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10-27-2025 City Council Meeting October 27, 2025 7:00 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Call to Order The Fridley City Council (Council) requests that all attendees silence cell phones during the meeting. A paper copy of the Agenda is at the back of the Council Chambers. A paper copy of the entire Agenda packet is at the podium. The Agenda and all related FridleyMN.gov/1564/Agenda- Center. Pledge of Allegiance Proclamations/Presentations Proposed Consent Agenda The following items are considered to be routine by the Council and will be approved by one motion. There will be no discussion of these items unless a Councilmember requests, at which time that item may be moved to the Regular Agenda. Meeting Minutes 1.Approve the Minutes from the City Council Meeting of October 13, 2025 2.Receive the Minutes from the City Council Conference Meeting of October 13, 2025 3.Receive the Minutes from the Environmental Quality and Energy Commission (EQEC) Meeting of August 12, 2025 New Business 4.Resolution No. 2025-142, Approving Gifts, Donations and Sponsorships Received Between September 13, 2025, and October 17, 2025 5.Resolution No. 2025-143, Designating City Council Meeting Dates for 2026 6.Resolution No. 2025-144, Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $2,938,350 General Obligation Water Revenue Note of 2025A, Providing for its Issuance and Authorizing Executionof a Bond Purchase and Project Loan Agreement 7.Resolution No. 2025-145,Authorizing the City of Fridley to Enter into a Contract with MetLife to Provide Short-Term Disability, Long-Term Disability, Life Insurance, and a Private Plan for Minnesota Paid Family and Medical Leave Coverage for City Employees 8.Ordinance No. 1434, Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions and Subdivision Procedures (Second Reading) 2 City Council Meeting 10/27/2025 Agenda Page 2 Claims 9. Resolution No. 2025-141, Approving Claims for the Period Ending October 22, 2025 Open Forum The Open Forum allows the public to address the Council on subjects that are not on the Regular Agenda. The Council may take action, reply, or give direction to staff. Please limit your comments to five minutes or less. Regular Agenda The following items are proposed for the Council's consideration. All items will have a presentation from City staff, are discussed, and considered for approval by separate motions. Old Business New Business 10. Resolution No. 2025-140, Approving Water, Sanitary Sewer, Storm Water and Solid Waste Abatement Charges and Rates for the Year 2026 Informal Status Reports Adjournment Accessibility Notice: !If you need free interpretation or translation assistance, please contact City staff. !Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad. !Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov neeg ua hauj lwm. !Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha Magaalada. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact CityClerk@FridleyMN.gov or (763) 572-3450. 3 Jufn!2/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City Council Submitted By:Beth Kondrick, Deputy City Clerk Title Approve the Minutes from the City Council Meeting ofOctober 13, 2025 Background Attached are the minutes from the City Council meeting of October 13,2025. Financial Impact None. Recommendation Staff recommend the approval of the minutes from the City Council meeting of October13,2025. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship X Organizational Excellence Attachments and Other Resources Minutes from the City Council Meeting of October 13,2025 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 4 Jufn!2/ City Council Meeting October 13,2025 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Mayor Ostwaldcalled the City Council Meeting of October 13,2025, to order at 7:00 p.m. Present Mayor Dave Ostwald Councilmember Patrick Vescio Councilmember Ryan Evanson Councilmember Luke Cardona Councilmember Ann Bolkcom Absent Others Present Walter Wysopal, City Manager Sarah Sonsalla, City Attorney Rachel Workin, Environmental Planner Joe Starks, Finance Director Brandon Brodhag, Assistant City Engineer Stacy Stromberg, Assistant Community Development and HRA Director Jim Kosluchar, Public Works Director Pledge Of Allegiance Proclamations/Presentations 1.Proclamation for Acknowledging the Exceptional Donation by James Noddin, Eagle Scout Candidate, for Picnic Tables at Springbrook Nature Center Mayor Ostwaldpresented the proclamation acknowledging the exceptional donation of picnic tables at Springbrook Nature Center from Eagle Scout Candidate James Noddin. 2.Presentation of GreenStep Cities Step 5 Award Rachel Workin, Environmental Planner,presented the GreenStep Cities Step 5 Award. Approval of Proposed Consent Agenda 5 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 2 Motion made by CouncilmemberBolkcomto adopt the proposed Consent Agenda.Seconded by Councilmember Cardona. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Approval/Receipt of Minutes 3.!Approve the Minutes from the City Council Meeting of September 22, 2025. 4.!Receive the Minutes from the Council Conference Meeting of September 22, 2025. 5.!Receive the Minutes from the Planning Commission Meeting of September 17, 2025. 6.!Receive the Minutes from the HRA Commission Meeting of September 4, 2025. New Business 7. Resolution No. 2025-122, Accepting the 2025 City of Fridley Flock Camera Grant Agreement Between the City and Cielo Apartments. 8. Resolution No 2025-123, Adopting the Assessment for 2025 Utility and Driveway Lateral Repair Projects. 9. Resolution No. 2025-124, Certifying Certain Delinquent Utility Services and Other Unpaid Charges for Collection with 2026 Property Taxes. 10. Resolution No. 2025-125, Accepting and Confirming Statutory Tort Limits. 11. Resolution No. 2025-129, Approving a SCORE Grant Agreement with Anoka County for the Residential Recycling Program. 12. Resolution No. 2025-130, Approving an Amendment to the Contract for Recycling Collection with Allied Waste Services. 13. Resolution No. 2025-131, Approving an Amendment to the Contract for Organics Collection with Allied Waste Services. 14. Resolution No. 2025-135, Approving and Authorizing Entering into a Memorandum of Understanding with Patrol Officers (Local #119) for the City of Fridley Public Safety Department. 15. Resolution No. 2025-138, Approving Interim Use Permit, IUP #25-02 for a Temporary Outdoor Storage Container at 7490 Central Avenue NE (Ward 2). 16. Resolution No. 2025-137, Adopting the Assessment for 2025 Tree Removals. 6 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 3 Claims 17. Resolution No. 2025-136, Approving Claims for the Period Ending October 8, 2025. Open Forum, Visitors: (Consideration of Items not on Agenda 15 minutes.) No one from the audience spoke. Adoption of Regular Agenda Mayor Ostwald noted that Item 21 was listed as a public hearing, but should actually be moved under New Business. Motion made by Councilmember Evanson to adopt the regular agenda as amended. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Regular Agenda Public Hearing(s) 18. Public Hearing and Resolution No. 2025-126, Adopting the Assessment for 2025 Street Rehabilitation Project No. ST-2025-01 Joe Starks, Finance Director, noted that this public hearing related to the pavement improvements, while traffic calming improvements will be addressed under the next agenda item. He provided background information on special assessments. Motion made by Councilmember Evanson to open the public hearing. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Mr. Starks continued to provide information related to the special assessment process, noting that thas not received any objections related to the proposed assessment. Brandon Brodhag, Assistant City Engineer, provided a summary of the work that was completed for improvement project ST-2025-01. Mr. Starks reviewed the proposed assessment information for the residential properties within the project area, along with related project costs. He recommended that the Council complete the public hearing and consider adoption of the resolution as presented. Mayor Ostwald invited public comments. 7 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 4 Steve MacInthune, 5502 W. Danube Road, asked for information on prepayment.Mr. Starks stated that one prepayment can be made and provided details on that process. Roman Zownirowycz, 5527 E Danube Road, asked why residents have to pay for street assessments. He appreciated that the road was left open for traffic in one direction during construction, but believed signage could have been improved. Mayor Ostwald explained the assessment process. Rachel Cagle, 5643, N Danube Road, commented on a lack of oversight throughout this process and what she viewed as a lack of public engagement. Carl Britebirth, 5477 E Danube Road, provided positive feedback on the contractors who completed the work. He asked if there would be a warranty on the concrete and grass work. Mayor Ostwald encouraged residents to reach out to staff with any issues. Mr. Brodhag replied that there is a two- year warranty on the concrete. Mr. MacInthune asked who residents would report restoration issues to and commented that the City staff who were onsite were very responsive. Mayor Ostwald identified the staff member who can discuss those restoration concerns. Patricia Freeburg, 5557 E Danube Road, commented that the workers were pleasant but often offered more than could be delivered. She provided input on drainage issues she believed were not addressed, and did not believe the speed humps provide any benefit. She commented that the Danube streets were never meant to handle through traffic. She was not satisfied with the results of the project. Mr. Brodhag replied that they did address drainage issues to the extent possible while working with the grade of the road. Jennifer Mulvahill, 5601 N Danube Road, believed that the two private schools should also contribute to the project costs because of their use of the roads. She stated that the residents wanted the road to be dead-ended rather than the speed humps. Jessica Hodge, 5575 W Danube Road, expressed concern with the quality of the work that has been completed, and that the residents have to contribute to the cost of that work. She provided input on the poor look of the concrete work and grass restoration. Mayor Ostwald explained that at the beginning of this process, the City explained how much higher the cost would have been to replace all the concrete and the high cost that would be assessed to residents, which is why the patch method was chosen. Dianne Muvahill, 5601 N Danube, commented that the workers did a nice job, in her opinion, in the area near her home. She agreed that the residents would have preferred a dead-end rather than speed bumps. She believed that the process could be improved by obtaining more input from residents on the front end of a project. Mayor Ostwald noted that the process typically begins one year ahead of a project and asked staff to provide input on that process. Mr. Brodhag stated that the process began in June of 2024 with an open house and reviewed the timeline of the project and related meetings with residents. 8 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 5 Councilmember Bolkcom asked if the neighborhood could work with public safety related to the traffic and speed concerns, while recognizing that this is a public street. Wally Wysopal, City Manager, confirmed that the City does work with neighborhoods in an attempt to address issues such as traffic volumes and speeds. Sarah Sonsalla, City Attorney, provided more specific information on how properties can be assessed for a project in response to the resident comment related to the private school properties. Motion made by Councilmember Evanson to close the public hearing, Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Councilmember Evanson noted the questions related to the quality of the work and advised that there is a two-year warranty on the concrete work, and grass restoration issues should be directed to City staff. He recognized that drainage issues were resolved to the extent possible, and additional concerns should be directed to City staff. He referenced the cost for the improvements and noted that the City contributed a larger proportion of the cost because of the cost for concrete work, noting that about two-thirds of the project cost was funded by the City. He thanked the residents for the input related to improved communications, signage, and engagement. Councilmember Bolkcom reiterated that residents can reach out to City staff with any ongoing concerns. She stated that public safety can continue to work with the residents to address concerns with traffic volume and speed. Motion made by Councilmember Evanson to adopt Resolution No. 2025-126, Adopting the Assessment for 2025 Street Rehabilitation Project No. ST-2025-01. Seconded by Councilmember Vescio. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. 19. Public Hearing and Resolution No. 2025-127, Adopting the Assessment for 2025 East Danube Traffic Calming Project No. ST-2025-02 Motion made by Councilmember Evanson to open the public hearing. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Mr. Starks presented information on the special assessment process, noting that to date, no written Mr. Brodhag presented a summary of the traffic calming improvements, and the evaluation of the traffic occurred following the project. Mr. Starks provided more specific information on the proposed assessment roll. He recommended that the Council complete the public hearing and consider approving the resolution as presented. 9 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 6 Councilmember Vescio asked if the height of the speed humps was chosen to protect vehicles and activities like plowing. Mr. Brodhag confirmed that, for safety reasons and road maintenance, that height was chosen. Councilmember Bolkcom asked if the height of the speed bumps is similar to other areas. Mr. Brodhag confirmed that similar height humps were added to Channel Road in a previous project. Mayor Ostwald welcomed public comment. Megan Herndorf, 5467 E Danube Road, commented that while she is satisfied with the road project, the speed bumps are wildly inadequate, noting a height of 2.5 inches, while speed bumps in a neighboring community are 3.5 inches. She stated that one additional inch in height would be enough to slow vehicle speeds. Mr. Brodhag commented that staff will verify the height of the speed humps as the bid specified three inches. Boyd Herndorf, 5467 E Danube Road, provided additional information on the measurements for the speed hump. He noted that because the run-up is so long, it does not have the intended purpose of slowing traffic. Mr. Brodhag confirmed that staff will follow up to ensure the specifications were met. Mrs. Herndorf did not believe that the assessment should be approved until this is resolved. Jennifer Mulvahill, 5601 N Danube Road, referenced the traffic evaluation data and did not believe that it was accurate. She stated that the posted speed limit was noted as 30 mph, but residents paid for and installed two 15 mph speed limit signs. Mr. Brodhag stated that the statutory speed limit remains at 30 mph, and the signs posted at 15 mph are just advisory signs. He noted that the cost for the signs was split 50/50 between the City and the assessment. Patricia Freeburg, 5557 E Danube Road, noted the comments that were made by residents during the previous public hearing as well. She stated that residents assumed that the improvement would be speed bumps rather than speed humps. She believed the speed humps were worthless and the City should have just not added this to the project. Councilmember Bolkcom asked if six-inch speed bumps would even be feasible. Mr. Brodhag stated that six-inch speed bumps would not be feasible for traffic or street maintenance. He explained that the speed humps have reduced the speed and traffic volumes, as shown in the evaluation data. Ms. Mulvahill commented that she believed that the data is not accurate, as she believed the times and dates were not comparable for pre- and post-construction. She stated that every single vehicle was exceeding the 15 mph posted speed limit. Mr. Brodhag noted the dates that were observed pre- and post-construction and explained the data collection process. Jacob Affolt, 5457 E Danube Road, commented that the speed humps are inadequate, noting that his children cannot play in his front yard or driveway because of the concern for safety with passing vehicles. He commented that neighboring communities have six-inch speed bumps and, therefore, Fridley should be able to as well. He commented that the post-construction data was most likely : Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 7 impacted by vehicles choosing not togo down that route because of the construction. He stated that he would be happy contributing towards the cost of the improvement if it were adequate, but it is not. Mayor Ostwald asked if this would still meet the requirements for Anoka County if this were tabled tonight. Mr. Starks replied that if this were tabled tonight, they would not meet the requirement for the tax rolls in 2026, and that would be delayed to 2027. He confirmed that because of the low cost of the improvement, this would not impact the City funds if the assessment approval were delayed. Mr. Wysopal asked if the petition included a definition of the speed humps and whether the improvement was built to the promised specifications. Mr. Brodhag stated that different options were discussed with the residents at the open house, including speed humps and other traffic calming measures. Councilmember Bolkcom noted that the street improvement and traffic calming measures could be split apart from each other. Mr. Starks noted that the total project cost for the traffic calming measures was $27,763.15, with $13,855 levied in special assessments. Mr. Wysopal explained that if the element was built as proposed, and that did not meet the satisfaction of residents, he was unsure whether the height would meet resident standards and how they would determine that. Councilmember Evanson recognized that traffic patterns may have changed to avoid construction, and perhaps there should be a future evaluation to determine if the traffic volume and speed have been impacted as desired. Councilmember Vescio agreed that an ongoing follow-up evaluation would be beneficial. Rick Schroder, 5497 E Danube Road, stated that he supports ongoing evaluation to provide more data. He asked for input from engineering on the cost estimate for the project. Mr. Brodhag stated that he can follow up with those specifics and noted some of the project cost categories. Councilmember Cardona stated that he would like verification that the speed humps were constructed to three inches. He stated that he would be okay approving this tonight with the knowledge that if there is work needed on the humps after measurements are confirmed, the City would address that. Mr. Brodhag provided additional input, noting that if additional traffic calming measures were needed, that would be at the cost of the City. He provided additional information on traffic calming and noted that Google Maps has been updated to remove Danube from the route. He noted that there was constant traffic throughout the day from 8 a.m. to 5 p.m., and therefore, they think the additional traffic is the general public and not specific to the schools. A resident noted that Google is still showing Danube as closed, which may have resulted in the lower traffic counts. Mr. Herndorf commented on the cut-through traffic and spoke about additional factors that have an impact on traffic, such as the hills and winter road conditions. 21 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 8 Scott Vonderhaar,5547 E Danube Road, stated that there has been a lot of discussion about the three inches but noted the impact of rise over run as well. He commented that, depending on the time of day, the speed humps blend into the roadway as the black paint has already faded to grey. He commented that even if the humps are structurally effective, they do not stand out in appearance. Mayor Ostwald asked why the paint is not yellow, as that would make people more hesitant. Mr. Brodhag replied that standard pavement markings were used. Councilmember Evanson asked if the paint color could be changed. Mr. Brodhag replied that it is the minimum standard and therefore could be reviewed by staff. Mr. Wysopal appreciated the debate, noting that there was discussion to begin this process, which led to a feasibility study and the construction of the traffic calming improvement as designed. He stated that staff will verify that the three inches were constructed. He stated that the speed hump is identical to what was constructed on Channel Road, but recognized that it can be hard for residents to know what it will look like until it is constructed. He stated that if the improvement is not working as designed, City staff would continue to work with the residents, but he was concerned that without knowing the desired end result, it would be hard to agree to continued improvements. He asked the Council to take action on the item that was built as promised. He noted that other City funds were used towards this project and did not want to continue to spend funds on a moving target as he did not believe the ultimate desire of some who live on the street would ever be reached. He stated that the City built the project they said they would and has committed to reviewing this to determine what else could be done, such as paint color changes. Councilmember Bolkcom recognized that staff recommends that the Council should move forward as the project was built as designed, recognizing that staff can continue to work with residents on potential future changes. Mr. Wysopal stated that if the project was not built to the three-inch requirement, it would be the obligation of the contractor to come back and make the correction. He agreed that the appropriate thing would be to move forward and reevaluate after one year of time to determine the impact of the project. Motion made by Councilmember Cardona to close the public hearing, Seconded by Councilmember Evanson. