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Enterprise Dispatch Legal Notices
New public notices published in the issue of June 14, 2019

NOTICE
Date: June 7, 2019
To: All Interested Citizens, Organizations and
Government Agencies
From: Chad Kolstad, DWRF Program
Coordinator, Drinking Water Protection
Section, Environmental Health Division,
Minnesota Department of Health
Subject: Drinking Water System Project
Loan Applicant: City of Dassel
Loan Project No.: 1470003-8
The City of Dassel is applying for a construction loan under the Minnesota Department of Health (MDH) drinking water revolving Fund program and is, therefore, subject to the state environmental review process. This notice is to advise the public that MDH staff has reviewed the proposed project and has determined that preparing an Environmental Assessment Worksheet is not required.
The loan applicant has solicited public comment on potential environmental consequences. After reviewing any comments received, we conclude that construction and project implementation will lead to no significant environmental impact.
The environmental summary included with this notice provides information on the existing and proposed drinking water infrastructure and associated environmental considerations. If there are comments about this environmental review process, they must be received within 15 days. They should be submitted to:
Chad Kolstad
Minnesota Department of Health
P.O. Box 64975
St. Paul, Minnesota 55164-0975
Environmental Summary
June 6, 2019
I. Project Name: City of Dassel Water Treatment Plant
Project No. 1470003-8
Legal Description: City of Dassel, County
of Meeker NW 1/4, SW 1/4, Section 27, Range 29W
Project Proposer: City of Dassel
P. 0. Box 391
Dassel, MN 55325-0391
The city of Dassel is located in Meeker County, west of the Minneapolis metropolitan area.
II. Present Water System and Need
Many components of Dassel’s existing water treatment plant have reached the end of their useful life and need to be reconditioned or replaced due to wear and corrosion. Components includes the filters, the current air-wash blower and compressor, electrical controls and filter influent piping. Sections of the pre-cast roof are in poor structural condition and require repair. Furthermore, the chemical feed systems and backwash discharge piping do not meet current construction codes.
To address these needs, the city of Dassel proposes to rehabilitate the existing filters and expand the footprint of the building to add 200 square feet for housing a new air-wash blower and new chemical feed systems. Fluoride storage will be separated into its own room according to current code. Other improvements include structural repairs of the roof and installation of lighting systems.
III. Environmental Impact
The environmental impact for the project will be short-term construction related disturbance limited to noise and dust. The short-term impact will be mitigated by the use of standard construction practices. Any solid or hazardous materials on site during construction will be removed by the contractor and properly disposed of. The proposed project is expected to result in no direct impacts to: threatened or endangered plant or animal species or their habitats; wetlands; floodplains; nearby farmland; historic, architectural, cultural or archaeological features; shore lands, or air quality non-attainment areas.
IV. Public Participation
Public notice was given to the residents of Dassel and comments were accepted for 30 days. Notice was posted in the Enterprise Dispatch newspaper on April 19, 2019. Notice was received from the Minnesota State Historic Preservation Office (SHPO) stating the project is not expected to affect any historic or archeological resources. No other public comments were received.
/s/ Chad Kolstad
For: Jon Groethe, P.E.
Saint Cloud-South District Engineer
Drinking Water Protection
Minnesota Department of Health
Published in the Enterprise Dispatch June 14, 2019.

OFFICIAL SCHOOL BOARD MINUTES
I.S.D. #466, BOARD OF EDUCATION
8:00 PM SPECIAL
BOARD SUBCOMMITTEE MEETING
CERTIFIED NEGOTIATIONS, MAY 13, 2019
BOARD ROOM
In partnership with our communities and families, we will educate and inspire all learners to maximize their potential, promote lifelong learning, and become contributing members of society.
Pursuant to due call and notice thereof, a special meeting of the Board of Education of Independent School District No. 466 (Dassel-Cokato, Minnesota) was duly held in the Dassel-Cokato Board Room, Cokato, Minnesota, on Monday, May 13, 2019.
Aho called the meeting to order at 8:00 P.M.
The following members were present: Aho, Engh, and Grochow
The subcommittee negotiated with the DCEA.
The next negotiations session was set for 5/20/19 at 6:00 PM.
Being no further business, the meeting adjourned at 11:00 P.M.
Andy Engh, Clerk
This document is available in the following formats upon request: Braille, Large Print, Audio Cassette Tape, and Computer Disk. Please call (320-286-4100) for more information or to request a copy.
