HomeMy WebLinkAboutORDINANCES-1996-003-O-960-
4/16/96
3-0-96
AN ORDINANCE
Authorizing the City to Borrow
Funds from the Water Pollution
Revolving Loan Fund
WHEREAS, the City of Evanston, Cook County, Illinois, ("CITY")
operates its sewerage collection system, including all property, real, personal or
otherwise owned or to be owned by the CITY or under the control of the CITY, and used for
sewerage collection purposes, and any and all further extensions, improvements, and additions
to the system, but, however, excluding expressly property which from time to time is deemed
by the CITY to be no longer useful or necessary to the continued effective and efficient operation
of the system or extensions, improvements or additions which are at the time of construction,
acquisition and installation expressly excluded from the definition of system hereunder by the
• CITY, hereinafter referred to as "SYSTEM", and in accordance with the provisions of Section
6(a) of Article VII of the 1970 Constitution of the State of Illinois and the Local Government Debt
Reform Act, Illinois Compiled Statutes 1993 30 ILCS 350/1 et sea, hereinafter collectively
referred to as the "ACT"; and
WHEREAS, The City Council has determined that it is advisable,
necessary and in the best interests of public health, safety and welfare to improve
the SYSTEM. Said improvements include the following:
Phase 5 (Contracts A, B & C)of the construction of relief sewers for the CITY's combined
sewer system and overland flow of run-off as outlined in the approved Facilities Plan for
Long Range Sewer Improvements dated October 23, 1990 and revised on January 14,
1994. The improvements include the installation of new relief sewers as well as the
rehabilitation of the existing and combined sewer. An estimated 32,200 linear feet of
relief sewers will be installed using the open cut construction, method with pipe sizes
ranging in size from 10" to 48" diameter. Approximately 3250 linear feet of relief sewers
will be installed by tunnel construction with a pipe diameter of 78" . Existing combined
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sewer rehabilitation will include 2200 linear feet of sewers ranging from 9" to 15" in
diameter. The expected useful life of said improvements are estimated at 100 years. All .
improvements are to be constructed in accordance with the plans and specifications
prepared by the CITY'S consulting engineers. All work herein described shall be referred
to as the "PROJECT"
WHEREAS, the estimated cost of constructing and installing the
PROJECT, including engineering, legal, financial, and other related expenses is
$15,958,100 and there are insufficient funds on hand and lawfully available to pay such costs; and
WHEREAS, such costs are expected to be paid for with a loan to the
CITY from the Illinois Environmental Protection Agency through the Water
Pollution Control Revolving Loan Fund, said loan to be repaid from revenues of the SYSTEM,
and such loan is authorized to be accepted at this time pursuant to the ACT; and
WHEREAS, pursuant to, and in accordance with, the provisions of the
ACT, the CITY is authorized to borrow funds from the Water Pollution Control
Revolving Loan Fund in the aggregate principal amount of $15,958,100 for the purpose of •
providing 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 EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: The City Council hereby finds that the recitals contained in
the preamble to this Ordinance are true and correct and hereby incorporates them into this
Ordinance.
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SECTION 2: It is necessary to public health, safety and welfare and in the best interests
• of the CITY to construct the PROJECT and that the SYSTEM continue to be operated in
accordance with the provisions of the ACT, and that for the purpose of constructing the
PROJECT, it is hereby authorized that funds be borrowed by the City of Evanston in an aggregate
principal amount not to exceed $15,958,100.
SECTION 3: Subject to the express provisions of this Ordinance, 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 Revolving Loan Fund without the written consent of
the Illinois Environmental Protection Agency.