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Councilmember Evanson commented that a lot of great input was received tonight from the residents and staff. He recognized that they need to have realistic expectations that even with well-designed traffic calming measures, some people will still not obey that. He had concerns that there may be some bias in the data. He stated that because this is a lower-cost project, he can support tabling this to ensure that the project is built as designed, with evaluation to occur in one year. Councilmember Cardona stated that he can support approving this as the City fulfilled its obligation for the project. He stated that City staff is going to follow up to determine if the project was constructed as required, and if it was not, the contractor would need to fix that. He stated that he 22 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 9 does not support waiting one year,as that becomes a moving target forthe desired outcome.He stated that the data already shows improvement and that it can still be reevaluated in one year. Councilmember Bolkcom agreed. She noted that the improvement has been constructed, and if work is needed to correct something, that would occur at no cost to residents. She noted additional work that could be done, working with public safety as well. She did not believe they needed to postpone action. Councilmember Vescio recognized that this is where these residents live and appreciated their input. He stated that the roads needed repair, and the schools are not going anywhere. He hoped that residents would reach out if any issues arise with the work that is warranted. He stated that the City agreed to the traffic calming measures, which were constructed, and recognized that they may not satisfy all the residents. He commented that the data shows that traffic volumes and speeds have been reduced, but recognized that not every driver is going to do what they should. Motion made by Councilmember Cardona to adopt Resolution No. 2025-127, Adopting the Assessment for 2025 East Danube Traffic Calming Project No. ST-2025-02. Seconded by Councilmember Bolkcom. Further discussion: Councilmember Bolkcom noted that staff will follow up on the items discussed tonight. Mr. Wysopal asked and received confirmation that follow-up traffic evaluation could occur at six months and one year. Mr. Brodhag stated that staff will verify that the speed humps were constructed as designed as soon as possible. Upon a voice vote of 4 1 (Evanson opposed), Mayor Ostwald declared the motion carried. Mayor Ostwald briefly recessed the meeting at 9:51 p.m. Mayor Ostwald reconvened the meeting at 9:58 p.m. 20. Public Hearing and Resolution No. 2025-128, Adopting the Assessment for 2025 Nuisance Abatements and 2025 Rental Reinspection Fees Motion made by Councilmember Evanson to open the public hearing. Seconded by Councilmember Vescio. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Mr. Starks presented information on nuisance abatements and rental reinspection fees, noting a total of 50 properties with assessments totaling $148,069. He noted a payment that was received late Friday afternoon, which is reflected in the revised assessment roll. He stated that to date, one written objection has been from Leah Klutz at 6961 Hickory Place. He recommended that the Council complete the public hearing, receive the revised assessment roll, and adopt the resolution as presented. Motion made by Councilmember Bolkcom to accept the revised assessment roll into the record, Seconded by Councilmember Evanson. 23 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 10 Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Councilmember Vescio noted the high total for the property at 5809 Arthur Street and asked how th that would be collected. Mr. Starks explained that if the costs are not paid by November 15, they would be certified to the County and paid with the property taxes. There were no public comments. Motion made by Councilmember Bolkcom to close the public hearing, Seconded by Councilmember Evanson. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Motion made by Councilmember Evanson to adopt Resolution No. 2025-128, Adopting the Assessment for 2025 Nuisance Abatements and 2025 Rental Reinspection Fees. Seconded by Councilmember Vescio. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. New Business 21. Ordinance No. 1434, Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions, and Subdivision Procedures (First Reading) Stacy Stromberg, Assistant Community Development and HRA Director, provided background information on the Zoning Code update that occurred and related updates that have been identified since that time. She presented the proposed updates related to subdivision procedures, use definitions/use table, public facilities district, and principal use standards. She stated that the Planning Commission reviewed this and recommended approval, noting that the Council is asked to consider the first reading of the ordinance tonight. Mayor Ostwald commented that these seem to be straightforward updates. Motion made by Councilmember Evanson to approve the first reading of Ordinance No. 1434 Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions, and Subdivision Procedures. Seconded by Councilmember Cardona. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. 22. Resolution No. 2025-132, Authorizing Execution of Loan Agreement with the Minnesota Public Facilities Authority for the Locke Park WTP GAC Treatment Addition Project No. 24-199 Jim Kosluchar, Public Works Director, presented a summary of the Locke Park WTP GAC Treatment Addition Project, noting that the proposed resolution would authorize finalization and execution of the loan agreement with the Public Facilities Authority (PFA). He reviewed the project elements, financial impacts, next steps, and recommendation to approve the resolution as presented. 24 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 11 Mayor Ostwald suggested that Mr. Kosluchar continue with the presentation for Item 23, and the Council could then take action on both items. Mr. Kosluchar presented a summary of the bidding for the project, the low bid received, the recommendation to award the project, and the next steps. Councilmember Bolkcom asked if there would be any impact on Locke Park once the work begins. Mr. Kosluchar stated that it will most likely be taken offline when construction begins in earnest in the spring and will most likely remain offline for one year during the project. Mayor Ostwald noted that this project will help expand the City's utilities and filter additional material from the well. He applauded staff for the work to put the project together and obtain the loan. Mr. Kosluchar recognized the work of the utility and finance staff who worked on this project. Motion made by Councilmember Evanson to approve Resolution No. 2025-132, Authorizing Execution of Loan Agreement with the Minnesota Public Facilities Authority for the Locke Park WTP GAC Treatment Addition Project No. 24-199. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. 23. Resolution No. 2025-133, Receiving Bids and Awarding Locke Park WTP GAC Treatment Addition Project No. 24-199 Motion made by Councilmember Evanson to approve Resolution No. 2025-133, Receiving Bids and Awarding Locke Park WTP GAC Treatment Addition Project No. 24-199. Seconded by Councilmember Vescio. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. 24. Resolution No. 2025-134, Receiving Feasibility Report and Calling for Public Hearing on Street Rehabilitation Project No. ST-2026-01 Mr. Brodhag presented the Feasibility Report for the proposed street rehabilitation project ST-2026- 01, including the project area, resident outreach and engagement, proposed improvements, utility improvements, special assessment, project budget, and tentative schedule. He stated that the feasibility report concludes that the project is cost-effective, necessary, and feasible, and recommends approval of the resolution as presented. Councilmember Cardona encouraged the residents in the project area to attend the public hearing and believed that they would appreciate the proposed improvements. Councilmember Vescio asked if residents would have access to their homes when the water main work is completed. Mr. Brodhag stated that they typically work with contractors to allow access to each property to the best of their ability, recognizing that there may be times when access is limited. Noting that access is restored at the end of the workday. 25 Jufn!2/ City Council Meeting 10/13/2025 Minutes Page 12 Motion made by Councilmember Cardona to approve Resolution No. 2025-134, Receiving Feasibility Report and Calling for Public Hearing on Street Rehabilitation Project No. ST-2026-01. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Informal Status Reports Councilmember Bolkcom stated that she and Councilmember Cardona received a tour of Commons Park and noted that great progress is being made. She noted that the Springbrook Sampler was a great event and recognized the grand opening of the art center. She commented that tickets are still available for Springbrook Pumpkin Night in the Park. Councilmember Cardona provided input on the recent public safety events that he attended and enjoyed, along with the events mentioned by Councilmember Bolkcom. He noted the trick-or-treating event coming up that will be hosted by the Fire Department. Councilmember Evanson provided an update on the most recent Metro Cities Board meeting. Adjourn Motion made by Councilmember Vescio to adjourn. Seconded by Councilmember Evanson. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously, and the meeting adjourned at 10:43 p.m. Respectfully Submitted, Melissa Moore Dave Ostwald City Clerk Mayor 26 Jufn!3/ AGENDA REPORT Meeting Date:October 27,2025 Meeting Type:City Council Submitted By:Beth Kondrick, Deputy City Clerk Title Receive the Minutes from theCity Council Conference Meeting ofOctober 13,2025 Background Attached are the minutes from the City Council conference meeting ofOctober 13,2025. Financial Impact Recommendation Receive the minutes from theCity Council conference meeting of October 13,2025. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship X Organizational Excellence Attachments and Other Resources Minutes from the City Council Conference Meeting of October 13,2025 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 27 Jufn!3/ City CouncilConference Meeting October 13, 2025 5:30PM Fridley City Hall, 7071 University Avenue NE Minutes Roll Call Present:Mayor Dave Ostwald Councilmember Patrick Vescio Councilmember Ann Bolkcom Councilmember Ryan Evanson Councilmember Luke Cardona Others Present:Wally Wysopal, City Manager Joe Starks, Finance Director Becca Hellegers, Employee Resources Director Melissa Moore, Assistant City Manager Items for Discussion 1.Resolution No. 2025-135, Approving and Authorizing Entering into a Memorandum of Understanding with Patrol Officers (Local #119) for the City of Fridley Public Safety Department Becca Hellegers, Employee Resources Director, gave the City Council background on the reasons for theMemorandum. The City Council was supportive of the need. 2.Discussion and Updates on Health Insurance, Disability & Life Insurance, and Minnesota Paid Leave Becca Hellegers provided information related to the results the Employee Resources department received after going out to the market for health insurance quotes. The results will be a more favorable cost for employee health insurance. The item will come before the City Council at a future meeting for approval to enter into an agreement. Regardingthe paid leave and the new law imposed by the State of Minnesota, the City Council was supportive of going to a private provider instead of the State. 3. 2026 Proposed Utility Budgets/Rates Discussion 28 Jufn!3/ Joe Starks, Finance Director, provided a review of utility rates. Major increases are the result of charges for Metropolitan Council Environmental Services (MCES) rates for which the City of Fridley has no control over. The City Council was supportive of the rare increase but desires to find better explanations from the Metropolitan Council for the excessive rate increases. 29 Jufn!4/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:EQECommission Submitted By:Julianne Beberg, Office Coordinator Title Receive the Minutes from the Environmental Quality and Energy Commission (EQEC) Meeting ofAugust 12, 2025 Background Attached are the minutes from the EQEC meeting of August 12, 2025. Financial Impact None. Recommendation Receive the minutesof the EQECmeeting ofAugust 12, 2025. Attachments and Other Resources Minutes from the EQECCommission Meeting ofAugust 12, 2025 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 2: Jufn!4/ ENVIRONMENTAL QUALITY & ENERGY COMMISSION MEETING August 12,2025 7:00 PM Fridley Civic Campus, 7071 University Ave N.E. MINUTES Call to Order Chair Klemzcalled the Environmental Quality and Energy Commissionto order at7:00 p.m. Roll Call Present:Aaron Klemz Sam Stoxen Emma Carter Mark Hansen Justin Foell Absent: Avonna Starck Dustin Norman Others Present: Rachel Workin, Environmental Planner Approval of Agenda Motionby CommissionerStoxen to approve the agenda. Seconded by CommissionerHansen.The motion carriedunanimously. Approval of Meeting Minutes 1.Approval of July8,2025EnvironmentalQuality and Energy Commission Meeting Minutes Motionby CommissionerStoxen to approvethe July 8,2025meeting minutes. Secondedby CommissionerCarter.The motion carriedunanimously. New Business 2.Recycling and Organics Contract Extension At the May 13 EQEC meeting, theEQECrecommended that staff pursue three-year contract extensions for the organics and recycling contracts expiring on April 30, 2026. Contract language was developed based on the extension pricing. Motionby CommissionerFoell to approve the amendment to extendthe recycling and organics contracts. Seconded by CommissionerHansen. The motion carriedunanimously. 31 Jufn!4/ Environmental Quality & Energy Commission Minutes Page 2 Meeting 8/12/2025 3. 2026 Meeting Dates Ms. Workin shared the proposed 2026 meeting dates. Motion by Commissioner Hansen to approve the 2026 meeting dates included in the packet. Seconded by Commissioner Stoxen. The motion carried unanimously. 4. Appointment of Non-Voting Youth Member Ms. Workin shared that the City was interested in appointing non-voting youth members to different commissions as allowed under code. Old Business 5. Sustainable Fridley Awards Ms. Workin shared the website for submitting the Sustainable Fridley Awards and that staff would begin promoting the awards in September. She will bring the nominees to the October meeting. 6. Energy Action Plan Updates Ms. Workin shared that the City had done an outreach event at Park Plaza Co-Operative during Night to Unite and that the council approved the grants for solar at Commons Park and the Public Works building. She also said the Partners in Energy 2024 Program summary was in the packet. Highlights include increasing renewable energy program participation and business energy assessments. 7. Outreach and Event Updates Ms. Workin shared that the City has scheduled multiple pollinator planting events in the fall. 8. Grant Updates Ms. Workin shared that there were no additional grant updates. Other Items 9. Informal Status Reports Ms. Workin reminded the commissioners that instead of the September EQEC meeting there will be a bike ride leaving at 6:00 p.m. Adjournment Motion by Commissioner Hansen to adjourn the meeting. Seconded by Commissioner Foell. The Motion carried unanimously. The meeting was adjourned at 8:00 p.m. Respectfully submitted, Ejhjubmmz!tjhofe!cz!Sbdifm! Xpsljo! Sbdifm!Xpsljo Ebuf;!3136/21/26!1:;45;12! .16(11( ________________________________________________________ Rachel Workin Environmental Planner 32 Jufn!5/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City Council Submitted By:Joe Starks, Finance Director/City Treasurer Title Resolution No. 2025-142, Approving Gifts, Donations and Sponsorships Received Between September 13, 2025, and October 17, 2025 Background Each month, the City of Fridley (City) receives various donations and gifts to support City operations, programs and projects. Pursuant to Minnesota Statute § 465.03, the City may accept these donations and gifts for the benefit of residents. For specific donations or gifts, the donor may prescribe certain requirements, such as for a specific activity or department. Consistent with the abovementioned statute, staff prepared Schedule No. 1 (Exhibit A), which outlines the various donations, gifts and/or sponsorships received by the City betweenSeptember 13, 2025, and October 17, 2025.To accept the same, the Council must adopt the attached resolution by a twothird majority vote. Lastly, for each donation, gift or sponsorship, staff ensure it meets an identified need, does not create a quidproquo or longterm maintenance obligation, and the donor received an acknowledgment of their gift through a letter or publication. Financial Impact Every donation benefits the City Recommendation Staff recommend the approval of Resolution No. 2025-142,Approving Gifts, Donations and Sponsorships Received BetweenSeptember 13, and October 17, 2025. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 33 Jufn!5/ Attachments and Other Resources !Resolution No. 2025-142 !Exhibit A: Schedule No. 1 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 34 Jufn!5/ Resolution No. 2025-142 Approving Gifts, Donations and Sponsorships for the City of Fridley Whereas, throughout the year the City of Fridley (City) receives various gifts and donations; and Whereas, the City is sincerely grateful for the support it receives from an array of organizations and individuals; and Whereas, without this support, the continuation of different events or programs would be difficult to sustain; and Whereas, the attached schedule (Exhibit A) lists all of the donations and gifts received by various City departments between September 13, 2025, and October 17, 2025; and Whereas, all of the items listed on the attached schedule (Exhibit A) are required to be accepted by the City Council by a two-thirds majority vote; and Whereas, all items have been determined to be donated free of any quid-pro-quo expectation by the donor. Now, therefore be it resolved, that the City Council of the City of Fridley hereby approves and accepts the various donations, gifts and sponsorships made between September 13, 2025, and October 17, 2025. th Passed and adopted by the City Council of the City of Fridley this 27 day of October, 2025. _______________________________________ Dave Ostwald Mayor Attest: Melissa Moore City Clerk 35 Jufn!5/ Gifts, Donations, and Sponsorships - City of FridleySchedule No. 1 Date Donor Name, Amount/ Department or DivisionProgramFund Receivedif not anonymousValue 11/19/24Public Safety - PoliceGeneral Donation from Friendly ChevroletFriendly Chevrolet$500.00101 12/06/24SNCDonation Box ContentsVarious$108.00270 12/31/24SNCDonation-Rec'd 2/20/2025 JE back to 2024Rasmussen NE Bank$250.00270 01/02/25Parks and RecreationDonation for Winterfest 2025Fridley Lions Club$1,000.00101 01/02/25Public Safety - PoliceDonation for 2025 Night to UniteMINCO$1,000.00101 01/17/25SNCDonation Box ContentsVarious$154.00270 SNCDonation Box ContentsVarious$70.00270 02/05/25 SNCDonation Box ContentsMarvin Kolling$35.00270 02/05/25 SNCDonation Box ContentsVarious$212.00270 03/05/25 Community DevelopmentSeed Packets for Seed Swap/Environmental Fun FairMinnesota Native Landscapes$100.00512 03/17/25 03/26/25Public Safety - PoliceSafety Camp DonationFridley Lions Club$1,500.00101 03/21/25SNCDonation Box ContentsVarious$128.00270 04/10/25SNCDonation Box ContentsVarious$151.00270 SNCDonation Box ContentsVarious$412.00270 04/25/25 05/08/25Community DevelopmentCompost for Orgnaics Recycling ParticipantsSMSC Organics Recycling Facility$200.00237 05/16/25SNCSNC DonationNational SOC Daughter Conservation$100.00270 05/16/25SNCDonation Box ContentsVarious$110.00270 Public Safety - PoliceGeneral Donation from Fridley Lions ClubFridley Lions Club$500.00101 05/28/25 Public Safety - PoliceShop with a CopWalmart$4,500.00101 05/31/25 SNCDonation Box ContentsVarious$117.00270 06/13/25 06/20/25SNCSponsorship Donation from SNC FoundationSNCF$25,000.00270 07/25/25SNCDonation Box ContentsVarious$290.00270 08/01/25SNCDonation Box ContentsVarious$90.00270 08/26/25Public Safety - FireCO DetectorsFridley Lions Club$3,000.00101 Friends of Fridley Education 09/18/25Parks and RecreationBike Program Equipment $2,500.00101 Foundation 08/21/25SNCPicnic Table SponsorshipMichelle Rogers$2,500.00270 08/28/25SNCPaver SponsorshipMichelle Rogers$125.00270 08/28/25SNCDonation Box ContentsVarious$184.00270 08/28/25SNCXcel Grant ReimbursementSNCF$8,000.00270 09/24/25Parks and RecreationTurkey BINGO SponsorshipFridley Lions Club$1,000.00101 Public Safety - Police 09/24/25Coats from Cops EventFridley Lions Club$2,500.00 101 36 Jufn!6/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City Council Submitted By:Beth Kondrick, Deputy City Clerk Title Resolution No. 2025-143, Designating City Council Meeting Dates for 2026 Background Pursuant to section 3.01 of the Fridley City Charter, the City Council annually adopts a calendar of City commissions, holidays and other miscellaneous dates that may impact some City operations. Financial Impact None. Recommendation Staff recommend approval of Resolution No. 2025-143,Designating City Council Meeting Dates for 2026. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship x Organizational Excellence Attachments and Other Resources Resolution No.2025-143 2026 City of Fridley Calendar Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 37 Jufn!6/ Resolution No. 2025-143 Designating City Council Meetings for 2026 Whereas, section 3.01 of the Fridley City Charter (Charter) requires the Fridley City Council (Council) to meet at a fixed time not less than once each month; and Whereas, the Charter requires the Council to meet at such times as may be prescribed by resolution; and Whereas, it is the intent of the Council to comply with the open meeting provisions contained in Minnesota Statutes Chapter 13D. Now, therefore be it resolved, by the City Council of the City of Fridley that: 1. The Fridley City Council will hold regular meetings in the Council Chambers of the Fridley Civic Campus, 7071 University Avenue N.E., commencing at 7 p.m. on the following dates in 2026: January 5, January 26. February 9, February 23, March 9, March 23, April 13, April 27, May 11, May 26, June 8, June 22, July 13, July 27, August 10, August 24, September 14, September 28, October 12, October 26, November 9, November 23, December 14 and December 21. 2. The City Council will hold conference meetings prior to regularly scheduled City Council meetings, except for the last City Council meeting in December. th Passed and adopted by the City Council of the City of Fridley this 27 day of October, 2025. _______________________________________ Dave Ostwald Mayor Attest: Melissa Moore - City Clerk 38 Jufn!6/ 39 Jufn!7/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City CouncilMeeting Submitted By: Joe Starks, Finance Director/City Treasurer JamesKosluchar, Director of Public Works Title ResolutionNo. 