The City of Mount Pleasant is taking bids for Interim Financing. Bid packages are available on our website at or in person at

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1 The City of Mount Pleasant is taking bids for Interim Financing. Bid packages are available on our website at or in person at City Hall. Sealed bids must be received in the Finance Office no later than Wednesday, March 6, 2019 at 10:00 am. If you have questions, please contact Loretta Garner, CPA at (931) , ext 104 or The City reserves the right to reject any and all bids and to waive informalities. The City does not discriminate on the basis of race, creed, color, national origin, sex, religion, age or disability status in employment or the provision of services.

2 BID REQUEST FOR TAX-EXEMPT BOND ANTICIPATION NOTE Maximum Interim Financing Amount $6,627,000 CITY OF MOUNT PLEASANT, TENNESSEE RFP The City of Mount Pleasant, Tennessee (the "Borrower") is soliciting sealed bids for a tax-exempt, bank-qualified bond anticipation note in the amount of $6,627,000 to be used for the construction of capital projects which will ultimately be funded with a loan from the United States of America, acting through Rural Development. Key Terms Maximum Loan Amount $6,627,000 Method of Advance of Funds City prefers to draw funds, as needed, to finance construction costs. All expenditures of note proceeds must be approved by USDA/Rural Development Maturity Interest Security Two years Fixed (1) USDA - Rural Development loan proceeds USDA funding commitment will be provided (2) Pledge of water and sewer system revenues (3) General obligation pledge of the City Prepayment Pre-payable at any time, without penalty Authorizing Document Bond Resolution adopted June 19, 2018 Legal Opinion and Other Closing Bass, Berry & Sims PLC will prepare all note Documentation closing documents, including an opinion regarding the validity of the note and the taxexempt/bank-qualified status of the note. Cost of Legal Opinion and other Closing Documentation Approximate Closing Date Funded by City from note proceeds Within 30 days of bid award, as determined by the Mount Pleasant Board of Commissioners

3 A bid form is attached to this notice. Deadline for accepting bids is Wednesday, March 6, 2019, at 10 am, central time. Please send bid to: Loretta Garner, CPA, CMFO PO Box 426 Mount Pleasant, TN Phone: (931) ext Bids must be valid for a period of 180 days following submission. Bids must be sealed and have the following caption on the outside of the bid: Attention: Loretta Garner, Finance Director Interim Financing Bid, March 6, 2019 Envelope Not to be opened until that time The City reserves the right to reject any and all bids and to waive informalities. The City does not discriminate on the basis of race, creed, color, national origin, sex, religion, age or disability status in employment or the provision of services. 2

4 Bid Form for City of Mount Pleasant, Tennessee $6,627,000 Water and Sewer Revenue and Tax Bond Anticipation Note USDA/Rural Development Loan Program Bank Name Bank Contact Information (include phone and ) Fixed Interest Rate (if applicable) Variable Rate (if applicable) (identify index) Bank Closing Costs Bank legal fees $ Origination fees $ Other fees $ Total fees $ Name of Bank Date 3

5 USDA MOM United States Department of Agriculture Rural Development Lawrenceburg Area Office 237 Waterloo Street Lawrenceburg, TN x x1493 Fax September 4, 2018 Reference is made to a request from the City of Mount Pleasant through Loretta Garner its Finance Director, for interim financing from your bank to construct its water system at the interest rate and terms and conditions agreed upon, as reflected in the attached copy of your letter. This letter is to confirm certain understandings on behalf of the Rural Development. Funds have been obligated for the project by the Rural Development. The engineer is in the process of preparing plans for the project. It is proposed by the City with the approval of the Rural Development that the bank advance funds, in accordance with the agreed terms and conditions stated in the attached letter, as needed to pay for construction and other authorized and legally eligible expenses incurred by the City, upon presentation of proper statements or work estimates approved by the City's authorized representative and the authorized official of the Rural Development. We have scheduled the Rural Development loan to be closed when construction to be financed with loan funds is substantially complete, so that funds will be available to pay off the total amount of advances your bank has made for authorized approved purposes, including accrued interest to the date of closing. $203,000 of the $6,830,000 loan is reserved to pay this accrued interest therefore your maximum loan should not exceed $6,627,000 in principal disbursement. We appreciate your assistance to the community and look forward to working with you on this project. Sincerely, ST VE D. SHELTON Area Specialist USDA is an equal opportunity provider, employer and lender.

