Sewer loan with NDEQ04 J'AE ST4?� 1.
a
Dave Heineman
�0 ak Governor
� 1s` 1B
TRANSMITTAL FORM
TO: Brenda Wheeler, Clerk
218 So. 16 Street
Blair, NE 68008
Mary Bra ROM. Mar Brad Federal Aid Administrator'/
ENCLOSED OR ATTACHED IS THE FOLLOWING:
DEPARTMENT OF ENVIRONMENTAL QUALITY
Michael J. Linder
Director
Suite 400, The Atrium
1200 `N' Street
P.O. Box 98922
Lincoln, Nebraska 68509 -8922
Phone (402) 471 -2186
FAX (402) 471 -2909
website: www.deq.state.ne.us
Blair, Nebraska
Executed Loan Contract and Principal Forgiveness Document
CWSRF Project No. C317638
X FOR YOUR INFORMATION FOR NECESSARY ACTION
AS REQUESTED PLEASE RETURN
REVIEW & COMMENT OTHER:
u_'
STATE OF NEBRASKA
An Equal Opportunity /Affirmative Action Employer
4 Printed with soy ink on recycled paper
Financial Assistance Section
Water Quality Division
PHONE:
(402) 471 -4269
FAX:
(402) 471 -2909
E -MAIL:
mary.bradyOnebraska.Qov
DATE:
April 6, 2011
ENCLOSED OR ATTACHED IS THE FOLLOWING:
DEPARTMENT OF ENVIRONMENTAL QUALITY
Michael J. Linder
Director
Suite 400, The Atrium
1200 `N' Street
P.O. Box 98922
Lincoln, Nebraska 68509 -8922
Phone (402) 471 -2186
FAX (402) 471 -2909
website: www.deq.state.ne.us
Blair, Nebraska
Executed Loan Contract and Principal Forgiveness Document
CWSRF Project No. C317638
X FOR YOUR INFORMATION FOR NECESSARY ACTION
AS REQUESTED PLEASE RETURN
REVIEW & COMMENT OTHER:
u_'
STATE OF NEBRASKA
An Equal Opportunity /Affirmative Action Employer
4 Printed with soy ink on recycled paper
CONTRACT FOR LOAN
BETWEEN
NEBRASKA DEPARTMENT OF ENVIRONMENTAL QUALITY
AND
THE CITY OF BLAIR, NEBRASKA
PROJECT NO. C317638
This Contract, for a Loan (hereinafter "Loan Contract "), dated as of April 1, 2011, is entered into by and
between the State of Nebraska, acting by and through the Nebraska Department of Environmental Quality
(hereinafter "NDEQ ") and the City of Blair, Nebraska,. (hereinafter "Municipality ").
WITNESSETH THAT:
WHEREAS, the Federal Water Quality Act of 1987 (hereinafter "Federal Act ") established a state
revolving fund program; and
WHEREAS, to fund the state revolving fund program, the Environmental Protection Agency (hereinafter
"EPA ") will make annual capitalization grants to the states under CFDA #66.458, on the condition that each
state provide an appropriate match for such state's revolving fund; and
WHEREAS, Neb. Rev. Stat. §81- 15,153 empowers the NDEQ to loan available funds in the Wastewater
Treatment Facilities Construction Loan Fund (hereinafter "Fund ") to municipalities pursuant to the
Wastewater Treatment Facilities Construction Assistance Act (hereinafter "Act ") and rules and regulations
adopted under such Act; and
WHEREAS, under the Act, the Director of NDEQ is given the responsibility for administration and
management of the Fund; and
WHEREAS, the Director of NDEQ and the Nebraska Investment Finance Authority (hereinafter "NIFA ")
have entered into a Memorandum of Understanding effective November 1, 2000 (hereinafter "MOU "), to
define the cooperative relationship between NDEQ and NIFA to jointly administer certain provisions of the
Act; and
WHEREAS, NIFA is authorized under Neb. Rev. Stat. §58 -201 et. seq. and the Act to issue revenue
bonds for the purpose of providing funds for NDEQ to loan to Municipalities within the State of Nebraska for
the acquisition, construction, improvement, repair, rehabilitation, or extension of municipal wastewater
treatment projects (as defined in the Act), in. order to provide the state match requirements of the Federal
Act; and
WHEREAS, pursuant to such authorization, NIFA proposes to issue its Wastewater Treatment Facilities
Construction Loan Fund revenue bonds for the purpose of providing funds to NDEQ to loan to Nebraska