2025-144, Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $2,938,350 General Obligation Water Revenue Note of 2025A, Providing for its Issuance and Authorizing Execution of a Bond Purchase and Project Loan Agreement Background At the October 13 City Council Meeting, the City Council(Council)approved Resolution No. 2025-132, Authorizing Execution of Loan Agreement with the Minnesota Public Facilities Authority (MNPFA) for the Locke Park WTP GAC Treatment Addition Project No. 24-199. Approval of the resolution granted authorization to execute the loan agreement with MNPFA, including the inclusion of any specifics after review with the Citys(City)Bond Counsel, further formalizes the arrangement for tentative closing on November 12, 2025. As mentioned in the October 13 agenda item, in Juneof 2024, the City successfully completed an application to the Minnesota Public Facilities Authority (PFA) for the inclusion of the Locke Park Water Treatment Plant GAC Treatment Addition Project No. 24-199 (Project) to the Drinking Water Revolving Fund (DWRF) Intended Use Plan (IUP).The Project is identified in the 2025-2029 Capital Investment Plan (CIP) and includes the construction of a granular activated carbon (GAC) advanced treatment process to , also known as forever chemicals,The Project was subsequently prioritized in the IUP in late 2024. Through its inclusion in the IUPthe Project is eligible for a low-interest loanthrough the PFAfor associated construction and construction engineering costs. Following solicitation of bids in August 2025, the Project has a projected cost of $5,876,700, with $2,938,350 of this amount eligible for loan forgiveness through the PFA Principal Forgiveness Grant program. The terms of the attached drafted loan agreement include an interest rate of 2.413% per annum and final loan maturity date of August 20, 2045. Financial Impact While the loan is designated as a General Obligation Water Revenue Note, it is pledged for repayment mit. To receive a favorable Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3: Jufn!7/ interest rate, the City designated the loan as bank qualified, or exempt from tax. The loan amount will Recommendation Staff recommends the approval of Resolution No. 2025-144, Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $2,938,350 General Obligation Water Revenue Note of 2025A, Providing for its Issuance and Authorizing Execution of a Bond Purchase and Project Loan Agreement. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places Community Identity & Relationship Building X Financial Stability & Commercial Prosperity X Public Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources !Resolution No. 2025-144 !Closing Documents Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 41 Jufn!7/ Resolution No. 2025-144 Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $2,938,350 General Obligation Water Revenue Note of 2025A, Providing for its Issuance and Authorizing Execution of a Bond Purchase and Project Loan Agreement Whereas, the Fridley City Council (Council) of the City of Fridley, Minnesota (City), has heretofore applied for a loan from the Minnesota Public Facilities Authority (PFA) to provide financing pursuant to Minnesota Statutes, Chapters 444 and 475, for a WTP addition that will include installation of a GAC treatment system and GAC vessels, associated mechanical and electrical components, all as detailed in the Minnesota Department of Health's certification, dated May 7, 2025 (Project); and Whereas, the PFA is authorized pursuant to Minnesota Statutes, Chapter 446A, as amended, to issue its bonds (PFA Bonds) and to use the proceeds thereof, together with certain other funds, to provide loans and other assistance to municipalities to fund eligible costs of construction of publicly owned drinking water systems in accordance with the federal Safe Drinking Water Act and the federal Clean Water Act; and Whereas, the City has applied for a loan from the PFA pursuant to such program and the PFA has committed to make a loan to the City in the principal amount of $2,938,350, to be disbursed and repaid in accordance with the terms of a Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement, dated October 3, 2025 (PFA Loan Agreement), a copy of which has been presented to the City Council and is on file with the City Manager. In addition, PFA will be providing a Principal Forgiveness Grant to the City in the amount of $2,938,350 (Grant) to help finance the Project, pursuant to the PFA Loan Agreement (with respect to the Grant, (Grant Agreement); and Whereas, the $2,938,350 General Obligation Water Revenue Note of 2025A (Note) of the City is tax-exempt, and in addition the City will need to assure the tax-exemption of the PFA Bonds; and Whereas, in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(4), the City is authorized to issue obligations to a board, department or agency of the State of Minnesota by negotiation and without advertisement for bids and the PFA is, and has represented that it is, a board, department or agency of the State of Minnesota; and Whereas, the City owns and operates a municipal water system (Water System), as a separate revenue producing public utility; and Whereas, the net revenues of the Water System are pledged to the payment of the City's outstanding $5,995,000 original principal amount of General Obligation Water Revenue Bonds, Series 2016A, dated June 2, 2016 (Outstanding Water Bonds); and Whereas, a contract or contracts for the Project have been made by the City with the approval of the PFA and all other state and federal agencies of which approval is required. 42 Jufn!7/ Now, therefore, be it resolved, by the City Council of the City of Fridley, Anoka County, Minnesota, as follows: 1. Acceptance of Offer; Payment. The offer of the PFA to purchase a $2,938,350 General Obligation Water Revenue Note of 2025A of the City, at the rate of interest hereinafter set forth, and to pay therefor the sum of $2,938,350 as provided below, is hereby accepted, and the sale of the Note is hereby awarded to the PFA. Payment for the Note shall be disbursed in installments as eligible costs of the Project are reimbursed or paid, all as provided in the PFA Loan Agreement. 2. Title; Date; Denomination; Interest Rates; Maturities. The Note shall be a fully registered negotiable obligation, shall be titled "General Obligation Water Revenue Note of 2025A", shall be dated as of the date of delivery and shall be issued forthwith. The Note shall be in the principal amount of $2,938,350, or so much thereof as shall be disbursed pursuant to the PFA Loan Agreement, shall bear interest on so much of the principal amount of the Note as may be disbursed and remains unpaid until the principal amount of the Note has been paid or has been provided for, at the rate of 2.413% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Note is payable semi-annually on February 20 and August 20, commencing August 20, 2026. Interest starts accruing as of the date of the initial disbursement. Principal on the Note shall mature on August 20 of the years and in the installments as follows: Year Amount Year Amount 2026 $54,350 2036 $150,000 2027 121,000 2037 154,000 2028 124,000 2038 158,000 2029 127,000 2039 162,000 2030 130,000 2040 166,000 2031 134,000 2041 170,000 2032 137,000 2042 174,000 2033 140,000 2043 178,000 2034 143,000 2044 182,000 2035 147,000 2045 187,000 Interest shall accrue only on the aggregate amount of the Note which has been disbursed and is unpaid under the PFA Loan Agreement. The principal installments shall be paid in the amounts scheduled above even if at the time of payment the full principal amount of the Note has not been disbursed; provided that if the full principal amount of the Note is never disbursed, the amount of the principal not disbursed shall be applied to reduce each unpaid principal installment in the proportion that such installment bears to the total of all unpaid principal installments (i.e., the remaining principal payment schedule shall be reamortized to provide similarly level annual installments of total debt service payments). Principal, interest and any premium due under the Note will be paid on each payment date by wire payment, or by check or draft mailed at least five business days prior to the payment date to the person in whose name the Note is registered, in 43 Jufn!7/ any coin or currency of the United States which at the time of payment is legal tender for public and private debts. Interest on the Note includes amounts treated by the PFA as service fees. 3. Purpose; Cost. The proceeds of the Note shall provide funds to finance construction of the Project. The total cost of the construction of the Project, including legal and other professional charges, publication and printing costs, interest accruing on money borrowed for the Project before the collection of net revenues pledged and appropriated therefor, and all other costs necessarily incurred and to be incurred from the inception to the completion of the Project, is estimated to be at least equal to the amount of the Note. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Redemption. The Note shall be subject to redemption and prepayment in whole or in part at the option of the City, subject to the written consent of the PFA, or mandatorily as provided in the PFA Loan Agreement. 5. Registration of Note. At the time of issuance and delivery of the Note, the officer of the City performing the functions of the treasurer (City Manager) shall register the Note in the name of the payee in a note register which the City Manager and the officer's successors in office shall maintain for the purpose of registering the ownership of the Note. The Note shall be prepared for execution with an appropriate text and spaces for notation of registration. The force and effect of such registration shall be as stated in the form of Note hereinafter set forth. Payment of principal installments and interest, whether upon redemption or otherwise, made with respect to the Note, may be made to the registered holder thereof or to the registered holder's legal representative, without presentation or surrender of the Note. 6. Form of Note. The Note, together with the Certificate of Registration attached thereto, shall be in substantially the form set forth on Exhibit A attached hereto. 7. Execution. The Note shall be executed on behalf of the City by the electronic signatures or manual signatures of its Mayor and City Manager; the seal of the City has been intentionally omitted as permitted by law. The electronic signature of the Mayor and/or the City Manager to this resolution and to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) "electronic signature" means (a) a manually signed original signature that is then transmitted by electronic means or (b) a signature obtained through DocuSign or a similarly digitally auditable signature gathering process; and (ii) "transmitted by electronic means" means sent in the form of a facsimile or sent via the internet as a portable document format (PDF) or other replicating image attached to an electronic mail or internet message. In the event of disability or resignation or other absence of either such officer, the Note may be signed by electronic signature or manual signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature shall appear on the Note shall cease to be such officer before the 44 Jufn!7/ delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. 8. Delivery; Application of Proceeds. The Note when so prepared and executed shall be delivered by the City Manager to the purchaser thereof prior to disbursements pursuant to the PFA Loan Agreement, and the purchaser shall not be obliged to see to the proper application thereof. 9. Fund and Accounts. There has heretofore been created a separate fund in the City treasury designated the Water Fund (Fund). The City Manager and all municipal officials and employees concerned therewith shall maintain financial records of the receipts and disbursements of the Water System in accordance with the resolutions establishing the Fund. The Operation and Maintenance Account heretofore established by the City for the Water System shall continue to be maintained in the manner heretofore and herein provided by the City. All moneys remaining after paying or providing for the items set forth in the resolution establishing the Operation and Maintenance Account shall constitute and are referred to as "net revenues" until the Note has been paid. There shall be maintained in the Fund the following accounts: (a) A "PFA Construction Account", to which shall be credited all proceeds received from the sale of the Note. The Note shall be the only source of moneys credited to the PFA Construction Account. It is recognized that the sale proceeds of the Note are received in reimbursement for costs expended on the Project or in direct payment of such costs, and that accordingly the moneys need not be placed in the PFA Construction Account upon receipt but may be applied immediately to reimburse the source from which the expenditure was made. The moneys in the PFA Construction Account shall be used solely for the purpose of paying for the cost of constructing the Project, including all costs enumerated in Minnesota Statutes, Section 475.65, provided that such moneys shall only be expended for costs and expenses which are permitted under the PFA Loan Agreement. The PFA prohibits the use of proceeds of the Note to reimburse costs initially paid from proceeds of other obligations of the City unless otherwise specifically approved. Upon completion of the Project and the payment of the costs thereof, any surplus shall be transferred to the PFA Debt Service Account. (b) A PFA Debt Service Account, to which shall be irrevocably appropriated, pledged and credited: (1) net revenues of the Water System in an amount sufficient to pay the principal of, and interest on, the Note when due; (2) any collection of taxes which may hereafter be levied in the event the net revenues of the Water System herein pledged for the payment of the Note are insufficient therefor; (3) all investment earnings on moneys held in the PFA Debt Service Account; (4) any amounts transferred from the PFA Construction Account; and (5) any other moneys which are properly available and are appropriated by the City Council to the PFA Debt Service Account. The moneys in the PFA Debt Service Account shall be used only to pay or prepay the principal of, and interest on, the Note and any other general obligation bonds hereafter issued and made payable from the PFA Debt Service Account, and to pay any rebate due to the United States with respect to the PFA Bonds in connection with the Note. No portion of the proceeds of the Note shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire 45 Jufn!7/ higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Note was issued, and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Note or $100,000. To this effect, any proceeds of the Note or any sums from time to time held in the PFA Construction Account, Operation and Maintenance Account or PFA Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the Note) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. In addition, moneys in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Note to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (Code). The City shall observe the covenants of paragraphs 17, 18 and 19 of this resolution and of Article 3 of the PFA Loan Agreement with regard to the Fund. 10. Coverage Test; Pledge of Net Revenues; Excess Revenues. It is hereby found, determined and declared that the net revenues of the Water System are sufficient in amount to pay when due the principal of and interest on the Note and the Outstanding Water Bonds and a sum at least five percent in excess thereof. The net revenues of the Water System are hereby pledged on a parity lien with the Outstanding Water Bonds and shall be applied for that purpose, but solely to the extent required to meet, together with other pledged sums, the principal and interest requirements of the Note. Nothing contained herein shall be deemed to preclude the City from making further pledges and appropriations of the net revenues of the Water System for the payment of other or additional obligations of the City, provided that it has first been determined by the City Council that estimated net revenues of the Water System will be sufficient, in addition to all other sources, for the payment of the Note and such additional obligations, and any such pledge and appropriation of net revenues may be made superior or subordinate to, or on a parity with, the pledge and appropriation herein. Net revenues in excess of those required for the foregoing may be used for any proper purpose. 11. Pledge to Produce Revenues. In accordance with Minnesota Statutes, Section 444.075, the City hereby covenants and agrees with the holder of the Note that it will impose and collect charges for the service, use and availability of and connection to the Water System at the times and in the amounts required to produce net revenues adequate to pay all principal and interest when due on the Note. Minnesota Statutes, Section 444.075, Subdivision 2, provides as follows: "Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations". 46 Jufn!7/ 12. General Obligation Pledge. The full faith, credit and taxing powers of the City shall be, and are hereby, irrevocably pledged for the prompt and full payment of the principal and interest on the Note , as the same respectively become due. If the net revenues of the Water System appropriated and pledged to the payment of principal and interest on the Note, together with other funds irrevocably appropriated to the PFA Debt Service Account shall at any time be insufficient to pay such principal and interest when due, the City covenants and agrees to levy, without limitation as to rate or amount, an ad valorem tax upon all taxable property in the City sufficient to pay such principal and interest as they become due. If the balance in the PFA Debt Service Account is ever insufficient to pay all principal and interest then due on the Note and any other obligations payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed, with or without interest, from the PFA Debt Service Account when a sufficient balance is available therein. 13. Certificate of Registration. The City Manager is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, Minnesota, together with such other information as the County Auditor shall require, and to obtain the County Auditor's certificate that the Note has been entered in the County Auditor's Bond Register. 14. Bond Purchase and Project Loan Agreement. The PFA Loan Agreement is hereby approved in substantially the form presented to the City Council, and in the form executed by electronic signatures or manual signatures is hereby incorporated by reference and made a part of this resolution. The electronic signature of the Mayor and/or the City Manager to this PFA Loan Agreement and to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) "electronic signature" means (a) a manually signed original signature that is then transmitted by electronic means or (b) a signature obtained through DocuSign or a similarly digitally auditable signature gathering process; and (ii) "transmitted by electronic means" means sent in the form of a facsimile or sent via the internet as a PDF or other replicating image attached to an electronic mail or internet message. Each and all of the provisions of this resolution relating to the Note are intended to be consistent with the provisions of the PFA Loan Agreement, and to the extent that any provision in the PFA Loan Agreement is in conflict with this resolution as it relates to the Note, that provision shall control and this resolution shall be deemed accordingly modified. The City's execution and delivery of the PFA Loan Agreement by the Mayor and City Manager is hereby approved, ratified and authorized. The execution of the PFA Loan Agreement by the appropriate officers shall be conclusive evidence of the approval of the PFA Loan Agreement in accordance with the terms hereof. The PFA Loan Agreement may be attached to the Note, and shall be attached to the Note if the holder of the Note is any person other than the PFA. 15. Principal Forgiveness. In addition to the Note, the City is obligated to repay the Principal Forgiveness (as defined in the PFA Loan Agreement) in accordance with Section 9.2, Article 9 of the PFA Loan Agreement. Notwithstanding any provision to the contrary in the PFA Loan Agreement, the Principal Forgiveness is payable solely from legally available funds and is a special, limited revenue obligation and not a general obligation of the City. Neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the Principal Forgiveness. 47 Jufn!7/ 16. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the PFA, and to the attorneys approving the legality of the issuance of the Note, certified copies of all proceedings and records of the City relating to the Note and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 17. Negative Covenants as to Use of Proceeds and Project. The City hereby covenants not to use the proceeds of the Note or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Note to be a "private activity bond" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no actions will be taken over the term of the Note that would cause it to be a private activity bond, and the average term of the Note is not longer than reasonably necessary for the governmental purpose of the issue. The City hereby covenants not to use the proceeds of the Note in such a manner as to cause the Note to be a "hedge bond" within the meaning of Section 149(g) of the Code. The City hereby covenants not to use the proceeds of the Note or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangement for the cost of the Project, in such a manner as to cause the PFA Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that it will take no actions over the term of the Note that would cause the PFA Bonds to be private activity bonds, and the average term of the Note is not longer than reasonably necessary for its governmental purpose. 18. Tax-Exempt Status of the Note; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Note, including without limitation (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the Note, and (c) the rebate of excess investment earnings to the United States if the Note (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceeds the small-issuer exception amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (a) the Note is issued by a governmental unit with general taxing powers, (b) the Note is not a private activity bond, (c) ninety-five percent or more of the net proceeds of the Note are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (d) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one issuer with the City) during the calendar year in which the Note is issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code. 48 Jufn!7/ 19. Tax-Exempt Status of the PFA Bonds; Rebate. The City with respect to the Note shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the PFA Bonds, including without limitation (a) requirements relating to temporary periods for investments, (b) limitations on amounts invested at a yield greater than the yield on the PFA Bonds, and (c) the rebate of excess investment earnings to the United States. The City covenants and agrees with the PFA and holders of the Note that the investments of proceeds of the Note, including the investment of any revenues pledged to the Note which are considered gross proceeds of the PFA Bonds under the applicable regulations, and accumulated sinking funds, if any, shall be limited as to amount and yield in such manner that the PFA Bonds shall not be arbitrage bonds within the meaning of Section 148 of the Code and any regulations thereunder. On the basis of the existing facts, estimates and circumstances, including the foregoing findings and covenants, the City hereby certifies that it is not expected that the proceeds of the Note will be used in such manner as to cause the PFA Bonds to be arbitrage bonds under Section 148 of the Code and any regulations thereunder. The Mayor and City Manager shall furnish a certificate to the PFA embracing or based on the foregoing certification at the time of delivery of the Note to the PFA. The proceeds of the Note will likewise be used in such manner that the Note is not a private activity bond under Section 103(b) of the Code. 20. Designation of Qualified Tax-Exempt Obligation. In order to qualify the Note as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Note is issued after August 7, 1986; (b) the Note is not a "private activity bond" as defined in Section 141 of the Code; (c) the City hereby designates the Note as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 2025 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the City during this calendar year 2025 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Note does not exceed $10,000,000. