RESOLUTION NO. RS2009-977

A resolution 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 in order to obtain a loan from the State of Tennessee for this purpose, and making certain representations regarding financing for loan repayment.

WHEREAS, the Metropolitan Government of Nashville and Davidson County (the Metropolitan Government) has determined that it is necessary and desirable to undertake certain activities or tasks in connection with a wastewater facilities project, State of Tennessee, Department of Environment and Conservation, Number CWA #2009-249 (the “Project”); and,

WHEREAS, the Project is identified by the Metropolitan Department of Water and Sewerage Services as: Holt Road Sewer Project, CIB 09WS0019, Department of Water and Sewerage Services Project Number 09-SG-008, and Historic Town of Nolensville Sewer, CIB 09WS0019, Department of Water and Sewerage Services Project Number 09-SL-0009; and,

WHEREAS, Tennessee Code Annotated, Section 68-221-1001 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 local government wastewater facilities projects like the Project, and the Metropolitan Department of Water and Sewerage Services desires to apply for and enter into an Agreement (the Loan Agreement) with the State of Tennessee, Department of Environment and Conservation, to obtain such a loan for the construction of the Project (the Project Loan); and,

WHEREAS, if the Project Loan is approved by the State of Tennessee, and subject to the contingencies provided for in the Loan Agreement, a portion of the ARRA funding for the Project Loan shall be forgiven by the State. The principal forgiven shall be $432,000.00; and,

WHEREAS, the Project involves the construction of an expanded collection system that would connect the Holt Road and Nolensville Historic District areas, within the corporate limit of the Town of Nolensville, to the existing sewage transportation and treatment system of the Metropolitan Department of Water and Sewerage Services, and when its construction is completed the property owners to whom the expanded sewer collection system is made available as a result of the expansion will become customers of the Metropolitan Department of Water and Sewerage Services; and,

WHEREAS, Tennessee Code Annotated, Section 12-9-104(a) (2) (b) authorizes the Governing Bodies of Public Agencies, such as metropolitan governments, to approve agreements between that Public Agency and another Public Agency, such as the State of Tennessee, by resolution; and,

WHEREAS, BL 2002-1136 allows applications for repayable state funding under Tennessee Code Annotated Section 68-221-801 et seq. which governs state funding for construction of wastewater treatment works by local governments to be authorized by resolution, adopted by the Council with 21 affirmative votes on an annual basis, and the definition of wastewater treatment works applicable to that part includes collection systems to be built or extended for the purposes of ameliorating or correcting a pollution problem and the expansion of public sewer collection systems and resulting decrease in use of private septic systems ameliorates pollution; and,

WHEREAS, the Metropolitan Government is separately and contemporaneously entering into an Agreement with the Town of Nolensville which provides that funds for repayment of the Project Loan and any Project construction costs exceeding the Project Loan amount will be obtained through special assessments to Nolensville residents to whom the expanded collection system will be made available as a result of the Project and who will become customers of the Department of Water and Sewerage Services; and,

WHEREAS, the Metropolitan Government has determined that it is necessary and advisable to borrow funds from the State of Tennessee for the Project pursuant to these sections, and that it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that the attached application and agreement for the Project Loan be approved and that the Project Loan funds be obtained.

NOW THEREFORE, BE IT RESOLVED BY THE METROPOLITAN COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan Government of Nashville and Davidson County (the Metropolitan Government) hereby approves the creation of indebtedness on behalf of the Metropolitan Government, the principal amount of which shall not exceed ONE MILLION EIGHTY THOUSAND DOLLARS ($1,080,000.00) by the obtaining of a loan for a project identified by the State of Tennessee Department of Environment and Conservation as Project Number CWA #2009-249 (Metropolitan Department of Water and Sewerage Services Projects Numbers 09-SG-008 and 09-SL-0009).

Section 2. That Karl Dean, the Mayor of the Metropolitan Government be authorized to execute and deliver the Application for a project Loan, a copy of which is attached hereto, the principal amount of which shall not exceed ONE MILLION EIGHTY THOUSAND DOLLARS ($1,080,000.00) for the purpose of funding all or a portion of the total estimated cost of the Project, ONE MILLION EIGHTY THOUSAND DOLLARS ($1,080,000.00), is hereby ratified and approved in all aspects.

Section 3. That the form, terms, and provisions of the agreement for the Project Loan among the Metropolitan Government of Nashville and Davidson County, the State of Tennessee, Department of Environment and Conservation, and the Tennessee Local Development Authority (the “Loan Agreement”), as attached hereto and incorporated herein, are hereby approved. It is acknowledged that the Project Loan includes funding from the American Recovery and Reinvestment Act (ARRA) and is subject to applicable requirements for such as provided in the Loan Agreement, including the requirement that, construction must have begun or all project contracts must be signed by February 17, 2010. Failure to comply with this requirement shall result in the immediate termination of the loan agreement. All funds, which have been disbursed under this loan agreement, shall be repaid within ninety (90) days of receipt of the Notice of Termination of the loan from the Tennessee Local Development Authority and Tennessee Department of Environment and Conservation. Determination by the Authority and the Department of such failure shall be conclusive.

Section 4. That the Metropolitan Government hereby agrees to honor and accept the method of financing as may be determined by the Tennessee Local Development Authority pursuant to the Loan Agreement.

Section 5. That the Metropolitan 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. That the Metropolitan Government hereby agrees that the Metropolitan Department of Water and Sewerage Services will charge special assessments to those customers to whom the expanded sewer collection system will become available sufficient to pay the interest on and principal of the Project Loan in accordance with the Loan Agreement, as is provided in the Metropolitan Government’s Agreement with the Town of Nolensville, and further agrees to charge rates to those customers 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 Metropolitan Government shall obtain 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 through the special assessment it shall charge to the customers to whom the expanded collection system becomes available as a result of the Project.

Section 8. That the Mayor of the Metropolitan Government is authorized and directed to execute the Loan Agreement attached hereto, and any amendments of or supplements to the Loan Agreement, in the name and behalf of the Metropolitan 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 Metropolitan Government of such documents; and to take such further action and to execute and deliver such further instruments or documents as the Mayor may consider necessary or advisable in connection with the Loan Agreement. Provided, however, this resolution shall not be deemed to grant authority to the Mayor to approve any increase in the amount of the Project Loan.

Section 9. That to the extent any portion of this Resolution is held to be invalid or unenforceable by a final judgment of a court of competent jurisdiction, the invalidity thereof shall in no way affect any of the other sections of this Resolution.

Section 10. That this resolution shall become effective from and after its final passage, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Walter Hunt, Ronnie Steine

Attachment(s) on file in the Metropolitan Clerk's Office

LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee Public Works Committee
Introduced:	October 6, 2009
Adopted:	October 6, 2009
Approved:	October 8, 2009
By: