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HomeMy WebLinkAboutResolution 20-1991 � � `. { - RESOLUTION NO. 20-91 RESOLUTION GIVING APPROVAL TO WASTEWATER FACILITY IMPROVEMENTS; GIVING APPROVAL TO THE ISSUANCE OF UTILITY REVENUE BONDS TO FINANCE, DIRECTLY AND INDIRECTLY, SUCH IMPROVEMENTS; APPROVING THE FORM OF LOAN AGREEMENT AND REVENUE BONDS; AUTHORIZING THE SALE OF SAID REVENUE BONDS; AND ESTABLISHING VARIOUS FUNDS AND PLEDGING REVENUES OF THE SYSTEM TOWARD THE COST OF SERVICING DEBT INCURRED IN CONNECTION WITH SAID IMPROVEMENTS. WHEREAS, on February 19, 1991, the City adopted Resolution 9-91, and desires to amend and restate said Resolution as set forth herein through the adoption of this resolution; and WHEREAS, one of the purposes of Chapter 9-40 of the South Dakota Codified Laws (the "Act") as found and determined by the Legislature is to provide for the financing of the acquisition, establishment, equipping, extending or improving any system or part of system for the collection, treatment, and disposal of sewer and other domestic, commercial and industrial wastes or any system for the control of floods and drainage; or any combination of such sewerage or flood and drainage control systems, together with extensions, additions, and necessary appurtenances; and WHEREAS, pursuant to the Act, such system shall supply the municipality or any specified portion of the municipality or adjacent territory within ten (10) miles of its corporate limits and the inhabitants thereof with sewerage and flood and drainage control service; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Brookings, South Dakota (the "City") as follows: (1) The City desires to construct modifications and improvements (the "Project") to the City's existing wastewater collection system (the "System") including construction of approximately 6, 150 feet of 24 inch sewer interceptor line and 1, 600 feet of 8 inch sewer line to serve Hillside Estates Mobile Home Court, Western Estates Mobile Home Court (adjacent to the City of Brookings) , the Brookings Softball complex and future development in the southeastern and eastern portions of the City of Brookings. The estimated total cost of the Project is approximately $310,760. The City proposes to finance � approximately $188, 065 of the cost of the Project through the issuance of utility revenue bonds (the "Revenue Bonds") and the remaining costs are to be paid out of available moneys in the City's wastewater fund. (2) The primary objective of the Project is to extend an interceptor sewer line to a point whereby two (2) mobile home developments, Hillside Estates Mobile Home Court and Western Estates Mobile Home Court, could collect their sanitary wastes and deposit the same into the City collection and treatment system in order to eliminate the discharge of effluent water from the two mobile home developments directly on the ground surface and to prevent other releases of sewage onto the ground which are caused by the failure of the current system. Because the two mobile home developments are on or very near the Big Sioux Aquifer, without making the improvements, there is a potential that the sewage could contaminate a portion of the Big Sioux Aquifer. The City therefore finds and determines that, without making the improvements included in the Project, the System would pose a health hazard to the residents of the City of Brookings, and the lands adjacent thereto. Because of the functional interdependence of the various components of the Project, the City hereby expressly finds and determines that all of the improvements included in the Project are being directly or indirectly financed with the Revenue Bonds and that the Project shall substantially benefit the entire waste water system and all of its users. Accordingly, the facilities financed with the Revenue Bonds shall consist of all of the improvements included in the Project. (3) The Revenue Obligation Loan Agreement between the South Dakota Conservancy District (the "SDCD") and the City (the "Loan Agreement") , the form of which is attached hereto as Exhibit A, and the pledging of the loan payments thereunder for the security of the Water Pollution Control State Revolving Fund Revenue Bonds of the SDCD (the "SRF Bonds") and the interest thereon shall be, and they are, in all respects, hereby authorized, approved and confirmed, and the Mayor and City Finance Officer shall be and they are hereby authorized and directed to execute and deliver said Agreement in the form and content attached hereto as Exhibit A, with such changes as the Attorney for the City deems appropriate and approves, for and on behalf of the City. The Mayor and City Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the City as set forth in or required by the Loan Agreement. (4) The issuance of not more than $188, 065 (as defined in the