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 49 Jufn!7/ 21. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (Reimbursement Regulations) applicable to the "reimbursement proceeds" of the Note, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (Reimbursement Expenditure). The City hereby certifies and/or covenants as follows: (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (Declaration) which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (Project); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Note, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Note. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Note or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Note, and not later than three years after the later of (i) the date of the payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the Reimbursement Expenditure relates is first placed in service. (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of note proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Note is issued, shall be treated as made on the day the Note is issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Note stating in effect that such action will not impair the tax-exempt status of the Note. 4: Jufn!7/ 22. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 23. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. th Passed and adopted by the City Council of the City of Fridley this 27 day of October, 2025. ______________________________________ Dave Ostwald Mayor Attest: ______________________________________ Melissa Moore City Clerk 51 Jufn!7/ EXHIBIT A FORM OF NOTE UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A THE CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA (City), certifies that it is indebted and for value received promises to pay to the Minnesota Public Facilities Authority or the registered assign, the principal sum of TWO MILLION NINE HUNDRED THIRTY EIGHT THOUSAND THREE HUNDRED FIFTY DOLLARS, or so much thereof as may have been disbursed, on August 20 of the years and in the installments as follows: Year Amount Year Amount 2026 $54,350 2036 $150,000 2027 121,000 2037 154,000 2028 124,000 2038 158,000 2029 127,000 2039 162,000 2030 130,000 2040 166,000 2031 134,000 2041 170,000 2032 137,000 2042 174,000 2033 140,000 2043 178,000 2034 143,000 2044 182,000 2035 147,000 2045 187,000 and to pay interest on so much of the principal amount of the debt as may be disbursed and remains unpaid until the principal amount hereof is paid or has been provided for, at the rate of 2.413% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Note is payable semi-annually on February 20 and August 20, commencing August 20, 2026. Interest starts accruing as of the date of the initial disbursement. Principal and Interest Payments. Interest shall accrue only on the aggregate amount of this Note which has been disbursed under the Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement, dated as of October 3, 2025, by and between the City and the Minnesota Public Facilities Authority (PFA Loan Agreement). The principal installments shall be paid in the amounts scheduled above even if at the time of payment the full principal amount of this Note has not been disbursed; provided that if the full principal amount of this Note is never disbursed, the amount of the principal not disbursed shall be applied to reduce each unpaid principal installment in the proportion that such installment bears to the total of all unpaid principal installments (i.e., the remaining principal payment schedule shall be reamortized to provide 52 Jufn!7/ similarly level annual installments of total debt service payments). Interest on this Note includes amounts treated by the Minnesota Public Facilities Authority as service fees. Principal, interest and any premium due under this Note will be paid on each payment date by wire payment, or by check or draft mailed at least five business days prior to the payment date to the person in whose name this Note is registered, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. Redemption. This Note shall be subject to redemption and prepayment in whole or in part at the option of the City, subject to the written consent of the Minnesota Public Facilities Authority, or mandatorily as provided in the PFA Loan Agreement. Purpose; General Obligation. This Note has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota for the purpose of providing money to finance the construction of improvements to the municipal water system (Water System), specifically for a WTP addition that will include installation of a GAC treatment system and GAC vessels, associated mechanical and electrical components, all as detailed in the Minnesota Department of Health's certification, dated May 7, 2025 (Project); and is payable out of the PFA Debt Service Account of the Water Fund of the City, to which account have been pledged net revenues of the Water System. This Note constitutes a general obligation of the City, and to provide moneys for the prompt and full payment of said principal installments and interest when the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. Registration; Transfer. This Note shall be registered in the name of the payee on the books of the City by presenting this Note for registration to the City Manager, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Note may be transferred to a bona fide purchaser only by delivery with an assignment duly executed by the registered owner or the registered owner's legal representative, and the City may treat the registered owner as the person exclusively entitled to exercise all the rights and powers of an owner until this Note is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the City Manager. Fees Upon Transfer or Loss. The City Manager may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer of this Note and any legal or unusual costs regarding transfers and lost notes. Bond Purchase and Project Loan Agreement. The terms and conditions of the PFA Loan Agreement are incorporated herein by reference and made a part hereof. The PFA Loan Agreement may be attached to this Note, and shall be attached to this Note if the holder of this Note is any person other than the Minnesota Public Facilities Authority. 53 Jufn!7/ Tax-Exempt Obligation. The City intends that the interest on this Note will be excluded from gross income for United States income tax purposes or from both gross income and taxable net income for State of Minnesota income tax purposes. Qualified Tax-Exempt Obligation. This Note has been designated by the City as a "qualified tax- exempt obligation" for purposes of Section 265(b)(3) of the federal Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Note that it will impose and collect charges for the service, use and availability of and connection to the Water System at the times and in amounts necessary to produce net revenues adequate to pay all principal and interest when due on this Note; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the installments of principal and interest on this Note as they respectively become due, if the net revenues from the Water System and any other revenues irrevocably appropriated to said PFA Debt Service Account are insufficient therefor; and that this Note, together with all other debts of the City outstanding on the date hereof, being the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the manual signatures of its Mayor and of its City Manager, and the corporate seal of the City having been intentionally omitted as permitted by law, all as of (DO NOT DATE) , 2025. CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA (DO NOT SIGN) Mayor (DO NOT SIGN) City Manager 54 Jufn!7/ CERTIFICATE OF REGISTRATION CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF SIGNATURE OF CITY REGISTRATION REGISTERED OWNER MANAGER Minnesota Public Facilities Authority Saint Paul, Minnesota Federal Employer Identification (DO NOT DATE) No. 41-6007162 (DO NOT SIGN) 55 Jufn!7/ SIGNATURE AND NONLITIGATION CERTIFICATE CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A We, the undersigned, being respectively the duly qualified and acting Mayor and City Manager of the City of Fridley, Anoka County, Minnesota (the "City"), DO HEREBY CERTIFY that we did, in our official capacities as such officers, sign our own proper names on the City's $2,938,350 General Obligation Water Revenue Note of 2025A (the "Note"), dated the date hereof, the seal of the City was intentionally omitted as permitted by law. The Note bears interest, which starts accruing on the initial disbursement date, at the rate of 2.413% per annum, payable on February 20 and August 20 of each year, commencing August 20, 2026, and matures in installments commencing on August 20, 2026 through August 20, 2045, inclusive. WE FURTHER CERTIFY that we are now, and were on the date of signing the Note, the duly qualified and acting officers therein indicated, and duly authorized to execute the same. WE FURTHER CERTIFY that the Note has been in all respects duly executed for delivery pursuant to authority conferred upon us as such officers; that the Note has been registered in the name of the purchaser of the Note; that no obligation other than the Note described above has been issued pursuant to such authority; that none of the proceedings or records which have been certified to the purchaser of the Note or the attorneys approving the same have been in any manner repealed, amended or changed; and that there has been no change in the financial condition of the City, or of the facts affecting the Note. WE FURTHER CERTIFY that there is no litigation threatened or pending (1) questioning the organization or boundaries of the City, (2) questioning the right of either of us or any members of the City Council to our or their respective offices, (3) in any manner questioning our right and power to execute and deliver the Note, or (4) otherwise questioning the validity of the Note or the pledge of net revenues for the payment of the installments of principal on the Note and the interest thereon. WE FURTHER CERTIFY that the Note is not a private activity bond within the meaning of Sections 141 through 150 of the federal Internal Revenue Code of 1986, as amended (the "Code"). WE FURTHER CERTIFY, for purposes of the designation of the Note as a "qualified tax- exempt obligation" for purposes of Section 265(b)(3) of the Code, and for purposes of the exception to the federal arbitrage rebate requirement for governmental units issuing $5,000,000 or less of bonds set forth at Section 148(f)(4)(D) of the Code, that the City and all subordinate entities thereof and all entities treated as one issuer with the City have issued no bonds or other obligations in this calendar year 2025 other than the Note, and expect to issue no additional bonds or other obligations in 2025 which, together with the Note, would exceed $5,000,000. The City is treated as one issuer with all entities which issue obligations on behalf of the City and any entity formed to avoid the $5,000,000 limitation with respect to the City and all other entities benefiting thereby, and is treated as issuing all bonds issued by a subordinate entity. 56 177113049v1 Jufn!7/ WE FURTHER CERTIFY, for purposes of filing the federal Information Return for Tax- Exempt Governmental Bond Issues, Form 8038-G, that the City's federal employer identification number is 41-6007700. Dated: November 12, 2025. 2 57 177113049v1 Jufn!7/ CITY OF FRIDLEY, MINNESOTA By ____________________________________ Its Mayor By ____________________________________ Its City Manager Signature Page to Signature and Nonlitigation Certificate City of Fridley, Minnesota $2,938,350 General Obligation Water Revenue Note of 2025A 3 58 177113049v1 Jufn!7/ CITY MANAGER'S RECEIPT CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A I, the undersigned, being the duly qualified and acting City Manager of the City of Fridley, Anoka County, Minnesota DO HEREBY CERTIFY AND ACKNOWLEDGE that on the date hereof the City received non-monetary consideration from the Minnesota Public Facilities Authority upon the delivery of the City's $2,938,350 General Obligation Water Revenue Note of 2025A (the "Note"), and did thereupon deliver the Note to the Minnesota Public Facilities Authority. Dated: November 12, 2025. 4 59 177113049v1 Jufn!7/ CITY OF FRIDLEY, MINNESOTA By ____________________________________ Its City Manager Signature Page to City Manager’s Receipt City of Fridley, Minnesota $2,938,350 General Obligation Water Revenue Note of 2025A 5 5: 177113049v1 Jufn!7/ NOTE REGISTER CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A The ownership of the unpaid principal amount of the above Note and the interest accruing thereon is registered on the books of the City of Fridley, Minnesota, in the name of the holder last noted below. DATE OF NAME AND ADDRESS OF SIGNATURE OF REGISTRATION REGISTERED OWNER CITY MANAGER Minnesota Public Facilities Authority Saint Paul, Minnesota Federal Employer Identification November 12, 2025No. 41-6007162 61 177113049v1 Jufn!7/ CERTIFICATE OF BORROWER CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A This certificate is submitted in connection with the loan from the Minnesota Public Facilities Authority (the "PFA") to the City of Fridley, Minnesota (the "City"), pursuant to the PFA's Drinking Water Revolving Fund program. The loan is being made pursuant to a Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement, dated October 3, 2025 (the "PFA Loan Agreement"), by and between the PFA and City, and is evidenced by the City's $2,938,350 General Obligation Water Revenue Note of 2025A (the "Note"). We, the undersigned, hereby represent and warrant on behalf of the City as follows: 1.Authority. We have been duly authorized to sign this certificate for and on behalf of the City. 2.Organization. The City is duly organized as a municipal corporation and validly existing under the Constitution and laws of the State of Minnesota. 3.Due Adoption. The resolution authorizing the execution and delivery of the PFA Loan Agreement and Note was duly adopted at a meeting of the governing body of the City which was called and held pursuant to law and at which a quorum was present and acting throughout. 4.No Conflict or Breach. The execution and delivery of the PFA Loan Agreement and the Note and compliance with the provisions thereof, under the circumstances contemplated thereby, will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or any existing law, administrative legislation, court order or consent decree to which the City is subject. 5.No Litigation. There is no litigation now pending or, to my knowledge, threatened (a) to restrain or enjoin the issuance or delivery of the Note or the collection of revenues pledged under the Note, (b) in any way contesting or affecting any authority for the execution of the PFA Loan Agreement and the issuance of the Note or the validity of the Note, or (c) in any way contesting the existence or powers of the City with respect to the issuance of the Note or the security therefor. 6.Authorization; Enforceability. The PFA Loan Agreement and the Note have been duly authorized, executed and delivered and, assuming with respect to the PFA Loan Agreement the due authorization, execution and delivery thereof by the PFA, constitute binding and enforceable agreements of the City in accordance with their terms except to the extent limited by state and federal laws, rulings, decisions, and principles of equity affecting remedies and by bankruptcy, reorganization and other laws of general application relating to or affecting enforcement of creditors' rights. 7.Validity; Enforceability. The Note is a valid and binding full faith and credit general obligation of the City and all of the taxable property within the City's jurisdiction is subject to the levy of an ad valorem tax to pay the same without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Note and the pledge of net revenues of the 62 177113049v1 Jufn!7/ municipal water system (the "Water System") for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. 8.Information Provided to PFA. The City has duly authorized, and hereby consents to, the use of the information concerning the City provided in the City's application for the loan. The statements and information concerning the City provided in the City's application for the loan or otherwise provided to the PFA do not contain an untrue statement of a material fact or omit to state a material fact necessary to make such statements, in light of the circumstances under which they were made, not misleading. 9.Notification about Changes. The City covenants that it will notify the PFA immediately if it becomes aware of any changes or events which occur which cause the information contained in the City's application for the loan or otherwise provided to the PFA to contain an untrue statement of a material fact or omit to state a material fact necessary to make such statements, in light of the circumstances under which they were made, not misleading. 10.Scope of Statement. The City has not verified or reviewed, and is not passing upon and does not accept responsibility for, any information in any Official Statement or other offering material of the PFA relating to its bonds, other than as set forth above. 11.Purpose. The Note is being issued pursuant to Minnesota Statutes, Chapters 444 and 475 for the purpose of providing funds to finance a WTP addition that will include installation of a GAC treatment system and GAC vessels, associated mechanical and electrical components, all as detailed in the Minnesota Department of Health's certification, dated May 7, 2025 (the "Project"). All costs of the Project to be paid or reimbursed with the proceeds of the Note have been or will be incurred after the date on which the City took some official action determining to finance the costs of the Project. 12.Yield. The Note is being sold to the PFA for a purchase price of $2,938,350 to be disbursed for costs of the Project as provided in the PFA Loan Agreement. The Note may be purchased with or allocated to the proceeds of bonds issued by the PFA (the "PFA Bonds"), and the PFA's receipts under the Note may be used to pay the PFA Bonds. The interest rate on the Note is 2.413%. The yield on the Note is not determinable at the time of issuance; however, the City has agreed to calculate the yield on the Note at the time or times and in the manner required by the Regulations. The City in the Resolution has covenanted not to invest any funds in its possession which are considered gross proceeds of the PFA Bonds under the applicable regulations, a yield in excess of the yield on the applicable PFA Bonds. 13.Proceeds. The "Resolution Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $2,938,350 General Obligation Water Revenue Note of 2025A, Providing for its Issuance and Authorizing Execution of a Bond Purchase and Project Loan Agreement” (the "Note Resolution"), adopted on October 27, 2025, creates a special fund of the City designated the "Water Fund" (the "Fund"), and creates separate accounts within the Fund, the "PFA Construction Account" and "PFA Debt Service Account" relating to the Note and continues the previously established "Operation and Maintenance Account". There will be deposited in the PFA 2 63 177113049v1 Jufn!7/ Construction Account the proceeds of the Note as they are disbursed. Moneys in the PFA Construction Account will be used to finance costs and expenses of the Project. Construction of the Project will be pursued with due diligence to completion thereof, and all of the proceeds of the Note are expected to be spent on or before June 1, 2027. Proceeds of the Note in an amount equal to the face amount of the Note will not exceed the estimated dollar cost of the Project less any other funds to be expended for paying such costs. In accordance with the PFA Loan Agreement, the City will request disbursements only for costs of the Project which have been temporarily paid by the City or which are due and payable and will disburse reimbursements immediately upon receipt. The City does not expect to hold and invest any amounts in the PFA Construction Account. The proceeds of the Note are expected to be disbursed by the City to pay costs of the Project upon receipt of the proceeds thereof. 14.Net Revenues. The PFA Debt Service Account has been established for payment of principal of and interest on the Note. Revenues of the City's Water System will be deposited in the Operation and Maintenance Account of the Water Fund and after payment of costs of operation and maintenance constitute "net revenues". The following are pledged to, and will be deposited in, the PFA Debt Service Account upon receipt: (a) net revenues of the Water System in an amount sufficient to pay the principal of and interest on the Note when due; (b) any collections of general ad valorem taxes hereafter levied for the payment of the Note; (c) all investment earnings on moneys held in the PFA Debt Service Account; (d) any funds remaining in the PFA Construction Account after the acquisition and installation of the Project and payment of the costs thereof; and (e) any other moneys which are properly available and are appropriated by the City Council of the City to the PFA Debt Service Account. Debt service on the Note has been scheduled for payment of the highest practical amount of debt service in each year. If the amount on deposit in the PFA Debt Service Account ever exceeds the aggregate amount of principal and interest due and payable from the PFA Debt Service Account within the next succeeding twelve months (taking into account any amounts paid over to the PFA during such period), such excess shall be invested at a yield less than or equal to the yield on the PFA Bonds as determined by the PFA. 15.Other Funds. There are no funds, other than the funds referred to above, which the City expects to use to pay principal of, and interest on, the Note. There is no reasonable assurance that any funds, other than the funds referred to above, will be available to pay principal of, and interest on, the Note. 16.Rebate Requirement. The City acknowledges that it is obligated to calculate and pay any rebate with respect to the gross proceeds of the Note in accordance with the Code and Regulations. On or before March 1 of each year, the City shall report to the PFA the principal amount, maturity date, date of purchase, purchase price, yield on investments and interest earnings on any funds which constitute gross proceeds of the PFA Bonds and a statement of source and intended application of such funds for the preceding calendar year. Thereafter, the PFA will provide to the City a calculation showing any rebate amount required with respect to such gross proceeds and the investment earnings thereon. Within thirty days of receipt of such calculation, the City shall remit to the PFA an amount equal to such rebate amount. Dated: November 12, 2025. 