Subject: 9577/Loan Agmt/State of TN/Wastewater Facilities Date: Wed, 26 Jun 1991 10:17:00 -0500 ORDINANCE NO. 9577 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE FINANCING OF THE CONSTRUCTION OF A WASTEWATER FACILITIES PROJECT, INCLUDING AUTHORIZING THE EXECUTION OF APPLICATIONS, CONTRACTUAL AGREEMENTS, AND OTHER NECESSARY DOCUMENTS, AND MAKING CERTAIN REPRESENTATIONS, CERTIFICATIONS, AND PLEDGES OF CERTAIN REVENUE IN CONNECTION WITH SUCH FINANCING. WHEREAS, The City of Chattanooga is a public and governmental body in Chattanooga, Tennessee (the "Local Government"); and WHEREAS, the Local Government has determined that it is necessary and desirable to undertake certain activities or tasks in connection with a wastewater facilities project, Department of Conservation Number SRF 90-014 (the "Project"), in and for the Local Government; and WHEREAS, Tennessee Code Annotated, Sections 68-13-1001, et seq., provide for the lending of moneys in the wastewater facilities Revolving Loan Fund to Local Governments for the purpose of providing funds for Project Loans; and WHEREAS, the Local Government has determined that it is necessary and advisable to borrow funds for the Project pursuant to these sections. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE, That: SECTION 1. Local Government hereby approves the creation of indebtedness on behalf of the Local Government in the principal amount of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00) by the obtaining of a Project Loan. SECTION 2. The execution and delivery of the Application for a Project Loan in the principal amount of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00) for the purpose of funding all or a portion of the total estimated cost of the Project, Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00), by Gene Roberts, the Mayor of the Local Government, is hereby ratified and approved in all respects. SECTION 3. The form, terms, and provisions of the agreement for the Project Loan among the Local Government, the Tennessee Department of Conservation and the Tennessee Local Development Authority (the "Loan Agreement"), as presented at this meeting, are hereby approved. SECTION 4. The Local Government hereby agrees to honor and accept the method of financing as may be determined by the Authority pursuant to the Loan Agreement. SECTION 5. The Local Government hereby agrees to make the monthly payments on the Project Loan in accordance with the Payment Schedule to be attached to the Loan Agreement. SECTION 6. The Local Government hereby agrees to levy fees, rates or charges for services provided by the Project and/or to levy ad valorem taxes sufficient to pay the interest on and principal of the Project Loan in accordance with the Loan Agreement. The Local Government also agrees to levy fees, rates, or charges and/or ad valorem taxes sufficient to pay the cost of operation and maintenance of the wastewater system of which the Project is a part, which cost shall include depreciation and all other debt service expense of the system. SECTION 7. The Local Government assigns and pledges its State-Shared Taxes to the State and consents to the withholding and application of State-Shared Taxes in the event of failure by the Local Government to remit monthly payments in accordance with the terms of the Loan Agreement, as the Loan Agreement may be supplemented or amended from time to time. SECTION 8. The Local Government hereby agrees to obtain alternative methods of financing for all costs necessary for the completion of the Project which are in excess of the combined financing provided by any agency of the United States Government and by the Tennessee Local Development Authority. SECTION 9. The Mayor of the Local Government is authorized and directed to execute the Loan Agreement, and any amendments or supplements to the Loan Agreement, in the name and behalf of the Local 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 Local Government of such documents; and to take such further action and to execute and deliver such further instruments or documents as such officer may consider necessary or advisable in connection with the Loan Agreement. Provided, however, this ordinance shall not be deemed to grant authority to the named officer to approve any increase in the amount of the Project Loan. SECTION 10. All orders, resolutions, or ordinances in conflict with this ordinance be and the same are repealed insofar as such conflict exists. SECTION 11. This ordinance shall take effect two (2) weeks from and after its passage as required by law. PASSED on Third and Final Reading July 9, 1991. _/s/________________________________ CHAIRPERSON APPROVED:_______ DISAPPROVED:_______ DATE:_________________ ______, 1991. _/s/________________________________ MAYOR MAM:cjc