Res 1366 - Loan# R98411
COUNCIL BILL NO. 1727
RESOLUTION NO. 1366
A RESOLUTION ENTERING INTO AN AGREEMENT WITH THE STATE OF OREGON,
DEPARTMENT OF ENVIRONMENTAL QUALITY, FOR STATE REVOLVING FUND LOAN
NUMBER R98411 AND AUTHORIZING THE MAYOR TO SIGN SUCH AGREEMENT.
WHEREAS, the City of Woodburn has applied for a State Revolving Fund Loan
project for design of an advanced wastewater treatment facilities for the city and for design
and construction of a pump station improvements and a new force main to the wastewater
treatment plant, and
WHEREAS, the City of Woodburn has entered into negotiations with the Department
of Environmental Quality for a loan to the City from the State Revolving Fund in the amount
of $4,000,000, and
WHEREAS, the DEQ has provided to the City State Revolving Fund Agreement
number R98411; NOW THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. That the City of Woodburn enter into an agreement with the State of
Oregon acting through its Department of Environmental Quality to secure $4,000,000 in
loan funds through State Revolving Fund Loan number R98411 for the financing of a
sewage treatment system improvement. Said agreement is attached hereto and by this
reference incorporated herein.
Section 2. The City does authorize and approve the establishment and funding of
a designated reserve account to meet the "Loan Reserve" requirement of the SRF Loan
Agreement, and does direct establishment of this Loan Reserve.
Section 3. That the Mayor of the City of Woodburn, acting for and on behalf of the
City, be authorized to execute the SRF Loan Agreement and such other and additional
documents as may reasonably be required for the consummation and closing of the Loan,
and any amendments required thereafter.
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COUNCIL BILL NO. 1727
RESOLUTION NO. 1366
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Approved as to form: () J I J(f
City Attorney
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Date
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST: fY\cu- ---r;:-~,
Mar~nnant, Recorder
City of Woodburn, Oregon
June 24, 1996
June 25, 1996
June 25, 1996
June 25, 1996
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COUNCIL BILL NO. 1727
RESOLUTION NO. 1366
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TABLE OF CONTENTS
ARTICLE 1: THE LoAN- SPECIFIC TERMS, CONDmONS AND PROVISIONS............................. 1
ARTICLE 2: DEFINITIONS ....................................................................._..................................2
ARTICLE 3: GENERAL WAN PROVISI<>N'S...................................................................................4
ARTICLE 4: TERMS, CONSIDERATIONS, AND PROCEDURES ..................................................... 7
ARTICLE 5: GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS......................... 12
ARTICLE 6: REPRESENTATIONS, WARRANTIES AND COVENANTS RELATING TO
CONS'I'RUCfION PROJECfS ONLY ............................................................................................16
ARTICLE 7: RICIn'S OF DEQ; LIMITATIONS ON DEQ REsPONSIBILITIES............................. 17
ARTICLE 8: DEFAULT AND REMEDIES ......................................................................................18
ARTICLE 9: SRF PROCEDURES MANUAL..................................................................................20
ARTICLE 10: APPLICABLE FEDERAL AUI'HORITIES AND LAWS (ttCRoss-CUTIERStt) .......... 20
ARTICLE 11: WAN ExECUTION ............................................................................................... 22
APPENDIX A:
APPENDIX B:
PRELIfdINARY REPAYMENT SClIEDULE............................................................... 23
RESOLUfI ON............................................... .............................................. .......... 24
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ORB<' )BPARTMBNT OF ENVIRONMBNTAL QUALITY
STATE REVOLVING fuND
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ARTICLE 1: THE LoAN - SPEOFlC TERMS, CONDmONS AND PROVISIONS
(A) BORROWER: City of Wood bum.
(8) LOAN No.: R98411.
(C) LOAN AMOUNT: $4,000,000.
(D) PROJECf 'fiThE: Sewage Treatment System Improvements
(E) DATE OF AGREEMENT: June ~ 1996.
(F) ESTIMATED COMPLETION DATE:
December 31, 1997
(G) INrERESTRATE: 3.93% per annmn. Calculation of interest is also
discussed in Section 4(0) on page 10 and in Section 4(l) on page 11 of this agreement
(H) LOAN PROCESSING FEE: 1.5% of the Final Loan Amount will be due with
the first repayment following the determination of the Final Loan Amount as discussed in
Section 2(0) on page 3 and Section 4(H)(1) on page 11 of this agreement
(I) LOAN SERVICING FEE: 0.5% of the outstanding principal will be due
annually begjnning with the second repayment as discussed in Section 4(H)(2) on page 11 of
this agreement
(J) TERMS OF REPAYMENT: . Forty scmi-annual payments begjnning with an
interest-only payment six months after project completion. When all disbursements have
been made and the Final Loan Amount is detennined, a repayment schedule amortizing the
loan over the remaining repayment period will be prepared. Attached as Appendix A is a
preliminary repayment schedule based on an estimated disbmsem.ent schedule and the.original Loan Amount Repayment is also discussed in Section 4(l) on page 11 of this
agreement
(K) BORROWER'S ADDRESS: City ofWoodbum
270 Montgomety Street
Woodburn, Oregon 97071
(L) DESCRIPTION OF THE PROJECI': Design of advanced wastewater treatment
plant; and design and construction of pump station improvements and new force main.
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LoAN AGREEMBNT
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(M) CONSTRUcnON COsrs. As of the date of this Loan Agreement, the Borrower
bas already incurred $0 in construction costs on the Project
(N) TYPE OF LOAN. The loan authorized by this Loan Agreement bas been
approved by the DEQ as an "Revenue Secured Loan" pW'SU8llt to OAR Section 340-54-
065(2).
(0) BORROWER'S AumoRIZAnON. The Borrower bas authorized this agreement
pursuant to ORS 468.439 by Resolution No. 1366 , which was duly passed by the
Borrower's City CoWlcil on June 24, 1996 . A copy of this document is attached as
Appendix B.
(P) PLEDGE. The BOllOWeI' hereby pledges its Net Operating Revenues to pay the
amounts due Wlder this Loan Agreement The BOllOwer covenants with the DEQ and any
assignee of this Agreement that the BOllOwer sha1l not issue any other obligations which have
a pledge or lien on the Net Operating Revenues which is superior to or on a parity with the
pledge herein granted without the written permission of the DEQ. This loan is a parity
obligation with all other State Revolving Fund loans between the DEQ and the BOllOwer.
(Q) COVERAGE REQUIREMENT. Until the loan is repaid in full, the BollOwer
covenants with the DEQ to maintain sewer rates sufficient to meet the requirements listed in
Section 4(0) on page 8 with a debt service coverage factor of 1050/0.
(R) LOAN RESERVE REQUIREMENT. The Borrower covenants with the DEQ and
any assignee of this Loan Agreement that the BollOwer shall establish and tnaintain a Loan
ReserYe Account as described in Section 4(E) on page '9. .The Loan ReserYe Requirement
shall be an amount that equals 100010 of the average anmw debt service as shown on the
repayment schedule. Until the Final Loan Amount is calculated, the Loan Reserve
Requirement equals $2~ 125.
