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HomeMy WebLinkAboutResolution No. R22-69RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL AU HORIZING THE MAYOR TO EXECUTE ALL LOAN DOCUMENTS BY AND B TWEEN MONTANA BOARD OF INVESTMENTS INTERCAP AND THE CITY OF LAUREL FOR THE PURCHASE OF A GARBAGE TR CK BE IT RESOLVED by the City Council of the Section 1: Approval. On May 14, 2021, Montan a Term Sheet to the City of Laurel, agreeing to a Thr( Cents ($300,000) loan to the City of Laurel to finance ( garbage truck. On July 27, 2021, pursuant to Resolution the purchase of a garbage truck from Kios Brothers, between Montana Board of Investments Intercap and th Section 2: Execution. The Mayor is hereby g related documents by and between Montana Board of Laurel, for the purchase of the garbage truck. Introduced at a regular meeting of the City by Council Member Sparks. PASSED and APPROVED by the City November 2022. APPROVED by the Mayor the 8th day of N ATTEST: K Rly e ker, Clerk -Treasurer of Laurel, Montana, Board of Investments Intercap issued Hundred Thousand Dollars and No sts associated with the purchase of a fo. 21-56, the City of Laurel approved arsuant to a loan agreement by and City of Laurel. authority to execute all loan and stments Intercap and the City of on the 8th day of November 2022, of the City of Laurel the 8th day of ve ber 2022. CITY OF LAUR Daye Waggoner, R22-69 Approve Execution of Garbage Truck Loan Documents Michele L. Braukmann, Civil City Attorney R22-69 Approve Execution of Garbage Truck Loan Documents SOLD TO: CITY OF LAUREL 2021 NEW REFUSE TRUCK 7-15-21 P.O. BOX 10 LAUREL MT 59044 SHIP TO: INC. T FALLS DATE EQUIPMENT COMP DENVER BILLINGS BROTHERS 5200 Colorado Blvd. Commerce City C080022 Ph.' -e 3-298-7370 Fax:303.298-8527 2107 Harnish Blvd. Bngs MT59101 Phone:4(f6.652.3975 Fax: 406.652.3744 SOLD TO: CITY OF LAUREL 2021 NEW REFUSE TRUCK 7-15-21 P.O. BOX 10 LAUREL MT 59044 SHIP TO: INC. T FALLS DATE PAGE 07/29/21 3 QUOTE NO. 21-17101 *** QUOTE *** C TY OF LAUREL 2D21 NEW REFUSE TRUCK 7-15-21 P.O. BOX 10 LAUREL MT 59044 ----------------------------------------------- CUSTOMER PO CUSTOMER NUM SHIP VIA SALESMAN TERMS CUSTOMER PHONE VERBAL COUNC 12310 FOB LAUREL 17 NET 10 406-628-7431 PART NUMBER DESCRIPTION QTY ORD UOM PRICE EXTENDED All returned goods must be accompanied by invoice and are subject to handling charge after 30 days. ***NO RETURNS AFTER 90 DAYS*** A SERVICE CHARGE OF 2% PER MONTH, 24% PER ANNUM WILL BE ADDED TO ANY INVOICE NOT BY THE LAST DAY OF THE MONTH IN WHICH IT IS DUE. WE ARE CONFORMING WITH THE FAIR STANDARTDS ACT OF 1938 AS AMENDED. NOT RESPONSIBLE FOR TIMELOST DUE TO FIRES, STS OR CAUSES BEYOND OUR CONTROL. STENOGRAPHICAL AND CLERICAL ERRORS SUBJECT TO COR THANK YOU FOR ALLOWING US TO QUOTE THESE ITEMS. YOUR COSI Sub Total 373,726.50 ID. Sales Tax 0.00 SOR F.E.T. 0.00 RES Freight 5,312.50 'TION --"------- IS TOTAL 379,039.00 Strecker Welsh, Louise <Lwelsh@mt.gov> Thursday, May 5, 2022 12:48 PM Kelly Strecker Saarela, Peggy Subject: RE: Garbage Truck Loan This email will do to request an extension. Just bumped loan #2932 out to expire January 13, 2023 to give a little room around that November ETA. Thanks and best regards, LW From: Kelly Strecker <kstrecker@laurel.mt.gov> Sent: Thursday, May 5, 2022 12:41 PM To: Welsh, Louise <Lwelsh@mt.gov> Subject: [EXTERNAL] RE: Garbage Truck Loan Good Afternoon, We are going to have extend the commitment. It is my understanding that that the garbage truck is not going to be here until sometime in November. What do we need to do to extent the loan? Thank you V-dLd strec{zer City of Laurel, Montana (406) 628-7431 extension 5100 From: Welsh, Louise <Lwelsh@mt.gov> Sent: Wednesday, April 27, 202210:47 AM To: Kelly Strecker <kstrecker@laurel.mt.gov> Cc: Saarela, Peggy <Peggy.Saarela@mt.gov> Subject: RE: Garbage Truck Loan Good morning Ms. Strecker. We have a $300,000 commitment for a garbage truck loan expiring May 13, 2022. Attached is the term sheet explaining the loan conditions. One change to the attached is that we are no longer requiring collateral liens be put on the vehicle title. Peggy Saarela, Credit Analyst, is copied on I Strecker Welsh, Louise <Lwelsh@mt.gov> �- Wednesday, April 27, 2022 10:47 AM Kelly Strecker Saarela, Peggy Subject: RE: Garbage Truck Loan Attachments: Laurel 2932 Term.pdf Good morning Ms. Strecker. We have a $300,000 commitment for a garbage truck loan expiring May 13, 2022. Attached is the term sheet explaining the loan conditions. One change to the attached is that we are no longer requiring collateral liens be put on the vehicle title. Peggy Saarela, Credit Analyst, is copied on this email and will help you through the closing process. Please let us know if the City is