000, as determined by generally accepted accounting principles. If the Company self-insures as permitted by this Section, the Company shall so notify the City and the Trustee in writing and shall be deemed to have complied with the requirements of this Article. Section 7.6. Sovereign Immunity. Notwithstanding anything to the contrary contained herein, nothing in this Lease shall be construed to broaden the liability of the City beyond the provisions of Sections 537.600 to 537.610 of the Revised Statutes of Missouri, as amended, or abolish or waive any defense at law that might otherwise be available to the City or its officers, agents and employees. ARTICLE VIII ALTERATION OF THE PROJECT EQUIPMENT Section 8.1. Additions, Modifications and Improvements to the Project Equipment. The Company shall have and is hereby given the right, at its sole cost and expense, to make such additions, modifications and improvements in and to any part of the Project Equipment as the Company from time to time may deem necessary or desirable for its business purposes. All additions, modifications and improvements made by the Company pursuant to the authority of this Section shall (a) be made in workmanlike manner and will comply in all material respects with all laws and ordinances applicable thereto, (b) when commenced, be prosecuted to completion with due diligence, and (c) when completed, be deemed a part of the Project Equipment; provided, however, that additions of machinery and equipment installed on the Project Site by the Company not purchased or acquired from funds deposited with the Trustee hereunder and not constituting repairs, renewals or replacements of the Project Equipment shall remain the property of the Company, shall not become part of the Project Equipment, and may be removed by the Company. Such machinery, equipment or personal property shall be subject to ad valorem property taxation. Section 8.2. Removal and Replacement of Portions of the Project Equipment. (a) The Company may, if no uncured Event of Default (as defined in Section 12.1 hereof) exists and is continuing, remove from the Project Site and sell, exchange, replace or otherwise dispose of, -15- without responsibility or accountability to the City or the Trustee with respect thereto, any items of machinery and equipment, or parts thereof, which constitute a part of the Project Equipment and which have become inadequate, obsolete, worn out, unsuitable, undesirable unnecessary or damaged or destroyed by casualty or otherwise notwithstanding the provisions of Article IX hereof or which, in the sound discretion of the Company, are otherwise no longer useful to the Company in its operations. Prior to any such removal, the Company shall deliver to the City and the Trustee a certificate signed by an Authorized Company Representative containing a complete description, including the make, model and serial numbers, if any, of any machinery or equipment constituting a part of the Project Equipment that the Company proposes to remove. The Trustee shall amend the list of machinery or equipment comprising the Project Equipment maintained by it pursuant to Section 4.2 and Section 10.8 hereof upon receipt of such certificate. Upon request by the Company, the City will execute and deliver a bill of sale that transfers full and complete title to the Company of such portion of the Project Equipment removed. Notwithstanding anything contained herein to the contrary, title to any item of the Project Equipment removed from the Project Site shall automatically vest in the Company without further instrument or action, and such vesting of title shall be self-operative effective upon removal. Upon any removal of portions of the Project Equipment, the portions of the Project Equipment so removed from the Project Site shall no longer be entitled to the personal property tax exemption afforded by virtue of the City’s ownership thereof as set forth in the Performance Agreement. (b) In all cases, the Company shall pay all of the costs and expenses of any such removal and shall promptly repair at its expense all damage to the Project Site or any Project Equipment remaining on the Project Site caused thereby. The Company’s rights under this Section to remove machinery and equipment constituting a part of the Project Equipment is intended only to permit the Company to maintain an efficient operation by the removal of machinery and equipment which is no longer suitable for any of the reasons set forth in this Section, and such right is not to be construed to permit a removal under any other circumstances and specifically is not to be construed to permit the Company to make a wholesale removal of the Project Equipment. Section 8.3. [Reserved]. Section 8.4. Permits and Authorizations. The Company shall not do or permit others under its control to do any work on the Project Site related to any repair, rebuilding, restoration, replacement, modification or addition to the Project Equipment, or any part thereof, unless all requisite municipal and other governmental permits and authorizations shall have been first procured. All such work shall be done in a good and workmanlike manner and in material compliance with all applicable building, zoning and other laws, ordinances, governmental regulations. In the event of demonstrated noncompliance with such laws, ordinances, governmental regulations and requirements the Company will take all reasonable steps to comply with laws, ordinances, governmental regulations and requirements. Section 8.5. Mechanics’ Liens. (a) The Company will not directly or indirectly create, incur, assume or suffer to exist any lien on or with respect to the Project Equipment, except Permitted Encumbrances, and the Company shall promptly notify the City of the imposition of such lien of which the Company is aware and shall promptly, at its own expense, take such action as may be necessary to fully discharge or release any such lien. Whenever and as often as any mechanics’, vendors’ or other similar lien is filed against the Project Equipment, or any part thereof, purporting to be for or on account of any labor done or materials or services furnished in connection with any work in or about the Project Site, the Company shall discharge the same of record. Notice is hereby given that the City shall not be liable for any labor or materials furnished the Company or anyone claiming by, through or under the Company upon credit, and that no mechanics’, -16- vendors’ or other similar lien for any such labor, services or materials shall attach to or affect the reversionary or other estate of the City in and to the Project Equipment or any part thereof. (b) Notwithstanding subsection (a) above, the Company may contest any such mechanics’, vendors’ or other similar lien if the Company (1) within 60 days notifies the City and the Trustee in writing of its intention to do so, (2) diligently prosecutes such contest, (3) at all times effectively stays or prevents any official or judicial sale of the Project Equipment, or any part thereof or interest therein, under execution or otherwise, (4) promptly pays or otherwise satisfies any final judgment adjudging or enforcing such contested lien claim and (5) thereafter promptly procures record release or satisfaction thereof. The Company may permit the lien so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Company is notified by the City that, in the opinion of counsel, by nonpayment of any such items, the interest of the City in the Project Equipment will be subject to loss or forfeiture. In that event, the Company shall promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim if the same shall arise at any time. The Company shall defend, save and hold harmless the City from any loss, costs or expenses the City may incur related to any such contest. The Company shall reimburse the City for any expense incurred by it in connection with the imposition of any such lien or in order to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim. The City shall cooperate fully with the Company in any such contest. ARTICLE IX DAMAGE, DESTRUCTION AND CONDEMNATION Section 9.1. Damage or Destruction. (a) If the Project Equipment is damaged or destroyed by fire or any other casualty, whether or not covered by insurance, the Company, as promptly as practicable, may elect to do any of the following: (1) repair, restore, replace or improve the Project Equipment as nearly as may be practicable to the condition and character of the Project Equipment immediately prior to such damage or destruction, with the completion of such repairs, restoration, replacement or improving of such Project Equipment being evidenced by certificate of completion in accordance with the provisions of Section 4.5 hereof; or (2) if the Company shall determine that repairing, restoring, replacing or improving the Project Equipment or any portion thereof is not practicable and desirable, any Net Proceeds of property insurance required by Article VII hereof received with respect to such damage or loss shall, after payment of all Additional Rent then due and payable, be paid into the Bond Fund and shall be used to redeem Bonds on the earliest practicable redemption date or to pay the principal of any Bonds as the same become due. Alternatively, if the Company is the sole owner of the Bonds and it has determined that repairing, restoring, replacing or rebuilding the Project Equipment is not practicable or desirable, it may tender the Bonds to the Trustee for cancellation in a principal amount equal to the Net Proceeds of the property insurance and retain such Net Proceeds for its own account. (b) If the Company shall elect to replace, restore or repair any Project Equipment, for all purposes of this Lease, any reference to the word “Project Equipment” shall be deemed to also include any such new equipment and all additions thereto and all replacements and alterations thereof. -17- (c) The Net Proceeds of property insurance required by Article VII hereof received with respect to any damage or loss to the Project Equipment shall be paid to the Company. The insurance monies, if any, paid to the Company as provided under this Article, on account of any loss or destruction to the Project Equipment, shall be held by it in trust and applied only as provided in subsection (a) above. (d) If any of the insurance monies paid by the insurance company to the Company as hereinabove provided, shall remain after the completion of such repairs, restoration or replacement, and this Lease has not been terminated, the excess shall be deposited in the Bond Fund. If the Net Proceeds shall be insufficient to pay the entire cost of such repairs, restoration or replacement, the Company shall pay the deficiency. (e) In the event of any such damage by fire or any other casualty, the provisions of this Lease shall be unaffected, and the Company shall remain and continue liable for the payment of all Basic Rent and Additional Rent and all other charges required hereunder to be paid by the Company, as though no damage by fire or any other casualty has occurred. (f) The City and the Company agree that they will cooperate with each other, to such extent as such other party may reasonably require, in connection with the prosecution or defense of any action or proceeding arising out of, or for the collection of any insurance monies that may be due in the event of, any loss or damage, and that they will execute and deliver to such other parties such instruments as may be required to facilitate the recovery of any insurance monies. (g) The Company agrees to give prompt written notice to the City and the Trustee with respect to all fires and any other casualties occurring in, on, at or about the Project Site which damage a material portion of the Project Equipment. (h) The Company shall not, by reason of its inability to use all or any part of the Project Equipment during any period in which the Project Equipment is damaged or destroyed or is being repaired, rebuilt, restored or replaced, nor by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the City, the Trustee or the Bondowners or to any abatement or diminution of the rentals payable by the Company under this Lease or of any other obligations of the Company under this Lease except as expressly provided in this Section. Section 9.2. Condemnation. (a) If during the Lease Term, title to, or the temporary use of, all or any part of the Project Equipment is condemned by or sold under threat of condemnation to any authority possessing the power of eminent domain, to such extent that the claim or loss resulting from such condemnation is greater than $1,000,000, the Company shall, within 90 days after the date of entry of a final order in any eminent domain proceedings granting condemnation or the date of sale under threat of condemnation, notify the City and the Trustee in writing as to the nature and extent of such condemnation or loss of title and whether it is practicable and desirable to acquire substitute equipment. (b) If the Company determines that such substitution is practicable and desirable, the Company shall proceed promptly with and complete with reasonable dispatch the acquisition and installation of such substitute equipment, so as to place the Project Equipment in substantially the same condition as existed prior to the exercise of the said power of eminent domain, including the acquisition of other equipment suitable for the Company’s operations (which equipment will be deemed a part of the Project Equipment and available for use by the Company without the payment of any rent other than herein provided, to the same extent as if such other equipment were specifically described herein and demised hereby); provided, that such equipment will be acquired by the City subject to no liens, security interests or encumbrances -18- prior to the lien and/or security interest afforded by the Indenture and this Lease other than Permitted Encumbrances. In such case, any Net Proceeds received from any award or awards with respect to the Project Equipment or any part thereof made in such condemnation or eminent domain proceedings, or of the sale proceeds, shall be applied in the same manner as provided in Section 9.1 hereof (with respect to the receipt of property insurance proceeds). (c) If the Company determines that it is not practicable or desirable to acquire replacement equipment, any Net Proceeds of condemnation awards received by the Company shall, after payment of all Additional Rent then due and payable, be paid into the Bond Fund and shall be used to redeem Bonds on the earliest practicable redemption date or to pay the principal of any Bonds as the same becomes due and payable, all subject to the rights of the mortgagee under any Leasehold Security Agreement and any Equipment Lender under any Equipment Financing Documents. (d) The Company shall not, by reason of its inability to use all or any part of the Project Equipment during any such period of restoration or acquisition nor by reason of the payment of the costs of such restoration or acquisition, be entitled to any reimbursement from the City, the Trustee or the Bondowners or to any abatement or diminution of the rentals payable by the Company under this Lease nor of any other obligations hereunder except as expressly provided in this Section. (e) The City shall cooperate fully with the Company in the handling and conduct of any prospective or pending condemnation proceedings with respect to the Project Equipment or any part thereof, and shall, to the extent it may lawfully do so, permit the Company to litigate in any such proceeding in the name and on behalf of the City. In no event will the City voluntarily settle or consent to the settlement of any prospective or pending condemnation proceedings with respect to the Project Equipment or any part thereof without the prior written consent of the Company. Section 9.3. Bondowner Approval. Notwithstanding anything to the contrary contained in this Article IX, the proceeds of any insurance received subsequent to a casualty or of any condemnation proceedings (or threats thereof) may prior to the application thereof by the City or the Trustee be applied as directed in writing by the Owners of 100% of the principal amount of Bonds Outstanding, subject and subordinate to (a) the rights of the City and the Trustee to be paid all their expenses (including attorneys’ fees, trustee’s fees and any extraordinary expenses of the City and the Trustee) incurred in the collection of such gross proceeds and (b) the rights of the City to any amounts then due and payable under the Performance Agreement. For purposes of this Section only, any person to whom Bonds have been pledged in good faith shall be deemed to be the Owner of the Bonds. ARTICLE X SPECIAL COVENANTS Section 10.1. No Warranty of Condition or Suitability by the City; Exculpation and Indemnification. The City makes no warranty, either express or implied, as to the condition of the Project Equipment or that it will be suitable for the Company’s purposes or needs. The Company releases the City and the Trustee from, agrees that the City and the Trustee shall not be liable for and agrees to hold the City and the Trustee harmless against, any loss or damage to property or any injury to or death of any Person that may be occasioned by any cause whatsoever pertaining to the Project Equipment or the Company’s use thereof; unless such loss is the result of the City’s or the Trustee’s respective gross negligence or willful misconduct. This provision shall survive termination of this Lease. -19- Section 10.2. Surrender of Possession. Upon accrual of the City’s right of repossession of the Project Equipment because of the Company’s default hereunder or upon the cancellation or termination of this Lease for any reason other than the Company’s purchase of the Project Equipment pursuant to Article XI hereof, the Company shall peacefully surrender possession of the Project Equipment to the City in good condition and repair, ordinary wear and tear excepted. All repairs to and restorations of the facilities, buildings, structures or other property containing the Project Equipment required to be made because of such removal shall be made by and at the sole cost and expense of the Company. Section 10.3. City’s Right of Access to the Project Equipment. The Company agrees that the City and the Trustee, and their duly authorized agents, shall have the right at reasonable times during business hours, subject to 48 hours’ advance written notice and the Company’s usual safety and security requirements, to enter upon the Project Site (a) to examine and inspect the Project Equipment without interference or prejudice to the Company’s operations, (b) as may be reasonably necessary to cause to be completed the purchase and installation provided for in Section 4.2 hereof, (c) performing such work in and about the Project Site made necessary by reason of the Company’s default under any of the provisions of this Lease, and (d) exhibiting the Project Equipment to prospective purchasers, lessees or trustees. The Company shall have the right to have representatives present during any such examination or inspection, including legal counsel. Section 10.4. Permitted Encumbrances; Equipment Financing Documents. (a) If no Event of Default under this Lease shall have happened and be continuing, the Company may at any time or times incur Permitted Encumbrances. (b) The Company may request the City to (i) pledge, assign or otherwise hypothecate all or a portion of its interest in and to the Project Equipment in connection with any Equipment Financing, and/or (ii) acknowledge any Equipment Financing and the rights and remedies of any Equipment Lender thereunder. Subject to the terms and conditions of this Section, the City promptly will execute and deliver or authorize the filing of, at the Company’s request and expense, all Equipment Financing Documents. The City and the Trustee will not be liable for any of the indebtedness evidencing the Equipment Financing or for any other obligations of the Company, as borrower under the Equipment Financing Documents in the Company’s own name or as the authorized agent for the City even if such agency relationship is not specified. No separate signature or authorization from the City will be required for the execution and delivery of any Equipment Financing Documents. Each Equipment Lender will be entitled to rely upon the Equipment Financing Documents as having been executed by the Company as the agent for the City unless the Equipment Lender has actual notice that the agency granted in this Lease has been terminated because of an uncured Event of Default under this Lease. The City appoints the Company as its irrevocable attorney- in-fact, coupled with an interest, to execute and deliver on behalf of the City each Equipment Financing Document, subject to the limitations of liability set forth above. (c) In the event of an Equipment Financing by which all or a portion of the Project Equipment is pledged as collateral under the Equipment Financing Documents, each of the following provisions will apply in addition to, but not excluding, provisions of the Equipment Financing Documents: (1) This Lease may not be modified, amended, canceled or surrendered by agreement between the City and the Company, without the prior written consent of each Equipment Lender of which the City and the Trustee have received written notice. (2) There will be no merger of title between the leasehold estate created by this Lease and the ownership interest of the City in the Project Equipment, notwithstanding that this Lease or -20- the leasehold estate and ownership interest will be owned by the same person or persons, without the prior written consent of each Equipment Lender. (3) If the mailing address of the Equipment Lender is provided to the City and the Trustee in writing, the City will send each Equipment Lender a copy of each notice of default and each notice of termination given to the Company under this Lease, at the same time such notice is sent to the Company. No notice to the Company will be effective unless a copy thereof is served upon each Equipment Lender of which the City and the Trustee has received written notice. (4) Each Equipment Lender will have the same time period after receipt of notice within which to remedy or cause to be remedied any payment default under this Lease plus thirty (30) days, and the City will accept performance by the Equipment Lender as timely performance by the Company. (5) The Equipment Lender will not be required to continue possession or continue legal proceedings under this Section if the particular default has been cured. (6) The City may exercise any of its rights or remedies with respect to any other default by the Company, subject to the rights of the Equipment Lender under this Section as to such other defaults. (7) In case of default by the Company under this Lease or the Performance Agreement, other than a default in the payment of money, the City will take no action to effect a termination of this Lease or the Performance Agreement by service of a notice or otherwise without first giving notice to the Equipment Lender and allowing the Equipment Lender a reasonable time within which either to (i) obtain possession of the Project Equipment and to remedy such default, or (ii) institute and, with reasonable diligence, complete legal proceedings or otherwise acquire the Company’s leasehold estate under this Lease. The City’s right to terminate this Lease and the Performance Agreement by reason of a default that is not susceptible of being remedied by the Equipment Lender will end with respect to such default when the Equipment Lender obtains possession of the Project Equipment or portion thereof financed by an Equipment Financing. The Equipment Lender will pay or cause to be paid to the City and the Trustee all expenses, including reasonable counsel fees, court costs and disbursements incurred by the City or the Trustee in connection with any such default. (8) If this Lease terminates prior to the expiration of the Lease Term, the City will enter into a new lease for the Project Equipment with the Equipment Lender for the remainder of the term, effective as of the date of such termination, at the same rent and upon the same terms, covenants and conditions contained herein, except that such new lease shall not guarantee possession of the Project Equipment to the Equipment Lender as against the Company and/or anyone claiming under the Company, and the City, simultaneously with the execution and delivery of such new lease, turns over to the new lessee all monies, if any, then held by the City under the Lease on behalf of the Company, on condition that: (i) the Equipment Lender will make written request for such new lease within thirty (30) days after the date of such termination, and (ii) on the commencement date of the term of the new lease, the new tenant cures all defaults of the Company under this Lease (susceptible of being cured by the Equipment