2010-R-09RESOLUTION NO. 2010-R-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EDGEWATER, FLORIDA AUTHORIZING A LINE OF
CREDIT FOR THE FINANCING OF VARIOUS CAPITAL
IMPROVEMENT PROJECTS IN AN AMOUNT NOT TO
EXCEED $750,000; ACCEPTING THE PROPOSAL OF
WELLS FARGO BANK, N.A.; AUTHORIZING THE CITY
TO ENTER INTO A LOAN AGREEMENT AND TO ISSUE
ITS CAPITAL IMPROVEMENT NOTE, SERIES 2010;
PROVIDING FOR REPAYMENT FROM NON -AD
VALOREM FUNDS OF THE CITY AND PROCEEDS OF
ANY GRANTS RECEIVED FOR SUCH CAPITAL
IMPROVEMENT PROJECTS; PROVIDING FOR
CONFLICTING PROVISIONS, AN EFFECTIVE DATE
AND ADOPTION.
NOW, THEREFORE, BE IT RESOLVED by the People of the City of
Edgewater, Florida:
Section 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is enacted
pursuant to the provisions of Chapter 166, Florida Statutes, and other applicable provisions of
law.
Section 2. FINDINGS. It is hereby ascertained, determined and declared that:
A. The City has received from Wells Fargo Bank, N.A. a proposal (the "Proposal")
to provide the City with a line of credit (the "Loan") for the purpose of financing various capital
improvement projects (collectively, the "Project"). A copy of such proposal is attached hereto as
Exhibit A.
B. It is hereby determined to be in the best financial interest of the City to accept the
Proposal.
C. The City has determined that due to the size and nature of the financing and the
time constraints and other uncertainties inherent in the competitive bidding process, that similar
loans in the municipal bond market are usually negotiated, it in the best financial interest of the
City that the Loan be awarded by a negotiated sale pursuant to the attached Proposal.
D. The City does not expect to issue more than thirty million dollars in tax-exempt
obligations during the calendar year ending December 31, 2010.
E. It is necessary and desirable to provide for the execution and delivery of a Loan
Agreement and the issuance of a Note of the City to implement the Loan. Amounts due under
the Loan Agreement and the Note shall be payable from non -ad valorem revenues of the City
and to be secured by the City's covenant to budget and appropriate from legally available non -ad
2010-R-09
valorem funds each year monies sufficient to pay the principal and interest thereon, and shall be
additionally payable from and secured by a pledge of the net proceeds of any grants received by
the City for the capital improvement projects financed ("Grant Proceeds").
Section 3. AUTHORIZING OF NOTE. The issuance by the City of not exceeding
$750,000 Capital Improvement Note, Series 2010 (the "Note") of the City, for the purpose
above; to be dated, to bear interest at a rate or rates not exceeding the maximum legal rate per
annum, to be payable, to mature, to be subject to redemption and to have such other
characteristics as shall be provided in the form of the loan agreement attached and in the
Proposal; and to be secured by a covenant of the City to budget and appropriate from legally
available non -ad valorem funds each year monies sufficient to pay the principal and interest on
such Note, and to be additionally secured by a pledge of the Grant Proceeds, is hereby
authorized.
Section 4. ACCEPTANCE OF PROPOSAL. The Mayor is hereby authorized to
execute the attached Proposal with Wells Fargo Bank, N.A.
Section 5. APPROVAL OF FORM OF LOAN AGREEMENT AND NOTE. The
form of the Loan Agreement and the Note attached thereto as an exhibit are hereby approved and
the Mayor and City Clerk are hereby authorized to execute and deliver such instruments and to
take such other actions as shall be necessary to implement the Loan.
Section 6. All resolutions or parts of resolutions in conflict herewith are hereby repealed.
Section 7. This resolution shall take effect upon adoption.
After Motion to approve by i with Second by *jhe vote on
this resolution held on April 19, 2010, was as follows:
AYE NAY
Mayor Mike Thomas
Councilwoman Debra J. Rogers _ �C
Councilwoman Gigi Bennington
Councilwoman Harriet B. Rhodes Uyt-tea
Councilman Ted Cooper
2010-R-09
n
•❑
PASSED AND DULY ADOPTED this 19th day of April, 2010.
ATTEST:
ro_ I )n(k'111
Bonnie. Wenzel
<.Q
Pr t
For the use and reliance only by the City of
Edgewater, Florida. Approved as to form and
legality by: Carolyn S. Ansay, Esquire
City Attorney
Doran, Sims,Wolfe, Ansay,
Kundid & Birch
Exhibits: A — Proposal
B — Form of Loan Agreement (with
form of Note attached)
CITY COUNCIL OF THE
CITY OF EDG TER, FLORIDA
B Vt'L
Pike Thmas
Mayor
Robin L. Matusick
Paralegal
Approved by the City Council of the City of
Edgewater at a meeting held on this 19th day
of April, 2010 under Agenda Item No. 8 i .
2010-R-09