HomeMy WebLinkAbout1992-003 Wastewater Collection System Improvements RESOLUTION NO. 3-92
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUBBUCK, IDAHO,
AUTHORIZING THE EXECUTION AND FILING OF A PETITION FOR JUDICIAL
CONFIRMATION, PURSUANT TO TITLE 7, CHAPTER 13, IDAHO CODE, WITH
RESPECT TO CERTAIN WASTEWATER COLLECTION SYSTEM IMPROVEMENTS;
FINDING AND DECLARING THAT A PROPOSED LOAN AGREEMENT AND EVIDENCE
OF INDEBTEDNESS PURSUANT THERETO CONSTITUTE "ORDINARY AND NECESSARY
EXPENSES" OF THE CITY WITHIN THE MEANING OF ARTICLE 8, SECTION 3,
IDAHO CONSTITUTION; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the city of Chubbuck, Idaho (the "City"), has for
many years owned and operated a municipal sewage collection system,
which System is in need of certain improvements and repairs (the
"Improvements") for its continued operation in accordance with
applicable state and federal laws and standards; and ...........
WHEREAS, the City Council has determined that it is in the
best interests of the City and its inhabitants to finance the costs
of such Improvements through a loan from the State of Idaho
Division of Environmental Quality (the "State"), and has made
application to the State for such loan; and
WHEREAS, the State has tentatively approved such loan
application, subject to the condition, among other conditions, that
the City first obtain judicial confirmation, pursuant to the
Judicial Confirmation Law, the same being Title 7, Chapter 13,
Idaho Code, of the validity of the proposed loan agreement and any
evidence of indebtedness thereunder as an "ordinary and necessary
expense" of the City under Article 8, Section 3, of the Idaho
Constitution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CHUBBUCK, IDAHO, as follows:
Section 1: The Petition for Judicial Confirmation (the
"Petition"), a copy of which is annexed hereto and by reference
made a part hereof, is approved, and the Mayor is authorized to
execute the verification of the same.
Section 2: The City Attorney and the firm of Davis Wright
Tremaine, Boise, Idaho, as special counsel to the City, are hereby
authorized to file said Petition on behalf of the City in the
District Court of the Sixth Judicial District of the State of
Idaho, in and for the County of Bannock, and to take all actions
necessary with respect thereto in order to obtain a judgment of
said court in accordance with the prayer of said Petition.
Page 1
Section 3: The City Council hereby finds and declares that
the proposed loan agreement, and any evidence of indebtedness
executed pursuant thereto, for the financing of said Improvements,
constitute an ordinary and necessary expense of the City within the
meaning of Article 8, Section 3, Idaho Constitution, for which no
approving vote of the electors of the City is required, for the
following reasons:
A. The proposed expenditure is necessary to protect the
health and safety of the inhabitants of the City and to
comply with state and federal health and environmental
standards.
B. The proposed expenditure is for the purpose of repairing,
rehabilitating, maintaining, and extending existing City
services in order to render them serviceable, as opposed
to the construction of wholly new facilities.
C. The amount of the proposed indebtedness is not
disproportionate to the City's overall budget for the
year.
D. The proposed Improvements are authorized by the general
laws of the state.
E. The City has operated the existing System for many years
and has determined that the Improvements are
indispensable to the efficient continued operation of the
System.
Section 4: This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 24th day of March, 1992.
CITY OF CHUBBUCK
Bannock County, Idaho
ATTEST:
city Clerk
(SEAL)
Page 2
Thomas J. Holmes
JONES, CHRISTENSEN, JORGENSEN, ROBISON,
HOLMES & ROBISON, Chartered
Chubbuck City Attorney
~I~/4~38 West Whitman
P. O. Box 967
Pocatello, Idaho 83204
(208) 232-5911
Michael C. Moore
L. W. Grant, III
DAVIS WRIGHT TREMAINE
702 W. Idaho St., Suite 700
Boise, Idaho 83702
(208) 338-8200
Attorneys for Petitioner City of Chubbuck
IN THE DISTRICT COURT OF THE SIXTH JUDICIAL DISTRICT OF THE
STATE OF IDAHO, IN AND FOR THE COUNTY OF BANNOCK
In re: ) Case No.
)
CITY OF CHUBBUCK, ) PETITION FOR JUDICIAL
) CONFIRMATION
Petitioner. )
) Fee Category: G
) Fee: $53.00
COMES NOW the Petitioner, the City of Chubbuck, of Bannock
County, Idaho (the "Petitioner"), by and through its undersigned
attorneys, and petitions this Court, pursuant to the Judicial
Confirmation Law, Idaho Code Sections 7-1301, et seq., for a
judicial examination and determination of the authority of
Petitioner to enter into a certain loan agreement with the State of
Idaho, as an "ordinary and necessary expense" of the Petitioner
Page 1 - PETITION FOR JUDICIAL CONFIRMATION
within the meaning of Article 8, Section 3, Idaho Constitution. In
support thereof, Petitioner represents as follows:
I.
