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HomeMy WebLinkAboutCity Council Resolution 2024-112 C ITY OF P LYMOUTH R ESOLUTION N O. 2024-112 R ESOLUTION A PPROVING AN A MENDMENT TO THE J OINT P OWERS A GREEMENT B ETWEEN THE C ITY OF M EDICINE L AKE AND THE C ITY OF P LYMOUTH F OR P OTABLE W ATER S ERVICE WHEREAS, on or about September 8, 2023, the City of Plymouth entered into a Joint Powers Agreement (the “Agreement”) with the City of Medicine lake regarding the City of Plymouth providing potable water service to the citizens of the City of Medicine Lake; and WHEREAS, the Agreement states that the City of Plymouth will own and operate the water system within the geographical limits of the City of Medicine lake; and WHEREAS, the City of Medicine Lake has or will obtain funds through the State of Minnesota bonding process to construct water service improvements in the City of Medicine Lake; and WHEREAS, the State of Minnesota requires certain revisions to the Agreement in order for the City of Medicine Lake to be in compliance with the requirements for funding through the State of Minnesota bonding process; and WHEREAS, the City Council has reviewed the attached Amendment to the Joint Powers Agreement (“Amendment”) which includes the revisions required by the State of Minnesota. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA that the amendment to the joint powers agreement is approved. APPROVED by the City Council on this 26th day of March, 2024. STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS. The undersigned, being the duly qualified and appointed Deputy City Clerk of the City of Plymouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on March 26, 2024 with the original thereof on file in my office, and the same is a correct transcription thereof. WITNESS my hand officially as such City Clerk and the Corporate seal of the city this ___________day of __________________, __________. ____________________________________ Deputy City Clerk Resolution 2024-112 Page 2 EXHIBIT "A" FIRST AMENDMENT TO THE JOINT POWERS AGREEMENT BETWEEN THE CITY OF PLYMOUTH AND THE CITY OF MEDECINE LAKE THIS FIRST AMENDMENT TO THE JOINT POWERS AGREEMENT (“Amendment”) dated as of _______________, 2024 by and between the City of Plymouth, a Minnesota municipal corporation (“Plymouth”) and the City of Medicine Lake, a Minnesota municipal corporation (“Medicine Lake”) (collectively, the “Cities”), both of which are parties to the Joint Powers Agreement. RECITALS WHEREAS, the Cities entered into a Joint Powers Agreement dated September 8, 2023 (“Agreement”) related to the Plymouth’s provision of potable water service to the citizens of Medicine Lake; and WHEREAS, the City of Medicine Lake is or will obtain funds through the State of Minnesota bonding process to construct water service improvements in the City of Medicine Lake; and WHEREAS, the Cities desire to amend the Agreement to comply with the State of Minnesota bonding standards in order for Medicine Lake to receive the bonding proceeds. NOW THEREFORE, the Cities agree to amend the Agreement as follows: 1. Amendment to Paragraph 1 of the Agreement. Paragraph 1 of the Agreement is amended to add subparagraphs A and B to read as follows: A. MMB GRANT AGREEMENT PREVAILS. Plymouth and Medicine Lake acknowledge the existence of a Minnesota Management and Budget (“MMB”) Grant Agreement between Medicine Lake and the Minnesota Public Facilities Authority (“Grant Agreement”), which imposes further conditions and restrictions upon the construction, ownership, use, and operation of the public water system improvements constructed pursuant to Laws of Minnesota 2023. Chapter 72, Article 1, Section 23, Subdivision 17 (“Project”), and agree that the terms and conditions of the Grant Agreement shall prevail over any inconsistent terms in this Agreement. Special provisions include, but are not limited to, the following: 9.14.1 Plymouth and Medicine Lake agree, upon direction from the Commissioner of MMB (“Commissioner”), to take such actions and furnish such documents as the Commissioner deems necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation. 9.14.2 Plymouth and Medicine Lake agree not to create or allow, without the prior written consent of the State of Minnesota and the Commissioner, any voluntary lien or encumbrance or involuntary lien or encumbrance that can be satisfied by the payment of monies and which is not being actively contested against the Project or the Project Resolution 2024-112 Page 3 property, on any Plymouth or Medicine Lake ownership interest in the Project or the Project property, or Plymouth and Medicine Lake’s shared interest in the Agreement, regardless whether such lien or encumbrance is superior or subordinate; provided, however, the State and the Commissioner will consent, in writing, to any such lien or encumbrance that secures repayment of a loan the repayment of which will not impair or burden the funds needed to operate the portion of the Project and the Project property that is the subject of this Agreement in the manner specified in the Grant Agreement Section 2.04 and for which the entire amount is used (1) to acquire additional real property that is needed to so operate the Project in accordance with the requirements imposed by the Grant Agreement Section 2.04 and will be included in and as part of Medicine Lake’s and Plymouth’s ownership of the Project and the Project property, and or (2) to pay for capital improvements that are needed to so operate the Project in accordance with the requirements imposed under the Grant Agreement Section 2.04. B. WATER SERVICES. Notwithstanding anything to the contrary in this Agreement, during the term of this Agreement and any subsequent Renewal Terms, Plymouth shall not permanently terminate Medicine Lake’s right to use the water system to provide potable water service and wastewater service to the City of Medicine Lake and its occupants. 2. Incorporation. Except as provided herein, all terms and provisions of the Agreement shall remain in full force and effect. The changes indicated in this Amendment shall be incorporated into the Agreement. CITY OF PLYMOUTH By: Jeffry Wosje, Mayor And:__________________________ David Callister, City Manager By Resolution 2024-112 Page 4 CITY OF MEDICINE LAKE By: Chris Heim, Mayor And:__________________________ Therese Polum, Its City Clerk