Loan Agreement, the "Committed Amount") principal amount of the Revenue Bonds of the City in the form and content set forth in Appendix B to the Loan Agreement attached hereto shall be and the same is, in all respects hereby authorized, approved and confirmed, and the Mayor, City Finance Officer and other appropriate officials shall be and they are hereby authorized and directed to execute and seal the Revenue Bonds and to deliver the Revenue Bonds to the SDCD, for and on behalf of the City, upon receipt of the purchase price and to deposit the proceeds thereof in the manner provided for in the Loan Agreement. The Revenue Bonds shall be issued under the authority of Chapters 9-40 and 6-8B of the South Dakota Codified Laws, as amended. (5) For the purpose of application and proper allocation of the income of the System and to secure the payment of principal of and interest on the Revenue Bonds, the following funds shall be used solely for the following respective purposes until payment in full of the principal of and interest on the Revenue Bonds: (a) Svstem Revenue Account. There shall be deposited in the System Revenue Account as received the entire gross revenues derived from the operation of the System collected pursuant to Section 35-33 of Chapter 35 of the Revised Ordinances of the City of Brookings, South Dakota (the "Rate Ordinance") including future improvements, enlargements, extensions and repairs thereto (the "Gross Revenues") . Moneys from the System Revenue Account shall be transferred periodically into separate funds and accounts as provided below. (b) Debt Service Fund. Out of the revenues in the System Revenue Account, there shall be set aside no later than the 25th day of each month into the fund designated 1991 Wastewater Facilities Debt Service Fund, a sum sufficient to provide for the payment as the same become due of the next maturing principal and interest on, and any administrative charge of the SDCD with respect to, the Revenue Bonds and any reserve determined by the City Commission to be necessary. The amount set aside monthly shall be not less than the total principal, interest, administration surcharges and other amounts payable on the first day of the following month and if there shall be any deficiency in the amount previously set aside, then the amount of such deficiency shall be added to the current requirement. (c) Depreciation Fund. There shall be established a General Depreciation Account. Out of the revenues of the System Revenue Account there shall be set aside each month into the General Depreciation Account an amount determined by the City Commission to be a proper and adequate amount for repair and depreciation of the System. (d) Operation and Maintenance Fund. There shall be the General Operation and Maintenance Account. Out of the remaining revenues of the System Revenue Account after application described in (b) and (c) above, there shall be set aside each month into the General Operation and Maintenance Account, a sum sufficient to provide for the payment of the next month's current expenses of administration and operation of the remainder of the System and such current expenses for the maintenance thereof as may be necessary to preserve the remainder of the System in good repair and working order. The term current expenses shall be construed to include all reasonable and necessary costs of operating, repairing, maintaining and insuring the System, including without limitation salaries, supplies and rent, but shall exclude General Depreciation Account and 1991 Wastewater Facilities Debt Service Fund. (e) Surplus Fund. There shall be established the General Surplus Account. Revenues remaining in the System Revenue Account at the end of any fiscal year after all periodic transfers have been made therefrom as above required, shall be deemed to be surplus and shall be transferred to the general fund of the City. If at any time there shall exist any default in making any periodic transfer to the 1991 Wastewater Facilities Debt Service Fund, the City Commission may, but shall not be required to, authorize the City Finance Officer to rectify such default so far as possible by the transfer of money from the General Surplus Account. If any such default shall exist as to more than one account or fund at any time, then such transfer shall be made in the order such funds and accounts are listed above. Moneys in the General Surplus Account from time to time may be transferred one or more of the foregoing funds. No disbursements shall be made from the System Revenue Account except to the special funds and accounts as above provided. (6) All moneys in the several funds and accounts provided for above (except those in the 1991 Wastewater Facilities Debt Service Fund) shall be deposited with First National Bank, Brookings, South Dakota or such other financial