8.2. SR 12-19-2005 - Laserfiche WebLink

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RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT TO BE UNDERTAKEN BY THE ELK RIVER MUNICIPAL UTILITIES COMMISSION BE IT RESOLVED by the City Council (the "Council") of the City of Elk River, Minnesota (the "City"), as follows: 1. Recitals: (a) The Elk River Municipal Utilities Commission (the "Commission") has made a preliminary determination that it is necessary and appropriate for the Commission to undertake certain additions and improvements to the City's electric utility distribution system, including but not limited to acquisition and construction of a substation and related feeder system (the "Proj ect"). (b) In order to provide financing for the Project, the Commission intends to participate in the Minnesota Municipal Utilities Association Financing Program through a combination of a fixed interest rate and variable interest rate borrowing from the Midwest Consortium of Municipal Utilities ("MCMU") of which the Commission is a member, and in furtherance thereof the Commission expects to consider for approval one or more resolutions which will provide for the issuance by the Commission to MCMU of a fixed rate electric revenue note and a variable rate electric revenue note together with execution and delivery of related documents including fixed and variable rate project loan agreements. The total expected borrowing by the Commission for the cost of the Project is expected not to exceed $3,500,000 plus required reserves, costs of issuance and other transaction expenses. As of the date hereof it is expected that approximately 72% of the financing will be at a fixed rate and approximately 28% at a variable rate. (c) The notes shall be secured by the net revenues of the Commission. The full faith and credit of the City will not be pledged as security for the notes or the financing of the Project. (d) This Council expects that it will be requested by the Commission at an appropriate future date to approve a resolution or resolutions concurring in such financing. 2. Consent and Approval. This Council hereby preliminarily approves the Project and the financing thereof through MCMU as described above as may be carried out pursuant to further actions of the Commission, and hereby authorizes the staff of the City to cooperate with the Commission as may be necessary or appropriate to assist the Commission in carrying out the Project and undertaking the financing arrangements described above.