Published in the Enterprise Dispatch June 14, 2019.

OFFICIAL SCHOOL BOARD MINUTES
I.S.D. #466, BOARD OF EDUCATION
6:00 SPECIAL BOARD MEETING, MAY 13, 2019 BOARD ROOM
In partnership with our communities, Dassel-Cokato Public Schools will provide all learners opportunities designed to maximize their potential and promote lifelong learning.
Pursuant to due call and notice thereof, a special meeting of the Board of Education of Independent School District No. 466 (Dassel-Cokato, Minnesota) was duly held in the Dassel-Cokato Board Room, Cokato, Minnesota, on Monday, May 13, 2019.
Aho called the meeting to order at 6:00 P.M.
The following members were present: Bender, Sangren, Grochow, Nelson, Engh and Aho. The following were absent: none.
Motion by Sangren, seconded by Bender, approving the agenda as printed. Motion carried unanimously.
Architect Paul Youngquist from ARY presented potential bond elements to the board.
The LTFM and Capital budgets were presented for a first reading.
Superintendent Powers explained some general changes to the MS Allied Arts schedule.
Being no further business, the meeting adjourned at 7:23 p.m.
Andy Engh, Clerk
This document is available in the following formats upon request: Braille, Large Print, Audio Cassette Tape, and Computer Disk. Please call (320-286-4100) for more information or to request a copy.
Published in the Enterprise Dispatch June 14, 2019.

OFFICIAL SCHOOL BOARD MINUTES
I.S.D. #466, BOARD OF EDUCATION
6:00 PM SPECIAL BOARD SUBCOMMITTEE MEETING CERTIFIED NEGOTIATIONS,
MAY 20, 2019 BOARD ROOM
In partnership with our communities and families, we will educate and inspire all learners to maximize their potential, promote lifelong learning, and become contributing members of society.
Pursuant to due call and notice thereof, a special meeting of the Board of Education of Independent School District No. 466 (Dassel-Cokato, Minnesota) was duly held in the Dassel-Cokato Board Room, Cokato, Minnesota, on Monday, May 20, 2019.
Aho called the meeting to order at 6:00 P.M.
The following members were present: Aho, Engh, and Grochow
The subcommittee negotiated with the DCEA.
Being no further business, the meeting adjourned at 9:48 P.M.
Andy Engh, Clerk
This document is available in the following formats upon request: Braille, Large Print, Audio Cassette Tape, and Computer Disk. Please call (320-286-4100) for more information or to request a copy.
Published in the Enterprise Dispatch June 14, 2019.

UNOFFICIAL SCHOOL BOARD MINUTES
I.S.D. #466, BOARD OF EDUCATION
6:00 PM REGULAR BOARD MEETING,
MAY 28, 2019
DASSEL-COKATO BOARD ROOM
In partnership with our communities and families, we will educate and inspire all learners to maximize their potential, promote lifelong learning, and become contributing members of society.
Pursuant to due call and notice thereof, a regular meeting of the Board of Education of Independent School District No. 466 (Dassel-Cokato, Minnesota) was duly held in the Dassel-Cokato Board Room, Cokato, Minnesota, on Monday, May 28, 2019.
Aho called the meeting to order at 6:00 P.M.
The following members were present: Engh, Aho, Sangren, Grochow and Bender. The following were absent: Nelson.
The meeting began with the pledge of allegiance.
Motion by Bender, seconded by Sangren, approving the agenda with moving communications /open forum to item 5.2. Motion carried unanimously.
The following Courtesy and Respect Awards were presented: May - Erick Rossow, April - Noah James, March - Katelyn Lee
6:35 PM Chair Aho moved the meeting to the HS Media Center for the Communications / Open Forum segment. Several adults and students spoke concerning the hs / ms music program.
The board reconvened in the board room at 7:05 PM.
Motion by Grochow, seconded by Engh, approving payment of bills as presented including payroll, hand payables and contingency totaling $2,098,286.14. Motion carried unanimously. (A complete list of bills is available from the District Office for review.)
Curriculum Advisory Committee (CAC) Report: None
MAWSECO Report: Written
Community Education Report: Written
Business Manager’s Report: Business Manager Palmer reported expenditures are in line with budget through the end of the eleventh month of the fiscal year and reviewed the investment report with the board.
Student Representative’s Report: included updates on spring activities and the DC Triathalon
Superintendent’s Report: Powers reported on hiring and the end of the year schedule
SEE: Written
Negotiations: Aho reported that certified negotiations had filed for mediation.
