ITEM: 12.6 ADMINISTRATION- Clark Arneson, City Manager
Title
APPROVING FIRST AMENDMENT TO
AMENDED AND RESTATED JOINT AND COOPERATIVE AGREEMENT AND APPROVING ISSUANCE BY
THE NORTH METRO TELECOMMUNICATIONS SYSTEM
OF CERTAIN REFUNDING BONDS AND RELATED MATTERS
Background
The City of Blaine is a member of the North Metro Telecommunications Commission ("NMTC") along with the cities of Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes, and Spring Lake Park. NMTC is a joint powers entity organized pursuant to Minnesota Statutes, section 471.59. The member cities of NMTC entered into an Amended and Restated Joint and Cooperative Agreement for the Administration of a Cable Communications System dated as of June, 2003 (the "Joint Agreement"). NMTC issued its $2,000,000 North Metro Telecommunications Commission Cable Franchise Revenue Bonds, Series 2003 (the "Series 2003 Bonds") to finance a facility for NMTC operations. NMTC has determined that it is reasonable and necessary to refund the Series 2003 Bonds in order to achieve debt service savings by issuing its Cable Franchise Revenue Refunding Bonds, Series 2012 (the "Refunding Bonds"). Also attached for Council review is a First Amendment to the Joint Agreement, (the "First Amendment") providing for certain changes in appointment by member Cities of alternate directors who serve on the board of NMTC.
Recommendation
By motion, approve the Resolution.
Body
BE IT RESOLVED By the City Council (the "Council") of the City of Blaine (the "City") as follows:
Section 1. Recitals.
1.01. The City is a member of the North Metro Telecommunications Commission ("NMTC"), which is a joint powers entity organized pursuant to Minnesota Statutes, section 471.59.
1.02. The member cities of NMTC entered into an Amended and Restated Joint and Cooperative Agreement for the Administration of a Cable Communications System dated as of June, 2003 (the "Joint Agreement").
1.03. NMTC issued its $2,000,000 North Metro Telecommunications Commission Cable Franchise Revenue Bonds, Series 2003 (the "Series 2003 Bonds") to finance a facility for NMTC operations.
1.04. NMTC has determined that it is reasonable and necessary to refund the Series 2003 Bonds in order to achieve debt service savings by issuing its Cable Franchise Revenue Refunding Bonds, Series 2012 (the "Refunding Bonds").
1.05. The City Council has also reviewed a First Amendment to the Joint Agreement, (the "First Amendment") providing for certain changes in appointment by member Cities of alternate directors who serve on the board of NMTC.
Section 2. Approvals.
2.01. The City Council approves the First Amendment in substantially the form presented to the Council.
2.02. The Mayor and City Clerk are authorized and directed to execute the Amendment, and deliver the same to NMTC.
2.03. The City Council expressly authorizes NMTC to issue the Refunding Bonds in the amount deemed necessary by NMCT to effect a current refunding of the Series 2003 Bonds and achieve debt service savings.
2.04. In order to qualify the Refunding Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations:
(a) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2012 will not exceed $10,000,000;
(b) not more than $10,000,000 of obligations issued by the City during calendar year 2012 have been designated for purposes of Section 265(b)(3) of the Code.
(c) the City agrees, with all members of NMTC, to allocate the benefits attributable to the Refunding Bonds (and the project financed by the original Series 2003 Bonds) in accordance with members' most recent Debt Service Share under Article XI., Section 3 of the Joint Agreement, which share is 53.53 percent; and accordingly the City allocates 53.53 percent of the principal amount of the Refunding Bonds to the City for the purposes of Section 265(b)(3) of the Code.
2.05. City staff and consultants are authorized and directed to take all other actions required to carry out the intent of this Resolution.
APPROVED by the City Council of the City of Blaine this 2nd day of August, 2012.