13-10678 Water Loan AgreementSummary published in The Salina Journal on Febmary 1 , 2013.
WHEREAS, to fund the state revolving fund program, the EPA will make annual capitalization grants to the
states, on the condition that each state provide a state match for such state's revolving fund; and
WHEREAS, by passage of the Kansas Public Water Supply Loan Act, K.S.A. 65-163d et seq., as amended
(the "Loan Act"), the State of Kansas (the "State") has established the Kansas Public Water Supply Loan
Fund (the "Revolving Fund") for purposes of the Federal Act; and
WHEREAS, under the Loan Act, the Secretary of the Kansas Department of Health and Environment
("KDHE") is given the responsibility for administration and management of the Revolving Fund; and
WHEREAS, the Kansas Development Finance Authority (the "Authority") and KDHE have entered into a
Pledge Agreement (the "Pledge Agreement") pursuant to which KDHE agrees to enter into Loan Agreements
with Municipalities for public water supply projects (the "Projects") and to pledge the Loan Repayments (as
defined in the Pledge Agreement) received pursuant to such Loan Agreements to the Authority; and
' WHEREAS, the Authority is authorized under K.S.A. 74-8905(a) and the Loan Act to issue revenue bonds
(the "Bonds") for the purpose of providing funds to implement the State's requirements under the Federal Act
and to loan the same, together with available funds from the EPA capitalization grants, to Municipalities
within the State for the payment of Project Costs (as said terms are defined in the Loan Act); and
WHEREAS, City of Salina, Kansas (the "Municipality") is a municipality as said term is defined in the Loan
Act which operates a water system (the "System"); and
WHEREAS, the System is a Public Water Supply System, as said term is defined in the Loan Act; and
WHEREAS, the Municipality has, pursuant to the Loan Act, submitted an Application to KDHE to obtain a
loan from the Revolving Fund to finance the costs of improvements to its System consisting of the following:
Construct four wells, reconfigure the raw water transmission mains from the
downtown well field, make improvements to the air stripper facility to increase
ground water treatment capacity, and replace aging waterlines.
(the "Project"); and
WHEREAS, the Municipality has taken all steps necessary and has complied with the provisions of
the Loan Act and the provisions of K.A.R. 28-15-50 through 28-15-65 (the "Regulations") applicable thereto
necessary to qualify for the loan; and
' WHEREAS, KDHE has informed the Municipality that it has been approved for a loan in amount of
not to exceed $9,330,000 (the "Loan") in order to finance the Project; and
WHEREAS, the governing body of the Municipality hereby finds and determines that it is necessary
and desirable to accept the Loan and to enter into a loan agreement and certain other documents relating
thereto, and to take certain actions required in order to implement the Loan Agreement. SO NOW,
THEREFORE,
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF, KANSAS:
Section 1. Authorization of Loan Agreement. The Municipality is hereby authorized to accept the Loan
and to enter into a certain Loan Agreement, with an effective date of January 11, 2013 , with the State of
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ORDINANCE NUMBER 13-10678
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT BETWEEN
CITY OF SALINA, KANSAS AND THE STATE OF KANSAS, ACTING BY AND THROUGH THE
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT FOR THE PURPOSE OF
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OBTAINING A LOAN FROM THE KANSAS PUBLIC WATER SUPPLY LOAN FUND FOR THE
a
"
PURPOSE OF FINANCING PUBLIC WATER SUPPLY PROJECTS; ESTABLISHING A
N
DEDICATED SOURCE OF REVENUE FOR REPAYMENT OF SUCH LOAN; AUTHORIZING
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AND APPROVING CERTAIN DOCUMENTS IN CONNECTION THEREWITH; AND
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AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE LOAN
'
AGREEMENT.
