RESOLUTION NO. RS2010-1165
A resolution authorizing and providing the financing for the construction of a wastewater project, including authorizing the execution of applications, contractual agreements, and other necessary documents in order to obtain a loan from the State of Tennessee for this purpose, and making certain representations regarding the financing for loan repayment.
WHEREAS, The Metropolitan Government of Nashville and Davidson County determined that it was necessary and desirable to undertake certain activities or tasks in connection with a wastewater facilities project, specifically the Project identified by the Metropolitan Department of Water and Sewerage Services as: Holt Road Sewer Project, CIB 09WS0019, Department of Water and Sewerage Services Project Number 09-SG-008, and Historic Town of Nolensville Sewer, CIB 09WS0019, Department of Water and Sewerage Services Project Number 09-SL-0009; and,
WHEREAS, the Project involves the construction of an expanded collection system that would connect the Holt Road and Nolensville Historic District areas, within the corporate limit of the Town of Nolensville, to the existing sewage transportation and treatment system of the Metropolitan Department of Water and Sewerage Services. When its construction is completed, the property owners to whom the expanded sewer collection system is made available as a result of the expansion will become customers of the Metropolitan Department of Water and Sewerage Services; and,
WHEREAS, Resolution No. RS2009-977 authorized application for a state revolving loan fund in the principal amount of which was not to exceed ONE MILLION EIGHTY THOUSAND DOLLARS ($1,080,000.00) with a portion of the American Recovery and Reinvestment Act (ARRA) funding to be forgiven – the principal forgiven to be $432,000.000, for the purpose of funding all or a portion of the total estimated cost of the Project; and,
WHEREAS, the construction bids received for completion of the project demonstrated that additional funds, in an estimated amount of THREE HUNDRED AND TWENTY FOUR THOUSAND DOLLARS ($324,000), are required to complete the Project; and,
WHEREAS, Tennessee Code Annotated, Section 68-221-1001 et seq., provides for the lending of moneys in the wastewater facilities Revolving Loan Fund to local governments for the purpose of providing funds for local government wastewater facilities projects, and the Metropolitan Department of Water and Sewerage Services desires to apply for and enter into an Agreement (the Loan Agreement) with the State of Tennessee, Department of Environment and Conservation, to obtain an additional loan for completion of the Project (the Project Loan); and,
WHEREAS, Tennessee Code Annotated, Section 12-9-104(a)(2)(b) authorizes the governing bodies of public agencies, such as metropolitan governments, to approve agreements between that public agency and another public agency, such as the State of Tennessee, by resolution; and,
WHEREAS, the Metropolitan Government has determined that it is necessary and advisable to borrow funds from the State of Tennessee for completion of the Project pursuant to these sections, and that it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that the attached application and agreement for the Project Loan be approved and that the additional Project Loan funds be obtained.
NOW THEREFORE, BE IT RESOLVED BY THE METROPOLITAN COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That The Metropolitan Government of Nashville and Davidson County (the Metropolitan Government) hereby approves the creation of indebtedness on behalf of the Metropolitan Government, the amount of which shall not exceed THREE HUNDRED AND TWENTY FOUR THOUSAND DOLLARS ($324,000), by obtaining a loan for a project identified by the State of Tennessee, Department of Environment and Conservation, as Project Number CWA #2009-249 (Metropolitan Department of Water and Sewerage Services Projects Numbers 09-SG-008 and 09-SL-0009).
Section 2. That the form, terms, and provisions of the agreement for the Project Loan among The Metropolitan Government of Nashville and Davidson County, the State of Tennessee, Department of Environment and Conservation, and the Tennessee Local Development Authority (the “Loan Agreement”), as attached hereto and incorporated herein, are hereby approved.
Section 3. That the Metropolitan Government hereby agrees to honor and accept the method of financing as may be determined by the Tennessee Local Development Authority pursuant to the Loan Agreement.
Section 4. That the Metropolitan Government hereby agrees to make the monthly payments on the Project Loan in accordance with the Payment Schedule to be attached to the Loan Agreement.
Section 5. That the Metropolitan Government hereby agrees that the Metropolitan Department of Water and Sewerage Services may charge special assessments to those customers to whom the expanded sewer collection system may become available to assist in paying the interest on and principal of the Project Loan in accordance with the Loan Agreement and further agrees to charge rates to those customers sufficient to pay the cost of operation and maintenance of the wastewater system of which the Project is a part, which cost shall include depreciation and all other debt service expense of the system.
Section 6. That the Mayor of the Metropolitan Government is authorized and directed to execute the Loan Agreement attached hereto, and any amendments of or supplements to the Loan Agreement, in the name and on behalf of the Metropolitan Government; to deliver such documents to the other parties, such execution and delivery to be conclusive proof of the approval of the Metropolitan Government of such documents; and to take such further action and to execute and deliver such further instruments or documents as the Mayor may consider necessary or advisable in connection with the Loan Agreement. Provided, however, this Resolution shall not be deemed to grant authority to the Mayor to approve any increase in the amount of the Project Loan.
Section 7. That to the extent any portion of this Resolution is held to be invalid or unenforceable by a final judgment of a court of competent jurisdiction, the invalidity thereof shall in no way affect any of the other sections of this Resolution.
Section 8. That this resolution shall become effective from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Ronnie Steine, Walter Hunt
Attachment(s) on file in the Metropolitan Clerk's Office
|Referred to:||Budget & Finance Committee
Public Works Committee
|Introduced:||April 6, 2010|
|Adopted:||April 6, 2010|
|Approved:||April 12, 2010|