HomeMy WebLinkAboutA024 - Resolution No. 21-005 adopted January 12, 2021 RESOLUTION NO. 21-005
RESOLUTION SETTING THE DATE OF PUBLIC HEARING ON A PROPOSAL TO
ENTER INTO AN AMENDED STATE REVOLVING FUND SEWER REVENUE LOAN
AND DISBURSEMENT AGREEMENT
FOR THE CITY OF AMES, IOWA
WHEREAS, on October 19, 2018, the City of Ames entered into a State Revolving Fund
Clean Water Loan Agreement in a principal amount not to exceed$5,700,000;the loan also included
interest payments totaling $375,000; and,
WHEREAS,the loan provided funding for the annual Sanitary Sewer System Improvements
Program for rehabilitation/reconstruction of deficient sanitary sewers and deteriorated manholes at
various locations throughout the city; and,
WHEREAS,the City's Capital Improvement Plan for this program included State Revolving
Fund (SRF) Clean Water funding to make improvements through three projects: Sanitary Sewer
Rehabilitation(Manhole Rehabilitation-Basin 1 &5),Sanitary Sewer Rehabilitation(Flood Prone
Manholes), and Sanitary Sewer Rehabilitation(Pipe Lining); and,
WHEREAS, the SRF Loan program allows for the interest scheduled to be paid on sewer
loans to be granted back to the loan originator (the City) to fund stormwater quality improvment
projects; these are referred to as"sponsored projects;" and,
WHEREAS,the City of Ames is amending the existing Loan Agreement to allow the interest
due for the sewer SRF loan to be granted back to the City to fund the City Hall Parking Lot
Reconstruction as a sponsored project in the amount of$375,000; and,
WHEREAS,because this project has been completed and the City Council has approved final
acceptance, the $375,000 will serve as a reimbursement into the Stormwater Utility Fund; and,
WHEREAS, the City can now enter into an Amended Loan and Disbursement Agreement
to restate the principal amount of the loan from $5,700,000 to $6,075,000; and,
WHEREAS, this new amount is equal to the original $5,700,000 loan principal plus the
$375,000 sponsored project grant that will be repaid to the City; and,
WHEREAS,repayment of the loan has been budgeted from sanitary sewer utility revenues
and will not change from the original loan repayment schedule; and,
WHEREAS, a public hearing is required to set the date on entering into an Amended Loan
and Disbursement Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the date of public hearing for the proposal to enter into an Amended State Revolving Fund
Sewer Revenue Loan and Disbursement Agreement in a principal amount not to exceed$6,075,000
is hereby set for January 26, 2021.
ADOPTED THIS 12'h day of January, 2021.
Diane . Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Junck
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 12" day of January, 2021.