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WHEREAS, the Safe Drinking Water Act Amendments of 1996 [PL 104-182] to the Safe Drinking Water
Act (the "Federal Act") established the Drinking Water Loan Fund to assist public water supply systems in
financing the costs of infrastructure needed to achieve or maintain compliance with the Federal Act and to
protect the public health and authorized the Environmental Protection Agency (the "EPA") to administer a
revolving loan program operated by the individual states; and
WHEREAS, to fund the state revolving fund program, the EPA will make annual capitalization grants to the
states, on the condition that each state provide a state match for such state's revolving fund; and
WHEREAS, by passage of the Kansas Public Water Supply Loan Act, K.S.A. 65-163d et seq., as amended
(the "Loan Act"), the State of Kansas (the "State") has established the Kansas Public Water Supply Loan
Fund (the "Revolving Fund") for purposes of the Federal Act; and
WHEREAS, under the Loan Act, the Secretary of the Kansas Department of Health and Environment
("KDHE") is given the responsibility for administration and management of the Revolving Fund; and
WHEREAS, the Kansas Development Finance Authority (the "Authority") and KDHE have entered into a
Pledge Agreement (the "Pledge Agreement") pursuant to which KDHE agrees to enter into Loan Agreements
with Municipalities for public water supply projects (the "Projects") and to pledge the Loan Repayments (as
defined in the Pledge Agreement) received pursuant to such Loan Agreements to the Authority; and
' WHEREAS, the Authority is authorized under K.S.A. 74-8905(a) and the Loan Act to issue revenue bonds
(the "Bonds") for the purpose of providing funds to implement the State's requirements under the Federal Act
and to loan the same, together with available funds from the EPA capitalization grants, to Municipalities
within the State for the payment of Project Costs (as said terms are defined in the Loan Act); and
WHEREAS, City of Salina, Kansas (the "Municipality") is a municipality as said term is defined in the Loan
Act which operates a water system (the "System"); and
WHEREAS, the System is a Public Water Supply System, as said term is defined in the Loan Act; and
WHEREAS, the Municipality has, pursuant to the Loan Act, submitted an Application to KDHE to obtain a
loan from the Revolving Fund to finance the costs of improvements to its System consisting of the following:
Construct four wells, reconfigure the raw water transmission mains from the
downtown well field, make improvements to the air stripper facility to increase
ground water treatment capacity, and replace aging waterlines.
(the "Project"); and
WHEREAS, the Municipality has taken all steps necessary and has complied with the provisions of
the Loan Act and the provisions of K.A.R. 28-15-50 through 28-15-65 (the "Regulations") applicable thereto
necessary to qualify for the loan; and
' WHEREAS, KDHE has informed the Municipality that it has been approved for a loan in amount of
not to exceed $9,330,000 (the "Loan") in order to finance the Project; and
WHEREAS, the governing body of the Municipality hereby finds and determines that it is necessary
and desirable to accept the Loan and to enter into a loan agreement and certain other documents relating
thereto, and to take certain actions required in order to implement the Loan Agreement. SO NOW,
THEREFORE,
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF, KANSAS:
Section 1. Authorization of Loan Agreement. The Municipality is hereby authorized to accept the Loan
and to enter into a certain Loan Agreement, with an effective date of January 11, 2013 , with the State of
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Section 3. Further Authority. The Mayor, Clerk and other City officials and legal counsel are hereby
further authorized and directed to execute any and all documents and take such actions as they may deem
necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make
alterations, changes or additions in the foregoing agreements, statements, instruments and other documents
herein approved, authorized and confirmed which they may approve, and the execution or taking of such
action shall be conclusive evidence of such necessity or advisability.
' Section 4. Governing Law. The Ordinance and the Loan Agreement shall be governed exclusively by and
construed in accordance with the applicable laws of the State of Kansas.
Section 5. Summary of ordinance for publication. That this ordinance shall be in full force and effect
from and after its adoption and publication once in the official city newspaper.
