HomeMy WebLinkAbout233-08 RESOLUTIONRESOLUTION NO. 233-08
A RESOLUTION OF INTENT REGARDING THE REIMBURSEMENT OF
CERTAIN COSTS AND EXPENSES INCURRED IN CONNECTION WITH
THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF
IMPROVEMENTS TO THE WATER & SEWER SYSTEMS OF THE CITY
WHEREAS, the City of Fayetteville, Arkansas (the "City") desires to obtain financing
for the acquisition, construction and equipping of certain improvements to the City's water &
sewer systems (the "Project"); and
WHEREAS, the total costs of the Project, including expenses associated with the
financing thereof, are presently estimated to be approximately $7,500,000.00; and
WHEREAS, the City does not have adequate funds on hand to pay the estimated costs of
the Project and related expenses; and
WHEREAS, the City proposes to obtain the necessary funds to accomplish the Project
through tax-exempt revenue bonds to be issued by the City ("City Bonds"); and
WHEREAS, the total pnncipal amount of City Bonds allocated to the Project and related
expenses are not expected to exceed $7,500,000.00; and
WHEREAS, the purpose of this Resolution is for the City to declare its "official intent"
to reimburse itself for certain preliminary costs (incurred by or on behalf of the City and related
to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S. Department of Treasury
promulgated pursuant to the provisions of the Internal Revenue Code of 1986, as amended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS.
Section 1. That the adoption of this Resolution is intended as the City's `official intent"
to reimburse itself from the proceeds of City Bonds for preliminary costs of the Project and
related expenses advanced by the City. %%%%% rnnn,,
UFAYETTEVILLE
By: e In-Ni`'LG✓ C t `n r iiiiiiiii 1%%%%%
SO DRA E. SMITH, City Clerk/Treasurer
PASSED and APPROVED this 16s' day of December, 2008.
APPROVED: ATTEST:
By
DAN COODY, Mayor
David Jurgens
Submitted By
City of. Fayetteville:
Staff Review Form
City Council Agenda Items
or
Contracts
16 -Dec -06
City Council Meeting Date
Water & Wastewater Director
Division
Action Required:
3
064 / l41•
4/mburse-
Water/Wastewater
Department
Approval of a resolution of intent regarding the reimbursement of certain costs and expenses incurred in connection
with the acquisition, design, construction and equipping of improvements to the water and sewer systems of the City
in an amount of approximately $7,500,000.
Cost of this request
Account Number
Project Number
Budgeted Item
Category / Project Budget
$
Funds Used to Date
Remaining Balance
Budget Adjustment Attached
Water/Sewer
Program Category / Project Name
Water/Sewer
Program / Project Category Name
Water/Sewer
Fund Name
Depa
nt Do
City Attorney
$0J
Finance and Internal Service Director
Mayor
2h7uou cc(
Date
Date
Date
airs /il222
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Comments:
aye evi le
ARKANSAS
CITY COUNCIL AGENDA MEMO
City Council Meeting of December 16, 2008.
To: Fayetteville City Council
Thru: Mayor Dan Coody
Fayetteville Sewer Committee
From: David Jurgens, Water and Wastewater Director
Date: 25 November 2008
Subject: Approval of a resolution of intent regarding the reimbursement of certain costs and
expenses incurred in connection with the acquisition, design, construction and equipping of
improvements to the water and sewer systems of the City in an amount of approximately $7,500,000
RECOMMENDATION
City Administration recommends approval of a resolution of intent regarding the reimbursement of
certain costs and expenses incurred in connection with the acquisition, design, construction and
equipping of improvements to the water and sewer systems of the City in an amount of
approximately $7,500,000.
BACKGROUND
This resolution is to allow the Engineering costs associated with several capital projects, to include
but not limited to the following projects: (1) water and sewer relocations and concurrent
construction of a 36" water transmission main associated with the AHTD Highway 265 Widening
from Mission to Joyce Boulevard; (2) water and sewer relocations associated with the AHTD
Highway 16 Widening from College Avenue to Stonebridge Road; and water and sewer relocations
and or replacements associated with other street improvement projects.
DISCUSSION
The requirement for this revenue bond issue and the intent to fund these projects via the issue was
identified in the Water and Sewer Rate Study completed by HDR/EES Inc., as adopted by the City
Council in early 2008. Bond funds cannot be used to cover the AHTD share of the costs for these
projects
The revenue bond resolution shall come forward in early 2009 as the construction date approaches
for these projects This resolution is required in order to allow the engineering expenses that are
accrued related to these projects to be reimbursed by the proceeds of the revenue bond issue
A sample resolution provided by our utak Rock, LLP, our bond counsel, is attached. The only
recommended change is to add "and sewer" everywhere it states "water". This modification was
approved by Kutak Rock. "Vg NC it4for
BUDGET IMPACT
There is no direct cost of this resolution, which allows the projects identified herein to be funded by
a water and sewer revenue bond to be issued in 2009.
Hwy 265 361n Revalue Bond CCMemo 25Nov08
_ _gym cif 11L _ _
RESOLUTION NO.
A RESOLUTION OF INTENT REGARDING THE REIMBURSEMENT OF
CERTAIN COSTS AND EXPENSES INCURRED IN CONNECTION WITH
THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF
IMPROVEMENTS TO THE WATER & SEWER SYSTEMS OF THE CITY
WHEREAS, the City of Fayetteville, Arkansas (the "City") desires to obtain financing
for the acquisition, construction and equipping of certain improvements to the City's water &
sewer systems (the "Project"); and
WHEREAS, the total costs of the Project, including expenses associated with the
financing thereof, are presently estimated to be approximately $7,500,000.00; and
WHEREAS, the City does not have adequate funds on hand to pay the estimated costs of
the Project and related expenses; and
WHEREAS, the City proposes to obtain the necessary funds to accomplish the Project
through tax-exempt revenue bonds to be issued by the City ("City Bonds"); and
WHEREAS, the total principal amount of City Bonds allocated to the Project and related
expenses are not expected to exceed $7,500,000.00; and
WHEREAS, the purpose of this Resolution is for the City to declare its "official intent"
to reimburse itself for certain preliminary costs (incurred by or on behalf of the City and related
to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S. Department of Treasury
promulgated pursuant to the provisions of the Internal Revenue Code of 1986, as amended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the adoption of this Resolution is intended as the City's "official intent"
to reimburse itself from the proceeds of City Bonds for preliminary costs of the Project and
related expenses advanced by the City.
PASSED and APPROVED this 16`h day of December, 2008.
APPROVED: ATTEST:
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
•
Clarice Pearman - Res. 233-08
From:
To:
Date:
Subject:
CC:
Attachments:
Clarice Pearman
Jurgens, David
12.19.08 5:24 PM
Res. 233-08
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Page 1 of 1
David:
Attached is a copy of the above resolution passed by City Council. Please let me know if there is anything else needed for this
item. Have a good day.
Thanks.
Clarice
file://C:\Documents%20and%20Settings\cpearman.000\Local%20Settings\Temp\XPgrpwise\494BD8EA... 12.19.08