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HomeMy WebLinkAbout91-0410 FRWRD - Phase II Bowes Road Interceptor RESOLUTION AUTHORIZING EXECUTION OF A FUNDING AGREEMENT WITH THE FOX RIVER WATER RECLAMATION DISTRICT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that George VanDeVoorde, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a funding agreement on behalf of the City of Elgin with the Fox River Water Reclamation District for Phase II of the Bowes Road Interceptor, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: April 10, 1991 Adopted: April 10, 1991 Vote: Yeas 6 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk FZWRV-mqW FOX RIVER WATER RECLAMATION DISTRICT RAYMOND STREET&PURIFY DRIVE/P.O.BOX 92,ELGIN,IL 601 21-0092/PH.(7081742-2068 FAX(708)742-0193 FUNDING AGREEMENT The FOX RIVER WATER RECLAMATION DISTRICT (FRWRD) is building Phase II of the Bowes Road Interceptor (BRIS II) provide service to areas that will be annexing to not only FRWRD but also to the City of Elgin. It is FRWRD's intent to repay the Revolving Loan Funds used to pay for the construction of BRIS II with developer contributions. If developer contributions are insufficient to make the semi-annual loan the City of Elgin, a home rule community, agrees to guarantee repayment of the loan from developer contributions, from funds on hand or the issuance of general obligation bonds in the exercise of its home rule powers under the Constitution of Illinois, 1970. i Mayor ity of Elgin President FR I"A Clerk, City of Elgin ��erk, FRWRD TRUSTEES Harold C Westphal,Jr. President Ernest R.Ludwig Vice President James E.Tucker Treasurer-Clerk OFFICIALS Albin D.Pagorski General Manager Gregory Hergenroeder P.E.District Engineer Lyle C.Brown Attorney • M ktcLOf� El Agenda Item No . March 11, 1991 TO: Mayor and Members of the City Council FROM: Larry L. Rice, City Manager SUBJECT: Addendum to FRWRD Sewer Grant Request The 1991 City budget includes allocation for construc- tion of the Bowes Road Interceptor from McLean Boulevard to Randall Road. Recently, we and the Sanitary District have learned that construction loan funds may be application.available part of IEPA - and FRWRD has prepared an app that application, needs rule stat s•assurance of repayment based upon the City's home The attached agreement has been prepared by our attor- neys to accompany the application. It provides assurance that if developer contribution funds are insufficient to satisfy the semi-annual payments on the IEPA loan - the City will make up the difference. Although the agreement provides for General Obligation Bonds (because IEPA wants that word- ing) in actual r deficits fees would be made up from our own developer FINANCIAL IMPACT The State IEPA loan is less than 4% over 20 years. Therefore, impact fee collections and developer contributions should not on uYt be fact should satisfy should provide excess interest earn- ings. RECOMMENDATIONS The Council is asked to approve the attached "Funding Agreement for inclusion in the FRWRD Bowes Road Interceptor (BRIS II) application. i,L j _Z, &2222-- - LaCiry LV Rice, City Manager LLR:amp FUNDING AGREEMENT The FOX RIVER WATER RECLAMATION DISTRICT (FRWRD) is building Phase II of the Bowes Road Interceptor (BRIS II) Provide service to areas that will be annexing to not only FRWRD but also to the City of Elgin. It is FRWRD's intent to repay the Revolving Loan Funds used to pay for the construction of BRIS II with developer contributions. If developer contributions are insufficient to make the semi-annual loan the City of Elgin, a home rule community, agrees to sell sufficient general obligation bonds to repay the loan. The Illinois State Statute allowing the City of Elgin, a home rule community, to issue (sell) general obligation bonds is Chapter and Paragraph_ Mayor, City of Elgin President, FRWRD Clerk, City of Elgin Clerk, FRWRD