ready for funds or need to extend the commitment. Thanks and have a nice rest of the day, LW LOUISE WELSH SENIOR BOND PROGRAM OFFICER MONTANA BOARD OF INVESTMENTS 406.444.0891 INVESTMENTMT.COM finvestmentmt.coml From: Kelly Strecker <kstrecker@laurel.mt.gov> Sent: Wednesday, April 27, 2022 8:12 AM To: Welsh, Louise <Lwelsh@mt.gov> Subject: [EXTERNAL] Garbage Truck Loan Good Morning, I am reaching out to a Garbage Truck loan you were working with Bethany Langve on last year in May. Bethany is no longer with the City. Can you fill me in on where she left off with her. I have been forwarded a few emails between the two of you. Any help you can provide will be greatly appreciated. Thanks so much. Kehl stredzer City of Laurel, Montana (406) 628-7431 extension 5100 MONTANA BOARD OF INVESTM I N T E R C May 14, 2021 Bethany Langve, Clerk -Treasurer City of Laurel P.O. Box 10 Laurel, MT 59044 Re: INTERCAP Program Dear Ms. Langve: Attached please find a Term Sheet whereby the Board is the City of Laurel to finance costs associated with a garb@ 0 Iling to make a $300,000.00 loan to truck. Section 15 of the Term Sheet presents conditions that are sr lecific to the borrower's loan request. No funds can be disbursed until these conditions are met to the satisfaction of the Board. The borrower must meet these conditions in a timely manner so that the loan may be made within the borrower's desired time frame. The board will review, as quickly as possible, any information submitted in meeting the conditions. Once all conditions have been met, it usually takes about �woney; ree weeks to prepare the final loan se closing documents, have them executed, and disburtherefore please notify us approximately four weeks prior to needing funds. As part of the closing process, the Board will prepare a templ to opinion for your governing body's general counsel to use. The template opinion calls for s veral representations and that the Borrower has perfected a security interest for the benefit oft the Board for equipment and vehicles, if applicable. To avoid delays at loan closing, please Inch ide your attorney at the beginning of the process so that he/she can provide a well Informed opinion. We look forward to working with you to finance your proje INTERCAP program. Please do not hesitate to call if you h Sincerely, Louise Welsh Senior Bond Program Officer LW/ps Enclosure and appreciate your interest in the e any questions. 2401 COLONIAL DRIVE, 3rd FLOOR, H LENA, MT 59601 P.O. BOX 200126, HELENA, MT 9620-0126 406-444-0001 1 INVESTMENT T.COM INTERCAP PROGRA (An annual adjusting interest rate rogram for Montana Local Governmeits) TERM SHEET of STATE OF MONTANA BOARD OF INVESTMENTS (herein referred to as the Board) to CITY OF LAUREL (hereinafter referred to as the B rrower) BORROWER'S ADDRESS: P.O. Box 10 Laurel, MT 59044 PRINCIPAL CONTACT PERSON: Bethany Langve, Clerk -Treasurer PHONE NUMBER: (406) 628-7431 E-MAIL: cityclerk@laurel.mt.gov LOAN AMOUNT: THREE HUNDRED THOUSAND JND NO/100 DOLLARS ($300,000.00) TERM OF LOAN: 7 years TERM SHEET ISSUANCE DATE: May 13, 2021 TERM SHEET VALID THROUGH: May 13, 2022 BORROWER ACT: 7-7-4101, 7-7-4201, 7-7-4423, and 7-5-4306, M.C.A. Rev. 6/10 Section1. Definitions............................................................................................................................ 2 Section 2. Variable rate program........................................................................................................... 3 Section 3. Authorization to borrow........................................................................................................ 3 Section 4. Authorization to undertake project........................................................................................ 3 Section 5. Legal debt limits...................................................... ......................................................... 3 Section 6. Bidding requirements and prevailing wage.......................................................................... 4 Section 7. Accuracy and timeliness of information on application .......................................................... 4 Section 8. Borrower action before loan closing........................ ......................................................... 4 Section 9. Project conformance and cost................................. ......................................................... 4 Section 10. Modification of term sheet................................................................................................. 4 Section 11. Loan closing submission....................................... .........................................................4 Section 12. The loan agreement.......................................................................................................... 