Lender) which remain uncured on that date, and pays or causes to be paid all unpaid sums which at such time would have been payable under this Lease but for such -21- termination, and pays or causes to be paid to the City and the Trustee on that date all expenses, including reasonable counsel fees, court costs and disbursements, incurred by the City and the Trustee in connection with any such default and termination as well as in connection with the execution and delivery of such new lease. If more than one Equipment Lender requests a new lease, a new lease will be made with and delivered to the Equipment Lender whose security interest is prior in lien to those of any other Equipment Lender. (9) If the Equipment Lender becomes the lessee under this Lease and the Equipment Lender assigns this Lease, the Equipment Lender assigning this Lease shall be released from all liability accruing from and after the date of such assignment with the express written consent of the City. (d) In the event the City or the Trustee engages counsel to review Equipment Financing Documents in connection with any request for the City to execute any Equipment Financing Documents or otherwise pledge the Project Equipment as collateral, the Company will reimburse the City and the Trustee for their reasonable counsel fees and expenses incurred in connection with such review. Section 10.5. Indemnification of City and Trustee. (a) The Company shall indemnify and save and hold harmless the City and the Trustee and their governing body members, officers, agents and employees (collectively, the “Indemnified Parties”) from and against all claims, demands, costs, liabilities, damages or expenses, including reasonable attorneys’ fees, by or on behalf of any Person, firm or corporation arising from the issuance of the Bonds and the execution of the Performance Agreement, this Lease (or any instrument requested by the Company pursuant to Section 10.4 hereof), the Indenture or any other documents entered into in connection with the Bonds and from the conduct or management of, or from any work or thing done in or on the Project Site or relating to the Project Equipment during the Lease Term, and against and from all claims, demands, costs, liabilities, damages or expenses, including reasonable attorneys’ fees, arising during the Lease Term from (1) any condition of the Project Equipment, (2) any breach or default on the part of the Company in the performance of any of its obligations under the Performance Agreement, this Lease or any related document, (3) any contract entered into by the Company in connection with the purchase and installation of the Project Equipment (including any mechanics’ liens), (4) any act of negligence of the Company or of any of its agents, contractors, servants, employees or licensees, (5) unless the Company has been released from liability pursuant to Section 13.1 hereof, any act of negligence of any assignee or sublessee of the Company, or of any agents, contractors, servants, employees or licensees of any assignee or sublessee of the Company, (6) obtaining any applicable state and local sales and use tax exemptions for materials or goods that become part of the Project Equipment, (7) any violation of Section 107.170 of the Revised Statutes of Missouri, as amended, and (8) any claim relating to the presence on, escape or removal from the Project Site or the Project Equipment during the term of the Lease of any hazardous substance or other material regulated by any applicable Environmental Law, or compliance with any applicable Environmental Law, whether such claim arises before, during or after the term of this Lease, including claims relating to personal injury or damage to property; provided, however, the indemnification contained in this Section 10.5 shall not (i) extend to the City if such claims, demands, costs, liabilities, damages or expenses, including attorneys’ fees, are the result of work being performed at the Project Site by employees of the City or the result of gross negligence or willful misconduct by the City, or (ii) extend to the Trustee if such claims, demands, costs, liabilities, damages or expenses, including attorneys’ fees, are the result of the gross negligence or willful misconduct of the Trustee or (iii) extend to the City if such claims, demands, costs, liabilities, damages or expenses, including attorneys’ fees, are the result of the performance or failure to perform by the City of its obligations under the Performance Agreement. Upon notice from the City or the -22- Trustee, the Company shall defend them or either of them in any such action or proceeding. This Section 10.5 shall survive any termination of this Lease and the Performance Agreement or the satisfaction and discharge of the Indenture. (b) In case any action shall be brought against one or more of the Indemnified Parties based upon the foregoing indemnification and in respect of which indemnity may be sought against the Company, the Indemnified Parties shall promptly notify the Company in writing and the Company shall promptly assume the defense thereof, including the employment of counsel, the payment of all reasonable expenses and the right to negotiate and consent to settlement. If the Company shall have wrongfully failed to assume the defense of such action, the reasonable fees and expenses of counsel retained by the Indemnified Party shall be paid by the Company. If any of the Indemnified Parties is advised by counsel retained by the Company to defend such action that there may be legal defenses available to it which are adverse to or in conflict with those available to the Company or any other Indemnified Party, and that the defense of such Indemnified Party should be handled by separate counsel, the Company shall not have the right to assume the defense of such Indemnified Party, but shall be responsible for the reasonable fees and expenses of counsel retained by such Indemnified Party in assuming its own defense, provided, such counsel shall be acceptable to the Company. Any one or more of the Indemnified Parties shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless employment of such counsel has been specifically authorized by the Company in writing, which shall not be unreasonably withheld or delayed. The Company shall not be liable for any settlement of any such action effected without its prior written consent by any of the Indemnified Parties, but if settled with the prior written consent of the Company or if there be a final judgment for the plaintiff in any such action against the Company or any of the Indemnified Parties, with or without the consent of the Company, the Company agrees to indemnify and hold harmless the Indemnified Parties to the extent provided herein. Section 10.6. Depreciation, Investment Tax Credit and Other Tax Benefits. The City agrees that any depreciation, investment tax credit or any other tax benefits with respect to the Project Equipment or any part thereof shall be made available to the Company, and the City will fully cooperate with the Company in any effort by the Company to avail itself of any such depreciation, investment tax credit or other tax benefits; provided, however, that the City shall not be required to incur any out-of-pocket expense in connection therewith. Section 10.7. Company to Maintain its Corporate Existence. The Company agrees that until the Bonds are paid or payment is provided for in accordance with the terms of the Indenture, it will maintain its corporate existence, and will not dissolve or otherwise dispose of all or substantially all of its assets; provided, however, that the Company may, without violating the agreement contained in this Section, consolidate with or merge into another domestic corporation (i.e., a corporation incorporated and existing under the laws of one of the states of the United States) or permit one or more other domestic corporations to consolidate with or merge into it, or may sell or otherwise transfer to another domestic corporation all or substantially all of its assets as an entirety and thereafter dissolve, provided, the surviving, resulting or transferee corporation either (a) becomes, in connection with the consolidation, merger or sale of assets becomes the Owner of 100% in principal amount of the Bonds Outstanding and expressly assumes in writing all of the obligations of the Company contained in this Lease and the Performance Agreement, or (b) if not the Owner of 100% in principal amount of the Bonds Outstanding, expressly assumes in writing all the obligations of the Company contained in this Lease; and, further provided, that if not the Owner of 100% in principal amount of the Bonds Outstanding, the surviving, resulting or transferee corporation, as the case may be, has a consolidated net worth (after giving effect to said consolidation, merger or transfer) at least (1) equal to or greater than that of the Company immediately prior to said consolidation, merger or transfer, or (2) $100,000,000. The term “net worth”, as used in this Section, shall mean the difference obtained by subtracting total liabilities (not including as a liability any capital or surplus item) from total -23- assets of the Company and all of its subsidiaries. In any such consolidation, merger or transfer the Company shall comply with the provisions of Section 10.1 hereof to the extent applicable. Section 10.8. Security Interests. At the written request of the Owner of the Bonds, the City and the Company agree to enter into all instruments (including financing statements and statements of continuation) necessary for perfection of and continuance of the perfection of the security interests of the City and the Trustee in the Project Equipment and the rights of the Trustee under the Indenture. The Trustee shall, pursuant to Section 805 of the Indenture, continue or cause to be continued the liens of such instruments for so long as the Bonds shall be Outstanding. The City and the Company shall cooperate with the Trustee in this regard by executing such continuation statements and providing such information as the Trustee may require to file or to renew such statements and liens. The Trustee shall maintain a file showing a description of all Project Equipment, said file to be compiled from the certificates furnished to the Trustee pursuant to Sections 4.2, 4.4 and 8.2 hereof. ARTICLE XI OPTION AND OBLIGATION TO PURCHASE THE PROJECT EQUIPMENT Section 11.1. Option to Purchase the Project Equipment. The Company shall have, and is hereby granted, the option to purchase all or any portion of the Project Equipment at any time, including after an Event of Default, upon payment in full or redemption of the Outstanding Bonds to be redeemed or provision for their payment or redemption having been made pursuant to Article XIII of the Indenture. In addition, the Company shall exercise such option in accordance with the Performance Agreement. To exercise such option, the Company shall give written notice to the City and to the Trustee, and shall specify therein the date of closing of such purchase, which date shall be not less than 15 nor more than 90 days from the date such notice is mailed, and, in case of a redemption of the Bonds in accordance with the provisions of the Indenture, the Company shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption. Notwithstanding the foregoing, if the City or the Trustee provides notice of its intent to exercise its remedies hereunder upon an Event of Default (a “Remedies Notice”), the Company shall be deemed to have exercised its repurchase option under this Section on the 29th day following the issuance of the Remedies Notice without any further action by the Company; provided said Remedies Notice has not been rescinded by such date (such option to take place on the 29th day following the issuance of the Remedies Notice). The Company may rescind such exercise by providing written notice to the City and the Trustee on or prior to the 29th day and by taking such action as may be required to cure the default that led to the giving of the Remedies Notice. The purchase price payable by the Company in the event of its exercise of the option granted in this Section shall be the sum of the following: (a) an amount of money which, when added to the amount then on deposit in the Bond Fund, will be sufficient to redeem all of the then Outstanding Bonds on the earliest redemption date next succeeding the closing date, including, without limitation, principal and interest to accrue to said redemption date and redemption expense; plus (b) an amount of money equal to the Trustee’s agreed to and reasonable fees, charges and expenses under the Indenture accrued and to accrue until such redemption of the Bonds; plus (c) an amount of money equal to all payments due and payable pursuant to the Performance Agreement through the end of the calendar year in which the date of purchase occurs; plus -24- (d) an amount of money equal to the City’s reasonable charges and expenses incurred in connection with the Company exercising its option to purchase all or a portion of the Project Equipment, including the fees of any attorney(s) the City engages in connection with the exercise of such option; plus (e) the sum of $10.00. At its option, to be exercised at least 5 days prior to the date of closing such purchase, the Company may deliver to the Trustee for cancellation Bonds not previously paid, and the Company shall receive a credit against the purchase price payable by the Company in an amount equal to 100% of the principal amount of the Bonds so delivered for cancellation, plus the accrued interest thereon. Section 11.2. Conveyance of the Project Equipment. At the closing of the purchase of the Project Equipment pursuant to this Article XI, the City will upon receipt of the purchase price deliver to the Company the following: (a) If the Indenture shall not at the time have been satisfied in full, a release from the Trustee of the Project Equipment from the lien and/or security interest of the Indenture and this Lease and appropriate termination of financing statements as required under the Uniform Commercial Code; and (b) Documents, including without limitation a bill of sale, conveying to the Company legal title to the Project Equipment, as it then exists, subject to the following: (1) those liens and encumbrances, if any, to which title to the Project Equipment was subject when conveyed to the City; (2) those liens and encumbrances created by the Company or to the creation or suffering of which the Company consented; (3) those liens and encumbrances resulting from the failure of the Company to perform or observe any of the agreements on its part contained in this Lease; (4) Permitted Encumbrances other than the Indenture and this Lease; and (5) if the Project Equipment or any part thereof is being condemned, the rights and title of any condemning authority. Section 11.3. Relative Position of Option and Indenture. The options and obligation to purchase the Project Equipment granted to the Company in this Article shall be and remain prior and superior to the Indenture and may be exercised whether or not the Company is in default under this Lease, provided that such default will not result in nonfulfillment of any condition to the exercise of any such option and further provided that all options herein granted shall terminate upon the termination of this Lease. Section 11.4. Obligation to Purchase the Project Equipment. The Company hereby agrees to purchase, and the City hereby agrees to sell, the Project Equipment upon the occurrence of (a) the expiration of the Lease Term following full payment of the Bonds or provision for payment thereof having been made in accordance with the provisions of the Indenture, and (b) the final payment due by the Company under the Performance Agreement. The amount of the purchase price under this Section shall be $10.00, plus all payments due and payable pursuant to the Performance Agreement through the end of the calendar year in which the date of purchase occurs, plus an amount sufficient to redeem all the then Outstanding Bonds, plus accrued interest and the reasonable fees and expenses of the City and the Trustee. Section 11.5. Right of Set-Off. At its option, to be exercised at least 5 days before the date of closing such purchase, the Company may deliver to the Trustee for cancellation Bonds not previously paid, and the Company shall receive a credit against the purchase price payable by the Company in an amount equal to 100% of the principal amount of the Bonds so delivered for cancellation, plus the accrued interest -25- thereon. The Company may set-off any payment obligation under this Article by tendering a corresponding amount of the Bonds to the Trustee for cancellation. ARTICLE XII DEFAULTS AND REMEDIES Section 12.1. Events of Default. If any one or more of the following events shall occur and be continuing, it is hereby defined as and declared to be and to constitute an “Event of Default” or “default” under this Lease: (a) Default in the due and punctual payment of Basic Rent for a period of 10 days following written notice to the Company by the City or the Trustee (provided that such notice shall not be required to be given more than twice in any 12-month period); or (b) Default in the due and punctual payment of Additional Rent for a period of 30 days following written notice to the Company by the City or the Trustee; or (c) Default in the due observance or performance of any other covenant, agreement, obligation or provision of this Lease on the Company’s part to be observed or performed, and such default shall continue for 30 days after the City or the Trustee has given the Company written notice specifying such default (or such longer period as shall be reasonably required to cure such default; provided that (1) the Company has commenced such cure within said 30-day period, and (2) the Company diligently prosecutes such cure to completion); or (d) The Company: (1) admits in writing its inability to pay its debts as they become due; or (2) files a petition in bankruptcy or for reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the United States Bankruptcy Code as now or in the future amended or any other similar present or future federal or state statute or regulation, or files a pleading asking for such relief; or (3) makes an assignment for the benefit of creditors; or (4) consents to the appointment of a trustee, receiver or liquidator for all or a major portion of its property or fails to have the appointment of any trustee, receiver or liquidator made without the Company’s consent or acquiescence, vacated or set aside; or (5) is finally adjudicated as bankrupt or insolvent under any federal or state law; or (6) is subject to any proceeding, or suffers the entry of a final and non-appealable court order, under any federal or state law appointing a trustee, receiver or liquidator for all or a major part of its property or ordering the winding-up or liquidation of its affairs, or approving a petition filed against it under the Bankruptcy Code, as now or in the future amended, which order or proceeding, if not consented to by it, is not dismissed, vacated, denied, set aside or stayed within 90 days after the day of entry or commencement; or (7) suffers a writ or warrant of attachment or any similar process to be issued by any court against all or any substantial portion of its property, and such writ or warrant of attachment or any similar process is not contested, stayed, or is not released within 60 days after the final entry, or levy or after any contest is finally adjudicated or any stay is vacated or set aside; or (e) The Company vacates, abandons, ceases operations, fails to occupy or is ejected from the Project Site or any material portion thereof, and the same remains uncared for or abandoned for a period of 90 days; or (f) The occurrence and continuance of an “Event of Default” by the Company under the Performance Agreement following any applicable notice and grace period provided therein. -26- Section 12.2. Remedies on Default. If any Event of Default referred to in Section 12.1 hereof has occurred and continues beyond the period provided to cure, then the City may at the City’s election (subject, however, to any restrictions against acceleration of the maturity of the Bonds or termination of this Lease in the Indenture), then or at any time thereafter, and while such default continues, take any one or more of the following actions, subject, however, at all times to the Company’s rights under Article XI: (a) cause all amounts payable with respect to the Bonds for the remainder of the Lease Term to become due and payable after giving ten (10) days prior written notice thereof to the Company, as provided in the Indenture; or (b) give the Company written notice of intention to terminate this Lease on a date specified therein, which date shall not be earlier than 30 days after such notice is given, and if all defaults have not then been cured, on the date so specified, the Owners shall tender or be deemed to have tendered the Outstanding principal amount of the Bonds for cancellation with instruction that such tender is in lieu of payment in accordance with Section 11.1 hereof, the Company’s rights to possession of the Project Equipment shall cease and this Lease shall thereupon be terminated, and the City may re-enter and take possession of the Project Equipment or, if the Company has paid all obligations due and owing under the Indenture, this Lease and the Performance Agreement, the City shall convey the Project Equipment in accordance with Section 11.2 hereof. Section 12.3. Survival of Obligations. The Company covenants and agrees with the City and Owners that those of its obligations under this Lease which by their nature require performance after the end of the Lease Term, or which are expressly stated herein as intended to survive expiration or termination of this Lease, shall survive the cancellation and termination of this Lease, for any cause. Section 12.4. Performance of the Company’s Obligations by the City. Upon an Event of Default, the City, or the Trustee in the City’s name, may (but shall not be obligated so to do) upon the continuance of such failure on the Company’s part for 30 days after written notice of such failure is given the Company by the City or the Trustee, and without waiving or releasing the Company from any obligation hereunder, as an additional but not exclusive remedy, make any such payment or perform any such obligation, and all reasonable sums so paid by the City or the Trustee and all incidental reasonable costs and expenses incurred by the City or the Trustee (including, without limitation, attorneys’ fees and expenses) in performing such obligations shall be deemed Additional Rent and shall be paid to the City or the Trustee on demand, and if not so paid by the Company, the City or the Trustee shall have the same rights and remedies provided for in Section 12.2 hereof in the case of default by the Company in the payment of Basic Rent. Section 12.5. Rights and Remedies Cumulative. The rights and remedies reserved by the Trustee, the City and the Company hereunder are in addition to those otherwise provided by law and shall be construed as cumulative and continuing rights. No one of them shall be exhausted by the exercise thereof on one or more occasions. The Trustee, the City and the Company shall each be entitled to specific performance and injunctive or other equitable relief for any breach or threatened breach of any of the provisions of this Lease, notwithstanding the availability of an adequate remedy at law, and each party hereby waives the right to raise such defense in any proceeding in equity. Notwithstanding anything in this Section 12.5 or elsewhere in this Lease to the contrary, however, the Company’s option to re-purchase the property as provided in Article XI above shall not be terminated upon an Event of Default unless and until this Lease is terminated to the extent permitted pursuant to Section 12.2(b) above. Section 12.6. Waiver of Breach. No waiver of any breach of any covenant or agreement herein contained shall operate as a waiver of any subsequent breach of the same covenant or agreement or as a -27- waiver of any breach of any other covenant or agreement, and in case of a breach by the Company of any covenant, agreement or undertaking by the Company, the Trustee or the City may nevertheless accept from the Company any payment or payments hereunder without in any way waiving the Trustee’s or the City’s rights to exercise any of their respective rights and remedies provided for herein with respect to any such breach or breaches of the Company which were in existence at the time such payment or payments were accepted by the Trustee or the City. Section 12.7. Trustee’s Exercise of the City’s Remedies. Whenever any Event of Default shall have occurred and is continuing, the Trustee may, but except as otherwise provided in the Indenture shall not be obliged to, exercise any or all of the rights