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HomeMy WebLinkAboutResolution 9347RESOLUTION 9347 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AUTHORIZING THE CITY TO ENTER INTO A CREDIT ENHANCEMENT PROGRAM AGREEMENT WITH THE MINNESOTA PUBLIC FACILITIES AUTHORITY A. WHEREAS, the City Council of the City of Mounds View, Minnesota (the "City") proposes to issue its General Obligation Water Revenue Bonds (the "Bonds"), the proceeds of which will be used to finance the costs of improvement and rehabilitation of the water treatment plant facilities; and B. WHEREAS, the City Council hereby determines it is in the best interests of the City to apply to the Minnesota Public Facilities Authority (the "Authority") for credit enhancement of the Bonds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Minnesota as follows: 1. Approval of the Authority's Credit Enhancement Program Agreement. The Authority's Credit Enhancement Program Agreement (the "Agreement") is hereby approved, the same being before the City Council and made a part of this resolution by reference. 2. Authorization to Sign Agreement and Related Forms. The Mayor and the City Administrator are authorized to sign the Agreement on the City's behalf and to execute any other related forms prescribed by the Authority with respect to the Agreement. 3. Agreement to Comply with Minnesota Statutes, Section 446A.086. The City is entering into the Agreement with the Authority pursuant to Minnesota Statutes, Section 446A.086 (the "Act") and the City hereby agrees to comply with and be bound by the provisions of the Act. 4. Submission of the Agreement. The Mayor and City Administrator are hereby authorized to submit, on the City's behalf, the Agreement to the Authority, together with the nonrefundable application fee in the amount of $500. Adopted this 23`d day of November, 2020 ZS Carol A. Mueller, Mayor ATTEST: Nyle--4un , ity Administrator (SEAL) 2 23401820 EXTRACT OF MINUTES OF A MEETINGOF THE CITY COUNCIL CITY OF MOUNDS VIEW, MINNESOTA HELD: NOVEMBER 23, 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mounds View, Minnesota, was duly held at the City Hall on November 23, 2020, at 6:30 P.M. The following Members were present: Mueller, Gunn, Meehlhause, Hull, Bergeron and the following were absent: None Member /nej.A1,A6L u," introduced the following resolution and moved its adoption: The motion for the adoption of the foregoing resolution was duly seconded by Member L-A1 and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF MOUND VIEW I, the undersigned, being the duly qualified and acting City Administrator of the City of Mounds View, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and the same is a full, true and complete transcript of the minutes of a meeting of the City Council duly called and held on the date therein indicated, insofar as such minutes relate to entering into the Credit Enhancement Program Agreement with the Minnesota Public Facilities Authority. WITNESS my hand on November 24, 2020. Azi� Uj Nyle f' zz , City Administrator 23401820 MINNESOTA PUBLIC FACILITIES AUTHORITY CREDIT ENHANCEMENT PROGRAM AGREEMENT This Credit Enhancement Program Agreement, ("the Agreement"), is made between the Minnesota Public Facilities Authority (the "Authority") and Mounds View , Minnesota (the "Governmental Unit"), in order to comply with the requirements of Minnesota Statutes, Section 446A.086 (the “Act”). The Governmental Unit has passed a resolution dated November 23, 2020, (the “Resolution) authorizing the issuance of its $6,140,000General Obligation Water Revenue Bonds, Series2020A(the “Bonds”), the proceeds of which will be used to provide funds for the improvement and rehabilitation of the water treatment plant facility. The Governmental Unit represents that the Resolution authorizes the Governmental Unit to enter into this Agreement and obligates the Governmental Unit to be bound by the provisions of the Act. The Governmental Unit and the Authority agree as follows: Section 1. The Governmental Unit will deposit with Bond Trust Services Corporation (and any subsequent paying agent) (the “Paying Agent”) three business days before the date on which each payment is due on the Bonds an amount sufficient to make that payment. Section2. The Governmental Unit will notify the Authority not less than 15 business days prior to the date a payment is due on the Bonds if the Governmental Unit will be unable to make all or a portion of the payment. Notification shall be provided by faxing and mailing a completed and executed Notification of Potential Default form to the Authority. Section 3. The Governmental Unit will include a provision in its agreement with the Paying Agent for the Bonds that requires the Paying Agent to immediately inform the Minnesota Commissioner of Management and Budget, with a copy to the Authority, if the Paying Agent becomes aware of a default or potential default in the payment of principal or interest on the Bonds or if, on the day two business days before the date a payment is due on the Bonds, there are insufficient funds on deposit with the Paying Agent to make the payment. For purposes of this paragraph and the Act, funds invested in a refunding escrow account established under Minnesota Statutes, Section. 