HomeMy Public PortalAboutOrd 521 Financing a Wastewater Treatment Project (Published in The Ark Valley News on [publication date])
ORDINANCE NO. 521
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT
BETWEEN BEL AIRE, KANSAS AND THE STATE OF KANSAS, ACTING BY AND
THROUGH THE KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT FOR
THE PURPOSE OF OBTAINING A LOAN FROM THE KANSAS WATER POLLUTION
CONTROL REVOLVING FUND FOR THE PURPOSE OF FINANCING A
WASTEWATER TREATMENT PROJECT; ESTABLISHING A DEDICATED SOURCE
OF REVENUE FOR REPAYMENT OF SUCH LOAN; AUTHORIZING AND
APPROVING CERTAIN DOCUMENTS IN CONNECTION THEREWITH; AND
AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE LOAN
AGREEMENT.
WHEREAS, the Federal Water Quality Act of 1987 (the "Federal Act")
established revolving fund program for public wastewater treatment systems to assist in
financing the costs of infrastructure needed to achieve or maintain compliance with the
Federal Act and to protect the public health and authorized the Environmental
Protection Agency (the "EPA") to administer a revolving loan program operated by the
individual states; and
WHEREAS, to fund the state revolving fund program, the EPA will make annual
capitalization grants to the states, on the condition that each state provide a state match
for such state's revolving fund; and
WHEREAS, by passage of the Kansas Water Pollution Control Revolving Fund
Act, K.S.A. 65-3321 through 65-3329, inclusive (the "Loan Act"), the State of Kansas
(the "State") has established the Kansas Water Pollution Control Revolving Fund (the
"Revolving Fund") for purposes of the Federal Act; and
WHEREAS, under the Loan Act, the Secretary of the Kansas Department of
Health and Environment ("KDHE") is given the responsibility for administration and
management of the Revolving Fund; and
WHEREAS, the Kansas Development Finance Authority (the "Authority") and
KDHE have entered into a Pledge Agreement (the "Pledge Agreement") pursuant to
which KDHE agrees to enter into Loan Agreements with Municipalities for public
wastewater treatment projects (the "Projects") and to pledge the Loan Repayments (as
defined in the Pledge Agreement) received pursuant to such Loan Agreements to the
Authority; and
WHEREAS, the Authority is authorized under K.S.A. 74-8905(a) and the Loan
Act to issue revenue bonds (the "Bonds") for the purpose of providing funds to
implement the State's requirements under the Federal Act and to loan the same,
together with available funds from the EPA capitalization grants, to Municipalities within
the State for the payment of Project Costs (as said terms are defined in the Loan Act);
and
WHEREAS, Bel Aire, Kansas (the "Municipality") is a municipality as said term is
defined in the Loan Act which operates a wastewater collection and pumping station
(the "System"); and
WHEREAS, the System is a public Wastewater Treatment Works, as said term is
defined in the Loan Act; and
WHEREAS, the Municipality has, pursuant to the Loan Act, submitted an
Application to KDHE to obtain a loan from the Revolving Fund to finance the costs of
improvements to its System consisting of the following:
Various improvements to the sanitary sewer system including manhole rehabilitation,
replacement of several sewer lines, upgrade to wastewater pumping station, and
SCADA system (the "Project"); and
WHEREAS, the Municipality has taken all steps necessary and has complied
with the provisions of the Loan Act and the provisions of K.A.R. 28-16-110 to 28-16-138
(the "Regulations") applicable thereto necessary to qualify for the loan; and
WHEREAS, KDHE has informed the Municipality that it has been approved for a
loan in amount of not to exceed Five Hundred Thirty Five Thousand Nine Hundred and
Eighty Dollars [$535,980] (the "Loan") in order to finance the Project; and
WHEREAS, the governing body of the Municipality hereby finds and determines
that it is necessary and desirable to accept the Loan and to enter into a loan agreement
and certain other documents relating thereto, and to take certain actions required in
order to implement the Loan Agreement.
THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY
OF Bel Aire, KANSAS:
Section 1. Authorization of Loan Agreement. The Municipality is hereby
authorized to accept the Loan and to enter into a certain Loan Agreement, with an
effective date of January 15, 2013, with the State of Kansas acting by and through the
Kansas Department of Health and Environment (the "Loan Agreement") to finance the
Project Costs (as defined in the Loan Agreement). The Mayor and Clerk are hereby
authorized to execute the Loan Agreement in substantially the form presented to the
governing body this date, with such changes or modifications thereto as may be
approved by the Mayor and the City Attorney, the Mayor's execution of the Loan
Agreement being conclusive evidence of such approval.
Section 2. Establishment of Dedicated Source of Revenue for Repayment
of Loan. Pursuant to the Loan Act, the Municipality hereby establishes a dedicated
source of revenue for repayment of the Loan. In accordance therewith, the Municipality
shall impose and collect such rates, fees and charges for the use and services
furnished by or through the System, including all improvements and additions thereto
hereafter constructed or acquired by the Municipality as will provide System Revenues
or levy ad valorem taxes without limitation as to rate or amount upon all the taxable
tangible property, real or personal, within the territorial limits of the Municipality to
produce amounts which are sufficient to (a) pay the cost of the operation and
maintenance of the System, (b) pay the principal of and interest on the Loan as and
when the same become due, and (c) pay all other amounts due at any time under the
Loan Agreement; provided, however, no lien or other security interest is granted by the
Municipality to KDHE on the System Revenues under this Agreement. In the event that
the System Revenues are insufficient to meet the obligations under the Loan and the
Loan Agreement, the Municipality shall levy ad valorem taxes without limitation as to
rate or amount upon all the taxable tangible property, real or personal, within the
territorial limits of the Municipality to produce the amounts necessary for the prompt
payment of the obligations under the Loan and Loan Agreement.
In accordance with the Loan Act, the obligations under the Loan and the Loan
Agreement shall not be included within any limitation on the bonded indebtedness of the
Municipality.
Section 3. Further Authority. The Mayor, Clerk and other City officials are
hereby further authorized and directed to execute any and all documents and take such
actions as they may deem necessary or advisable in order to carry out and perform the
purposes of the Ordinance, and to make alterations, changes or additions in the
foregoing agreements, statements, instruments and other documents herein approved,
authorized and confirmed which they may approve, and the execution or taking of such
action shall be conclusive evidence of such necessity or advisability.
Section 4. Governing Law. The Ordinance and the Loan Agreement shall be
governed exclusively by and construed in accordance with the applicable laws of the
State of Kansas.
Section 5. Effective Date. This Ordinance shall take effect and be in full force
from and after its passage by the governing body of the City and publication in the
official City newspaper.
PASSED by the governing body of the City on January 22, 2013 and
APPROVED by the Mayor.
(SEAL)
Mayor
ATTEST:
Clerkf
[APPROVED AS TO FORM ONLY.]
[City Attornq'j
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