Motion by Bender, seconded by Engh, approving all consent items, which included approval of the minutes from the April 18, 2019 Special Board Meeting (subcommittee certified), April 22, 2019, Regular Board Meeting, April 25, 2019 Special Board Meeting (subcommittee certified), May 13, 2019 Special Board Meeting, May 13, 2019 Special Board Meeting (subcommittee certified) and the May 20, 2019 Special Board Meeting (subcommittee certified). Approval of the wire transfers made April 23rd for $125,000, April 24th for $400,000, April 30th for $800,000, May 10th for $125,000 and May 15th for $700,000. Personnel items: Approve retirement/resignation of Steve Dalen as High School Custodian effective 6/7/2019, Approve resignation of Alyssa Anderson as MS Volunteer Coordinator effective 6/6/2019, Approve resignation of Sarah Polzin as an ECFE Paraeducator effective 5/29/2019, Approve resignation of John Barberg as HS Media Center Paraeducator effective 6/5/2019, Approve resignation of Amanda Johnson as a Cokato Elementary Title 1 paraeducator effective 5/8/2019, Approve resignation of Tatum Sheley as MS 6th Grade Instructor at the end of the 2018-2019 school year, Approve resignation of Angela Lauderbaugh as MS Speech-Language Pathologist at the end of the 2018-2019 school year, Approve resignation of Nancy Jo Goettl as MS 5-8 Grade Vocal Music Instructor at the end of the 2018-2019 school year, Approve Volunteer Marching Band assignment for Wyatt Smith, Approve Volunteer Marching Band assignment for Adam Shew, approval of a 1 year unpaid child care leave of absence for Annette Bohnsack as Licensed School Nurse for the 2019-2020 school year, approval of up to 12 weeks FMLA Leave for Amanda Scherping beginning approximately 9/3/2019 through 11/22/19, approval of a 1 year unpaid general leave of absence for Brian Veith as the High School Instrumental Music Instructor for the 2019- 2020 school year, Approval of a lane changes for Maggie Busse from BA+45 to BA+60, for Heidi Kelly from BA to BA+15, for Katie Scepaniak from BA+45 to MA, Employment of Darrin Allen as High School Social Studies Instructor for the 2019-2020 school year, Employment of Aron Bohnert as Middle School Instrumental Music Instructor for the 2019-2020 school year, Employment of Michelle Downie as Middle School Vocal/General Music Instructor for the 2019-2020 school year, Employment of Nancy Jo Goettl as High School Vocal Music Instructor for the 2019-2020 school year, Employment of Jessica Juncewski as Middle School 5-8 STEM Instructor for the 2019-2020 school year, Employment of Laura Lambert as Middle School 5th Grade Instructor for the 2019-2020 school year, Reassignment of Holly Niska to Dassel Elementary Second Grade Instructor for the 2019-2020 school year, Employment of Sandy Stertz as Middle School 8th Grade Math/Social Studies Instructor for the 2019-2020 school year, Approval of Summer 2019 list of Community Education Coaches/Instructors. Acceptance of Donations from: Dairy Queen - $313.50 to Cokato Elementary, Dairy Queen - $313.50 to Dassel Elementary, Community Shares of MN & Joelle Woetzel – $100 to Dassel Elementary, Charities Aid Foundation of America - $318.24 to Dassel Elementary, Box Tops of Education - $105 to Dassel Elementary, Bike Rally Donations to Dassel Elementary: $200 from Lions Club of Cokato- Dassel, Inc., $100 from JR Oil, $150 from Wells Fargo Bank, $25 from JC Fitness, Inc., $200 from Dassel Fireman Relief Association, Dassel-Cokato Cheerleading - $1,126.53 to the cheerleading program, Charities Aid Foundation of America & Janet Nesseth- $77.64 to the Robotics program. Motion carried unanimously.
The board was presented with tax impact numbers for a 32 million bond. They briefly discussed bond timing and decided to delay further discussion until there was a full board present.
Motion by Engh, seconded by Grochow, approving the LTFM / Capital budget. Motion carried unanimously.
Motion by Sangren, seconded by Engh, approving the Health and Physical Education curriculum as recommended by the CAC. Motion carried unanimously.
Motion by Bender, seconded by Sangren, approving the World Languages curriculum as recommended by the CAC. Motion carried unanimously.