ARTICLE 2: DEFINfl10NS
Unless the context othClWise requires, the capitalized terms used in this Loan Agreement shall
have the meanings defined in this Article.
(A) "BORROWER" means the public jurisdiction shown as the "Borrower" in
Section I(A) on page 1.
(B) "COMPLE110N DATE" means either the date on which a facility planning
project is accepted by the Department, the date on which a design project is ready for the
CITY OF WOODBURN: R98411 : 6/17/96
LoAN AGREEMENT
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ORE> )EPARTMENT OF ENVIRONMENTAL QUALITY
STATE l<.EVOLVING FUND
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contractor bid process, or the date on which a construction project is substantially complete
and ready for initiation of operations.
(C) "COSTS OF 11IE PROJECf" means expenditures approved by the DEQ which
are necessmy to construct the Project in compliance with DEQ requirements which may
include but are not limited to the following items: .
(1) Obligations of the Borrower incurred for labor and materials and all
costs which the Borrower shall be required to pay under the tenns of any contract for
the design, acquisition, construction or installation of the Project;
(2) Engineering fees for the design. and construction of the Project.
(3) The costs of contract bonds and of insurance of all kinds that may be
required or necessary during the course of completion of the Project;
(4) The legaL financing and administrative costs of obt9ining the loan and
completing the Project, and
(5) Any other costs approved in writing by the DEQ.
(D) "DEQ" means the State of Oregon, acting by and through the Director of the
Oregon Department of Environmental Quality or the Director's authorized representative.
(E) "DIRECI'OR" means the Director of the Oregon Department of Environmental
Quality or the Director's authorized representative. .
(F) "F ACIUIY" means the Borrower's wastewater collection, treatment and
disposal systems.
(G) "FINAL LOAN AMOUNT" means the total of all loan proceeds disbursed to the
Borrower including any Loan Agreement amendment increases or decreases. The Final Loan
Amount will be determined when the project is complete or the Borrower indicates that no
further loan funds will be requested, or all eligible expenditures have been reimbursed from
1he loan proceeds. The Final Loan AmOWlt will be amortized over the balance of the
repayment period on a :final repayment schedule.
(H) "LOAN AGREEMENT" or "AGREEMENf" means this Loan Agreement, its
appendices, and any amendments or supplements thereto.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
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(I) "LoAN AMOUNT" means the maximum amOlmt the DEQ agrees to loan the
Borrower as shown in Section I(C) on page 1. This amount may be changed by an
amendment to the Loan Agreement approved by both parties.
(J) "NET OPERATING REvENUES" means the gross sewer system revenues less
the operating expenses. Gross revenues are all fees and charges resulting from operation of
the sewer system, and any interest earnings thereon. However, gross revenues for the pmpose
of this Loan Agreement does not include: any payments of assessments levied aeain~t
properties; the proceeds of any grants; the proceeds of any borrowings for capital
improvements; the proceeds of any liability inswmce; or the proceeds of any casualty
insurance which the Borrower intends to utilize for repair or replacement of the sewer system.
Operating expenses includes all direct and indirect expenses incurred for operation,
maintenance and repair of the sewer system, including but not limited to administrative
expenses, financial and accounting expenses, insurance premiums, claims (to the extent that
monies are not available from proceeds of insurance 1 taxes, legal and engineering expenses
relating to the operation and maintenance, payments and reserves for pension, retirement,
health, hospita1i7Jltion, and sick leave benefits, and any other similar expenses to be paid to
the extent properly and direcd.y attnoutable to operations of the sewer system.
(K) "OUl'STANDING LoAN AMOUNT" means the sum of all disbmsements to the
Borrower hereunder less the sum of all loan principal repayments.
(L) "PROJECr" means the facilities, activities or docmnents descnOed in Section
1(L) on page 1.
(M) "SaF' means the State Revolving Fund. . The State Revolving Fund is the
same as the Water Pollution Control Revolving Fund referred to in ORS Chapter 468,
Division 423.
(N) "STATE" means the State of Oregon.
ARTICLE 3: GENERAL LoAN PROVISIONS
(A) AGREEMENf OF DEQ TO LoAN. The DEQ agrees to loan the Borrower an
amount not to exceed the Loan Amount, subject to the tenns and conditions of this Loan
Agreement, but solely from fimds available to the DEQ under its State Revolving Fund
program. The obligation of the DEQ to make the loan described in this agreement is subject
to the availability of such fimds, and the DEQ sha1l have no liability to the Borrower or any
other party if such funds are not available, or are not available in amounts sufficient to fund
the entire loan described herein.
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(B) A V AlLABJLl'lY OF FuNDS. The DEQ represents that it has available to it, or
expects that it can obtain within a reasonable period of time, money to make the loan
contemplated by this Loan Agreement
(C) TAX-EXEMPT STAnIS. The Borrower covenants to comply with all provisions
of the Code which are required in order for interest on the Loan to be excluded from gross
income under Section 103(a) of the Internal Revenue Code of 1986 as amended and any
regulations or ruling issued thereunder.
(D) SINGLE AUDIT Acr REQUIREMENTS. The State Revolving Fund (SRF) is
a loan program of the DEQ which operates under the regulations of the U.S.
Environmental Protection Agency and receives capitalization grants through the Catalog
of Federal Domestic Assistance (CFDA) No. 66.458: Capita1i7.ation Grants for State
Revolving Funds. As such, the SRF program and its loan recipients are subject to the
U.S. Office of Management and Budget Circular A-128, "Audits of State and Local
Governments" implementing the Single Audit Act of 1984. Borrowers are subject to
Circular A-128 to the extent that loan proceeds include federal capitalization grant funds.
The DEQ will notify the Borrow~ of the sources of the loan funds after the completion
of each fiscal year. The Borrower is responsible for compliance with A-128 audit
procedures.
(E) AGREEMENT OF BORROWER TO REPAY. The Borrower agrees to repay all
amounts owed on this loan as desaibed in Section 1(J) on page 1. In any cast; the Borrower
agrees to repay all amounts owed on this loan within twenty years of the actual completion
date of the Project.
(F) AumORIZATION.
(1) This Loan Agreement is given as evidence of a loan to the Borrower
made by the DEQ pursuant to ORS Title 21 and ORS Chapters 190, 287, 288, and
468, as amended, and shall be subject to the present regulations of the DEQ and to its
future regulations consistent with the express provisions hereof.
(2) The Borrower bas authorized this agreement pursuant to ORS 468.439
by a resolution or ordinance, which was duly passed by the Borrower's governing
body as described in Section 1(0) on page 2.