3 64 177113049v1 Jufn!7/ CITY OF FRIDLEY, MINNESOTA By ____________________________________ Its Mayor By ____________________________________ Its City Manager Signature Page to Certificate of Borrower City of Fridley, Minnesota $2,938,350 General Obligation Water Revenue Note of 2025A 4 65 177113049v1 Jufn!7/ NONARBITRAGE CERTIFICATE CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A The undersigned are the duly qualified and acting Mayor and City Manager of the City of Fridley, Anoka County, Minnesota (the "City"), charged, either alone or with others, with the responsibility of issuing the City's $2,938,350 General Obligation Water Revenue Note of 2025A, dated the date hereof (the "Note"). The Note has been sold to the Minnesota Public Facilities Authority (the "PFA") and the undersigned acknowledge that the PFA may fund all or any portion of the purchase price of the Note from the proceeds of bonds issued by the PFA (the "PFA Bonds"). This Certificate is being executed in accordance with the income tax regulations relating to arbitrage bonds (the "Regulations") and may be relied upon as a certification under Section 1.148-2(b)(2) of the Regulations and under Section 148 of the federal Internal Revenue Code of 1986, as amended (the "Code"). This Certificate also demonstrates that the Note is not a hedge bond within the meaning of the Code and Regulations. The undersigned, having made an investigation of the facts, circumstances and estimates pertaining to and in connection with the Note, hereby certify in good faith and reasonably expect as follows with respect to the Note: 1.General. This Certificate addresses the proceeds of the Note and the fund and accounts relating to the Note, and demonstrates that the City does not reasonably expect to use any portion of the proceeds of the Note directly or indirectly to acquire higher yielding investments or replace funds which were used directly or indirectly to acquire higher yielding investments, except to the extent permitted (a) in tax-exempt bonds, (b) for allowed temporary periods, and (c) in an amount which does not exceed the lesser of five percent of the sale proceeds of the issue or $100,000 (the "minor portion"). It also demonstrates that (a) the City is not subject to the requirement to rebate to the United States certain investment earnings, and (b) the Note is not a hedge bond within the meaning of the Code and Regulations. The Note is issued as a new money issue to finance the Project defined below. The City does not elect to waive the right to invest in higher yielding investments during temporary periods. 2.Purpose; Single Issue. The proceeds of the Note will be used to finance improvements for the municipal water system (the "Water System"), specifically to finance a WTP addition that will include installation of a GAC treatment system and GAC vessels, associated mechanical and electrical components, all as detailed in the Minnesota Department of Health's certification, dated May 7, 2025 (the "Project"). The Project constitutes a "capital project" under Section 1.148-1(b) of the Regulations. Further, the Note is not combined with any other obligations as a single issue. No other obligations which are secured by a pledge of revenues of the City’s Water System or by a pledge of the City's full faith and credit (or a substantially similar pledge) will be sold and issued pursuant to a single offering document on the same dates as the Note. 3.Proceeds and Uses. The Note was delivered on the date of this Certificate, and will be paid for as advances up to its $2,938,350 maximum amount are made. The total proceeds to be received by the City Manager on behalf of the City on the sale of the Note of $2,938,350, together 66 177113049v1 Jufn!7/ with earnings thereon estimated to amount to $-0- until such proceeds are expended, do not exceed the total of: a)$2,923,350, the estimated total financeable costs of the acquisition and construction of the Project; and b)$15,000, the expenses anticipated to be incurred in connection with the issuance of the Note. The Note is not publicly offered and the PFA is purchasing the Note at par. Consequently, the "issue price" of the Note will be $2,938,350, or so much thereof as is disbursed. The "sale proceeds" of the Note, within the meaning of the Regulations, will be $2,938,350, or so much thereof as is advanced. The "net sale proceeds" of the Note will be $2,938,350, or so much thereof as is advanced, being sale proceeds less the portion of those sale proceeds invested in a replacement fund (here none) and as part of a minor portion (here initially none). There are no replacement proceeds of the Note within the meaning of Section 1.148-1(c)(1) or (4) of the Regulations. For purposes of the safe harbor against the creation of certain replacement proceeds provided by Section 1.148-1(c)(4)(i)(B) of the Regulations, the Note has a weighted average maturity that does not exceed one hundred twenty percent of the average reasonably expected economic life of the financed capital project (being the Project), determined in the same manner as under Section(b) of the Code. If the City invests any proceeds or replacement proceeds of the Note in a commingled fund as defined in Section 1.148-1(b) of the Regulations, the City will comply with Section 1.148-6(e) of the Regulations. 4.Governmental Purposes; No Over-issuance. The stated purposes of the Note are governmental purposes within the meaning of applicable law and regulations. Proceeds of the Note in an amount equal to the sale proceeds of the Note, together with estimated earnings thereon (of which none are expected), will not exceed the estimated dollar cost of financing and constructing the Project less all other funds to be expended for paying such costs. 5.Reimbursements. The City recognizes that the arbitrage regulations apply to the proceeds of the Note until they are expended for the purposes for which the Note is issued. The City will only make reimbursements which are (a) treated as expenditures under Section 1.150-2 of the Regulations, or (b) within the minor portion set forth in paragraph 10. Each reimbursement allocation must be made within the period ending on the date which is the later of eighteen months after payment of the expenditure to be reimbursed or one year after the date on which the Project is first placed in service, but not later than three years after the date of the expenditure to be reimbursed. Reimbursement allocations must be made in a writing that evidences the City's use of proceeds of the Note to reimburse the expenditure and, if made within thirty days after the Note is issued, will be treated as made on the day the Note is issued. 6.Fund and Accounts. The Note is payable from the City's Water Fund (the "Fund"), which Fund contains the following accounts relating to the Note: a "PFA Construction Account" (for the construction of the Project), an "Operation and Maintenance Account" (for the payment of operation and maintenance costs of the Water System and the determination of net revenues pledged 2 67 177113049v1 Jufn!7/ to the payment of the Note) and a "PFA Debt Service Account" (for payment of debt service on the Note). Operation of each of these accounts is described herein. 7.PFA Construction Account: Time Test; Due Diligence Test; Expenditure Test. This paragraph demonstrates the availability of a temporary period for the construction of the Project for the "net sale proceeds" and "investment proceeds" of the Note. The costs of constructing the Project and issuing the Note will be paid from the PFA Construction Account, to which will be credited $2,938,350 of the proceeds of the Note, or so much thereof as is advanced and not immediately spent, and to which will be credited interest earnings on amounts in the PFA Construction Account; provided that the City reasonably expects that most of the proceeds of the Note will be advanced in reimbursement of costs or in direct payment of costs and will not be credited to the PFA Construction Account. The City reasonably expects to satisfy the time test, the due diligence test and the expenditure test as set forth below: a)Time Test. Substantial binding obligations to third parties to expend not less than five percent (5%) of the net proceeds of the Note on the Project have heretofore been entered into or made or will be entered into or made within six months from the date hereof, an amount which is at least five percent (5%) of the net sale proceeds of the Note. All such contracts are, or will be, binding obligations of the City, and are not subject to contingencies within the control of the City or a related third party. b)Due Diligence Test. The Project and the allocation of the net sale proceeds of the Note to expenditures have proceeded, and will continue to proceed, with due diligence to completion. The Project is estimated to be completed by June 1, 2027. All the proceeds of the Note and earnings thereon deposited in the PFA Construction Account are expected to be expended by such date. c)Expenditure Test. Any contract or commitment for the acquisition and construction of the Project heretofore or hereafter executed has provided or will provide for the acquisition and construction of the Project in less than three years from the date hereof; and proceeds of the Note in an amount equal to at least eighty-five percent of the net sale proceeds of the Note will be allocated to expenditures in paying the cost of the acquisition and construction of the Project within three years from the date hereof. d)Costs of Issuance; Transfer. The costs of issuing the Note will be incurred and paid within three years from the date hereof. Any moneys remaining in the PFA Construction Account after completion of the Project and payment of the costs of issuing the Note will be transferred to the PFA Debt Service Account unless transferred to the fund of any other project as authorized by law. e)Investments; Construction Temporary Period. Moneys in the PFA Construction Account will be invested for a temporary period extending until the date which is three years from the date hereof. The City shall invest amounts in the PFA Construction Account at a yield not materially higher than the yield on the Note (directly or through, if applicable, yield reduction payments authorized by Section 1.148-5(c) of the Regulations) or in obligations the interest on which is exempt from federal income taxation under Section 103(a) of the Code and is not subject to the federal alternative minimum tax as a preference item ("tax-exempt bonds") if and to the extent moneys remain therein after three years from the date hereof and are, together with those moneys in the PFA Debt Service Account which are not entitled to a temporary period, in excess of the minor portion set forth in paragraph 10. 3 68 177113049v1 Jufn!7/ f)Investment Proceeds. In addition, investment proceeds qualify for a temporary period of one year beginning on the date of receipt if such period is longer than the three year period set forth above. 8.Operation and Maintenance Account; Transfer of Moneys Therein. All gross revenues and earnings derived from the operation of the Water System, including all rates and charges for service, use and availability of and connection to the Water System, when collected, and all moneys received from the sale of any facilities or equipment of the Water System or by-products thereof, shall be credited to the Operation and Maintenance Account. The costs of operating and maintaining the Water System shall be paid from the Operation and Maintenance Account. All moneys remaining in the Operation and Maintenance Account after paying or providing moneys for the operation and maintenance of the Water System shall constitute "net revenues" and shall be transferred to the PFA Debt Service Account, but only in amounts sufficient to pay principal and interest on the Note. Excess net revenues may be used for any other proper purpose. The City reasonably expects that amounts held in the Operation and Maintenance Account and not transferred to the PFA Debt Service Account will not be available or used to pay debt service on the Note. 9.PFA Debt Service Account: Funding; Investment Covenants. The Note and the interest thereon are payable from the PFA Debt Service Account. There shall be credited to the PFA Debt Service Account: (a) net revenues in an amount sufficient, with other moneys, to pay the principal of and interest on the Note; (b) all collections of any taxes which may hereafter be levied with respect to the Note; (c) all investment earnings on moneys in the PFA Debt Service Account; (d) any amounts transferred from the PFA Construction Account; and (e) any and all other moneys which are properly available and are appropriated by the governing body of the City to the PFA Debt Service Account. The City has covenanted that no portion of the proceeds of the Note shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (a) for a reasonable temporary period until such proceeds are needed for the purpose for which the Note was issued, and (b) in addition to the above in an amount not greater than the lesser of five percent of the sale proceeds of the Note or $100,000. To this effect, the City has also covenanted that any proceeds of the Note and any sums from time to time held in the PFA Construction Account, the Operation and Maintenance Account and PFA Debt Service Account (or any other account of the City which will be used to pay debt service on the Note) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield (after taking into account any applicable temporary periods or minor portion) shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments. Besides the PFA Debt Service Account, there is no other fund or account of cash or securities which the City has set aside and expects to invest or maintain at a yield greater than the yield on the Note for the purpose of paying debt service on the Note. 10.PFA Debt Service Account: Bona Fide Debt Service Fund; Minor Portion; Temporary Periods; Yield. This paragraph demonstrates the availability of temporary periods for moneys credited to the PFA Debt Service Account. 4 69 177113049v1 Jufn!7/ The Note and the interest thereon are payable from the PFA Debt Service Account. The PFA Debt Service Account is a sinking fund (within the meaning of Section 1.148-1(c)(2) of the Regulations which serves as a bona fide debt service fund (within the meaning of Section 1.148-1(b) of the Regulations) used primarily to achieve a proper matching of revenues with principal and interest payments within each bond year and is depleted at least once each bond year except for a reasonable carryover amount not to exceed the greater of the earnings on the fund for the immediately preceding bond year or one-twelfth of the principal and interest payments on the Note for the immediately preceding bond year. The PFA Debt Service Account is expected to perform as a bona fide debt service fund. Amounts deposited in the PFA Debt Service Account which are to be used to pay debt service on the Note within twelve months of their receipt (or which are a reasonable carryover amount with respect thereto) will be invested without regard to yield for a temporary period not longer than thirteen months. Receipts in the PFA Debt Service Account which will not be used to pay debt service on the Note within thirteen months of their receipt (or which are not such a reasonable carryover amount) will be invested without regard to yield to the extent they (together with any moneys in the PFA Construction Account after three years from the date hereof) do not exceed a minor portion with respect to the Note, in an amount equal to $146,917.50 (or five percent (5%) of so much of the Note as is disbursed if less than $2,938,350), which is the lesser of $100,000 or five percent of the sale proceeds of the Note. All other receipts in the PFA Debt Service Account and any other replacement proceeds (none of which are expected), may be invested without regard to yield for a temporary period of thirty days from receipt. Amounts in the PFA Debt Service Account which are not entitled to a temporary period or within said minor portion will be invested at a yield not materially higher than the yield on the Note (directly or through, if applicable, yield reduction payments authorized by Section 1.148-5(c) of the Regulations), which yield will be calculated if and when such calculation becomes necessary, or will be invested without regard to yield in tax-exempt bonds (as defined in paragraph 7). 11.Yield Determination; Materially Higher. The City shall, for purposes of determining the yield on the Note and yield which is materially higher than such yield, make calculations on the basis of the issue price of the Note within the meaning of Section 1273 or 1274 of the Code. That price has been determined as $2,938,350 or such lesser amount as shall be advanced on the Note. A "materially higher" yield is understood to be one-eighth of one percent (0.125%) in most circumstances, but only one thousandth of one percentage point (0.001%) higher than the yield on the Note for a sinking fund or other replacement proceeds or other gross proceeds. The yield of the Note is variable because the draw schedule for the Note is undetermined. Because the Note is a "variable rate issue", as defined in Section 1.148-1(b) of the Regulations, yield will be computed as provided in Section 1.148-4 of the Treasury Regulations separately for each rebate computation period as necessary. 12.No Rebate. The City is a small issuer not subject to the rebate requirement imposed by Section 148(f) of the Code by reason of issuing (together with all subordinate entities thereof, and all entities treated as one with the City) less than $5,000,000 of tax-exempt governmental obligations during the calendar year as provided in Section 148(f)(4)(D) of the Code. 5 6: 177113049v1 Jufn!7/ 13.Reimbursement Expenditures. $______________ of the proceeds of the Note will be used to reimburse the City for reimbursement expenditures. The official intent declaration of the City was dated __________________. ORUSE None of the proceeds of the Note will be used to reimburse the City for reimbursement expenditures. OR USE $_________ of the proceeds of the Note will be used to reimburse the City for reimbursement expenditures, which expenditures are subject to the preliminary expenditures exception under §1.150-2(f)(2). 14.Bond Year. The City retains the ability to select a day on which each bond year ends. Section 1.148-1(b) of the Regulations provides that if no day is selected by the City before the earlier of the final maturity date of the issue or the date that is five years after the issue date, bond years end on each anniversary of the issue date and on the final maturity date. 15.Intentional Acts. The City shall not take any deliberate, intentional action after the date hereof to earn arbitrage profit except to the extent such action would not have caused the Note to be an arbitrage bond had it been reasonably expected on the date hereof. 16.Not Hedge Bond. The Note is not a hedge bond within the meaning of Section 149(g) of the Code, because (a) the City reasonably expects that eighty-five percent of the spendable proceeds of the Note will be used to carry out the governmental purposes of the Note within the three year period beginning on the date hereof, and (b) not more than fifty percent of the proceeds of the Note is invested in nonpurpose investments having a substantially guaranteed yield for four years or more. 17.Basis For Expectations. The facts and estimates on which the foregoing expectations are based are (a) the documents included in the "Note Transcript" prepared for the Note Closing, (b) all engineering and architectural estimates, drawings, reports and plans and specifications heretofore furnished the City with respect to the Project, (c) all contracts, if any, heretofore executed for the acquisition and construction of the Project, (d) all expenditures which were heretofore made by the City for the acquisition and construction of the Project and which are to be reimbursed out of the proceeds of the Note, and (e) such other facts and estimates, if any, as may be set forth in an Exhibit A attached hereto; if any. 18.No Abusive Arbitrage Device. No "abusive arbitrage device" within the meaning of Section 1.148-10 of the Regulations is used in connection with the Note. No action relating to the Note has the effect of (a) enabling the City to exploit the difference between tax-exempt and taxable interest rates to obtain a material financial advantage, and (b) overburdening the tax-exempt market. 19.Monitoring of Expenditures and Investments. The City will monitor the investment of note proceeds to assure compliance with Section 148 of the Code, and the City will consult with bond counsel periodically with regard to arbitrage issues and compliance. 20.No Other Facts. To the best of the knowledge and belief of the undersigned, there are no other facts, estimates or circumstances which would materially change the foregoing facts and conclusions. 21.Familiarity; Conclusion. We are generally familiar with the requirements of the Regulations, and nothing has been called to our attention to cause us to believe that the proceeds of the Note will be used in a manner which would cause the Note to be an arbitrage bond within the 6 71 177113049v1 Jufn!7/ meaning of Section 148 of the Code or a hedge bond within the meaning of Section 149(g) of the Code. Dated: November 12, 2025. 7 72 177113049v1 Jufn!7/ CITY OF FRIDLEY, MINNESOTA By ___________________________________ Its Mayor By ___________________________________ Its City Manager Signature Page to Nonarbitrage Certificate City of Fridley, Minnesota $2,938,350 General Obligation Water Revenue Note of 2025A 8 73 177113049v1 Jufn!7/ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A THE CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA (the "City"), certifies that it is indebted and for value received promises to pay to the Minnesota Public Facilities Authority or the registered assign, the principal sum of TWO MILLION NINE HUNDRED THIRTY EIGHT THOUSAND THREE HUNDRED FIFTY DOLLARS, or so much thereof as may have been disbursed, on August 20 of the years and in the installments as follows: YearAmountYearAmount 2026$54,3502036$150,000 2027121,0002037154,000 2028124,0002038158,000 2029127,0002039162,000 2030130,0002040166,000 2031134,0002041170,000 2032137,0002042174,000 2033140,0002043178,000 2034143,0002044182,000 2035147,0002045187,000 and to pay interest on so much of the principal amount of the debt as may be disbursed and remains unpaid until the principal amount hereof is paid or has been provided for, at the rate of 2.413% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Note is payable semi-annually on February 20 and August 20, commencing August 20, 2026. Interest starts accruing as of the date of the initial disbursement. Principal and Interest Payments. Interest shall accrue only on the aggregate amount of this Note which has been disbursed under the Minnesota Public Facilities Authority Bond Purchase and Project Loan Agreement, dated as of October 3, 2025, by and between the City and the Minnesota Public Facilities Authority (the "PFA Loan Agreement"). The principal installments shall be paid in the amounts scheduled above even if at the time of payment the full principal amount of this Note has not been disbursed; provided that if the full principal amount of this Note is never disbursed, the amount of the principal not disbursed shall be applied to reduce each unpaid principal installment in the proportion that such installment bears to the total of all unpaid principal installments (i.e., the remaining principal payment schedule shall be reamortized to provide similarly level annual installments of total debt service payments). Interest on this Note includes amounts treated by the Minnesota Public Facilities Authority as service fees. Principal, interest and any premium due under this Note will be paid on each payment date by wire payment, or by check or draft mailed at least five business days prior to the payment date to the person in whose name this Note is registered, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. 