5 Section 13. Project/project costs.......................................................................................................... 5 Section 14. Total project/total project costs.......................................................................................... 5 Section 15. Specific conditions................................................. ......................................................... 5 9 INTERCAP LOAN Term Sheet Section 1. Definitions. Capitalized terms herein shall have the respective meaning $ assigned them in this Section 1, unless the context clearly otherwise requires: "Act" shall mean Title 17, Chapter 5, Part 16, M.C.A., as "Adiusted interest rate" shall mean the interest rate on the to the Loan Agreement or Bond Resolution. "Application" shall mean the completed application form the Board. "Board" shall mean the State of Montana Board of Investme existing under the laws of the state of Montana and any succe; "Bond" shall mean the bond or Note issued by the Borrower "Borrower" shall mean the Eligible Government Unit set determined and established pursuant by the Borrower and submitted to a public body corporate organized and of its functions hereunder. ng a Loan from the Board. on the cover hereof. "Borrower Act" shall mean Section 7-7-4101, 7-7-4201,7j-7-4423, and 7-5-4306, Montana Code Annotated. "Borrower Resolution" shall mean the resolution, in form and substance satisfactory to the Board, duly enacted by the Governing Body of the Borrower, authorizing th Loan and prescribing the terms thereof and establishing the security thereof, and authorizing the exec' ion and delivery of the Loan Agreement and the Note. "Eli4ible Government Unit" shall mean a city, town, school dstrict, county or consolidated city -county, county water and sewer district, a rural fire district, a hospital distr ct, a state agency, organized and existing under the laws of the state or any other governmental entity authorized by the issuer to participate in the INTERCAP Program. "Governing Body" shall mean (i) with respect to a county, the Board of County Commissioners, (ii) with respect to a city, the City Council or Commission, (iii) with respect to a school district, county water or sewer district, hospital district, or rural fire district, the Board of rustees, and iv) with respect to any other Eligible Government Unit, such official body having the authority t enter into contracts and to make binding decisions on behalf of such unit. "Initial Interest Rate" shall mean the rate on the Loan from Ithe date of the Loan to the first Interest Adjustment Date. The current loan rate through February 15, 2q22 is 1.65 percent. "INTERCAP Program or INTERCAP" shall mean the IN which the Board will issue and sell INTERCAP Bonds and Eligible Government Units pursuant to the Borrower Act. "INTERCAP Bonds" shall mean the State of Montana Bi Tender Option Municipal Finance Consolidation Act Bonds (I "Interest Adiustment Date" shall mean February 16. 2 DDAP Program of the Board pursuant to the proceeds thereof to make loans to of Investments Annual Adjustable Rate RCAP Program). "Loan" shall mean the INTERCAP loan by the Board to Agreement or Bond Resolution. "Loan Agreement" shall mean the agreement entered into agreement may also be a bond resolution or a supplemental bonds or additional parity bonds with respect to the Borrower's "Loan Date" shall mean the anticipated date of closing the "Maximum Interest Rate" means the maximum rate of inte fifteen percent (15%) per annum. "Note" shall mean the promissory note or Bond issued by Board. "Pledged Revenues" shall mean the taxes, fees, revenues, identified as to the source for the repayment of the Loan. "Proiect" shall mean the portion of the Total Project to be "Proiect Costs" shall mean the portion of the costs of the T Loan. "Total Proiect" shall mean the project as described in by the INTERCAP Loan. "Total Project Costs" shall mean the entire cost of acquiring, further described in Section 14. Borrower under the terms of the Loan :en the Board and the Borrower; this resolution for the purpose of issuing al revenue bond issue, on the Bonds which shall not exceed Borrower evidencing a Loan from the ments or other funds of the Borrower by the INTERCAP Loan. Project to be financed by the INTERCAP 14 of which some or all is to be financed or constructing the project as "System' shall mean, if applicable, the utility operated by th Borrower and from which the revenues pledged to the repayment of the Loan are pledged. Section 2. Variable Rate Program. The INTERCAP Program is a variable rate program with 16. Section 3. Authorization to Borrow. The Borrower is a duly