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HomeMy WebLinkAboutOrdinances - ORD-15-1731 - 06/01/2015 - AUTHORIZING WATER POLLUTION CONTROL LOANORDINANCE NO: ORD-15-1731 An Ordinance authorizing the City of McHenry, McHenry County, Illinois, to borroiv funds front the Water Pollution Control Loan Program WHEREAS, the City of McHenry, McHenry County, Illinois operates its sewerages system (the "System"), is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois and in accordance with those provisions and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (collectively the "Act"); and WHEREAS, the Mayor and City Council of the City (the "Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare to improve the System, including the following: the McHenry wastewater treatment facility consolidation consisting of upgrades to the McHenry South wastewater treatment plant to allow the Central wastewater treatment plant to be abandoned. The upgrades include a regional pump station at Central plant to pump the flow to the South wastewater treatment plant. The South wastewater treatment plant upgrades include microscreens, sequencing batch reactors, disc filtration, and UV disinfection for normal flows along the existing treatment train of oxidation ditches and final clarifiers. A high rate clarifier is proposed to treat storm peaks with the flow then passing through the proposed UV disinfection. A sludge dryer is also proposed for sludge handling, together with any land or rights in land and all electrical, mechanical or other services necessary, useful or advisable to the construction and installation (the "Project"), all in accordance with the plans and specifications prepared by the consulting engineers of the City, which Project has a useful life of greater than twenty one years; and WHEREAS, the estimated costs of construction and installation of the Project, including engineering, legal, financial and other related expenses does not exceed $35,000,000.00, and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, the loan shall bear an interest rate as defined by 35 I11. Adm. Code 365, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and WHEREAS, the principal and interest payment shall be payable semi-annually, and the loan shall mature in 20 years, which is within the period of useful life of the Project; and WHEREAS, the costs are expected to be paid for with a loan to the City from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from dedicated revenues or revenue from the System and the loan is authorized to be accepted at this time pursuant to the Act; and Page 1 WHEREAS, in accordance with the provisions of the Act, the City is authorized to borrow funds from the Water Pollution Control Loan Program in the aggregate principal amount not to exceed $35,000,000.00 to provide funds to pay the costs of the Project; and WHEREAS, the loan to the City shall be made pursuant to a Loan Agreement, including certain terms and conditions between the City and the Illinois Environmental Protection Agency; NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF McHENRY, McHenry County, Illinois, as follows: SECTION l: Incorporation of Preambles. The Corporate Authorities hereby find that the recitals contained in the preambles are true and correct, and incorporate them into this Ordinance by this reference. SECTION 2: Determination to Borrow Funds. It is necessary and in the best interests of the City to construct the Project for the public health, safety, and welfare, in accordance with the plans and specifications, as described; that the System continues to be operated in accordance with the provisions of the Illinois Environmental Protection Act, 415 ILCS 511 et seq.; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the City in the aggregate principal amount not to exceed $35,000,000.00. SECTION 3: Additional Ordinances. The Corporate Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance, providing for entering into the Loan Agreement with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the dedicated revenues or revenue from the System so long as the maximum amount of the Loan Agreement as set forth in this Ordinance is not exceeded and there is no material change in the project or purposes described herein. Any additional ordinances or proceedings shall in all instances become effective in accordance with the Act or other applicable laws. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for entering into the Loan Agreement under applicable law. However, notwithstanding the above, the City may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this Ordinance, including but not limited to interest rate, preference or priority of any other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair the obligation of the City to pay the principal and interest due to the Water Pollution Control Loan Program without the written consent of the Illinois Environmental Protection Agency. SECTION 4: Loan not Indebtedness of City. Repayment of the loan to the Illinois Environmental Protection Agency by the City pursuant to this Ordinance is to be solely from the revenue derived from dedicated revenues or revenues from the System and the loan does not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. Page 2 SECTION 5: Application for Loan. The City Administrator is hereby authorized to make application to the Illinois Environmental Protection Agency for a loan through the Water Pollution Control Loan Program, in accordance with the loan requirements set out in 35 Ill. Aden. Code 365. SECTION 6: Acceptance of Loan Agreement. The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Water Pollution Control Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded shall be used solely for the purposes of the project as approved by the Illinois Environmental Protection Agency in accordance with the terms and conditions of the Loan Agreement. SECTION 7: Authorization of Mayor and City Clerk to Execute Loan Agreement. The Mayor and City Cleric are hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities may authorize by resolution a person other than the Mayor for the sole purpose of authorizing or executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan. SECTION 8: Severability. If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 9: Repealer. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 10: This Ordinance shall be in full force and effect upon its passage, approval and publication in pamphlet form (which publication is hereby authorized) as provided by law. Voting Aye: Condon, Peterson, Wimmer, Schaefer Voting Nay: Santi, Glab, Curry Not Voting: None Absent: None Abstain: None PASS AND APPROVED THIS 1ST DAY OF DUNE 2015. (SEAL) ATTEST: City Clerk J ni e C. Jones a---. Mayor Susan E. Low Page 3 CERTIFICATION I, JANICE C. JONES, do hereby certify that I am the duly appointed, acting and qualified Clerk of the City of McHenry, McHenry County, Illinois, and that as such Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Aldermen of said City of McHenry. I do hereby further certify that at a regular meeting of the Mayor and Aldermen of the City of McHenry, held on the I st day of June 2015, the foregoing Ordinance entitled An Ordinance authorizing the City of McHenry, McHenry County, Illinois, to borrow funds from the Water Pollution Control Loan Program, was duly passed by the City Council of the City of McHenry. The pamphlet form of Ordinance No ORD-15-1731, including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing on the 2nd day of June 2015, and will continue for at least 10 days thereafter. Copies of such Ordinance are also available for public inspection upon request in the office of the City Clerk. I do further certify that the original, of which the attached is a true and correct copy, is entrusted to me as the Clerk of said City for safekeeping, and that I am the lawful custodian and keeper of the same. GIVEN under my hand and seal this 2nd day of June 2015. (SEAL) U nice C. Jones, kirk ty of McHenry, McHenry County, Illinois Page 4