74 177113049v1 Jufn!7/ Redemption. This Note shall be subject to redemption and prepayment in whole or in part at the option of the City, subject to the written consent of the Minnesota Public Facilities Authority, or mandatorily as provided in the PFA Loan Agreement. Purpose; General Obligation. This Note has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota for the purpose of providing money to finance the construction of improvements to the municipal water system (the "Water System"), specifically for a WTP addition that will include installation of a GAC treatment system and GAC vessels, associated mechanical and electrical components, all as detailed in the Minnesota Department of Health's certification, dated May 7, 2025 (the "Project"); and is payable out of the PFA Debt Service Account of the Water Fund of the City, to which account have been pledged net revenues of the Water System. This Note constitutes a general obligation of the City, and to provide moneys for the prompt and full payment of said principal installments and interest when the same become due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. Registration; Transfer. This Note shall be registered in the name of the payee on the books of the City by presenting this Note for registration to the City Manager, who will endorse his or her name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Note may be transferred to a bona fide purchaser only by delivery with an assignment duly executed by the registered owner or the registered owner's legal representative, and the City may treat the registered owner as the person exclusively entitled to exercise all the rights and powers of an owner until this Note is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the City Manager. Fees Upon Transfer or Loss. The City Manager may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer of this Note and any legal or unusual costs regarding transfers and lost notes. Bond Purchase and Project Loan Agreement. The terms and conditions of the PFA Loan Agreement are incorporated herein by reference and made a part hereof. The PFA Loan Agreement may be attached to this Note, and shall be attached to this Note if the holder of this Note is any person other than the Minnesota Public Facilities Authority. Tax-Exempt Obligation. The City intends that the interest on this Note will be excluded from gross income for United States income tax purposes or from both gross income and taxable net income for State of Minnesota income tax purposes. Qualified Tax-Exempt Obligation. This Note has been designated by the City as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the federal Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has 2 75 177113049v1 Jufn!7/ covenanted and agreed with the holder of this Note that it will impose and collect charges for the service, use and availability of and connection to the Water System at the times and in amounts necessary to produce net revenues adequate to pay all principal and interest when due on this Note; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the installments of principal and interest on this Note as they respectively become due, if the net revenues from the Water System and any other revenues irrevocably appropriated to said PFA Debt Service Account are insufficient therefor; and that this Note, together with all other debts of the City outstanding on the date hereof, being the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the manual signatures of its Mayor and of its City Manager, and the corporate seal of the City having been intentionally omitted as permitted by law, all as of November 12, 2025. CITY OF FRIDLEY, ANOKA COUNTY, MINNESOTA Mayor City Manager 3 76 177113049v1 Jufn!7/ CERTIFICATE OF REGISTRATION CITY OF FRIDLEY, MINNESOTA $2,938,350 GENERAL OBLIGATION WATER REVENUE NOTE OF 2025A The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF SIGNATURE OF REGISTRATION REGISTERED OWNER CITY MANAGER Minnesota Public Facilities Authority Saint Paul, Minnesota Federal Employer Identification November 12, 2025No. 41-6007162 4 77 177113049v1 Jufn!8/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City CouncilMeeting Submitted By:Rebecca Hellegers, Director of Employee Resources Title ResolutionNo.2025-145,Authorizing the Cityof Fridleyto Enter intoa Contract with MetLife to Provide Short-TermDisability, Long-Term Disability, Life Insurance, and a Private Plan for Minnesota Paid Family and Medical Leave Coverage for City Employees Background Beginning in 2026, aState of Minnesotastatutory requirement to offer paid family and medical leave will go into effect. The new legislation allows employers to elect the state-run plan or a private carrier to administer the program. City of Fridley (City) staff receivedproposals from severalinsurance carriers offering paid leave and ancillary plans. In review of the proposals, as well as presentations on what the claims experience will look like, staffdetermined that a private plan is a better fit for organization. After consideration of proposals from other carriers, the private carrier selected is MetLife, which offers a competitive premium, strong claims experience for both employees and employers, and experience in administering state paid leave programs in 11 other states. With this selection, the additional ancillary lines (short-term disability, long-term disability, life insurance) will also be administered by MetLife. Financial Impact The financial impact is projected to be $29,300 for the addition of the statutorilyrequired Minnesota Paid Family and Medical Leave and the decreased costs associated with the three ancillary line coverages. Recommendation Staff recommends approval of ResolutionNo.2025-145,Authorizing the Cityof Fridleyto Enter Into a Contract with MetLife to Provide Short-TermDisability, Long-Term Disability, Life Insurance, and a Private Plan for Minnesota Paid Family and Medical Leave Coverage for City Employees. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship X Organizational Excellence Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 78 Jufn!8/ Attachments and Other Resources !Resolution 2025-145 !Proposal from MetLife which outlines terms & conditions of providing Short-Term Disability, Long-Term Disability, Life Insurance, and Minnesota Paid Family and Medical Leave for City Employees. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 79 Jufn!8/ Resolution No. 2025-145 Authorizing the City of Fridley to Enter into a Contract with MetLife to Provide Short-Term Disability, Long-Term Disability, Life Insurance, and a Private Plan for Minnesota Paid Family and Medical Leave Coverage for City Employees Whereas, the City of Fridley (City) is committed to providing comprehensive and competitive employee benefits that support the health, well-being, and financial security of its workforce; and Whereas, the City has reviewed available insurance providers and determined that entering into a contract with MetLife for short-term disability, long-term disability, life insurance, and a private plan for Minnesota Paid Family and Medical Leave will best serve the interests of the City and its employees; and Whereas, the proposed private plan for Minnesota Paid Family and Medical Leave complies with the requirements set forth in Minn. Stat. § 268B.12; and Whereas, the proposal has been reviewed by City staff and deemed to be in compliance with applicable laws, regulations, and procurement policies. Now, therefore be it resolved, that the City Council of the City of Fridley hereby authorizes entering into a contract with MetLife for the provision of short-term disability, long-term disability, life insurance, and a private plan for Minnesota Paid Family and Medical Leave for eligible City employees and the City Manager is authorized to execute the contract and any related documents necessary to implement the agreement after review by the City Attorney. Passed and adopted by the City Council of the City of Fridley this 27th day of October, 2025. ________________________________________ Dave Ostwald Mayor Attest: ________________________________________ Melissa Moore City Clerk 7: Jufn!8/ ! ! ! ! ! ! ! ! ! ! ! Djuz!Pg!Gsjemfz! ! Basic Life, Basic AD&D, Supplemental Term Life, Supplemental Term AD&D, Supplemental Dependent Life, Supplemental Dependent AD&D, Short Term Disability, Long Term Disability! ! ! ! Qspqptbm!qspevdfe!po!Pdupcfs!24-!3136! Uijt!rvpuf!jt!wbmje!gps!:1!ebzt!gspn!ebuf!pg!qspqptbm! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!2!pg!47!Q2:16594/26:2978/! ! 81 Jufn!8/ ! ! City Of Fridley! Rate Summary! ! Bt!sfrvftufe-!uif!rvpuf!pvumjofe!cfmpx!jt!gps!Djuz!Pg!Gsjemfz dvssfou!sbuft!gps!uif!Fnqmpzff.Qbje!dpwfsbhf)t*!bqqfbs!up!tvctjej{f!uif!sbuft!po!uif!Fnqmpzfs.Qbje! dpwfsbhf)t*!ps-!cfdbvtf!ju!xbt!sfrvftufe-!xf!bsf!qspwjejoh!b!Dptu!Sfbmmpdbufe!Rvpuf!)DSR*/!Uif!DSR! jodmveft!b!mpxfs!Fnqmpzfs.Qbje!dpwfsbhf!sbuf!boe!tvctjej{bujpo!cfuxffo!uif!Fnqmpzff!boe!Fnqmpzfs.Qbje! sbuft/!Vomftt!b!DSR!xbt!tpmfmz!sfrvftufe-!xf!bsf!bmtp!qspwjejoh!b!opo.tvctjej{fe!rvpuf/!Djuz!Pg!Gsjemfz! tipvme!dpotvmu!jut!mfhbm!boe!uby!dpvotfm!sfhbsejoh!boz!qpufoujbm!mfhbm!ps!uby!jnqmjdbujpot!pg!uijt!bssbohfnfou! boe!jt!sftqpotjcmf!gps!bqqspqsjbuf!ejtdmptvsf!pg!uijt!bssbohfnfou!up!jnqbdufe!fnqmpzfft!jg!ju!tfmfdut!uif! DSR/! ! hspvq!jotvsbodf!qpmjdz-!dfsujgjdbuf!boe!fospmmnfou!gpsn!)jg!bqqmjdbcmf*!xjmm!tqfdjgz! uif!sbuf!tusvduvsf!eftdsjcfe!cfmpx!jg!uif!DSR!jt!tfmfdufe/! ! Cost Reallocated Quote (CRQ) ! Participating Covered Annual Coverage Rates Lives Volume Premium Life Option 4 7878579! Basic Life! 263!%4-849-861!%6-899! (per $1,000 of Covered Volume)! ! Bmm!Bdujwf!Gvmm!Ujnf!Djuz!Nbobhfst!2!%211-111!%1/23:! ! Bmm!Puifs!Bdujwf!Gvmm!Ujnf!Fnqmpzfft!258!%4-729-861!%1/23:! ! Bmm!Fmjhjcmf!Sfujsfft!5!%31-111!%1/23:! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! ! Basic AD&D! 259!%4-829-861!%9:4! (per $1,000 of Covered Volume)! ! Bmm!Bdujwf!Gvmm!Ujnf!Djuz!Nbobhfst!2!%211-111!%1/131! ! Bmm!Puifs!Bdujwf!Gvmm!Ujnf!Fnqmpzfft!258!%4-729-861!%1/131! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!3!pg!47!Q2:16594/26:2978/! ! 82 Jufn!8/ ! ! Participating Covered Annual Coverage Rates Lives Volume Premium Supplemental Life! 63!%5-:41-111!! ! (per $1,000 of Covered Volume)! ! Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft! !!! ! Mftt!uibo!41!6!%491-111!%1/17:! ! 41.45!23!%2-371-111!%1/22:! ! 46.4:!:!%2-191-111!%1/24:! ! 51.55!8!%821-111!%1/31:! ! 56.5:!7!%841-111!%1/43:! ! 61.65!4!%411-111!%1/64:! ! 66.6:!7!%331-111!%1/94:! ! 71.75!5!%361-111!%2/41:! ! 76.7:!1!%1!%3/22:! ! 81,!1!%1!%4/:7:! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! Important Information concerning Supplemental Life enrollments: Gps!ublf.pwfs!tvqqmfnfoubm!mjgf!qmbot;!Uijt!rvpuf!jodmveft!b!pof.ujnf!tqfdjbm!fospmmnfou/!Qmfbtf!tff!uif!Qmbo! Gfbuvsft!boe!Mjnjubujpot!tfdujpo!gps!efubjmt/! ! ! Supplemental AD&D! ! %1/132! !! (per $1,000 of Covered Volume)! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! ! Supplemental Dependent Life! ! !!! (per $1,000 of Covered Volume)! ! Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft!!!! !!! ! Tqpvtf+; !!! ! Mftt!uibo!41!%1/17:! ! 41.45!%1/22:! ! 46.4:!%1/24:! ! 51.55!%1/31:! ! 56.5:!%1/43:! ! 61.65!%1/64:! ! 66.6:!%1/94:! ! 71.75!%2/41:! ! 76.7:!%3/22:! ! 81,!%4/:7:! ! Dijme!%1/243! !! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! +!Tqpvtf!sbuft!bsf!cbtfe!po!uif!fnqmpzff(t!bhf/! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!4!pg!47!Q2:16594/26:2978/! ! 83 Jufn!8/ ! ! Participating Covered Annual Coverage Rates Lives Volume Premium Important Information concerning Dependent Supplemental Life enrollments: Gps!ublf.pwfs!efqfoefou!tvqqmfnfoubm!mjgf!qmbot;!Uijt!rvpuf!jodmveft!b!pof.ujnf!tqfdjbm!fospmmnfou/!Qmfbtf! tff!uif!Qmbo!Gfbuvsft!boe!Mjnjubujpot!tfdujpo!gps!efubjmt/! ! ! Supplemental Dependent AD&D!! !!! (per $1,000 of Covered Volume) ! Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft! !!! ! Tqpvtf!%1/132! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!5!pg!47!Q2:16594/26:2978/! ! 84 Jufn!8/ ! ! 2 STD Option 2 7853257! Short Term Disability! 259!!%246-779!!%1/166! %9-:65! (per $10 Covered Weekly Benefit)! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139 2 Notice to Residents of New Mexico Employers ! uif!Ofx!Nfyjdp!Pggjdf!pg!Tvqfsjoufoefou!pg!Jotvsbodf!jo!dpoofdujpo!xjui!uif!gjmjoh!qspdftt/ 2 LTD Option 2 7853200! Long Term Disability ! !259 !%:8:-936 !%1/377+ !%42-387! (per $100 Covered Monthly Payroll)! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139! +!Qmfbtf!opuf!uibu!uif!gff!gps!FBQ!tfswjdft!jt!jodmvefe!xjui!zpvs!Ejtbcjmjuz!ps!Mjgf!Jotvsbodf!qsfnjvn!gps!cjmmjoh!dpowfojfodf/!Uif! Fnqmpzff!Bttjtubodf!Qsphsbn!jt!b!opo.jotvsbodf!tfswjdf!tfqbsbuf!gspn!NfuMjgf!jotvsbodf-!pggfsjoh!vq!up!6!dpvotfmjoh!tfttjpot!qfs! jttvf-!boe!tpme!bu!bo!beejujpobm!dibshf!pg!%1/51!QFQN/! ! Fnqmpzff!Bttjtubodf!Qsphsbn!tfswjdft!bsf!qspwjefe!cz!UFMVT!Ifbmui!voefs!bo!bhsffnfou!xjui!NfuMjgf/!UFMVT!Ifbmui!jt!opu!b! tvctjejbsz!ps!bggjmjbuf!pg!NfuMjgf/! 2 Notice to Residents of New Mexico Employers ! uif!Ofx!Nfyjdp!Pggjdf!pg!Tvqfsjoufoefou!pg!Jotvsbodf!jo!dpoofdujpo!xjui!uif!gjmjoh!qspdftt/ NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!6!pg!47!Q2:16594/26:2978/! ! 85 Jufn!8/ ! ! ! ! Summary of Benefits Life / AD&D Insurance!- Life Option 4 ! Basic Life! Bmm!Bdujwf!Gvmm!Ujnf!Djuz!! Nbobhfst!)41!Ipvst* ! ! )ejtbcmfe!qsjps!up!71-!xbjujoh!qfsjpe!:!npouit-! dpwfsbhf!dpoujovft!up!76*! ! dpwfsbhf-!up!b!nbyjnvn!pg!%611-111! Bmm!Puifs!Bdujwf!Gvmm!Ujnf!! Fnqmpzfft!)41!Ipvst* ! ! dpwfsbhf!dpoujovft!up!76*! Dpowfstjpo!boe!Qpsubcjmjuz!bsf!jodmvefe!jo!uijt!rvpuf! dpwfsbhf-!up!b!nbyjnvn!pg!%611-111! Bhf!Sfevdujpo+;!Uif!Fnqmpzfs!jt!sftqpotjcmf!gps!nbljoh!tvsf!uibu!uif!pggfs!pg!jotvsbodf!up!jut!Fnqmpzfft!voefs!uif!qsphsbn! eftdsjcfe!dpnqmjft-!jg!bqqmjdbcmf-!xjui!uif!Bhf!Ejtdsjnjobujpo!jo!Fnqmpznfou!Bdu!pg!2:78-!bt!bnfoefe-!)#BEFB#*-!boe!uif! sfhvmbujpot!uifsfvoefs/!!Uif!Fnqmpzfs!tipvme!tffl!uif!bewjdf!pg!dpvotfm!bt!up!xifuifs!BEFB!bqqmjft!up!uif!qsphsbn!boe-!jg!tp-! xifuifs!ju!jt!jo!dpnqmjbodf!xjui!BEFB!boe!puifs!bqqmjdbcmf!mbxt/!!NfuMjgf!jt!sfrvjsfe!up!dpnqmz!xjui!jotvsbodf!bhf!ejtdsjnjobujpo! mbxt!xifsf!bqqmjdbcmf/! ! +Bmm!sfevdujpot!bsf!bqqmjfe!up!uif!psjhjobm!cfofgju!bnpvou! Bmm!Fmjhjcmf!Sfujsfft!)28/6!! Ipvst* ! ! dpwfsbhf!dpoujovft!up!76*! ! Bddfmfsbufe!Cfofgju!Pqujpo;!opu!jodmvefe! ! Basic AD&D! Bmm!Bdujwf!Gvmm!Ujnf!Djuz!! Nbobhfst!)41!Ipvst* dpwfsbhf!dpoujovft!up!76*! jodmvefe!jo!uijt!rvpuf! Bmm!Puifs!Bdujwf!Gvmm!Ujnf!! Fnqmpzfft!)41!Ipvst* dpwfsbhf!dpoujovft!up!76*! ! Bhf!Sfevdujpo+;!Uif!Fnqmpzfs!jt!sftqpotjcmf!gps!nbljoh!tvsf!uibu!uif!pggfs!pg!jotvsbodf!up!jut!Fnqmpzfft!voefs!uif!qsphsbn! eftdsjcfe!dpnqmjft-!jg!bqqmjdbcmf-!xjui!uif!Bhf!Ejtdsjnjobujpo!jo!Fnqmpznfou!Bdu!pg!2:78-!bt!bnfoefe-!)#BEFB#*-!boe!uif! sfhvmbujpot!uifsfvoefs/!!Uif!Fnqmpzfs!tipvme!tffl!uif!bewjdf!pg!dpvotfm!bt!up!xifuifs!BEFB!bqqmjft!up!uif!qsphsbn!boe-!jg!tp-! xifuifs!ju!jt!jo!dpnqmjbodf!xjui!BEFB!boe!puifs!bqqmjdbcmf!mbxt/!!NfuMjgf!jt!sfrvjsfe!up!dpnqmz!xjui!jotvsbodf!bhf!ejtdsjnjobujpo! mbxt!xifsf!bqqmjdbcmf/! ! +Bmm!sfevdujpot!bsf!bqqmjfe!up!uif!psjhjobm!cfofgju!bnpvou! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!7!pg!47!Q2:16594/26:2978/! ! 86 Jufn!8/ ! ! ! ! Rate per $1,000 Est Volume Est Monthly Est Annual Premium Premium of Covered Volume Basic Life! Bmm!Bdujwf!Gvmm!Ujnf! %1/23:!%211-111!%24!%266! Djuz!Nbobhfst! Bmm!Puifs!Bdujwf!Gvmm! %1/23:!%4-729-861!%578!%6-713! Ujnf!Fnqmpzfft! Bmm!Fmjhjcmf!Sfujsfft!%1/23:!%31-111!%4!%42! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! ! Basic AD&D! Bmm!Bdujwf!Gvmm!Ujnf! %1/131!%211-111!%3!%35! Djuz!Nbobhfst! Bmm!Puifs!Bdujwf!Gvmm! %1/131!%4-729-861!%83!%97:! Ujnf!Fnqmpzfft! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! ! ! Supplemental Term Life! Bmm!Bdujwf!Gvmm!Ujnf!pg!6/11!ujnft!qbz!ps! Fnqmpzfft!)41!Ipvst* %411-111! ! ! ! dpwfsbhf!dpoujovft!up!76*! !jodmvefe!jo!uijt!rvpuf! dpwfsbhf-!up!b!nbyjnvn!pg!%611-111! ! Supplemental Term AD&D! Bmm!Bdujwf!Gvmm!Ujnf!6/11!ujnft!qbz!ps! Fnqmpzfft!)41!Ipvst* %411-111! ! ! dpwfsbhf!dpoujovft!up!76*! ! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!8!pg!47!Q2:16594/26:2978/! ! 87 Jufn!8/ ! ! ! Supplemental Life!Rate per $1,000 Est Volume Est Monthly Est Annual Premium Premium of Covered Volume Mftt!uibo!41!%1/17:!%491-111!%2-499!%27-771! 41.45!%1/22:!%2-371-111!!! 46.4:!%1/24:!%2-191-111!!! 51.55!%1/31:!%821-111!!! 56.5:!%1/43:!%841-111!!! 61.65!%1/64:!%411-111!!! 66.6:!%1/94:!%331-111!!! 71.75!%2/41:!%361-111!!! 76.7:!%3/22:!%1!!! 81,!%4/:7:!%1!!! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! ! Supplemental AD&D! Bmm!Bdujwf!Gvmm!Ujnf! %1/132!!!! 2 Fnqmpzfft!! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! Qmfbtf!opuf!uibu!uif!NfuMjgf!BE'E!jotvsbodf!qsfnjvn!jodmveft!b!gff!gps!uif!Usbwfm!Bttjtubodf!\\boe!Jefoujuz!Uifgu!Tpmvujpot^! tfswjdft-!qspwjefe!cz!BYB!Bttjtubodf!VTB-!Jod/! ! 2! Usbwfm!Bttjtubodf!tfswjdft!bsf!pggfsfe!boe!benjojtufsfe!cz!BYB!Bttjtubodf!VTB-!Jod/!Dfsubjo!cfofgjut!qspwjefe!voefs!uif!Usbwfm! d/! Ofjuifs!BYB!Bttjtubodf!VTB!Jod/! tfqbsbuf!boe!bqbsu!gspn!uif!jotvsbodf!qspwjefe!cz!NfuMjgf/! ! ! Supplemental Dependent Life! Bmm!Bdujwf!Gvmm!Ujnf!Spouse Benefit: Fnqmpzfft!)41!Ipvst*!!!!!! %6-111!jodsfnfout!up!b!nbyjnvn!pg!%411-111-!opu!up!fydffe!211&!pg! ! !!!!B!njojnvn!cfofgju!pg!%6-111! !!!!Tqpvtf!Nfejdbm!Fwjefodf!Mfwfm;!!%36-111! !!!!Tqpvtf!Bddfmfsbufe!Cfofgju!Pqujpo;!23!npouit!ps!mftt!up!mjwf-!vq!up! 91/1&!pg!dpwfsbhf-!up!b!nbyjnvn!pg!%611-111! ! Child Benefit:! Dijme!26!ebzt!up!7!npouit!pme;!!%2-111! Dijme!npsf!uibo!7!npouit!pme;!Pqujpot!pg!%2-111-!%3-111-!%5-111-! %6-111!ps!%21-111/! Dijme!mjnjujoh!bhf;!37-!37!jg!b!gvmm!ujnf!tuvefou! Dijme!Nfejdbm!Fwjefodf!Mfwfm;!!%21-111! ! !!!!!! Op!Bhf!Sfevdujpo !!!!!! Xbjwfs!pg!Qsfnjvn!)ejtbcmfe!qsjps!up!71-!xbjujoh!qfsjpe!:!npouit-! dpwfsbhf!dpoujovft!up!76* !!!!!!!! Dpowfstjpo!boe!Qpsubcjmjuz!bsf!jodmvefe!jo!uijt!rvpuf !! ! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!9!pg!47!Q2:16594/26:2978/! ! 88 Jufn!8/ ! ! ! Supplemental Dependent AD&D! Bmm!Bdujwf!Gvmm!Ujnf!Spouse Benefit: Fnqmpzfft!)41!Ipvst*!!!!!! %6-111!jodsfnfout!up!b!nbyjnvn!pg!%411-111-!opu!up!fydffe!211&!pg! ! !!!!B!njojnvn!cfofgju!pg!%6-111! ! !!!!!! Op!Bhf!Sfevdujpo !!!!!! Xbjwfs!pg!Qsfnjvn!)ejtbcmfe!qsjps!up!71-!xbjujoh!qfsjpe!:!npouit-! dpwfsbhf!dpoujovft!up!76* !!!!!!!! Qpsubcjmjuz!jt!jodmvefe!jo!uijt!rvpuf !! ! ! Supplemental Rate per $1,000 Est Volume Est Monthly Est Annual Dependent Life!Premium Premium of Covered Volume Tqpvtf+;!!!!! Mftt!uibo!41!%1/17:!!! 41.45!%1/22:!!! 46.4:!%1/24:!!! 51.55!%1/31:!!! 56.5:!%1/43:!!! 61.65!%1/64:!!! 66.6:!%1/94:!!! 71.75!%2/41:!!! 76.7:!%3/22:!!! 81,!%4/:7:!!! Dijme++;!%1/243!!!! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! +!Tqpvtf!sbuft!bsf!cbtfe!po!uif!fnqmpzff(t!bhf/! ++!Dijme)sfo*!sbuft!bsf!qfs!%2-111!pg!dpwfsbhf-!qfs!dijme!voju/!B!dijme!voju!nbz!dpotjtu!pg!npsf!uibo!pof!dijme/! ! Supplemental Dependent AD&D! Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft! Tqpvtf!%1/132! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit*! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!:!pg!47!Q2:16594/26:2978/! ! 89 Jufn!8/ ! ! ! Plan Features and Limitations! ! Qpsubcjmjuz;!!Pqujpo!up!dpoujovf!ufsn!jotvsbodf!voefs!b!ejggfsfou!qpmjdz!xifo!dpwfsbhf!ufsnjobuft/!! Njojnvnt-!nbyjnvnt-!boe!puifs!dpoejujpot!bqqmz/!Qpsubcjmjuz!jt!opu!bwbjmbcmf!gps!sftjefout!pg!Bmbtlb/! ! Fnqbuiz+;!Bvupnbujdbmmz!jodmvefe!xjui!Cbtjd!Mjgf-!Tvqqmfnfoubm!Mjgf!boe!Efqfoefou!Tvqqmfnfoubm! Mjgf!bu!op!beejujpobm!dptu!up!uif!fnqmpzfs!ps!fnqmpzff/!!Bwbjmbcmf!jo!bmm!tjuvt!tubuft!fydfqu!OZ/! ! Fnqbuiz!qspwjeft!cfofgjdjbsjft!xjui!tvqqpsu!boe!hvjebodf!cfzpoe!uif!mjgf!dmbjn/!!Fnqbuiz!dbo! qspwjef!uppmt!boe!sftpvsdft!up!ifmq!b!cfofgjdjbsz!nbobhf!hsjfg!evf!up!uifjs!mptt-!qspwjef!hvjebodf!po! qspcbujoh!boe!tfuumjoh!bo!ftubuf-!bttjtu!xjui!dmptjoh!bddpvout!)f/h/-!gjobodjbm-!boe!tpdjbm!nfejb*-! qspwjef!ipnf!dmfbsjoh!sftpvsdft-!boe!npsf/!Cfofgjdjbsjft!dbo!dipptf!up!hfu!uif!tvqqpsu!uifz!offe! pomjof!uispvhi!uif!Fnqbuiz!bqq!ps!xfc!qpsubm-!cz!tqfbljoh!xjui!b!efejdbufe!Fnqbuiz!Dbsf! Nbobhfs-!ps!cz!vtjoh!b!dpncjobujpo!pg!cpui!pqujpot/! ! nfou!tfswjdft!boe!qmbugpsn!bsf!qspwjefe!uispvhi!bo!bhsffnfou!xjui!Uif!Fnqbuiz!Qspkfdu-!Jod/-!)epjoh! cvtjoftt!bt!Fnqbuiz*/!Fnqbuiz!jt!opu!bo!bggjmjbuf!pg!NfuMjgf-!boe!uif!tfswjdft!Fnqbuiz!qspwjeft!bsf!tfqbsbuf!boe!bqbsu!gspn! uif!jotvsbodf!qspwjefe!cz!NfuMjgf/!Uijt!qsphsbn!jt!bwbjmbcmf!up!cfofgjdjbsjft-!boe!jotvsfet!xip!bsf!ufsnjobmmz!jmm!boe!fmjhjcmf! up!bddfmfsbuf!mjgf!qspdffet!voefs!NfuMjgf(t!Bddfmfsbufe!Cfofgju!Pqujpo/!Opu!bwbjmbcmf!po!bmm!qpmjdz!gpsnt!ps!jo!bmm!kvsjtejdujpot/! Fnqbuiz!jt!pomz!bwbjmbcmf!up!jotvsfet!boe!cfofgjdjbsjft!xip!bsf!VT!sftjefout/!Jogpsnbujpo!ejtdmptfe!ejsfdumz!up!Fnqbuiz!jt!opu! ! Hsjfg!Dpvotfmjoh!boe!Gvofsbm!Bttjtubodf!tfswjdft!bsf!qspwjefe!uispvhi!bo!bhsffnfou!xjui!UFMVT!Ifbmui/! 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Uivnc!'!Joefy!Gjohfs!po!uif!36&!36&!36&! Tbnf!Iboe! Tqffdi!boe!Ifbsjoh!211&!211&!211&! Tqffdi!61&!61&!61&! Ifbsjoh!61&!61&!61&! Qbsbmztjt!pg!Cpui!Bsnt!boe!Cpui!211&!211&!211&! Mfht! Qbsbmztjt!pg!Cpui!Mfht!61&!61&!61&! Qbsbmztjt!pg!uif!Bsn!'!Mfh!po!61&!61&!61&! Fjuifs!Tjef!pg!uif!Cpez! Qbsbmztjt!pg!Pof!Bsn!ps!Mfh!36&!36&!36&! Csbjo!Ebnbhf 211&!211&!211&! Dpnb 2&!npouimz!vq!up!71!2&!npouimz!vq!up!71!2&!npouimz!vq!up!71! npouit!npouit!npouit! +!Nbyjnvn!Bnpvou!qbzbcmf!gps!bmm!Dpwfsfe!Mpttft!tvtubjofe!jo!pof!bddjefou!jt!dbqqfe!bu!211&!pg!uif!Gvmm!Bnpvou! Additional Benefits Benefit Basic AD&D!Supplemental AD&D!Supplemental Dependent AD&D! Bjs!Cbh!Vtf 6&!vq!up!%21-111!6&!vq!up!%21-111!6&!vq!up!%21-111! Tfbu!Cfmu!Vtf 21&!vq!up!%36-111!21&!vq!up!%36-111!21&!vq!up!%36-111! Dpnnpo!Dbssjfs 211&!pg!Gvmm!Bnpvou!211&!pg!Gvmm!Bnpvou!211&!pg!Gvmm!Bnpvou! Dijme!Dbsf!Dfoufs %6-111!qfs!zfbs!gps!5!Zst! vq!up!23&!pg!Gvmm!Opu!Bqqmjdbcmf! Bnpvou! ! 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Qpmjdz!fggfdujwf!ebuf-!and!! o B!Xbjwfs!pg!Qsfnjvn!ejtbcjmjuz!dmbjn!xbt!opu!qsfwjpvtmz!bqqspwfe!cz!uif!qsjps!dbssjfs/!! Joejwjevbmt!xip!ibwf!qsfwjpvtmz!cffo!bqqspwfe!gps!Xbjwfs!pg!Qsfnjvn!xjmm!sfubjo!mjgf! jotvsb! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!28!pg!47!Q2:16594/26:2978/! ! 