(G) TERMINATION OF LoAN AGREEMENT. Upon compliance by the Borrower
with all of its obligations under this Loan Agreement, including payment in full of the Final
Loan Ammmt, accmed interest and fees, this Loan Agreement will terminSlte and the DEQ
shall take the steps necessary to release the DEQ's interest in any collateral given as security
under this Loan Agreement
CITY OP WOODBURN: R98411 : 6117/96
LoAN AGREEMENT
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(H) NOTICES. All notices, payments, statements, demands, costs, approvals,
authorizations, offers, designations, requests or other communications under this Loan
Agreement by either party to the other shall be in writing and shall be sufficiently given and
served upon the other party if delivered by certified mail, return receipt requested, and, if to
the Borrower, addressed to the location listed in Section 1(K) on page 1, "Borrower's
Address, " and if to the DEQ, addressed to:
State Revolving Fund Program
Warer Quality Division
Department of Environmental Quality
811 S.W. Sixth Avenue
Portland, Oregon 97204-1390
or to such other addresses as the respective parties may from time to time designate.
(l) CONTRACf. This Loan Agreement shall constitute a contract between the
Borrower and the DEQ which shall be binding on the parties thereto upon their being
separately executed by the parties. This Loan Agreement including all related loan
docmnents and instruments may not be amended, changed, modified, altered or terminAted
without the written consent of the parties.
(J) FuRTHER INSTRUMENTS. The Borrower and the DEQ agree to execute and
deliver any written instrwnents necessary to cany out any agreement, term, condition or
assurance in this Loan Agreement whenever occasion shall arise and reasonable request for
such instruments shall be made.
(K) ASSIGNMENT. The DEQ shall have the right to transfer the loan or assign this
Loan Agreement at any time after its execution upon written approval of the Borrower. This
Loan Agreement shall be assigned by the Borrower only with the written approval of the
DEQ.
(L) LAWS GoVERNING. This agreement shall be constmed and interpreted in
accordance with the Jaws of the State of Oregon as the same from time to time exist
(M) JURISDICDON OF LmGATION. Any litigation brought under 1his Loan
Agreement shall be conducted in the courts of the county designated by the DEQ or in the
courts of Marion County.
(N) V ALIDrIY AND SEVERABILITY. If any part, term, or provision of this Loan
Agreement, or of any other loan document, shall be held by a comt of competent jurisdiction
to be void, voidable, or unenforceable by either party, the validity of the remaining portions or
CITY OF WOOPBURN : R98411 : 6/17/96
LoAN AGREEMENT
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provisions shall not be affected, and all such remaining portions or provisions shall remain in
full force and effect.
(0) ARTICLE HEADINGS. All heading.~ contained herein are for convenience of
reference only and are not intended to define or limit the scope of any provision of this Loan
Agreement
(P) APPENDICEs. The appendices attached to this Loan Agreement are a part of it
(Q) COUNTERPARTS. This Loan Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all together shall constitute
but one and the same instrument
ARTICLE 4: TERMS, CONSIDERATIONS, AND PROCEDURES
(A) OPINION OF LEGAL COUNSEL The DEQ shall not be obligated to disburse
any funds to the Borrower hereunder unless and until the Borrower has provided the DEQ
with an opinion of the legal counsel to the Borrower, in form and substance satisfactory to the
DEQ, to the effect that:
(1) The Borrower has the power and authority to execute and deliver, and
perform its obligations under this Loan Agreement;
(2) This Loan Agreement has been duly executed, acknowledged where
necessary by the Borrower's authorized representati~ and, to the best knowledge of
such counsel, all other necessary actions have been taken, so that this Loan Agreement
is valid, binding, and enforceable upon Borrower in accordance with its terms, except
as such enforcement is affected by bankruptcy, insolvency, moratorium, or other laws
affecting creditor's rights generally; and
(3) To such counsel's knowledge, this Loan Agreement does not violate any
other agreement, statute, cowt order, or law to which Borrower is a party or by which
it is bound
(4) Interest on the SRF loan is excluded from gross income under Section
l03(a) of the Internal Revenue Code of 1986 as amended and any regulations or ruling
issued thereunder.
(5) Revenues used as security for the loan will not constitute taxes which
are limited by Section lIb, Article XI of the Oregon Constitution.
LoAN AGREEMENT
CITY OF WOODBURN: R98411 : 6/17/96
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(B) BORROWER'S FINANCIAL RECORDS.
(1) The Borrower shall maintain appropriate and complete financial
accounts for this Project, for this debt service fund, and for the loan repayment funding
source at all times dwing the term of this Loan Agreement consistent with Generally
Accepted Government Accounting Standards, Generally Accepted Accounting
Principles, and State Minimum Standards for Audits of Municipal Corporations.
Separate accounting will be performed for the Facility producing the gross sewer
revenues and for the Project.
(2) The Borrower shall retain files and records relating to the Project and
this Loan Agreement for at least three (3) years after the project bas been completed
and all amounts due under this Loan Agreement are fully repaid
(3) Audit Federal enabling legislation and iuIes require an audit of each
SRF loan. DEQ agrees to accept the following as adequate to meet this requirement
<a) A full and complete accounting of Project costs inCWTed
including docmnentation to support each cost element wi1h a snmmmy of the
total costs of the Project and the sources of funding submitted to the DEQ no
more than six months following project completion; and
(b) A copy the Borrower's ann118l audit report provided by
December 31st of each year until the loan is fully repaid
(C) ~URANCE. At its own expense, the Borrower sba1l procure and ynaintain
insurance covenge (including, but not limited to hazard, :0.000 and general liability insurance)
adequate to proteCt DEQ's interest, and in such amounts and 8t?inq such risks as are usually
insmable in comection with similar projects and as is usually carried by entities operating
similar facilities. The Borrower shall maintain this insurance until all amounts due under this
Loan Agreemem are fully repaid, and sha1l provide evidence of such insurance to the DEQ.
Self insurance pD'SWUlt to a recognized municipal program of self insurance shall be adequate
to satisfy this requirement
(0) SEwER RATE COVENANT.
(1) Sewer Rates to Cover Debt Service Payments. The Borrower covenants
with the DEQ and any assignee of this Loan Agreement that the Borrower shall charge
fees in connection with the operation of the sewer system which are adequate to
generate Net Operating Revenues in each fiscal year equal to or greater than the debt
service coverage factor given in Section 1(Q) on page 2 multiplied by the debt service
payments due under this Loan Agreement in that fiscal year.
CITYOFWOOOBURN: R98411 : 6/17/96
LoAN AGREEMENT
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(2) Sewer Rate Adjustments. If the Borrower fails to charge fees at the
level required by this Section, the Borrower shaI1 promptly adjust its fees to assure
future compliance. However, failme to adjust fees shaI1 not constitute an event of
default hereunder if the Borrower transfers funds to the Sewer Fund from other
sources in an amount equal to the deficiency in the year in which the Borrower
discovers the deficiency. Any transfers or deposits to the Sewer Fund shall be
mainblined in the Sewer Food and be used only for pmposes for which the Net
Operating Revenues may be used.
