1972-06 (Assurance to Farmer's Home of funds)A RESOLUTION OF ASSURANCE TO UNITED STATES
DEPARTMENT OF AGRICULTURE, FARMERS HOME
ADMINISTRATION, THAT THE CITY OF OKEECHOBEE,
FLORIDA, HAS SUFFICIENT FUNDS IN RESERVE TO
PAY FOR ALL COSTS OF THE ACQUISITION, CONSTRUCTIOiN
AND ERECTION OF EXTENSIONS AND IMPROVEMENTS TO THE
WATER DISTRIBUTION FACILITIES OF THE CITY'S WATER
AND SEWER SYSTEM CURRENTLY UNDERTAKEN, WHICH SHOULD
EXCEED THE AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS
IN LOAN FUNDS FROM F. H. A.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE,
Florida, as follows:
SECTION 1. The City of Okeechobee, Florida (hereinafter called
the "City") has heretofore by Ordinance No. 356, duly adopted on
February 22, 1972, authorized the acquistion, construction and erection
of extensions and improvements to the water distribution facilities of
the City's water and sewer system and the issuance by the City of not
exceeding $400,000 Water and Sewer Revenue Bonds of the City, through
which bonds the City of Okeechobee is borrowing the amount of $400,000
from the United States Department of agriculture, Farmers Home Adminis-
tration.
SECTION 2. With the authorization of Farmers Home Administration
the City proceeded to undertake its program of improvements prior to
loan closing, through the interim use of available City funds. There-
after, the City of Okeechobee arranged with the Okeechobee County Bank,
with the approval of the Farmers Home Administration, an interim
financing loan in the total amount of $400,000. This interim financing
was closed on June 29, 1972.
SECTION 3. One June 29, 1972, the City of Okeechobee withdrew
from said loan funds the amount of $161,949.32, representing funds
advanced by the City to that date, and transferred said funds to its
Cigarette Tax Fund. As part of the same transaction the City of Okee-
chobee invested $300,000 of said loan proceeds, into $100,000 dominations
time certificates of deposit designated as water and sewer system
construction funds. The balance of $38,050.68 was not withdrawn but was
left in Account Number 001-095-2 designated as Water and Sewer System
Construction Fund, to meet current needs. The balance of funds on that
date was sufficient to carry through Phase 1 financing to its con-
clusion.
SECTION 4. On the same date of June 29, 1972, the amount of
$161,949.32 transferred from the Water and Sewer Construction Fund
to the Cigarette Tax Fund was combined with other Cigarette Tax
Funds in the amount of $38,050.68, and the total amount was then
invested in two time certificates of deposit in the amount of $100,000
each designated as Cigarette Tax Fund.
SECTION 5. The lowest base bid on Phase 2, which was received
from Big Four Construction in the amount of $333,960.20 considerably
exceeded preliminary cost estimates. The City's engineers evaluated
the bids received on May 9, and by letter dated May 23 recommended that
the low base bid plus additive alternate number one be accepted as a
minimum. The engineers further recommended that the possibility of
awarding a contract including all of the alternates be considered. There-
after the City Council determined on June 13, 1972, that with the approval
of Farmers Home Administration the base bid of Big Four Construction plus
additive alternates 1, 2, and 3, for the total construction cost of Phase
2 of $407,010.20 be accepted as being in the best interest of the city.
SECTION 6. The City of Okeechobee by this Council sets forth the
following figures as being the closest estimate of total cost of the
project, including Phases 1 and 2, as is possible at this time:
Phase 1 $167,587.65
Phase 2 $407,010.20
Engineering $ 37,585.16
Legal $ 2,850.14
Total $615,033.15
It is further anticipated that there will be additional engineering fees,
and the possibility of change orders and contingency fees. The City
Council further recognizes that the amount above -he loan proceeds, being
the present approximate amount of $215,033.15 must be furnished by the
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City of Okeechobee out of funds on hand.
SECTION 7. By this Resolution, the City Council of the City
of Okeechobee, Florida, assures unto United States Department of
Agriculture, Farmers Home Administration, that the City of Okeechobee
has funds available and will reserve said funds to pay for all costs
of the improvements completed by this program in excess of the $400,000
loan funds.
SECTION 8. This Resolution shall take effect immediately upon
its passage.
DONE, RESOLVED and made effective the 8th day of August, 1972,
at a regular adjourned meeting of the City Council, City of Okeechobee,
Florida.
ATTEST:
City Clerk
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President
City Council
City of Okeechobee, Florida
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CERTIFICATE OF CLERK
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STATE,, OF FLORIDA )
if CITY OF OKEECHOBEE )
ss.
I, LORENA SPIVEY, City Clerk of the City of Okeechobee,
Florida, do hereby certify that the attached Resolution,being:
A RESOLUTION OF ASSURANCE TO UNITED STATES DEPARTMENT
OF AGRICULTURE, FARMERS HOME ADMINISTRATION, THAT THE
CITY OF OKEECHOBEE, FLORIDA, HAS SUFFICIENT FUNDS IN
RESERVE TO PAY FOR ALL COSTS OF THE ACQUISITION, CON-
STRUCTION AND ERECTION OF EXTENSIONS AND IMPROVEMENTS
TO THE WATER DISTRIBUTION FACILITIES OF THE CITY'S
WATER AND SEWER SYSTEM CURRENTLY UNDERTAKEN, WHICH
SHOULD EXCEED THE AMOUNT OF FOUR HUNDRED THOUSAND
DOLLARS IN LOAN FUNDS FROM F. H. A.
was duly passed and adopted by the City Council of the City of
Okeechobee, Florida, at a regular adjourned meeting of said
City Council on the 8th day of August, 1972, by the following
vote:
AYES: Councilmen:
NOES: Councilmen:
ABSENT: Councilmen:
Charles L. Breland
Russell V. Domer
Edward W. Douglas
E. H. Hunt
Donald L. Burk
none
none
I do further certify as the City Clerk of the City of
Okeechobee, County of Okeechobee, Florida,that the attached copy
of the above titled Resolution is a true and correct copy of
such Resolution as the same appears of record in this office.
IN WITNESS WHEREOF I have hereunto affixed my signature
as City Clerk of the City of Okeechobee, Florida, together with
the Seal of the City of Okeechobee impressed hereupon, all this
2-_9 4 day of August, 1972.
LO ENA SPIVEY
CITY CLERK
CITY OF OKEECHOBEE, FLORIDA