17-11 SDWRLF Loan
RESOLUTION No. 17-11
RESOLUTION OF THE CITY OF SODAVILLE AUTHORIZING A LOAN FROM THE SAFE DRINKING WATER REVOLVING LOAN FUND BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE FINANCE AUTHORITY
The City Council (the “Governing Body”) of the City of Sodaville (the “Recipient”) finds:
A. The Recipient is a community water system as defined in the Oregon Administrative Rule 123-049-0010.
B. The Safe Drinking Water Act Amendments of 1996, Publ. L. 104-182, as amended (the “Act”), authorize any community water system to file an application with the Oregon Infrastructure Finance Authority of the Business Development Department (the “OBDD”) to obtain financial assistance from the Safe Drinking Water Revolving Loan Fund.
C. The Recipient has filed an application with the OBDD to obtain assistance for a “safe drinking water project” within the meaning of the Act, and the OBDD 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 OBDD, to enter into a Financing Contract with the OBDD, substantially in the form attached hereto as Exhibit A.
E. Notice relating to the Recipient’s consideration of the adoption of the Resolution was published in full accordance with the City of Sodaville charter and laws for public notification.
NOW THEREFORE, BE IT RESOLVED by the Governing Body of the Recipient as follows:
1. Financing 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 OBDD on the condition that the principal amount of the loan from the OBDD to the Recipient is not more than $567,000 (with $370,200 eligible for Principal forgiveness if contract conditions are met) and the interest rate is not more than 1% if contract conditions are met (and 2.15% if not met). The proceeds of the loan from the OBDD shall be applied solely to the “Costs of the Project” as such term is defined in the Financing Contract.
2. Sources of Repayment
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 revenue;
b) Amounts withheld under sub section 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.
3. Additional Documents.
The City Administrator hereby authorized to enter into any agreements and to execute any documents or certificates which may be required to obtain financial assistance from the OBDD for the Project pursuant to the Financing Documents.
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 OBDD or their bond counsel to protect the tax-exempt status of such interest.
5. Effective Date.
This Resolution shall be in force and effect from and after passage by the Governing Body.