HomeMy Public PortalAbout13371ORDINANCE NO. 13371
AN ORDINANCE, authorizing the participation of The Metropolitan St. Louis
Sewer District in the Energize Missouri Water Loan Program of the Missouri Department of
Natural Resources and the State Environmental Improvement and Energy Resources Authority,
and the execution of a loan agreement and promissory note to provide funds to finance the
installation or construction of energy conservation measures; such funds to be repaid from
energy cost savings realized by the District as a result of implementation of such energy
conservation measures.
WHEREAS, The Metropolitan St. Louis Sewer District (the "District"), an
authorized Borrower under the Energize Missouri Water Loan Program, through the preparation
of engineering plans and reports, has identified certain energy conservation measures which
would benefit the District by reducing future energy costs to the District and has applied to the
Missouri Department of Natural Resources/Division of Energy ("MDNR") for a Loan to
implement such energy conservation measures (the "Project"); and
WHEREAS, at the District's request, MDNR has agreed to lend to the District
certain funds pursuant to Sections 640.651 to 640.160 of the Missouri Revised Statutes, as
amended, ("Energy Act")and the maximum loan is based on engineering estimates of savings to
be generated from savings to be generated from the Project; and
WHEREAS at the District’s request, MDNR has agreed to lend to the District
certain funds pursuant to Sections 640.160 of the Missouri Revised Statutes, as amended,
(“Energy Act”), and the maximum loan is based on engineering estimates of savings to be
generated from the Project; and
WHEREAS, in connection with its participation in the Energize Missouri Water
Loan Program the District will be required to execute certain documents in connection with the
Loan;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF
THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. The Board of Trustees of the Metropolitan St. Louis Sewer District
hereby finds and determines that it is in the best interests of the District to enter into the Loan
Agreement and execute the Promissory Note in order to obtain funds for the purpose of installing
energy conservation measures within the District. The District has received approval from at
least two-thirds of the Board as required by Section 160.302(2) Revised Statutes of Missouri, as
amended. The total amount of the Loan is hereby authorized in the amount of Two Hundred
Forty-two Thousand Seven Hundred Dollars ($242,700.00), which amount shall include, (i) an
estimated maximum construction loan amount of Two Hundred Twenty-three Thousand Seven
Hundred Ninety-three Dollars ($223,793.00), plus interest to accrue during the period from any
draws on the loan by the District until completion of construction of the Project, (ii) interest on
the Loan during the term of the Loan, at a rate of 2.5%. Under the Loan Agreement, the District
agrees to make semi-annual payments equal to one-half of the annual energy savings until the
Promissory Note is retired.
Section Two. The Board of Trustees of the Metropolitan St. Louis Sewer District
hereby approves the form of the Loan Agreement, which is attached to this Ordinance as Exhibit
A, the form of Promissory Note, attached hereto as Exhibit B, which reflects the total amount of
Project Cost disbursements, one point origination fee and accrued interest as more fully
described therein and the form of District's Closing Certificate, attached hereto as Exhibit C.
Section Three. The Executive Director and Secretary-Treasurer are hereby
authorized and empowered to execute, enter into, deliver for and in the name of and on behalf of
the District, under its corporate seal, the following documents (all of such documents, and such
other documents, certificates and instruments as may be necessary to carry out the intent of this
Ordinance, together with any other documents and instruments contemplated thereby, or
otherwise necessary or appropriate to effectuate the transaction contemplated thereby, being the
"Program Documents"), the forms of which have been presented in draft to the Board:
A. Loan Agreement
B. Promissory Note
C. District's Closing Certificate
Section Four. The Board hereby approves the Project and authorizes the
Executive Director and Secretary-Treasurer to proceed with arranging the financing for the
Project, in furtherance of and subject to the requirements of this Ordinance. The Executive
Director and Secretary-Treasurer are hereby further authorized and empowered to execute the
Program Documents with such additional modifications, corrections, amendments and deletions
as shall be necessary or appropriate, in the sole and absolute discretion of such officers, to
effectuate the transactions contemplated by this Ordinance, the execution of any such documents
constituting the conclusive evidence of the approval of the District to any such changes.
Section Five. The amounts due under the Loan Agreement and the Promissory
Note shall be limited obligations of the District payable solely from energy costs savings derived
from the Project. Amounts due under the Loan Agreement and the Promissory Note shall not
constitute a debt or liability of the District or of the State of Missouri or of any political
subdivision thereof and such amounts shall not constitute an indebtedness within the meaning of
any constitutional or statutory debt limitation or restriction.
The foregoing Ordinance was adopted January 12, 2012 by the following vote –
Ayes: B. Berry, J. Goffstein, E. Ross, J. Buford, and D. Visintainer.
Nays: None.
Secretary-Treasurer