(3) Conditions of Default If the Borrower meets compliance with
paragraph (2) of this section by transfening funds to the Sewer Fund to remedy a
revenue coverage deficiency for two consecutive years, the Borrower may be deemed
to be in default on the loan unless the Borrower can show that sewer rates were raised
by an amooot which should have been sufficient to meet coverage. If sewer rates are
insufficient to cover expenses and debt service for three consecutive years, the
Borrower may be deemed to be in default
(4) Financial Reporting Requirement The Borrower sbal1 provide the DEQ
with a report which demonstrates the Borrower's compliance with the requirements of
this section by December 31st of each year until the loan is repaid If the audit report
described in Section 4(BX3)(b) on page 8 identifies the Net Operating Revenues and
contains a calculation demonstrating whether the Borrower satisfied 1he requirements
of subsection (1) of this section, the audit report described in Section 4(BX3)(b) on
page 8 shall satisfy 1he requirements of this subsection.
(E) LoAN REsERVE ACCOUNT.
(1) The Borrower covenants with the DEQ and any assignee of this Loan
Agreement that the Borrower shall create a restricted Loan Rese1ve Account, which it
sha1l hold in tnJst for dte benefit of the DEQ and any assignee of1his Loan Agreement
The Borrower covenants to use the funds in the Loan Rese1ve Account solely to pay
amounts due hereunder ootil the loan, interest and fees have been fully repaid
(2) The Borrower covenants that it shall deposit an amount equal to the
Loan Reserve Requirement as described in Section 1(R) on page 2 into the Loan
Reserve Account no later than 1he first day on which a disbursement is received
hereunder.
(3) The Borrower covenants that if the balance in 1he Loan Reserve
Account falls below the Loan Reserve Requirement, it will promptly deposit an
amount sufiicient to restore the balance from the first net revenues available after
CITY OF WOODBURN: R98411 : 6/17/96
LoAN AGREEMENT
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payment of the amounts due hereunder unless the deposit has been made previously
from other money of the Borrower.
(F) DISBURSEMENT OF LOAN PROCEEDS.
(1) Bid Documents. The DEQ shall not be obligated to disburse any loan
proceeds to the Borrower hereunder unless and until the Borrower has submitted. a
copy of the awarded contract and bid docwnents to the DEQ for the portion of the
Project costs which will be fimded with the disbursement
(2) Documentation of Expenditmes. The Borrower sbal1 provide the DEQ
with written evidence of materials and labor furnished to and petformed upon the
premises, receipts for the payment of the same, releases, satisfactions and other signed
statements and forms as may be reasonably required by the DEQ.
(3) Adjustments and Corrections. The DEQ may at any time, review and
audit requests for disbursement and make adjustments for, but not limited to, ineligible
expenditmes, mathematical errors, items not built or bought and unacceptable work.
Nothing herein contained sbal1 require the DEQ to pay any amounts for labor or
materials unless satisfied durt such claims are reasonable and durt such labor and
materials were actually expended and used in the completion of the Project. In
addition, the DEQ sbal1 not be required to disbw'se loan proceeds in any amount
greater than the total esVmSltM cost of the work completed at the time of the
disbmsement as determined by the DEQ.
(4) Contract Retainage Disbursement The DEQ will not disburse loan
proceeds to cover contractor retainage unless the Borrower is disbursing retainage to
an escrow account and provides proof of the deposit, or until the Borrower provides
proof durt retained funds were paid to the contractor.
(G) INTEREST EXPENSE. Interest will accrue at the rate specified in Section l(G)
on page 1 from the date that a disbmsement is mailed or delivered to the BOlTOwer, or
deposited into an account of the Borrower. Interest will acaue without compounding using a
365/366 day year until the Final Loan Amount is determined. After the Final Loan Amount is
determined and the :final repayment schedule is prepared, interest on future scheduled
payments will accrue on a 360 day year basis and compound semi-annually on the payment
due dates. Scheduled payments will be applied to interest and principal according to the
repayment schedule, rather than being applied based on the day the payment is received.
(H) FEES.
CITYOPWOODBURN: R98411 : 6/17/96
LoAN AGREEMENT
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STAlL. A~VOLVING FUND
PAGEll
(1) Loan Processing Fee. The Borrower agrees to pay a one-time loan
processing fee of one and one-half percent (1.5%) of the Final Loan Amount The
loan processing fee shall be assessed after the Final Amount is determined and shall be
due and payable as descnDed in Section 1(H) on page 1.
(2) Loan Servicing Fee. The Borrower agrees to pay an annual loan
servicing fee during the repayment period equal to one-half of one percent (0.5%) of
the Outstanding Loan Amount The loan servicing fee shall be assessed and payable
as described in Section 1(1) on page 1. The loan servicing fee shall be calculated based
upon the Outstanding Loan Amount prior to the posting of the payment due on that
date.
(3) Late Payment Fee. The Borrower agrees to pay immediately upon
demand of the DEQ, a late fee equal to five percent (5%) of any loan payment which
is not received by the DEQ on or before the tenth day after such payment is due. This
late fee shall also apply to any loan processing fee or loan servicing fee which is due
on that loan payment due date.
(I) LOAN REPAYMENT.
(1) Final Loan Amount After the final request for loan proceeds is
submitted by the Borrower and disbmsed by the DEQ, the Final Loan Amount will be
determined. The Final Loan Amount is the swn of all disbursements made including
any amounts authorized by loan amendments. The Final Loan Amount is amortized
over the balance of the repayment term specified under "Tenns of Repayment" in
Section 1(J) on page 1.
(2) Interim Payments. The Borrower agrees to make the first repayment on
the loan as stated on the repayment schedule, but, in any case, no later than one year
following the actual completion date of the Project. Semi-annual payments will
continue to be due based upon a Preliminary or revised schedule wtil the Final Loan
Amount is determined and the final repayment schedule is prepared. Any payments
received during this period will be credited first to accmed interest as of the date due
and then to loan principal.
(3) Repayment Schedule. A final repayment schedule will be calculated
after the final disbursement is made and the Final Loan Amowt is detennined. This
schedule will record any interim payments which have already been made. The
reD18ining scheduled payments will amortize the Final Loan Amount over the
reIll8ining number of years or payments specified under "Tenns of Repayment" in
Section 1(1) on page 1. Attached as Appendix A is a provisional repayment schedule
based on the estimated completion date and original Loan Amount.
CITY Of WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
^ . .. -,-~~,-,,~"'-''''''''---'''-''''''' -'., -", <~_.__.,-_......._---,-,",--""~.
...
OR! DEPARTMENT OF ENVIRONMENTAL QUALITY
STATb !{EVOLVING Fmm
PAGEl:l.
(4) Crediting of Scheduled Payments. Scheduled payments will be applied
first to fees due, if any, and then to interest according to the repayment schedule, and
then to principal.
(5) Crediting of Unscheduled Payments. All unscheduled payments,
including any prepayments and partial payments, will be applied :first to fees due, if
any, and then to interest computed using a 365/366 day year, and then to principal.
After an unscheduled payment, the Outstanding Loan Amount will be reamortized at
the same interest rate and payment amount to reduce the loan maturity. After a partial
payment, the Outstanding Loan Am01Dlt will be reamortized at the same interest rate
for the same number of payments to increase the loan payment amount
(6) Final Payment All outstanding loan principal, interest and fees will be
due and payable no later than twenty years after the completion date.
