EVANS CITY WATER AND SEWER AUTHORITY RESOLUTION NO. 20200624B-W

RESOLUTION OF THE

EVANS CITY WATER AND SEWER AUTHORITY

RESOLUTION NO. 20200624B-W

AUTHORIZING THE ADOPTION OF SUFFICIENT WATER RATES AND PROVIDING FOR THE IMPLEMENTATION THEREOF NO LATER THAN THREE MONTHS BEFORE THE SCHEDULED AMORTIZATION DATE AS DEFINED AT SETTLEMENT ON THE AUTHORITY’S $1,960,000.00 maximum principal amount FUNDING ARRANGEMENT WITH THE PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY (LOAN ME NO. 12766).

WHEREAS, the Evans City Water and Sewer Authority, Butler County (the “Authority”), created and existing under the laws of the Commonwealth of Pennsylvania, has determined that it is necessary and in the best interests of the Authority to undertake a capital project to improve the water system facilities (the “System”) that are managed by the Authority, consisting of the replacement of approximately 4,960 linear feet of waterline, 55 service lines, and eight fire hydrants to address water loss and ensure reliability of the system in the main project area, along with the replacement of approximately 18 inoperable valves and fire hydrants in the existing system.

WHEREAS, in order to finance the cost of the Project, the Authority intends to secure a loan from the Pennsylvania Infrastructure Investment Authority in the maximum principal amount of $1,960,000.00 to be evidenced by a debt obligation (the “Debt Obligation”); and

WHEREAS, the Authority desires to adopt this Resolution to evidence its intent to adopt residential rates for the System that, will produce revenues sufficient to cover all of its operational and maintenance costs and the debt service on the Debt Obligation.  The future estimated monthly rates are shown in the following table:

Estimated Rates
	In Borough	Out of Borough
Customer Charge (per month)	$8.35	$8.35
Per EDU (per month)	$26.69	$35.02
Volume Rate for 0-50,000 gallon usage (per 1,000 gallons)	$8.82	$8.82
Volume Rate for 50,000+ gallon usage (per 1,000 gallons)	$9.39	$9.39

NOW, THEREFORE, BE IT RESOLVED, that the Authority shall institute rates for the System, and provide for the implementation thereof, no later than three months before the earlier of: a) the Scheduled Amortization Date of September 1, 2021 or b) the first day of the first calendar month following the completion of all actions required to complete construction of the Project, as defined under Paragraph D. 1. of the Funding Agreement, at the rates shown in the table above, to produce revenues from the operation of the System sufficient to cover all operational and maintenance costs and the debt service on the Debt Obligation. For purposes hereof, “Scheduled Amortization Date” means the date on which the Authority shall initiate principal and interest payments on the Debt Obligation, September 1, 2021.

DULY ADOPTED, this 24^th day of June, 2020 by the Evans City Water and Sewer Authority, Butler County, in lawful session duly assembled.

ATTEST:

_____________________________                          ________________________________ Secretary                                                                Chairman

           

                       

(SEAL)

RESOLUTION OF EVANS CITY WATER AND SEWER AUTHORITY RESOLUTION NO. ­­­­­­­­­­­­­20200624A-W

RESOLUTION OF EVANS CITY WATER AND SEWER AUTHORITY

RESOLUTION NO. ­­­­­­­­­­­­­20200624A-W

DECLARATION OF OFFICIAL INTENT TO REIMBURSE GENERAL FUNDS USED TO CONSTRUCT IMPROVEMENTS TO ITS DRINKING WATER SYSTEM WITH FUNDS RECEIVED FROM THE PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY

WHEREAS, the Evans City Water and Sewer Authority ("Funding Recipient") has determined that construction of improvements to the drinking water system located in Evans City Borough and Forward Township, Butler County, Pennsylvania (the “Project”), are necessary; and

WHEREAS, in order to finance the costs of the Project, the Funding Recipient has issued or intends to issue its Debt Obligation to the Pennsylvania Infrastructure Investment Authority (“PENNVEST”) in the maximum principal amount of $1,960,000.00 (the “PENNVEST Debt Obligation”).

WHEREAS, Funding Recipient intends to pay Project costs, on an interim basis, using its General Funds until the proceeds of the PENNVEST Debt Obligation are received;

NOW, THEREFORE, the Funding Recipient hereby declares as follows:

Pursuant to federal requirements set forth at 26 C.F.R. § 1.150-2, the Funding Recipient officially intends to reimburse its General Funds for Project costs incurred by the Funding Recipient with the proceeds of the PENNVEST Debt Obligation up to the maximum principal amount of $1,960,000.00. 

ATTEST:

_____________________________                          ________________________________

Secretary                                                                     Ed Tanski, Chairman

                                                                                                                                   

(SEAL)

DATE:________________________

EVANS CITY WATER AND SEWER AUTHORITY - LOAN NUMBER 12766 RESOLUTION TO BORROW RESOLUTION NO. 20200624-W

          EVANS CITY WATER AND SEWER AUTHORITY - LOAN NUMBER 12766

                                                    RESOLUTION TO BORROW

RESOLUTION NO. 20200624-W

AUTHORIZING THE SECURING OF FUNDING FROM THE PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY ("PENNVEST") IN the maximum principal amount of $1,960,000.00 FOR THE PURPOSE OF PROVIDING FUNDS TO FINANCE THE COST OF THE REHABILITATION OF THE drinking water system OF THE FUNDING RECIPIENT, TO PAY COSTS AND EXPENSES OF SECURING SUCH FUNDING; AUTHORIZING THE EXECUTION AND DELIVERY OF A PLEDGE OF THE GROSS REVENUES AND RECEIPTS; APPROVING THE FORM, TERMS AND CONDITIONS OF THE FUNDING DOCUMENTS; AUTHORIZING THE EXECUTION OF THE FUNDING DOCUMENTS AND PROVIDING FOR THE AUTHENTICATION AND DELIVERY THEREOF; AND AUTHORIZING THE DISPOSITION OF THE FUNDING PROCEEDS RECEIVED OR TO BE RECEIVED FROM PENNVEST.