This action is in the nature of a proceeding in rem, and
jurisdiction of all parties interested will be obtained by
publication and posting as provided in Sections 7-1305 and 7-1306,
Idaho Code.
II.
Petitioner City of Chubbuck is an incorporated city organized
pursuant to the laws of the State of Idaho, is a political
subdivision within the definition contained in Section 7-1303(b),
Idaho Code, and is authorized to institute a judicial confirmation
proceeding pursuant to Section 7-1304, Idaho Code.
III.
Petitioner owns and operates, and for many years has owned and
operated, a municipal sewage collection system (the "System"). The
System was initially financed by the issuance of a sewer revenue
bond pursuant to Article 8, Section 3, Idaho Constitution, and the
Idaho Revenue Bond Act, the same being Sections 50-1027 through
50-1042, inclusive, Idaho Code. The Petitioner has continued to
operate the System pursuant to and in accordance with the
applicable provisions of the Idaho Code.
IV.
Pursuant to Sections 39-3602 through 39-3606B, Idaho Code, as
amended by the 1988 Legislature, and rules and regulations
Page 2 - PETITION FOR JUDICIAL CONFIRMATION
promulgated pursuant thereto, the State of Idaho, Department of
Health and Welfare, Division of Environmental Quality (the
"State"), has established a wastewater facility loan account for
the purpose, among other purposes, of making loans to
municipalities for the financing of wastewater collection and
treatment facilities.
V.
Petitioner, through its Mayor and Council, has determined that
certain ~mprovements to its existing wastewater collection
facilities are needed in order to continue to operate its System in
accordance with state and federal environmental protection
standards for the public health, safety, and welfare. The required
improvements (collectively, the "Improvements") consist generally
of (1) rehabilitation and repair of four of the Petitioner's pump
stations; (2) construction of a bypass line to eliminate the need
for the Siphon Pump Station; (3) repair and replacement of
defective and leaking pipelines; and (4) construction of a new
eight-inch sewer collection line to serve the Dell Road area.
VI.
In order to finance a portion of the cost of the Improvements,
Petitioner, has made application to the State for a loan from the
Wastewater Facilities Loan Account referred to above. A copy of
Petitioner's loan application is attached hereto as Exhibit "A" and
by reference is incorporated in this Petition. The State has
determined that Petitioner is eligible for such loan and has
Page 3 - PETITION FOR JUDICIAL CONFIRMATION
indicated its approval of such loan, subject to certain conditions,
all as set forth in Exhibit "B" which is annexed hereto and by
reference incorporated herein.
VII.
The loan agreement, if entered into by Petitioner, would be
payable over a 20-year period from sewer system revenues and would
constitute an indebtedness of Petitioner extending beyond the
current year's revenues of Petitioner. No approving vote of the
electors of Petitioner has been sought or obtained.
VIII.
Article 8, Section 3, Idaho Constitution, provides that no
county, city, or other political subdivision shall incur any
indebtedness or liability, in any manner or for any purpose,
exceeding in that year the income and revenue provided to it for
such year, without the assent of two-thirds (or, in the case of
certain revenue bonds, the assent of the majority) of the qualified
electors thereof voting at an election held for that purpose, but
said Article 8, Section 3, contains the following exception:
"provided, that this section shall not be construed to apply to the
ordinary and necessary expenses authorized by the general laws of
the state .... "
IX.
Petitioner, by and through its Mayor and Council, has
determined that the proposed loan agreement for the financing of
the Improvements constitutes an ordinary and necessary expense of
Page 4 - PETITION FOR JUDICIAL CONFIRMATION
the Petitioner within the means of the above-quoted proviso to
Article 8, Section 3, Idaho Constitution, for which no approving
vote of the electors is required. This determination is based upon
the following factors:
A. The proposed expenditure is necessary to protect the
health and safety of the inhabitants of the Petitioner
and to comply with state and federal health and
environmental standards.
B. The proposed expenditure is for the purpose of repairing,
rehabilitating, maintaining, and extending existing city
services in order to render them serviceable, as opposed
to the construction of wholly new facilities.
C. The amount of the proposed indebtedness is not
disproportionate to the Petitioner's overall budget for
the year.
D. The proposed Improvements are authorized by the general
laws of the state.
Eo Petitioner has operated the existing System for many
years and has determined that the Improvements are
indispensable to the efficient continued operation of the
System.