of the City under this Article, upon notice as required of the City unless the City has already given the required notice. In addition, the Trustee shall have available to it all of the remedies prescribed by the Indenture. ARTICLE XIII ASSIGNMENT AND SUBLEASE Section 13.1. Assignment; Sublease. (a) The Company and its successors and assigns may assign, transfer, encumber or dispose of this Lease or any interest herein or part hereof for any lawful purpose under the Act, with the prior written consent of the City not to be unreasonably withheld or delayed. Any assignee of all the rights of the Company under this Lease shall agree to be bound by the terms of this Lease, the Performance Agreement and any other documents related to the issuance of the Bonds as the same set forth duties, obligations and requirements of the Company. (b) With respect to any assignment, the Company shall comply with the following conditions: (1) Such assignment shall be in writing, duly executed and acknowledged by the assignor and in proper form for recording; (2) Such assignment shall include the entire then unexpired term of this Lease; and (3) A duplicate original of such assignment shall be delivered to the City and the Trustee within 10 days after the execution thereof, together with an assumption agreement, duly executed and acknowledged by the assignee in proper form for recording, by which the assignee shall assume all of the terms, covenants and conditions of this Lease on the part of the Company to be performed and observed. Upon the satisfaction of the conditions set forth herein, the Company shall be relieved of all further liability occurring on and after the effective date of such assignment. The consent of the City to any assignment, transfer or disposition described in this section for which the City’s consent is expressly required shall not be unreasonably withheld, delayed or conditioned and the City hereby agrees to take the necessary action (including consideration by the City Council, if necessary) to approve or disapprove of such assignment, transfer or disposition within sixty (60) days after receipt of written notice from the Company. The Company shall pay all costs incurred by the City in the ordinary course of business (including attorney’s fees) as a result of such assignment. (c) No sublease of the Project Equipment shall release or discharge the Company from its primary liability for the payment of the Basic Rent and Additional Rent hereunder and the performance of -28- each and all of the covenants and agreements herein contained, and its duties and obligations under this Lease shall continue as if no such sublease had been made. The Company shall, within ten (10) days after the delivery thereof, furnish or cause to be furnished to the City and the Trustee a true and correct copy of each such sublease. Any sublease may provide, at the Company’s option, that the City’s consent shall not be required in respect of any further subletting thereunder if such further subletting is for a similar purpose as the original sublease and is for a purpose permissible under the Act nor with regard to any assignment of such further sublease by a sublessee if the assignment is to (i) any wholly-owned subsidiary or to any parent corporation of the sublessee; or (ii) any affiliate or entity under common control with a parent or subsidiary of the sublessee; or (iii) any entity which acquires all or substantially all of the assets or stock of the sublessee, by merger, consolidation, acquisition or other business reorganization. Section 13.2. Assignment of Revenues by City. The City shall assign and pledge any rents, revenues and receipts receivable under this Lease, to the Trustee pursuant to the Indenture as security for payment of the principal of, interest and premium, if any, on the Bonds and the Company hereby consents to such pledge and assignment. The City and the Company recognize that the Trustee is a third party creditor-beneficiary of this Lease. Section 13.3. Restrictions on Sale or Encumbrance of Project Equipment by City. During the Lease Term, the City agrees that, except to secure the Bonds to be issued pursuant to the Indenture, it will not sell, assign, encumber, transfer or convey the Project Equipment or any interest therein, but may assign its interest in and pledge any moneys receivable under this Lease to the Trustee pursuant to the Indenture as security for payment of the principal of and interest on the Bonds. ARTICLE XIV AMENDMENTS, CHANGES AND MODIFICATIONS Section 14.1. Amendments, Changes and Modifications. Except as otherwise provided in this Lease or in the Indenture, subsequent to the issuance of Bonds and prior to the payment in full of the Bonds (or provision for the payment thereof having been made in accordance with the provisions of the Indenture), this Lease may not be effectively amended, changed, modified, altered or terminated without the prior written consent of (a) the Trustee, given in accordance with the provisions of the Indenture, (b) the Company, and (c) all of the Owners (in the event the Company is not the sole Owner). ARTICLE XV MISCELLANEOUS PROVISIONS Section 15.1. Notices. All notices, certificates or other communications required or desired to be given hereunder shall be in writing and shall be governed by Section 1403 of the Indenture. Section 15.2. City Shall Not Unreasonably Withhold Consents and Approvals. Wherever in this Lease it is provided that the City shall, may or must give its approval or consent, or execute supplemental agreements or schedules, the City shall not unreasonably, arbitrarily or unnecessarily withhold or refuse to give such approvals or consents or refuse to execute such supplemental agreements or schedules; provided, however, that nothing in this Lease shall be interpreted to affect the City’s rights to approve or deny any additional project or matter unrelated to the Project Equipment subject to zoning, building permit or other regulatory approvals by the City. -29- Section 15.3. Net Lease. The parties hereto agree (a) that this Lease shall be deemed and construed to be a net lease, (b) that the payments of Basic Rent are designed to provide the City and the Trustee funds adequate in amount to pay all principal of and interest accruing on the Bonds as the same become due and payable, (c) that to the extent that the payments of Basic Rent are not sufficient to provide the City and the Trustee with funds sufficient for the purposes aforesaid, the Company shall be obligated to pay, and it does hereby covenant and agree to pay, upon demand therefor, as Additional Rent, such further sums of money, in cash, as may from time to time be required for such purposes, and (d) that if after the principal of and interest on the Bonds and all costs incident to the payment of the Bonds (including the reasonable fees and expenses of the City and the Trustee) have been paid in full the Trustee or the City holds unexpended funds received in accordance with the terms hereof such unexpended funds shall, after payment therefrom of all sums then due and owing by the Company under the terms of this Lease, and except as otherwise provided in this Lease and the Indenture, become the absolute property of and be paid over forthwith to the Company. Section 15.4. Limitation on Liability of City. No provision, covenant or agreement contained in this Lease, the Indenture or the Bonds, or any obligation herein or therein imposed upon the City, or the breach thereof, shall constitute or give rise to or impose upon the City a pecuniary liability or a charge upon the general credit or taxing powers of the City or the State of Missouri. Section 15.5. Governing Law. This Lease shall be construed in accordance with and governed by the laws of Missouri. Section 15.6. Binding Effect. This Lease shall be binding upon and shall inure to the benefit of the City and the Company and their respective successors and assigns. Section 15.7. Severability. If for any reason any provision of this Lease shall be determined to be invalid or unenforceable, the validity and enforceability of the other provisions hereof shall not be affected thereby. Section 15.8. Electronic Storage. The parties hereto agree that the transaction described herein may be conducted and related documents may be received, sent or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 15.9. Performance by Company. Notwithstanding any section of this Lease to the contrary, the performance by the Company of any duty, obligation, or other of the Company’s requirements under this Lease shall constitute performance by the Company and no Company default shall occur as a result of the Company’s performance and satisfaction of any such requirement. Section 15.10. Execution in Counterparts. This Lease may be executed simultaneously in several counterparts, each of which shall be deemed to be an original and all of which shall constitute but one and the same instrument. Section 15.11 Anti-Discrimination Against Israel Act. Pursuant to Section 34.600 of the Revised Statutes of Missouri, the Company certifies it is not currently engaged in and shall not, for the duration of this Lease, engage in a boycott of goods or services from (a) the State of Israel, (b) companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel or (c) persons or entities doing business in the State of Israel. -30- Section 15.12 Complete Agreement. The Company and the City understand that oral or unexecuted agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable. To protect the Company and the City from misunderstanding or disappointment, any agreements the Company and the City reach covering such matters are contained in this Lease, the Bond Purchase Agreement and in the Performance Agreement, which are the complete and exclusive statements of the agreement between the Company and the City, except as the Company and the City may later agree in writing to modify this Lease and the Performance Agreement. [Remainder of this page intentionally left blank.] Lease Agreement City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-1 IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed in their respective names by their duly authorized signatories, all as of the date first above written. CITY OF JEFFERSON, MISSOURI By: ___________________________________ Name: Carrie Tergin Title: Mayor [SEAL] ATTEST: By: ___________________________________ Name: Emily Donaldson Title: City Clerk Lease Agreement City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-2 SCHOLASTIC INC., By: Name: Title: A-1 EXHIBIT A DESCRIPTION OF THE PROJECT SITE The Project Site consists of the real property site upon which the Company’s existing facility is located (with a street address of 6336 Algoa Road, Jefferson City, Missouri 65101) where the Project Equipment will be situated and installed. B-1 EXHIBIT B PROJECT EQUIPMENT All items of machinery, equipment and other personal property acquired pursuant to Article IV of this Lease to be installed and used on the Project Site by the Company and paid for, or reimbursed, with Bond proceeds and all additions, replacements, alterations, substitutions thereto now or hereafter effected and specifically designated by the Company. A replacement item may be included by the Company as a part of the Project Equipment under the conditions set forth in this Lease. C-1 EXHIBIT C [FORM OF REQUISITION CERTIFICATE] Requisition No. _________ Date: __________________ REQUISITION CERTIFICATE TO: BOKF, N.A., AS TRUSTEE UNDER A TRUST INDENTURE DATED AS OF FEBRUARY 1, 2023, BETWEEN THE CITY OF JEFFERSON, MISSOURI, AND THE TRUSTEE, AND A LEASE AGREEMENT DATED AS OF FEBRUARY 1, 2023, BETWEEN THE CITY OF JEFFERSON, MISSOURI, AND SCHOLASTIC INC. The undersigned Authorized Company Representative hereby states and certifies that (capitalized words and terms used herein shall have the meanings given to such words and terms in the above- referenced Indenture): 1. A total of $__________ is requested to pay for Project Costs, which may include reimbursement to the Company for payments made by it, and said Project Costs shall be paid in whole from Bond proceeds in such amounts, to such payees and for such purposes as set forth on Schedule 1 hereto. 2. Set forth on Schedule 2 hereto is a description of the Project Equipment acquired, which is being paid for in whole with Bond proceeds pursuant to this Requisition Certificate. Attached hereto as Exhibit A to this Requisition Certificate is the Bill of Sale transferring said Project Equipment to the City. 3. The items for which payment is requested are or were necessary and appropriate in connection with the purchase and installation of the Project Equipment, have been properly incurred and are a proper charge against the Project Fund, and have been paid by the Company or are justly due to the Persons whose names and addresses are stated on Schedule 1, and have not been the basis of any previous requisition from the Project Fund. 4. As of this date, except for the amounts referred to above, (a) there are no, to the best of our knowledge, outstanding disputed statements for which payment is requested for labor, wages, materials, supplies or services in connection with the acquisition and installation of the Project Equipment which, if unpaid, might become the basis of a vendors’, mechanics’, laborers’ or materialmen’s statutory or similar lien upon the Project Equipment or any part thereof; and (b) no part of the several amounts paid or due as stated above has been or is being made the basis for the withdrawal of any moneys from the Project Fund in any previous or pending application for payment made pursuant to said Lease. SCHOLASTIC INC. By: Name: Title: C-2 SCHEDULE 1 TO REQUISITION CERTIFICATE PROJECT COSTS Payee and Address Description Amount C-3 SCHEDULE 2 TO REQUISITION CERTIFICATE PROJECT EQUIPMENT Item (Description) Serial, Identification or Account Number Taxable Cost of Equipment Non-Taxable Cost of Equipment C-4 . EXHIBIT A TO REQUISITION CERTIFICATE BILL OF SALE WITNESSETH: With respect to any equipment, machinery or other personal property described in Schedule 2 to this Requisition Certificate and for which Project Costs are disbursed pursuant to this Requisition Certificate, SCHOLASTIC INC., a New York corporation, authorized to do business in the State of Missouri (“Seller”), in consideration of such disbursement, and other good and valuable consideration, the receipt whereof is hereby acknowledged, has hereby BARGAINED and SOLD, such equipment, machinery or other personal property described in Schedule 2 to this Requisition Certificate, and by these presents does now GRANT and CONVEY, unto the CITY OF JEFFERSON, MISSOURI, a home rule charter city and political subdivision organized and existing under the laws of the State of Missouri (“Buyer”), and its successors and assigns, all of its right, title and interest, if any, in and to all machinery, equipment and other personal property described in Schedule 2 to this Requisition Certificate, and such machinery, equipment and other personal property shall constitute a portion of the “Project Equipment” to be installed or located on the “Project Site” as such terms are defined between the Lease Agreement dated as of February 1, 2023, between the Buyer and the Seller. TO HAVE AND TO HOLD the same unto Buyer, its successors and assigns, subject however to the terms of the Lease Agreement and those liens and/or encumbrances as therein set forth. The property is being conveyed “as is,” “where is” and “with all faults” as of the date of this Bill of Sale, without any representation or warranty whatsoever as to its condition, fitness for any particular purpose, merchantability, or any other warranty, express of implied. IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed in its corporate name by its duly authorized officer this ____ day of _______________________, 20__. SCHOLASTIC, INC., a New York corporation By: Name: Title: APPENDIX I Form of Performance Agreement [See Document No. 4 in the Transcript] Gilmore & Bell, P.C. Draft v1 – January 5, 2023 $44,700,000 (Aggregate Maximum Principal Amount) CITY OF JEFFERSON, MISSOURI TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (SCHOLASTIC INC. PROJECT) SERIES 2023 DATED AS OF FEBRUARY 1, 2023 BOND PURCHASE AGREEMENT City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Ladies and Gentlemen: On the basis of the representations and covenants and upon the terms and conditions contained in this Bond Purchase Agreement (the “Bond Purchase Agreement”), Scholastic Inc., a New York corporation (the “Purchaser”), offers to purchase from the City of Jefferson, Missouri (the “City”), the above-referenced series of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023 (the “Bonds”), to be issued by the City, under and pursuant to Ordinance No. [_____] passed by the City Council of the City on February 6, 2023 (the “Ordinance”) and a Trust Indenture dated as of February 1, 2023 (the “Indenture”), by and between the City and BOKF, N.A., Kansas City, Missouri, as trustee (the “Trustee”). Capitalized terms not otherwise defined herein shall have the meanings set forth in Section 101 of the Indenture. SECTION 1. REPRESENTATIONS AND AGREEMENTS (a) By the City’s acceptance hereof, the City hereby represents to the Purchaser that: (1) The City is a home rule charter city and municipal corporation duly organized and validly existing under the laws of the State of Missouri. The City is authorized under Article VI, Section 27(b) of the Missouri Constitution and Sections 100.010 through 100.200 of the Revised Statutes of Missouri, as amended, and its Charter to authorize, issue and deliver the Bonds and to consummate all transactions contemplated by this Bond Purchase Agreement, the Ordinance, the Indenture, the Lease, the Performance Agreement and any and all other agreements relating thereto. The proceeds of the Bonds shall be used for the purpose of financing the Project for the benefit of Scholastic Inc., a New York corporation (the “Company”), and to pay for the costs incurred in connection with the issuance of the Bonds. (2) There is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the City or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act leading up to the issuance of the Bonds or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of -2- the Bonds, the Ordinance, the Lease, the Indenture, the Performance Agreement or this Bond Purchase Agreement. (b) The Purchaser represents as follows: (1) The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of New York and is in good standing and duly authorized to conduct business in the State of Missouri; (2) The execution, delivery and performance of this Bond Purchase Agreement by the Purchaser has been duly authorized by all necessary action of the Purchaser and does not and will not conflict with or result in the breach of any of the terms, conditions or provisions of, or constitute a default under, its organizational documents, any law, court or administrative regulation, decree or order applicable to or binding upon the Purchaser, or, to the best of its knowledge, any agreement, indenture, mortgage, lease or instrument to which the Purchaser is a party or by which it is bound; (3) When executed and delivered by the Purchaser, this Bond Purchase Agreement will be, and is, a legal, valid and binding obligation, enforceable in accordance with its terms, subject, as to enforcement, to any applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and further subject to the availability of equitable remedies; and (4) Any certificate signed by an authorized officer or agent of the Purchaser and delivered to the City shall be deemed a representation and warranty by the Purchaser to such party as to the statements made therein. SECTION 2. PURCHASE, SALE AND DELIVERY OF THE BONDS (a) On the basis of the representations and covenants contained herein and in the other agreements referred to herein, and subject to the terms and conditions herein set forth and in the Indenture, the Purchaser agrees to purchase from the City and the City agrees to sell to the Purchaser the Bonds on the terms and conditions set forth herein. (b) The Bonds shall be sold to the Purchaser by the City on the Closing Date (hereinafter defined) upon payment of an amount equal to the Closing Price (hereinafter defined) for the Bonds, which amount shall be deposited or deemed deposited in the Project Fund as provided in the Indenture and shall thereafter on the Closing Date immediately be applied to the payment of Project Costs as provided in the Lease. From time to time after the Closing Date as additional Project Costs are incurred, the Purchaser may make additional payments with respect to the Bonds (“Additional Payments”) to the Trustee under the Indenture, which Additional Payments shall be deposited or deemed deposited in the Project Fund and applied to the payment of Project Costs; provided that the sum of the Closing Price and all such Additional Payments for the Bonds shall not, in the aggregate, exceed $44,700,000. (c) As used herein, the term “Closing Date” shall mean February 13, 2023, or such other date as shall be mutually agreed upon by the City and the Purchaser; the term “Closing Price” shall mean, with respect to the Bonds, that certain amount specified in writing by the Purchaser and agreed to by the City as the amount required to pay for the initial issuance of the Bonds on the Closing Date, which amount shall be equal to any Project Costs spent by the Company from its own funds on or before the Closing Date, including costs of issuance. -3- (d) The Bonds shall be issued under and secured as provided in the Ordinance and in the Indenture and the Lease authorized thereby and the Bonds shall have the maturity, interest rate and shall be subject to redemption as set forth therein. The delivery of the Bonds shall be made in definitive form as a fully registered bond in the maximum aggregate principal denomination of $44,700,000; provided, that the principal amount of the Bonds outstanding at any time shall be that amount recorded in the official bond registration records of the Trustee, absent manifest error, and further provided that interest shall be payable on the Bonds only on the outstanding principal amount of the Bonds, as more fully provided in the Indenture. (e) The Purchaser agrees to indemnify and hold harmless the City, the Trustee, and any member, officer, official or employee of the City or of the Trustee and any person controlling the Trustee within the meaning of Section 15 of the Securities Act of 1933, as amended (collectively, the “Indemnified Parties”), against any and all losses, claims, damages, liabilities or expenses whatsoever to the extent caused by any violation by the Purchaser of, or failure by the Purchaser to comply with, any federal or state securities laws in connection with the Bonds. (f) In case any action shall be brought against one or more of the Indemnified Parties based upon the foregoing indemnification and in respect of which indemnity may be sought against the Purchaser, the Indemnified Parties shall promptly notify the Purchaser in writing and the Purchaser shall promptly assume the defense thereof, including the employment of counsel, the payment of all expenses and the right to negotiate and consent to settlement. Any one or more of the Indemnified Parties shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties. The Purchaser shall not be liable for any settlement of any such action effected without its consent by any of the Indemnified Parties, but if settled with the consent of the Purchaser or if there be a final judgment for the plaintiff in any such action against the Purchaser or any of the Indemnified Parties, with or without the consent of the Purchaser, then provided that the Purchaser was given prompt written notice and the ability to assume the defense thereof as required by this paragraph, the Purchaser agrees to indemnify and hold harmless the Indemnified Parties to the extent provided herein. SECTION 3. CONDITIONS TO THE PURCHASER’S OBLIGATIONS The Purchaser’s obligations hereunder shall be subject to the due performance by the City of the City’s obligations and agreements to be performed hereunder on or prior to the Closing Date and to the accuracy of and compliance with the City’s representations contained herein, as of the date hereof and as of the Closing Date, and are also subject to the following conditions: (a) There shall be delivered to the Purchaser on or prior to the Closing Date a duly executed copy of the Ordinance, the Trust Indenture, the Performance Agreement, this Bond Purchase Agreement and the Lease and any other instrument contemplated thereby and such documents shall be in full force and effect and shall not have been modified or changed except as may have been agreed to in writing by the Purchaser. (b) The City shall confirm on the Closing Date by a certificate that at and as of the Closing Date the City has taken all action necessary to issue the Bonds and