Title
Approving Supplement to Joint Powers Agreement for the Provision of Fire Protection Services with the cities of Mounds View and Spring Lake Park
Background
Earlier in 2011, Council was presented with the SBM Fire Capital Plan and the proposal to move forward with the purchase of smaller pumper engines so as to save on acquisition costs while maintaining service levels. At this time, staff is proposing the issuance of capital equipment certificates in order to finance the acquisition of the equipment. The certificates would be issued through the City of Blaine, with a pledge of repayment from Spring Lake Park and Mounds View.
Pursuant to the existing JPA, in order to issue bonds or other debt instruments, a supplement to the JPA, approved by all members and specifying each of the joint power member cities' obligations to the particular debt issue, is required. Thus, a Supplement to the Joint Powers Agreement (attached) has been prepared by Blaine's bond counsel for approval.
Recommended Council Action
By motion, approve the Resolution.
Body
CITY OF BLAINE
RESOLUTION APPROVING A SUPPLEMENT TO JOINT POWERS AGREEMENT WITH THE CITIES OF MOUNDS VIEW AND SPRING LAKE PARK
WHEREAS, the City of Blaine, Minnesota ("Blaine") proposes to issue its General Obligation Equipment Certificates of Indebtedness, Series 2011B pursuant to Minnesota Statutes, Section 412.301 (the "Certificates"); and
WHEREAS, the Cities of Spring Lake Park, Mounds View and Blaine (collectively the "Cities") propose pursuant to that certain Joint Powers Agreement for the Provision of Fire Protection Services dated December 11, 1990, as previously amended and supplemented (the "Joint Powers Agreement") and a Supplement to Joint Powers Agreement attached as Exhibit A to be entered into by the Cities (the "Supplement"), to finance various equipment for municipal fire protection and firefighting purposes with the proceeds of the Certificates; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine, Minnesota, as follows:
1. The City Council hereby approves the Supplement in substantially the form attached, subject to modifications that do not alter the substance of the transaction and that are approved by the City Attorney and the City Manager; provided that execution of the Agreement by the Mayor and City Manager shall be conclusive evidence of approval. The Mayor and City Manager are hereby authorized to execute the Supplement on behalf of Blaine, and to carry out on behalf of Blaine, Blaine's obligations thereunder.
EXHIBIT A
SUPPLEMENT TO JOINT POWERS AGREEMENT
This Supplement to Joint Powers Agreement (the "Supplement") is dated the ______ day of _______________, 2011, and is entered into pursuant to Minnesota Statutes, Section 471.59 (the "Minnesota Joint Powers Act"), among the City of Blaine ("Blaine"), the City of Mounds View ("Mounds View"), and the City of Spring Lake Park ("Spring Lake Park"), collectively herein referred to as the "Cities", each such City being a municipal corporation and political subdivision of the State of Minnesota.
1. Background. The Cities have heretofore entered into that certain Joint Powers Agreement for the Provision of Fire Protection Services dated December 11, 1990, as amended and supplemented (the "Joint Powers Agreement"). The Joint Powers Agreement was entered into by the Cities to cooperate in providing fire protection services to their residents through the acquisition, construction, furnishing, and betterment of land, buildings, and equipment for municipal fire protection, firefighting, and related public safety and welfare purposes; the contracting for and payment of such capital costs, services, and related expenses; and the taking of all other action desirable or necessary in connection therewith.
The Cities have also heretofore entered into a certain Contract to Furnish Fire Protection Service (the "Contract") which each of the Cities executed with Spring Lake Park Fire Department, Inc., a Minnesota nonprofit corporation (the "Fire Company"), in 1986. Under the Contract, the Fire Company provides fire protection and other public health and safety services, equipment, and personnel; and each of the Cities is responsible from year to year for its respective share of the cost thereof pursuant to the Formula (the "Formula") set out in Exhibit "A" attached to the Joint Powers Agreement.