Motion by Grochow, seconded by Bender, approving sale of the vocational house to Marcus Building Movers for $41,200 plus applicable tax. Motion carried unanimously.
Independent School District No. 466
(Dassel-Cokato), Minnesota
Board member Engh introduced the following resolution and recommended its adoption:
Adopting Post-Issuance Debt Compliance Policy for Tax-exempt and Tax-advantaged Governmental Bonds
WHEREAS, the Independent School District No. 466 of (Dassel-Cokato), Minnesota (the “District”) from time to time will issue tax-exempt and tax-advantaged governmental bonds; and
WHEREAS, under the Internal Revenue Code of 1986, as amended and related regulations (the “Code”), and Securities and Exchange Commission (the “SEC”) the District is required to take certain actions after bond issuance to ensure that interest on those bonds remains in compliance with the Code and SEC; and
WHEREAS, the District has determined to adopt a policy regarding how the District will carry out its compliance responsibilities via written procedures, and to that end, has caused to be prepared documents titled Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures; and
WHEREAS, The School Board (the “Board”) of the District has reviewed the Post-Issuance Debt Compliance Policy in connection with the Post-Issuance Debt Compliance Procedures and has determined that it is in the best interest of the District to adopt the Policy.
NOW THEREFORE, BE IT RESOLVED BY THE INDEPENDENT SCHOOL DISTRICT NO. 466 (DASSEL-COKATO), MINNESOTA; the Board approves the Policy as shown in the form attached; and
BE IT FURTHER RESOLVED; the District staff is authorized to take all actions necessary to carry out the Post-Issuance Debt Compliance Policy and Post-Issuance Debt Compliance Procedures.
Motion for the adoption of the foregoing resolution was duly seconded by member Sangren and upon a roll call vote being taken thereon, the following members voted in favor thereof: Sangren, Engh, Aho, Bender, Grochow
Against: none
Adopted by the Independent School District No. 466 (Dassel-Cokato), Minnesota this 28 day of May, 2019.
William Aho, Board Chair
Andy Engh, Board Clerk
Independent School District No. 466
(Dassel-Cokato), Minnesota
Post-Issuance Debt Compliance Policy
The School Board (the “Board”) of the Independent School District No. 466 (Dassel-Cokato), Minnesota (the “District”) has chosen, by policy, to take steps to help ensure that all obligations will be in compliance with all applicable federal regulations. This policy may be amended, as necessary, in the future.
IRS Background
The Internal Revenue Service (IRS) is responsible for enforcing compliance with the Internal Revenue Code (the “Code”) and regulations promulgated thereunder (“Treasury Regulations”) governing certain obligations (for example: tax-exempt obligations, Build America Bonds, Recovery Zone Development Bonds and various “Tax Credit” Bonds). The IRS encourages issuers and beneficiaries of these obligations to adopt and implement a post-issuance debt compliance policy and procedures to safeguard against post-issuance violations.
SEC Background
The Securities and Exchange Commission (SEC) is responsible for enforcing compliance with the SEC Rule 15c2-12 (the “Rule”). Governments or governmental entities issuing obligations generally have a requirement to meet specific continuing disclosure standards set forth in continuing disclosure agreements (“CDA”). Unless the issuer, obligated person, or a specific obligation is exempt from compliance with CDAs, these agreements are entered into at the time of obligation issuance to enable underwriter(s) to comply with the Rule. The Rule sets forth certain obligations of (i) underwriters to receive, review and disseminate official statements prepared by issuers of most primary offerings of municipal securities, (ii) underwriters to obtain CDAs from issuers and other obligated persons to provide material event disclosure and annual financial information on a continuing basis, and (iii) broker-dealers to have access to such continuing disclosure in order to make recommendations of municipal securities transactions in the secondary market. The SEC encourages issuers and beneficiaries adopt and implement a post-issuance debt compliance policy and procedures to safeguard against Rule violations.
When obligations are issued, the CDA commits the issuer or obligated person to provide certain annual financial information and material event notices to the public. Issuers and other obligated persons may also choose to provide periodic, voluntary financial information and filings to investors in addition to fulfilling the specific responsibilities delineated in their CDA. It is important to note that issuers and other obligated persons should not give any one investor certain information that is not readily available to all market participants by disseminating information to the marketplace, at large. Issuers and other obligated persons should be aware that any disclosure activities determined to be “communicating to the market” can be subject to regulatory scrutiny.