475.67 that are to become available to the Paying Agent on a principal or interest payment date are deemed to be on deposit with the Paying Agent three business days before the payment date. Section 4. The provisions of this Agreement are binding withrespect to the Bonds as long as the Bonds remain outstanding. Section 5. According to its terms, the Act is a contract with bondholders and may not be amended or repealed for the covered bonds so long as the covered bonds are outstanding. Section 6. The Governmental Unit agrees to provide the Authority with a copy of the final debt service schedule for the Bonds within 30 days of the closing date and an estimate of the interest savings that will be achieved by participation in the program. CE Program Agreement Page 1 of 3 (rev. 9/19) Section 7.The Authority has reviewed the application of the Governmental Unit dated November 30, 2020, and, based solely upon the application, the opinion of bond counsel and the provisions of this Agreement, verifies that the Bonds are participating in the Credit Enhancement Program established pursuant to the Act, and that if the Governmental Unitis unable to make any portion of the payment on the Bonds on or before the date due, the State of Minnesota, acting through the Authority, shall make such payment in its place pursuant to the Act, providing that funds are available in the State General Fund. The obligation to make a payment under the Act is not a general obligation of the State of Minnesota. The Act does not obligatethe legislature to provide for the availability of funds in the General Fund for this purpose. Section 8. The Authority will provide to the Governmental Unit upon request, or to its duly authorized agent, any information which the State of Minnesota files with the Nationally Recognized Municipal Securities Information Repositories pursuant to the State’s obligations under rule 15c2-12. Section 9. The Governmental Unit agrees to notify the Authority if the Paying Agent is replaced by a subsequent paying agent and to provide to the Authority a certification by the subsequent paying agent in the form set forth for the original paying agent below. IN WITNESS WHEREOF, the Authority and the Governmental Unit acknowledge their assent to this Agreement and agree to be bound by its terms and the terms of the Act through their signatures entered below. 1. MOUNDS VIEW, MINNESOTA: 2. PUBLIC FACILITIES AUTHORITY: By (auth. signature): ________________________ By: ________________________________ Title: Executive Director Title: Mayor Date: ____________________________________ Date: ______________________________ 3. COMMISSIONER OF ADMINISTRATION: As delegated to: Office of State Procurement By: ________________________________ By (auth. signature): _______________________ Title: City Administrator Date: ___________________________________ Date: _______________________________ Admin ID: _______________________________ CE Program Agreement Page 2 of 3 (rev. 9/19) PAYING AGENT CERTIFICATION The undersigned Paying Agent for the bonds of Mounds View, Minnesota in the original principal amount of $ 6,140,000 referred to in the Agreement to which this certification is attached acknowledges, understands, and agrees to be bound by the procedures contained in Minnesota Statutes, Section 446A.086 and the Agreement which, in part, requires that the Paying Agent notify the Minnesota Commissioner of Management and Budget, with a copy to the Minnesota Public Facilities Authority if it becomes aware of a default or a potential default in the payment of principal or interest on those debt obligations, or if, on the day two business days prior to the date a payment is due on those debt obligations, there are insufficient funds to make the payment on deposit with the Paying Agent. Notification shall be provided by faxing and mailing a completed and executed Paying Agent Notification of Potential Default form to the Commissioner of Management and Budget and the Authority. I, James Hey, do hereby certify that I am a Paying Agent Administrator duly appointed and acting as such, of the Paying Agent, and am authorized to execute this Certificate on behalf of the Paying Agent. By: _______________________________________ Date: _____________ Signature - Paying Agent Authorized Representative TO BE COMPLETED BY THE PAYING AGENT Name of Paying Agent Bond Trust Services Corporation Address CityState Zip 3060 Centre Pointe Drive, Suite 110Roseville MN 55113 Paying Agent Contact Person Title Telephone Number Fax Number James HeyPaying Agent Administrator651-209-1010651-209-1059 Paying Agent’s Name of Bank Paying Agent’s Bank Account Name Wells Fargo Bank Bank Association NumberPaying Agent Bank Account Number ABA #121000248 4126695238 Paying Agent Federal Tax ID State Tax ID 90-0133126 CE Program Agreement Page 3 of 3 (rev. 9/19)