07/10/2018 Resolutions 2018-198RESOLUTION 2018-198
WHEREAS, the City of Grand Island, Nebraska recognizes that a properly sized and
functioning sewer system is necessary to the health and welfare of the citizens of the City of Grand
Island; and
WHEREAS, the Mayor and City Council have determined that portions of the Grand
Island sewer system are in need of significant repair and improvement, and that sewer service is
needed in areas in and around Grand Island; and
WHEREAS, funding for the cost of the repair and improvement of portions of the
Grand Island sewer system may be obtained by loans from Clean Water State Revolving Funds
("CWSRF") from the Nebraska Department of Environmental Quality ("NDEQ"), subject to certain
requirements and obligations;
WHEREAS, City Council approved Resolution No. 2014-162 on June 10, 2014,
which authorized a maximum principal amount of debt expected to be issued for Sanitary Sewer
Collection System and Wastewater Treatment Plant Improvements at $74,275,000, with debt
expected to include up to $40,000,000 in principal amount of loan funds from the Clean Water State
Revolving Loan Fund program; and
WHEREAS, City Council approved Ordinance No. 9493 on July 29, 2014 (the
"Ordinance") giving formal approval to the NDEQ borrowing in a principal of not to exceed
$40,000,000, which Ordinance requires that each NDEQ Note and NDEQ Contract (as such terms
are defined in the Ordinance) entered into with respect to such amount be approved by resolution of
the City Council prior to execution and delivery thereof;
WHEREAS, the execution of the contracts for loans, in the total amount of
$7,000,000.00, between the NDEQ and the City designated as Project No. C317867 (the "Non-Green
Contract"), in the amount of $6,000,000 and Project No. C317981 (the "Green Contract"; and
together with the Non-Green Contract, the "NDEQ Contracts"), in the amount of $1,000,000 were
approved by Resolution 2014-273 adopted by the City Council on September 9, 2014, and the
Contracts were executed and delivered to NDEQ on September 12, 2014;
WHEREAS, on March 10, 2015 City Council approved Resolution No. 2018-68
authorizing Amendment No. 1 to increase the maximum borrowing amount from $1,000,000 to
$29,000,000, thereby bringing the total amount of the loans under the contract to a drawable amount
of $35,000,000; and
WHEREAS, NDEQ has proposed to revise the administrative fee for the CWSRF
loan agreement used to finance the Phase II North Interceptor from 1.0% to 0.749%, with such
change retroactive to the signing date of Loan Agreement C317981 and the administration fee
waived for the first year of the loan agreement as stated in the initial language; and
Approved as to Form A
July 9, 201 S II A ney
WHEREAS, the overall dollar amount of administration fee reduction is $657,989.00,
with the administration fees that have already been paid in excess of the revised fee percent credited
on the next two (2) billing cycles December 15, 2018 and June 15, 2019, which totals $110,943.06;
and
WHEREAS, in order to receive the administration fee reduction, the City of Grand
Island must amend Loan Agreement C317981 a second time.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the form of Amendment No. 2 between the
City and NDEQ is hereby approved; and
BE IT FURTHER RESOLVED, the Mayor, City Clerk, and City Treasurer are hereby
directed to execute and deliver Amendment No. 2 and all other documents, certificates and
instruments necessary to facilitate the loans evidenced by the Contracts and Amendment No. 2
between NDEQ and the City for the purpose of repairing and improving the City of Grand Island
sewer system; and
BE IT FURTHER RESOLVED THAT the Mayor, City Clerk, and City Treasurer, be
authorized and directed to sign all necessary documents, to furnish such assurances to the State of
Nebraska as may be required by law or regulations, and to receive payment on behalf of the
applicant.
Adopted by the City Council of the City of Grand Island, Nebraska, July 10, 2018.
Attest:
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RaNae Edwards, City Clerk
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Jer .Je sen, ayor
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