that there is no controversy, suit or other proceeding of any kind pending or threatened wherein any question is raised affecting in any way the legal organization of the City or the legality of any official act shown to have been done in the transcript of proceedings leading up to the issuance of the Bonds, or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of the Bonds or any proceedings in relation to the issuance or sale thereof. -4- (c) The Purchaser shall execute a certificate, dated the Closing Date, to the effect that (i) no litigation, proceeding or investigation is pending against the Purchaser or its affiliates or, to the knowledge of the Purchaser, threatened which would (A) contest, affect, restrain or enjoin the issuance, validity, execution, delivery or performance of the Bonds, or (B) in any way contest the existence or powers of the Purchaser, (ii) no litigation, proceeding or investigation is pending or, to the knowledge of the Purchaser, threatened against the Purchaser that could reasonably be expected to adversely affect its ability to perform its obligations under the Lease, the Performance Agreement or this Bond Purchase Agreement (iii) the representations and warranties of the Purchaser herein were and are true and correct in all material respects and not misleading as of the date made and as of the Closing Date, and (iv) such other matters as are reasonably requested by the other parties in connection with the issuance of the Bonds. SECTION 4. THE PURCHASER’S RIGHT TO CANCEL The Purchaser shall have the right to cancel its obligation hereunder to purchase the Bonds by notifying the City in writing of its election to make such cancellation at any time prior to the Closing Date. SECTION 5. CONDITIONS OF OBLIGATIONS The obligations of the parties hereto are subject to the receipt of the approving opinion of Gilmore & Bell, P.C., as Bond Counsel to the City (if one is requested), with respect to the validity of the authorization and issuance of the Bonds. SECTION 6. REPRESENTATIONS AND AGREEMENTS TO SURVIVE DELIVERY All of the representations and agreements by either party shall remain operative and in full force and effect, and shall survive delivery of the Bonds to the Purchaser. SECTION 7. PAYMENT OF EXPENSES The Company shall pay all reasonable expenses and costs to effect the authorization, preparation, issuance, delivery and sale of the Bonds. To the best of the City’s knowledge and belief, the only expenses payable by the Company in connection with the issuance of the Bonds are the following: (1) the legal fees of Gilmore & Bell, P.C., as Bond Counsel to the City, in the amount of $[___________] (which includes the bond counsel fee plus a fee for the preparation of the cost-benefit analysis required by the plan for industrial development), and (2) the Trustee’s initial acceptance fee ($1,000.00) and first year’s administrative fee ($1,500.00) totaling $2,500.00. SECTION 8. NOTICE Any notice or other communication to be given under this Agreement may be given by mailing or delivering the same in writing to: (a) To the City: City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Attention: City Administrator Phone: (573) 634-6306 -5- with a copy to: City Counselor City of Jefferson, Missouri 320 East McCarty Street Jefferson City, Missouri 65101 Phone: (573) 634-6570 (b) To the Trustee: BOKF, N.A. 2405 Grand Boulevard, Suite 840 Kansas City, Missouri 64108 Attention: Corporate Trust Department (c) To the Purchaser: Scholastic Inc. 557 Broadway New York, New York 10012 Attention: Jonathan Feldberg SECTION 9. APPLICABLE LAW; ASSIGNABILITY This Bond Purchase Agreement shall be governed by the laws of the State of Missouri and may be assigned by the Purchaser upon the terms of Section 13.1 of the Lease. Any such assignee shall agree to be bound by the terms of this Bond Purchase Agreement. SECTION 10. ELECTRONIC STORAGE The parties agree that the transaction described herein may be conducted and related documents may be sent, received or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. SECTION 11. EXECUTION OF COUNTERPARTS This Bond Purchase 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 same document. SECTION 12. ANTI-DISCRIMINATION AGAINST ISRAEL ACT Pursuant to Section 34.600 of the Revised Statutes of Missouri, the Purchaser certifies that it is not currently engaged in and will not, for the duration of this Bond Purchase Agreement, engage in a boycott of goods or services from (a) the State of Israel, (b) companies doing business in or with the State of Israel or authorized by, licensed by, or organized under the laws of the State of Israel, or (c) persons or entities doing business in the State of Israel. Bond Purchase Agreement City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-1 Very truly yours, SCHOLASTIC INC., as Purchaser Date of Execution: By: Name: February 13, 2023 Title: Accepted and Agreed to this 13th day of February, 2023. SCHOLASTIC INC., as Company By: Name: Title: Bond Purchase Agreement City of Jefferson, Missouri Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-2 Accepted and Agreed to this 13th day of February, 2023. CITY OF JEFFERSON, MISSOURI By: Name: Carrie Tergin Title: Mayor [SEAL] ATTEST: By: ___________________________________ Name: Emily Donaldson Title: City Clerk Gilmore & Bell, P.C. Draft v2 – January 12, 2023 ________________________________ PERFORMANCE AGREEMENT Dated as of February 1, 2023 ________________________________ BETWEEN CITY OF JEFFERSON, MISSOURI AND SCHOLASTIC INC. Prepared By: Gilmore & Bell, P.C. Kansas City, Missouri PERFORMANCE AGREEMENT THIS PERFORMANCE AGREEMENT, dated as of February 1, 2023 (“Agreement”) from time to time amended and supplemented in accordance with the provisions hereof, is between CITY OF JEFFERSON, MISSOURI, a home rule charter city and municipal corporation organized and existing under the laws of the State of Missouri (the “City”), and SCHOLASTIC INC., a corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Missouri (the “Company”). RECITALS: 1. The City is authorized and empowered pursuant to the provisions of Article VI, Section 27(b) of the Missouri Constitution and Sections 100.010 through 100.200, inclusive, of the Revised Statutes of Missouri, as amended (collectively, the “Act”), to purchase, construct, extend and improve certain projects (as defined in Section 100.010 of the Revised Statutes of Missouri, as amended) and to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of such projects and to lease or otherwise dispose of such projects to private persons or corporations for manufacturing, commercial, research and development, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable. 2. The City Council of the City adopted Resolution No. RS2022-32 on October 17, 2022, expressing the official intent of the City to issue industrial development revenue bonds under the Act to finance an economic development project for the Company (the “Project”), consisting of acquiring and installing new machinery, equipment and other personal property (the “Project Equipment” as more fully described on Exhibit A hereto) to be installed at the Company’s existing facility located at 6336 Algoa Road in the City (the “Project Site” as more fully described on Exhibit A hereto). 3. Following notice to the affected taxing jurisdictions in accordance with Section 100.059.1 of the Act, the City Council of the City adopted Ordinance No. [____] on February 6, 2023 (the “Ordinance”), (a) approving a plan for the Company’s Project (the “Chapter 100 Plan”) and (b) authorizing the issuance of Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project), Series 2023, in the maximum aggregate principal amount of $44,700,000 (the “Bonds”), to pay the costs of the Project. 4. Pursuant to the Ordinance, the City is authorized to execute and deliver (a) the Trust Indenture dated as of February 1, 2023 (the “Indenture”), between the City and BOKF, N.A., as bond trustee (the “Trustee”), for the purpose of issuing and securing the Bonds, (b) the Lease Agreement dated as of February 1, 2023 (the “Lease”), with the Company, as lessee, under which the City, as lessor, will cause the Company to acquire and install the Project Equipment and will lease the Project Equipment to the Company, in consideration of rental payments to be paid by the Company which will be sufficient to pay the principal of and interest on the Bonds, and (c) this Agreement, between the City and the Company, for the purpose of setting forth the terms and conditions of the Project Equipment’s exemption from ad valorem personal property taxes and certain payments in lieu of taxes to be made by the Company w ith respect to the Project Equipment. 5. Pursuant to the foregoing, the City desires to enter into this Agreement with the Company for the purpose of setting forth the terms and conditions of the Project Equipment’s exemption from ad valorem personal property taxes and certain payments in lieu of taxes to be made by the Company with respect to the Project Equipment in consideration of the purchase and installation of the Project Equipment at the direction of the Company as more fully described in the Lease. -2- NOW, THEREFORE, in consideration of the premises and the mutual representations, covenants and agreements herein contained, the City and the Company hereby represent, covenant and agree as follows: ARTICLE I DEFINITIONS Section 1.1. Definitions of Words and Terms. In addition to the capitalized words and terms defined elsewhere in this Agreement and the capitalized words and terms defined in Section 101 of the Indenture and Section 1.1 of the Lease, which definitions are hereby incorporated herein by reference, the following capitalized words and terms as used in this Agreement shall have the following meanings: “Additional Jobs PILOT Payment” means any additional payment in lieu of taxes (in addition to the Base PILOT Payments set forth Section 3.2 hereof) as further described in Section 3.3 hereof. “Agreement” means this Performance Agreement dated as of February 1, 2023, between the City and the Company, as from time to time amended and supplemented in accordance with the provisions hereof. “Annual Compliance Report” means the Annual Compliance Report reflecting the number of Jobs the Company maintains at the Project Site as of each Test Date that is required to be filed with the City in accordance with Section 3.3 hereof, a form of which is attached hereto as Exhibit B. “Base PILOT Payment” means the payments in lieu of taxes described in Section 3.2 hereof. “County” means Cole County, Missouri. “County Assessor” means the Assessor of Cole County, Missouri. “Event of Default” means any Event of Default as provided in Section 6.1 hereof. “Job” means a full-time equivalent position with the Company that is filled by a worker who is employed at the Project Site, which for purposes of the calculating the Jobs as required by Section 3.3 hereof shall include the Company’s facilities located in the City at the following street addresses: 6336 Algoa Road, Jefferson City, Missouri 65101; 2931 E McCarty, Jefferson City, Missouri 65101; and 3030 Robinson Road, Jefferson City, Missouri 65101, scheduled to work not less than 37.5 hours per week and is eligible to receive normal full-time employee benefits offered by the Company. Positions filled by workers who are not directly employed by the Company do not qualify as “Jobs” for purposes of this definition. “PILOT Payments” means, collectively, the Base PILOT Payments as described in Section 3.2 hereof and any Additional Jobs PILOT Payments as described in Section 3.3 hereof. “Project” means the acquisition and installation of the Project Equipment. “Project Equipment” means all items of machinery, equipment or other personal property acquired and installed on the Project Site, the costs of which will be paid in whole or in part, or for which the Company will be reimbursed, in whole or in part, from the proceeds of the sale of the Bonds. -3- “Project Site” means all of the real estate and facilities located thereon described in Exhibit A attached hereto and by this reference made a part hereof where the Project Equipment will be installed. For purposes of calculating the Jobs as required in Section 3.3 hereof, the term “Project Site” shall include the Company’s facilities located in the City with the following street addresses: 6336 Algoa Road, Jefferson City, Missouri 65101; 2931 E McCarty, Jefferson City, Missouri 65101; and 3030 Robinson Road, Jefferson City, Missouri 65101. “Test Date” means October 31 of each year, beginning October 31, 2024 and ending on October 31, 2035. ARTICLE II ISSUANCE OF BONDS Section 2.1. Issuance of the Bonds. As described herein, the City intends to issue the Bonds (to be purchased by the Company) under the Act for the purpose of paying (or reimbursing) all or a portion of the Project Costs (as defined in the Indenture). In connection with the issuance of the Bonds, the City will acquire title to the Project Equipment from the Company in accordance with the terms of the Lease and this Agreement. ARTICLE III PERSONAL PROPERTY TAX EXEMPTION; PAYMENTS IN LIEU OF TAXES Section 3.1. Personal Property Tax Exemption. (a) The City expects the Project Equipment to be exempt from ad valorem personal property taxation from and after January 1 of the year following the City’s acquisition thereof and continuing so long as the City owns title to such Project Equipment. The first year of the exemption period shall begin on January 1, 2024. Notwithstanding any other provision of this Agreement to the contrary, the last year of such personal property tax exemption period shall begin on January 1, 2035 and end on December 31, 2035. (b) The Company covenants and agrees that, during each year the Project Equipment is exempt from ad valorem personal property taxes by reason of the City owning title to the Project Equipment, the Company will make annual Base PILOT Payments to the City in such amounts as described in Section 3.2 of this Agreement relating to the Project Equipment. Each Base PILOT Payment required to be paid under Section 3.2 of this Agreement, together with any Additional Jobs PILOT Payment required to be paid under Section 3.3 of this Agreement, are collectively referred to herein as a “PILOT Payment”. The City and the Company hereby agree that the personal property tax abatement provided by this Agreement, and the Company’s obligation to pay any PILOT Payment, shall only apply to machinery, equipment or other personal property financed with proceeds of the Bonds (i.e., machinery, equipment and other personal property constituting a part of the Project Equipment) and shall not apply to any machinery, equipment or other personal property not financed with the proceeds of the Bonds. -4- Section 3.2. Payments in Lieu of Taxes. (a) It is expected that the Company will acquire the Project Equipment with proceeds of the Bonds (either directly or by reimbursement of the Company) and deliver portions of the Project Equipment to the Project Site during calendar years ending December 31, 2023, 2024 and 2025. The anticipated cost of the investments in the Project Equipment to be acquired or reimbursed with proceeds of the Bonds and delivered to the Project Site in calendar years 2023, 2024 and 2025 is reflected in the table below: Year Project Equipment Acquired and Delivered to Project Site Anticipated Cost of Project Equipment 2023 $8,500,000 2024 17,230,000 2025 18,800,000 (b) The Company and the City agree that each portion of the Project Equipment will be exempt from ad valorem personal property taxes for a period not exceeding ten (10) years, which 10-year period of personal property tax abatement will begin the year in which the applicable portion of the Project Equipment would have first been subject to personal property taxation under Missouri law absent the City’s ownership of such Project Equipment; however, in no event will the personal property tax abatement period for any portion of the Project Equipment extend beyond the calendar year ending December 31, 2035. Therefore, the 10-year personal property tax abatement period for each portion of the Project Equipment will be as follows: (1) for the portion of the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2023, the 10-year period of personal property tax abatement will be from calendar year 2024 through calendar year 2033; (2) for the portion of the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2024, the 10-year period of personal property tax abatement will be from calendar year 2025 through calendar year 2034; and (3) for the portion of the Project Equipment expected to be acquired and delivered to the Project Site during calendar year ending December 31, 2025, the 10-year period of personal property tax abatement will be from calendar year 2026 through calendar year 2035. (c) Under the Lease, the City will own and have title to all of the equipment, machinery and other personal property comprising the Project Equipment throughout the Lease Term; as a result, the equipment, machinery and other personal property comprising the Project Equipment would otherwise be exempt from ad valorem personal property taxes during the entire Lease Term (which Lease Term will end not later than December 31, 2035) due to the City’s ownership of such Project Equipment. However, pursuant to this Section 3.2(c), the Company agrees that it shall make a Base PILOT Payment to the City (or to the County if so directed by the City) on or before December 31 of each year, commencing December 31, 2024 (for the portion of the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2023), in an amount equal to the applicable “Percentage of Base PILOT Payment” reflected in the table below multiplied by the amount of ad valorem personal property taxes which would have been due with respect to the applicable portion of the Project Equipment had the Project Equipment not been exempt from such personal property taxes due to the City’s ownership thereof: -5- Project Equipment Acquired and Delivered During Calendar Year Ending December 31 Tax Abatement Period in Years Calendar Years of Personal Property Tax Abatement Percentage of Base PILOT Payment 2023 1 through 10 2024-2033 50% 2023 -- 2034 and after 100%(1) 2024 1 through 10 2025-2034 50% 2024 -- 2035 and after 100%(2) 2025 1 through 10 2026-2035 50% 2025 -- 2036 and after 100% _______________ (1) For equipment, machinery and other personal property comprising the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2023, the last year of the 10-year personal property tax abatement applicable to that portion of the Project Equipment will be 2033. Under the Lease, it is expected the City will own all portions of the Project Equipment and lease all portions of the Project Equipment to the Company until calendar year ending December 31, 2035; therefore, in calendar years 2034 and 2035, the Company will be required to pay a Base PILOT Payment equal to 100% of the ad valorem personal property taxes that would otherwise be due with respect to that portion of the Project Equipment originally acquired and delivered to the Project Site in 2023. (2) For equipment, machinery and other personal property comprising the Project Equipment acquired and delivered to the Project Site during calendar year ending December 31, 2024, the last year of the 10-year personal property tax abatement applicable to that portion of the Project Equipment will be 2034. Under the Lease, it is expected the City will own all portions of the Project Equipment and lease all portions of the Project Equipment to the Company until calendar year ending December 31, 2035; therefore, in calendar year 2035, the Company will be required to pay a Base PILOT Payment equal to 100% of the ad valorem personal property taxes that would otherwise be due with respect to that portion of the Project Equipment originally acquired and delivered to the Project Site in 2024. (d) Pursuant to Section 11.4 of the Lease, the Company shall exercise its option to purchase the Project Equipment no later than December 31, 2035. If title to the Project Equipment has not been transferred by the City to the Company before January 1, 2036, then by not later than December 31, 2036, and not later than December 31 of each year thereafter until title to the Project Equipment is transferred to the Company, the Company shall pay to the City (or to the County at the direction of the City) a Base PILOT Payment equal to 100% of the personal property taxes that would otherwise be due on the Project Equipment, but for the City’s ownership thereof. (e) The City and the Company expect the County Assessor will, until this Agreement is terminated, determine an assessed valuation with respect to the Project Equipment in accordance with Article X, Section 4(b) of the Missouri Constitution and Section 137.115 of the Revised Statutes of Missouri, as amended, as if title to the Project Equipment were in the name of the Company and not the City. Such assessment shall be performed as of January 1 of each year. To facilitate the assessment, the Company agrees to provide to the County Assessor, on or before March 1 of each year or such other date on which personal property declarations are required by State law to be made, a report that includes the following information: (1) a list of equipment, machinery and other personal property comprising the Project Equipment and the cost thereof, in form and content consistent with the personal property declarations that the Company makes with respect to other personal property located at the Project Site; and (2) such other information as the County Assessor may reasonably require to complete the assessment of the Project Equipment. -6- The itemization of the Project Equipment shall be consistent with the information provided by the Company to the City and the Trustee under Section 4.2 of the Lease and shall be of sufficient specificity so as to enable the appropriate City and County officials to determine which personal property as reported on the annual personal property declaration constitutes Project Equipment (and therefore is owned by the City) and which personal property does not constitute Project Equipment (and therefore is owned by the Company). (f) The County Assessor shall notify the City and the Company of the assessed valuation of the Project Equipment in writing. Section 3.3. Adjustment of Payments In Lieu of Taxes for Failure to Maintain Certain Level of Jobs at Project Site. (a) As of the date of this Agreement, the City and Company agree that the Company currently maintains 919 Jobs at the Project Site, and the Company covenants and agrees to maintain at least 90% (or 827) of said Jobs the Company currently maintains at the Project Site for so long as the personal property tax abatement described in this Agreement is in effect. The Company will calculate the total number of Jobs maintained at the Project Site as of October 31 each year (each a “Test Date”), commencing with October 31, 2024, and ending with October 31, 2035, as follows: • The total number of Jobs at the Project Site will be measured by determining the actual number of Jobs on that last day of each month on each of the immediately preceding 12 months ending on each Test Date (i.e., the last day of each month of November 30 through the following applicable October 31 Test Date) and then dividing the sum of the actual number of Jobs on the last day of each respective month by twelve (12) to get the twelve (12)-month average number of Jobs. (b) If the Company fails to maintain at least 827 Jobs at the Project Site as of a particular Test Date (i.e., October 31, 2024 through October 31, 2035) as certified by the Company to the City and an officer of Jefferson City Regional Economic Partnership (who will be assisting the City monitoring compliance with Section 3.3 of this Agreement) in the Annual Compliance Report described in subsection (c) of this Section 3.3, the Company shall pay an Additional Jobs PILOT Payment, which will be in addition to the Base PILOT Payment required to be paid by the Company set forth in Section 3.2 of this Agreement, to the City on or before December 31 of the calendar year in which the Test Date evidencing the failure to meet the Jobs requirement occurs. The Additional Jobs PILOT Payment will be in an amount equal to the formula percentage calculated below (the “Jobs PILOT %”) multiplied by the amount of ad valorem personal property taxes which would have been due with respect to the Project Equipment had the Project Equipment not been exempt from such personal property taxes due to the City’s ownership thereof: When the Percentage of the Base PILOT is 50%: Jobs PILOT % = .50 - (.50 X Actual Number of Jobs 827 ) Jobs PILOT % x B = Additional Jobs PILOT Payment B = 100% of ad valorem personal property taxes that would have otherwise been required to be paid by the Company with respect to the Project Equipment but for the City’s ownership of such Project Equipment -7- (c) The Company shall annually