(J) PREPAYMENT.
(1) Optional Prepayment The Borrower may prepay any amo1Dlts owed on
this loan without penalty on any business day upon 24 hours prior written notice.
(2) Matlli9tory Prepayment The Borrower shall prepay all amo1D1ts owed
on this loan upon receipt of notice that the DEQ has accelerated 1he loan in accordance
with the default provisions of this Loan Agreement
(3) Refinancing of Loan by Borrower. . The Borrower warnmts that if it
refinsmr.es the portion of 1he Project financed by this loan, or obtains an additional
grant (I' loan which is intended to finance the portion of 1he Project financed by this
loan, it will prepay the portion of the Loan constituting a double benefit
ARTICLE 5: GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS
(A) REPRESENTATIONS AND W AR.RANTIFS OF THE BORROWER.
(1) The Borrower hereby certifies, recites and declares that all acts,
conditions and things required to exist, happen and be performed precedent to and in
the issuance of this Agreement have existed, have happened, and have been performed
in due time, form and manner as required by law; and that the Loan Am01Dlt together
with all obligations of the Borrower does not, and will not, exceed any limits
prescnbed by the Constitution and Statutes of the State of Oregon or the Borrower's
authority.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
T~~
ORB/ )EPARTMENT OF ENVIRONMENTAL QUALITY
STATh ..~VOLVlNG FUND
PAGE 13
(2) The Borrower warrants that it is a duly fonned and existing municipal
corporation of the State of Oregon and has full corporate and other power to enter into
this Loan Agreem~t
(3) The Borrower wammts that there is no material adverse infonnati~n
relating to the Project or the loan, known to the Borrower~ which bas not been
disclosed to the DEQ.
(4) The Borrower wammts that no litigation exists or has been threatened
which would cast doubt on the enforceability of the Borrower's obligations under this
Loan Agreement
(5) The Borrower wammts that this Loan Agreement does not create any
unconstitutional indebtedness.
(6) The Borrower wamnts that neither the execution of this Loan
Agreement, nor the consummation of the transaetions contemplated hereby, nor the
fulfillment of or compliance with any of the tenns and conditions of this Loan
Agreement, will violate any provision of law~ or any order of any court or other
agency of government, or any agreement or other instrument to which the Borrower is
now a party or by which the Borrower or any of its properties or assets is bound, nor
will same be in conflict wi1h, result in a breach or constitute a default (with due notice
or the passage of time or both) under any such agreement or other instrument, or~
except as provided hereunder~ result in the creation or imposition of any lien, charge or
encumbrance of any nature whatsoever upon any ~f the property or assets of the
Borrower.
(7) The Borrower wammts that any necesS81Y local, state, and federal
li~ permits, and other approvals and authorizations for completion of the Project
have been or will be obtained before the Project begins, and their provisions shall be
complied with during the term of this Loan Agreement
(B) REPRESENTATIONS AND W ARRAN11ES OF THE DEQ. The DEQ represents
and wammts that the Director or the DirectoTs representative has power under ORS 468 and
OAR, Chapter 340, Division 54, to enter into the transaetions contemplated by this Loan
Agreement and to cany out the Department's obligations therelUlder. By proper action of the
State~ the Director and the Director's representative have been duly authorized to execute and
deliver this Loan Agreement and to make the loan as contemplated hereby.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
.
T..
OR!' DEPARTMENT OF ENVIRONMENTAL QUALITY
STA.- .<BVOLVING FUND
PAGE 14
(C) PROJECf AsSURANCES. Nothing in this Loan Agreement prohibits the
Borrower from requiring more assurances, guarantees, or indemnity or other contractual
requirements from any party perfonning Project work.
(D) GENERAL COvENANl'S OF THE BORROWER. The Borrower covenants with
the DEQ that:
(1) The Borrower shall use the loan fimds only for payment of or
reimbursement of costs of the Project in accordance with this Loan Agreement
(2) The Borrower is and will be the owner of the sewer system and the
Project, and shall defend it 8gJ1inst the claims and demands of all other persons at any
time claiming the same or any interest therein.
(3) The Borrower shall not sell, transfer, or encwnber the sewer system
without the prior written approval of the DEQ, which approval shall not unreasonably
be withheld Upon sale of the sewer system or the Project, in whole or in part, to a
private purchaser, this SRF loan shall be immediately due and payable in full.
(4) The Borrower shall undertake the Project, request disbursements under
this Loan Agreement, and use the Loan Amount in full compliance with all applicable
laws and roles of the State of Oregon, including ORS Chapter 468 and Oregon
Administrative Rules Sections 340-54-005 to 340-54-075, as they may be ,",ended
from time to time, and all applicable laws and roles of the United States, including
Title VI of the Clean Warer Act as amended by the Water Quality Act of 1987, Public
Law 100-4 and any subsequent amendments, and.all applicable roles of the U.S.
Environmental Protection Agency. Article 10 lists many of the applicable federa1laws
and authorities ("Cross-Cutters").
(5) To the fullest extent pennitted by law, the Borrower shall indetnnify,
save, defend and hold the DEQ harmless in any action, suit, or claim arising from the
Borrower's failure to comply with any laws, requirements, pennits and licenses
relating to the Project or 1his Loan Agreement
(6) The Borrower shall disburse monies from the loan proceeds solely for
the costs of the Project
(7) Concurrent with the execution and delivety of this Loan Agreement, or
as soon thereafter as practicable, the Bo~ower shall take all steps necessary to cause
the Project to be completed in accordance with all applicable DEQ requirements.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
... ._~..... .,,,,,>.~.......,,",,~, ,._ ."'"...~ ,'_4'" ,'...... ____"_._ ....;.._,~'" ....."'.......p __ .. "c_, ~'.,
ORT DEPARTMENT OF ENVIRONMENTAL QUALITY
ST....- _~VOLVlNG FUND
P"'GE15
(8) If the Loan Amount is not sufficient to pay for the costs of the Project in
full, the Borrower shall pay at its own expenses from its own funds and without any
right of reimbursement from the DEQ all such costs of the Project in excess of the loan
funds and additions thereto.
(9) The Borrower shall take no action which would adversely affect the
eJ.igt.1>ility of the Project as a State Revolving Fund Project, or cause a violation of any
loan covenant herein.
(10) The Borrower shall keep the sewer system in good repair and working
order at all times and operate the system in an efficient and economical manner.
(E) PROJECf COVENANTS OF THE BORROWER. The Borrower covenants with
the DEQ that:
(1) MBE, WBE and SBRA Aftinnative Steps. The Borrower shall promote
a fair share award to Small Businesses in Rural ~ Minority Business Enterprises,
and Women's Business Enterprises on all contract and subcontracts awarded as a part
of the Project.
(2) Smety Bond Unless the DEQ provides a written waiver, the Borrower
shall have all prime contractors execute and deliver a corporate surety bond acceptable
to the DEQ for the faithful perfonnance of the contract or subcontract and payment of
all liens and lienable expenses in connection therewith in a sum equal to the contract
or subcontract price.
