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Home My WebLink AboutRES 10-179 A.7 RESOLUTION NO. 10-179 RESOLUTION CONCERNING ISSUANCE OF THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 2010A AND THE CITY OF BEAUMONT, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, TAXABLE SERIES 2010B (BUILD AMERICA BONDS — DIRECT PAYMENT TO ISSUER), AND OFFICIAL INTENT TO USE PROCEEDS THEREFROM TO REIMBURSE THE CITY FOR ORIGINAL EXPENDITURES PAID PRIOR TO THE ISSUE DATE OF SUCH BONDS ON PROJECTS TO BE FINANCED THEREBY WHEREAS, the City of Beaumont, Texas (the "City") desires and intends to acquire, expand, renovate, construct, reconstruct, equip, and improve in the Waterworks and Sewer System located within the City described in Exhibit A attached hereto (collectively, the "Project"); and WHEREAS, in order to finance and pay the costs of the Project, the City intends to issue Waterworks and Sewer System Revenue Bonds, Series 2010A and City of Beaumont, Texas Waterworks and Sewer System Revenue Bonds, Taxable Series 2010B (Build America Bonds — Direct Payment to Issuer), in the maximum aggregate principal amount of up to $27,000,000 (the "Obligations"), payable from Waterworks and Sewer System revenues and other sources pledged to the payment thereof; and WHEREAS, the City reasonably expects to pay a portion of the capital expenditures for the Project prior to the issue date of the Obligations from other available sources ("Original Expenditures") WHEREAS, the City finds, intends and declares that this resolution and order shall constitute its official binding commitment and official declaration of intent made pursuant to the Internal Revenue Code of 1986, as amended (the "Code") and the regulations pertaining thereto, including but not limited to Treasury Regulation Section 1.150-2, whereas, subject to the terms hereof, the City declares that it intends to reimburse itself out of the proceeds of the Obligations for some of the Original Expenditures in connection with the Project paid prior to the issuance of the Obligations; and WHEREAS, the City Council, on behalf of the City, finds, considers and declares that the issuance and sale of the Obligations in the amount and for the purposes set forth will be appropriate and consistent with the objectives of the City and the laws authorizing the issuance of the Obligations, and that the adoption of this resolution and order is and constitutes and is intended as (1) an inducement to proceed with providing for the acquisition, expansion, renovation, construction, reconstruction, equipping and improvement of the Project, and (2) the taking of affirmative official action by the City, acting by and through the City Council, toward the issuance of the Obligations and the reimbursement to the City out of the proceeds of the Obligations for Original Expenditures paid in connection with the Project prior to the issuance of the Obligations, all within the meaning of federal income tax laws and regulations with respect to issuance of tax-exempt obligations; and -1- A.7 WHEREAS, the City has given notice of the meeting at which this Resolution is to be adopted as required by the Texas Open Meetings Law, Chapter 551 of the Texas Government Code Annotated Vernon's 1994, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS, THAT: Section 1. Subject to the terms hereof, the City Council adopts this resolution on behalf of the City of its official intent to a. Issue the Obligations after the date hereof to provide for the financing of the Project, in the maximum aggregate principal amount up to $27,000,000, if the City Council determines that the terms of such financing are in the City's best interest; b. Take such action and authorize the execution of such documents as may be necessary in connection with the issuance of the Obligations, providing, among other things, for payment of the principal of, interest on, paying agents' charges and other fees, if any, on the Obligations, and the acquisition, expansion, renovation, construction, reconstruction, equipping and improvement, of the Project, all as shall be authorized, required or permitted by law and shall be satisfactory to the City; C. Pay such Original Expenditures on the Projects as are necessary to be incurred and paid prior to the issue date of the Obligations; d. Pay such Original Expenditures out of one or more of the following funds or accounts: Waterworks and Sewer