X.
Petitioner seeks a determination of the validity of the
proposed loan agreement, including the Petitioner's proposed pledge
to repay the loan from sewer revenues, in view of:
Page 5 - PETITION FOR JUDICIAL CONFIRMATION
A. The legal issue, arising under Article 8, Section 3,
Idaho Constitution, as to whether or not the proposed
loan agreement and any promissory note or other
obligation evidencing such agreement constitutes an
"ordinary and necessary expense" of Petitioner for which
an approving vote of the electors is not required.
B. The requirement contained in the State's loan offer that
judicial confirmation of the validity of the loan
agreement be obtained as a condition precedent to the
execution of the loan agreement.
XI.
Judicial examination and confirmation pursuant to this
Petition would serve an important public purpose by providing an
early determination of the validity of the power of Petitioner to
enter into the proposed loan agreement, to issue its promissory
note or other evidence thereof, and to pledge to repay said
obligations from the revenues of the Petitioner's sewer system, all
as provided by the Judicial Confirmation Act and in particular
Section 7-1302, Idaho Code.
WHEREFORE, Petitioner prays (1) for an order setting the date
and time of a hearing herein and directing the giving of notice
hereof as provided by law, and (2) for a judicial examination and
determination of the validity of the power and authority of
Petitioner (a) to enter into the proposed loan agreement with the
State, (b) to incur indebtedness thereunder without the approval of
Page 6 - PETITION FOR JUDICIAL CONFIRMATION
· EXHIBIT A
· APPLICATION FOR LOAN
_.. Idaho Water Pollution Control Account
{
~;ECTION A - ORGANIZATIONAL DATA
I. Legal Applicant
a. Name of Applicant: city of Chubbuck
b. Applicant Address: 5:16o Yellowstone/P.O. Box 5604/Chubbuck, ID 832
C. Contact Person: Steven M. Smart
d. Telephone Number: 237-2400
2. Consulting Engineer (if applicable)- Att: 3ames L. Keller
"Forsgren & Associates
545 Benjamin Lane ~185
Boise, ID 83704-8336
-(~':" SECTION B - PROPOSED FINANCING
!. Project Funding
a. Loan Assistance Need $ 3ol,4oo.oo
b. Other Assistance Available $ o
c. Total Project Cost o $ ~n~ ,z~nn.nn
2. Source of Financial Aid: Idaho Water Pollution Control Account
SECTION C - ASSURANCES AND CERTIFICATIONS
The undersigned representative of the applicant certifies that the
information contained herein and the attached statements and exhibits are
true, correct and complete to the best of his knowledge and belief.
Loan Application
· ,Page Two
The undersigned also agrees to clarify or supplement Information
pertaining to this application upon request.
J;htef Administrative Officer of A@plicant
Name and Title: John O. Cotant. Mayor
Address: city of Chubbuck/5160 Yellowotone/P.Q. Box 5604
S~§n~ture: I Dat~:~~~~
SECTION D - PROJECT DESCRIPTION
Refer to attached sheet.
SECTION E - APPLICANT'S STATEMENT OF NEED
Refer to attached sheet.
SECTION F - READINESS TO PROCEED
I. Project Status
a. Status of Prelimina~ Engineedng: No preliminary engineerin~ has been
done~ Project is awaiting funding approval for engineering design
and construction.
b. Status of Final Plans and Specifications:
No engineering work has been completed. Project is'awaiting
funding approval before proceeding.
c. Availability of land, rights-of-way, etc:
All york to be done under this project will be completed
within existing rights-of-way or easements owned by the City.
No new right-of-way or easements would'be necessary.
d. Status of National Environmental Policy Act (NEPA) requirement:
A categorical exclusion for this project has been granted.
e. Additional comments:
Section D - Project Descr~ption
]. Extension of existing city sewer lines one quarter mile
along Dell Road to serve Delmar Acres Subdivision.
2. Rehabilitate and refurbish four lift stations.
3. Replace and/or rehabilitate broken or damaged sections
of sewer lines.
4. Construct a bypass line to bypass Siphon Road lift station.
Refer to facilities planning study for complete details.
Section E - Applicant's Statement Of Need
1. The extension of the sewer line in Dell Road is needed
to accomplish the City's policy of providing sewage
collection services to every sewage generator inside
the City. The ultimate goal is to protect ground
water supplies and the health and welfare of residents.
2. Many parts of the lift stations and equipment have worn
and deteriorated due to use and age. These parts and
equipment need to be replaced and refurbished in order
to maintain the integrity of the existing sewer system.