Post-Issuance Debt Compliance Policy Objective
The District desires to monitor these obligations to ensure compliance with the IRS Code, Treasury Regulations and the SEC Rule. To help ensure compliance, the District has developed the following policy (the “Post-Issuance Debt Compliance Policy”). The Post-Issuance Debt Compliance Policy shall apply to the obligations mentioned above, including bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or any other form of debt that is subject to compliance.
Post-Issuance Debt Compliance Policy
The Business Manager of the District is designated as the District’s agent who is responsible for post-issuance compliance of these obligations.
The Business Manager shall assemble all relevant documentation, records and activities required to ensure post-issuance debt compliance as further detailed in corresponding procedures (the “Post-Issuance Debt Compliance Procedures”). At a minimum, the Post-Issuance Debt Compliance Procedures for each qualifying obligation will address the following:
1. General Post-Issuance Compliance
2. General Recordkeeping
3. Arbitrage Yield Restriction and Rebate Recordkeeping
4. Expenditure and Asset Documentation to be Assembled and Retained
5. Miscellaneous Documentation to be Assembled and Retained
6. Additional Undertakings and Activities that Support Sections 1 through 5 above
7. Continuing Disclosure Obligations
8. Compliance with Future Requirements
The Business Manager shall apply the Post-Issuance Debt Compliance Procedures to each qualifying obligation and maintain a record of the results. Further, the Business Manager will ensure that the Post-Issuance Debt Compliance Policy and Procedures are updated on a regular and as needed basis.
The Business Manager or any other individuals responsible for assisting the Business Manager in maintaining records needed to ensure post-issuance debt compliance, are authorized to expend funds as needed to attend training or secure use of other educational resources for ensuring compliance such as consulting, publications, and compliance assistance.
Most of the provisions of this Post-Issuance Debt Compliance Policy are not applicable to taxable governmental obligations unless there is a reasonable possibility that the District may refund their taxable governmental obligation, in whole or in part, with the proceeds of a tax-exempt governmental obligation. If this refunding possibility exists, then the Business Manager shall treat the taxable governmental obligation as if such issue were an issue of tax-exempt governmental obligations and comply with the requirements of this Post-Issuance Debt Compliance Policy.
Private Activity Bonds
The District may issue tax-exempt obligations that are “private activity” bonds because either (1) the bonds finance a facility that is owned by the District but used by one or more qualified 501(c)(3) organizations, or (2) the bonds are so-called “conduit bonds”, where the proceeds are loaned to a qualified 501(c)(3) organization or another private entity that finances activities eligible for tax-exempt financing under federal law (such as certain manufacturing projects and certain affordable housing projects). Prior to the issuance of either of these types of bonds, the Business Manager shall take steps necessary to ensure that such obligations will remain in compliance with the requirements of this Post-Issuance Debt Compliance Policy.
In a case where compliance activities are reasonably within the control of a private party (i.e., a 501(c)(3) organization or conduit borrower), the Business Manager may determine that all or some portion of compliance responsibilities described in this Post-Issuance Debt Compliance Policy shall be assigned to the relevant party.
In the case of conduit bonds, the conduit borrower will be assigned all compliance responsibilities other than those required to be undertaken by the District under federal law. In a case where the Business Manager is concerned about the compliance ability of a private party, the Business Manager may require that a trustee or other independent third party be retained to assist with record keeping for the obligation and/or that the trustee or such third party be responsible for all or some portion of the compliance responsibilities.
The Business Manager is additionally authorized to seek the advice, as necessary, of bond counsel and/or its financial advisor to ensure the District is in compliance with this Post-Issuance Debt Compliance Policy.
Adopted this date May 28, 2019 by the Independent School District No. 466 (Dassel-Cokato), Minnesota
Independent School District No. 466
(Dassel-Cokato), Minnesota
Post-Issuance Debt Compliance Procedures
The School Board (the “Board”) of the Independent School District No. 466 (Dassel-Cokato), Minnesota (the “District”) has adopted the attached Post-Issuance Debt Compliance Policy dated May 28, 2019. The Post-Issuance Debt Compliance Policy applies to qualifying debt obligations issued by the District. As directed by the adoption of the Post-Issuance Debt Compliance Policy, the Business Manager of the District will perform the following Post-Issuance Debt Compliance Procedures for all of the District’s outstanding debt.