System Fund e. Reimburse the City out of proceeds of the Obligations, when issued, for Original Expenditures paid not more than sixty (60) days prior to the date of adoption of this resolution of official intent; f. Take or cause to be taken such other actions as may be required to implement the aforesaid undertakings or as the City may deem appropriate in pursuance thereof. Section 2. The City Manager and Chief Financial Officer are authorized to make reimbursement allocations from the proceeds of the Obligations in writing that evidences the use of such proceeds to reimburse the Original Expenditures paid not more than sixty (60) days prior to the date of adoption of this resolution of Official Intent and to do so in compliance with the requirements of Treasury Regulation Section 1.150-2. Section 3. This resolution shall constitute the official declaration of Official Intent by the City pursuant to which the City declares that it intends to reimburse itself out of the proceeds of the Obligations for Original Expenditures as provided herein, and is made pursuant to Treasury Regulation Section 1.150-2 and generally with the laws and regulations of the federal income tax -2- A.7 laws governing the issuance of tax-exempt obligations. Section 4. This resolution and order and the declaration of official intent herein shall be available for public inspection at all times at the City's business office and shall remain available for public inspection until the Obligations are issued and thereafter this resolution shall be maintained as part of the permanent records of the City Council of the City. [The remainder of this page is intentionally left blank] -3- A.7 PASSED AND APPROVED this 13`" day of July, 2010. THE CITY OF BEAUMONT, TEXAS By: &e/oW691� MAYOR ATTEST: �l CITY CLERK THE CITY OF BEAUMONT, TEXAS ,a -4- A.7 EXHIBIT "A" Design or Construction Phase Estimated Cost Master Plan for Water& Sewer System $ 400,000 Water Department Security System 250,000 Water Projects: 36"Transmission Line 8,800,000 Ammonia Addition to Loeb Well 550,000 Automatic Flushing Devices 100,000 Lawson's Pump Station 700,000 Loeb Tank Rehabilitation 230,000 Water Bottling Plant 1,500,000 Water Line and Fire Hydrant Installation/Replacement 3,000,000 Water Rights Study 200,000 Water Treatment Plant Improvements—Phase II 8,750,000 Sewer Projects: 54" Central Trunk Rehabilitation 6,000,000 60" Trunk Line Rehabilitation 5,000,000 72" and 36"Trunk Lines Rehabilitation 6,000,000 Degritter—Wastewater Treatment Plant 8,000,000 Dredge Ponds 1 and 2 at Wastewater Treatment Plant 800,000 East Lucas Relief Project 2,200,000 Florida Avenue &Fannett Road Interceptors 3,000,000 Frint Lift Station 1,200,000 Grit Pump Replacement—Wastewater Treatment Plant 1,150,000 Lift Station Repairs 1,200,000 Sanitary Sewer Rehabilitation—Small Mains (Pipe Bursting) 6,000,000 Twenty-Third Street Lift Station 1,500,000 Wastewater Treatment Plant Aerobic Digesters 350,000 Wastewater Treatment Plant Bar Screens 1,300,000 Wastewater Treatment Plant Clarifiers Rehabilitation 3,800,000 Wastewater Treatment Plant Generators 2,200,000 Wastewater Treatment Plant Holding Pond 2,700,000 Wastewater Treatment Plant Master Plan 600,000 Wastewater Treatment Plant Piping Rehabilitation 1,200,000 Wetlands Design &Rehabilitation 10,250,000 -5- A.7 Design or Construction Phase(continued) Estimated Cost Water/Sewer for Street Projects: Avenue A—Washington to US 69S $ 780,000 Belvedere—Regina to Dead End 380,000 Calder—Main to Phelan 2,496,000 College Street—IH-10 to Goliad 1,008,000 Concord Road—Phase IV—East Lucas to Hwy 105 1,368,000 Delaware—Concord to Dowlen 3,276,000 Dowlen—College to Walden 1,872,000 Dowlen—IS 69N to Delaware 1,092,000 Downtown Improvements: Park—Century Tower 50,000 Willow—North to Laurel 50,000 Pearl, Park, Neches, Liberty &College 150,000 East Lucas—US 69N to Pine 2,304,000 Eleventh Street—Washington to US 69N 528,000 Fannett Road 240,000 Fannin—Fourth to Eleventh 997,000 Gladys Street—IH-10 to Dowlen 1,536,000 Gulf Street-Live Oak to Delaware 624,000 Howell—Regina to Sue 467,000 Laurel—IH-10 to Office Park 588,000 Madison—Irving to Grove 132,000 Magnolia—Bowie to East Lucas 2,928,000 North Street—ML King to Twenty-Third 1,152,000 Old Dowlen—Dowlen to Hwy 105 636,000 Regina—Howell to Thomas 456,000 Seventh Street—IH-10 to Laurel 612,000 Washington—IH-10 to ML King 2,400,000 Washington—Langham to Major 2,076,000 -6-