file with the City and Jefferson City Regional Economic Partnership (who will be assisting the City with monitoring the Company’s compliance with this Section 3.3), commencing on November 15, 2024, and continuing on each November 15 thereafter while this Agreement remains in effect, an Annual Compliance Report in the form attached hereto as Exhibit B. The Company also agrees to provide reasonable access to its payroll records for purposes of verifying the number of Jobs, subject to such limitations as the Company determines to be necessary to maintain the privacy of the payroll information of individuals and to comply with all of the Company’s legal obligations with respect to the privacy of the payroll information of individuals. (d) The calculations set forth in this Section 3.3 shall be performed as of each Test Date, with any resulting Additional Jobs PILOT Payment due as a result of such calculation to be applicable for the calendar year in which such Test Date occurs. In no event shall the Additional Jobs PILOT Payment pursuant to this Section 3.3, when added to the Base PILOT Payment calculated pursuant to Section 3.2 of this Agreement, exceed 100% of the actual ad valorem personal property taxes that would have otherwise been payable on the Project Equipment, but for the City’s ownership thereof, for the given year. Section 3.4. Distribution of PILOTS. Within 30 days of the date of receipt of each PILOT Payment, the City Clerk, or other designated billing/collection agent, shall distribute each PILOT Payment, after reduction for the administrative costs of the City as provided by Section 3.5 hereof, among the taxing jurisdictions in proportion to the amount of personal property taxes which would have been paid in each year had the Project Equipment not been exempt from ad valorem personal property taxation pursuant to this Agreement and the City’s ownership of the Project Equipment. Section 3.5. Obligation of City to Effect Personal Property Tax Abatement. The City agrees to take all actions within its control to obtain and/or maintain in effect the personal property tax exemption referred to in Section 3.1 hereof, including any filing required with any governmental authorities; provided, however, the City shall not be liable for any failure of the County or any other governmental taxing authority to recognize the personal property tax exemption provided herein, and the City shall not be required to file litigation to effect the personal property tax exemption. The City covenants that it will not voluntarily take any action intended to cause or induce the levy or assessment of ad valorem personal property taxes on the Project Equipment. If such a levy or assessment should occur, the City shall, at the Company’s request and at the expense of the Company, cooperate with the Company in all reasonable ways to prevent and/or remove any levy or assessment against the Project Equipment. Section 3.6. Administration Costs. Under Section 100.050 of the Act, the City may require the Company to reimburse the City for its actual costs of issuing the Bonds and administering the Chapter 100 Plan including costs associated with this Agreement in an amount no greater than $1,000.00 per year. The City will provide a statement for such costs to the Company not later than November 15th of each year, and the Company will reimburse the City for its costs on or before December 31st of each year continuing until December 31st of the year in which this Agreement expires or is terminated. Section 3.7. Other Property Taxes In Connection with the Project Equipment. The personal property tax exemption provided by the City’s ownership of the Project Equipment is expected to apply to all interests in the Project Equipment during the period the Project Equipment is owned by the City. If any ad valorem personal property taxes are levied by or on behalf of any taxing jurisdiction against any interest in the Project Equipment during the period the City owns the Project Equipment (including, without limitation, any ad valorem personal property taxes levied against the Company’s rights in the Lease), the amount of ad valorem personal property tax payments related to such levy or levies which are paid by the Company and received by the City (or County) shall be credited against and reduce on a pro -8- rata basis the amount of the PILOT Payments the Company is obligated to pay pursuant to this Agreement. The Company shall be responsible for any personal property taxes related to any interest in the Project Equipment or other personal property, equipment or machinery located on the Project Site which the Company owns in its own name or granted to the Company other than pursuant to the Lease. Section 3.8. Sales Tax Exemption for Certain Personal Property Approved by the Missouri Department of Economic Development. (a) The City recognizes that the Company has applied to the Missouri Department of Economic Development (“DED”) for certification of the extent to which certain personal property constitutes eligible tangible personal property for purposes of exemption from sales and use tax. The City will cooperate with the Company and take reasonable efforts to facilitate the exemption of such personal property as is approved by DED (the “DED Approved Personal Property”). Upon receipt by the City of a conditional approval letter from DED (and proof that the Company has provided its tax clearance letter to the Missouri Department of Revenue and has complied with any other requirements of the conditional approval letter), the City will provide the Company with a project exemption certificate for the DED Approved Personal Property. Such project exemption certificate shall not be used by the Company in connection with the acquisition of any Project Equipment or other personal property other than the DED Approved Personal Property, as approved in the DED conditional approval letter. (b) Upon a determination by the Missouri Department of Revenue that any purchase made by the Company using a project exemption certificate described in subsection (a) above was not exempt from sales or use tax, the Company shall pay to the Missouri Department of Revenue all sales or use taxes so determined to be due (whether by virtue of failure of the Company to comply with the terms of this Agreement or the procedures and requirements of DED or otherwise). The Company shall indemnify and defend the City and its respective officers, employees and agents against and from any and all causes of action or actions in law or equity, liens, claims damages, loss, costs or expenses of any nature whatsoever by any person or entity, arising out of the City’s furnishing of the project exemption certificates to or at the request of the Company or its affiliates. There shall be no reduction in PILOT Payments for any sales or use taxes paid by the Company in connection with the Project. Section 3.9. Credits for Certain Tax Payments. Nothing in this Agreement shall be construed to require the Company to make duplicate tax payments. The Company shall receive a credit hereunder to such extent it has made any payment for ad valorem personal property taxes on the Project Equipment to the City. Section 3.10. Company’s Right To Protest Taxes. Notwithstanding any other provision of this Agreement to the contrary, nothing in this Agreement shall be construed to limit or in any way restrict the availability of any provision of State law which confers upon the Company the right to appeal, protest or otherwise contest any property tax valuation, assessment, classification or any portion thereof on behalf of or in the City’s name following written notice to the City from the Company, but solely at the Company’s expense. Section 3.11. PILOT Payments Following Cessation of Operations at the Project Site. If for any reason the Company completely vacates, abandons or ceases operations at the Project Site during the term of this Agreement, and fails to exercise its option to purchase the Project Equipment within 90 days after such vacancy, abandonment or cessation of operations, the Company shall make a PILOT Payment to the City (to be distributed as provided in Section 3.4 hereof) equal to 100% of the ad valorem personal property taxes that would otherwise be payable to each taxing jurisdiction if the Project Equipment was not owned by the City. Such PILOT Payment shall be made on or before December 31 in the year in which the Company first ceases operations at the Project Site and on each December 31 thereafter for each year -9- in which the Project Equipment is, on January 1 of such year, still titled in the name of the City, and the Company has ceased operations at the Project Site. Section 3.12. No Abatement on Special Assessments, Licenses or Fees. The City and the Company hereby agree that the personal property tax exemptions described in this Agreement shall not apply to special assessments and shall not serve to reduce or eliminate any other licenses or fees owing to the City or any other taxing jurisdiction with respect to the Project Equipment. The Company hereby agrees to make payments with respect to all special assessments, licenses and fees which would otherwise be due with respect to the Project Equipment if such Project Equipment was not owned by the City. Section 3.13. No Abatement on Real Property. The City and the Company hereby agree that the personal property tax exemptions described in this Agreement shall not apply to any real property owned by the Company. ARTICLE IV COVENANTS, REPRESENTATIONS AND AGREEMENTS OF THE COMPANY Section 4.1. Inspection. The Company agrees that the City and its duly authorized agents shall have the right at reasonable times (during business hours), subject to at least 48 hours advance notice and to the Company’s usual business proprietary, safety and security requirements, to enter upon the Project Site to examine and inspect the Project Equipment and the records of the Company which demonstrate compliance with this Agreement. Section 4.2. Compliance with Laws. To the best of the Company’s knowledge, the Project Equipment is and will be in material compliance with all applicable federal, State and local laws, statutes, ordinances, rules, regulations, executive orders and codes pertaining to or affecting the Project Equipment, including environmental laws, subject to all applicable rights of the Company to contest the same. Section 4.3. Purchase, Installation and Operation. The Project Equipment will be purchased, installed and operated in a manner that is consistent with the description of the Project Equipment contained in this Agreement and in the Lease. In the event the Project Equipment purchased and installed is materially inconsistent with the description of the Project Equipment contained herein and in the presentation to the City Council of the City, the City reserves the right to declare an Event of Default in accordance with Section 6.1 hereof. Section 4.4. Indemnification. The Company shall indemnify and save and hold harmless the City and the County Assessor from and against all claims, demands, costs, liabilities, damages or expenses, including reasonable attorneys’ fees, by or on behalf of any person, firm or corporation arising from the conduct or management of, or from any work or thing done in, on or about, the Project Site or the Project Equipment, as applicable, during the term of the Lease, and against and from all claims, demands, costs, liabilities, damages or expenses, including reasonable attorneys’ fees, arising during the term of the Lease from any event described in Section 10.5 of the Lease to the extent and subject to the limitations provided therein. Section 4.5. Costs of Issuance of the Bonds. The Company agrees to pay on the date of the initial issuance of the Bonds, all costs of issuance incurred in connection therewith, provided that a closing memorandum detailing all costs of issuance is provided to the Company for review at least two Busi ness Days prior to the initial issuance of the Bonds. -10- ARTICLE V SALE AND ASSIGNMENT The benefits granted by the City to the Company pursuant to this Agreement shall belong solely to the Company, and such benefits shall not be transferred, assigned, pledged or in any other manner hypothecated, except as provided in Section 13.1 of the Lease. ARTICLE VI DEFAULT AND REMEDIES Section 6.1. Events of Default. If any one or more of the following events occurs and is continuing, it is hereby defined as and declared to be and to constitute an Event of Default hereunder: (a) the Company fails to make any PILOT Payments required to be paid hereunder within 10 days after written notice and demand given by the City; (b) The occurrence and continuance of an Event of Default by the Company under the Lease following any applicable notice and grace period provided therein; (c) the Company shall fail to perform any of its obligations hereunder for a period of 60 days (or such longer period as the City and the Company may agree in writing) following written notice to the Company from the City of such failure which notice shall include a specific description of the Company’s failure hereunder; provided however, that if such failure is not subject to cure within such 60 days, such failure shall not constitute an Event of Default hereunder if the Company initiates action to cure such default and pursues such action diligently; or (d) any representation of the Company contained herein proves to be materially false or erroneous and is not corrected or brought into compliance within 60 days (or such longer period as the City and the Company may agree in writing) after the City has given written notice to the Company specifying the false or erroneous representation and requiring it to be remedied; provided, however, that if such matter is not subject to cure within such 60 days after such notice, it shall not constitute and Event of Default hereunder if the Company initiates action to cure the default within such 60 days after such notice and pursues such action diligently. Section 6.2. Remedies on Default. Upon an Event of Default hereunder, this Agreement may be terminated by written notice to the Company from the City. Upon such termination, the Company shall make a PILOT Payment to the City equal to the pro rata amount of ad valorem personal property taxes that would be due for the remaining portion of the year assuming the Project Equipment was placed on the tax rolls effective on the date of termination through December 31; provided, however, the PILOT Payments following cessation of operations shall be governed by Section 3.11; and provided further, the Company shall receive a credit for all PILOT Payments made pursuant to Section 3.2 hereof and such credit shall reduce the amount of any payments due under this Section. Section 6.3. Payments on Defaulted Amounts. Any PILOT Payments due hereunder which are not paid when due shall be subject to penalties imposed by State law on overdue ad valorem personal property taxes from the date such payment was first due. -11- Section 6.4. Enforcement. In addition to the remedies specified in Section 6.2, upon the occurrence of an Event of Default, the City or any taxing jurisdictions that would benefit from the PILOT Payments provided for in this Agreement may bring an action for specific performance to enforce such payments. Section 6.5. Failure of the City to Perform its Obligations. In the event the City shall fail to perform any of its obligations hereunder for (a) a period of 60 days (or such longer period as the Company and the City may agree in writing) following written notice to the City from the Company of such failure which notice shall include a specific description of the City’s failure hereunder, or (b) if such failure is not subject to cure within such 60 days, the City shall have failed to initiate action to cure such default and shall pursue such action diligently; the Company may declare that the City is in default under this Agreement and may pursue any legal remedy available to it to enforce this Agreement. ARTICLE VII TERM OF AGREEMENT Section 7.1. Term of Agreement. This Agreement shall become effective upon execution, and subject to earlier termination pursuant to the provisions of this Agreement (including particularly the following sentence and Article VI hereof), shall terminate on December 31, 2035. This Agreement shall automatically terminate upon the earlier to occur of the following: (a) the payment in full of the Bonds (or any bonds issued to refund the Bonds) and the payment of all amounts due under this Agreement; (b) the expiration of the Lease Term set forth in Section 3.2 of the Lease; or (c) the occurrence and continuance of an uncured Event of Default and the subsequent termination of this Agreement pursuant to the provisions of the Lease and this Agreement. Section 7.2 Payments in Final Year. The foregoing provisions of Section 7.1 shall not relieve the Company of its obligation to make any PILOT Payments owing during the year in which the Bonds are paid in full, to the extent the Company receives the ad valorem personal property tax abatement contemplated for that year and such PILOT Payment is due under this Agreement. ARTICLE VIII MISCELLANEOUS PROVISIONS Section 8.1. Severability. If for any reason any provision of this Agreement shall be determined to be invalid or unenforceable, the validity and enforceability of the other provisions hereof shall not be affected thereby. Section 8.2. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Missouri. Section 8.3. Execution in Counterparts. This Agreement may be executed simultaneously in several counterparts, each of which shall be deemed to be an original and all of which shall constitute but one and the same instrument. -12- Section 8.4. Waiver. The City and the Company acknowledge and agree that the amounts payable hereunder shall constitute payments due the City under the Lease executed in connection with the Bonds. The Company shall not be entitled to any extension of payment of such amounts as a result of a filing by or against the Company in any bankruptcy court. Section 8.5. Entire Agreement. This Agreement, together with the Lease, the Indenture and any other documents entered into of even date herewith in connection with the issuance of the Bonds, constitute the entire agreement of the parties with respect to the subject matter hereof. This Agreement shall not be modified except by written agreement signed on behalf of the parties hereto by their duly authorized representatives. Section 8.6. Electronic Transactions. The parties agree that the transaction described herein may be conducted and related documents may be sent, received or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 8.7. Notices. All notices, certificates or other communications required or desired to be given hereunder shall be given in the manner specified in the Indenture. Section 8.8. Employee Verification. The Company will comply with and satisfy the requirements of Section 285.530.2, RSMo., as amended, which requires (a) any business entity receiving tax abatement to, by sworn affidavit and provision of documentation, annually affirm its enrollment and participation in a federal work authorization program with respect to the employees working in connection with the business entity receiving tax abatement, and (b) every such business entity to annually sign an affidavit affirming that it does not knowingly employ any person who is an unauthorized alien in connection with the entity receiving tax abatement. The Company shall provide such affidavits and documentation to the City Clerk on or before November 15 of each year during the term of this Agreement, beginning November 15, 2023, and also upon execution of this Agreement. Section 8.9. Complete Agreement. The Company and the City understand that oral or unexecuted agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable. To protect the Company and the City from misunderstanding or disappointment, any agreements the Company and the City reach covering such matters are contained in this Agreement and in the Lease, which are the complete and exclusive statements of the agreement between the Company and the City, except as the Company and the City may later agree in writing to modify this Agreement and the Lease. Section 8.10. Anti-Discrimination Against Israel Act. Pursuant to Section 34.600 of the Revised Statutes of Missouri, the Company certifies it is not currently engaged in and shall not, for the duration of this Agreement, engage in a boycott of goods or services from (a) the State of Israel, (b) companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel or (c) persons or entities doing business in the State of Israel. -13- Section 8.11. Date of Performance Agreement. The dating of this Agreement as of February 1, 2023, is intended as and for the convenient identification of this Agreement only and is not intended to indicate that this Agreement was executed and delivered on said date, this Agreement being executed and delivered and becoming effective simultaneously with the initial issuance of the Bonds. [Remainder of this page intentionally left blank.] Performance Agreement City of Jefferson Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their respective corporate names, all as of the date first above written. CITY OF JEFFERSON, MISSOURI By: ___________________________________ Name: Carrie Tergin Title: Mayor [SEAL] ATTEST: By: ___________________________________ Name: Emily Donaldson Title: City Clerk Performance Agreement City of Jefferson Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-2 SCHOLASTIC INC., a New York corporation By: Name: Title: Performance Agreement City of Jefferson Taxable Industrial Development Revenue Bonds (Scholastic Inc. Project) Series 2023 S-3 ACKNOWLEDGMENT AND AGREEMENT The County Assessor of Cole County, Missouri, acknowledges receipt of this Agreement and agrees to perform the duties imposed on the County Assessor by Article III of this Agreement. OFFICE OF COLE COUNTY, MISSOURI ASSESSOR By: Name: Christopher Estes Title: County Assessor Exhibit A - 1 EXHIBIT A DESCRIPTION OF THE PROJECT EQUIPMENT All items of machinery, equipment and other personal property acquired pursuant to Article IV of the Lease to be installed and used on the Project Site by the Company and paid for, or reimbursed, with Bond proceeds and all additions, replacements, alterations, substitutions thereto now or hereafter effected and specifically designated by the Company. A replacement item may be included by the Company as a part of the Project Equipment under the conditions set forth in the Lease. DESCRIPTION OF THE PROJECT SITE The Project Site consists of the real property site upon which the Company’s existing facility is located (with a street address of 6336 Algoa Road, Jefferson City, Missouri 65101) where the Project Equipment will be situated and installed. Exhibit B - 1 EXHIBIT B ANNUAL COMPLIANCE REPORT Date: November ___, 20___ To: City of Jefferson, Missouri 302 E. McCarty Street Jefferson City, Missouri 65101 Jefferson City Regional Economic Partnership 630 Bolivar Street, Suite 202 Jefferson City, Missouri 65101 Attention: Missy Bonnot Email: missybonnot@jcrep.org A. COMPANY INFORMATION (SCHOLASTIC INC.) Name: ___________________________________________________________________ Address: ________________________________________________________________ City: _________________________ State: _____________ Zip Code: ________________ Contact: ___________________________________ Telephone: ____________________ Title: _______________________________________ Email: _________________________ [Remainder of this page intentionally left blank.] Exhibit B - 1 B. EMPLOYMENT INFORMATION. The number of total “Jobs” maintained by the Company at the Project Site (which includes the Company’s facilities located at: 6336 Algoa Road, Jefferson City, Missouri 65101; 2931 E McCarty, Jefferson City, Missouri 65101; and 3030 Robinson Road, Jefferson City, Missouri 65101) on the last day of each of the immediately preceding 12 months ending on October 31, 20__ (the October 31st prior to this Report) is set forth in the table on below in the column labeled “Total Jobs.” The 12-month average of the actual number of “Jobs,” which is calculated in accordance with the Performance Agreement dated as of February 1, 2023, between the Company and the City (the “Performance Agreement”), maintained by the Company at the Project Site was ________ as set forth below in the row labeled “12-Month Average of Jobs.” According to Section 3.3 of the Performance Agreement, the Company is required to maintain at least 827 Jobs Total Jobs November December January February March April May June July August September October 12-Month Average of Jobs: (1) ____________ (1) This 12-month average of the actual number of “Jobs” should be equal to or greater than 827 because the Company is required to maintain at least 827 Jobs at the Project Site in accordance with Section 3.3 of the Performance Agreement. Attached is a copy of a report verifying the above calculation containing at a minimum the following information for each Job: 1. Name or Other Employee Identification Information. 