10-24-2005 CC - Laserfiche WebLink

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1827140v1 Item No: 07G Meeting Date: October 24, 2005 Type of Business: CB City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kurt Ulrich, City Administrator Item Title/Subject: Resolution 6665 Approving the Terms of Proposal for the sale by the City of Blaine of its G.O. Capital Improvement Bonds Background: The Cities of Mounds View, Spring Lake Park and Blaine, as part of their fire department joint powers agreement, have agreed to acquire a site and construct and equip a new fire station in Blaine to replace two fire stations that will be removed from service. The City of Mounds View, Minnesota held a public hearing on February 14, 2005 on the adoption of a capital improvement plan for, among other things, the Fire Station, and identified General Obligation Capital Improvement Plan Bonds to finance the project. Also on February 14, 2005, the City adopted a Resolution approving a supplement to Joint Powers Agreement that gave preliminary approval to the issuance by the City of Blaine of General Obligation Capital Improvement Bonds in the principal amount of $8,400,000 for the project. The terms of proposal for the issuance of the Bonds by the City of Blaine are attached. Discussion: The City is asked to provide the following: - Approval of the issuance of the Bonds in substantially the form attached hereto, and authorization for the City of Blaine to accept the offer of the lowest bidder for the sale of the Bonds. - To affirm its obligation to under the Joint Powers Agreement to pay its proportionate share of the debt service on the bonds. The City has been a consistent supporter of the Joint Powers Agreement and has received excellent fire protection service from the joint fire department at a cost far lower than could be done on its own. It is recommended that the City continue its support of the organization through the continued joint sponsorship of facilities. Debt service on the bonds has been included as part of the proposed 2006 levy. Recommendation: Attached is the resolution recommended for consideration and approval by the City Council that approves the Terms of Proposal for the sale by the City of Blaine of its G.O. Capital Improvement Plan Bonds.