(3) Retainage. The Borrower shall include a five percent (5%) retainage
provision in all of the Borrowets contracts for purchases or completion of any part of
1he Project greater in cost than One Hundred Thousand ($100,000) Dollars.
(4) Change Orders. The Borrower shall submit all change orders to the
DEQ. The Borrower shall not use amounts loaned under this Loan Agreement to pay
for costs of any change order which bas not been approved, in writing, by the DEQ.
This subsection shaI1 not prevent the Borrower from approving a change prior to
approval by DEQ, as long as the Borrower accepts the risk of paying for costs of the
change if it is not approved by DEQ.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
."~"
"'17 "f
oar . DEPARTMENT OP ENVIRONMENTAL QUALITY
STA. _~VOLVlNG FuND
PAGE 16
ARTICLE 6: REpRESENTATIONS, WARRANTIES AND COVENANTS RELATING TO
CONSTRUcnON PROJECI'S ONLY
(A) COVENANTS. The Borrower covenants with the DEQ that
(1) Inspections. The Borrower shall provide inspections during the building
of the Project as required by the DEQ to ensure that the Project complies with
approved plans and specifications. These inspections shall be conducted by qualified
inspectors under the direction of a registered civiL mechanical or electrical engineer,
whichever is appropriate. The DEQ or its representatives may conduct interim
building inspections to detennine compliance with approved plans and specifications
and with the Loan Agreement, as appropriate.
(2) Asbestos. The Borrower shall ensure that any removal of asbestos
which may be part of this Project will be performed by parties trained and qualified for
asbestos removal.
(3) Operation and Maintenance Manual. The Borrower shall submit a draft
facility operation and maintenance manual before the project is fifty percent (5001ca)
complete. The Borrower shall submit a facility operation and maintenance manual
which meets DEQ approval before the Project is ninety percent (900Ica) complete.
(4) Alterations After Completion. The Borrower shall not materially alter
the design or structural character of the Project after the completion of the Project
without the written approval of the DEQ.
(B) COSTS ALREADY INCURRED BY mE BORROWER.
(1) The Borrower represents that the amount of constmction costs of the
Project which have been incurred by the Borrower for the Project as of the date of this
Loan Agreement do not exceed the amounts shown in Section 1(M) on page 2.
(2) The DEQ has relied upon Borrower's representation as to the amount of
constmction costs incurred prior to the date of this Loan Agreement If that sum is
within the U.S. Environmental Protection Agency's definition of "refinancing," the
DEQ warrants that that amount is within the exception to the refinancing rule allowed
by the EPA As such, State Revolving Fund rules (40 CPR Part 35) allow
disbursements to be made on a reimbursement basis.
(C) PLANS AND SPECIFICATIONS. The Borrower's plans, specifications and
related documents for the Project will be reviewed and approved by the DEQ.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
~.,. ,.,_.....,-".~.._.. ....-.~---,._-~,,,.,_.._.,._,.>..~,,,.....-~.."''''"''"''.,_._..-.._~'"'
....v
OF \{ DEPARTMENT OF ENVIRONMENTAL QUALITY
5TA ,iW,VOLVING fuND
PAGE L
(D) PROJECI' INITIATION OF OPERATIONS.
(1) The Borrower shall notify the DEQ no more than thirty (30) days after
the actual Project Completion Date.
(2) If the Project is completed, or is completed except for minor items, and
the Project is operable, but the Borrower bas not sent its notice of initiation of
operation, the DEQ may assign an initiation of operation date.
ARTICLE 7: RIGHTS OF'DEQ; LIMITATIONS ON DEQ RESPONSmILmES
(A) QUAUI'Y OF' MATERIALS. The DEQ does not warrant or guarantee the quality
of materials supplied to and which become a part of the Project, the quality of the
worlcmsmdlip performed upon the project, or the extent and stage of completion of the
Project, and no such wananty or guarantee shall be implied by virtue of any inspection or
disbursement made by the DEQ.
(B) LlABILl1Y OF'THE DEQ. It is expressly understood and agreed that the DEQ
will be under no liability of any kind or character whatsoever for payment of labor or
materials or otherwise in connection with the completion of the Project or for the canying out
of contracts entered into by the Borrower with third parties for the completion of the Project.
All costs of material, labor and construction, including indirect costs, sba11 be paid by the
Borrower.
(q RIGHT OF ENTRY AND INSPECI10N. The Borrower will allow the DEQ or its
agents or assignees the right to enter the premises dming reasonable business hours upon
reasonable notice to the Borrower to inspect the Project and for all ofuer lawful pwposes
including the ~Slmining of books and records pertaining to the Project or this Loan
Agreement and to make extracts and copies thereof.
(D) DEQ NOT REQUIRED TO Acr. Nothing contained in this Loan Agreement
shall require the DEQ to incur any expense or to take any action hereunder, and it shall not be
liable to the Borrower for any damages or claims arising out of action taken pursuant to this
Loan Agreement
(E) WAIVERS AND RESERVATION OF RIGHTS.
(1) The waiver by the DEQ of any breach by the Borrower of any tenn,
covenant or condition of this Loan Agreement shall not operate as a waiver of any
subsequent breach of the same or any other term, covenant, or condition of this Loan
Agreement The DEQ may pursue any of its remedies hereunder concurrently or
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
"'t. . - ..
...
.
ORE~ DEPARTMENT OP ENVIRONMENTAL QUALITY
STA"l ~VOLVlNG FuND
PAGE 18
consecutively without being deemed to have waived its right to pursue any other
remedy.
(2) Nothing in this Loan Agreement affects the DEQ's right to take remedial
action, including, but not limited to, administrative enforcement action and actions for
breach of contract again!rt a Borrower that fails to cany out its obligations wder this
Loan Agreement
(F) NONUABILITY OF STATE.
(1) The State and its officers, agents and employees shall not be liable to
the Borrower, or to any other party whomsoever for any death, injmy, damage, or loss
that may result to any person or property by or from any cause whatsoever, arising out
of the Project. The Borrower shall, and does hereby agree to the extent permitted by
law and the Oregon Constitution, to indemnify, defend, save and hold the State, its
officers, agents and employees harmless from and defend each of them avinst any
and all claims, liens and judgments for death ot: injury to, or loss by any person or
damage to property whatsoever occurring in, on or about the premises of the Project or
due to the existence or activities of the Project, and, to the extent permitted by law, any
reasonable attorneys' fees and expense incurred in connection with litigation 9eainst
the State cballeDging or questioning the validity of this Loan Agreement, the existence
or activities of the Project or actions, con~ permits, or licenses obtained, agreed
to, or performed by the Borrower in connection therewith.
(2) Any findings by the Department concerning the Project and any
inspections or analyses of the Project by the DEQ are for pmposes of determining
eligibility for the loan and disbursement of loan proceeds only and do not constitute an
endorsement of the feastoility of the "Project or its components or an assmance of any
kind for any other pmpose.