2. Hire Date. 3. Termination Date. Exhibit B - 1 C. CERTIFICATION. The undersigned hereby represents and certifies that, to the best knowledge and belief of the undersigned, this Annual Compliance Report contains no information or data, contained herein or in the exhibits or attachments, that is false or incorrect in any material respect. Dated this ___ day of ________, _______. Signature: Name: Title: Passed : ___________ _ Approved : ________ _ Pres iding Officer Mayor Carrie Tergin ATTEST: APPROVED AS TO FORM : City Clerk Editor's note: Deleted language shown t.Rtls . Added language shown thus . BILL SUMMARY BILL NO : 2022-090 SPONSOR: Councilmember Wiseman SUBJECT: Amending Chapter 16 . Article Ill, Section 16-31 of the C ity Code Related to the Commission on Human Relations. Structure of Comm ission ; Quorum ; Compensation DATE INTRODUCED : January 3 , 2023 DEPARTMENT DIRECTOR(S): (~G ~ C l .S;\'K,)f'S--- CITYADMINISTRATOR: .Jt ~ /~., '- Staff Recommendation: Approve . Summary: Amends the residency requirements for members of the Human Relations Commission by allowing up to two members to be non-residents of the City of Jefferson. Origin of Request: Mayor Tergin Department Responsible: Human Resources PERSON RESPONSIBLE: GAIL STROPE Background Information: Currently, Article Ill of the City Code states at least 8 of the 9 members of the Human Relations Comm iss ion must be residents of the City . Th is change will require at least 7 of the members of the Comm ission to be res idents of the City. This will assist in filling the current vacancies . Fiscal Information: Passing of this ordinance will have no fiscal impact. BILL NO. 202 2-090 SPONSORED BY Councilmember Wiseman ORDINANCE NO . _______ _ AN ORDINANCE AMENDING CHAPTER 16, ARTICLE Ill , SECTION 16-3 1 OF THE CITY CODE RELATED TO THE COMMISSION ON HUMAN RELATIONS - STRUCTURE OF COMMISSION ; QUORUM ; COMPENSATION. BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS: Section 1: Chapter 16 , Article Ill (City of Jefferson Commi ssion on Human Relations) of t he City Cod e is hereby amended by amending Section 16-31 (Structure of Commiss ion , Quorum, Compensation) to read as follows : A. T he Co mm iss io n s hall cons ist o f nin e me mb ers who sha ll se rve w ithou t compe nsati o n. a nd who s ha l l be broad ly re pre se nt at ive of th e re i ig io us, rae ial. edu ca ti o na I. la bo r. c ivic. com mercia l, man age me nt. ethni c. a nd gove rnm e ntal g ro up s of the community. /\II me mb ers of" th e Co mm iss io n s ha ll be a ppoi nted by the Mayor and approved by t he Co un c il. T he Mayo r. w ith a maj ority vo te o f the C it y Co unc i l. may remove a ny me mber of the Co mm iss io n for fai lur e o r in abil ity to attend meet ings, o r fo r ot her good ca use s how n. Of t he nin e me mbers, th ree membe rs sha ll be appointed for a te rm of o ne yea r, thr ee o the rs sha ll be appointed fo r a term o f t wo yea rs . a nd thr ee o th ers s ha ll be a ppo inted fo r a ter m o f" three yea rs . Th ereafter, at the e nd of the fi rs t term o f eac h o f s uc h me mbers o f th e Co mm iss io n the terms o f ap po int men t sha ll be fo r three yea r e ach. prov id ed. however. that all members sha ll cont inu e in o ffi ce unti l th e ir s uccessors sh(lll have been appo int ed and q ua lili ed. In th e eve nt o f the dea t h o r res ignat io n of a ny me mbe r, a success o r s h(l ll be a pp o inted to se r ve for the un ex pir ed term . Th e pr ov is io ns of secti o n 7-5 no tw ith stand ing, at least etg1tt-se ven of th e mem be rs sha ll be res ide nt s o r t he C ity, but a ll no n-C ity res idents s ha ll be res ide nts o f Co le County. Secti o n .f.. This Ordinance shall be in full fo rce and effe ct from and after th e date of its passa ge a nd approval. Pass ed : ---------------------------Approved : ________ _ Presiding Office r Mayor Ca rrie T erg in ATTE ST : APPROVED AS TO FORM : City Cle rk BILL SUMMARY BILL NO: 2022-091 SPONSOR: Councilmember Lester SUBJECT: Final Subdivision Plat of Emily Lane Subdivision Section Three (Planning & Zoning Commission Case No . P22016) DATE INTRODUCED: January 03. 2022 DEPARTMENT DIRECTOR(S):,--------..:,~~~:::::::.r~~~~~---- Staff Recommendation: Approve. Summary: Standard ordinance approving and accepting a final subdivision plat. Origin of Request: Property Owners through the Planning and Zoning Commission Department Responsible: Department of Planning and Protective Services PERSON RESPONSIBLE: SONNY SANDERS /Eric Barron Background Information : This proposal consists of 3.39 acres proposed to be subdivided into 3 lots zoned RA-1 High Density (Multi-Family) Residential. A cul-de-sac bulb is proposed for construction at the current dead end of Emily Lane , and the three lots would gain access via driveway connection to the cul-de-sac. The property owner has stated their intent to develop the three lots with 2 triplexes each (for a total of 6 triplexes) and a preliminary layout of that development plan is shown on the preliminary plat document. Please see the attached planning division staff report and packet for more information . Planning and Zoning Commission Review . The Planning and Zoning Commission reviewed the Preliminary Subdivision Plat and Final Subdivision Plat at their meeting of December 8, 2022. The Preliminary Plat was approved on a vote of 8 in favor and 0 against (Preliminary Plats are reviewed and approved at the Planning and Zoning Commission level). The motion to recommend approval of the Final Subdivision Plat to the City Council PASSED on a vote of 8 in favor, 0 against. Public Comment Received. No public comment has been received to date. Fiscal Information: $525.00 in application fees were received. Planning and Zoning Recommendation: Approve. BILL NO. 2022-091 SPONSORED BY Councilmember Lester ORDINANCE NO. ______ _ AN ORDINANCE OF THE CITY OF JEFFERSON , MISSOURI , ACCEPTING AND APPROVING THE FINAL SUBDIVISION PLAT OF EMILY LANE SUBDIVISION SECTION THREE , A SUBDIVISION OF THE CITY OF JEFFERSON, MISSOURI. WHEREAS, Mark and Julie Gerlach , owners of the real estate hereinafter described, having submitted to the City Council a plat of said real estate, being located in Jefferson City, Cole County , Missouri , and described as : Part of the Southwest Quarter of the Southwest Quarter of Section 8 , Township 44 North , Range 12 West in the City of Jefferson , Cole County Missouri , more particularly described as Tract A of Parcel Division Survey dated 09/03/15 and recorded in Survey Record Book B , Page 611, Cole County Records. Containing 3.39 acres ; and WHEREAS, it appears that said plat has been fully and properly signed and accepted by the owner of said subdivision , known and referred to as Emily Lane Subdivision Section Three , that all taxes have been paid, that in all respects the requirements of Chapter 445 , RSMo , entitled "Plats" have been fully complied with by the owner of said subdivision , and that in all respects the requirements of the Planning and Zoning Commission of the City of Jefferson , Missouri, relating to plats and subdivisions have been complied with . NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS : Section 1. That the Final Subdivision Plat of Emily Lane Subdivision Section Three, lying , being and situated within the corporate limits of the City of Jefferson, Missouri , as shown by the said plat attached hereto and made a part of this ordinance, is hereby approved and accepted by the City Council of the City of Jefferson , Missouri . Section ~· The Mayo r and City Clerk are hereby authorized and directed to endorse acceptance of said plat hereon and to certify approval of said plat under the City of Jefferson sea l. Section ~. This ordinance shall be in full force and effect from and after the date of its passage and approval. Passed : ______________________ _ Approved : ___________ _ Presiding Officer Mayor Carrie Tergin ATT EST: A PPROVED AS TO FORM : City Cl e rk City A~ Excerpt of Unapproved Minutes JEFFERSON CITY PLANNING AND ZONING COMMISSION December 8, 2022 COMMISSION MEMBERS PRESENT Dale Vaughan, Chair Penny Quigg, Vice Chair Gregory Butler Bunnie Trickey Cotten Emily Fretwell Shanon Hawk Hank Vogt Jacob Robinett, Alternate Randy Hoselton, Alternate COMMISSION MEMBERS ABSENT Treaka Young Tom Werdenhause, Alternate COUNCIL LIAISON PRESENT Michael Lester STAFF PRESENT Eric Barron, Planning Manager Dustin Birch, Associate City Counselor Kortney Bliss, Planner Shane Wade, Civil Engineer Lisa Dittmer, Administrative Assistant 5:15p.m. ATTENDANCE RECORD 6 of6 6 of6 3 of6 6 of6 5 of6 6 of6 6 of6 4 of6 1 of 1 5 of6 0 of 1 Guest: Paul Samson with Central Missouri Professional Services. Case No. P22016-900 Block of Emily Lane, Preliminary and Final Plat of Emily Lane Subdivision Section Three. Request filed by Mark and Julie Gerlach, property owner, for a Preliminary and Final Subdivision Plat for 3.39 acres consisting of three lots. The property is zoned RA-1 High Density Residential and is located at the terminus of Emily Lane and is described as Part of the Southwest Quarter of the Southwest Quarter of Section 8, Township 44 North, Range 12 West, in the City of Jefferson, Missouri. (Central Missouri Professional Services, Consultant). Ms. Bliss stated the applicant is requesting a preliminary and final subdivision plat for the 900 block of Emily Lane. The property is zoned RA-1 High Density Residential. The owner plans to divide the 3.39-acre property into three separate lots with each lot having connection to a proposed cul-de-sac finishing off the current dead end of Emily Lane. Paul Samson with Central Missouri Professional Services (CMPS), representing property owner Mark and Julie Gerlach, presented the case. The property owners purchased the property within the last year and are interested in developing the property for multi-family residential uses. The property was recently annexed into the city and is zoned RA-1, which matches the existing part of Emily Lane. CMPS has submitted the street improvement plans and sanitary sewer extension plans which would allow building of the cul-de-sac and the sanitary sewer mains that would serve each of the lots. Site plans will be submitted as construction goes on each lot. Mailboxes will be addressed during site plans. Mr. Wade advised there is public infrastructure in the vicinity, Emily Lane is servicing section one and two of the subdivision currently. Sidewalks exist along one side of Emily Lane, the street is being proposed to be completed and will terminate with a cul-de-sac with this proposal. The street is a 28-foot-wide street with parking allowed on one side of the roadway. Stormwater detention, stormwater quality, and erosion/sediment control will be private and part of the site development. Some clearing activity has occurred on the site, staff asks that some perimeter fencing, granular construction entrance, and any other erosion control be installed to stabilize the site for the portion that has been cleared. A land disturbance permit will also need to be completed by the property owner. The upstream drainage for the existing channel that runs along lot 24 carries over 50 acres of drainage, staff asks that there is a stream and structure setback for lot 24. Sewer main and sidewalks are being proposed to be extended to serve all of the lots. Facilities for street lights, utilities, and fire hydrants are all existing within the current subdivision and meet city standards. Ms. Bliss stated that staff recommends approval of the preliminary plat and the requested final plat with the condition that any technical corrections or comments from staff be addressed. Ms. Cotten moved and Ms. Quigg seconded a motion to approve requested preliminary plat of Emily Lane Subdivision Section Three subject to technical comments and corrections by city staff. The motion passed 8-0 with the following votes: Aye: Butler, Cotten, Fretwell, Hawk, Hoselton, Quigg, Robinett, and Vogt. Nay: None. Ms. Cotton moved and Mr. Vogt seconded a motion to recommend approval of requested final plat of Emily Lane Subdivision Section Three subject to technical comments and corrections by city staff. The motion passed 8-0 with the following votes: Aye: Butler, Cotten, Fretwell, Hawk, Hoselton, Quigg, Robinett, and Vogt. Nay: None. U:\BRockwell\AF\2001\01-014--EMILY-LANE-SUBD\PROP-BOUND-SURV-1HH.dwg, SUBDIVISION -2022, 12/9/2022 10:59:09 AM, brockwell, 1:40 SITE OLD LOHMAN ROAD / SCALE 00 18 FL- MERRY LN G,. i DENESE DR. 0 e- VILLAGE DR 7 SITE LOCATION MAP 1 inch =40 feet 0 20 40 80 120 ( Graphic Scale - Feet ) LINE TABLE L1 S42'46'47"E, 45.36' L2 N89'20'00"E, 27.50' L3 N33'12'49"E, 38.74' L4 588'35'34"W, 66.10' L5 51'24'26"E, 15.00' L6 N88'35'34"E, 52.98' L7 S0'40'00"E, 44.12' L8 512'12'37"E, 43.78' L9 S0'40'00"E, 50.96' L10 N89'20'00"E, 6.25' L11 SO'40'00"E, 250.04' L12 N89'20'00"E, 15.00' L13 NO'40'00"W, 235.53' L14 S89'20'00"W, 5.00' L15 NO'40'00"W, 180.74' L16 N89'20'00"E, 15.00' L17 S0'40'00"E, 146.10' CURVE TABLE CURVE RADIUS ARC LENGTH CHORD C1 R=50.00' L=87.53' Ch=S82'37'45"E, 76.77' C2 R=50.00' L=90.61' Ch=N4'41'46"W, 78.71' C3 R=50.00' L=83.66' Ch=S75'27'17"W, 74.24' C4 R=65.00' L=94.67' Ch=S89'42'14"E, 86.52' C5 R=65.00' L=20.00' Ch=N39'45'19"E, 19.92' C6 R=65.00' L=35.86' Ch=N15'08'10"E, 35.40' C7 R=65.00' L=20.96' Ch=N46'37'50"W, 20.87' C8 R=65.00' L=87.91' Ch=S85'23'23"W, 81.36' C9 R=215.00' L=43.32' Ch=S6'26'18"E, 43.24' C10 R=185.00' L=37.27' Ch=S6'26'18"E, 37.21' C11 R=65.00' L=41.67' Ch=N19'01'50"W, 40.96' NOTES: 1.) The Setback lines from the property lines shall be as per the City of Jefferson Zoning Code. 2.) Set 1/2" IP w/ cap at all corners unless otherwise indicated. 3.) BEARING BASE: Survey recorded in Survey Record Book 6, Page 611, Cole County Recorder's Office. 4.) RECORD SOURCE: Mark Gerlach & Julie Gerlach, 6-738, P-226, Cole County Recorder's Office. 5.) This property lies in Zone X, areas determined to be outside the 0.2% chance floodplain as shown by the Flood Insurance Rate Map, Cole County, Missouri, Map Number 29051C0109E, effective date: November 2, 2012. 6.) Except as shown or stated on this plat, this survey does not reflect any of the following which may apply to the subject property: record easements, building setbacks, restrictions, zoning or any other land use regulations or any other facts which an accurate and current title search may disclose. 7.) Land Use: High Density Residential (Zoning: RA -1) UTILITY COMPANIES SANITARY SEWER - City of Jefferson WATER SUPPLY - P.W.S.D. #1, Cole Co. ELECTRIC - Ameren GAS - Ameren TELEPHONE - Brightspeed Fd I.P. SE 1/4, SE 1/4 SEC. 7, T44N, R12W co 0 Graves Investment Co., Inc. B-735, P-424 William & Denise Thoenen B-463, P-108 1 Mrs Carolyn B B-708, P-747 • • • / '"0 0 / • • Mark & Julie Gerlach 6-738, P-226 Betty Winkleman, Trustee B-709, P-85 • • • 06. JO 0 dp \ °ON 1/3 LOT 24 1.71 ACRES N89'20'00"E 126.17' tO 0 c4 FD Pipe 0.4'S, 0.2'W 20' ROAD EASEMENT 6-231, P-469 LOT 2 CORNERSTONE SLTBDIVISION SECTION NO. 2 PB-11, P-792 NE 1/4, NE 1/4 SEC. 18, T44N, R12W 15' San Sewer Esmt. Ingress/Egress L6 Easement Ch=N2'28'43"W-50.00' R=50.00' -L=261.80' LOT 23 0.72 ACRES 25' Building Lin Easement TRACT A SRB-B, P-611 Zoned: RA -1 1.3 LO L1 6 0 0 0 0 2.50' L2 cc • • • Darlene Dunsmore, Trustee B-731, P-791 • • • • • Ch=N8743'22"E, 1.58' R=225.00', L=1.58' Cr 15' Gen. Util & San Sewer Esmt. so • • • • 43.30' 58731'17"W EMILY LANE 0.79' R=200.00' L=0.79' 12.50' co 104.28' Krista & Duane Bonnot COUNTY OF COLE Found Pipe SW Comer Section 8, T4 -4N, R12W Section Line Zoned: RS -2 Bonnot B-680, P-510 36.25' co co 0 Fd IP 15' LOT 22 0.78 ACRES Zoned: RA -1 130.16 TRACT B SRB-B, P-611 Elsa & Saavedra Valdes B-731, P-923 Fd IP 0 Sa to 0 • • Mary Allen, Trustee B-697, P-179 NN / • Alice Robertson, NN Trustee SEC. 8, T44N, R12W • TURTLE CREEK SUBD. - SECTION TWO • New Standard Properties, LLC 6-696, P-590 25' Bldg. Line, San. Sewer j/- & Gen Utility Esmt SS 17 N Ruth Elledge B-698, P-913 New Standard Properties, LLC B-696, P-590 Zoned: ss 18 LiN5 Zoned: RA -1 LO 1.6 Utility Esmt New Standard Properties, LLC B-696, P-590 16 Zoned: RA -1 / EMILY LANE SUBD. SECTION TWO New Standard Properties, LLC 3-696, P-590 15 Fd. Angle Iron Fd. Angle Iron 2.9' North RA -1 • NN NN 14 CITY OF JEFFERSON William & Keely Wise 6-402, P-974 Wise 6-402, P-974 COUNTY OF COLE COUNTY OF COLE CITY OF J.thk.PERSON Zoned: RS -2 NW 1/4, NW 1/4 SEC. 17, T441\t, R12W EMILY LANE SUBDIVISION SECTION THREE 900 BLOCK, EMILY LANE CITY OF JEFFEVSON, COUNTY OF COLE ZONED RA -1 3.39 ACRES AREA = PROPERTY BOUNDARY DESCRIPTION (From Deed Book 738, Page 226) Part of the Southwest Quarter of the Southwest Quarter of ,ection 8, Township 44 North, Range 12 West, in the City of Jefferson, Cole County, Missouri, more particularly described as Tract A of Parcel Division Survey dated 09/03/15 and recorded in Survey Record Book 13, Page 611, Cole County Records. OWNER'S CERIIHCATE Know all men by these presents that we, the undersigned, bing the owners of the tract of land described in the foregoing Property and subdivided into Three Lots, Right-of-ways and Easements and on this Boundary Description, have caused said tract to be surveyed plat the lot number and the size thereof are fully and truly set forth, and the undersigned do hereby dedicate to the public, for public use forever, all easements and right -of- ways, (not presentlY of record), as shown within the boundary of this plat, which shall be known as "EMILY LANE SUBDIVISION SECTION THREE". All taxes due and payable against said property have been paid in full. In Witness whereof, the undersigned owners of said tract have hereunto set their hands and seals this day of 2022. Mark Gerlach Julie Gerlach STATE OF MISSOURI SS COUNTY OF COLE foregoing instrument and acknowledged the same to be In Witness whereof, I have hereunto set ti er My Commission Expires: my hand and me personally did appear the their free act and deed. above signed property owners, who executed the affixed my seal this day of JERRY WAYNE MORGAN Notary Put& - Notary Seal STATE OF MISSOURI County - Cole Commission # 21860538 my Commission Expires:11/21/2025 I, the City Clerk of the City of Jefferson, County of Cd1e, State of Missouri, hereby certify that this plat was approved by the Mayor of the City of Jefferson, Missouri, by Ordinance No. Approved this day of , 20 Carrie Tergin, Mayor Emily Donaldson, City Clef.k Matthew J. Morasch, P.E. Director of Public Works Services SURVEYOR'S CERTIFICATE This is to certify that at the request of Mark Gerlach, a Property Boundary Survey and Subdivision was made under my personal direction, regarding the property shown in this plat and that the results are represented hereon. This survey was performed in accordance with the requirements of the Missouri Standards for an Urban Property Boundary Survey. In Witness whereof, I have hereunto set my seal and signature this 9th day of December, 2022. Luther W. Sanders, AICP, Director of Planning and Protective boePos IV- 2022. Document No. STATE OF MISSOURI COUNTY OF COLE Filed for record ___ day of 2022. at SS O'clock and Minutes __M., recorded in Book Page Judy K. Ridgeway, Recorder , Deputy ------------- J. Brian Rockwell, MO. PLS #2524 CENTRAL MISSOURI PROFESSIONAL SERVICES MISSOURI STATE aid IFICATE OF AUTHORITY #000355 Central Missouri Professional Services, Inc. ENGINEERING - SURVEYING - MATERIALS TESTING 2500 E. McCARTY Phone (573) 634-3455 JEFFERSON CITY, MISSOURI 65101 FAX (573) 634-8898 RD MARK GERLACH 12/09/2022 SCALE 1" = 40' BOOK CATE CKD. By PLS. SHEET JOB NO 01-014 Jefferson City Planning & Zoning Commission I December 08, 2022 Case No. P22016 900 Block of Emily Lane Mark and Julie Gerlach Preliminary and Final Subdivision Plat City of Jefferson Planning & Zoning Commission LOCATION MAP Case No. P22016 900 Block of Emily Lane 0 90 160 Preliminary and Final Subdivision Plat City of Jefferson Planning and Zoning Commission VICINITY Case No. P22016 900 Block of Emily Lane Preliminary and Final Plat 0 155 310 620 Fee t Jefferson City Planning & Zoning Commission Meeting Engineering Division Staff Report Thursday, December 8, 2022, 5:15pm Item 6. -New Business Case No. P22016 -Preliminary and Final Subdivision Plat, Emily Lane Subdivision, Section Three (3), 900 Block of Emily Lane (Existing RA-1 Zoning) ENGINEERING STAFF RECOMMENDATION- Recommend approval, subject to technical corrections being addressed on documents prior to the final plat being considered by the City Council. Preliminary Plat, Final Plat- Existing Infrastructure Summary • Public infrastructure exists in the vicinity. • Storm water facilities exist in the vicinity. • Sanitary sewer facilities exist in the vicinity. • Emily Lane is existing, serving Section 1 and 2 of this Subdivision. • Sidewalk exists along Emily Lane on one side of the street. Improvements Summary Roadway • Emily Lane has been previously constructed with Section 1 and 2 of this subdivision. The street is to be completed to serve Section 3. • The roadway will terminate with a cul-de-sac. Emily Lane is a 28' wide street, parking allowed on one side of the street. • Right-of-way for the cul-de-sac will be dedicated with this plat. • Improvement plans (sanitary sewer main extension and cul-de-sac) will have a deferred submittal (in accordance with this preliminary plat) and be reviewed in conjunction with the site development plans for the proposed Lots 22-24 Storm Water I Erosion Control • Storm water detention/ storm water quality will be considered private and be part of the site development for proposed Lots 22-24. • The proposed drainage system for the street is existing. • An erosion and sediment control plan will be needed as part of the site development plans. PLANNING STAFF REPORT JEFFERSON CITY PLANNING AND ZONING COMMISSION December 08, 2022 Case No. P220 16 -900 Block of Emily Lane, Preliminary and Final Plat of Emily LaBBe Subdivision Section Three. Request filed by Mark and Julie Gerlach, property owner, for a Preliminary and Final Subdivision Plat for 3.39 acres consisting of three lots. The property is zoned RA-1 High Density Residential and is located at the terminus of Emily Lane and is described as Part of the Southwest Quarter of the Southwest Quarter of Section 8, Township 44 North, Range 12 West, in the City of Jefferson, Missouri. (Central Missouri Professional Services, Consultant). Description of Proposal A request was filed for a Preliminary and Final Subdivision Plat for newly annexed property located at the 900 Block of Emily Lane. The proposal suggests dividing a 3.39 acre lot into three separate lots. The property is zoned RA-1 High Density Residential. The plat proposal shows three lots with each lot containing two triplexes and each lot having connection to a proposed cul-de-sac finishing off of the current dead end of Emily Lane. Preliminary and Final Plat The Preliminary and Final Subdivision Plat request details the following information for consideration: Designated Subdivision Name: Emily Lane Subdivision Section Three Total Acreage: 3.39 acres. Number of Lots: 3 proposed lots Lot Sizes: Lot 22 is proposed to be 0.78 acres, Lot 23 is proposed to be 0.72 acres, and Lot 24 is proposed to be 1.71 acres. Sidewalks: A 4' sidewalk connection is shown on the north side of the cul-de-sac. Streets: A cul-de-sac is proposed to connect to the terminus of Emily Lane and a private drive is shown located off of the proposed cul-de-sac. Utilities: Fire hydrants are shown along the water line. Water and sanitary sewer lines are shown on the plat along with 15' sanitary sewer easement and 15' general utility easement. Sufficient utility access appears to be demonstrated on the plat. Mail Service: Means of mail service is not shown on the plat. Staff Recommendation The Preliminary and Final Subdivision Plats appear to meet the requirements for subdivision plats as outlined within the Subdivision Code. The plat appears to conform with the requirements pertaining to items such as roadway connection and utility access. Staff recommends approval of the requested preliminary and final subdivision plat. Form of Motion 1. Motion to approve requested preliminary plat of Emily Lane Subdivision Section Three subject to technical comments and corrections of city staff. 