3. Several sections of sewer line have become broken and
damaged to a point that repair is needed and necessary
in order to maintain the integrity of the collection
system. Repair will also eliminate contamination of
underground water supplies from sewage seeping into
the subsurface.
4. The bypass of Siphon road lift station is needed to reduce
maintenance and operation expenses over the short term.
Refer to facilities planning study for complete details.
Loon /kppllCl~tlOn
· Page Three
~ECTIO, N F (continued).
2. Proposed Schedule following Loon Approval Dote
a. Submittal of Preliminary Engineering June ]992
b. Submittal of Final Plans ~u~v 1992 --_
c. Plans & Specifications Approved August 1992
d. Advertise for Bids September ]992
e. Award Contracts September 1992
f.- Complete Construction November ]992
g. Initiate Operation November 1992
3. Availability of Other Funds Needed to Complete Project (including, but
not limited to,. financing of ineligible items)
a. Source b. Amount .(.$.) c. Commitment Date
N.A. N.A. N.A.
TOTAL t.
SECTION G - STATISTICAL DATA
I. Sewer Users a.: Pf Existing b. ' of Proposed
Residential Customers 1 R59 ]875
Commercial Customers ]o3 ]03
c. Existing Wastewater Treatment Flows __o. 9% __rngpd (million
gallons per day)
2. 1980 Census Population ?052
3. Median Household Income 2o255
SECTION H - PROJECT BUDGET INFORMATION
1. Administration Expense $ n. nnn_ nn
2. Land, Right-of-way $ n
Architectural/Engineering Basic Fees $ 26,000.00
4. Other Architectural/Engineering Fees $. 0
5. Project Inspection Fees $. 15,000. oo
6. Other $ o
7. Construction and Project Improvement:
o. Treatment Plant $ n -
b. Lift Station $ 63,ooo.oo
c. Interceptor Line(s) $ 36,ooo.o0
d. Collector System $ :] 26, ooo. O0
e. I & I Rehabilitation $ o -
f. Equipment $ o
g. Other $ o
h. Total Construction Cost $. o $.225,000.00 ',
8. Contingencies $. 27,4oo. aa
g. TOTAL $, 3o], qoo. aa
· . Page Five
(
~ECTION ! - OPERATION & I"JA~NTI;NA#C:E FINANCIAL DATA - ANN_UAL.~'OST
I. Labor/Salaries $ ]29,400.00
2. Utilities $. ]],?00-00
;~. Materials/Chemicals $
4. Rent/Billing $
5. Insurance $. 4,200.00
6. Reserves for Equipment Replacement $ 45.75.0.00 .
7. Existing Debt Service $
8. Proposed New Debt Service $
9. Miscellaneous Expenses $ 244~, 700. O0
10. Total Annual Cost $ 553,960.00
1 I. Total Annual Cost * · of Customers =
(Cost/Customer/Year) $ 28o. 06
EXHIBIT B
DEPARTHENT OF ~~ ~ ~~
, ~ OFFER~ ~CE~CE ~ CO~
FOR ~~R ~~ F~ILI~
CONS~TION
~;EC?ION I. INTRODUCTION
The State of Idaho (State) is authorized by the Water Pollution
Abatement Act (Act), Title 39, Chapter 36 of the Idaho Code, to make
loans from the Wastewater Treatment Facility Loan Account (Account)
to assist municipalities in the construction of wastewater treatment
facilities. The Idaho Board of Health and Welfare, through the
Department of Health and Welfare (Department), is authorized to
administer the Act. The Department has determined that the City of
Chubbuck (Applicant) has established eligibility for a loan under the
terms of the Act and the Rules and Regulations for Administration of
Wastewater Treatment Facility Loans, Title 1, Chapter 12, Rules and
Regulations of the Department (Regulations).
A completed application for a Wastewater Treatment Facility
Construction Loan has been submitted to the Department by the
Applicant. The Department hereby offers a loan to the Applicant
according to the terms and conditions contained in this document and
the Regulations.
SECTION II. DESCRIPTION OF PROJECT
This loan offer is for construction of the following project:
A. Loan Project Number: 1892-05
B. Name and Address of Applicant:
City of Chubbuck
P. O. Box 5604
Chubbuck, ID 83204-3202
C. Project Description:
Extension of existing city sewer lines one quarter mile along
Dell Road to serve DeLmar Acres Subdivision. Rehabilitate and
refurbish four lift stations. Replace and/or rehabilitate broken
or damaged sections of sewer lines. Construct a bypass line to
bypass Siphon Road lift station.
