Title
Resolution Approval of Series Ordinance Authorizing Issuance and Sale of Sewage Disposal System Revenue Bonds in an Amount not to Exceed $45,000,000 (Ordinance 2018-01)
Body
Agenda of: June 20, 2018
Item No.: 2018-812
Amount: $45,000,000
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 20, 2018
RE: Resolution Approval of Series Ordinance Authorizing Issuance and Sale of Sewage Disposal System Revenue Bonds in an Amount not to Exceed $45,000,000 (Ordinance 2018-01)
MOTION
Upon recommendation of Sue F. McCormick, Chief Executive Officer, The Board of Directors (Board) of the Great Lakes Water Authority (GLWA), that the 2018 SRF Series Ordinance, in the form presented to this meeting, is approved and adopted, and the Chairperson and the Secretary are authorized to authenticate the 2018 SRF Series Ordinance in the form approved; and that an affirmative vote of at least 5 members of the Authority Board is necessary for the passage of this Resolution.
BACKGROUND
On March 8, 2017, the Great Lakes Water Authority (“GLWA”) Board of Directors approved Resolution 2017-185, “Resolution of the Great Lakes Water Authority Authorizing Publication of Notice of Intent to Issue Sewage Disposal System Revenue Bonds in a principal amount not to exceed $275,000,000” (the “Notice of Intent”). This is the second series of sewer bonds from that Notice of Intent in the amount not to exceed $45,000,000. The first series was issued on June 13, 2017 for the Rouge River Outfall disinfection project in the amount of $38,450,000 through the State Revolving Fund (SRF).
The projects to be funded are two SRF Projects for the GLWA regional system, which will close in September 2018. The projects are the Detroit River Interceptor (DRI) project which is anticipated to be about $29 million and the Central Offload Facility project at the WRRF which is anticipated to be about $16 million.
The Series Ordinance presented today is the next formal step required by the GLWA Board of Directors in the bond issuance process which authorizes the issuance of the Bonds by GLWA, sets forth the guidelines for the SRF Bonds, designates the Bonds as 2018 SRF Junior Lien Bonds, and authorizes the Chief Executive Officer of the Chief Financial Officer to execute the final terms of the Bonds, paying issuance costs and signing of the Purchase Contract and Sale Order within the parameters set forth in the Series Ordinance. A copy of the Series Ordinance and draft resolution are included with this memo.
BUDGET IMPACT
Debt service is anticipated to begin in FY 2020 for these projects and will be included as part of the FY 2020 financial plan.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on June 15, 2018. The Audit Committee unanimously recommended that the GLWA Board adopt the Resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.