institution as shall be designated from time to time by the City. All moneys from time to time in the 1991 Wastewater Facilities Debt Service Fund shall be kept on hand with First National Bank, Brookings, South Dakota or such other financial institution as shall be designated from time to time by the City. - • . �,�. (7) The City hereby covenants and agrees with the holder or holders, from time to time of the Revenue Bonds, that it will punctually perform all duties with reference to the Project and the Revenue Bonds required by the constitution and laws of the State of South Dakota and by this Resolution. The City agrees and covenants that it will purchase the improvements included in the Project. The City will not sell, lease, mortgage or in any other manner dispose of the System, the Project, or any substantial part hereof, until all Revenue Bonds payable from the revenues thereof shall be paid in full; and that it will not permit any person, firm or corporation to compete with it in the treatment, collection and disposal of wastewater within the City. The City covenants and agrees with the owners of the Revenue Bonds that it will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any of the Revenue Bonds are outstanding; that it will maintain insurance on the System for the benefit of the holders of the Revenue Bonds an amount which usually would be carried by private companies in a similar type of business; that it will prepare, keep and file records, statements and accounts as provided for in this Resolution, the Rate Ordinance and the Loan Agreement. (8) Additional bonds payable from the System Revenue Account may be issued, as permitted in the Loan Agreement and no provision of this Resolution shall have the effect of restricting the issuance of, or impairing the first lien of, such additional first lien or parity bonds. The City shall have the right to issue additional bonds secured by a lien subordinate to the lien for the Revenue Bonds pursuant to the Loan Agreement. (9) The Revenue Bonds, together with the interest thereon, shall not constitute a charge against the City's general credit or taxing power, but shall be a limited obligation of the City payable solely out of the 1991 Wastewater Facilities Debt Service Fund, which payments, revenues and receipts are hereby and in the Loan Agreement pledged and assigned for the equal and ratable payments of the Revenue Bonds and shall be used for no other purpose than to pay the principal of and interest on the Revenue Bonds, except as may be otherwise expressly authorized in the Loan Agreement. The City has determined that Revenue Bonds constitute debt, and that when combined with other debt of the City, will not be in excess of five percent of the assessed valuation of the taxable property of the City for the year preceding that in which such indebtedness will be incurred. Accordingly, the City has determined that Article XIII, Section 4 of the Constitution of South Dakota does not require that an election be held to issue the Bonds. (10) Pursuant to SDCL 9-40-28, the City hereby covenants to amend the Rate Ordinance as may be necessary to provide for the operation and maintenance, repairs, depreciation and reserves of the facilities financed with the Revenue Bonds and other facilities of the System and to pay 110� of principal and interest on the Revenue Bonds as and when due out of the 1991 Wastewater Facilities Debt Service Fund. (il) The City hereby reserves the right to determine on a periodic basis the appropriate allocation of operation and maintenance expenses, depreciation, repair and reserves associated with the facilities financed with the Revenue Bonds, provided that such determination of allocable operation and maintenance expenses shall in no event abrogate, abridge or otherwise contravene the covenant of the , , r� ' . , � City set forth in paragraph (10) hereof or any other covenant or agreement in the Loan Agreement. (12) If any section, paragraph, clause or provision of this Resolution (including the Exhibit A hereto attached which is made part hereof and incorporated herein by reference) shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Resolution or said Exhibit A. Exhibit A herein referred to and made part of this Resolution is on file in the office of the City Finance Officer and is available for inspection by any interested party. The Mayor, City Finance Officer, Attorney for the City and City Officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City the Revenue Bonds any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out herein authorized. (13) This Resolution shall take effect on the 20th day following its publication, unless suspended by referendum. FB ed and approved this 26th day of March, 1991. �O•••P�•• k'� . .�s��o �'�r .� : �AAR.9 ' C� �o� 1883 0 -- < < ' �o�.ti o� Ma�or i Finance Offic