Loan No. 1892-05
D. Project Financing Under Terms of this Offer (in dollars):
1. State Revolving Loan/EPA Funds $301,400
2. Other Local Funds 0
3. Total Project Cost $301,400
E. Estimated Project Budget:
Total
1. Administrative $8,000
2. A/E Fees 26,000
3. Project Inspection Fees 15,000
4. Construction 225,000
5. Contingencies 27,400
6. Total $301,400
SECTION III. GENERAL CONDITIONS
A. On the Applicant obtained, pursuant to Idaho Code
Section 7-1301 to 1312, judicial confirmation of the debt to be
incurred by this loan contract. This offer is made contingent
upon no appeal of the Judicial confirmation being filed within
the time limit allowed by law.
B. This offer may only be accepted by signature by an authorized
representative of the Applicant. Upon acceptance by the
Applicant, this offer shall become a loan contract and the
Applicant shall become a Borrower. The effective date of this
loan contract shall be the date of acceptance by the Borrower
after this loan contract has been duly authorized by ordinance
of the Borrower. By accepting this offer, the Borrower agrees
to all terms and conditions set forth in this document and the
Regulations.
The Borrower agrees:
A. To not transfer, assign or pledge any beneficial interest in
this contract to any other person or entity without the prior
2
Loan No. 1892-05
written consent of the Director of the Department. To not enter
into sale, lease or transfer of any of the property related to
the project. To not make any additional material encumbrances
to the project without the prior written consent of the Director
of the Department. To not incur any liabilities that would
materially affect the funds pledged to repay this loan without
the prior written consent of the Director of the Department. To
not delegate legal responsibility for complying with the terms,
conditions, and obligations of this contract without the prior
written consent of the Director of the Department.
Notwithstanding any other provision of this paragraph, the
Borrower may sell or otherwise dispose of any of the works,
plant, properties and facilities of the project or any real or
personal property comprising a part of the same which shall have
become unserviceable, inadequate, obsolete or unfit to be used
in the operation of the project, or no longer necessary, material
or useful in such operation, without the prior written consent
of the Director of the Department.
B. To enter into such contractual arrangements with third parties
as it deems advisable to assist it in meeting its
responsibilities under this contract.
C. To fulfill all declarations, assurances, representations and
statements in the application and all other documents, amendments
and communications filed with the Department by the Applicant in
support of the request for this loan.
D. To comply with applicable State and Federal employment
requirements including, but not limited to, Equal Employment
Opportunity and Civil Rights requirements.
E. To provide evidence of ownership in the form of fee simple title
or long-term lease and right of access or easements for real
property on which the project is to be constructed. Clear title
to all real property necessary for the successful operation of
the facilities shall be guaranteed by the Borrower for the
useful life of the project.
F. To take affirmative action to ensure that the project shall be
completed and operated in conformance with federal and state
laws relating to occupational health and safety.
G. That if prior to completion of this contract the project is
damaged or destroyed, there will be no reduction in the amounts
payable by the Borrower to the Department.
H. That in the event there is any default in the payment of either
the principal amount or the interest due under this contract, or
any breach by the Borrower of any of the terms or conditions of
3
Loan No. 1892-05
this contract, the entire principal amount and whatever interest
is due to the date of payment may be declared due and immediately
payable. The amount of such default shall bear the same interest
rate as applies to the principal of this loan from the date of
default until the date of payment by the Borrower. All costs
incurred by the Department due to such default, including court
costs and attorney's fees, shall be repaid by the Borrower to the
Department.
I. That any waiver by the Department at any time of the rights or
duties under this contract shall not be deemed a waiver of any
subsequent or additional rights or duties under this contract.
J. That the use by the Department of any remedy specified in this
contract for its enforcement is not exclusive and shall not
deprive the Department of the right to seek any other appropriate
legal or equitable remedy.
K. That this agreement is binding upon the Borrower and the
Department, and any person, office or entity succeeding the
Borrower or the Department.
L. To comply with all applicable federal, state and local laws.
SECTION IV. PROJECT MANAGEMENT
The Borrower agrees to:
A. Require the prime architectural/engineering firm(s) and their
principals retained for architectural/engineering services to
carry professional liability indemnification to protect the
public from the architect's/engineer's negligent acts and errors
of omission of a professional nature. The total aggregate of the
architect's/engineer's professional liability indemnification
shall be one hundred thousand dollars ($100,000) or twice the
amount of the architect's/engineer's fee, whichever is greater.
Professional liability indemnification must cover all services
rendered for all phases of the project, whether or not those
services are state funded, until the certification of project
performance is accepted by the Department.
B. Comply with the Public Contracts Bond Act, Title 54, Chapter 19,
Idaho Code, including requiring the prime construction contractor
retained for construction to carry performance and payment bonds
equal to one hundred percent (100%) of the contract price. The
bond will be released when the constructed facility is accepted
by the Borrower.
