HomeMy WebLinkAbout2015-04-15 PACKET 04.D. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 4/15/2015 � �
PREPARED BY: Administration Ryan Schroeder
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider authorizing the Mayor and City Administrator to enter into the amended Property
Assessed Clean Energy Program Joint Powers Agreement with the Port Authority of the City of
St. Paul, dated 1/7/2015.
STAFF RECOMMENDATION
Approve the request.
SUPPORTING DOCUMENTS
� MEMO/LETTER: Memo from Ryan Schroeder, 4/3/2015.
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS
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� City Administrator Date
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Cotta�e
� Grove
�her� Pride and ��OSPerity Meet
To: Mayor and City Council
From: Ryan R. Schroeder, City Administrator
Date: April 3, 2015
Subject: PACE J�int Powers Amendment
In 2013 the City of Cottage Grove entered a joint powers agreement (JPA) with the St. Paul
Port Authority for administration of the Property Assessed Clean Energy Program (PACE).
The Port has requested amendments to the existing JPA in order to bring the document into
sync with how the PACE program is being administered.
Enclosed, please find the proposed JPA as amended. Paragraph 5 has been re-written to
reflect that in addition to the Port providing project financing the Center for Energy and
Environment (or others) may also provide said financing. Likewise, para 9 is amended to
reflect that termination of financing occurs upon retirement or defeasance of whatever the
financing mechanism is (loan or bond).
The fundamentals of the agreement remain unchanged.
The City of Cottage Grove has not entered into any PACE projects to this point in time.
However, it is a tool within the toolkit which we would continue to support at this time.
Council Action:
By motion authorize the Mayor and City Administrator to enter the amended JPA with the Port
Authority of the City of St. Paul dated January 7, 2015
o uthori o t e i o aint a
Property Assessed Clean Energy Program
(PACE OF l��
JOINT POWERS AGREEMENT
Saint Paul Port Authority
850 Lawson Commons
380 St. Peter Street
Saint Paul, MN 55102
(651)224-5686
(651) 223-5198 (fax)
www.s�pa.com
Revised Ol/07/2015
9840817v6
AIVIENDEI) ANI� RESTATEII) JOIN�' PO�VEI�S AGI�ENIEI�iT
This Agreement, made and entered into as of the day of , 2015, by
and between the Port Authority of the City of Saint Paul (the "Port Authority"), a body corporate
and politic, and the City of Cottage Grove, Minnesota, a municipal corporation (the "City"),
provides as follows:
WHEREAS, the Port Authority has been engaged in governmental programs for
providing financing in the City of Saint Paul and in other areas of the State of Minnesota (the
"State") by making loans evidenced by various financing leases and loan agreements, and in the
process of operating these programs the Port Authority has developed a high degree of financial
expertise and strength; and
WHEREAS, Minnesota Statutes, Sections 216C.435 and 216C.436 and Chapter 429 and
471.59 (coilectively the "Act") authorize the City to provide for the financing of the acquisition
and construction or installation of energy efficiency and conservation improvements (the "Cost
Effective Energy Improvements" as defined in the Act or "Improvements") on Qualifying Real
Properties" as defined in the Act (the "Properties" or "Property") located within the boundaries
of the City through the use of special assessments; and
WHEREAS, the Act authorizes the City to designate a local government unit other than
the City to implement the program under the Act on behalf of the City; and
WHEREAS, the City has one or more projects within the boundaries of the City that have
Improvements in need of financing, and has adopted its Resolution No. 2013-109 (a copy of
which is attached hereto as Exhibit A) to designate the Port Authority to implement and
administer a program on behalf of the City to finance such Improvements; and
WHEREAS, the Port Authority has created a program under the Act known as the
Property Assessed Clean Energy Program ("PACE OF MN") for purposes of implementing and
administering the activities described in the Act, and the Port Authority is willing to implement
and administer that program on behalf of the City as requested herein; and
WHEREAS, the City has expressed a desire to make energy improvement financing
programs of the kind managed by the Port Authority available for improvements of eligible
properties within its boundaries, including but not limited to the Energy Savings Partnership,
Trillion BTU and PACE OF MN, and a joint powers agreement is required between the City and
the Port Authority for PACE OF MN; and
WHEREAS, the Improvements will serve citizens of the City of Saint Paul and the City
of Cottage Grove, as well as Ramsey and Washington Counties and the State of Minnesota.
NOW THEREFORE, in consideration of the mutual covenants herein made, the parties to
this Agreement hereby agree as follows:
9840817v6
l. The Port Authority will exercise the powers of the Act on behalf of the City to �
provide financing for Improvements located within the boundaries of the City. Except as
otherwise provided in this Joint Powers Agreement, the Port Authority shall be solely
responsible for the implementation and administration of PACE OF MN and the financing of the
Improvements.
