11-10498rRESOLUTION NO. 10498
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL
OBLIGATION SEWER REVENUE BONDS, SERIES 2011A, IN THE
APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $1,490,000
BE IT RESOLVED By the City Council of the City of Richfield, Minnesota
(the "City "), as follows:
1. Background. It is determined that:
(a) the City engineer has recommended the construction of various capital
improvements to the City's drinking water infrastructure (the "Project ");
(b) the City is authorized by Minnesota Statutes, Sections 444.075 and
115.46 and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act "), to
finance all or a portion of the cost of the Project (the "Project Costs ") by the issuance of
general obligation bonds of the City payable from the net revenues of the water system
of the City.
(c) it is necessary and expedient to the sound financial management of the
City to issue its General Obligation Water Revenue Bonds, Series 2011A (the "Bonds "),
in the original aggregate principal amount of $1,490,000, pursuant to the Act to provide
financing for the Project.
2. Sale Authorized. In order to provide financing for the Project, the City will
therefore issue and sell the Bonds in the approximate amount of $1,490,000.
3. Authority of Financial Advisor. Ehlers & Associates, Inc. is authorized and
directed to solicit proposals for the sale of the Bonds. The City Council will meet at 7:00
p.m. on Tuesday, April 26, 2011, to consider proposals on the Bonds and take other
appropriate action with respect to the Bonds.
4. Authority of Bond Counsel. The law firm of Kennedy & Graven,
Chartered, as bond counsel for the City, is authorized to act as bond counsel and to
assist in the preparation and review of necessary documents, certificates and
instruments relating to the Bonds. The officers, employees and agents of the City are
hereby authorized to assist Kennedy & Graven, Chartered, in the preparation of such
documents, certificates, and instruments.
5. Covenants. In the resolution awarding the sale of the Bonds the City
Council will set forth the covenants and undertakings required by the Act.
6. Official Statement. In connection with the sale of the Bonds, the officers
or employees of the City are authorized and directed to cooperate with Ehlers &
Associates, Inc. and participate in the preparation of an official statement for the Bonds
and to execute and deliver it on behalf of the City upon its completion.
7. State Credit Enhancement. In the resolution awarding the sale of the
Bonds the City will covenant and obligate itself to be bound by the provisions of
Minnesota Statutes, Section 446A.086, which provides for a guarantee by the State of
Minnesota, acting through the Minnesota Public Facilities Authority (the "Authority ") of
any deficiency of debt service payments on the Bonds. The City Council authorizes and
directs the Mayor and the City Manager to execute a Credit Enhancement Program
Agreement with the Authority, in substantially the form on file with the City, which
provides for the terms of the guarantee and City repayment of any deficiencies on the
Bonds paid for by the State of Minnesota, acting through the Authority. The City
Council additionally authorizes payment of the $500 application fee to the Authority.
Approved by the City Council of the City of Richfield this 12th day of April 2011.
1)&Gj
Debbie Goettel, Mayor
ATTEST:
Nancy Gibb ,City Clerk