Item C17
BOAIm OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 17. 2008
Bulk Item: Yes No ~
Division: Engineering
Department: Wastewater
Staff Contact Person: Judy Clarke/295-4329
AGENDA ITEM WORDING:
Rescind approval of Agenda Item L-7 from November 19, 2008 and approval to execute Resolution and
Declaration of Official Intent under U. S. Treasury Regulations with respect to reimbursement from
note and bond proceeds of temporary advances made for payments prior to issuance; and designation of
the County Administrator as the authorized officer for purposes of executing documents related thereto.
ITEM BACKGROUND:
The Florida Department of Environmental Protection (FDEP) anticipates a bond issuance in order to
make available State Resolving Fund (SRF) loan funding. The Resolution and Declaration of Intent are
required in order to comply with United States Treasury Regulations for funding infrastructure projects
with tax: exempt bonds. This item was on the November 19th BOCC agenda without back-up and needs
to be approved again due to that omission.
PREVIOUS RELEVANT DOCC ACTION:
On 1/25/06 the BOCC approved for County staff to apply for funding for wastewater treatment system
construction in accordance with the Monroe County Sanitary Wastewater Master Plan from Florida's
State Revolving Loan Fund. On 11/14/07, the BOCC approved a resolution adopting the Big Coppitt
Regional Wastewater Treatment System and South Lower Keys RegionalWastewater Treatment Plant
State Facilities Plan. On 12/19/07 the BOCC approved a resolution for the execution and delivery of
the loan agreement with the Florida Rural Utility Financing Commission (FRUFC) for an amount not to
exceed $21,000,000, which was to serve as interim financing until funding became available under the
SRF program.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approve
TOTAL COST: $0
BUDGETED: Yes~ No
COST TO COUNTY: $0
SOURCE OF FUNDS: N/ A
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Atty ~ OMB/Purchasing _ Risk Management _
DOCUMENTA nON:
Included X
Not Required_
DISPOSITION:
Revised 2/05
AGENDA ITEM #
RESOLUTION NO.
-2008
A RESOLUTION OF THE BOARD OF COUNTY
COl\1l\fSSIONERS OF MONROE COUNTY,
FLORIDA AUTHORIZING DECLARATIONS OF
OFFICIAL INTENT UNDER U.S. TREASURY
REGULATIONS WITH RESPECT TO
REIMBURSE:MENTS FROM NOTE AND BOND
PROCEEDS OF TEMPORARY ADVANCES MADE
FOR PAY:MENTS PRIOR TO ISSUANCE, AND
RELATED MAITERS.
WHEREAS, United States Treasury Regulations ~1.150-2 (the "Reimbursement
Regulations") prescribe conditions under which proceeds of bonds, notes or other obligations
("Bonds") used to reimburse advances made for capital and certain other expenditures ("Original
Expenditures") paid before the issuance of such Bonds will be deemed to be expended (or properly
allocated to expenditures) for purposes of Sections 103 and 141-150 of the Internal Revenue Code
of 1986, as amended (the "Code"), upon such reimbursement so that the proceeds so used will no
longer be subject to requirements or restrictions under those sections of the Code; and
WHEREAS, certain provisions of the Reimbursement Regulations require that there be
a Declaration of Official Intent not later than 60 days following payment of the Original
Expenditures expected to be reimbursed from proceeds of Bonds, and that the reimbursement occur
within certain prescribed time periods after an Original Expenditure is paid or after the property
resulting from that Original Expenditure is placed in service; and
WHEREAS, Monroe County wishes to take steps to comply with the Reimbursement
Regulations;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA (THE "BORROWER") AS
FOLLOWS:
Section 1.
Definitions. The following definitions apply to the terms used herein:
"Authorized Officer" means the County Administrator or any person designated for the
purpose by the Monroe County Board of County Commissioners (BOCC).
"Declaration of Official Intent" means a declaration of intent, in the form, marmer and
time contemplated in the Reimbursement Regulations, that the advances for expenditures referred to
therein are reasonably expected to be reimbursed from the proceeds of Bonds to be issued after
those expenditures are paid.
"Reimbursement" or "reimburse" means the restoration to the Borrower of money
temporarily advanced from its own funds and spent for Original Expenditures before the issuance of
the Bonds, evidenced in writing by an allocation on the books and records of the Borrower that
shows the use of the proceeds of the Bonds to restore the money advanced for the Original
Nor res SRF back up.doc
Expenditure. "Reimbursement" or "reimburse" generally does not include the refunding or retiring
of Bonds previously issued and sold to, or borrowings from, umelated entities.
Section 2. Authorization and Reouirement of Declarations of Official Intent.
Each Authorized Officer is authorized to prepare and sign Declarations of Official Intent in
substantially the form attached with respect to Original Expenditures to which the Reimbursement
Regulations apply, to be made from money temporarily advanced and that is reasonably expected to
be reimbursed (in accordance with applicable authorizations, policies and practices) from the
proceeds of Bonds, to make appropriate reimbursement and timely allocations from the proceeds of
the Bonds to reimburse such prior expenditures, and to take any other actions as may be appropriate,
all at the times and in the manner required under the Reimbursement Regulations in order for the
reimbursement to be treated as an expenditure of such proceeds for purposes of Sections 103 and
141 to 150 of the Code. No advance from any fund or account or order for payment may be made
for Original Expenditures (other than expenditures excepted from such requirement under the
Reimbursement Regulations) that are to be reimbursed subsequently from proceeds of Bonds unless
a Declaration of Official Intent with respect thereto is made within the time required by the
Reimbursement Regulations.
Enacted this _ day of
MONROE COUNTY.
, 2008 by the Board of County Commissioners of
Mayor
Mayor Pro Tern
Commissioner
Commissioner
Commissioner
Attest: DANNY L. KOLHAGE, CLERK
By.:
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FWRlDA
By:
Deputy Clerk
(Signature)
Title:
(Mayor)
D,,!',
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DECLARATION OF OFmCMLINTENT
For Reimbursement of Expenditures from Bonds/Notes
This is a Declaration of Official Intent under U.S. Treasury Regulations for purposes of Sections
103 and 141 to 150 of the Internal Revenue Code of 1986, as amended (the "Code").
1. The undersignedl on behalf of MONROE COUNTY (the "Borrowerl') declares that the
Borrower reasonably expects that the capital and other expenditures described in
paragraph 2 (the "Project") will be reimbursed with the proceeds of "bonds" (as defined in
Section 150 of the Code). The maximum principal amount of bonds expected to be issued
for the Project is $21,977,000.
2. Description of capital and other expenditures to be reimbursed.
Expenditures for (insert a general functional description of property, project, program
or purpose):
Water Pollution Control Improvements
The undersigned has been authorized by the Borrower to make and sign this Declaration on
behalf of the Borrower.
Date of Declaration:
MONROE COUNTY
, 2008
By
(Roman Gastesi)
( County Administrator)
Dote
Caution:
This Declaration of Official Intent will not be effective unless the bonds providing
moneys for the reimbursement are issued and the reimbursement for the Project
described above is made (by an allocation on the books and records identifying the
expenditures as in paragraph 2 above) within the applicable period prescribed in the
Treasury Regulations - generally, 18 months after the later of the date of the
expenditure or the date the Project is placed in service, but in no event later than three
years after the date of the expenditure.
NO! res SRF back up.doc