6 USDA United States Department of Agriculture Rural Development March 30, 2018 Lawrenceburg Area Office 237 Waterloo Street Lawrenceburg, TN x x1493 Fax Mr. James Bailey, Mayor City of Mt Pleasant P.O. Box 426 Mt Pleasant, TN RE: $6,830,000 RUS Loan and $2,500,000 RUS Grant $525,000 CDBG - Wastewater Treatment Plant Improvements Dear Mayor Bailey: This letter establishes conditions which must be understood and agreed by you before further consideration may be given to your application. The loan and grant will be administered by the State and Area Staff of USDA, Rural Development. The project scope is based on the Preliminary Engineering Report by Barge Waggoner Sumner & Cannon, Inc. dated November 2016 and revised May, Any changes in project cost, source of funds, scope of services, or any other significant changes in the project or applicant must be reported to and approved by USDA, Rural Development, by written amendment to this letter. If significant changes are made without obtaining such approval, USDA, Rural Development may discontinue processing of the application. This letter does not constitute loan or grant approval, nor does it ensure that funds are or will be available for the project. The interest rate will be the lower of the rate in effect at the time of loan approval or the time of loan closing. If you do not want the interest rate changed to the lower rate at loan closing, you should submit a written request to USDA, Rural Development staff at least 30 calendar days before loan closing. The loan and grant will be considered approved on the date a signed copy of Form RD , "Request for Obligation of Funds," is mailed to you. Please complete and return the enclosed Form RD , "Letter of Intent to Meet Conditions," and Form RD , "Request for Obligation of Funds," within the next 30 days if you desire further consideration be given to your application. Within 365 days of this letter, you must meet all of the conditions set forth which can be met prior to calling for construction bids. If you have not done so, USDA, Rural Development reserves the right to discontinue the processing of your application. The docket may be completed on the basis of the following: 1. Funding from all sources has been budgeted for the estimated expenditures as outlined in the PER by Barge Waggoner Sumner & Cannon, Inc. dated November 2016 and revised May, USDA is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form (PDF), found online at filing_cust.html, or at any USDA office, or call (866) to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington. D C , by fax (202) or at programintake@usda.goy.

7 2 2. Project Budget Funding from all sources has been budgeted for the estimated expenditures as follows: PToiect Costs: Total Budgeted -. Construction $3,980, Refinancing SRLF $3,400, Legal Fees $ Environmental Report.00 Engineering Fees $1,128, Prel. Rpt..00 Basic.00 Insp. Add'I..00 Interest $ Project Contingency $1,099, Equipment.00 TOTALS $9,855, The funding for the project consists of $6,830,000 USDA, Rural Development Loan, and $2,500,000 USDA, Rural Development Grant. An Agreement should be reached with all funding sources on how funds are to be disbursed before the start of construction. 4. The Applicant shall use all USDA, Rural Development Loan funds scheduled for use on the project before USDA, Rural Development grant funds are requested. After providing for all authorized costs, any remaining USDA, Rural Development project funds will be considered to be grant funds and refunded to USDA, Rural Development. If the amount of unused USDA, Rural Development project funds exceeds the USDA, Rural Development grant, that part would be USDA, Rural Development loan funds. 5. Remaining funds may be considered in direct proportion to the amounts obtained from each source and handled as follows: Remaining funds may be used for eligible loan and grant purposes, provided the use will not result in major changes to the original scope of work and the purpose of the loan and grant remains the same. USDA, Rural Development loan funds that are not needed will be applied as an extra payment on the USDA, Rural Development indebtedness unless.other disposition is required by the bond ordinance, resolution, or State statue. 6. Grant funds not expended for authorized purposes will be cancelled within 365 days of project completion. Prior to actual cancellation; you, your attorney and your engineer will be notified of USDA, Rural Development's intent to cancel the remaining funds and given appropriate appeal rights. 7. Loan funds include $203,000 to pay interest charged by the interim lender or interest on USDA, Rural Development advances, whichever applies. Interim financing will be used if it is available at reasonable'rates and terms. If interim financing is not available, USDA Rural Development multiple advances will be used during the construction period.