97 Jufn!8/ ! ! ! Uif!Hspvq!Mjgf!jotvsbodf!qspwjefe!voefs!uif!usbotjujpo!svmft!gps!uif!NfuMjgf!Hspvq!Qpmjdz!jt! frvbm!up!uif!mfttfs!pg;! o Uif!dpwfsbhf!bnpvou!voefs!uif!qsjps!qmbo-!and o Uif!dpwfsbhf!bnpvou!voefs!uif!NfuMjgf!qmbo!gps!uif!bqqmjdbcmf!fnqmpzff!dmbtt!boe! dpwfsbhf!uzqf! Gps!fbdi!qbsujdjqbou!opu!Bdujwfmz!Bu!Xpsl!po!uif!NfuMjgf!Hspvq!Qpmjdz!fggfdujwf!ebuf-!usbotjujpo! dpwfsbhf!xpvme!dpoujovf!voefs!uiftf!svmft!voujm!uif!fbsmjftu!pg!uif!gpmmpxjoh!up!pddvs;! o Uif!ebuf!uif!fnqmpzff!sfuvsot!up!xpsl!bt!bo!bdujwf!Gvmm.Ujnf!Fnqmpzff-!bu!xijdi!ujnf! bdujwf!fnqmpzff!dpwfsbhf!xjmm!tvqfstfef!uif!usbotjujpo!dpwfsbhf!!! o Uif!mbtu!ebz!pg!uif!23!npoui!qfsjpe!gpmmpxjoh!uif!NfuMjgf!dpwfsbhf!fggfdujwf!ebuf! o Uif!mbtu!ebz!uif!fnqmpzff!xpvme!ibwf!cffo!dpwfsfe!voefs!uif!qsjps!qpmjdz!ibe!ju!opu! ibwf!dfbtfe!gps!tpnf!sfbtpo!vosfmbufe!up!uif!qpmjdz!foejoh*! o Uif!ebuf!dpwfsbhf!xpvme!foe!qvstvbou!up!uif!ufsnjobujpo!qspwjtjpot!pg!uif!NfuMjgf! dfsujgjdbuf! o Uif!ebuf!fyufotjpo!qspufdujpo!jt!qspwjefe!voefs!uif!Xbjwfs!pg!Qsfnjvn!qspwjtjpo!pg!uif! uibu!pddvssfe!xijmf! ! Jg!opu!bmsfbez!qspwjefe-!qmfbtf!qspwjef!b!mjtujoh!pg!Opo.Bdujwfmz!bu!Xpsl!fnqmpzfft!uibu!jodmveft!bhf-! hfoefs-!bnpvou!pg!jotvsbodf-!ebuf!pg-!boe!sfbtpo!gps!ejtbcjmjuz!pg!bmm!tvdi!ejtbcmfe!joejwjevbmt-!gps!sjtl! fwbmvbujpo/! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!29!pg!47!Q2:16594/26:2978/! ! 98 Jufn!8/ ! ! ! Summary of Benefits Short Term Disability - STD Option 2 Short Term Disability! Class Description Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft!)41!Ipvst*! Weekly Benefit Amount 71&! Maximum Weekly Benefit %3-611!! Minimum Weekly Benefit* Hsfbufs!pg!21&!pg!xfflmz!cfofgju!ps!%36/11! Elimination Period Bddjefou!!25!ebzt! !Tjdloftt!!25!ebzt! Benefit Duration 22!xfflt! Rehabilitation Incentives Xpsl!Jodfoujwf Sfibcjmjubujpo!Qsphsbn!Jodfoujwf included in quote Gbnjmz!Dbsf!Jodfoujwf )efubjmt!jo!mjnjubujpot!boe! Npwjoh!Fyqfotf!Jodfoujwf! efgjojujpot*! +!Uif!njojnvn!xfflmz!cfofgju!jt!tvckfdu!up!pwfsqbznfou!tjuvbujpot!boe!boz!bqqmjdbcmf!sfibcjmjubujpo!jodfoujwft/! ! ! Rate per $10 Covered Weekly Est Monthly Est Annual Short Term Disability! Of Covered Weekly Benefit Premium Premium Benefit STD! !%1/166!!%246-779!!%857!!%9-:65! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit* NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!2:!pg!47!Q2:16594/26:2978/! ! 99 Jufn!8/ ! ! ! All Active Full Time Employees! Limitations and Definitions! Definition of Disability Evf!up!b!Tjdloftt-!ps!bt!b!ejsfdu!sftvmu!pg!bddjefoubm!jokvsz;! uif!fnqmpzff!jt!sfdfjwjoh!Bqqspqsjbuf!Dbsf!boe!Usfbunfou!boe! dpnqmzjoh!xjui!uif!sfrvjsfnfout!pg!tvdi!usfbunfou-!boe!! jt!vobcmf!up!fbso!npsf!uibo!91&!pg!uifjs!qsfejtbcjmjuz!fbsojoht!bu! uifjs!Pxo!Pddvqbujpo!gps!boz!fnqmpzfs/-!boe! jt!vobcmf!up!qfsgpsn!fbdi!pg!uif!nbufsjbm!evujft!pg!uifjs!Pxo! Pddvqbujpo! Pre-Existing Condition None! Pre-Existing Condition Opof! Limitation Reduction of Benefits:!Cfofgjut!xjmm!cf!sfevdfe!cz!jodpnf!boe!sfdpwfsjft!gspn!dfsubjo!puifs! tpvsdft!jodmvejoh!cvu!opu!mjnjufe!up;!Tpdjbm!Tfdvsjuz!ejtbcjmjuz!ps!sfujsfnfou! cfofgjut!sfdfjwfe!ps!fmjhjcmf!up!sfdfjwf!cfdbvtf!pg!Ejtbcjmjuz<!boz!tubuf-! qvcmjd!ps!gfefsbm!fnqmpzff!sfujsfnfou!ps!ejtbcjmjuz!qmbo!cfofgjut!sfdfjwfe! ps!fmjhjcmf!up!sfdfjwf!cfdbvtf!pg!Ejtbcjmjuz-!jodmvejoh!Tubuf!Ufbdifst! Sfujsfnfou!Tztufn!)TUST*-!Qvcmjd!Fnqmpzff!Sfujsfnfou!Tztufn!)QFST*! ps!Gfefsbm!Fnqmpzff!Sfujsfnfou!Tztufn!)GFST*<!hspvq!jotvsbodf! qpmjdjft<!dfsubjo!fbsmz!sfujsfnfou!qmbot<!op.gbvmu!bvup!mbxt<!hpwfsonfoubm! dpnqvmtpsz!cfofgju!qmbo!ps!qsphsbn<!puifs!ejtbcjmjuz!qsphsbnt!ps!qmbot-! Dpnqfotbujpo!cfofgjut<!pddvqbujpobm!ejtfbtf!mbxt<!nbsjujnf! nbjoufobodf!boe!dvsf<!uijse!qbsuz!sfdpwfsjft<!boe!vofnqmpznfou! jotvsbodf!mbxt!ps!qsphsbnt/! ! Jg!uifsf!jt!b!sfbtpobcmf!cbtjt!gps!Zpv!up!bqqmz!gps!cfofgjut!voefs!uif! Gfefsbm!Tpdjbm!Tfdvsjuz!Bdu-!b!hpwfsonfou!dpnqvmtpsz!qmbo!ps!qsphsbn-! ps!TUST-!QFST!ps!GFST!Cfofgju!Qmbot!ps!Qsphsbnt-!Xf!fyqfdu!Zpv!up! bqqmz!gps!uifn/!Up!bqqmz!gps!Tpdjbm!Tfdvsjuz!cfofgjut!nfbot!up!qvstvf!tvdi! cfofgjut!voujm!Zpv!sfdfjwf!bqqspwbm!gspn!uif!Tpdjbm!Tfdvsjuz! Benjojtusbujpo-!ps!b!opujdf!pg!efojbm!pg!cfofgjut!gspn!bo!benjojtusbujwf!mbx! kvehf/!Xjui!sftqfdu!up!cfofgjut!voefs!b!hpwfsonfou!dpnqvmtpsz!qmbo!ps! qsphsbn-!ps!TUST-!QFST!ps!GFST!Cfofgju!Qmbot!ps!Qsphsbnt-!up!bqqmz! nfbot!up!qvstvf!tvdi!cfofgjut!uispvhi!bmm!bqqmjdbcmf!mfwfmt!pg!bqqfbm! qspwjefe!gps!voefs!tvdi!cfofgju!qmbot!ps!qsphsbnt/! ! Xf!xjmm!sfevdf!uif!bnpvou!pg!Zpvs!Ejtbcjmjuz!cfofgju!cz!uif!bnpvou!pg! Tpdjbm!Tfdvsjuz!cfofgjut-!Xf!ftujnbuf!uibu!Zpv-!Zpvs!Tqpvtf!ps!dijme)sfo*! bsf!fmjhjcmf!up!sfdfjwf!cfdbvtf!pg!Zpvs!Ejtbcjmjuz!ps!sfujsfnfou/!!Xf!xjmm! sfevdf!Zpvs!Ejtbcjmjuz!cfofgjut!cz!tvdi!ftujnbufe!Tpdjbm!Tfdvsjuz!cfofgjut! tubsujoh!xjui!uif!gjstu!Ejtbcjmjuz!cfofgju!qbznfou!dpjodjefou!xjui!uif!ebuf! Zpv!xfsf!fmjhjcmf!up!sfdfjwf!Tpdjbm!Tfdvsjuz!cfofgjut! ! Xf!xjmm!sfevdf!Zpvs!Ejtbcjmjuz!cfofgju!cz!uif!bnpvou!pg!tvdi!hpwfsonfou! dpnqvmtpsz!cfofgju!qmbo!ps!qsphsbn!cfofgju-!ps!TUST-!QFST!ps!GFST! cfofgju!uibu!Xf!ftujnbuf!Zpv!bsf!fmjhjcmf!up!sfdfjwf-!qspwjefe!uibu!Xf! ibwf!uif!sfbtpobcmf!nfbot!up!nblf!tvdi!bo!ftujnbuf/!Xf!xjmm!tubsu!up!ep! uijt!xjui!uif!gjstu!Ejtbcjmjuz!cfofgju!qbznfou!voefs!uijt!dfsujgjdbuf!dpjodjefou! xjui!uif!ebuf!Zpv!xfsf!fmjhjcmf!up!sfdfjwf!tvdi!hpwfsonfou!dpnqvmtpsz! cfofgju!qmbo!ps!qsphsbn!cfofgju-!ps!TUST-!QFST!ps!GFST!cfofgjut!voefs! boz!tvdi!qmbot!ps!qsphsbnt/! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!31!pg!47!Q2:16594/26:2978/! ! 9: Jufn!8/ ! ! ! ! Occupational Benefits: Opo.Pddvqbujpobm!Dpwfsbhf! Definition of Predisability fnqmpzfs!bt!pg!uif!ebz!cfgpsf!ijt0ifs!ejtbcjmjuz!cfhbo/!!Qsfejtbcjmjuz! Earnings! fbsojoht!jodmveft;!Basic earnings only.! Uif!ufsn!epft!opu!jodmvef;! !Uif!hsbou-!bxbse-!tbmf-!dpowfstjpo-!boe0ps!fyfsdjtf!pg!tibsft!pg! tupdl!ps!tupdl!pqujpot<! ! dpnqfotbujpo!bssbohfnfou!ps!qfotjpo!qmbo<!ps! !Boz!puifs!dpnqfotbujpo!gspn!uif!Fnqmpzfs/! !! Work Incentive Xijmf!ejtbcmfe!boe!sfdfjwjoh!b!Xfflmz!Cfofgju-!fnqmpzfft!nbz!sfdfjwf! vq!up!211&!pg!Qsfejtbcjmjuz!Xfflmz!Fbsojoht-!sfuvso.up.xpsl!fbsojoht-! boe!puifs!jodpnf!cfofgjut/! Rehabilitation Incentive 21&!jodsfbtf!jo!uif!Xfflmz!Cfofgju!jg!qbsujdjqbujoh!jo!bo!bqqspwfe! Sfibcjmjubujpo!Qsphsbn/! Family Care Incentive Jg!uif!fnqmpzff!xpslt!ps!qbsujdjqbuft!jo!b!Sfibcjmjubujpo!Qsphsbn!xijmf! uifz!bsf!Ejtbcmfe-!tubsujoh!xjui!uif!5ui!Xfflmz!Cfofgju!qbznfou-! sfjncvstfnfou!nbz!cf!qspwjefe!gps!vq!up!%211!qfs!xffl!gps!fmjhjcmf! Gbnjmz!Dbsf!fyqfotft!jodvssfe!cz!bo!fnqmpzff!gps!fbdi!fmjhjcmf!gbnjmz! nfncfs!evsjoh!uif!cfofgju!qfsjpe/! Moving Expense Incentive Jg!uif!fnqmpzff!qbsujdjqbuft!jo!b!Sfibcjmjubujpo!Qsphsbn!xijmf!uifz!bsf! Ejtbcmfe-!sfjncvstfnfou!nbz!cf!qspwjefe!gps!fyqfotft!jodvssfe!jo! psefs!up!npwf!up!b!ofx!sftjefodf!jg!sfdpnnfoefe!bt!qbsu!pg!uif! Sfibcjmjubujpo!Qsphsbn/! Temporary Recovery Jg!uif!fnqmpzff!sfuvsot!up!Bdujwf!Xpsl!cfgpsf!dpnqmfujoh!uif!Fmjnjobujpo! Qfsjpe!boe!uifo!cfdpnft!Ejtbcmfe-!uifz!xjmm!ibwf!up!dpnqmfuf!b!ofx! fmjnjobujpo!qfsjpe/!!Jg!uif!fnqmpzff!sfuvsot!up!Bdujwf!Xpsl-!bgufs!uifz! cfhjo!up!sfdfjwf!Xfflmz!Cfofgjut-!gps!b!qfsjpe!pg!31!ebzt!ps!mftt!uibo! cfdpnft!Ejtbcmfe!bhbjo!evf!up!uif!tbnf!ps!sfmbufe!dpoejujpo-!uifz!xjmm! opu!ibwf!up!dpnqmfuf!b!ofx!Fmjnjobujpo!Qfsjpe/! Continuity of Coverage Qspwjefe!gps!hspvqt!xifsf!uijt!qmbo!xjmm!sfqmbdf!bo!jogpsdf!jotvsfe!qmbo! jo!gpsdf!po!uif!ebz!jnnfejbufmz!qsfdfejoh!uif!fggfdujwf!ebuf!pg!uijt!qmbo/! Organ Donor Benefit 21&!jodsfbtf!jo!uif!Xfflmz!Cfofgju!jg!Ejtbcjmjuz!jt!b!sftvmu!pg!bo!Pshbo! Usbotqmbou!Qspdfevsf/! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!32!pg!47!Q2:16594/26:2978/! ! :1 Jufn!8/ ! ! ! Fydmvtjpot! ! Xf!xjmm!opu!qbz!gps!boz!Ejtbcjmjuz!dbvtfe!ps!dpousjcvufe!up!cz;! Xbs-!xifuifs!efdmbsfe!ps!voefdmbsfe-!ps!bdu!pg!xbs-!ps!qbsujdjqbujpo!jo!bo!jotvssfdujpo-!ps!sfcfmmjpo<! Zpvs!bdujwf!qbsujdjqbujpo!jo!b!sjpu<! Joufoujpobmmz!tfmg.jogmjdufe!jokvsz<! ! Buufnqufe!tvjdjef<!ps! Dpnnjttjpo!pg!ps!buufnqu!up!dpnnju!b!gfmpoz/! Xf!xjmm!opu!qbz!Tipsu!Ufsn!Cfofgjut!gps!boz!Ejtbcjmjuz!dbvtfe!ps!dpousjcvufe!up!cz!fmfdujwf!usfbunfou!ps! qspdfevsft-!tvdi!bt;! Dptnfujd!tvshfsz!ps!usfbunfou!qsjnbsjmz!up!dibohf!bqqfbsbodf<! Sfwfstbm!pg!tufsjmj{bujpo<! Mjqptvdujpo<! Wjtvbm!dpssfdujpo!tvshfsz<!boe! Jo!wjusp!gfsujmj{bujpo-!fncszp!usbotgfs!qspdfevsf-!ps!bsujgjdjbm!jotfnjobujpo/! Ipxfwfs-!qsfhobodjft!boe!dpnqmjdbujpot!gspn!boz!pg!uiftf!qspdfevsft!xjmm!cf!usfbufe!bt!b!Tjdloftt/! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!33!pg!47!Q2:16594/26:2978/! ! :2 Jufn!8/ ! ! Short Term Disability Coverage Highlights! Csplfs!Dpnnjttjpot!jodmvefe!jo!uif!sbuf;!!Tuboebse!Tdbmf!! Fyqfdufe!Qbsujdjqbujpo;!!!211&! Fnqmpzff!Dpousjcvujpot;!!!1&!)Hsptt!Vq!.!Qptu!Uby*! Gjobodjbm!Bssbohfnfou;!!Opo.sfusptqfdujwfmz!Fyqfsjfodf!Sbufe! Tjuvt!jt!NJOOFTPUB! ! Cfofgju!Pggtfut!gps!Fnqmpzfft!xjui!Nboebufe!Tubuf!Ejtbcjmjuz!Mbxt;! Uijt!rvpuf!tqfdjgjdbmmz!beesfttft!Tipsu.Ufsn!Ejtbcjmjuz!dpwfsbhf!uibu!jt!tvqqmfnfoubm!up!boz!tubuf!nboebufe! .pddvqbujpobm! ejtbcjmjujft!up!uifjs!fnqmpzfft!jo!uiftf!tubuft/!Jg!bqqmjdbcmf-!cfofgju!pggtfut!bsf!bqqmjfe!gps!fnqmpzfft!jo!tubuft! xjui!b!nboebufe!ejtbcjmjuz!mbx/! Bdujwfmz!bu!Xpsl!qspwjtjpo!bqqmjft! Fnqmpzfs!GJDB!Nbudi;!NfuMjgf!jt!opu!uif!bhfou!gps!qvsqptft!pg!sfnjuujoh!uif!Fnqmpzfs!tibsf!pg!GJDB/!! NfuMjgf!jt!opu!uif!bhfou!gps!uby!sfnjuujoh-!uifsfgpsf!uif!Fnqmpzfs!jt!sftqpotjcmf!gps!jttvjoh!X.3t-!sfnjuujoh! boe!sfqpsujoh!uif!Fnqmpzfs!tibsf!pg!GJDB-!sfqpsujoh!xbhft!boe!ubyft!po!uifjs!Gpsn!:52!boe!tubuf!ps!gfefsbm! vofnqmpznfou!uby!sfnjuujoh!boe!sfqpsujoh/!!Jg!sfrvftufe-!NfuMjgf!xjmm!bvupnbujdbmmz!xjuiipme!boe!sfnju!gfefsbm! boe!tubuf!ubyft!boe!uif!fnqmpzff!tibsf!pg!GJDB!gspn!ubybcmf!cfofgju!qbznfout/!!NfuMjgf!xjmm!jttvf!uif!X.3t! gps!ubybcmf!cfofgjut!vtjoh!uif!Fnqmpzfs(t!obnf!boe!FJO!bu!op!dibshf!jg!sfrvftufe!cz!uif!Fnqmpzfs-!cvu!xf! bsf!opu!uif!bhfou-!uifsfgpsf!uif!Fnqmpzfs!tujmm!sfubjot!bmm!uif!sftqpotjcjmjujft!opufe!bcpwf!njovt!uif!X.3! sftqpotjcjmjuz/!!Jg!uif!Fnqmpzfs!vtft!uif!tfswjdft!pg!b!qbzspmm!wfoeps-!uifz!tipvme!ejtdvtt!uijt!xjui!uif!wfoeps! up!efufsnjof!jg!ju!xjmm!dbvtf!boz!sfqpsujoh!jttvft/! Sfibcjmjubujpo!Qsphsbn!Qbsujdjqbujpo;!Ejtbcjmjuz!cfofgju!qbznfout!xjmm!foe!po!uif!ebuf!uif!fnqmpzff!dfbtft!ps! sfgvtft!up!qbsujdjqbuf!jo!b!Sfibcjmjubujpo!Qsphsbn!uibu!NfuMjgf!sfrvjsft/! NfuMjgf!ibt!nbef!fwfsz!fggpsu!up!rvpuf!b!qmbo!uibu!nbudift!uif!tvctubodf!pg!uif!sfrvftufe!qmbo!eftjho!up!uif! cftu!pg!pvs!bcjmjuz-!cbtfe!po!uif!qmbo!epdvnfoubujpo!nbef!bwbjmbcmf!bu!uif!ujnf!pg!rvpuf/!Uif!bduvbm!mbohvbhf! vtfe!jo!uif!dpousbdut!xjmm!sfgmfdu!xibu!jt!gjmfe!jo!uif!bqqmjdbcmf!kvsjtejdujpot/!Pvs!sbuft!bsf!cbtfe!po!uif!qmbo! eftjho!jmmvtusbufe!jo!uijt!Dptu!'!Cfofgju!Tvnnbsz/! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!34!pg!47!Q2:16594/26:2978/! ! :3 Jufn!8/ ! ! ! Summary of Benefits Long Term Disability - LTD Option 2 Long Term Disability! Class Description Bmm!Bdujwf!Gvmm!Ujnf!Fnqmpzfft!)41!Ipvst*! Monthly Benefit 71&!pg!Qsfejtbcjmjuz!Fbsojoht! Maximum Monthly Benefit %21-111/11! Minimum Monthly Benefit* %211/11! Elimination Period :1!Ebzt!ps!voujm!uif!foe!pg!uif!TUE!Nbyjnvn!Cfofgju!Qfsjpe/! Own Occupation Period 35!npouit! Social Security Integration Gbnjmz!Tpdjbm!Tfdvsjuz!! Benefit Duration SCE!x0!TTOSB! Uif!mbufs!pg!Zpvs!Opsnbm!Sfujsfnfou!Bhf!bt!efgjofe!cz!Tpdjbm!Tfdvsjuz! ps!uif!qfsjpe!tipxo!cfmpx;!! ! Age on Date of ! Your Disability!Benefit Duration! mftt!uibo!71 up!bhf!76 71 71!npouit 72 59!npouit 73 53!npouit 74 47!npouit 75 41!npouit 76 35!npouit 77 32!npouit 78 29!npouit 79 26!npouit 7:!boe!pwfs!23!npouit! Rehabilitation Incentives Xpsl!Jodfoujwf included in quote Sfibcjmjubujpo!Qsphsbn!Jodfoujwf )efubjmt!jo!mjnjubujpot!boe! Gbnjmz!Dbsf!Jodfoujwf efgjojujpot*! Npwjoh!Fyqfotf!Jodfoujwf! Employee Assistance Program!Tuboebse!Pqujpo!2!!6!tfttjpot! Survivor Benefit Jodmvefe!jo!uijt!rvpuf! Conversion Privilege Jodmvefe!jo!uijt!rvpuf! Cost of Living Adjustment Dptu!pg!Mjwjoh!Bekvtunfou!epft!opu!bqqmz/! +Uif!njojnvn!npouimz!cfofgju!jt!tvckfdu!up!pwfsqbznfou!tjuvbujpot!boe!boz!bqqmjdbcmf!sfibcjmjubujpo! jodfoujwft/! ! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!35!pg!47!Q2:16594/26:2978/! ! :4 Jufn!8/ ! ! ! Rate per $100 Covered Monthly Est Monthly Est Annual Of Covered Monthly Long Term Disability! Payroll Premium Premium Payrol l Tuboebmpof!!!!!%1/377 !%:8:-936 !%3-717 !%42-387! Sbuft!bsf!hvbsbouffe!gspn!Kbovbsz!2-!3137!.!Efdfncfs!42-!3139!)47!npouit* NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!36!pg!47!Q2:16594/26:2978/! ! :5 Jufn!8/ ! ! Limitations and Definitions Definition of Disability! Evf!up!b!Tjdloftt-!ps!bt!b!ejsfdu!sftvmu!pg!bddjefoubm!jokvsz;! Uif!fnqmpzff!jt!sfdfjwjoh!Bqqspqsjbuf!Dbsf!boe!Usfbunfou!boe! dpnqmzjoh!xjui!uif!sfrvjsfnfout!pg!tvdi!usfbunfou-!boe! Evsjoh!uif!!fmjnjobujpo!qfsjpe!boe!uif!ofyu!35!npouit!jt!vobcmf! up!fbso!npsf!uibo!91&!pg!uifjs!qsfejtbcjmjuz!fbsojoht!bu!uifjs! Pxo!Pddvqbujpo!gps!boz!fnqmpzfs!jo!uifjs!Obujpobm!fdpopnz<! boe!! jt!vobcmf!up!qfsgpsn!fbdi!pg!uif!nbufsjbm!evujft!pg!uifjs!Pxo! Pddvqbujpo-!! Bgufs!tvdi!qfsjpe-!jt!vobcmf!up!fbso!npsf!uibo!71&!pg!uifjs! qsfejtbcjmjuz!fbsojoht!bu!boz!hbjogvm!pddvqbujpo!gps!boz!fnqmpzfs! jo!uifjs!Obujpobm!fdpopnz<!boe!jt! Vobcmf!up!qfsgpsn!uif!evujft!pg!boz!hbjogvm!pddvqbujpo!gps!xijdi! uifz!bsf!sfbtpobcmz!rvbmjgjfe!ubljoh!joup!bddpvou!uifjs!usbjojoh-! fevdbujpo!boe!fyqfsjfodf/! Definition of Predisability Earnings! fnqmpzfs!bt!pg!uif!ebz!cfgpsf!ijt0ifs!ejtbcjmjuz!cfhbo/!!Qsfejtbcjmjuz! fbsojoht!jodmveft;!Basic earnings only/!! ! Uif!ufsn!epft!opu!jodmvef;! Uif!hsbou-!bxbse-!tbmf-!dpowfstjpo-!boe0ps!fyfsdjtf!pg!tibsft!pg! tupdl!ps!tupdl!pqujpot<! dpnqfotbujpo!bssbohfnfou!ps!qfotjpo!qmbo<!ps! Boz!puifs!dpnqfotbujpo!gspn!uif!Fnqmpzfs/! ! Pre-Existing Condition! 4023! Pre-Existing Condition Limitation! Qsf.fyjtujoh!Dpoejujpo!nfbot!b!Tjdloftt!ps!bddjefoubm!jokvsz!gps! xijdi!uif!fnqmpzff;! Sfdfjwfe!nfejdbm!usfbunfou-!dpotvmubujpo-!dbsf-!ps!tfswjdft<!ps! Uppl!qsftdsjqujpo!nfejdbujpo!ps!ibe!nfejdbujpot!qsftdsjcfe! jo!uif!4!npouit!cfgpsf!jotvsbodf!ps!boz!jodsfbtf!jo!uif!bnpvou!pg! jotvsbodf!voefs!uif!dfsujgjdbuf!ublft!fggfdu/!!! Xf!xjmm!opu!qbz!cfofgjut-!ps!boz!jodsfbtf!jo!cfofgju!bnpvou!evf!up!bo! fmfdufe!jodsfbtf!jo!uif!bnpvou!pg!jotvsbodf!gps!b!Ejtbcjmjuz!uibu! sftvmut!gps!b!Qsf.fyjtujoh!Dpoejujpo-!jg!uif!fnqmpzff!ibt!cffo! Bdujwfmz!bu!Xpsl!gps!mftt!uibo!23!dpotfdvujwf!npouit!bgufs!uif!ebuf! uifjs!Ejtbcjmjuz!jotvsbodf!ps!uif!fmfdufe!jodsfbtf!jo!uif!bnpvou!pg! tvdi!jotvsbodf!ublft!fggfdu!voefs!uif!dfsujgjdbuf/! ! Work Incentive Xijmf!ejtbcmfe!boe!sfdfjwjoh!b!Npouimz!Cfofgju-!fnqmpzfft!nbz! sfdfjwf!vq!up!211&!pg!Qsfejtbcjmjuz!Npouimz!Fbsojoht-!sfuvso.up.xpsl! fbsojoht-!boe!puifs!jodpnf!cfofgjut/!Bgufs!uif!gjstu!35!npouit! gpmmpxjoh!uif!fnqmpzfft!sfuvso!up!xpsl-!NfuMjgf!xjmm!sfevdf!uif! fnqmpzfft!Npouimz!Cfofgju!cz!61&!pg!uif!bnpvou!uif!fnqmpzff! fbsot!gspn!xpsljoh!xijmf!Ejtbcmfe/! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!37!pg!47!Q2:16594/26:2978/! :6 Jufn!8/ ! ! Rehabilitation Incentive 21&!jodsfbtf!jo!uif!Npouimz!Cfofgju!jg!qbsujdjqbujoh!jo!bo!bqqspwfe! Sfibcjmjubujpo!Qsphsbn/! ! Family Care Incentive Jg!uif!fnqmpzff!xpslt!ps!qbsujdjqbuft!jo!b!Sfibcjmjubujpo!Qsphsbn! xijmf!uifz!bsf!Ejtbcmfe-!sfjncvstfnfou!nbz!cf!qspwjefe!gps!vq!up! %511!qfs!npoui!gps!fmjhjcmf!Gbnjmz!Dbsf!fyqfotft!jodvssfe!cz!bo! fnqmpzff!gps!fbdi!fmjhjcmf!gbnjmz!nfncfs!evsjoh!uif!gjstu!35!npouit! pg!cfofgju!qbznfout/! ! Moving Expense Incentive Npwjoh!Fyqfotf!Jodfoujwf;!Jg!uif!fnqmpzff!qbsujdjqbuft!jo!b! Sfibcjmjubujpo!Qsphsbn!xijmf!uifz!bsf!Ejtbcmfe-!sfjncvstfnfou!nbz! cf!qspwjefe!gps!fyqfotft!jodvssfe!jo!psefs!up!npwf!up!b!ofx! sftjefodf!jg!sfdpnnfoefe!bt!qbsu!pg!uif!Sfibcjmjubujpo!Qsphsbn/! ! Temporary Recovery Jg!uif!fnqmpzff!sfuvsot!up!Bdujwf!Xpsl!cfgpsf!dpnqmfujoh!uif! Fmjnjobujpo!Qfsjpe!boe!uifo!cfdpnft!Ejtbcmfe!bhbjo!evf!up!uif! tbnf!ps!sfmbufe!dpoejujpo-!b!ofx!Fmjnjobujpo!Qfsjpe!jt!opu!sfrvjsfe! qspwjefe!uif!sfuvso!up!gvmm!ujnf!xpsl!jt!xjuijo!b!qfsjpe!pg!41!xpsl! ebzt!ps!mftt/!!NfuMjgf!xjmm!dpvou!uif!ebzt!xpslfe!xijmf!Ejtbcmfe! upxbse!uif!tbujtgbdujpo!pg!uif!Fmjnjobujpo!Qfsjpe/!Jg!uif!sfuvso!up! Bdujwf!Xpsl!jt!hsfbufs!uibo!41!xpsl!ebzt-!b!ofx!Fmjnjobujpo!Qfsjpe! jt!sfrvjsfe/!! ! Jg!uif!fnqmpzff!sfuvsot!up!Bdujwf!Xpsl-!bgufs!uifz!cfhjo!up!sfdfjwf! Npouimz!Cfofgjut-!gps!b!qfsjpe!pg!291!dpoujovpvt!ebzt!ps!mftt!boe! cfdpnft!Ejtbcmfe!bhbjo!evf!up!uif!tbnf!ps!sfmbufe!dpoejujpo-!uifz! xjmm!opu!ibwf!up!dpnqmfuf!b!ofx!Fmjnjobujpo!Qfsjpe/! Zero Day Residual Jg!uif!fnqmpzff!dpoujovft!up!nffu!uif!Efgjojujpo!pg!Ejtbcjmjuz-!uif! fmjnjobujpo!qfsjpe!nbz!cf!tbujtgjfe!evsjoh!qbsu.ujnf!fnqmpznfou/! ! Survivor Benefit Jg!uif!fnqmpzff!ejft!xijmf!uifz!bsf!Ejtbcmfe-!b!tjohmf!tvn!qbznfou! frvbm!up!4!ujnft!uif!fnqmpzff(t!mbtu!ofu!Npouimz!Cfofgju!jt!nbef!up! ! ! Conversion Privilege Fnqmpzfft!dbo!qvsdibtf!ejtbcjmjuz!jodpnf!jotvsbodf!voefs!b! tfqbsbuf!hspvq!ejtbcjmjuz!dpousbdu!vqpo!uif!Fnqmpzff(t!ufsnjobujpo! gspn!uif!Fnqmpzfs(t!qmbo/! ! Continuity of Coverage Qspwjefe!gps!hspvqt!xifsf!uijt!qmbo!xjmm!sfqmbdf!bo!jogpsdf!jotvsfe! qmbo!jo!gpsdf!po!uif!ebz!jnnfejbufmz!qsfdfejoh!uif!fggfdujwf!ebuf!pg! uijt!qmbo/! ! Cost of Living Freeze Dptu!pg!Mjwjoh!Gsff{f!jt!jodmvefe!jo!uijt!rvpuf/! ! Waiver of Premium Qsfnjvn!qbznfout!gps!Ejtbcmfe!fnqmpzfft!bsf!xbjwfe!xijmf! cfofgjut!bsf!qbzbcmf/! ! Indexing Gps!uif!qvsqptft!pg!efufsnjojoh!xifuifs!bo!fnqmpzff!dpoujovft!up! cf!Ejtbcmfe!boe!gps!dbmdvmbujoh!uif!Xpsl!Jodfoujwf-!xf!xjmm!bee!up! uif!fnqmpzff(t!Qsfejtbcjmjuz!Fbsojoht!bo!bnpvou!frvbm!up!uif!mfttfs! DQJ!ps!21&! ! NfuMjgf!Dptu!'!Cfofgjut!Tvnnbsz! 2103403136!:;67!BN!Qbhf!38!pg!47!Q2:16594/26:2978/! :7 Jufn!8/ ! ! Specific Disabilities ! Mental or Nervous Disorders or Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! Diseases unless due to mjgfujnf!nbyjnvn!pg!23!npouit/! Neurocognitive Disorders!CjQpmbs!J!Ejtpsefs!xjmm!bmtp!cf!mjnjufe/! !!!Tdij{pqisfojb!xjmm!bmtp!cf!mjnjufe/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! Chronic Fatigue Syndrome and Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! Related Disorders mjgfujnf!nbyjnvn!pg!23!npouit/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! Neuromuscular, Musculoskeletal Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! or Soft Tissue Disorder mjgfujnf!nbyjnvn!pg!23!npouit/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! Alcohol, Drug or Substance Abuse Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! or Addiction mjgfujnf!nbyjnvn!pg!23!npouit/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! Fibromyalgia Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! mjgfujnf!nbyjnvn!pg!23!npouit/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! Self-Reported Conditions Jg!uif!fnqmpzff!jt!Ejtbcmfe-!Ejtbcjmjuz!cfofgjut!bsf!mjnjufe!up!b! mjgfujnf!nbyjnvn!pg!23!npouit/! ! Dpncjofe!npouimz!nbyjnvn!mjnjubujpo!gspn!ebuf!cfofgjut!cfhjo! xjui!puifs!mjnjufe!dpoejujpot;!Zft! ! ! 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Jufn!9/ AGENDA REPORT Meeting Date:October27, 2025 Meeting Type:City Council Submitted By:Paul Bolin, Community Development Director Stacy Stromberg, Assistant Community Development Director Nancy Abts, Senior Planner Title Ordinance No. 1434, Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions and Subdivision Procedures(Second Reading) Background In May 2025, the City Council(Council)adopted a new Title 6, Zoning and Subdivision. The ordinance has been in effect since July 1, 2025. As part of the recodification process, the Cityof Fridley(City)zoning consultants recommend an annual review and update to the ordinance. This will he to be addressed. As a first annual update, staff have identified a handful of areas where the new ordinance needs to be modified. These changes are in response to experienceusing theCity Code(Code)for several months and in responding to requests from potential future land uses. Amendments are made to Subdivision Procedures, Use Definitions and Conditions of Approval, and procedures for the Public District. A public hearing for this ordinance was held at the Planning Commission meeting on September 17, 2025. On October 13, 2025, the Council conducted a first reading of Ordinance No. 1434. There were no questions or comments from the public on the proposed ordinance. If the Council approves the second reading of the ordinance, a summary of the ordinance will be October 31, 2025. The updated Code will become effective 15 days following publication. Financial Impact Absorbed in thePlanning Division Budget. Recommendation Staff recommend approval of the second reading and adoption of Ordinance No. 1434. Staff further recommendthe approval of a summary of Ordinance No. 1434to be published in the Official Publication. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 217 Jufn!9/ Focus on FridleyStrategic Alignment x Vibrant Neighborhoods & Places Community Identity & Relationship Building Financial Stability & Commercial Prosperity Public Safety & Environmental Stewardship x Organizational Excellence Attachments and Other Resources !Ordinance No. 1434 !Summary Ordinance No. 1434 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 218 Jufn!9/ Ordinance No. 1434 Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions and Subdivision Procedures The City Council of the City of Fridley does ordain, after review, examination and staff recommendation that the City of Fridley Zoning and Subdivision Ordinance be amended as follows: Section 1 The following definitions under Section 601.03 Use Definitions are amended to read as follows: Care Facility. A facility licensed by the state which serves individuals who are handicapped, aged or disabled, or are undergoing rehabilitation, and are provided services to meet their needs. This category provides primarily in-patient care, treatment, and/or rehabilitation services for persons who do not require hospitalization. provides meals, lodging, and services on a regular basis, such as personal services, 24-hour supervision, social activities, and/or nursing care to two or more individuals who require assistance. Care facilities include facilities such as assisted living, nursing homes, rest homes, and convalescent care. This use does not include in-home residential care facilities or hospitals. Care Facility, Residential. An in-home residential facility in a residential zoning district that is licensed by the state which provides primarily nonmedical care to individuals who are in need of personal assistance to manage the activities of daily life or for the protection of the individual. The number of people allowed in each facility is dictated by state statute with either groups of six or few persons or groups between seven 16 persons. Hospital. An institution or establishment open to the public and/or owned and operated by a unit of government, in which sick or injured persons receive medical, surgical or psychiatric treatment which may include inpatient care or overnight accommodations providing acute primary health services and medical, psychiatric, or surgical care to persons, primarily inpatients, and including, as an integral part of the institution, related facilities such as laboratories, outpatient facilities, training facilities, or medical offices. Public Building or Use. A building or use which is owned or managed by a public entity to serve the community. Schools and hospitals are a separate use as otherwise defined. Section 2 Paragraph 2 of Section 612.05 District Standards is amended to read as follows: 2. P Public Facilities District 219 Jufn!9/ (a) The P District includes such land areas, waterways and water areas which are owned, controlled, regulated, used or proposed to be used by the City of Fridley or other governmental body. (b) Land within the P District is automatically designated at the time of land acquisition by the City of Fridley for the principal public uses set forth in this Chapter. Land may be designated P District under the Ordinance Amendment procedures of this title. (c) Upon removal of public use, land within the P District automatically reverts back to the original zoning that was on the property prior to the acquisition for such use. (d)(c) All lot requirements and setbacks for uses in this District must be comparable to other similar uses that are allowed in other districts. (e)(d) Building Requirements (1) All building requirements for uses in this District will be comparable to other similar uses that are allowed in other districts. Section 3 Section 612.03 Non-Residential District Principal Uses Table 1 is amended as follows: Commercial Industrial Public Use Standards M-O Principal Use B-1 B-2 M-1 M-2 M-3 P Reference (S-3) Type Residential Group Living Care facility PS C PS C See Chapter 620 Continuum of C C care facility Lodging Hotel or motel PS See Chapter 620 Community Services Clinic P P 21: Jufn!9/ Commercial Industrial Public Use Standards M-O Principal Use B-1 B-2 M-1 M-2 M-3 P Reference (S-3) Type Daycare center PS PS See Chapter 620 Funeral home PS PS See Chapter 620 Hospital C C C See Chapter 620 Museum/art P P P gallery Place of PS PS See Chapter assembly 620 Public use C C C C C C PS See Chapter 620 Sacred PS PS See Chapter community 620 School, P college/ vocational/ business Public school, P P P elementary, middle, or secondary Private school, P P elementary, middle, or secondary Section 4 Section 620 Principal Use Standards is hereby amended as follows: 620.17 Care Facility! 