Ordinance No. 13-10678 Summary
On February 25, 2013, the City of Salina, Kansas, passed Ordinance No. 13-10678. The
ordinance authorizes an agreement between the City of Salina and the Kansas Department of
Health and Environment for the purpose of obtaining a Kansas Public Water Supply Loan for
the purpose of financing public water supply projects. A complete copy of the ordinance is
available at www.salina-ks.aov or in the office of the city clerk, 300 W. Ash Street, free of
charge. This summary is certified by the city attorney.
[SEAL]
T EST:
:' Lieu Ann Elsey, CMC, City lerk
Introduced: February 11, 2013
PassFebruary 25, 2013
Oe�yanmrl ennings, Mayor
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Kansas acting by and through the Kansas Department of Health and Environment (the "Loan Agreement") to
finance the Project Costs (as defined in the Loan Agreement). The Mayor and Clerk are hereby authorized to
execute the Loan Agreement in substantially the form presented to the governing body this date, with such
changes or modifications thereto as may be approved by the Mayor and the Municipality's legal counsel, the
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Mayor's execution of the Loan Agreement being conclusive evidence of such approval.
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qSection
2. Establishment of Dedicated Source of Revenue for Repayment of Loan. Pursuant to the Loan
Act, the Municipality hereby establishes a dedicated source of revenue for repayment of the Loan. In
accordance therewith, the Municipality shall impose and collect such rates, fees and charges for the use and
a
services furnished by or through the System, including all improvements and additions thereto hereafter
constructed or acquired by the Municipality as will provide System Revenues (as defined in the Loan
Agreement) sufficient to (a) pay the cost of the operation and maintenance of the System, (b) pay the
principal of and interest on the Loan as and when the same become due, (c) pay all other amounts due at any
time under the Loan Agreement, and (d) pay the principal of and interest on Additional Revenue Obligations
(as defined in the Loan Agreement) as and when the same become due; provided, however, the pledge of the
System Revenues contained herein and in the Loan Agreement (i) shall be subject to reasonable expenses of
operation and maintenance of the System, and (ii) shall be junior and subordinate in all respects to the
pledge of System Revenues to any Additional Revenue Obligations. In the event that the System Revenues
are insufficient to meet the obligations under the Loan and the Loan Agreement, the Municipality shall levy
ad valorem taxes without limitation as to rate or amount upon all the taxable tangible property, real or
personal, within the territorial limits of the Municipality to produce the amounts necessary for the prompt
payment of the obligations under the Loan and Loan Agreement. In accordance with the Loan Act, the
obligations under the Loan and the Loan Agreement shall not be included within any limitation on the
bonded indebtedness of the Municipality.
Section 3. Further Authority. The Mayor, Clerk and other City officials and legal counsel are hereby
further authorized and directed to execute any and all documents and take such actions as they may deem
necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make
alterations, changes or additions in the foregoing agreements, statements, instruments and other documents
herein approved, authorized and confirmed which they may approve, and the execution or taking of such
action shall be conclusive evidence of such necessity or advisability.
' Section 4. Governing Law. The Ordinance and the Loan Agreement shall be governed exclusively by and
construed in accordance with the applicable laws of the State of Kansas.
Section 5. Summary of ordinance for publication. That this ordinance shall be in full force and effect
from and after its adoption and publication once in the official city newspaper.
Ordinance No. 13-10678 Summary
On February 25, 2013, the City of Salina, Kansas, passed Ordinance No. 13-10678. The
ordinance authorizes an agreement between the City of Salina and the Kansas Department of
Health and Environment for the purpose of obtaining a Kansas Public Water Supply Loan for
the purpose of financing public water supply projects. A complete copy of the ordinance is
available at www.salina-ks.aov or in the office of the city clerk, 300 W. Ash Street, free of
charge. This summary is certified by the city attorney.
[SEAL]
T EST:
:' Lieu Ann Elsey, CMC, City lerk
Introduced: February 11, 2013
PassFebruary 25, 2013
Oe�yanmrl ennings, Mayor
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