8 8. All funds including those from USDA, Rural Development shall be deposited in a special construction account. USDA, Rural Development funds will be distributed electronically through use of Form SF 3881 "Electronic Funds Transfer Payment Enrollment Form". You must provide the necessary information for both your organization and your financial institute as required on the attached Form SF You must assure that the Financial Institute handling the construction account provides adequate collateral to secure the largest amount expected to be in the account at any time. All bills and invoices must be approved by USDA, Rural Development before payment is made from this account Disbursement of Grant Funds The USDA, Rural Development grant funds will be advanced as they are needed in the amount(s) necessary to cover the USDA, Rural Development proportionate share of obligations due and payable by the grantee. (For public bodies add) interest earned on grant funds in excess of $100 per year will be submitted to USDA, Rural Development at least quarterly as required in 7CFR3016. (For Non Profits use) interest earned on grant funds in excess of $250 per year will be remitted to USDA, Rural Development annually as required in 7CFR The USDA, Rural Development loan will be evidenced and secured by a revenue and tax deficiency bond. The bond will be junior to outstanding issues. The bond resolution will contain a provision that prohibits defeasance so long as the government is holder of the bond. 11. The loan will be repaid over a period not to exceed 40 years. The principal and interest will be amortized monthly over the 40 years period at poverty rate. The amortized payment will be due 30 days from the date of the bond and each month thereafter until the bond is paid in full. The Applicant must participate in the Preauthorized Debit (PAD) payment process. The payment will be electronically debited from the Applicant's account on the day the payment is due. 12. Reserves Reserves must be property budgeted to maintain the financial viability of any operation. Reserves are important to fund unanticipated emergency maintenance and repairs and assist with debt service should the need arise. Reserves can also be established and maintained for the anticipated and expected expenses including but not limited to operation and maintenance, customer deposits, and asset management for short-lived assets. It has been determined as part of this funding proposal that you have sufficient funds to establish reserves for the following purposes and amounts: Operation and Maintenance $ Existing Debt Service Reserve $.00 Asset Management.00 Customer Deposits.00

9 4 In addition, you must fund an asset management reserve for short-lived assets by depositing a sum of $8, monthly in addition to that required for the debt service reserve. Additional reserves should be established for the following purposes and monthly deposits made as outlined: 13. The feasibility of the loan is based on 1343 existing users. The Area Director will verify the number of users. 14. The applicant must maintain a rate schedule that provides adequate income to meet the minimum requirements for operation and maintenance, debt service, and reserves. O&M expenses must be properly budgeted to determine the financial viability of any operation. The project is based on financial feasibility as reflected in the submitted budget by the applicant. If there are changes affecting projected revenue, operation and maintenance, debt service and reserves prior to the project being ready to close, the applicant will submit an updated budget reflecting repayment ability. It is expected that O&M will change over each successive year and user rates will need to be adjusted for the need. 15. The Applicant must adopt strict policies regarding the handling of delinquent accounts, new developments, subdivisions, and mobile home parks. 16. Delayed Payment Penalty a. On all accounts not paid in full within 20 days of date of bill up to ten percent will be added to net amount due. b. If any bill is not paid within 30 days after the due date, service to the customer will be discontinued. Service will not be restored until all past due bills have been paid in full and all accrued penalties plus a reconnection charge have been paid. The reconnection charge will be up to $ Property insurance will be required on all above-ground structures with the exception of water reservoirs, stand pipes, elevated tanks, and other non-combustible materials in the amount of their replacement value. 18. The Applicant will carry suitable workman's compensation insurance for all of its employees in accordance with state laws. 19. Public liability and property damage insurance will be required including coverage on any trucks, tractors, or other vehicles driven over public highways. The insurance must be in effect at the time of loan closing or start of construction, whichever occurs first. The amount of coverage will be determined by the Applicant in consultation with its attorney and representatives of USDA, Rural Development.

10 5 20. A position fidelity bond in the amount at least equal to the total annual debt service requirements for USDA, Rural Development loans will be provided for the person or persons responsible for funds on hand. (Form RD , "Position Fidelity Schedule Bond," may be used.) USDA, Rural Development must be provided evidence of adequate fidelity bond coverage. 21. The Applicant will furnish audit reports annually. The audit should be conducted in accordance with Generally Accepted Government Auditing Standards GAGAS, by a Certified Public Accountant or Licensed Public Accountant. They must be certified or licensed in the State of Tennessee. The Applicant's accounting system shall be established and approved by USDA, Rural Development before the loan is closed. 22. The Applicant shall enter into a contract for legal services with an attorney of its choice. The bond, bond resolution, and other legal documents compiling a bond transcript will be developed by the Applicant's attorney with the assistance of a recognized bond counsel and with the advice of appropriate USDA, Rural Development officials and Office of General Counsel, Regional Attorney. The attorney for the Applicant will contract with bond counsel for legal services and will pay for such services from the fee paid to the attorney by the Applicant. The form of the contract should conform to RUS Bulletin , "Legal Service Agreement," and the cost of the legal services shall not be in excess of that specified in said contract without the written consent of USDA, Rural Development. 23. A copy of the deeds, contracts or options for any land, other than rights-of-way, needed by the Applicant for use in developing the project must be submitted prior to advertisement for construction bids. Any land acquired must be by fee simple title, free and clear of all liens and encumbrances. The attorney for the Applicant must issue a preliminary title opinion with the docket prior to closing and issue a final title opinion after the loan is closed. Form RD , "Preliminary Title Opinion," may be used by the attorney for the preliminary title opinion. 24. Applicant must acquire easements and rights-of-way prior to advertisement of construction bids. Lines will be located on private property unless authorized in writing by USDA, Rural Development for the lines to be located on road right-of-way. Applicant may use Form RD , "Right-of-Way Easement," in procuring the right-of-way easements. The Applicant must issue a right-of-way certificate and provide a right-of-way map. Form RD , "Right-of-Way Certificate," may be used for this certificate. The attorney for the Applicant must issue an opinion relative to the rights-of-way and easements. Form RD , "Opinion of Counsel Relative to Rights-of-Way," may be used for this opinion.