2. Motion to recommend approval of requested final plat of Emily Lane Subdivision Section Three subject to technical comments and corrections of city staff. p.2 Clearing activity bas occurred onsite. An erosion/ sediment control plan needs to be implemented as soon as possible. No further land disturbing activity shall occur onsite until a plan is reviewed/ approved and erosion control is installed onsite. Perimeter sediment fencing, a granular construction entrance, and any other necessary erosion control needs to be immediately installed to stabilize the site. • A Land Disturbance Permit from MDNR, along with the associated SWPPP is needed as soon as possible, in order to establish a compliant, stabilized site. • Easements for public storm water drainage are not required (stormwater drainage will be privately maintained). • The cumulative upstream drainage area for the existing channel along proposed Lot 24 is over 50 acres of drainage. The stream setback/ and structure setback for this channel should be shown on the plat(s), where applicable. Sanitary Sewer • All proposed lots in this development are to be served by a new sanitary sewer main extension that ties to the existing main serving Section I and Section 2 of the subdivision. Sidewalk • Sidewalk is proposed along one side of Emily Lane, four feet in width. Fire Hydrants I Street Lights/ Utilities • Facilities existing within the subdivision are in accordance with City standards. • Utility easements are being dedicated with this plat. Review Status of Documents- • Except for the comments listed above in bold that need to be addressed, the plats and description/ details have all been reviewed and are generally in good order. • Technical review comments have been sent back to the consultant for consideration, and will need to be addressed prior to the final plat being considered by the City Council. City or Jefferson D•PIIrfm•nt of Pl11nnlng I. Protectlv. S.rvlc:es 320 E. McCarty Stnet Jefftlr.son City, AIO 55101 Phone:573~410 !t;plpnnlng@h!lft:ltymo. ()Ill wwwJ•ff•r.soncftymo.gov APPLICATION FOR SUBDIVISION PLAT The undersigned hereby petitions the Planning and Zoning Commission and City Council of the City of Jefferson, Missouri for the following type of subdivision: _X __ Pre liminary Plat _X __ Final Plat 1 . Name of Subdivision: Emily Lane Subdivision, Section Three 2. General location: 900 Block of Emily Lane, SW1/4, SW1/4, Sec. 8, T44N , R12W 3. ExistingfProposed zoning: RA-1, High Density Residential 4. Existing/Proposed use of the property: Existing -vacant; Proposed -Residential Duplexes 5. Size of the property in acres : 3.39 Acres 6. Total number of lots proposed: _3 _____ _ 7. Description of any variances to the Subdivision Regulations being requested (please note section number of the regulation below and attach a letter stating justification for the variance(s ): No Variances to the Subdivision Regulations are requested. 8 . Application filing fee:$ 880·00 Preliminary Plat= $500 + $5 per lot Final Plat = $350 + $5 per lot (Revised July 1, 2018) Minor Revision = $250 + $5 per lot to Preliminary Plat 9 . Si gnatures: Mark Gerlach Property Owner Name (type or print) Paul Samson, PE Engineer Name (type or print) Date J. Brian Rockwell, PLS Surveyor Name (type or print) Contact person for this application: 11/22122 Property Owner Signature Date ~ .. 11/22122 Engineer Signature d~ 11 /22/22 Surveyor Signature Date Name: Mark Gerlach Address: 1807 Valley Hi Rd . Jefferson City , MO 65109 Phone Number: 574-680-2258 Email: Gerlachconstruction@hotmail.com ----------------------------- For Staff Use Only: Attachments : _ Variance reques11etter Additional documentation Notes: ------------------------------------------------------------------------------ Individuals should contac/ the ADA Coordinator at (573) 634-6570 to request eccommodelions or alte rnative form ills as required underttra Am~Nicans with Disabilities Act. Please a/low lh rea bualness days to procass the reque/11. Page 1 of 5 1 Inch .. ISO feet oceo 100 ca.......,-. -root) .llliDlt l.)'llloSeiMclo __ .,.. ___ ... _,.. .... Cl\'tl---loolnt c...''""" :IS',-10' and -lO·. 2.)Sollft'••/apotoiCOIWI--IIdcolod. 3.)--.s.-,-~ns.-,--e.'-90•n. Colol'louolll'-·-'·'----·---ll-7la.P..22t,Colo l'louoiii'-·- S.) !:-'"T:l,.: ~ =..lC..,a;: =r-...:. .. ~ ~ ~----Cill----2. 1012. '"''-'·-·-·'*""-"""--""-..., ., ... _... __ ...., ..... Mjod .._.,_ = .:::'.=-=. =:.--..:= ':..~:::.:... --7.)~UOoo ..... ~-{ZMftr.-l) SE 1/4, SE 1/4 SEC. ?, T44lf, R121f co-lmu1ment Co .. Inc. B-735, P-424 o.•--8-731, 1'-12) NY 1/4. lf1l" 1/4 S!C, 1?, T44N, RlZII' EMILY LANE SUBDMSION SECTION THREE PART OF TJm SW 1/4 :Iff 1/4, SEC. 8, T.WN, R1211' CITY OF JEF'FBIISON, COUNTY OF COLE zoi!Pl 114-1 .AR!.t. • S.S11 ACRES owmlii'S cmn!'ICA'J'£ _,._..,.__ .......... ~MiofiiW-tiUit-ollooW-InU..~~ _, ______ ... .....,.. .... --o.o.-. ....... _ _,_.., ..... ,... ... lot_CIId ... ___ ..,...,..., .. _ ....... -..;.od • ....,_"' ........... ,.. ...... _ -... --.... --(not.......-.. ~---u..-,, ... ,..., __ .,._01 'DIJ..Y INI[ ~ S£CilOH lHRa:'. M-MCIId--opoot--'1'--polollnM ... W'--............... -ofoald--_ _. __ o...,_tNo_.,cl 2m2. -- SIXII:rtr~2. CIIXJm'Cf'CXU 5 ~~:.~~':'':::...~==-lllo-...... ____ .... .. --··---... ---...... .,.,_...,., ____ = .,_r.,r-. __ _ ~ .... QI)<CIItkofiN~ofoltff-~ofColo,SOoleof -~COI1lly-lllloplot ... ~ .... U.."-"' hCitycl.wrerwon.~byOrdlnoMceNo. ___ _ ___ .. ., to_ -----SIAI'I:f:E&aSSOIR l os COIJtl'trtTCXU 5 Flodkor __ .,., __ = « --0'-Ofld--__IL, _ .. ___ ,. __ 4 .� t t e \ \ R� \ t... •p-, \ \ ,� \\ \ \ --F-'-�"� i• �i��Noz NI rF� 'Mr JAS _ss I //I N. _ ..•-• \ \i \\I iiIii.l1;1/1/„:////,:i. ------1 _.---- -` 1 ! ///// ///1 / __:::__11:-.-_-__-_- - ! //////7///////////////////1//////, \ Sm �! / /l / / // / /�l ////////1/ . .\ ) {{/ /l //e//i //l/ / lit ,r ii/l/i//////i . \ / / k / / /LS)// T / / / / / // ///////////,/////. /l / ///1 i l' / ' / / $ / /////// /// /l//i//i/iii/ i//// I / / /�/// // / /Ir / / // / /;///////// / \� _ / ��,'-r=te/-c // /////// //i�///////l /i /pip./ 1//(/; a / i/ ///// ////////////1///' � l / ..- , r/ //�/ / //� i //////4 f rY pE1r /1/ I -o C l 6 a EMILY LANE SUBDIVISION SECTION THREE MARK GERLACH OLD LOHMAN ROAD JEFFERSON CITY, COLE COUNTY, MISSOURI I 1 I!/1\' 1 I N w a � n >4. LI 2 (1 N N5 Z P m z P3 (1) m 0 0 z •--1 m rn Central Missouri Professional Services, Inc. ENCINEEIONC - SURVEYING - NA5T81AI.S =MSG 2600 6 YeCARtY (5SJ) W-Sa5 J EFFE RSON CRY. I CS90URI 65101 (SRS) -0211 cwv.. .M...rrsr r.. 6. a.,.•... ..wm. BILL SUMMARY BILL NO: 2022-092 SPONSOR: Councilmember Fitzwater SUBJECT: An Engineering Design Contract with Bartlett and West for the Conceptual Design of the High Street Viaduct. Project No . 32183, RFSQ No. 4055 DATE INTRODUCED: January 3 , 2023 DEPARTMENT DIRECTOR(S):_--t~.at...:........;£-.:----=~l..._....:==;..__-----­ CITY ADMINISTRATOR:_4~~~/:tC::,{LJ.'4----------- Staff Recommendation: Approve . Summary: When approved , this bill will authorize a contract with, Bartlett and West in the amount of $190,500 for the Conceptual Design of the High Street Viaduct. Origin of Request: City Staff Department Responsible: Public Works PERSON RESPONSIBLE: MATIHEW J . MORASCH , P .E., David Bange , P.E. Background Information: During the development of the list of proposed projects for Sales Tax H, the replacement of the High Street Viaduct was named as a project that would be undertaken. Earlier this year, a hole formed in the deck which lead to the temporary closing of the bridge and ultimately an emergency declaration which led to a contract to repair the bridge. This contract will provide for the conceptual design of the bridge including the evaluation of a number of bridge types and possible alterations of the bridge termini and connection to the existing street network . These options will be evaluated and a final concept will be chosen which will then be the focus of additional work including hydraulics, permitting, and the development of bridge typical sections . This project is slated to be jointly shared with the County. Fiscal Information: I Account Available Required Remaining I 1 0-995-599508 $1,077,827.75 $190 ,500 .00 $887 ,327.75 BILL NO . 2022 -092 SPONSORED BY Councilmember Fitzwater ORDINANCE NO . _______ _ AN ORDINANCE OF THE CITY OF JEFFERSON , MISSOURI , AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH BARTLETT AND WEST, IN THE AMOUNT OF $190 ,500 .00 FOR THE CONCEPTUAL DESIGN OF THE HIGH STREET VIADUCT. WHEREAS, Bartlett and West has been selected as the firm best qualified to provide professional services related to the design of the High Street Viaduct. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON , MISSOURI , AS FOLLOWS: Section 1. Bartlett and West is hereby approved as the best qualified firm to provide professional services and its proposal is hereby accepted. Section ~-The Mayor and City Clerk are hereby authorized to execute an agreement with Bartlett and West for the conceptual design of the High Street Viaduct. Section ~-The agreement shall be substantially the same in form and content as that agreement attached hereto as Exhibit A. Section 1_. This Ordinance shall be in full force and effect from and after the date of its passage and approval. Passed : __________ _ Approved : _______ _ Presiding Officer Mayor Carrie Tergin ATIEST: APPROVED AS TO FORM : City Clerk FINANCE DEPARTMENT PURCHASING DIVISION SUBJECT: Bid RFSQ4055 -High Street Viaduct Public Works Department, Opened August 18 , 2022 RECOMMENDATION: Staff recommends the award of the request for qualifications, RFSQ4055 , to Bartlett and West of Jefferson City, Missouri for professional engineering and design services for the High Street Viaduct. This proposal was evaluated by a committee and awarded to the most qualified vendor. The contract amount for these services is $190,500. BIDS RECEIVED: Bartlett & West, Jefferson City, MO TWM Engineering, Columbia, MO This bid posted on Bonfire . Bid notifications were sent to 857 vendors of whi ch 42 were recommended vendors. FISCAL NOTE: Expended or Account Number Description FV 2023 Budget Encumbered Bid Amount Balance Amount High Street Viaduct, 10-995-599508 ARPA Funds $1,077,827.75 $3,352.25 $190,500.00 $883,975 .50 Bid Total $190,500.00 ATTACHMENTS-SUPPORTING DOCUMENTATION signature :4 .a r:bv.W.cb PUf aslng Agent U 12 /20/22 QrM . J E l• FERSON I RFSQ4055-07/22-High Street Viaduct Opened August 18, 2022 Scoring Summary Active Submissions Experience and Capacity and Past Record of Total Technical -------··----------- Supplier /100 pts Bartlett & West 91 TWM Engineering 89 ___ ~ompetence Capability Performance ----------------. ----------- /40 pts /30 pts /30 pts 37 27 27 38 25 26 Generated on Dec 20 , 2022 10:22 AM CST -Leigh A nn Corrigan Page 1 of 1 --- From: To: Subject: Date: Leigh Ann, Bange. Dayjd Corrigan. leigh Ann Consultant Selection for High Street Viaduct Monday, September 12, 2022 4:08:30 PM Britt Smith, Tia Griffin, and I meet and evaluated the two submittals that were received in response to the High Street Viaduct RFQ. The results of that evaluation were submitted through the Bonfire site. The result was the selection of Bartlett and West. David Bange, P ._E. City Engineer City of Jefferson 320 E. McCarty Street Jefferson City, MO 65101 Phone(573)634-6433 CITY OF JEFFERSON CONTRACT FOR PROFESSIONAL SERVICES TillS CONTRACT, made and entered into the date last executed by a party as indicated below, by and between the City of Jefferson, a municipal corporation of the State of Missouri, hereinafter referred to as "City", and Bartlett & West, Inc. hereinafter referred to as "Contractor". WITNESSETH: THAT WHEREAS, the City desires to engage the Contractor to render certain services for the design of a bridge replacement of the High Street Viaduct bridge for the City, hereinafter described in Exhibit A. WHEREAS, Contractor has made certain representations and statements to the City with respect to the provision of such services and the City has accepted said proposal to enter into a contract with the Contractor for the performance of services by the Contractor. NOW THEREFORE, for the considerations herein expressed, it is agreed by and between the City and the Contractor as follows: 1. Scope of Services. Contractor agrees to provide all supervision, labor, tools, equipment, materials and supplies for the design of the High Street Viaduct bridge replacement, as set forth in Exhibit A. In the event of a conflict between this agreement and any attached exhibits, the provisions of this agreement shall govern and prevail. 2. Payment. The City hereby agrees to pay Contractor for the work done pursuant to this contract according to the payment schedule set forth in the contract documents upon acceptance of said work by an Agent of the City of Jefferson's Public Works Department, and in accordance with the rates and/or amounts stated in the bid of Contractor dated 11/2022, which are by reference made a part hereof. No partial payment to Contractor shall operate as approval or acceptance of work done or materials furnished hereunder. No change in compensation shall be made unless there is a substantial and significant difference between the work originally contemplated by this agreement and the work actually required. The total amount for services rendered under this contract shall not exceed One Hundred Ninety Thousand Five Hundred Dollars and Zero Cents ($190,500.00). 3. Term. This contract shall commence on the date last executed by a party as indicated below. The Contractor shall perform said work in accordance with the contract documents as set forth in Exhibit A, within nine (9) months from the date last executed. 4. Federal Funds The City of Jefferson is a recipient of federal grant funds. Therefore, the grant requirements in Exhibit B shall be fully considered in preparing responses and performing work under any resulting award. 5. Additional Services. The City may add to Contractor services or delete therefrom activities of a similar nature to those set forth in Exhibit A, provided that the total cost of such work does not exceed the total cost allowance as specified in paragraph two (2) hereof. The Contractor shall undertake such changed activities only upon the direction of the City. All such directives and changes shall be in written form and approved by the City and shall be accepted and countersigned by the Contractor or its agreed representatives. 2 6. Personnel to be Provided. The Contractor represents that Contractor has or will secure at its expense all personnel required to perform the services called for under this contract by the Contractor. Such personnel shall not be employees of or have any contractual relationship with the City except as employees of the Contractor. All of the services required hereunder will be performed by the Contractor or under the Contractor's direct supervision and all personnel engaged in the work shall be fully qualified and shall be authorized under state and local law to perform such services. None of the work or services covered by this contract shall be subcontracted except as provided in Exhibit A without the written approval of the City. 7. Contractor's Responsibility for Subcontractors. It is further agreed that Contractor shall be as fully responsible to the City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons it directly employs. Contractor shall cause appropriate provisions to be inserted in all subcontracts relating to this work, to bind all subcontractors to Contractor by all the terms herein set forth, insofar as applicable to the work of subcontractors and to give Contractor the same power regarding termination of any subcontract as the City may exercise over Contractor under any provisions of this contract. Nothing contained in this contract shall create any contractual relations between any subcontractor and the City or between any subcontractors. 8. Independent Contractor. The Contractor is an independent contractor and nothing herein shall constitute or designate the Contractor or any of its employees as agents or employees of the City. 9. Benefits not Available. The Contractor shall not be entitled to any of the benefits established for the employees of the City and shall not be covered by the Workmen's Compensation Program of the City. 10. Nondiscrimination. The Contractor agrees in the performance of the contract not to discriminate on the grounds or because of race, creed, color, national origin or ancestry, sex, religion, handicap, age or political affiliation, against any employee of Contractor or applicant for employment and shall include a similar provision in all subcontracts let or awarded hereunder. 11. Illegal Immigration. Prior to commencement of the work: a. Contractor shall, by sworn affidavit and provision of documentation, affirm its enrollment and participation in a federal work authorization program with respect to the employees working in connection with the contracted services. b. Contractor shall sign an affidavit affirming that it does not knowingly employ any person who is an unauthorized alien in connection with the contracted services. c. If Contractor is a sole proprietorship, partnership, or limited partnership, Contractor shall provide proof of citizenship or lawful presence of the owner. 12. Notice to Proceed. The services of the Contractor shall commence upon execution of this Agreement, and shall be undertaken and completed in accordance with the schedule contained in Exhibit A. 13. Termination. 3 If, through any cause, the Contractor shall fail to fulfill in timely and proper manner its obligations under this contract, or if the Contractor shall violate any of the covenants, agreements, or stipulations of this contract, the City shall thereupon have the right to terminate this contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least five (5) days before the effective day of such termination. The City reserves the right to terminate this contract for convenience by giving at least fourteen ( 14) days prior written notice to Contractor, without prejudice to any other rights or remedies of the City, provide Contractor shall be entitled to payment for all work completed by Contractor through the date of termination. The Contractor may with cause terminate this contract upon 30 days prior written notice. In either such event all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the Contractor under this contract shall, at the option of the City, become its property, and the compensation for any satisfactory work completed on such documents and other materials shall be determined. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any such breach of contract by the Contractor. 14. Waiver of Breach. Failure to insist upon strict compliance with any of the terms covenants or conditions herein shall not be deemed a waiver of any such terms, covenants or conditions, nor shall any failure at one or more times be deemed a waiver or relinquishment at any other time or times by any right under the terms, covenants or conditions herein. 15. Authorship and Enforcement. Parties agree that the production of this document was the joint effort of both parties and that the contract should not be construed as having been drafted by either party. In the event that the City successfully enforces the terms of this contract through litigation, the City shall be entitled to receive, in addition to any other relief, its reasonable attorney's fees, expenses and costs. 16. Severability. If any section, subsection, sentence, or clause of this contract shall be adjudged illegal, invalid, or unenforceable, such illegality, invalidity, or unenforceability shall not affect the legality, validity, or enforceability of the contract as a whole, or of any section, subsection, sentence, clause, or attachment not so adjudged. 17. Assignment. The Contractor shall not assign any interest in this contract, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of the City thereto. Any such assignment is expressly subject to all rights and remedies of the City under this agreement, including the right to change or delete activities from the contract or to terminate the same as provided herein, and no such assignment shall require the City to give any notice to any such assignee of any actions which the City may take under this agreement, though City will attempt to so notify any such assignee. 18. Existing Data. All information, data and reports as are existing, available and necessary for the carrying out of the work, shall be furnished to the Contractor without charge by the City, and the City shall cooperate with the Contractor in every reasonable way in carrying out the scope of services. The Contractor shall not be liable for the accuracy of the information furnished by the City. 19. Confidentiality. 4 Any reports, data or similar information given to or prepared or assembled by the Contractor under this contract which the City requests to be kept as confidential shall not be made available to any individual or organization by the Contractor without prior written approval of the City. 20. Indemnity. To the fullest extent permitted by law, the Contractor will defend, indemnify and hold harmless the City, its elected and appointed officials, employees, and agents from and against any and all claims, damages, losses, and expenses including attorneys' fees arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense ( 1) is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the work itself) including the loss of use resulting therefrom and (2) is caused in whole or in part by any negligent act or omission of contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person described in this paragraph. 21. Insurance. Contractor shall provide, at its sole expense, and maintain during the term of this agreement commercial general liability insurance with a reputable, qualified, and financially sound company licensed to do business in the State of Missouri, and unless otherwise approved by the City, with a rating by Best of not less than "A," that shall protect the Contractor, the City, and the City's officials, officers, and employees from claims which may arise from operations under this agreement, whether such operations are by the Contractor, its officers, directors, employees and agents, or any subcontractors of Contractor. This liability insurance shall include, but shall not be limited to, protection against claims arising from bodily and personal injury and damage to property, resulting from all Contractor operations, products, services or use of automobiles, or construction equipment at a limit of $500,000 Each Occurrence, $3,000,000 Annual Aggregate; provided that nothing herein shall be deemed a waiver of the City's sovereign immunity. An endorsement shall be provided which states that the City is named as an additional insured and stating that the policy shall not be cancelled or materially modified so as to be out of compliance with the requirements of this section, or not renewed without 30 days advance written notice of such event being given to the City. 22. Documents. Reproducible copies of tracings and maps prepared or obtained under the terms of this contract shall be delivered upon request to and become the property of the City upon termination or completion of work. Copies of basic survey notes and sketches, charts, computations and other data prepared or obtained under this contract shall be made available, upon request, to the City without restrictions or limitations on their use. When such copies are requested, the City agrees to pay the Contractor its costs of copying and delivering same. 23. Books and Records. The Contractor and all subcontractors shall maintain all books, documents, papers, accounting records and other evidence pertaining to costs incurred in connection with this contract, and shall make such materials available at their respective offices at all reasonable times during the contract and for a period of three (3) years following completion of the contract. 5 24. Nonsolicitation. The Contractor warrants that they have not employed or retained any company or person, other than a bona fide employee working solely for the Contractor, to solicit or secure this contract, and that they have not paid or agreed to pay any company or person, other than a bona fide employee working solely for the Contractor, any fee, commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the City shall have the right to annul this contract without liability, or, in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gifts, or contingent fee. 25. Delays. That the Contractor shall not be liable for delays resulting from causes beyond the reasonable control of the Contractor; that the Contractor has made no warranties, expressed or implied, which are not expressly set forth in this contract; and that under no circumstances will the Contractor be liable for indirect or consequential damages. 26. Amendments. This contract may not be modified, changed or altered by any oral promise or statement by whosoever made; nor shall any modification of it be binding upon the City until such written modification shall have been approved in writing by an authorized officer of the City. Contractor acknowledges that the City may not be responsible for paying for changes or modifications that were not properly authorized. 27. Governing Law. The contract shall be governed by the laws of the State of Missouri. The courts of the State of Missouri shall have jurisdiction over any dispute which arises under this contract, and each of the parties shall submit and hereby consents to such courts exercise of jurisdiction. In any successful action by the City to enforce this contract, the City shall be entitled to recover its attorney's fees and expenses incurred in such action. 