1. Any care facility must have direct access to a collector or higher classification street. 2. On-street parking to meet the needs of this use is prohibited. 3. The site must contain a minimum of 150 square feet of usable open space per resident, consisting of outdoor seating areas, gardens or recreational facilities. Public parks or plazas within 300 feet of the site may be used to meet this requirement. 221 Jufn!9/ 620.26 Motor Vehicle Sales or Rental 1.!Minimum lot size is one acre. 2.!An on-site administrative office for the use is required. A minimum building floor area of 20 percent of the lot buildable area must be devoted to the related motor vehicle sales or rental use. 3.!On lots with multi-tenant buildings, the individual parking demand of all uses must be met. The spots for the motor vehicle sales or rental use must be shown on a parking plan and identified with signage on site. 4.!A fire lane must be maintained around the perimeter of the entire building. 5.!The outdoor sales or display area must not interfere with circulation in any required parking, loading, maneuvering or pedestrian area. 6.!The outdoor sales or display area must conform to the principal building setback requirements of the applicable zoning district. 7.!Junk vehicles are prohibited. 620.37 Hospital ! 1. Any hospital must have direct access to a collector or higher classification street. 2. On-street parking to meet the needs of this use is prohibited. 3. The use must provide proof of all applicable state, federal, and other governmental licensing agency approvals. 620.38 Public Use 1.!The use must serve the community. 2.!The use must be in conformance with the Comprehensive Plan. 3.!The use must conform with the surrounding neighborhood. 4.!Adequate screening from neighboring uses and landscaping must be provided in accordance with the Screening chapter of this code. Section 5 222 Jufn!9/ ! ! ! ! ! ! ! ! ! ! ! 223 Jufn!9/ ! Passed and adopted by the City Council of the City of Fridley on this XX day of \[Month\], 2025. ________________________________ Dave Ostwald - Mayor Attest: ____________________________ Melissa Moore - City Clerk First reading: October 13, 2025 Second reading: October 27, 2025 Publication: Effective Date: 224 Jufn!9/ City of Fridley Summary Ordinance No. 1434 Amending Title No. 6, Zoning and Subdivision, Related to the Public District, Use Definitions and Conditions and Subdivision Procedures The City of Fridley does ordain, after review, examination, and staff recommendation that the Fridley City Code (Code) be amended by adopting Ordinance No. 1434. A summary of the amendments to the Code made by Ordinance No. 1434 are as follows: The Ordinance amends Chapter 603, Section 601.03 Use Definitions changing the definition of a Care Facility and a Care Facility, Residential. It also adds the definition of a hospital and changes the definition of Public Building or Use. The Ordinance amends Chapter 612, section 612.05 District Standards, adding language to Paragraph 2 for Public Facilities District. The Ordinance amends Table 1 in Chapter 612, section 612.03 Non-Residential District Principal Uses. The Ordinance amends language in Chapter 620, section 620.17 Care Facility and section 620.26 Motor Vehicle Sales or Rental. The Ordinance adds Section 620.37 Hospital and Section 620.38 Public Use. The Ordinance amends Chapter 650, Section 650.04 Subdivision Procedures to add item 9, Final Plat and requirements. Ordinance No. 1434 was passed and adopted by the City Council of the City of Fridley on October 27, 2025. The full text of the Ordinance is available on the City website or for inspection by any person during regular office hours at the Office of the City Clerk. 225 Jufn!:/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City Council Submitted By:Joe Starks, Finance Director/City Treasurer Title Resolution No. 2025-141,Approving Claims for the Period Ending October 22, 2025 Background Attached is Resolution No. 2025-141and the claims report for the period endingOctober 22,2025. Financial Impact Included in the budget. Recommendation Staff recommend the approval of Resolution No. 2025-141, Approving Claims for the Period Ending October 22, 2025. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources Resolution No. 2025-141 City Council Claims Report Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 226 Jufn!:/ Resolution No. 2025-141 Approving Claims for the Period Ending October 22, 2025 Whereas, Minnesota Statute § 412.271 generally requires the City Council to review and approve claims for goods and services prior to the release of payment; and Whereas, a list of such claims for the period ending October 22, 2025, was reviewed by the City Council. Now, therefore be it resolved, that the City Council of the City of Fridley hereby approves the payment of the claims as presented. th Passed and adopted by the City Council of the City of Fridley this 27 day of October 2025. _______________________________________ Dave Ostwald - Mayor Attest: Melissa Moore City Clerk 227 Jufn!:/ Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 10/09/2025 - 10/22/2025 Issued Date Description TypeAmount 10/10/2025FRIDLEY POLICE ASSOCIATION-PY onlyEFT-192.00 10/10/2025FRIDLEY-FIRE DUES / TRUSTONE FINANCIALEFT-930.00 10/10/2025FRIDLEY-IAFF DUES/INTL ASSOC/FIRE FIGHTERSEFT-120.00 10/10/2025VOYA INSTITUTIONAL TRUST (for MINN DEFERRED)Bank Draft-1,079.48 10/10/2025VOYA INSTITUTIONAL TRUST (for MINN DEFERRED)Bank Draft-2,266.14 10/10/2025CITY OF FRIDLEY-MISSION SQUARE-457 Def.CompBank Draft-21,031.21 10/10/2025CITY OF FRIDLEY-MISSION SQUARE-457 Def.CompBank Draft-4,941.63 10/10/2025HEALTH PARTNERSBank Draft-6,470.71 10/10/2025CITY OF FRIDLEY-MISSION SQUARE RHS Retiree Health SavBank Draft-397.20 10/10/2025OPTUM BANK (HSA)Bank Draft-4,841.64 10/10/2025OPTUM BANK (HSA)Bank Draft-2,660.66 10/10/2025PERA - 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10/22/2025 Issued Date Description TypeAmount 10/15/2025BOLTON & MENK INCCheck-197.00 10/15/2025BRAUN INTERTEC CORPORATIONCheck-22,017.50 10/15/2025COMCAST/XFINITY (PO BOX 60533)Check-316.47 10/15/2025DELL MARKETING LPCheck-2,316.20 10/15/2025DUO-SAFETY LADDER CORPORATIONCheck-101.95 10/15/2025ECHO DATA ANALYTICSCheck-500.00 10/15/2025EG RUD AND SONS INCCheck-175.00 10/15/2025ENTERPRISE FM TRUSTCheck-46,792.99 10/15/2025FLEET PRIDE TRUCK & TRAILER PARTSCheck-246.88 10/15/2025GENZ-RYAN PLUMBING & HEATINGCheck-29.00 10/15/2025GERTENS GREENHOUSE INCCheck-347.00 10/15/2025GRAINGERCheck-103.05 10/15/2025GREEN BARN GARDEN CENTER INCCheck-3,900.00 10/15/2025HCM ARCHITECTS-HAGEN CHRISTENSEN & MCILWAINCheck-4,112.60 10/15/2025KENNEDY & GRAVEN CHARTEREDCheck-3,654.95 10/15/2025MAC QUEENCheck-121,313.59 10/15/2025MADDEN GALANTER HANSEN LLPCheck-188.00 10/15/2025MANSFIELD OIL COMPANYCheck-12,252.85 10/15/2025METRO PRODUCTS INCCheck-8.95 10/15/2025METRO-INETCheck-5,618.00 10/15/2025METROPOLITAN COUNCILCheck-483,745.38 10/15/2025MINN OCCUPATIONAL HEALTHCheck-646.39 10/15/2025NEW BRIGHTON, CITY OFCheck-952.67 10/15/2025NORTHERN TOOL & EQUIPMENTCheck-61.50 10/15/2025PETERSON COMPANIES INCCheck-715,998.63 10/15/2025PLATINUM POWER WASHING INCCheck-2,056.55 10/15/2025PYE-BARKER / NARDINI FIRECheck-3,371.20 10/15/2025Q3 CONTRACTING INC / PSCCheck-286.17 10/15/2025RADCO INDUSTRIES INCCheck-522.95 10/15/2025RECYCLE TECHNOLOGIES INCCheck-7,719.75 229 Jufn!:/ Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 10/09/2025 - 10/22/2025 Issued Date Description TypeAmount 10/15/2025REI SERVICES LLC DBA EARLYBIRD ELECTRICCheck-88.20 10/15/2025REVSPRING INCCheck-2,235.95 10/15/2025ROADKILL ANIMAL CONTROLCheck-258.00 10/15/2025ROCA, ZACHCheck-58.23 10/15/2025RUFFRIDGE JOHNSON EQUIP CO INCCheck-760.70 10/15/2025SHERWIN-WILLIAMSCheck-193.96 10/15/2025SHRED RIGHTCheck-100.35 10/15/2025SIGTRONICS CORPORATIONCheck-203.48 10/15/2025SPLIT ROCK MGMT - DBA VANGUARD CLEANINGCheck-2,753.00 10/15/2025STREICHER'SCheck-315.00 10/15/2025TAHO SPORTSWEARCheck-170.25 10/15/2025T-MOBILECheck-265.00 10/15/2025TOFT, TAYLORCheck-13,500.00 10/15/2025VALLEY-RICH CO INCCheck-19,887.76 10/15/2025VERIZON WIRELESSCheck-1,876.14 10/15/2025VESTISCheck-693.78 10/15/2025XCEL ENERGYCheck-34,710.95 10/15/2025ZIEBART OF MINNESOTACheck-600.00 10/22/2025MINN CHILD SUPPORT PAYMENT CENTERCheck-327.27 10/22/2025ACTION PLASTIC SALES / ASAP PACKAGINGCheck-330.00 10/22/2025ADVANCED GRAPHIX INCCheck-534.30 10/22/2025ALEXANDRA HOUSE INCCheck-5,000.00 10/22/2025ANIMAL HUMANE SOCIETYCheck-4,132.00 10/22/2025ANOKA COUNTY FIRE PROTECTION COUNCILCheck-700.00 10/22/2025ASPEN MILLS INCCheck-54.95 10/22/2025ASPENSON, JAKECheck-200.00 10/22/2025AT & T WIRELESS SERVICECheck-825.00 10/22/2025BELLBOY CORPORATIONCheck-178.00 10/22/2025BOUND TREE MEDICAL LLCCheck-51.29 10/22/2025BRAUN INTERTEC CORPORATIONCheck-13,950.00 22: Jufn!:/ Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 10/09/2025 - 10/22/2025 Issued Date Description TypeAmount 10/22/2025BREDEMUS HARDWARE CO / DOOR SERVICE MIDWESTCheck-71.90 10/22/2025CEDAR CREEK ENERGYCheck-4,056.50 10/22/2025CENTERPOINT ENERGY-MINNEGASCOCheck-2,209.35 10/22/2025CENTRAL ROOFING COMPANYCheck-950.00 10/22/2025CENTURY LINKCheck-1,321.64 10/22/2025COMCAST/XFINITY (PO BOX 60533)Check-150.87 10/22/2025CORE & MAIN LPCheck-2,003.27 10/22/2025FIRE SAFETY USACheck-2,317.00 10/22/2025FLOCK SAFETYCheck-4,216.91 10/22/2025FRIENDLY CHEVROLET INCCheck-503.57 10/22/2025GENUINE PARTS CO/NAPACheck-452.22 10/22/2025GURSTEL LAW FIRM PCCheck-2,923.85 10/22/2025HAWKINS INCCheck-70.00 10/22/2025INDELCO PLASTICS CORPORATIONCheck-161.07 10/22/2025INNOVATIVE OFFICE SOLUTIONSCheck-592.88 10/22/2025INSTRUMENTAL RESEARCH INCCheck-400.00 10/22/2025INTERSTATE BATTERY SYSTEMCheck-227.95 10/22/2025MAC QUEENCheck-3,195.00 10/22/2025MARTIN MARIETTACheck-1,100.58 10/22/2025MC TOOL & SAFETYCheck-811.94 10/22/2025MCFOA - MUNICIPAL CLERKS/FIN OFFICECheck-40.00 10/22/2025MENARDS - FRIDLEYCheck-348.86 10/22/2025METRO VOLLEYBALL OFFICIALS ASSOCIATIONCheck-1,224.00 10/22/2025MIDWEST MACHINERY/MINNESOTA AG POWER INCCheck-875.10 10/22/2025MINN UNEMPLOYMENT FUNDCheck-3,077.11 10/22/2025MINNEAPOLIS SAW INCCheck-112.46 10/22/2025MINNESOTA ROADWAYSCheck-178.00 10/22/2025MPX GROUPCheck-162.48 10/22/2025NEW BRIGHTON, CITY OFCheck-1,024.93 10/22/2025NORTH AMERICAN RESCUECheck-429.98 231 Jufn!:/ Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 10/09/2025 - 10/22/2025 Issued Date Description TypeAmount 10/22/2025NORTHWEST SAFETY CLEANCheck-152.93 10/22/2025PATCHIN MESSNER APPRAISALSCheck-625.00 10/22/2025PLUMB RIGHT CORPCheck-7,393.92 10/22/2025RADCO INDUSTRIES INCCheck-125.06 10/22/2025REPUBLIC SERVICES #899Check-34,785.72 10/22/2025RESPECCheck-3,550.00 10/22/2025SHORT ELLIOTT HENDRICKSON INCCheck-260.15 10/22/2025SITEONE LANDSCAPE SUPPLYCheck-899.91 10/22/2025SMITH, MICHAELCheck-26.99 10/22/2025STREICHER'SCheck-199.99 10/22/2025SUBURBAN RATE AUTHORITYCheck-1,494.00 10/22/2025SUBURBAN TIRE WHOLESALE INCCheck-2,188.00 10/22/2025SUN BADGE COCheck-147.75 10/22/2025TIMESAVER OFF SITE SECRETARIAL INCCheck-172.00 10/22/2025TITAN MACHINERYCheck-181.15 10/22/2025TOTAL ENERGY SYSTEMSCheck-6,143.82 10/22/2025TRUGREEN-CHEMLAWNCheck-5,486.96 10/22/2025UHL COMPANYCheck-1,256.00 10/22/2025VALLEY-RICH CO INCCheck-22,354.40 10/22/2025VERIZON WIRELESSCheck-480.12 10/22/2025VESTISCheck-496.96 10/22/2025WW GOETSCH ASSOC INCCheck-18,092.00 10/22/2025XCEL ENERGYCheck-4,457.65 -2,416,737.06 Report Total: (143)-2,416,737.06 232 Jufn!:/ Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 10/09/2025 - 10/22/2025 Issued Date Description TypeAmount Summary Bank AccountAmount -2,416,737.06 -2,416,737.06 Cash AccountAmount **NoCashAccount**0.00 999999-101100 CashinBank--2,416,737.06 -2,416,737.06 Transaction TypeAmount Bank Draft-323,172.91 Check-1,696,934.29 EFT-396,629.86 Report Total:-2,416,737.06 233 Jufn!21/ AGENDA REPORT Meeting Date:October 27, 2025 Meeting Type:City Council Submitted By:Joe Starks, Finance Director/City Treasurer Title Resolution No. 2025-140,Approving Water, Sanitary Sewer, Storm Water and Solid Waste Abatement Charges and Rates for the Year 2026 Background At the October 13, 2025,City Council Conference Meeting, the Fridley City Council (Council) reviewed the proposed utility rates and recycling service for 2025. In addition, there were also budget discussions on September 22, September 8, August 25, July 28and April 28.Council guided staff to present the proposed rates for adoption at the October 27 meeting. Water Fund: In 2026, the Cityof Fridley (City)will beginthe Locke Park Water Treatment Plan GAC Upgrade project with a project budget of approximately $5,800,000 over 2026 and 2027. The project has been a provisional project for several years as the City awaited funding from the State. The City has received and accepted funding from the Minnesota Public Facilities Authority (PFA). This comes in the form of approximately $2,900,000 in low interest loan financing and approximately $2,900,00 in loan forgiveness (grant)as a new emerging contaminants project. The loan will be repaid from water user fees over 20 years. For2026-2030, the City plans toinvest $21,970,000 inwater infrastructure projects. From 2022-2024, the City benefitted from American Rescue Plan Act (ARPA) federal funds received to assist with capital needs while stabilizing water utility rate increases. There are no longer ARPA funds to fund capital needs for the future. The Water Utility Fund continuesto providewater and correspondingservices while generally experiencing a reduction in overall water usage, due to conservation and weather patterns, i.e., wet years.As such, the City must regularly adjust the rates and fees to addressthis issueand offset annual increases in costs of treatment and maintenance. Based on 20-year revenue and expenditure projections, and to maintain the equitable treatment of the various user classifications, staff recommend the council approve a 5% increase in usage and fixed rates. The estimated quarterly impact for a residential customer using 18,000 gallons would be an increase of approximately $4.06. Sewer Fund: Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 234 Jufn!21/ The largest expenditure for the Sanitary Sewer Utility Fund is the Metropolitan Council Environmental Services (MCES) charge for wastewater conveyance and treatment which encompasses over 80% of the MCES fee is increasing 12.88%, or approximately $750,000, for 2026. Since 2022, this charge will have increased over $1.3 million or nearly 26%. For 2026-2030, the City plans to invest $9,992,000 in sanitary sewer infrastructure projects. From 2022-2024, the City benefitted from American Rescue Plan Act (ARPA) federal funds received to assist with capital needs while stabilizing sanitary sewer utility rate increases. There are no longer ARPA funds to fund capital needs for the future. With the increase in operating costs (largely MCES) and planned infrastructure projects, and based on 20-year revenue and expenditure projections, staff recommend the Council increase the usage and fixed rates for all user classifications by 13% for 2026. The estimated quarterly impact for a residential customer using 18,000 gallons would be an increase of approximately $17.50. Storm Water Fund: For 2026-2030, the City plans to invest $8,465,000 in storm water infrastructure projects. From 2022- 2024, the City benefitted from American Rescue Plan Act (ARPA) federal funds received to assist with capital needs. There are no longer ARPA funds to fund capital needs for the future. Given this level of infrastructure investment, and based on 20-year revenue and expenditure projections, staff recommend the Council increase the Storm Water Utility Fee by 2.5% for 2026. The estimated quarterly impact for a residential customer using 18,000 gallons would be an increase of approximately $0.37. Solid Waste Abatement (Recycling) Fund: At present, the City contracts with Republic Services, Inc. to provide recycling services for the community. The City received the updated recycling rate which will go into effect on May 1, 2026; t stth runs from May 1 to April 30. The 2026 recycling charge will be $3.75 ($3.14 pickup charge + $0.61 processing charge) per household up from $3.72 per household. The yearly average is $3.74 ($3.72 for 4 months, $3.75 for 8 months) down from $3.81. Based on the changes, staff recommend the Council decrease the quarterly Recycling Fee by approximately 2% from $11.80 per quarter to $11.60. Financial Impact The proposed changes in the various chargesforservice will allow each fund to respond to its various cost pressures while improving the sustainability of their operations and limiting the need for future borrowing to support certain capital expenditures. These recommended changes also allow the City to provide stable and predictable rates changes over time, while responding to various cost pressures. The estimated quarterly impact for a residential customer using 18,000 gallons would be an increase of approximately $21.73 quarterly or $7.24 monthly. Recommendation Staff recommend the approval of Resolution No. 2025-140, Approving Water, Sanitary Sewer, Storm Water and Solid Waste Abatement Charges and Rates for the Year 2026 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 235 Jufn!21/ Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places Community Identity & Relationship Building X Financial Stability & Commercial Prosperity Public Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources !Proposed 2026 Utility Rates Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 236 Jufn!21/ Resolution No. 2025-140 Approving Water, Sanitary Sewer, Storm Water and Solid Waste Abatement Charges and Rates for the Year 2026 Whereas, Chapter 402 of the Fridley City Code (Code) provides that the City Council (Council) shall have the authority to set water and sanitary sewer utility charges, fees and rates by resolution; and Whereas, Chapter 505 of the Code provides that the Council shall also have the authority to set the storm water drainage rate by resolution; and Whereas, Chapter 319 of the Code provides that the Council shall also have the authority to set solid waste abatement (i.e., recycling) charges, fees and rates by resolution; and Whereas, changes in the various chargesforservice will allow each fund to respond to its various cost pressures while improving the sustainability of their operations and limiting the need for future borrowing to fund ordinary capital expenditure; and Whereas, the following charges, rates and fees shall be effective upon the first billing cycle of 2026. Now, therefore be it resolved, that the City Council of the City of Fridley hereby establishes the following charges, fees and rates for each of the public utility and solid waste abatement funds for 2026 as shown in exhibit A. th Passed and adopted by the City Council of the City of Fridley this 27 day of October, 2025. _______________________________________ Dave Ostwald Mayor Attest: Melissa Moore City Clerk 237 2026 Utility Rates Jufn!21/ City of Fridley, Minnesota 2025 Final2026 Proposed Quarterly Fixed Change Volume Rate Quarterly Fixed Change Volume Rate Fixed Charge(%)Volume RateChange (%)Per UnitFixed Charge(%)Volume RateChange (%)Per Unit Utility Fund and User ClassificationUsage Notes Water Utility Residential Quarterly Consumption Tiers 0-8,000$ 24.77 5.0%$ 2.82 5.0%1000 gallons$ 26.015.0%$ 2.96 5.0%1000 gallons 8,001-16,000$ 24.77 5.0%$ 3.25 5.0%1000 gallons$ 26.015.0%$ 3.41 5.0%1000 gallons 16,001-24,000$ 24.77 5.0%$ 3.90 5.0%1000 gallons$ 26.015.0%$ 4.09 5.0%1000 gallons over 24,000$ 24.77 5.0%$ 4.86 5.0%1000 gallons$ 26.015.0% $ 5.11 5.0%1000 gallons Multifamily All Usage$ 24.77 5.0%$ 3.25 5.0%1000 gallons$ 26.015.0%$ 3.41 5.0%1000 gallons Commercial Quarterly Consumption Tiers 0-250,000see belowsee below$ 2.82 5.0%1000 gallonssee belowsee below$ 2.96 5.0%1000 gallons 250,001-500,000see belowsee below$ 3.34 5.0%1000 gallonssee belowsee below$ 3.51 5.0%1000 gallons 500,001-1,000,000see belowsee below$ 3.85 5.0%1000 gallonssee belowsee below$ 4.04 5.0%1000 gallons over 1 millionsee belowsee below$ 4.41 5.0%1000 gallonssee belowsee below$ 4.63 5.0%1000 gallons Meters less than 1"$ 24.77 5.0%see abovesee abovesee above$ 26.015.0%see abovesee abovesee above Meters 1" and greater$ 68.46 5.0%see abovesee abovesee above$ 71.885.0%see abovesee abovesee above Irrigation All Usage$ 24.77 5.0%$ 4.86 5.0%1000 gallons$ 26.015.0%$ 5.11 5.0%1000 gallons Sanitary Sewer Utility Winter Quarter Residential (includes 8,000 gallons) Water Usage$ 61.12 5.0%$ 7.35 5.0%1000 gallons$ 69.0713.0%$ 8.31 13.0%1000 gallons Multifamily, 3 units or less (includes 24,000 gallons)$ 122.355.0%$ 7.35 5.0%1000 gallons$ 138.26 13.0%$ 8.31 13.0%1000 gallons Current Quarter Multifamily, 4 units or moreWater Usage$ 27.54 5.0%$ 7.35 5.0%1000 gallons$ 31.1213.0%$ 8.31 13.0%1000 gallons Commercial/Industrial $ 27.54 5.0%$ 7.35 5.0%1000 gallons$ 31.1213.0%$ 8.31 13.0%1000 gallons Storm Water Utility Per Acre$ 44.17 10.0%n/an/aper acre$ 45.272.5%n/an/aper acre Residential Equivalency Factor (REF)$ 14.72 10.0%n/an/aREF per qtr.$ 15.09 2.5%n/an/aREF per qtr. Solid Waste Abatement (i.e., Recycling) n/an/a Residential, 12 units or less$ 11.80 8.3%n/aper quarter$ 11.60-1.7%n/aper quarter In accordance with MN Statutes 604.113, you will be charged $30 for any payment returned. A In accordance with MN Statutes 604.113, you will be charged $30 for any payment returned. A State Test Fee - 2.43/qtr 10% late fee charge may apply if your account becomes past due.10% late fee charge may apply if your account becomes past due. 238 10/22/2025