83-09 v RESOLUTION NO. 83-9
A RESOLUTION APPROVING APPLICATION TO
THE STATE OF FLORIDA FOR A LOCAL GOVERN-
MENTAL AGENCY LOAN
WHEREAS, the City of Atlantic Beach, a political subdivision of the
State of Florida, hereafter sometimes referred to as the Local Agency,
wishes to make application to the State of Florida, Department of General
Services, Division of Bond Finance, and the Department of Environmental
Regulation for a local governmental agency loan from the State of Florida
under the provisions of Section 14, Article VII, of the Constitution of
Florida and Section 403.1834, Florida Statutes (the enabling legislation),
for the purpose of providing funds for the acquisition and construction by
the Local Agency of certain eligible water supply and distribution facilities,
and air and water pollution control and abatement and solid waste disposal
facilities (hereafter sometimes referred to as the "project") ; and
WHEREAS, neither the Local Agency nor the State of Florida or its
agencies has sufficient funds to finance the construction of the project except
in the manner contemplated by this resolution; and
WHEREAS, this resolution is adopted for the purpose of making application
to the Division of Bond Finance and the Department of Environmental Regulation
for the purpose of obtaining such a loan,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
ATLANTIC BEACH, DUVAL COUNTY, FLORIDA, as follows:
Section 1. The Division of Bond Finance is requested to issue and
sell state bonds pursuant to the provisions of Section 14, Article VII, of the
Florida Constitution and Section 403.1834, Florida Statutes, for the purpose of,
among other things, furnishing funds to the Local Agency for a local governmental
agency loan to provide part of the cost of constructing the project. Such bonds
shall be payable both as to principal and interest from the pledged revenues
as hereafter specifically described and identified in Section 16. The Division
of Bond Finance and the Department of Environmental Regulation shall have
authority to determine the amount of bonds to be issued and the date, terms,
maturities and rates of interest thereon and other features of a fiscal or tech-
nical nature necessary to the issuance of the bonds.
Section 2. The amount of the local governmental agency loan requested
by the Local Agency is $2,350,000. The total estimated cost of the project to
be constructed by the Local Agency is $2,303,000. The Local Agency agrees that
the amount of the local governmental agency loan may be increased by an amount
sufficient to provide from proceeds of the State bond issue the Local Agency's
share of a bond reserve fund if such is deemed necessary by the Division of Bond
Finance, for interest becoming due during construction of the project, for the
Local Agency's proportionate share of the costs of the bond issue and for such
other necessary costs, if any, as the State or its agencies may deem necessary
in connection with the issuance of the bonds.
Section 3. This Local Agency has the legal authority to execute a loan
agreement with the State as contemplated by this resolution and to construct and
operate the project.
Section 4. The Local Agency will comply with all applicable regula-
tions, rules and guidelines of the Division of Bond Finance, the Department
of Environmental Regulation, the State Board of Administration and such
other state agencies, if any, which are concerned with the pollution bond
program of the State and the Local Agency will furnish all information required
by the regulations and rules of the State agencies.
Section 5. The Local Agency has available and will pledge revenues to
meet the requirements of the Constitution and enabling legislation.
Section 6. The Local Agency will apply and use any funds received in
connection with the project either from the State of Florida, its agencies
or the United States of America for the purpose for which they are furnished
and will render such accountings of such funds as may be required by the State
of Florida or the United States.
Section 7. Adequate engineering studies for the project relating to
construction and feasibility have been made and such studies indicate that the
project can be constructed and completed from grants to be received from the
United States and the proceeds to be received from the local governmental agency
loan.
Section 8. This Local Agency agrees that it will at all times maintain
rates and charges for the project or its use sufficient together with the
other pledged revenues described in Section 16 hereof to provide pledged revenues
as defined in the Constitution and enabling legislation equal to at least 1-1/3
times the annual debt service requirements each year for the Local Agency's
share of the state bond issue and will submit annual financial reports sub-
stantiating such to the appropriate state agency or agencies. If the pledged
revenues are not sufficient to pay the Local Agency's loan payments to the
state agencies when due, the Local Agency will pay any deficiency in its annual
loan payment described in the loan agreement from any legally available funds
accruing to or in the possession of this Local Agency.
Section 9. The Local Agency agrees that the appropriate state agency
will hold the construction funds received from the proceeds of the state bond
issue and that payments to the Local Agency for construction of the project will
be disbursed by the appropriate state agency in accordance with procedures pres-
cribed by the Department of Environmental Regulation.
Section 10. The Local Agency agrees that in addition to payments to be
made for debt service on the local governmental agency loan it will periodi-
cally at the time and in the manner prescribed by the state agencies pay its
proportionate share of the cost of administering the loan program authorized
by the Constitution and the enabling legislation.
Section 11. The Local Agency agrees that in the event the funds re-
ceived from the United States and from the local governmental agency loan are
not suffucient to complete the project that it will enter into an additional
loan agreement to complete the project if the Local Agency can at that time
demonstrate its ability to meet the debt service requirements of the original
loan agreement and the additional loan agreement. If the Local Agency is unable
to meet such debt service requirements it agrees that it will complete the
project from other funds available to the Local Agency including the obtaining of
loans from other sources or the issuance of debt obligations by the Local Agency
for the purpose of completing the project.
Section 12. The Local Agency agrees to adopt such further resolutions
in such legal form as may be required to carry into effect the purposes and
intent of this resolution and to furnish such additional information, engineer-
ing studies, feasibility studies and reports as may be required by the State
or its agencies. It is understood that any minor deviations, changes or
additions to the proposals outlined in this resolution which, in the judgement
of the Division of Bond Finance, the Department of Environmental Regulation
and the Local Agency, may be necessary to carry out the general purposes and
intent of this resolution substantially in accordance herewith shall not require
additional resolutions or approval on the part of this Board.
Section 13. Pursuant to Section 215.65, Florida Statutes, the fees
charged to and all expenses paid for and on behalf of such bonds shall be paid
and reimbursed to the bond fee trust fund of the Division of Bond Finance from
the proceeds of the sale of the bonds if such bonds are sold, or from funds
legally available to the Local Agency for such purpose if for any reason the
bonds are not sold.
Section 14. That the following officer of the Local Agency, namely:
A. William Moss, City Manager, be and he is hereby authorized and directed to
execute a local agency loan agreement between the Division of Bond Finance, the
Department of Environmental Regulation and the Local Agency.
Section 15. The Local Agency agrees that it will furnish a legal opinion
of its counsel opinioning that the pledged revenues hereinafter identified are
legally available for pledging. In the event that any of the pledged revenues
are encumbered by the lien of any prior outstanding bonds, it will furnish to
the state agency at the time its application is submitted, four (4) legible
copies of all such prior bond resolutions or ordinances accompanied by an
opinion of bond counsel for each such issue of bonds that the excess of such
prior encumbered revenues are legally available for pledging to the state agencies.
Section 16. The revenues to be pledged by the Local Agency to the repay-
ment of its loan have not been previously pledged or encumbered except as
specifically set forth in this Section 16. The pledged revenues for repayment
of the loan and each separate source of revenue is specifically identified and
described as follows:
1. Net wastewater revenues.
2. Earnings on investments received from the
investment of the bond interest and sink-
ing fund, including the debt service reserve
account.
Section 17. This resolution shall take effect immediately.
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Passed by the City Commission on July 25, 1983 •
ATTEST:
(SEAL) Adelaide R. Tucker, City Clerk