Under the Joint Powers Agreement, the Cities anticipated that equipment and other property currently owned by the Fire Company would be acquired by the Cities; that the Cities would acquire additional land, buildings, and other equipment and property for fire protection and related public health and safety purposes; that the Cities would in turn by contract make such property available to appropriate service providers, including the Fire Company; and that the Cities would share the respective costs thereof pursuant to the Formula and as further provided in paragraph III(D) of the Joint Powers Agreement.
1. Purpose of Supplement. The Cities believe it to be in their best interest to acquire certain equipment for municipal fire protection and firefighting purposes (the "Equipment"). In order to finance the Equipment the Cities believe that it is necessary, desirable and appropriate that approximately $1,555,000 of General Obligation Equipment Certificates of Indebtedness to be issued pursuant to Minnesota Statutes, Section 412.301 (the "Certificates").
2. Equipment Certificates. Blaine, Mounds View and Spring Lake Park each represent and warrant to the other that they have each taken all action required by Minnesota Statutes, Section 412.301 in order to be legally authorized to issue the Certificates, provided that the maximum principal amount of Certificates to be paid by Mounds View is $250,000 and the maximum principal amount of Certificates to be paid by Spring Lake Park is $160,000. The Certificates will be issued by the City of Blaine, but Mounds View and Spring Lake Park each will be legally obligated to pay a portion of debt service on the Certificates to Blaine and hereby pledge their full faith and credit and taxing powers to pay such portion of the debt service on the Certificates. Prior to the issuance of the Certificates, in order to evidence Spring Lake Park's and Mounds View's obligations to Blaine to pay a portion of debt service on the Certificates, Spring Lake Park and Mounds View will each issue to Blaine a note, certificate of indebtedness or other debt instrument (the "Notes") or adopt a resolution or enter into an agreement pursuant to which they will pledge their full faith and credit and taxing powers to pay the applicable Formula percentage of debt service on the Certificates or a pro rata share of the annual debt service on the Certificates based on the Formula in effect at the time of issuance, but not in any event to exceed the amounts of debt service on the Certificates properly allocable to the maximum principal amounts set forth above. In the event any of the Cities withdraw from participation in the Joint Powers Agreement as contemplated by paragraph I of the Joint Powers Agreement, they shall remain obligated to pay their Historical Share of debt service on the Certificates as contemplated by paragraph E of the Joint Powers Agreement or, if Mounds View or Spring Lake Park agree to pay scheduled debt service amounts pursuant to the Notes or other agreement, they shall remain obligated to pay their scheduled debt service set forth therein.
3. Ownership, Acquisition and Construction of Project. Ownership of the Equipment shall, in accordance with the provisions of the Joint Powers Agreement, be nominally in the name of the City of Blaine. The acquisition, construction and operation of the Equipment shall be accomplished in accordance with the provisions of the Joint Powers Agreement.
4. Effect. Except as herein supplemented all provisions of the Joint Powers Agreement shall remain in effect.
5. Duration of Agreement. This Supplement shall remain in effect until the Certificates are paid or otherwise discharged.
6. Miscellaneous. This Supplement shall be effective as of the date that all of the Cities shall have approved and executed this Supplement, which shall be governed by law of the State of Minnesota, and may be executed in any number of counterparts, each of which shall constitute an original hereof. In the event that any provision of this Supplement is declared unlawful or unenforceable by a court of competent jurisdiction, the remainder of this Supplement shall remain in full force and effect to the same extent as though said provision did not appear herein.
IN WITNESS WHEREOF, the Cities of Blaine, Mounds View, and Spring Lake Park, Minnesota, have duly authorized the execution of and have duly executed this Supplement by their authorized representatives, respectively.
Dated: _______________, 2011 |
City of Blaine, Minnesota |
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By: ____________________ |
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Its Mayor |
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By: ______________________ |
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Its City Manager |
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Dated: _______________, 2011 |
City of Mounds View, Minnesota |
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By: _____________________ |
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Its Mayor |
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By: ______________________ |
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Its City Administrator |
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Dated: ________________, 2011 |
City of Spring Lake Park, Minnesota |
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By: ______________________ |
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Its Mayor |
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By: ______________________ |
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Its City Clerk - Treasurer |