11 25. USDA, Rural Development must approve any agreements or modifications to agreements for professional design services. The agreement for engineering services should consist of the EJCDC (Funding Agency Edition) documents as indicated in RUS Bulletin or other approved form of agreement. The engineer must be licensed in State of Tennessee and not be debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participating in this Government funded projects Resident Inspection Full-time inspection is required unless waived or modified by RD in writing prior to advertisement for bids. This service is to be provided by the consulting engineer or other arrangements as approved by RD. Prior to the pre-construction conference, a resume of qualifications of the resident inspector(s) will be submitted to the owner and RD for review and approval. The owner will provide a letter of acceptance for all proposed inspectors to the engineer and RD. The resident inspector(s) must attend the pre-construction conference. 27. The water system project must be designed, installed and operated in accordance with applicable laws, permits and regulations which include but are not limited to the Safe Drinking Water Act, Clean Water Act, Resource Conservation and Recovery Act, and State Statutes after completion of any proposed improvement. A copy of approved permits and certifications will be provided to USDA, Rural Development. 28. Final plans, specifications and contract documents must be approved in writing by the USDA, Rural Development State Director or designee prior to the advertisement of construction bids. The contract documents should consist of the EJCDC (Funding Agency Addition) Construction Contract Documents as indicated in RUS Bulletin or other approved form of agreement 29. Agreement Between Owner and Engineer for Professional Services, (E-500, A.2.01.A.30: Services required to determine and certify that to the best of the engineer's knowledge and belief all iron and steel products referenced in engineering analysis, the plans, specifications, bidding documents, and change orders requiring design revisions are either produced in the United States or are the subject of an approved waiver and services required to determine to the best of the engineer's knowledge and belief that approved substitutes, equals, shop drawings, and Partial Payment Estimates are also either produced in the United States or are the subject of an approved waiver under Section 746 of Title VII of the Consolidated Appropriations Act of 2017 (Division A Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2017). The term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. {The following waivers apply to this contract: Advertisement for Bids (C-111):

12 7 The following paragraph should be added as an article to the Advertisement for Bids. Section 746 of Title VII of the Consolidated Appropriations Act of 2017 (Division A - Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2017) applies an American Iron and Steel requirement to this project. All iron and steel products used in this project must be produced in the United States. The term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. (The following waivers apply to this contract) Instructions to Bidders (C-200): No need to add additional language as C-200, article refers to Supplemental General Conditions article 19. Supplemental General Conditions (C-800: SC 19.14): Section 746 of Title VII of the Consolidated Appropriations Act of 2017 (Division A Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2017) applies an American Iron and Steel requirement to this project. All iron and steel products used in this project must be produced in the United States. The term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. (The following waivers apply to this contract:) 30. The Applicant must enter into a loan agreement with United States of America using RUS Bulletin , "Loan Resolution." The agreement shall require that if at any time it shall appear to USDA, Rural Development that the Applicant is able to refinance the amount of the indebtedness then outstanding, in whole or in part, by obtaining a loan for such purposes from responsible cooperative or private credit sources, at reasonable rates and terms for loans for similar purposes and periods of time, the Applicant will, upon request of USDA, Rural Development, apply for and accept such loan in sufficient amount to repay USDA, Rural Development and will take all such actions as may be required in connection with such loan. 31. Forms RD 400-1, "Equal Opportunity Agreement," and RD 400-4, "Assurance Agreement," must be executed. 32. USDA, Rural Development Debt Collection Policies shall be explained and acknowledged through the execution of Form RD , "Application Certification, Federal Collection Policies for Consumer or Commercial Debts," prior to loan closing. 33. Form AD 1047, "Certification Regarding Debarment, Suspension, and Other Responsibility Matters," must be executed by Applicant. If there is a grant, Form AD 1049, "Certification Regarding Drug Free Workplace," must be executed by Applicant.

