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