HomeMy WebLinkAbout2014-14 Safe Drinking Water Revolving Loan
RESOLUTION NO. 2014- ILA
A RESOLUTION AUTHORIZING A LOAN FROM THE SAFE
DRINKING WATER REVOLVING LOAN FUND BY ENTERING INTO A
FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE
FINANCE AUTHORITY
RECITALS:
A. The Recipient is a community water system as defined in Oregon Administrative
Rule 123-0490010.
B. The Safe Drinking Water Act Amendments of 1996, Pub.L. 104-182, as amended (the
"Act'), authorize any community or nonprofit non-community water system to file an
application with the Oregon Infrastructure Finance Authority ("the IFA") to obtain financial
assistance from the Safe Drinking Water Revolving Loan Fund.
C. The Recipient has filed an application with the IFA to obtain financial assistance for a "safe
drinking water project" within the meaning of the Act, and the IFA has approved the
Recipient's application for financial assistance from the Safe Drinking Water Revolving
Loan Fund.
D. The Recipient is required, as a prerequisite to the receipt of financial assistance from the IFA,
to enter into a Financing Contract with the IFA, substantially in the form attached hereto as
Exhibit A.
E. Notice relating to the Recipient's consideration of the adoption of this Resolution was
published in full accordance with the Recipient's charter and laws for public notification.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Financine Loan Authorized. The Governing Body authorizes the City
Administrator to execute the Financing Contract and the Promissory Note (the "Financing
Documents") and such other documents as may be required to obtain financial assistance
including a loan from the IFA on the condition that the principal amount of the loan from the
IFA to the Recipient is not more than $2,970,000 (with $950,000 eligible for principal
forgiveness if contract conditions are met) and the interest rate is not more than 1% if contract
conditions are met (and 3.48% if not met). The proceeds of the loan from the IFA shall be
applied solely to the "Costs of the Project" as such term is defined in the Financing Contract.
SECTION 2. Security. Amounts payable by the Recipient shall be payable from the sources
described in Section 4 of the Financing Contract and the Oregon Revised Statutes Section
285A.213 (5) which include:
(a) Revenue from any water system project of the Recipient, including special assessment
Resolution No. 2014- Page 1 of 2
revenue;
(b) Amounts withheld under subsection 285A.213 (6);
(c) The general fund of the Recipient;
(d) Any combination of sources listed in paragraphs (a) to (c) of this subsection; or
(e) Any other source.
SECTION 3. Additional Documents. The City Administrator is hereby authorized to enter into
any agreements and to execute any documents or certificates which may be required to obtain
financial assistance from the IFA for the Project pursuant to the Financing Documents.
SECTION 4. Tax-Exempt Status. The Recipient covenants not to take any action or omit to
take any action if the taking or omission would cause interest paid by the Recipient pursuant to
the Financing Documents not to qualify for the exclusion from gross income provided by
Section 103(a) of the Internal Revenue Code of 1986, as amended. The City Administrator of the
Recipient may enter into covenants on behalf of the Recipient to protect the tax-exempt status of
the interest paid by the Recipient pursuant to the Financing Documents and may execute any Tax
Certificate, Internal Revenue Service forms or other documents as shall be required by the IFA
or their bond counsel to protect tax-exempt status of such interest.
This res lution was duly PASSED and ADOPTED this / day of
d takes effe
2014 ct upon signing by the Mayor.
arbara Christensen, City Recorder
SIGNED and APPROVED this -7 day of
Review Las to form: 'PeA II [ S S1
CoUnM U&r
D v'4 H. Lo n, City Attorney
Resolution No. 2014- Page 2 of 2