HomeMy WebLinkAboutResolution No. 4547
RESOLUTION NO. 45'1-i=
A RESOLUTION OF THE CITY OF EUGENE, LANE COUNTY,
OREGON, AUTHORIZING A WATER POLLUTION CONTROL
REVOLVING FUND LOAN AGREEMENT WITH THE
DEPARTMENT OF ENVIRONMENTAL QUALITY OF THE
STATE OF OREGON IN AN AGGREGATE PRINCIPAL
AMOUNT OF NOT MORE THAN $2,000,000.
THE CITY COUNCIL OF THE CITY OF EUGENE, OREGON (THE "CITY")
FINDS AS FOLLOWS:
A. The City desires to borrow up to $2,000,000 from the Water Pollution Control
Revolving Fund program operated by the State of Oregon Department of Environmental Quality (the
"DEQ") under ORS 468.423 to 468.440, to finance rehabilitation of City sewer collectors (the
"Project").
B. The City is authorized by ORS 468.439 to enter into a loan agreement with the DEQ
to finance the Project, to pledge its sewer system revenues to pay the loan, to fund reserves for the
loan, and to make covenants with the DEQ to secure the loan.
C. The City should adopt this resolution to authorize the borrowing of not more than
$2,000,000 from the DEQ pursuant to ORS 468.439 to finance the Project.
NOW, THEREFORE, BE IT RESOL YED by the City Council of the City of Eugene, a
municipal corporation of the State of Oregon, as follows:
Section 1. Based on the above findings, which are adopted herein, the City is hereby
authorized to enter into a loan agreement with the DEQ to finance the Project in a principal amount
of not more than $2,000,000.
Section 2. The loan agreement shall bear interest at a rate that does not exceed five percent
per annum, and shall mature over a period of not more than ten years. The City Manager or the
person designated in writing by the City Manager to act under this Resolution (the "City Official")
may, on behalf of the City and without further action by the City Council:
1. Negotiate the terms of, and enter into a loan agreement with the DEQ, within
the limitations established by this resolution;
2. Pledge all or any portion of the revenues of the City's sewer system to secure
the amounts due under the loan agreement;
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3. Create a reserve account to secure the loan agreement, deposit sewer system
revenues into the reserve account in the amounts specified in the loan agreement, and
covenant to maintain a minimum balance in the reserve account from sewer revenues;
4. Covenant to charge rates and fees in connection with its sewage treatment and
collection facilities which generate net revenues at least equal to the levels specified in the
loan agreement;
5. Enter into covenants to protect the tax-exempt status of interest payable under
the loan agreement;
6. Enter into any other agreements and make any other covenants which the DEQ
requires from the City to obtain financing for the Project from the Water Pollution Control
Revolving Fund, execute and deliver any certificates or other documents, and take any other
action which the City Official determines is desirable in order to obtain financing for the
Project from the Water Pollution Control Revolving Fund.
The foregoing Resolution adopted by the City Council of the City of Eugene, Lane County,
Oregon on the J.- ~~ay of November, 1997.
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City Rec2~~
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