4
Loan No. 1892-05
C. Assure that contracts related to the project which provide for
arbitration allow appeal of any resulting arbitration decision
to a district court or allow the arbitration to be non-binding
on both parties if either party desires not to use arbitration
as a method of dispute settlement.
D. Jointly with an engineering consultant provide assurances that
the physical and operational integrity of the works, when
constructed, will achieve the level of treatment provided for in
the design specifications.
E. Provide for the accumulation of funds through charges made for
services, through revenue bonds, or otherwise, for the purposes
of (1) establishing a fund dedicated solely to the repayment of
principal and interest on this loan, (2) capital replacement and
(3) future improvement, betterment, and extension of such works
occasioned by increased wastewater loadings on the works.
F. Provide a plan and program for an equitable user charge system
for payment of operation and maintenance of constructed
facilities. The user charge system shall be approved by the
Department and enacted by the Borrower prior to receiving final
payment. Make available on an equitable basis the services of
the project to the residents and commercial and industrial
establishments of the area it was designed to serve.
G. Develop and adopt a sewer use ordinance approved by the
Department prior to receiving final disbursement of loan funds.
H. Provide an operation and maintenance manual for the project
approved by theDepartment prior to receiving final disbursement
of loan funds.
I. Provide adequate staffing and qualified operation and
maintenance personnel as specified in the operation and
maintenance manual approved by the Department.
J. Assure that the operator in charge of the treatment facility has
a level of competency commensurate with the nature of the
collection and treatment facility. He(She) must be a graduate
of an approved wastewater operators training program or be
certified as a Wastewater Treatment Works Operator in a class
equal to or greater than that of the facility.
K. Assure that treatment facility personnel shall participate in
operator training programs approved by the Department and
designed to assure competence in the operation and maintenance
of the facility.
L. Commence satisfactory operation and maintenance of the sewage
5
Loan No. 1892-05
treatment facility on completion of the project in accordance
with applicable provisions, rules and regulations of the
Department and any other applicable law, rule or regulation and
not discontinue operation or dispose of the treatment facility
without the written approval of the Department.
M. Provide for continuing acceptance and treatment of local septage
waste, if such facilities were constructed under this loan
contract.
N. Review and update the user charge system at least biennially
during the life of this agreement to assure that all costs
including debt retirement and operation and maintenance costs are
offset by sufficient revenues.
O. Maintain project accounts in accordance with 'generally accepted
government accounting standards.' These standards are usually
defined, but not limited to, those contained in the U. S. General
Accounting Office (GAO) publication 'Standards for Audit of
Governmental Organizations, Programs, Activities and Functions'
(2/27/81).
SECTION V. SPECIAL CONDITIONS
A. The Borrower shall complete the project in accordance with the
following schedule=
Number of months from
Loan Acceptance Task
2 10% Design Review
3 50% Design Review
4 90% Design Review
5 Final Plans and Specifications and
Bidding Documents
6 Bid S~mmary
6 Award Construction Contract
6 Project Management Conference
8 Plan of OperationAmendment
10 Draft Operation & Maintenance
Manual
10 Staffing Plan
12 Construction Completion
12 User Charge System Enacted
12 Sewer Use Ordinance Enacted
24 Final O&M Manual
12 Final Inspection
12 Initiate Operation
24 Certify Performance
12 Final Payment
Loan No. 1892-05
B. The preceding schedule may be changed by amending the plan of
operation; all amendments to the plan of operation must be
approved by the state project engineer prior to becoming
effective.
SECTION VI. SECURITX
The Borrower agrees:
A. This loan will be evidenced and secured by a promissory note in
an amount equal to the final approved project cost. The
promissory note shall include, among other things, a promise to
repay all principal and interest on the loan and, as additional
security, a pledge of the revenue and income of the Chubbuck
Wastewater Treatment Facility, whether collected or uncollected,
and in an amount sufficient to repay all principal and interest
on this loan. The promissory note shall be executed upon project
completion.
B. Within five (5) years of project completion, establish a reserve
account in an amount equal to one (1) year's payment of principal
and interest due on this contract. A minimum of 20% must be
deposited annually during the five (5) year period. In the event
Borrower fails to make any payment due on this contract, Borrower
shall immediately use the funds in the reserve account to pay the
past due principal and interest on this contract. Borrower shall
inform the Department in writing when funds from the reserve
account are used. Within thirty (30) days of using funds from
the reserve account, Borrower shall replenish the reserve account
in an amount equal to the amount borrowed from the reserve
account. The reserve account may be used by the Borrower solely
for the purpose of securing payments on this contract.
SECTION VII. LOAN DISBURSEMENTS
The Borrower agrees:
A. This loan shall be used solely to aid in the financing of the
Borrower's project.
