Resolution No. 09-54 CITY CSF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 09- `j am/
A RESOLUTION AUTl3ORIZING A LOW-INTEREST LOAN FROM THE SAFE DRINKING
WATER REVOLVING LOAN FUND AND A "FORGIVABLE" LOAN BY ENTERING INTO A
LOAN CONTRACT VATH TEE OREGON BUSINESS DEVELOPMENT DEPARTNIENT
WHEREAS,the City Council (the "Governing Body") of the City of Tigard (the "Borrower") finds
A. The Borrower is a community or nonprofit non-community water system as defined in Oregon
Administrative Rule 123-049-0010.
B. The Safe Drinking Water Act Amendments of 1996,Pub.L. 104-182,as amended (the "Act"), authorize
any community or nonprofit non-community water system to file an application with the Oregon
Business Development Department (the Department") to obtain financial assistance from the Safe
Drinking Water Revolving;Loan Fund.
C. The Borrower has filed an application with the Department to obtain financial assistance for a "drinking
water project" within the meaning of the Act.
D. The Department has approved the Borrower's application for financial assistance from the Safe Drinking
Water Revolving Loan Fuad pursuant to the Act.
E. The Borrower is required, as a prerequisite to the receipt of financial assistance from the Department,to
enter into a Financial Assistance Award Contract and a Loan Agreement with the Department.
F. The project described in Exhibit"A" (the"Project") is a"safe drinking water project" within the meaning
of the Act which is needed by and is in the public interest of the Borrower.
G. Notice relating to the Borrower's consideration to authorize the City to enter into a contract with the
Department was published in full accordance with the City of Tigard's charter and laws for public
notification.
NOW,THEREFORE,BE IT RESOLVED by the Tigard CityC;ouncd that:
SECTION 1: Loan Authorized. The Governing Body authorizes the t ity ager to execute the Financial
Assistance Award Contract,Loan Agreement,the Promissory Note associated with the Loan
Agreement (the "Financing Documents") and such other documents as may be required to
obtain financial assistance including a loan from the Department on the conditions that:
• The principal amount of the low-interest loan from the Department to the Borrower
is not in excess of $2,398,000 and the interest rate on such loan is not in excess of
3.83 percent.
® 'Me forgivable loan from the Department to the Borrower is not in excess of
$Z398,000.(
• The proceeds of the low-interest loan and forgivable loan from the Department shall
be applied solely to the "Costs of the Project" as such teen is defined in the Loan
Agreement.
SECTION 2: Security Amounts payable by the Borrower shall be payable from the sources described in
the Loan Agreement which include:
a. Any sources of funds that are legally available to the Borrower,
RESOLUTION NO.09 - 4
Page 1
b. The revenues,if any,cif the Project,including special assessment revenues,if any,and
c. The Borrower's general fund including the general revenues of the Borrower or ether
funds which may be available. The obligation of the Borrower to make payments
pursuant to the Loan Agreement is a full faith and credit obligation of the Borrower
that is not subject to annual appropriation.
SECTION3: Additional Documents. The City Manager is hereby authorized to enter into any agreements
and to execute any documents or certificates which may be required to obtain financial
assistance from the Department for the Project pursuant to the Financial Assistance Award
Contract and the Loan Agreement.
SECTION4: Tax-Exempt Status. The Borrower covenants not to take any action or ornit to tales any
action if the taping or omission would cause interest paid by the Borrower pursuant to the
Loan Agreement not to qualify for the exclusion from gross income provided by Section
103(a) of the Internal Revenue Cede of 1986, as amended. The City Manager of the
Borrower may enter into covenants on behalf of the Burrower to protect the tax-exempt
status of the interest paid by the Borrower pursuant to the Loan Agreement and may execute
any Tax Certificate, Internal Revenue Service forms or other documents as shall be required
by the Department or their bond counsel to protect the tax-exempt status of such interest.
SEC'fION 5. This resolution is effective imrnediately upon passage.
PASSER: This day o L(r7u'4 2019.
F
Mayor- 6ty of Tigard
ASST.
O"act" tt
City Recorder- City of Tigard
RESOLLMON NO.09
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Loan Agreement Exhibit A
Page I of I
Pno.ir-,CT DESCRIPTION
Recipient will.with'the assistance of a licensed engineer,repair and retrofit the existing ten-million-gallein
terminal reservoir to meet current building code, including seismic standards, retrofit the reservoir
structurally for future solar generation, construct a new pump station that is more energy efficient, install
backup power generation at the site,and abandon the existing pump station.
Financial ServicdtWS015 Tigard Contract am