(3) Review and approval of facilities plans, design drawings and
specifications or other documents by or for the DEQ does not relieve the Borrower of
its responsibility to properly plan, design, build and effectively operate and maintain
the Facility as required by law, regulations, permits and good tn9l1agement practices.
ARnCLE 8: DEFAULT AND REMEDIES
(A) " EvENTS OF DEFAULT. The occurrence of one or more of the following events
shall constitute an Event of Default, whether occurring voluntarily or involuntarily, by
opemtion of law or pursuant to any order of any court or governmental agency:
QTY OP WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
'f-
.-. ...
ORF' ~'l DEPARTMENT OF ENVIRONMENTAL QUALITY
STA .EVOLVING FUND
-
PAGE IS
(1) The Borrower's failure to make any loan payment within thirty (30)
days after the payment is scheduled to be made according to the repayment schedule;
(2) The Borrower's failure to comply in any material respect with any other
covenant, condition, or agreement of the Borrower hereunder for a period of thirty (30)
days after notice thereof from the DEQ;
(3) The DEQ reasonably detennines that any representation or wananty
made by the Borrower hereunder was untIUe in any material respect as of the date it
was made;
(4) Tbe Borrower becomes insolvent or admits in writing an inability to pay
its debts as they mature or applies for, consents to, or acquiesces in the appointment of
a trustee or receiver for the Borrower or a substantial part of its property; or in the
absence of such application, consent, or acquiescence, a trustee or receiver is
appointed for the Borrower or a substantial part of its property and is not discharged
within sixty (60) days; or any bankruptcy, reorvni7JIUon, debt arrangement or
moratoriwn or any dissolution or liquidation proceeding, is instituted by or avinst the
Borrower and, if instituted agtlinst the Borrower, is consented to or acquiesced in by
the Borrower or is not dismissed within ninety (90) days; or
(5) The DEQ reasonably determines that, as a result of any changes in the
Constitution of the United States of America or the Oregon Constitution or as a result
of any legislative, judicial, or administrative action, any part of this Loan Agreement
shall have become void or unenforceable or impossible to perform in accordance with
the intention and pmposes of the parties hereto, or shall have been declared unlawful.
(B) REMEDIES. If the DEQ determines that an Event of Default has occurred, the
DEQ may:
(1) Declare the Outstanding Loan Amount plus any unpaid accmed interest
and fees immediately due and payable;
(2) Cease making disbmsement of loan proceeds, or make some
disbmsements ofloan proceeds and withhold or refuse to make other disbursements;
(3) Appoint a receiver at the expense of the Borrower to operate the Facility
and collect the gross revenues;
(4) Pay, compromise or settle any liens on the premises or the Project or
pay other sums required to be paid by the Borrower in connection with the Project, at
the DEQ's discretion, using the loan proceeds and such additional money as may be
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
.~ ',..-'
ORPr~~ DEPARTMENT OF ENVIRONMENTAL QUALITY
STA EVOLVING FUND
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PAGE 2(,
required. In the event of payment by the DEQ, or any payment out of the loan
proceeds secured hereby, of any encumbrance, lien, claim, or demand, the DEQ may,
at its option, be subrogated to the extent of the amount of such payment to all the
rights, powers, privileges, and remedies of the payor or payee, as the case may be, and
any such subrogation rights shall be additional cumulative security for 1his Loan
Agreement;
(5) Direct the State Treasurer to withhold any amounts otherwise due to the
Borrower from the State of Oregon and, to the extent pennitted by Law, direct 1hat
such funds be applied to the amomts due to the DEQ under 1his Loan Agreement and
be deposited into the State Revolving Fund;
(6) Compel the specific perfonnance of any term, covenant, or condition of
this Loan Agreement; and
(7) Pursue any other legal or equitable remedy it may have.
(C) ATfORNEYS' FEES AND ExPENSES. In the event the Borrower shall default
under any of the provisions of 1his Loan Agreement and the DEQ shall employ attorneys or
incur other expenses for the DEQ's successful enforcement of or the performance or
observance of any obligation or agreement on the part of the Borrower contained therein, the
Borrower agrees 1hat it will, upon demand thereof: pay to the order of the DEQ the reasonable
fee of such attorneys and other expenses incurred by the DEQ.
ARTICLE 9: SRF PROCEDURES MANUAL
The Oregon Administrative Rule references the State Revolving Fund Procedmes Manual for
guidance on many aspects of Section 212 publicly-owned treatment works projects. This
guidance is written with the intent of assisting the BolTOwer with important issues. Borrowers
are strongly encouraged to consider and fonow the guidance when applicable. Some sections
of the guidance will be required in order to meet DEQ plan review and approval standards.
ARTICLE 10: APPLICABLE FEDERALAUTBORITIES AND LAWS (UCROSS-CUTIERSU)
(A) ENVIRONMENTAL LEGISLATION:
Archaeological and Historic Preservation Act of 1974, PL 93-291.
Clean Air Act, 42 D.S.C. 7506(c).
Coastal Barrier Resources Act, 16 D.S.c. 3501, et seq.
Coastal Zone Management Act of 1972, PL 92-583, as amended.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
."--~"- .
..
o~ DEPARTMENT Of ENVIRONMENTAL QUALITY
ST. .EVOLVING FUND
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PAGE 2
Endangered Species Act 16 D.S.C. 1531, et seq.
Executive Order 11593, Protection and Enhancement of the Cultural Environment
Executive Order 11988, Floodplain Management
Executive Order 11990, Protection ofWedands.
Fannland Protection Policy Act, 7 D.S.C. 4201, et seq.
Fish and Wildlife Coordination Act, PL 85-624, as amended.
National Historic Preservation Act of 1966, PL 89-665, "as amended.
Safe Drinking Water Act, Section 1424(e), PL 92-523, as amended.
Wdd and Scenic Rivers Act, PL 90-542, as amended.
Federal Water Pollution Control Act Amendments of 1972, PL 92-500.
(B) EcONOMIC LEGISLATION:
Demonstration Cities and Metropolitan Development Act of 1966, PL 89-754, as amended.
Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including
Executive Order 11738, Administration of the Clean Air Act and the Federal Water
Pollution Control Act with Respect to Federal Contracts, Grants or Loans.
(C) SOCIAL LEGISLATION:
Age Discrimination Act, PL 94-135.
Civil Rights Act of 1964, PL 88-352, as amended, 42 U.S.C. 2000d et seq.
Section 13 of PL 92-500; Prohibition against Sex Discrimination under the Federal Water
Pollution Control Act
Executive Order 11246, Equal Employment Opportunity.
Executive Order 11625 and 12138, Women's and Minority Business Enterprise.
Section 504 of the Rehabilitation Act of 1973, PL 93-112 (mcluding Executive Orders 11914
and 11250), as amended, 29 U.S.C. 794.
(D) MIsCElLANEOUS AumORITY:
Uniform Relocation and Real Property Acquisition Policies Act of 1970, PL 92-646.
Executive Order 12549 and 40 CPR. Part 32, Debannent and Suspension.
