HomeMy WebLinkAbout2013-10 Revolving Fund Loan Wastewater Projects
RESOLUTION NO.2013-
A RESOLUTION AUTHORZING AND APPROVING A STATE
REVOLVING FUND LOAN AGREEMENT TO FINANCE WASTEWATER
SYSTEM PROJECTS
RECITALS:
A. The City of Ashland (the "City") has entered into negotiations with the State of Oregon
Department of Environmental Quality (the "DEQ") for a loan to the City from the State
Revolving Fund in the approximate amount of $4,549,691 for the purposes of a wastewater
membrane system upgrade and riparian restoration work within the Bear Creek Watershed.
B. The DEQ has provided to the City a proposed State Revolving Fund Loan Agreement.
C. The Interest rate on the proposed loan is 1.00% per annum.
D. The proposed loan is to be fully repaid 20 years after the estimated or actual date of
completion of the project, whichever is earlier.
E. The proposed loan would be secured by the net operating revenues of the City's wastewater
system.
F. Under the proposed loan, the City would pay an annual fee of 0.5% of the outstanding loan
amount, in addition to interest.
G. The proposed loan requires the City to review its wastewater rates and fees at least annually
and to adjust them as necessary to ensure collections sufficient to meet a specified debt
service requirement.
H. The City Attorney and Director of Finance have approved this proposed agreement as to
legal sufficiency and conformance with generally accepted accounting principles.
THE CITY COUNCIL OF THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. The City does authorize and approve of the form of the SRF Loan Agreement for
the financing of wastewater system projects.
SECTION 2. The City does authorize and approve the establishment and funding of a'
designated reserve account to meet the "Loan Reserve" requirement of the SRF Loan
Agreement, and does direct the Director of Finance to establish this loan reserve.
SECTION 3. The City does authorize and approve the Director of Finance and the City
Administrator, acting for and on behalf of the City and without further action by the City
Council, to execute the final SRF Loan Agreement and such other and additional documents as
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may reasonably be required for the consummation and closing of the loan, and any amendments
required thereafter.
This resolution was duly PASSED and ADOPTED this a~ day of_/&,, 2013,
and to s effect upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this V day of 2013.
Z
o n Stromberg, Mayor
Reviewed as to form:
David H. an, City Attorney