RESOLUTION NO. RS2010-1241
A resolution authorizing the financing for the construction of a sewage treatment works project, Mill Creek Parallel Sewer Project, Project No. 07-SG-0182, including the execution of applications, contractual agreements, and other necessary documents in order to obtain a loan from the State of Tennessee to The Metropolitan Government of Nashville and Davidson County, and making certain representations regarding financing for loan repayment.
WHEREAS, the Metropolitan Government of Nashville and Davidson County (the Metropolitan Government) has determined that it is necessary and desirable to undertake certain activities or tasks in connection with a sewage treatment works construction project in and for the Metropolitan Government; and,
WHEREAS, the Project is described by the Metropolitan Department of Water and Sewerage Services as an extension and increase of sewer transport capacity by construction of the Mill Creek Parallel Sewer, Project No. 07-SG-0182 (CIB Number 09WS0020) (the Project); and,
WHEREAS, Tennessee Code Annotated, Sections 68-221-201 thru 68-221-214 provide the statutory procedure whereby a loan for the construction of the Project may be obtained (the "Program Loan"); and,
WHEREAS, the Metropolitan Department of Water and Sewerage Services desires to apply for and enter into an Agreement (the Loan Agreement), of which a copy in its substantial form is attached hereto, with the State of Tennessee, Department of Environment and Conservation and the Tennessee Local Development Authority, to obtain such a loan for the construction of the Project (the Project Loan); and,
WHEREAS, Tennessee Code Annotated, §§4-31-101 through 4-31-117, provides for the issuance of bonds and notes by the Tennessee Local Development Authority (the "Authority") for the purpose of providing funds for Program Loans; and,
WHEREAS, Tennessee Code Annotated, Section 68-221-204(d) authorizes any municipality, by resolution, to perform all actions required under Part 2 of Chapter 221 of Title 68; and,
WHEREAS, the Metropolitan Government has determined that it is necessary and advisable to borrow funds from the State of Tennessee for 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, in substantial form, for the Project Loan to be completed and approved, and that the 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 application for and creation of indebtedness on behalf of the Metropolitan Government, the principal amount of which shall not exceed seven million dollars ($7,000,000), by obtaining a loan for the sewer treatment works project involving the construction of the Mill Creek Parallel Sewer, Project No. 07-SG-0182, to extend and increase sewer transport capacity (CIB Number 09WS0020) (the Project).
Section 2. That the Mayor of the Metropolitan Government be authorized to execute and deliver the Application for a Project Loan, of which a copy in its substantial form is attached hereto as Exhibit A, the principal amount of which shall not exceed seven million dollars ($7,000,000), for the purpose of funding the total estimated cost of the Project is hereby ratified and approved in all aspects.
Section 3. That the form, terms, and provisions of an agreement for the Project Loan among the Metropolitan Government of Nashville and Davidson County and the State of Tennessee, Department of Environment and Conservation and the Tennessee Local Development Authority (the “Loan Agreement”), as attached hereto and incorporated herein as Exhibit B in its substantial form, are hereby approved.
Section 4. 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 and 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 agrees that its existing fees, rates and charges are sufficient to pay the cost of operation and maintenance of the Project, which cost shall include depreciation on any other debt service expense of the Project.
Section 6. That the Mayor of the Metropolitan Government is authorized and directed to execute the Loan Agreement attached hereto in substantial form, and any amendments or supplements to the Loan Agreement, in the name and behalf of the Metropolitan Government; to deliver such documents to the other parties to such documents, 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 execute and deliver such further instruments or documents as the Mayor may consider necessary or advisable in connection with the Loan Agreement.
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: Parker Toler, Walter Hunt, Ronnie Steine
Attachment(s) on file in the Metropolitan Clerk's Office
|Referred to:||Budget & Finance Committee
Public Works Committee
|Introduced:||June 1, 2010|
|Adopted:||June 1, 2010|
|Approved:||June 2, 2010|