97-9839 Agr Pub Water Supply(Published in The Salina Journal on Decembers, 1997)
ORDINANCE NO.97-9839
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN
AGREEMENT BETWEEN SALINA, KANSAS AND THE STATE OF KANSAS,
ACTING BY AND THROUGH THE KANSAS DEPARTMENT OF HEALTH AND
ENVIRONMENT FOR THE PURPOSE OF OBTAINING A LOAN FROM THE
KANSAS PUBLIC WATER SUPPLY LOAN FUND FOR THE PURPOSE OF
FINANCING A PUBLIC WATER SUPPLY PROJECT; ESTABLISHING A
DEDICATED SOURCE OF REVENUE FOR REPAYMENT OF SUCH LOAN;
AUTHORIZING AND APPROVING CERTAIN DOCUMENTS IN CONNECTION
THEREWITH; AND AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION WITH THE LOAN AGREEMENT.
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
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WHEREAS, Salina, Kansas (the "Municipality") is a municipality as said term is defined in the
Loan Act which operates a Combined Water and Sewage 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:
(a) an air stripper facility rated at 5 MGD consisting of packed tower aerators, new
softening basin and rehabilitation of the existing basin; (b) replacing three existing
upflow type softening mechanisms with solid contact mechanisms (3.5 MGD each for a
total of 10.5 MGD); (c) installation of a new 90' diameter solids contact unit rated at 9.5
MGD; (d) new sludge pumping facilities (rated at 2000 GPM); (e) chemical feed system
improvements; (f) required piping, and (g) miscellaneous improvements, consisting of
new sodium hexametaphosphate, new 4 -way splitter box and new pump/piping to feed air
stripped groundwater to the desilting basin;
(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 $3,600,000 (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.
T'D3âś“REFORE9 BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SAUNA, KANSAS:
Section 1. Authorization of Loan Agreement. It is hereby authorized, ordered and directed that
Salina, Kansas is hereby authorized to accept the Loan and to enter into a certain Loan Agreement, with an
effective date of [Effective Date], with the State of Kansas acting by and through the Kansas Department of
Health and Environment (the "Loan Agreement") to finance the Project Costs. 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 City
Attorney, the Mayor's execution of the Loan Agreement being conclusive evidence of such approval.
Section 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 collect such rates, fees and charges for the use and services
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fiirnished by or through the System, including all improvements and additions thereto hereafter
constructed or acquired by the Municipality as will provide revenues 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, and (c) pay all other amounts due at any time under the Loan Agreement. In the
event that the rates, fees and charges for the use of the System 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 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. Effective Date. This Ordinance shall take effect and be in full force from and after
its passage by the governing body of the City and publication in the official City newspaper.
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PASSED by the governing body of the City on November, 24, 1,994 and December 1, 1997
on second reading.
(SEAL)
yor
ATTEST:
X.
Clerk
APPROVED AS TO FORM ONLY.
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