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HomeMy WebLinkAbout09770RESOLUTION NO. 9770 A RESOLUTION OF THE CITY OF PUEBLO, COLORADO, ACTING BY AND THROUGH ITS WASTEWATER ENTERPRISE, DECLARING AN OFFICIAL INTENT TO REIMBURSE THE CITY AND THE WASTEWATER ENTERPRISE FROM THE PROCEEDS OF A FUTURE BORROWING FOR CAPITAL EXPENDITURES AND PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Pueblo, Colorado (the "City") is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado (the "State ") and the home rule charter of the City (the "Charter"); and WHEREAS, the City owns and operates a municipal wastewater system which the City has designated as an enterprise (the "Sewer Enterprise "); and WHEREAS, the Sewer Enterprise is a government owned business which has the power to issue revenue bonds and which does not receive more than 10% of its annual revenues in the form of grants from the State or local governments; and WHEREAS, the City Council of the City (the "City Council ") is the governing body of the City and also of the Enterprise; and WHEREAS, the City, through its Enterprise, has determined that it is in the best interests of the residents of the City that certain projects be undertaken which will improve the wastewater system operated by the Enterprise, namely the replacement of approximately 6500 linear feet of sewer line (the "Arkansas River Sanitary Sewer Interceptor Replacement Project") and a renovation of the sewage treatment plant (the "Headworks Project "), both to be located within the City and operated by the Enterprise; and WHEREAS, since November 28, 2002, the City, through its Enterprise, has expended approximately $445,223 on the Headworks Project, and prior to that date had expended approximately $314,879 for architectural, engineering and design services for the Headworks Project (the "Preliminary Expenditures "), and the City, through its Enterprise, reasonably expects to expend its funds for other capital expenditures related to the Headworks Project in the future; and WHEREAS, the City, through its Enterprise, reasonably expects to expend funds in the future for capital expenditures related to the Arkansas River Sanitary Sewer Interceptor Replacement Project; and WHEREAS, the City, through its Enterprise, currently intends and reasonably expects to participate in borrowings to finance the Headworks Project and the Arkansas River Sanitary Sewer Interceptor Replacement Project, including an amount not to exceed $2,580,436 for reimbursing the City, though its Enterprise, for capital expenditures made for the Headworks Project prior to the date when funds are available from such borrowing and an amount not to exceed $6,000,000 for reimbursing the City, through its Enterprise, for capital expenditures made for the Arkansas River Sanitary Sewer Interceptor Replacement Project prior to the date when funds are available from such borrowing; and WHEREAS, the borrowing for each of the project by the City, through its Enterprise, shall occur within 18 months of either the date that the City, through its Enterprise, first expended funds for the particular project or the date that the project is placed in service, whichever is later (but in no event more than three years after the date of the original expenditure of funds for the particular project); and WHEREAS, the City Council hereby desires to declare its official intent, pursuant to 26 C.F.R. § 1.150 -2, to reimburse the City, through its Enterprise, for expenditure of City and Enterprise funds for the Headworks Project and the Arkansas River Sanitary Sewer Interceptor Replacement Project from the proceeds of future, separate borrowings of the City, through its Enterprise; BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. All of the capital expenditures covered by this Resolution were made not earlier than 60 days prior to the date of this Resolution. SECTION 2. The City of Pueblo declares the following intent: (a) The City, through its Enterprise, presently intends and reasonably expects to participate in a borrowing within 18 months of either the date of the first expenditure of funds by the City, through its Enterprise, for the Headworks Project or the date that the Headworks Project is placed in service, whichever is later (but in no event more than three years after the date of the original expenditure of City/Enterprise funds for the Headworks Project), and to allocate an amount not to exceed $2,580,436 of the proceeds thereof to reimburse the City, through its Enterprise, for its expenditures in connection with the Headworks Project. (b) The City, through its Enterprise, presently intends and reasonably expects to participate in a borrowing within 18 months of either the date of the first expenditure of funds by the City, through its Enterprise, for the Arkansas River Sanitary Sewer Interceptor Replacement Project or the date that the Arkansas River Sanitary Sewer Interceptor Replacement Project is placed in service, whichever is later (but in no event more than three years after the date of the original expenditure of City/Enterprise funds for the Arkansas River Sanitary Sewer Interceptor Replacement Project), and to allocate an amount not to exceed $6,000,000 of the proceeds thereof to reimburse the City, through its Enterprise, for its expenditures in connection with the Arkansas River Sanitary Sewer Interceptor Replacement Project. SECTION 3 This is the first resolution of the City declaring its intent to reimburse itself for either the Headworks Project or the Arkansas River Sanitary Sewer Interceptor Replacement Project from proceeds of a borrowing. SECTION 4. All prior actions of the officials and agents of the City and the Enterprise that are in conformity with the purpose and intent of this Resolution and in furtherance of either of the Projects shall be and the same hereby are in all respects ratified, approved and confirmed. SECTION 5. This Resolution shall take effect immediately upon its adoption. INTRODUCED January 27, 2003 BY Al Gurule Councilperson APPROVED: President of City Council ATTEST: 9&- W- M