9. General Post-Issuance Compliance
a. Ensure written procedures and/or guidelines have been put in place for individuals to follow when more than one person is responsible for ensuring compliance with Post-Issuance Debt Compliance Procedures.
b. Ensure training and/or educational resources for post-issuance compliance have been approved and obtained.
c. The Business Manager understands that there are options for voluntarily correcting failures to comply with post-issuance compliance requirements (e.g. as remedial actions under Section 1.141-12 of the Treasury Regulations and the ability to enter into a closing agreement under the Tax-Exempt Bonds Voluntary Closing Agreement Program described in Notice 2008-31(the “VCAP Program”)).
10. General Recordkeeping
a. Retain records and documents for the obligation and all obligations issued to refund the obligation for a period of at least seven years following the final payment of the obligation. If an obligation is refunded, then the final payment of the refunding obligation becomes the beginning of the period unless otherwise directed by the District’s bond counsel.
b. Retain electronic (preferred) and/or paper versions of records and documents for the obligation.
c. General records and documentation to be assembled and retained:
i. Description of the purpose of the obligation (i.e. the project or projects) and the state statute authorizing the project.
ii. Record of tax-exempt status or revocation of tax-exempt status, if applicable.
iii. Any correspondence between the District and the IRS.
iv. Audited financial statements.
v. All accounting audits of property financed by the obligation.
vi. Obligation transcripts, official statements, and other offering documents of the obligation.
vii. Minutes and resolutions authorizing the issuance of the obligation.
viii. Certifications of the issue price of the obligation.
ix. Any formal elections for the obligation (i.e. an election to employ an accounting methodology other than the specific tracing method).
x. Appraisals, demand surveys, or feasibility studies for property financed by the obligation.
xi. All information reports filed for the obligations.
xii. All management contracts and other service agreements, research contracts, and naming rights contracts.
xiii. Documents related to governmental grants associated with construction, renovation or purchase of property financed by the obligation.
xiv. Reports of any prior IRS examinations of the District or the District’s obligation.
xv. All correspondence related to the above (faxes, emails, or letters).
11. Arbitrage Yield Restriction and Rebate Recordkeeping
a. Investment and arbitrage documentation to be assembled and retained:
i. An accounting of all deposits, expenditures, interest income and asset balances associated with each fund established in connection with the obligation. This includes an accounting of all monies deposited to the debt service fund to make debt service payments on the obligation, regardless of the source derived. Accounting for expenditures and assets is described in further detail in Section 4.
ii. Statements prepared by Trustee and/or Investment Provider.
iii. Documentation of at least quarterly allocations of investments and investment earnings to each obligation.
iv. Documentation for investments made with obligation proceeds such as:
1. investment contracts (i.e. guaranteed investment contracts),
2. credit enhancement transactions (i.e. obligation insurance contracts),
3. financial derivatives (e.g. swaps, caps, and collars), and
4. bidding of financial products:
a. Investments acquired with obligation proceeds are purchased at fair market value (e.g. three bid safe harbor rule for open market securities needed in advance refunding escrows).
b. Computations of the arbitrage yield.
c. Computations of yield restriction and rebate amounts including but not limited to:
i. Compliance in meeting the “Temporary Period from Yield Restriction Exception” and limiting the investment of funds after the temporary period expires.
ii. Compliance in meeting the “Rebate Exception.”
1. qualifying for the “Small Issuer Exception,”
2. qualifying for a “Spending Exception,”
a. 6-Month Spending Exception
b. 18-Month Spending Exception
c. 24-Month Spending Exception
3. qualifying for the “Bona Fide Debt Service Fund Exception,” and
4. quantifying arbitrage on all funds established in connection with the obligation in lieu of satisfying arbitrage exceptions including reserve funds and debt service funds.
d. Computations of yield restriction and rebate payments.
e. Timely Tax Form 8038-T filing, if applicable.
i. Remit any arbitrage liability associated with the obligation to the IRS at each five-year anniversary date of the obligation, and the date in which the obligation is no longer outstanding (redemption or maturity date), whichever comes sooner, within 60 days of said date.
f. Timely Tax Form 8038-R filing, if applicable.
i. Remit the form after the date in which the obligation is no longer outstanding (redemption or maturity date), whichever comes sooner, within 2 years of said date.
g. Procedures or guidelines for monitoring instances where compliance with applicable yield restriction requirements depends on subsequent reinvestment of obligation proceeds in lower yielding investments (e.g. reinvestment in zero coupon SLGS).