Municipalities to pay those eligible portions of the costs of acquiring, constructing, improving, repairing,
rehabilitating or extending municipal wastewater treatment projects (as defined in the Act), in order to provide
the state match requirements of the Federal Act; and
WHEREAS, NDEQ intends to enter into a pledge agreement with NIFA (the "Pledge Agreement "),
pursuant to which NDEQ will pledge the interest portion of Loan Repayments (as defined herein) and certain
other revenues to NIFA for the payment of the principal of, redemption premium, if any, and interest on Clean
Water State Revolving Fund Revenue Bonds which may be issued by NIFA from time to time; and
WHEREAS, the City of Blair, Nebraska is a "Municipality" as defined in Neb. Rev. Stat. §81- 15,149(7);
and
WHEREAS, the project (hereinafter "Project ") to be financed under this Loan Contract, includes the
engineering and construction of a new 10 inch sanitary sewer main in College Drive from 23 Street to 2758
College Drive; and
WHEREAS, the Project Cost is based upon estimates of the Municipality and at times during or at
completion of construction the loan amount may be adjusted by the NDEQ pursuant to Section 2.01; and
WHEREAS, the Project is included in the NDEQ Intended Use Plan; and
WHEREAS, the NDEQ has approved the Municipality's application for a Loan from federal funds and the
state match requirement if and when received by and made available to NDEQ pursuant to the Federal Act
and the Act to finance Project Costs;
NOW, THEREFORE, for and in consideration of the award of the Loan Contract by NDEQ, the
Municipality agrees to complete its Project and to perform under this Loan Contract in accordance with the
conditions, covenants and procedures set forth below:
ARTICLE
DEFINITIONS
Definitions The following terms as used in this Loan Contract shall, unless the context clearly requires
otherwise, have the following meanings:
"Act" means the Wastewater Treatment Facilities Construction Assistance Act, Neb. Rev. Stat. §81-
15,147 et seq., as amended.
"Authorized Representative" means the person or persons authorized pursuant to a resolution or
ordinance of the governing body of the Municipality to perform any act or execute any document relating to
this Loan Contract.
"Cut -off Date" means the date established by NDEQ at the Project's final inspection prior to which the
Municipality will make the final disbursement request for eligible Project Costs.
"Due Date" means the dates specified for payment of principal and interest on the Loan as specified in
Section 2.05(x).
"Event of Default" means any occurrence or event specified in Article V.
"Fund" means the Wastewater Treatment Facilities Construction Loan Fund.
"Initiation of Operation" means the date on which the Municipality places the Project in operation or the
Project is capable of being placed in operation for the purposes for which it was planned, designed, and built.
"Late Payment" means any payment that is not received within fifteen days of the due date.
"Loan" means the loan made by NDEQ to the Municipality to finance or refinance a portion of the Costs
of the Project pursuant to this Loan Contract.
"Loan Amount" means the amount specified in Section 2.01 hereof which NDEQ has agreed to disburse
to the Municipality subject to the terms, provisions, and conditions of this Loan Contract and the availability of
State and Federal Funds.
"Loan Contract" means this Loan Contract, including the Exhibits attached hereto, as it may be properly
supplemented, modified or amended.
"Loan Repayments" means the payments payable by the Municipality pursuant to Section 2.05 of this
Loan Contract.