B. Requests for actual disbursement of loan funds will be made by
the Borrower using forms provided by the Department. Upon
approval of the disbursement request by the Department, loans
funds shall be released to the Borrower.
C. If the actual eligible cost of the project is determined by the
Department to be lower than the estimated eligible cost, the loan
amount will be reduced accordingly.
Loan No. 1892-05
D. A project review by the Department will determine final eligible
costs for the project.
E. Payment of the final five percent (5%) of this loan shall be
withheld until the following requirements are met:
1. The Borrower's engineer certifies (a) that the project has
been constructed according to plans and specifications
previously approved by the Department and (b) that the project
is fully operational; and
2. The Department has inspected the project and verifies the
engineer's certification; and
3. The Department has determined that all terms and conditions
of this agreement have been met; and
4. A final loan repayment schedule has been completed;
5. All security requirements of Section VI have been satisfied.
F. This offer is subject to the existence of the offered sum of
money in the Account at the time of payment. Should the offered
sum of money not be available in the Account at the time of
payment, the Idaho Department of Health and Welfare hereby agrees
to pay the Applicant the offered sum of money on the basis of
the Applicant's priority position ~mmediately upon the accrual
of said sum in the Account.
The Borrower shall:
A. Provide a schedule of payments.
B. Provide for payment of the Borrower's share of the cost of the
project.
C. Not submit requests for payment for any expenses arising from
binding arbitration.
SECTION VIII. REPAYMENT TERMS AND SCHEDULE
The Borrower agrees:
A. This loan shall be repaid in the manner set forth in the Loan
Repayment Schedule which will be prepared by the Department and
executed along with the promissory note by the Borrower upon
project completion. The loan repayment schedule will be based
on the final eligible project costs at four percent (4%) interest
over twenty (20) years from the date of project completion.
8
Loan No. 1892-05
Interest will begin accruing with the first disbursement of loan
funds.
B. This loan contract shall remain in full force and effect for the
actual service life of the project. At a minimum, this loan
contract shall remain in full force and effect until all loan
proceeds, including principal and interest, have been paid in
full or the contract is otherwise suspended or terminated by the
Department.
SECTION IX. PROHIBITIONS
The Borrower agrees=
Expansion of collection systems in excess of Chubbuck's allocation of
the reserve capacity of the Pocatello treatment works will be
prohibited unless concurrent designated construction provisions for
adequate treatment are provided by the Borrower.
SECTION X. SUSPENSION OR TERMINATION OF LOAN CONTRACT
A. The Director may suspend or terminate this loan contract prior
to final disbursement for failure by the Borrower or its agents,
including architectural/engineering firm(s), contractor(s) or
subcontractor(s), to perform. This loan contract may be
suspended or terminated for good cause including, but not limited
to, the following:
1. Commission by an employee or agent of the Borrower, of any of
the following acts in a manner which materially affects the
Borrower's obligations under this contract: fraud,
embezzlement, theft, forgery, bribery, misrepresentation,
conversion, malpractice, misconduct, malfeasance, misfeasance,
falsification or unlawful destruction of records, receipt of
stolen property or any ct{me for which the maximum sentence
includes the possibility of one (1) or more years'
~mprisonment.
2. Violation(s) of any term of this loan contract; or
3. Any willful or serious failure to perform within the scope
of the project, plan of operation and project schedule, terms
of architectural/engineering subagreements, or contracts for
construction; or
4. Utilizing a contractor or subcontractor who has been debarred
for good cause by any federal or state agency from working on
public work projects funded by that agency.
9
Loan No. 1892-05
B. The Director will notify the Borrower in writing and by certified
mail of the intent to suspend or terminate this loan contract.
The notice of intent shall state:
1. Specific acts or omissions which form the basis for suspension
or termination; and
2. Availability of a hearing, conducted by the Director, hearing
officer or his designee as hearing officer, said hearing being
conducted in an informal manner at a time and in a place
specified by the Director.
C. Upon the proof of the existence of cause(s) for suspension or
termination by substantial evidence or by proof of Judgement or
conviction of offense(s), the Director shall make a written
determination, sending the determination to the Borrower by
certified mail within seven (7) days of the hearing.
D. Upon written request by the Borrower with evidence that the
cause(s) for suspension no longer exists, the Director may, if
funds are available, reinstate the loan contract. If a suspended
loan contract is not reinstated, the loan will be amortized and
a repayment schedule prepared in accordance with the provisions
of this loan contract.
E. No terminated loan shall be reinstated. Terminated loans will
be amortized and a repayment schedule prepared in accordance with
the provisions of this loan contract.