2. In connection with its implementation and administration of PACE OF MN, and
its financing of the Improvements located within the boundaries of the City, it is anticipated that
the Port Authority will enter into various agreements with persons wishing to obtain financing
for Improvements located within the boundaries of the City as well as with sources of financing
for such Improvements (collectively the "Program Documents").
3. The Port Authority may and is permitted to charge fees for its implementation and
administration of PACE OF MN, which fee will be described in, and payable under, the Program
Documents.
4. The Port Authority will have the sole duty and responsibility to comply with or
enforce covenants and agreements contained in the Program Documents. This power
specifically includes the responsibility for monitoring and enforcing compliance with the
provisions of the Program Documents.
5. Either the Port Authority or a lending institution (the "Lender") will use its own
financial resources to finance the Improvements (the "Loan"), or a taxable special assessment
revenue bond(s) (the "Bond(s)") issued by the Port Authority in favor of the Lender will be used
to finance the improvements. Regardless of the financing mechanism, the Lender will advance
funds under the Program Documents to be paid from levied special assessments.
6. The Loan(s) or Bond(s) must be a special/limited obligation of the Port Authority,
payable solely from special assessments levied by the City as provided herein. The Loan(s) or
Bond(s) and interest thereon must neither constitute nor give rise to a general indebtedness or
pecuniary liability, or a general or moral obligation, or a pledge or loan of credit of the Port
Authority, the City, the City of Saint Paul or the State of Minnesota, within the meaning of any
constitutional or statutory provision. To that end, the Port Authority hereby agrees to indemnify
and hold harmless the City from and against any claims or losses arising out of the failure of the
Port Authority to provide for the payment of principal of, and the interest or any premium on the
Loan(s) or Bond(s), from special assessment payments actually paid to the Port Authority by the
City. This indemnity must not, however, be construed to relate to any claims or losses which
might arise by virtue of the exercise, by the City, of its governmental powers in connection with
the Project, or by virtue of the failure of the City to levy and collect special assessments with
respect to the Improvements or promptly remit such special assessment payments to the Port
Authority as provided in the Program Documents.
7. As and for its contribution to the financing of the Improvements, and as provided
in the Act, the City must impose and collect special assessments necessary to pay debt service on
that portion of the Loan(s) or Bond(s) attributable to the Improvements located within the
boundaries of the City. Evidence that the City has imposed such special assessments is a
3 Joint Powers Agreement
9840817v6
precondition to the Port Authority's obligation to provide financing to any Improvements located j
within the boundaries of the City in accordance with the following process;
A. The Port shall provide to City an application from an Applicant under the
Program which includes the following documentation:
1) A copy of the Application containing the legal name of the Applicant, its
legal status, its legal address, a description of the Project, the cost of the
Improvements, the total amount to be assessed against the Property and the
address, legal description and tax identification code for the Property upon which
the Improvements are to be constructed or installed.
2) A statement from the Port that the proposed Project as described in the
Application qualifies under the requirements of the Act and the Port Authority.
3) A fully-executed copy of the Applicant's Petition and Assessment
Agreement suitable for evidencing, and recording if necessary, Applicant's
agreement to be assessed for the amount of the Improvements.
B. Upon receipt of the documentation described in Subparagraph A above, City
agrees that it will levy an assessment against the Property for the amount to be assessed
as set forth in Section 7.A, above.
C. Evidence that the City has imposed such special assessments is a precondition to
the Port Authority's obligation to provide financing to any Improvements located within
the boundaries of the City.
D. In the event that, after the City levies an assessment against the Property for the
costs of the Improvements and related costs as provided for in Subparagraph B above, the
Port does not fund the cost of the Improvements as contemplated by this Agreement, the
Port shall promptly notify City that it has not and will not fund the costs of the
Improvements under the Program and City shall thereafter inform the County Auditor to
remove the subject assessment from the Property.
8. Once the City has imposed special assessments to finance Improvements located
within the boundaries of the City, the City must collect and transfer all collections of the
assessments received by it upon receipt to the Port Authority for application to the payment of
the applicable Loan(s) or Bond(s). The City will take all actions permitted by law for the
recovery of the assessments, including without limitation, reinstating the outstanding balance of
assessments when the land returns to private ownership, in accordance with Minn. Stat. Section
429.071, Subd. 4. The City acknowledges that the Lender is a third-party beneficiary of the
City's covenants herein with respect to the imposition and transfer of special assessments
described herein.