12. Expenditure and Asset Documentation to be Assembled and Retained
a. Documentation of allocations of obligation proceeds to expenditures (e.g. allocation of proceeds to expenditures for the construction, renovation or purchase of facilities owned and used in the performance of exempt purposes).
i. Such allocation will be done not later than the earlier of:
1. eighteen (18) months after the later of the date the expenditure is paid, or the date the project, if any, that is financed by the obligation is placed in service; or
2. the date sixty (60) days after the earlier of the fifth anniversary of the issue date of the obligation, or the date sixty (60) days after the retirement of the obligation.
b. Documentation of allocations of obligation proceeds to issuance costs.
c. Copies of requisitions, draw schedules, draw requests, invoices, bills, and cancelled checks related to obligation proceed expenditures during the construction period.
d. Copies of all contracts entered into for the construction, renovation or purchase of facilities financed with obligation proceeds.
e. Records of expenditure reimbursements incurred prior to issuing obligations for projects financed with obligation proceeds (declaration of official intent/reimbursement resolutions including all modifications).
f. List of all facilities and equipment financed with obligation proceeds.
g. Depreciation schedules for depreciable property financed with obligation proceeds.
h. Documentation that tracks the purchase and sale of assets financed with obligation proceeds.
i. Documentation of timely payment of principal and interest payments on the obligation.
j. Tracking of all issue proceeds and the transfer of proceeds into the debt service fund as appropriate.
k. Documentation that excess earnings from a Reserve Fund are transferred to the Debt Service Fund on an annual basis. Excess earnings are balances in a Reserve Fund that exceed the Reserve Fund requirement.
13. Miscellaneous Documentation to be Assembled and Retained
a. Ensure that the project, while the obligation is outstanding, will avoid IRS private activity concerns.
b. The Business Manager shall monitor the use of all obligation-financed facilities in order to:
i. Determine whether private business uses of obligation-financed facilities have exceeded the deminimus limits set forth in Section 141(b) of the Code as a result of:
1. sale of the facilities;
2. sale of District capacity rights;
3. leases and subleases of facilities including easements or use arrangements for areas outside the four walls (e.g. hosting of cell phone towers);
4. leasehold improvement contracts, licenses, management contracts in which the District authorizes a third party to operate a facility (e.g. cafeteria);
5. research contracts;
6. preference arrangements in which the District permits a third-party preference (e.g. parking in a public parking lot, joint ventures, limited liability companies or partnership arrangements);
7. output contracts or other contracts for use of utility facilities including contracts with large utility users;
8. development agreements which provide for guaranteed payments or property values from a developer;
9. grants or loans made to private entities including special assessment agreements;
10. naming rights agreements; and
11. any other arrangements that provide special legal entitlements to nongovernmental persons.
ii. Determine whether private security or payments that exceed the de minimus limits set forth in Section 141(b) of the Code have been provided by nongovernmental persons with respect to such obligation-financed facilities.
c. The Business Manager shall provide training and educational resources to any District staff that have the primary responsibility for the operation, maintenance, or inspection of obligation-financed facilities with regard to the limitations on the private business use of obligation-financed facilities and as to the limitations on the private security or payments with respect to obligation-financed facilities.
d. The District shall undertake the following with respect to the obligations:
i. An annual review of the books and records maintained by the District with respect to such obligations.
ii. An annual physical inspection of the facilities financed with the proceeds of such obligations, conducted by the Business Manager with the assistance of any District staff who have the primary responsibility for the operation, maintenance, or inspection of such obligation-financed facilities.
e. Changes in the project that impact the terms or commitments of the obligation are properly documented and necessary certificates or opinions are on file.
14. Additional Undertakings and Activities that Support Sections 1 through 5 above:
a. The Business Manager will notify the District’s bond counsel, financial advisor and arbitrage provider of any survey or inquiry by the IRS immediately upon receipt. Usually responses to IRS inquiries are due within 21 days of receipt. Such IRS responses require the review of the above-mentioned data and must be in writing. As much time as possible is helpful in preparing the response.
b. The Business Manager will consult with the District’s bond counsel, financial advisor and arbitrage provider before engaging in post-issuance credit enhancement transactions (e.g. obligation insurance, letter of credit, or hedging transaction).