SECTION 4: Repayment of the loan to the Illinois Environmental Protection Agency by
the CITY pursuant to this Ordinance is to be solely from the revenues derived from the
SYSTEM, as hereinafter provided; and the loan does not constitute an indebtedness of the CITY
within the meaning of any constitutional or statutory limitation. For the purposes hereof,
"revenues" (hereinafter "REVENUES") of the SYSTEM means all income from whatever source
derived from the SYSTEM, including investment income and the like, connection, permit and
inspection fees and the like, user charges of all kinds for, the use and service of the SYSTEM, and
including such transfers from the corporate funds or the water fund of the CITY as the City
Council shall from time to time determine through the budget and appropriation of such funds,
or other proper action; but shall not include non -recurring income from the sale of property of the
SYSTEM, governmental or other grants or loans, and as otherwise determined in accordance with
generally accepted accounting principles for municipal enterprise funds. The repayment of the
loan from the REVENUES shall in all events be made only after provision for the payment of
"OPERATION AND MAINTENANCE COSTS" of the SYSTEM, hereby defined to mean all
costs of operating, maintaining and routine repair of the SYSTEM, including such items as wages,
salaries, costs of materials and supplies, taxes, power, fuel, insurance, purchase of sewage
treatment or disposal capacity, including all payments for such services to be made pursuant to
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long-term contracts for the provision of such services, but shall not include debt service of any
kind, depreciation, any capital reserve requirements, and as otherwise determined in accordance is
with generally accepted accounting principles for municipal enterprise funds. The CITY hereby
pledges the REVENUES, after provision has been made for the payment of OPERATION AND
MAINTENANCE COSTS, to the repayment of the loan; and covenants and agrees to charge such
rates and impose such fees and charges for the use and service of the SYSTEM as shall be
sufficient to pay in a timely manner all repayments as required on the loan pursuant to the terms
of the Loan Agreement.
SECTION 5: The City Council hereby authorizes acceptance of the offer of a loan through
the Water Pollution Control Revolving Loan Fund. The loan funds awarded shall be used
solely for the purpose of the PROJECT as approved by the Illinois Environmental Protection
Agency in accordance with the terms and conditions of the LOAN AGREEMENT.
SECTION 6: The City Manager is hereby authorized and directed to execute the LOAN
AGREEMENT with the Illinois Environmental Protection Agency and to negotiate any .
additional terms or conditions deemed to be in the best interests of the City.
SECTION 7: The CITY hereby covenants and agrees that the REVENUES, after
provision has been made for the payment of OPERATION AND MAINTENANCE
COSTS, are a dedicated source of funds for the repayment of the loan as evidenced by the LOAN
AGREEMENT. The CITY reserves the right, without limitation of any kind, to issue obligations
("OBLIGATIONS") of any kind (including bonds, notes or other obligations by whatever name
and including all loans) payable from the REVENUES and prior in lien to, on a parity of lien
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with, or subordinate in lien to the lien on the REVENUES for the repayment of the loan as
provided in the LOAN AGREEMENT, as shall be determined by the City Council; provided,
however, that any covenants or agreements made by the CITY for the benefit of the holders of
such OBLIGATIONS shall, at the time of the incurring of such OBLIGATIONS, also be made
in a similar manner for the benefit of the obligation to repay the loan as represented by the LOAN
AGREEMENT.
The CITY intends that the obligation to repay the loan as represented by the loan as evidenced by
the LOAN AGREEMENT shall bear interest as provided therein on a basis which is not tax-
exempt under the provision of the Internal Revenue Code of 1986, and the officers of the CITY
charged with the execution of the LOAN AGREEMENT shall act in accordance with this stated
intent.
SECTION 8: If any section, paragraph, clause or provision of this Ordinance shall be held
invalid, the invalidity of such section, paragraph, clause or provision shall not affect any
0 1 of the other provisions of this Ordinance.
SECTION 9: All Ordinances or resolutions, or parts thereof, in conflict herewith, are
hereby repealed.
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SECTION 10: This Ordinance shall be published in pamphlet form by authority of the
City Council as the Corporate Authorities of the CITY; and this Ordinance shall become
effective immediately upon its passage, approval and publication as herein provided, all pursuant
of the ACT and including, expressly, the home rule powers of the CITY pursuant to Section 6(a)
of Article VII of the Illinois Constitution of 1970.
Introduced:
Adopted:
ATTEST:
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City Clerk
Approved as to form:
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Corporation Counsel
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