13 34. Enclosed is a copy of RUS Bulletin , "Water and Waste System Grant Agreement," for your review. You will be required to execute a completed form at the time of grant closing Applicant will certify compliance with other Federal statutes, including but not limited to Section 504 of the Rehabilitation Act of 1973, as amended, the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, and the Age Discrimination Act of You may wish to discuss this with your engineer and/or attorney before executing the certification. 36. The Applicant must be legally organized in accordance with state statutes and be enabled to perform all actions necessary in this obligation. 37. Cost overruns must be due to high bids or unexpected construction problems that cannot be reduced by negotiations, redesign, use of bid alternatives, rebidding or other means prior to consideration by USDA, Rural Development for subsequent funding. Such requests will be contingent on the availability of funds. Cost overruns exceeding 20% of the development cost at time of loan or grant approval or where the scope of the original purpose has changed will compete for funds with all other applications on hand as of that date. 38. Vulnerability Assessments (VA) and Emergency Response Plans (ERP) Congress enacted the Public Health Security and Bioterrorism Preparedness Response Act of 2002, Public Law (Bioterrorism Act). The Bioterrorism Act amended the Safe Drinking Water (SDWA) to require all medium and large sized community water systems (serving populations greater than 3,300) to assess vulnerability to terrorist attack and develop emergency plans for response to such an attack. Medium and large community water systems are being monitored by the U.S. EPA for completion of VA's and ERP's. Rural Development requires all financed water and wastewater systems to have a vulnerability assessment (VA) and an emergency response plan (ERP) in place. New water or wastewater systems must provide a certification that an ERP is complete prior to the start of operations. A certification that a VA is complete must be submitted within one year of the start of operations. All other borrowers must provide a certification that a VA and ERP are complete prior to bid authorization. You are encouraged to update your VA and ERP every three years after the start of operations. RD does not need or want a copy of the VA or ERP. The requested certification prior to closing will be sufficient to meet our needs. Technical assistance providers are available to provide onsite assistance if desired.

14 39. CCR Registration 9 Requirement for Central Contractor Registration (CCR) a) You as the recipient must maintain the currency of your information in the CCR until you submit the final financial report required under this award and all grants funds under this award have been disbursed or de-obligated, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term. Recipients can register on-line at ( 40. Awards made under this [program] are subject to the provisions contained in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No , Division A, Sections 738 and 739, regarding corporate felony convictions and corporate federal tax delinquencies. To comply with these provisions, ALL applicants must complete attachment Representation Regarding Felony Conviction or Tax Delinquent Status For Corporate Applicants paragraph (1) of this representation, AND all corporate applicants also must complete paragraphs (2) and (3) of this representation. Attachment Assurance Regarding Felony Conviction or Tax Delinquent Status for Corporate Applicants must be executed. 41. Section 746 of Title VII of the Consolidated Appropriations Act of 2017 (Division A Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2017) applies a new American Iron and Steel requirement: (1)No Federal funds made available for this fiscal year for the rural water, waste water, waste disposal, and solid waste management programs authorized by the Consolidated Farm and Rural Development Act (7 U.S.C et seq.) shall be used for a project for the construction, alteration, maintenance, or repair of a public water or wastewater system unless all of the iron and steel products used in the project are produced in the United States. (2)The term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. (3)The requirement shall not apply in any case or category of cases in which the Secretary of Agriculture (in this section referred to as the "Secretary") or the designee of the Secretary finds that a applying the requirement would be inconsistent with the public interest; b iron and steel products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality; or c inclusion of iron and steel products produced in the United States will increase the cost of the overall project by more than 25 percent.

15 42. Before the loan is closed, all requirements of this letter of conditions and the Regional'Attomey's closing instructions will be met Before start of construction, applicant's engineer will send approved letters including maps and related information to all tribal contacts listed for Maury County, TN. Tribes will be allowed 30 days to respond and any issues noted by the tribes will be addressed prior to beginning of construction with RD approval. We will work closely with you in developing the docket and will furnish you forms and guides to be used. We trust that loan closing and a completed water system will be accomplished at the earliest possible date. Project signs displayed at construction sites are an important part in keeping the public notified of improvements being made. A format that should be used when signs are constructed for projects funded from any of the USDA, Rural Development services will be provided. We would appreciate notification to this office at least two weeks in advance of setting the date for groundbreaking or dedication ceremonies. Q FAYE C. MCEWEN, AREA DIRECTOR cc: Kori Jones, Attorney Bass, Berry & Sims, Bond Counsel Barge, Waggoner, Sumner & Cannon, Inc., Engineer Auditor State Director, USDA, Rural Development