c. The Business Manager will monitor all “qualified tax-exempt debt obligations” (often referred to as “bank qualified” obligations) within the first calendar year to determine if the limit is exceeded, and if exceeded, will address accordingly. For obligations issued during years 2009 and 2010 the limit was $30,000,000. During this period, the limit also applied to pooled financings of the governing body and provides a separate $30,000,000 for each 501 (c)(3) conduit borrower. In 2011 and thereafter it is $10,000,000 unless changed by Congress.
d. Identify any post-issuance change to terms of obligations which could be treated as a current refunding of “old” obligations by “new” obligations, often referred to as a “reissuance.”
e. The Business Manager will consult with the District’s bond counsel prior to any sale, transfer, change in use or change in users of obligation-financed property which may require “remedial action” under applicable Treasury Regulations or resolution pursuant to the VCAP Program.
i. A remedial action has the effect of curing a deliberate action taken by the District which results in satisfaction of the private business test or private loan test. Remedial actions under Section 1.141-12(d)(e) and (f) include the redemption of non-qualified obligations and/or the alternative uses of proceeds or the facility (i.e. to be used for another qualified purpose).
f. The Business Manager will ensure that the appropriate tax form for federal subsidy payments is prepared and filed in a timely fashion for applicable obligations (e.g. Build America Bonds).
15. Continuing Disclosure Obligations
a. Identify a position at the District to be responsible for compliance with continuing disclosure obligations as defined by the Rule and any policies of the District.
b. The position responsible for compliance may have the ability to assign responsibilities, delegate where appropriate or engage a dissemination agent or third-party service providers to perform all or some of the duties described in this section. The District cannot delegate its compliance responsibilities.
c. The District should specify how providers or delegated authorities will be monitored and supervised.
d. The District should identify the documents that set forth the respective requirements being monitored at the time of closing for each obligation.
e. The District should catalog all outstanding Continuing Disclosure Agreements and establish consolidated filing requirements based on the outstanding CDAs.
f. The District should identify the frequency of the actions to be undertaken to ensure compliance, establish a system or filing alerts or reminders to administer the filing requirements.
g. The Business Manager for compliance must be made aware of any new outstanding debt, changes to obligation or loan covenants, events of acceleration or default that would materially affect investors.
h. The District should review a compliance checklist to verify compliance with CDA requirements, at least annually, although it may be advisable to provide more frequent reviews in connection to specific material events.
i. The District should monitor mandatory material events specifically identified in accordance with the Rule and file required notices within 10 days of occurrence.
i. Principal and interest payment delinquencies.
ii. Non-payment related defaults, if material.
iii. Unscheduled draws on debt service reserves reflecting financial difficulties.
iv. Unscheduled draws on credit enhancements reflecting financial difficulties.
v. Substitution of credit or liquidity providers or their failure to perform.
vi. Adverse tax opinion, IRS notices or material events affecting the tax status of the obligation.
vii. Modifications to rights of security holders, if material.
viii. Obligation calls, if material.
ix. Defeasances.
x. Release, substitution or sale of property securing repayment of the obligations, if material.
xi. Rating Changes.
xii. Bankruptcy, insolvency, receivership, or similar event of the obligated person(s).
xiii. Merger, consolidation, or acquisition of the obligated person, if material.
xiv. Appointment of a successor or additional trustee, or change of name of a trustee, if material.
xv. Incurrence of financial obligation of the District, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the District, any of which affect security holders, if material.
xvi. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the District, any of which reflect financial difficulties.
j. In addition to the mandatory material events, the District should review and file any additional or voluntary event notices.
k. The District should maintain a catalog of all outstanding obligations whether publicly offered or privately placed, and the terms and conditions that govern default or acceleration provisions.
l. Any missed filing requirement should be remedied with a failure to file notice as soon as possible once the late filing is identified and the required information is available to file.
m. Sensitive information such as bank accounts and wire information should be redacted from documents prior to posting on EMMA.
n. The District needs to monitor for changes in law and regulations that effect continuing disclosure obligations and review disclosure policies and procedures periodically to ensure compliance and consistency with regulation and market expectations.
16. Compliance with Future Requirements
a. Take measures to comply with any future requirements issued beyond the date of these Post-Issuance Debt Compliance Procedures which are essential to ensuring compliance with the applicable state and federal regulations.
Being no further business, the meeting adjourned at 8:00 PM.
Andy Engh, Clerk
This document is available in the following formats upon request: Braille, Large Print, Audio Cassette Tape, and Computer Disk. Please call (320-286-4100) for more information or to request a copy.
Published in the Enterprise Dispatch June 14, 2019.