28. Notices. All notices required or permitted herein under and required to be in writing may be given by first class mail addressed to the following addresses. The date and delivery of any notice shall be the date falling on the second full day after the day of its mailing. If to the City: City of Jefferson Department of Law 320 East McCarty Street Jefferson City, Missouri, 65101 If to the Contractor: Bartlett & West, Inc. Todd Kempker 601 Monroe Street, Ste. 201 Jefferson City, MO 65101 [Signatures to follow on next page.} CITY OF JEFFERSON, MISSOURI Mayor Date: ---- ATTEST: C ity C lerk 6 BARTLETT & WEST, INC. Title: Date: ___ _ ATTEST: Title : EXHIBIT A PROPOSAL FOR PROFESSIONAL SERVICES FOR HIGH STREET VIADUCT REPLACEMENT A. SCOPE OF SERVICES GENERAL BACKGROUND The High Street Viaduct bridge in Jefferson City is deteriorating and needs to be replaced. As part of the bridge replacement, additional work at the bridge ends may be included. The initial phase of design is focused on developing a concept for the new bridge. This phase will include investigating multiple options to arrive at a recommended solution that considers feedback from key stakeholders. The solution will define the bridge type, size, typical section and aesthetic treatments, along with associated roadway improvements. The first phase will include a conceptual evaluation of hydraulics along with some key stakeholder meetings as better defined in the detailed scope. This phase also includes some assistance in helping the City apply for grants for the project. Subsequent phases are expected to include preliminary and final design. TASK 1-INITIAL CONCEPTS ($9,750 Lump Sum) 1.1 Collect data and prepare project base map. 1.2 Site visit to review surrounding infrastructure and potential impacts. 1.3 Develop marker-level sketch of initial concepts. 1.4 Develop initial bridge typical section options that consider bridge width, railing and lighting. 1.5 Meet with the city staff to brainstorm initial concepts and narrow down to three to move forward. TASK 2-REFINED CONCEPTS ($82,750 Lump Sum) 2.1 Refine bridge typical section. 2.2 Develop initial bridge span arrangements and types. 2.3 Develop initial roadway geometry for three chosen options. 2.4 Incorporate affects and potential restoration of Wears Creek and surrounding greens pace. 2.5 Perform high-level hydraulics on initial options to understand conceptual bridge length and impact to water surface profile. 2.6 Evaluate initial retaining wall needs to understand general location and size. 2.7 Develop concept drawing showing the new bridge and roadway construction for three options showing initial plan and profile view. 2.8 Develop order-of-magnitude level estimate for initial concepts. 2.9 Meet with the City staff to discuss three options. 2.10 Incorporate City feedback into initial concept drawings. PN 16197.212 -1-November 2022 TASK 3-STAKEHOLDER ENGAGEMENT ($4,500 Lump Sum) 3.1 Meet with State of Missouri Office of Administration to discuss initial concepts and to better understand the State's plans for changes at the capitol that could relate to traffic movements or parking areas. 3.2 Meet with St. Peters Church to present initial options, any impacts to Mulberry Street and understand concerns. 3.3 Engage the US Army Corps of Engineers to discuss impacts to Wears Creek and better understand any permitting concerns. 3.4 Engage MoDOT to understand impacts to retaining walls behind their building. 3.5 Attend Public Works Committee meeting to discuss initial alternatives and project status. TASK 4-FINAL CONCEPT ($63,500 Lump Sum) 4.1 Refine concepts based on feedback to date to finalize concepts and develop recommendation to City. 4.2 Meet with City staff to discuss recommendations and determine final concept to move forward. 4.3 Develop bridge layout, type and size for chosen concept. 4.4 Develop roadway geometry for chosen concept. 4.5 Review impacts to Wears Creek, hydraulics and restoration options for chosen concept. 4.6 Develop retaining wall sizes and locations for chosen concept. 4.7 Develop drawings to show chosen concept. Anticipated to include: 4.7.1 Overall plan view 4.7.2 Bridge typical section 4.7.3 Roadway typical section 4.7.4 Plan/profile of High Street 4.7.5 Plan/profile of Missouri Boulevard 4.7.6 Bridge elevation views 4.8 Develop cost estimate for chosen concept to be used for budget and grant purposes. 4.9 Meet with City staff to discuss chosen concept drawings and costs and obtain feedback. 4.10 Incorporate final comments from City. 4.11 Attend City Council Meeting to discuss conceptual phase. TASK 5-GRANT FUNDING (Hourly plus Expenses Not to Exceed $30,000) 5.1 Assist with finding and applying for grants as requested by the City. Depending on the chosen grants to pursue, this could include multiple grant applications. However, some more complex grant applications could exceed the funds available with this contract. These funds will not be expended without prior approval from City staff. The hourly rates and reimbursable expenses are shown in the attached fee schedule (Exhibit B). PN 16197.212 -2-November 2022 B. CLIENT'S RESPONSIBILITY 1. Make available to the Consultant all records, survey plats, warranty deeds, survey, reports, maps, financial information, and other data pertinent to provisions for the services required under this contract. 2. Examine all plans, specifications and other documents submitted by the Consultant and render decisions promptly to prevent delay to the Consultant. 3. Designate one employee as the City's representative with respect to all services to be rendered under this agreement. This individual shall have the authority to transmit instructions, receive information and to interpret and define the CLIENT's policies and decisions pertinent to Consultant's services. 4. Perform all topographic, boundary and utility surveys for the project. C. TIME FOR COMPLETION 1. Notice to Proceed: January 2, 2023 (Anticipated) 2. Initial Brainstorming Meeting: January 20, 2023 3. Survey by City: March 3, 2023 4. Refined Concepts: May 8, 2023 5. Final Concept: July 24, 2023 D. SUMMARY OF COSTS TASK 1: INITIAL CONCEPTS (Lump Sum) TASK 2: REFINED CONCEPTS (Lump Sum) TASK3: STAKEHOLDERENGAGEMENT (Lump Sum) TASK 4: FINAL CONCEPT (Lump Sum) TASKS: GRANTFUNDING (Hourly plus Expenses Not-to-Exceed) TOTAL NOT-TO-EXCEED PN 16197.212 -3- $9,750 $82,750 $4,500 $63,500 $30,000 $190,500 November 2022 EXHIBIT B-FEDERAL CLAUSES The City of Jefferson is a recipient federal grant funds through the American Rescue Plan Act of 2021. Therefore, the following requirements shall be fully considered in preparing responses and performing work under any resulting award. Access to Records Vendor agrees to provide the City, the Federal Government, and any applicable Federal Administrator, Director, the Comptroller General of the United States, or any of their authorized representative's access to any books, docun1ents, papers, and records of the Vendor which are directly pet1inent to this contract for the purposes of n1aking audits, exatninations, excerpts, and transcriptions. The Vendor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. Nothing contained herein shall be construed as intending to litnit or prohibit audits or internal reviews by Federal personnel or the Comptroller General of the United States. Retention Requirements for Records The contractor shall retain financial records, supporting documents, statistical records and all other records pertinent to the financial assistance agreement for a period of three years starting from the date of submission of the final payment request. Authorized representatives of federal awarding agencies, the Federal Inspectors General, the Comptroller General of the United States, the City or any of their designees shall have access to any pertinent books, documents, and records of contractor in order to conduct audits or examinations. The contractor agrees to allow monitoring and auditing by the City and/or authorized representative. If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the three-year period, the contractor shall retain records until all litigations, claims or audit findings involving the records have been resolved and final action taken. Breach of Contract 1. In the event of material breach of the contractual obligations by the contractor, the City may cancel the contract. At its sole discretion, the City may give the contractor an opportunity to cure the breach or to explain how the breach will be cured. The actual cure must be completed within no more than 1 0 working days from notification, or at a minimum the contractor must provide the City within 1 0 working days from notification a written plan detailing how the contractor intends to cure the breach. 2. If the contractor fails to cure the breach or if circumstances demand immediate action, the City will issue a notice of cancellation terminating the contract immediately. If it is determined the City improperly cancelled the contract, such cancellation shall be deemed a termination for convenience in accordance with the contract. 3. If the City cancels the contract for breach, the City reserves the right to obtain the equipment, supplies, and/or services to be provided pursuant to the contract from other sources and upon such terms and in such manner as the City deems appropriate and charge the contractor for any additional costs incurred thereby. 4. The contractor understands and agrees that funds required to fund the contract must be appropriated by the General Assembly of the State of Missouri for each fiscal year included within the contract period. The contract shall not be binding upon the City for any period in which funds have not been appropriated, and the City shall not be liable for any costs associated with termination caused by lack of appropriations. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) Each contractor certifies to the tier above by completing the Certification Regarding Lobbying form, that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of the City, an agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Clean Air Act (42 U.S.C. 7401-7671q.) and Federal Water Pollution Control Act (33 u.s.c. 1251-1387) The contractor must comply with the Federal Clean Air Act (42 U.S.C. 7401 -7671q), as amended, and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended. Failure to abide by these laws is sufficient grounds to cancel the agreement. By agreeing to this agreement, the contractor certifies that the contractor, its board of directors and principals are following these specific federal laws. Further, the contractor shall report to the City any instance in which the contractor or any member of its board of directors or principals is determined by any administrative agency or by any court in connection with any judicial proceeding to be in noncompliance with any of these specific federal laws. Such report shall be submitted within ten (1 0) working days following such determination. Failure to comply with the reporting requirement may be grounds for termination of this agreement or suspension or debarment of the contractor. Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708) 1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which they are employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (b) ( 1) of this section the contractor and any subcontractor responsible there for shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (b) ( 1) of this section, in the sum of $1 0 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (b) ( 1) of this section. 3. Withholding for unpaid wages and liquidated damages. The contractor shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b )(2) of this section. 4. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (b) ( 1) through ( 4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (b) ( 1) through ( 4) of this section. 5. The contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. The records to be maintained under this paragraph shall be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the City and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 6. Contracts for construction, alteration, and repair, including painting and decorating, must provide that no contractor or subcontractor contracting for any part of the contract work shall require any laborer or mechanic employed in the performance of the contract to work in surroundings or under working conditions that are unsanitary, hazardous, or dangerous to health or safety, as established under construction safety and health standards the Secretary of Labor prescribes by regulation based on proceedings pursuant to section 553 of title 5, provided that the proceedings include a hearing similar in nature to that authorized by section 553 oftitle 5. Debarment and Suspension (Executive Orders 12549 and 12689) A contract award will not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines, 2 CFR 180. SAM exclusions contain the names of parties debarred, suspended or otherwise excluded by agencies as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Equal Employment Opportunity During the performance of this contract, the contractor agrees as follows: 1. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, City that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. 3. The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information. 4. The contractor will send to each labor union or representative of workers with which they have a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 6. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. 7. In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 8. The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each contractor or subcontractor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a contractor or subcontractor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States. Procurement of Recovered Materials The contractor must comply with section 6002 of the Solid Waste Disposal Acts as amended by the Resources Conservation and Recovery Act. The requirements of this section include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 24 7 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $1 0,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Rights to Inventions Made Under a Contract or Agreement (37 CFR Part 401) If the contractor produces subject matter, which is or may be patentable in the course of work sponsored by this agreement, the contractor shall promptly and fully disclose such subject matter in writing to the City. In the event that the contractor fails or declines to file Letters of Patent or to recognize patentable subject matter, the City reserves the right to file the same. The City grants to the contractor the opportunity to acquire an exclusive license, including the right to sublicense, with a royalty consideration paid to the City. Payment of royalties by contractor to the City will be addressed in a separate royalty agreement. Termination 1. Termination for Cause. The City may terminate this agreement, in whole or in part, at any time before the date of completion whenever it is determined that the contractor has failed to comply with the terms and conditions of the agreement. The City shall promptly notify the contractor in writing of such a determination and the reasons for the termination, together with the effective date. The City reserves the right to withhold all or a portion of funds if the contractor violates any term or condition of this agreement. Termination for cause may be considered for evaluating future agreements. The contractor may object to terminations with cause and may provide information and documentation challenging the termination. 2. Termination for Convenience. Both the City and the contractor may terminate the agreement, in whole or in part, when both parties agree that the continuation of the project would not produce beneficial results commensurate with the further expenditure of funds. 3. The City reserves the right to terminate the contract at any time, for the convenience of the State of Missouri, without penalty or recourse, by giving written notice to the contractor at least thirty (30) calendar days prior to the effective date of such termination. The contractor shall be entitled to receive compensation for services and/or supplies delivered to and accepted by the City pursuant to the contract prior to the effective date of termination. Domestic Preference for Procurements As appropriate, and to the extent consistent with law (including 2 C.F.R. §200.322), the contractor should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products~ or materials produced in the United States. This includes, but is not limited to iron, aluminum, steel, cetnent, and other n1anufactured products. Prohibition on certain telecommunications and video surveillance services or equipment Contractors are prohibited from obligating or expending project funds to: 1. Procure or obtain; 2. Extend or renew a contract to procure or obtain; or 3. Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities). a. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities). b. Telecommunications or video surveillance services provided by such entities or using such equipment. c, Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country. 4. In implementing the prohibition under Public Law 115-232, section 889, subsection (f), paragraph ( 1 ), heads of executive agencies administering loan, grant, or subsidy programs shall prioritize available funding and technical support to assist affected businesses, institutions and organizations as is reasonably necessary for those affected entities to transition from covered communications equipment and services, to procure replacement equipment and services, and to ensure that communications service to users and customers is sustained. 5. See Public Law 115-232, section 889 for additional information. 6. See also§ 200.471. Disadvantaged Business Enterprise Statement Contractors bidding on City contracts funded in whole or in part by assistance from a federal agency shall take the following affirmative steps to assure that small, woman owned, and minority businesses are utilized when possible as sources of supplies, services and construction items. a. Contractors will submit the name and other information, if any, about their DBE sub- contractors along with their bid submissions. b. Sufficient and reasonable efforts will be made to use qualified DBE sub-contractors when possible on City contracts. c. Qualified small, woman owned, and minority businesses will be included on solicitation lists as sub-contractors for City supplies, services, and construction. d. Qualified small, woman owned, and minority businesses will be solicited whenever they are potential sources. e. When economically feasible, contractors will divide total requirements into smaller tasks or quantities so as to permit maximum small, woman owned, and minority business participation. f. Where the requirements permit, contractors will establish delivery schedules which will encourage participation by small, woman owned and minority businesses. Contractors will use the services and assistance of the Small Business Administration, the Office of Equal Opportunity, and the Community Services Administration. RESOLUTION SUMMARY RESOLUTION NO RS2022-40 SPONSOR: Councilmember Fitzwater SUBJECT: Approving an Application for a Transportation Alternatives Program (TAP) Grant for the Greenway Trail from St. Louis Rd. to Riverside Park DATE INTRODUCED: January 17. 2023 Staff Recommendation: Approve. Origin of Request: Public Works Department Responsible: Engineering PERSON RESPONSIBLE: MATIHEW MORASCH, P.E./David Bange, P .E. Background Information: The City desires to apply for a Transportation Alternatives Program (TAP) grant which is offered through the Missouri Department of Transportation . The focus of this grant is on projects that support non-motorized transportation including walking and cycling. If selected, the City will use this grant to fund the construction of a multi- use trail extending from the intersection of E. McCarty Street at St. Louis Road along and across Boggs Creek and into the eastern side of Riverside Park. This connection was shown in the 2007 Jefferson City Greenway Trails Master Plan and in the 2016 CAMPO Pedestrian and Bicycle Plan . Fiscal Information: The application does not obligate the City to accept the grant funds if selected and therefore this resolution has no fiscal impact. However, the grant does require a 20% match so if selected, and subsequently accepted, the City could receive up to $500 ,000 in grant funds while needing to provide $125,000 in matching funds and any additional funds needed to complete the project. Matching and other necessary funds would come from Parks sales tax funds. Resolution Terms: The resolution would authorize the City to apply for a Transportation Alternatives Program (TAP) grant. RESOLUTION RS2022-40 Sponsor: Councilmember Fitzwater A RESOLUTION AUTHORIZING THE CITY OF JEFFERSON TO APPLY FOR A TRANSPORTATION ALTERNATIVES PROGRAM (TAP) GRANT WHEREAS, the City of Jefferson has the opportunity to apply for the Transportation Alternatives Program Grant; and WHEREAS, the purpose of the grant is for the construction of a multi-use trail extending from the E . McCarty Street and St. Louis Road intersection along and across Boggs Creek and into the eastern side of Riverside Park ; and WHEREAS, the grant, if awarded , would provide up to $500 ,000 for the City for the purpose stated above ; and WHEREAS, the grant would require the City to match these funds at 20%; and WHEREAS, receiving said grant would benefit the City. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Jefferson City, Missouri supports and authorizes the City Administrator, or his designee to execute and submit the necessary application to obtain funding for the Transportation Alternatives Program Grant. Adopted this 17th day of January, 2023 Mayor Carrie Tergin ATTEST : APPROVED AS TO FORM : City Clerk Ci~ RESOLUTION SUMMARY RESOLUTION NO: RS2022-41 SPONSOR: Councilmember Fitzwater SUBJECT: Approving an Application for a Transportation Alternatives Program (TAP) Grant for Pedestrian Accommodations along Stadium Blvd . from JCMG to Lynnwood Dr. DATE INTRODUCED: January 17 , 2023 DEPARTMENT DIRECTOR(S) =-~~=.!.7''-;->---'-----!<..:~-ii=~-------- C ITY ADMINISTRATOR:___.. ____ ___.___::;__....::....._.=....r--r----------- Staff Recommendation: Approve . Origin of Request: Public Works Department Responsible: Engineering PERSON RESPONSIBLE: MATIHEW MORASCH , P.E./David Bange , P .E. Background Information: The City desires to apply for a Transportation Alternatives Program (TAP) grant which is offered through the Missouri Department of Transportation . The focus of this grant is on projects that support non-motorized transportation including walking and cycling. If selected , the City will use this grant to fund the construction of a multi- use trail and sidewalks along Stadium Boulevard in conjunction with improvements to Stadium Boulevard and the Stadium Boulevard and Satinwood intersection. Fiscal Information : The app lication does not obligate the City to accept the grant funds if selected and therefore this resolution has no fiscal impact. However, the grant does require a 20% match so if selected, and subsequently accepted, the City could receive up to $500,000 in grant funds while needing to provide a $125,000 in matching funds and any additional funds needed to complete the project. Matching and other necessary funds would come from the allotment of funds within the City/County category of the Capital Improvements Sales Tax. Resolution Terms: The resolution would authorize the City to apply for a Transportation Alternatives Program (TAP) grant. RESOLUTION RS2022-41 Sponsor: Councilmember Fitzwater A RESOLUTION AUTHORIZING THE CITY OF JEFFERSON TO APPLY FOR A TRANSPORTATION ALTERNATIVES PROGRAM (TAP) GRANT WHEREAS, the City of Jefferson has the opportunity to apply for the Transportation Alternatives Program Grant; and WHEREAS , the purpose of the grant is for the construction of a multi-use trail and sidewalks along Stadium Boulevard in conjunction with improvements to Stadium Boulevard and the Stadium Boulevard and Satinwood intersection ; and WHEREAS, the grant, if awarded , would provide up to $500 ,000 for the City for the purpose stated above ; and WHEREAS, the grant would require the City to match these funds at 20 %; and WHEREAS, receiving said grant would benefit the City. NOW, THEREFORE, BE IT RESOLVED, that the City Council of Jefferson City, Missouri supports and authorizes the City Administrator, or his designee to execute and submit the necessary application to obtain funding for the Transportation Alternatives Program Grant. Adopted this 171h day of January , 2023 Mayor Carrie Tergin ATTEST : APPROVED AS TO FORM : City Clerk City~