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HomeMy Public PortalAboutOrdinance 2880AN ORDINANCE AUTHORIZING LOAN AGREEMENT ORDINANCE NUMBER 2880 AN ORDINANCE AUTHORIZING THE VILLAGI~ OF PLAINFIELD, WILL COUNTY, ILLINOIS, TO BORROW FUNDS FROM THE WATER POLLUTION CONTROL LOAN PROGRAM WHEREAS, the Village of Plainfield, Will County, Illinois, operates its sewerage system ("the System") in accordance with the provisions of Article VII Section 6 of the Illinois Constitution and the Local Government Debt Reform Act, 30 ILCS 3 50/1 et seq. (collectively "the Act"); and WHEREAS, the PRESIDENT and BOARD OF TRUSTEES of the Village of Plainfield ("the Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare to improve the System, including the following: SANITARY REHABILITATION PROGRAM REHABILITATION OF APPROXIMATELY 10,700 FEET OF SANITARY SEWER BY LINING WITH CURED-IN-PLACE PIPE ON 8 INCH TO 30 INCH DIAMETER SEWER PIPES together with any land or rights in land and all electrical, mechanical or other services necessary, useful or advisable to the construction and installation ("the Project"), all in accordance with the plans and specifications prepared by the consulting engineers of the Village of Plainfield, which Project has a useful life of FIFTY years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial and other related expenses is $2,100,000.00, and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, the loan shall bear an interest rate as defined by 35 Ill. Adm. Code 355, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and WHEREAS, the principal and interest payment shall be payable semi-annually, and the loan shall mature in 20 years, which is within the period of useful life of the Project; and WHEREAS, the costs are expected to be paid for with a loan to the Village of Plainfield from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from revenues of the System and the loan is authorized to be accepted at this time pursuant to the Act; and WHEREAS, in accordance with the provisions of the Act, the Village of Plainfield is authorized to borrow funds from the Water Pollution Control Loan Program in the aggregate principal amount of $2,100,000.00 to provide funds to pay the costs of the Project; and WHEREAS, the loan to the Village of Plainfield shall be made pursuant to a Loan Agreement, including certain terms and conditions between the Village of Plainfield and the Illinois Environmental Protection Agency; NOW THEREFORE, be it ordained by the Corporate Authorities of the Village of Plainfield, Will County, Illinois, as follows: SECTION L. INCORPORATION OF PREAMBLES The Corporate Authorities hereby find that the recitals contained in the preambles are true and correct, and incorporate them into this Ordinance by this reference. SECTION 2. DETERMINATION TO BORROW FUNDS It is necessary and in the best interests of the Village of Plainfield to construct the Project for the public health, safety, and welfare, in accordance with the plans and specifications, as described; that the System continues to be operated in accordance with the provisions of the Illinois Environmental Protection Act, 41 S ILCS S/1 et seq.; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the Village of Plainfield in the aggregate principal amount (which can include construction period interest financed over the term of the loan) not to exceed $2,100,000.00. SECTION 3. ADDITIONAL ORDINANCES The Corporate Authorities may adopt additional ordinances or praceedings supplementing or amending this Ordinance, providing for entering into the Loan Agreement with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the revenues of the System, so long as the maximum amount of the Laan Agreement as set forth in this Ordinance is not exceeded and there is no material change in the project or purposes described herein. Any additional ordinances or proceedings shall in all instances become effective in accordance with the Act or other applicable laws. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for entering into the Loan Agreement under applicable law. However, notwithstanding the above, the Village of Plainfield may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this Ordinance, including but nat limited to interest rate, preference or priority of any' other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair the obligation of the Village of Plainfield to pay the principal and interest due to the Water Paliution Control Loan Program without the written consent of the Illinois Environmental Protection Agency. SECTION 4. LOAN NOT INDEBTEDNESS OF VILLAGE OF PLAINFIELD Repayment of the loan to .the Illinois Environmental Pratection Agency by the Village of Plainfield pursuant to this Ordinance is to be solely from the revenue derived from revenues of the System, and the loan does nat constitute an indebtedness of the Village of Plainfield within the meaning of any constitutional or statutory limitation. SECTION S. APPLICATION FOR LOAN The PRESIDENT rs hereby authorized to make application to the Illinois Environmental Protection Agency for a loan through the Water Pollution Control Loan Program, in accordance with the loan requirements set out in 3S Ill. Adm. Code 365. SECTION 6. ACCEPTANCE OF LOAN AGREEMENT The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Water Pollution Control Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded shall be used solely for the purposes of the project as approved by the Illinois Envirorunental Protection Agency in accordance with the terms and conditions of the Loan Agreement. SECTION 7. RESERVE ACCOUNTS As long as the Village of Plainfield has outstanding revenue bonds payable from revenues of the system that are senior to the revenue bond authorized by this ordinance, the Village of Plainfield shall maintain an account, coverage and reserves equivalent to the accounts, coverages and reserves required by the outstanding ordinances. SECTION 8. AUTHORIZATION OF PRESIDENT TO EXECUTE LOAN AGREEMENT The PRESIDENT is hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities may authorize by resolution a person other than the PRESIDENT for the sale purpose of authorizing or executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan. SECTION 9. SEVERABILITY if any section, paragraph, clause or provision of this Ordinance is held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. SECTION 10. REPEALER All ordinances, resolutions, orders, or parts thereof, which conflict with the provisions of this Ordinance, to the extent of such conflict, are hereby repealed. THE REST OF THIS PAGE IS LEFT INTENTIONALLY BLANK. PASSED by the Corporate Authorities On the 22"d day of June, 2009. APPROVED e 2 "d d f June, 2009 President, Village of Plainfield Will County, Illinois AYES: Peck, Racich, Vaupel, Bonuchi, Fay, Lamb NAYS: None ABSENT: None PUBLISHED in pamphlet form on the 23`d day of June, 2009. RECORDED in the Village of Plainfield Records on the 23`d day of June, 2009 TEST: Village of Plainfield Clerk Village of Plainfield Will County, Illinois