Agenda - Council Work Session - 10/11/2016

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additionally cover costs of issuance and future monitoring. In the event the City's actual costs exceed the de .,it amo , + th l nt li a t :imburse these additional cenounts7 Prior to closing and delivery of the bonds for the project, the applicant must pay, or commit to pay at closing an administrative fee in the amount of 1% of par of the bonds (or as negotiated based on the size of the issue). The administrative fees required by this paragraph will be adjusted at or paid prior to delivery of the bonds if necessary to ensure compliance with the Internal Revenue Code and regulations. The corporation should be prepared to demonstrate to the Ramsey City Council how the proposed project will benefit the community. The corporation may request to be placed on the City's agenda by: contacting the City of Ramsey at (763) 427-1410, submitting a letter outlining the request, and appearing before the Ramsey City Council when the request is heard. If permission is granted by the City, the bond attorney for the issue must: Be the City's Bond Council: Briggs & Morgan, w2200 First National Bank Building, 332 Minnesota Street, St. Paul, MN 55101. (651) 808-6600 Provide to the City a written statement indicating that the documents have been appropriately prepared, all concerns of the City and points covered by this document have been addressed, and it is acceptable for the City to adopt the needed resolutions. No documents will be adopted by the City or signed by City Council members or staff without the attorney's statement. Prepare a contract obligating the agency requesting the debt (obligor) to repay to the City any interest margin for bank qualified bonds that the agency uses and the City later needed on debt it issues for its own purposes. Assure that the Official Statement prominently displays in large, bold type that the City of Ramsey does not have any obligation to repay the debt and what the rating of the bond issue is. When the issue is complete and closed, provide two copies of the transcript and amortization schedules of the issue to the Financial Director on a timely basis. The debt instrument issued must not place the City of Ramsey at risk in any way, financially or legally, in appearance or in fact. The Federal Government has also placed the burden of weighing the balance of "public purpose versus private benefit" upon the City of Ramsey for these conduit debt issues. The City will consider risk, the public versus private benefit balance, and the recommendation of its staff. Because of the subjective nature of the issues it must weigh, the Ramsey City Council retains the right to refuse to authorize any issue at its sole discretion and without need to give cause. The obligor must indemnify the City against all future costs including but not limited to law suits, findings that the issue was not tax-exempt, or penalties of any kind. The documents must clearly reflect the indemnification of the City. The City will not be responsible for any continuing disclosure or arbitrage calculations or rebate and the documents must clearly reflect that the obligor is responsible for these matters.