DiscloSW'e of Lobbying Activities, Section 1352, Title 31, U.S. Code.
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
....=.."... .".._..,.,_.,_.__,......._...._~..~. .._ .._"""'.,.._~...+-O~"._.".,..,' _',. ,-,.,-""""',",""'~~~'---'
ORBO'lN DEPARTMBNT OF ENVIRONMBNTAL QUALITY
STI BVOLVlNG FuND
-
PAGB 2~
ARTICLE 11: LoANExEcunON
This loan agreement is executed between the STATE OF OREGON DEPARTMENT OF
ENVIRONMENTAL QUAUfY (the "DEQ") and the CITY OF WOODBURN (the "Borrower")
effective as of the date indicated in Section l(E) on page 1.
BORROWER: CITY OF WOODBURN
-I. //
< ,...L/ (y -I ..----
'----/' L-~~~A .7) / j'v.:;L/J--/
Authorized cer
Typed Name: N A- fIJ [\1 A- - J!, I~ S E. '/
Title: (\/\1+ \./ D rt---
(;;-<:2'- q~
Date
STATE OF OREGON,
County of tv1 a r " ()vj
)
)
)
This insUument was acknowledged before me on -J u rJ e.. d CoI I q f;/ ~ .
by JJ Q neL! A. J~ V k<'~~i as the IV? A \/ oiL of the City ofWoodbum.
Name Title
~) _ OfFICIAL SSEATl L
.;) . KAV L. VE A
(;;!. . ..! NOTARY PUBLIC-OREGON
'!:)\~ COMMISSION NO. 025549
~~ MY COMMISSION EXPIRES AUG 6. 1997
~!:~.......- ~
~A/I ;{. .//~/J !at
NotaIy PubliJ for Oregon
My comml~on expires: g - '" .q 7
DEQ: STATE OF OREGON DEPARTMENT OF ENvIRONMENTAL QUALITY
Authorized Officer
Typed Name: Langdon Marsh
Title: Director
Date
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREBMENT
lI'T
.-- T'-"
0; ~ DEPARTMENT OF ENVIRONMENTAL QUALITY
ST......~ REvOLVING FUND PAGE ':t..
APPENDIX A: PRELIMINARY REPAYMENT SCHEDULE
BORROWER: CITY OF WOODBURN ANNUAL INTEREST RATE: 3.93%
SRF LOAN NO.: R98411 TERM IN YEARS: 20
LOAN AMOUNT: $ 4,000,000.00 PAYMENT AMOUNT: $147,792.37
Due ___________________PAyMENT------------------- Principal
Date pmt# Principal Interest Fees Total Balance
$4,000,000.00
7/1/98 1 0.00 78,600.00 60,000.00 138,600.00 4,000,000.00
12/31/98 2 69,192.37 78,600.00 20,000.00 167,792.37 3,930,807.63
7/1/99 3 70,552.00 n ,240.37 0.00 147,792.37 3,860,255.63
12/31/99 4 71,938.35 75,854.02 19,301.28 167,093.65 3,788,317.28
7/1/00 5 73,351.94 74,440.43 0.00 147.792.37 3,714,965.34
12/31/00 6 74,793.30 72,999.07 18,574.83 166,367.20 3,640,172.04
711/01 7 76,262.99 71,529.38 0.00 147,792.37 3,563,909.05
12/31/01 8 77,761.56 70,030.81 17,819.55 165,611.92 3,486,147.49
7/1/02 9 79,289.57 68,502.80 0.00 147,792.37 3,406.857.92
12/31/02 10 80,847.61 66,944.76 17,034.29 164,826.66 3,326,010.31
7/1/03 11 82,436.27 65,356.10 0.00 147.792.37 3,243,574.04
12/31/03 12 84,056.14 63,736.23 16.217.87 164.010.24 3,159,517.90
7/1/04 13 85,707.84 62,084.53 0.00 147,792.37 3,073,810.06
12/31/04 14 87,392.00 60,400.37 15,369.05 163,161.42 2,986,418.06
7/1/05 15 89,109.26 58,683.11 0.00 147,792.37 2,897,308.80
12/31/05 16 90,860.25 56,932.12 14.486.54 162,278.91 2,806.448.55
7/1/06 17 92,645.66 55,146.71 0.00 147,792.37 2,713,802.89
12/31/06 18 94.466.14 53,326.23 13,569.01 161.361.38 2,619,336.75
7/1/07 19 96,322.40 51,469.97 0.00 147,792.37 2,523,014.35
12/31107 20 98,215.14 49,577.23 12,615.07 160,407.44 2,424,799.21
7/1/08 21 100,145.07 47.647.30 0.00 147,792.37 2,324,654.14
12/31/08 22 102,112.92 45,679.45 11,623.27 159,415.64 2,222,541.22
7/1/09 23 104.119.44 43,672.93 0.00 147,792.37 2,118,421.78
12/31109 24 106,165.38 41,626.99 10,592.11 158,384.48 2,012,256.40
7/1/10 25 108,251.53 39,540.84 0.00 147,792.37 1,904,004.87
12/31110 26 110,378.67 37,413.70 9.520.02 157,312.39 1,793,626.20
7/1/11 27 112,547.62 35,244.75 0.00 147,792.37 1,681,078.58
12/31/11 28 114,759.18 . 33,033.19 8,405.39 156,197.76 1,566.319.40
7/1/12 29 117,014.19 30,778.18 0.00 147.792.37 1,449.305.21
12/31/12 30 119,313.52 28,478.85 7,246.53 155,038.90 1,329,991.69
7/1/13 31 121,658.03 26.134.34 0.00 147,792.37 1,208,333.66
12/31/13 32 124,048.61 23,743.76 6,041.67 153,834.04 1,084,285.05
7/1/14 33 126,486.17 21,306.20 0.00 147,792.37 957,798.88
12/31/14 34 128,971.62 18,820.75 4,788.99 152,581.36 828,827.26
7/1/15 35 131,505.91 16,286.46 0.00 147,792.37 697,321.35
12/31/15 36 134,090.01 13,702.36 3,486.61 151,278.98 563,231.34
7/1/16 37 136,724.87 11,067.SO 0.00 147,792.37 426,506.47
12/31/16 38 139,411.52 8,380.85 2,132.53 149,924.90 287,094.95
7/1/17 39 . 142t15.0.~5__ __ _d 5,641042_ . 0.00 147.7~.37 144,944.00
12/31/17 40 144,944.00 2,848.15 724.72 148,516.87 0.00
TOTALS $ 4,000,000.00 $ 1 ,842,502.21 $ 289,549.33 $ 6,132,051.54
LoAN AGREEMENT
CITY OF WOODBURN : R98411 : 6/17/96
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ORfiGClN DEPARTMENT OF ENVIRONMENTAL QUALITY
STJ EVOLVING FuND
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APPENDIX B: RESOLlITION
[Attach copy of the Resolution approving the loan)
PAGE 24
CITY OF WOODBURN : R98411 : 6/17/96
LoAN AGREEMENT
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