Loading...
HomeMy WebLinkAboutRes2007-099Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2007-099 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, EXPRESSING OFFICIAL INTENT TO ISSUE BONDS TO FINANCE ELECTRICAL FACILITIES DESCRIBED HEREIN AND DETERMINING RELATED MATTERS WHEREAS, the City of Seward owns two electric generators which were purchased as used equipment and which formerly served as submarine generators during World War II, which have reached the end of their useful lives; and WHEREAS, the City has lobbied to receive funding from the State Railbelt Utility Fund, which was to have been used to replace these generators; and WHEREAS, there is heightened urgency to replace these generators since Hurricane Katrina destroyed the last remaining parts manufacturing plant, making the purchase of replacement parts difficult, if not impossible; and WHEREAS, providing reliable electrical service is crucial to the mission of the City of Seward, as it is necessary to protect life and property of the citizens of the Seward electrical service area, especially during the cold winter months; and WHEREAS, the City intends to replace two generators, construct a facility to house the City's generators, install automated controls for the generators, and construct facilities to house the electrical shop and offices, and install and construct all other items incidental to the project; and WHEREAS, the City expects to finance a portion of the Project costs on a long-term basis with proceeds of bonds (the "Bonds"); and WHEREAS, the City reasonably expects that a portion of the Project costs will be paid by the City prior to the issuance of the Bonds and proceeds of the Bonds will be used to reimburse the City for the Project costs prior to the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OF SEWARD, ALASKA that: Section 1. This Resolution is adopted to satisfy the "official intent" requirements of Section 1.150-2 of the regulations adopted under the authority of the Internal Revenue Code of 1986, as amended, (the "Code") with respect to the Project. For this purpose, Exhibit A includes a general description of the Project and a statement of the maximum principal amount of bonds the City reasonably expects to issue to finance costs of the Project (the "Bonds"). The City intends to use the proceeds of the Bonds to make a loan (or to reimburse the City for making a loan) to finance costs of CITY OF SEWARD, ALASKA RESOLUTION 2007-099 the Project, and certain other costs, which are eligible under the Code for financing with proceeds of tax-exempt bonds (the "Eligible Costs"). This Resolution is adopted on the date set forth below, and the Eligible Costs incurred up to 60 days before that date will be eligible for reimbursement with proceeds of the Bonds. As of the date set forth below, the City reasonably expects that it will issue the Bonds and use the proceeds of the Bonds as described in this section. Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of October, 2007. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: Dunham, Valdatta, Bardarson, Smith, Corbridge NOES: Kellar ABSENT: Amberg ABSTAIN: None ATTEST: J Lewi ty Clerk, C ~ (City Seal) •' ~ -• G~~~ of $Eh,4 ~,~~ .~ ~ SEAL • i ••. F OF A`~' .•• Council Agenda Statement Meeting Date: November 12, 2007 Through: Phillip Oates, City Manager.~/~ From: Kristin Erchinger, Finance Director ~ry'~` Agenda Item: Resolution of Intent to Issue Bonds for Electrical Infrastn..,~~.., BACKGROUND & JUSTIFICATION The City of Seward intends to issue revenue bonds for the purpose of replacing two WW II-era electrical generators which serve to provide backup electrical generating capability in Seward. These two generators are in dire need of repair because they have reached the end of their useful lives, and because the lone parts manufacturing plant was destroyed in Hurricane Katrina. By issuing this resolution of intent, the City of Seward can utilize the proceeds of the bond issue -- assuming the bonds are approved by the Seward City Council under separate resolution - to reimburse the City for costs associated with pursuing the bond issue. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE Bypassing this resolution, the City will not incur any of its own costs, other than the costs of staff time committed to the project, although those costs can also be recovered from the proceeds of the bond issue. This resolution will not actually authorize the issuance of bonds. That will occur under separate Resolution. r ~'~ - Approved by Finance: ., ~~7.Gs~-, RECOMMENDATION City Council authorize the Resolution of Intent to Issue Bonds for the construction and installation of electrical infrastructure.