organized and existing Eligible and has the power under the Borrower Act to enter into a Loan. Section 4. Authorization to Undertake Proiect. The Governing Body will or has duly authorized the und( closing of the loan, the Borrower will have obtained or will have required to the date hereof by any governmental agency or a Department of Environmental Quality (DEQ), the Environme Montana Environmental Protection Agency (MEPA) for the P Borrower will comply with all federal and state regulations. interest rate adjusting each February Unit in the state of Montana ng of the Project. Prior to the actual e all permits, findings and approvals -ity, including, but not limited to the Protection Agency (EPA), and the t. With respect to the Project, the Section 6. Legal Debt Limits. The issuance of the Bond or Note in a principal amount the indebtedness of the Borrower to exceed any constitutional condition or provision of or constitute a default under any res( Borrower is a party or by which the Borrower is bound. Section 6. Biddina Requirements and Prevailing Waae. The Governing Body will follow where required by I contracts including Section 18-2-403 M.C.A., preference for M Section 7. Accuracy and Timeliness of Information on iI to the Loan Amount will not (i) cause tutory limitation or (ii) violate any term, n, contract or agreement to which the the bidding statutes concerning public ana labor and prevailing wage. The information contained in the Application is true, accu ate, complete, and not misleading on the date of its original delivery to the Board and as of the date hereof. Any financial information furnished as part of the Application is true and complete as of the dates anc for the periods indicated, and there has been no material adverse change in the financial condition of the Borrower. The Borrower covenants that it will notify the Board of any material adverse change in the financial condition or the Borrower's ability to repay the Loan that may occur between the date hereof and the Loan Date. Section 8. Borrower Action Before Loan Closing. The Borrower recognizes that the closing of the Loan is d pendent upon the Borrower's satisfaction of the terms and conditions and that any action taken by the Borrower with respect to entering into a contract for the acquisition or construction of the Project prior tc the closing of the Loan is at its own risk and agrees to hold the Board harmless from any loss, damage c r claim arising as a result from doing so. Section 9. Project Conformance and Cost. The Borrower acknowledges and agrees that the P ject financed with INTERCAP money conforms with the Total Project description as presented in Se tion 14 and that all money necessary to pay for Total Project Costs will or has been procured prior to thel disbursement of INTERCAP funds. Section 10. Modification of Term Sheet. The Borrower may request that the Project to be financ( by either increasing or decreasing the loan amount requested. whether or not to consent to an increase in the Loan Amount a modification may not substantially change the scope of the Total 2 ;d with the INTERCAP Loan be modified The Board will have the sole discretion id such consent shall be in writing. The Project without the Board's approval. Section 11. Loan Closing Submission. After all the Terms and Conditions have been met and the Borrower shall submit to the Board the following loan closi loan documents): The Borrower Resolution and Loan Agreement; Borrower is ready to receive financing, documents (Board prepares items 1-3 The Note or Bond duly and validly authorized, issued, an executed by the Borrower; An Opinion of Borrower's Counsel in a form acceptable t the Board; and 4. Such other certificates, documents, opinions and infor ation as are required under the Loan Agreement to be delivered to the Board as of the date of issuance of the Note and such other opinions and certificates as the Board may reasonably request to demonstrate compliance with its representations, covenants and agreements contained in the Loan Agreement. Section 12. The Loan Agreement. The covenants and collateral, if any, securing the Loan and such other security instruments, if any, as the Board shall documents required to be delivered by the Borrower to the Boa Section 13. Proiect/Proiect Costs. Garbage Truck Section 14. Total Proiect/Total Proiect Costs. See Section 13. Section 15. Specific Conditions. These conditions are specific to this Loan. If the ger specific conditions, the specific conditions supersede the gener 1. The Board will have first lien on project vehicle. 5 call be contained in the Loan Agreement quire. Forms of all INTERCAP Program will be provided by the Board. $300,000.00 ral language seems to conflict with the language.