9. Unless otherwise provided by concurrent action of the Port Authority and the
City, this Agreement will terminate upon a 30-day's advanced written termination notice to the
other Joint Powers Agreement partner or upon the retirement or defeasance of all Loan(s) or
4 Joint Powers Agreement
9840817v6
Bond(s), whichever is later; and notwithstanding any other provisions, this Agreement may not
be terminated in advance of such retirement or defeasance.
10. This Agreement may be amended by the Port Authority and the City, at any time,
by an instrument executed by both of them. The Port Authority or the City may not amend this
Agreement, however, if the effect of the amendment would impair the rights of the holder of the
Loan(s) or Bond(s), unless the holder has consented to the amendment.
11. This Agreement may be executed in any number of counterparts, each of which
when taken together will constitute a single agreement.
[Remainder of page intentionally left blank]
5 Joint Powers Agreement
9840817v6
IN WITNES5 WHEREOF, the Port Authority and the City have caused this Agreement
to be executed on their behalf, by their duly authorized officers, as of the day and year first above
written.
PORT AUTHORITY OF THE
CITY OF SAINT PAUL
By:
Its: President
By:
Its: Chief Financial Officer
CITY OF COTTAGE GROVE, MINNESOTA
B
Its:
By:
Its:
S-1
Joint Powers Agreement
f _ � x ' ' .
. . . . . � � - - � - - - � � � � � �ESOLUT'ION NO. 2013-�09 _ . . _
.. .. ,_ .. .. �
RESOL.UTION DESIGNATING THE PORT AUTHORITY TO IMPLEMENT AND
ADMINISTER A PROJECT ASSESSED CLEAN ENERGY IMPROVEMENT
FINANCING ON BEHALF OF THE CITY, AND PROVIDING FOR THE IMPOSITION
OF SPECIAL ASSESSMENTS AS NEEDED IN CONNECTION WITH THAT
PROGRAM
WHEREAS, the Port Authority of the City of Saint Paul (the "Port Authority") has
established the Property Assessed Clean Energy Program ("MN PACE") to finance the
acquisition and construction or installation of energy efficiency and conservation
improvements (the "Improvements"), on properties located throughout the State of
Minnesota through the use of special assessments pursuant to the authority granted by
Minnesota Statutes, Sections 216C,435 and 216C.436 ("the Act") and Minnesota
Statutes, Chapter 429; and
WHEREAS, the City anticipates receiving one or more applications from owners
of property Iocated in the City desiring to participate in and receive financing pursuant to
the Act; and
WHEREAS, in order to finance the Improvements, the City finds that it is
beneficial to participate in MN Pace, and to designate the Port Au#hority as the
"implementing entity" pursuant fio Minnesota Statutes, Section 216C.435 subd. 6, to
implement and administer the program on behalf of the City for purposes of financing
the Improvements located within the City; and
WHEREAS, the City understands #hat the Port Authority will issue its MN Pace �
special assessment revenue bond to finance the Improvemenfs, and that the sole
security for thaf bond will be special assessments imposed by the other cities �
participating in MN PACE; -
WHEREAS, the parties have agreed to enter into a Joint Powers Agreement to
memorialize the agreement. '
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Cottage
Grove, County of Washington, and State of Minnesota as follows:
1. That the City shall enter into a Joint Powers Agreement with the St. Paul Port
Authority for the purposes described in the Act and hereby authorizes the
execution of the Joint Powers Agreement; and
2. That the City hereby designated the St. Paul Port Authority as the "implementing
entity" under Minnesota Statutes, S�ction 216C.435 subd. 6, to implement and
administer programs described in Minnesota Statutes, Section 216C.436.
',
.. ..
3. That in order to facilitate and encourage the financing of the improvements
located within the City, the City covenants to levy assessments for said
Improvements on the property so benefitted, in accordance with Minnesota
Statutes, Chapter 429 and the Program Documents, as defined in the Joint
Powers Agreement, as approved by the Port Authori#y. The interest rate on the
special assessments shall be the interest rate on the Bond, plus ��,5 %.
4. After imposition of the special assessments, the City agrees to collect such
assessments and remit them to the Port Authority for use in repayment of the
Bond. The City will take all actions permited by law to recover the assessments,
including without limitation, for tax-forfeit parcels, reinstating the outstanding
balance of assessments when the property returns to private ownership, in
accordance with Minnesota Statutes, Section 429.071, Subd. 4.
Passed this 16th day of October 2013.
yron ailey, ay
Attest:
L. ,
Caron M. Stransky, City Clerk �