SECTION XI. ACCESS AND INDEMNIFICATION
The Borrower agrees to:
A. Provide the Department, or its authorized agents, access to all
files, records, accountings and books relating to the management
and accountability of this loan.
B. Indemnify and save harmless the State of Idaho, its agents, and
its employees regardless of fault or negligence, from any and all
claims, actions, damages, liabilities and expenses directly or
indirectly connected to the location, design, construction,
operation, maintenance, repair, failure or deactivation of the
project or any part of the project.
10
Loan No. 1892-05
~ECTION XII. OFFER
The offer set forth herein must be accepted, if at a11, on or before
An acceptance must be accompanied by a resolution of
.
the Applicant's governing body authorizing the signator to sign on the
Applicant's behalf for the purpose of this agreement.
Dated this , , 1990.
Administrator
Division of Environmental Quality
Idaho Department of Health and Welfare
SECTION XIII. ACCEPTANCE
The , by and through its undersigned
representative(s), accepts the foregoing offer and agrees to discharge
all obligations and to comply with all terms and conditions contained
herein.
Date Signature of Representative
Name & Title of Representative - type or print
11
03/11/92 IDAHO DEPARTMENT OF HEALTH AND WELFARE
REPAYMENT SCHEDULE
CITY OF CHUBBUCK SEWER LINE EXTENSIONS
Loan Amt.: 301,400.00 Term: 20 years Repayment Frequency: Semi-annual
Int. Rate: 4.00% Repayments to begin: 07/01/1993
DATE AMOUNT INTEREST PRINCIPAL BALANCE
07/01/1993 11,017.90 6,028.00 4,989.90 296,410.10
01/01/1994 11,017.90 5,928.20 5,089.70 291,320.40
07/01/1994 11,017.90 5,826.41 5,191.49 286,128.90
01/01/1995 11,017.90 5,722.58 5,295.32 280,833.58
07/01/1995 11,017.90 5,616.67 5,401.23 275,432.35
01/01/1996 11,017.90 5,508.65 5,509.25 269,923.10
07/01/1996 11,017.90 5,398.46 5,619.44 264,303.65
01/01/1997 11,017.90 5,286.07 5,731.83 258,571.82
07/01/1997 11,017.90 5,171.44 5,846.46 252,725.36
01/01/1998 11,017.90 5,054.51 5,963.39 246,761.97
07/01/1998 11,017.90 4,935.24 6,082.66 240,679.30
01/01/1999 11,017.90 4,813.59 6,204.31 234,474.99
07/01/1999 11,017.90 4,689.50 6,328.40 228,146.59
01/01/2000 11,017.90 4,562.93 6,454.97 221,691.62
07/01/2000 11,017.90 4,433.83 6,584.07 215,107.54
01/01/2001 11,017.90 4,302.15 6,715.75 208,391.79
07/01/2001 11,017.90 4,167.84 6,850.06 201,541.73
01/01/2002 11,017.90 4,030.83 6,987.07 194,554.66
07/01/2002 11,017.90 3,891.09 7,126.81 187,427.84
01/01/2003 11,017.90 3,748.56 7,269.34 180,158.50
07/01/2003 11,017.90 3,603.17 7,414.73 172,743.77
01/01/2004 11,017.90 3,454.88 7,563.02 165,180.75
07/01/2004 11,017.90 3,303.61 7,714.29 157,466.46
01/01/2005 11,017.90 3,149.33 7,868.57 149,597.88
07/01/2005 11,017.90 2,991.96 8,025.94 141,571.94
01/01/2006 11,017.90 2,831.44 8,186.46 133,385.48
07/01/2006 11,017.90 2,667.71 8,350.19 125,035.29
01/01/2007 11,017.90 2,500.71 8,517.19 116,518.09
07/01/2007 11,017.90 2,330.36 8,687.54 107,830.55
01/01/2008 11,017.90 2,156.61 8,861.29 98,969.26
07/01/2008 11,017.90 1,979.39 9,038.51 89,930.75
01/01/2009 11,017.90 1,798.61 9,219.29 80,711.45
07/01/2009 11,017.90 1,614.23 9,403.67 71,307.78
01/01/2010 11,017.90 1,426.16 9,591.74 61,716.04
07/01/2010 11,017.90 1,234.32 9,783.58 51,932.46
01/01/2Oll 11,017.90 1,038.65 9,979.25 41,953.20
07/01/2011 11,017.90 839.06 10,178.84 31,774.36
01/01/2012 11,017.90 635.49 10,382.41 21,391.95
07/01/2012 11,017.90 427.84 10,590.06 10,801.89
01/01/2013 11,017.90 216.01 10,801.89 0.00