RESOLUTION NO. RS2009-993
A resolution authorizing and providing the financing for the construction of a sewage treatment works project, including authorizing 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 Nashville Department of Water and Sewerage Services as a refurbishment of sewage treatment works at the Central, Dry Creek, and Whites Creek Plants, a sewer pumping station, and the Central CSO Pumping Station (CIB Numbers: 09WS0007, 09WS0009, 10WS0001, 09WS0005, 09WS0008) (the Project); and,
WHEREAS, this Project is to replace, refurbish or enhance existing capital infrastructure that has reached a point of needing to be replaced due to life of service; 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 State of Tennessee is requiring that the amount of the Project Loan, in an amount not to exceed $1,000,000.00, must have been or be spent by the Metropolitan Government on sewage treatment works projects eligible under Tennessee Code Annotated, Sections 68-221-201 et seq. performed during a period beginning on a date sixty days before the date of the execution of the attached agreement and ending on December 15, 2009, and the work encompassed by the Project is proposed to meet these parameters; and,
WHEREAS, and the Metropolitan Department of Water and Sewerage Services desires to apply for and enter into an Agreement (the Loan Agreement), a copy of which is attached hereto, with the State of Tennessee, Department of Environment and Conservation, 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 for the Project Loan 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 $1,000,000.00 by the obtaining of a loan for a sewage treatment works construction project involving refurbishments to the Central, Dry Creek, and Whites Creek Plants, a sewer pumping station, and the Central CSO pumping station (CIB Numbers 09WS0007, 09WS0009, 10WS0001, 09WS0005, and 09WS0008)(the Project).
Section 2. That Karl Dean, the Mayor of the Metropolitan Government be authorized to execute and deliver the Application for a project Loan, a copy of which is attached hereto as Exhibit A, the principal amount of which shall not exceed $1,000,000.00 for the purpose of funding all or a portion of the total estimated cost of the Project, $1,000,000.00), 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, the State of Tennessee, Department of Environment and Conservation, and the Tennessee Local Development Authority (the “Loan Agreement”), as attached hereto as Exhibit B and incorporated herein, 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, and any amendments of 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 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, Jerry Maynard
Attachment(s) on file in the Metropolitan Clerk's Office
|Referred to:||Budget & Finance Committee
Public Works Committee
|Introduced:||October 20, 2009|
|Adopted:||October 20, 2009|
|Approved:||October 22, 2009|