02-052• CITY OF SHOREWOOD
RESOLUTION NO. 02- 052
RESOLUTION COMMITTING TO FINANCING
FOR PUBLIC SAFETY FACILITY IN MOUND, MINNESOTA
WHEREAS, the City of Shorewood has entered into a "Joint Cooperative Agreement and
Contract for Fire Services" with the City of Mound, dated January 1, 2001, for the provision of fire
protection services; and
WHEREAS, Section 103 of the Agreement describes the "City of Mound Fire Budget"; and
WHEREAS, the City of Mound, in consultation with communities receiving fire services,
has determined there is a need to construct a replacement fire station to better serve the public; and
WHEREAS, the City of Mound has agreed to finance the cost of a Public Safety Building to
include a Fire Station; and
WHEREAS. It is expected that the Fire Department portion of the building will be leased to
the Mound Fire Department by the Mound Housing and Redevelopment Authority (HRA); and
is WHEREAS, the lease amounts are equivalent to the debt service for the Mound Fire
Department portion of the building; and
WHEREAS, the City of Mound has provided an estimate of lease cost to cities receiving
service by the Mound Fire Department, including an option to pre -pay lease amounts.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Shorewood, that:
1. The lease cost for the Mound Fire Department shall be included as part of the "City of
Mound Fire Budget" as described within the Joint and Cooperative Agreement and
Contract for Fire Services (hereinafter referred to as "Agreement").
2. The lease costs shall be determined as set forth in Section 7 of said Agreement. The
payments shall be due not later than June 1 and January 1 annually, commencing June 1,
2003 and ending January 1, 2023.
3. Cities contracting with the City of Mound Fire Department may elect to pre -pay lease
amounts. The pre -payments will be used to reduce the amount of funds borrowed for
building construction. The amount of pre -payments will be credited against lease cost.
Pre -payments shall earn an interest rate equal to the True Interest Cost of bonds sold for
the project.
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. Resolution No. 02-
Page Two
4. The purpose of this resolution is to clarify financial expectations relating to the
Agreement.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this loth day
of June 2002. .1--
ATTEST:
•
C:
WSON, CITY ADMINISTRATOR
WOOD'VOW, MAYOR