7.2 Ladder Truck Purchase Joint Powers Agreement

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JOINT POWERS AGREEMENT BETWEEN THE CITY OF BREEZY POINT, CITY OF PEQUOT LAKES AND THE PEQUOT LAKES FIRE DISTRICT This Agreement is entered into by and between the City of Breezy Point, a Minnesota municipal corporation, the City of Pequot Lakes, a Minnesota municipal corporation, and the Pequot Lakes Fire District, a Minnesota joint powers organization, pursuant to Minn. Stat. § 471.59. 1. Purpose. The cities of Breezy Point and Pequot Lakes are members of the Pequot Lakes Fire District. The Fire District Board approved the purchase of a ladder truck (Rosenbauer Aerial with Commander chassis and King Cobra Platform) pursuant to its Capital Improvement Plan. The purpose of this Agreement is to establish the procedure and responsibility for financing the truck. 2. Term. The term of this Agreement shall commence on January 9, 2024, and shall continue until the debt on the truck is paid in full. 3. Joint Responsibilit%. Pequot Lakes and Breezy Point each acknowledge their respective responsibility to pay for one half of the cost of the new truck, including any financing costs, which payments shall be made to the Fire District as part of each City's annual contribution to the District. 4. Equipment Financing,. Breezy Point shall provide the initial financing to purchase the ladder truck. At its sole discretion, Breezy Point shall utilize one of the two following financing methods: a. Debt Issue. Breezy Point may issue general obligation bonds in an amount equal to the price of the truck plus any related fees, sales taxes and bonding costs. The bonds shall issue as soon as reasonably practicable following approval of this Agreement. Breezy Point shall provide Pequot Lakes and the Fire District Board with information on the final bond sales price, net proceeds and repayment schedule. Breezy Point shall make bond payments pursuant to the bond payment schedule. At least 30 days before the scheduled payments, the Fire District shall submit payment to Breezy Point in an amount equal to the scheduled bond payment. b. Cash Purchase. Breezy Point may issue a cash payment for the final invoice amount, in which case the Fire District shall submit an annual payment to Breezy Point as shown in Exhibit A. 5. Equipment Acquisition. Upon receipt of confirmation of the sale of bonds, or receipt of notice from the City of Breezy Point that it is ready to issue a cash payment, the Fire District Board shall finalize the purchase of the specified ladder truck and provide the final invoice to each City. Upon the sale of bonds (if applicable) and receipt of the final invoice, Breezy Point shall pay the final invoice directly to the seller and notify Pequot Lakes and the Fire District Board of the payment. The Fire District shall arrange for delivery and receipt of the truck.