WHEREAS, the Evans City Water and Sewer Authority, created and existing under the laws of the Commonwealth of Pennsylvania, has determined that it is necessary and in its best interests to rehabilitate the drinking water system (the "Project") by replacing certain aging infrastructure with a new water system to reduce line breaks, leaks, and unaccounted for water (the “System”); and

WHEREAS, in order to finance the cost of the Project, the Evans City Water and Sewer Authority intends to secure a loan in the maximum principal amount of $1,960,000.00, from PENNVEST to be evidenced by a debt obligation (the "Debt Obligation"), secured by a pledge of the gross receipts and revenues of the Evans City Water and Sewer Authority (the “Project Collateral”) and other agreements granting and creating security interests, all as more particularly set forth in the funding agreement between the Evans City Water and Sewer Authority and PENNVEST (the "Funding Agreement") and the funding offer from PENNVEST dated April 22, 2020 (the Debt Obligation, Project Collateral, other security agreements, funding offer, the Funding Agreement and all other agreements, documents, certificates and instruments described in or contemplated by the Funding Agreement are collectively referred to as the "Funding Documents"); and

WHEREAS, the Evans City Water and Sewer Authority desires and intends to take all necessary and proper actions and to execute all documents required by PENNVEST to be executed to obtain the PENNVEST Funding and assure its proper repayment.

NOW, THEREFORE, the Evans City Water and Sewer Authority hereby resolves as follows:

Section 1.  For the purpose of providing funds to finance the cost of the Project and to pay costs and expenses in connection with the PENNVEST Funding, the Evans City Water and Sewer Authority hereby authorizes the execution of all Funding Documents and the taking of all actions necessary and required by PENNVEST to obtain the PENNVEST Funding in the maximum principal amount of $1,960,000.00 pursuant to the provisions of the Funding Documents.

Section 2.  The PENNVEST Funding shall be secured by the Funding Documents from the Evans City Water and Sewer Authority to PENNVEST, and to the extent and in the manner therein set forth, the Project Collateral and other agreements granting and creating certain security interests in favor of PENNVEST, as well as a pledge of all other revenues and receipts of the Evans City Water and Sewer Authority for the payment of costs of the Evans City Water and Sewer Authority, and for the payment of principal of, and interest on, the Debt Obligation.  In addition, the Evans City Water and Sewer Authority shall accept the Debt Obligation as a special revenue obligation and pledge its water revenues toward the repayment of the Debt Obligation.

Section 3.  The form, terms and conditions of the Funding Documents prepared by counsel for the Evans City Water and Sewer Authority and PENNVEST, to be substantially in the form as submitted to this meeting are hereby approved.  The Chairman of the Evans City Water and Sewer Authority is hereby authorized to execute the Funding Documents in such form on behalf of the Evans City Water and Sewer Authority, subject to such changes and modifications, if any, as may be approved by such Chairman, the execution of the Funding Documents to be conclusive evidence of such approval, and the Secretary is hereby authorized to cause the corporate seal of the Evans City Water and Sewer Authority to be affixed thereto and to attest the same.  The Chairman of the Evans City Water and Sewer Authority is further authorized to acknowledge the same on behalf of the Evans City Water and Sewer Authority and to deliver said Funding Documents to PENNVEST.

Section 4.  The PENNVEST Funding shall be repaid in the amounts and on certain dates, all as set forth in the Funding Documents as submitted to this meeting. The PENNVEST Funding is also subject to early repayment as provided in the Funding Documents.

Section 5.  The application for the PENNVEST Funding ("Application") in the form submitted at this meeting is hereby approved with such subsequent, necessary and appropriate variations, omissions and insertions, if any, as may be approved by the Chairman of the Evans City Water and Sewer Authority, and the Chairman is hereby authorized to sign said Application, amended as aforesaid, on behalf of the Evans City Water and Sewer Authority. The review of the Application and any amendments by PENNVEST, as well as any investigation required by PENNVEST in connection with the PENNVEST Funding, are hereby authorized.

Section 6.  Upon receipt, the proceeds from the PENNVEST Funding authorized to be secured in this Resolution, shall be applied by the Evans City Water and Sewer Authority under the terms and conditions set forth in the Funding Documents.

Section 7.  The proper officers of the Evans City Water and Sewer Authority are hereby authorized, empowered and directed on behalf of the Evans City Water and Sewer Authority to execute any and all papers and documents to do and cause to be done any and all acts and things necessary or proper for the execution or carrying out of this Resolution, of the Funding Documents and in the Application and securing of the PENNVEST Funding.

Section 8.  All resolutions or parts of resolutions inconsistent herewith shall be, and the same are, hereby rescinded, cancelled and annulled.

ATTEST:                                                                    Evans City Water and Sewer Authority

______________________________                        ______________________________ 

                                                                                    Ed Tanski, Chairman

(SEAL)