"Loan Terms" means the terms of this Loan Contract provided in Article II of this Loan Contract.
"Municipality" means the Nebraska municipality that -is a party to and is described in the first paragraph of
this Loan Contract, and its successors and assigns.
"NDEQ" means the Nebraska Department of Environmental Quality established pursuant to Neb. Rev.
Stat. §81- 1501.et. seq., as amended.
"NIFA" means the Nebraska Investment Finance Authority, a public body politic and corporate and an
instrumentality of the State, and its successors and assigns established pursuant to Neb. Rev. Stat. §58 -201
et. seq., as. amended.
"Project" means the acquisition, construction, improvement, repair, rehabilitation or extension of
Wastewater Treatment Works of the Municipality described herein, which constitutes a project for which
NDEQ is making a Loan to the Municipality pursuant to this Loan Contract.
"Project Costs" means eligible costs associated with secondary or tertiary treatment and appurtenances;
infiltration and inflow correction, major sewer system rehabilitation; new collector sewers and appurtenances;
new interceptors and appurtenances; land integral to the treatment process; correction of combined sewer
overflows; and other costs eligible under the Federal Act including capitalized interest. Project Costs do not
include the costs of water rights and for land which is not integral to the treatment process, easements and
rights -of -way, legal costs, fiscal agents fees, operation and maintenance costs and municipal administrative
costs. Project Costs are described in Attachment B.
"Regulations" means Title 131, Nebraska Department of Environmental Quality, and any amendments
thereto promulgated by NDEQ pursuant to the Act.
"Retainage" means construction costs held back by the municipality from the payments due to the
contractor to assure satisfactory completion of the construction contract.
"State" means the State of Nebraska acting, unless otherwise specifically indicated, by and through
NDEQ and its successors and assigns.
"Trustee" means the trustee under any trust indenture with respect to the revenue bonds the proceeds of
which are deposited in the Fund.
"User Charge System" means the methodology used to assess user charge fee(s) for the users of the
Sewer System within the Municipality's jurisdiction.
"Wastewater Treatment Works" or the "Sewer System" (also known as sewage disposal plant and
sanitary sewer system) means the structures, equipment and processes required to collect, transport and
treat domestic or industrial wastes and to dispose of the effluent and sludges.
"Wastewater User Charge" means the revenues derived by the Municipality from the fees and charges
for the use and services furnished by or through the Municipality's Wastewater Treatment Works. Revenues
of the Sewer System shall include, without limitation, (a) receipts from all charges imposed upon users of the
Sewer System for service provided by the Sewer System and (b) receipts from hook up fees, tap fees,
capital facilities charges connected with the use or right to use the Sewer System or any part thereof
(specifically including the Project) whether any such receipts (as described in (a) or (b) of this sentence) are
directly received by the City from customers or indirectly through inter -local or other agreements with other
political subdivisions.
3
ARTICLE II
LOAN CONDITIONS AND TERMS
Section 2.01. Amount of the Loan Subject to all of the terms, provisions and conditions of this Loan
Contract, and subject to the availability of State and Federal funds, NDEQ will loan an amount of four
hundred thousand dollars ($400,000) to the Municipality to pay a portion of the Project Costs described in
Attachment B hereto. Principal Forgiveness provided is 19.0% of the disbursed Loan Amount up to seventy
six thousand dollars ($76,000). The forgiveness of a portion of the principal of the Loan, if any, shall be
effective only upon the completion of the Project in accordance with this Loan Contract, as determined by
NDEQ, and Initiation of Operation. The amount of such Principal Forgiveness shall be stated on the final
Attachment A repayment schedule prepared by NDEQ following disbursement of the full Loan Amount and
Initiation of Operation. The final actual amount of the Loan (and any Principal Forgiveness) may be reduced
without revision of any other terms, provisions or conditions of this Loan Contract, other than adjustment by
NDEQ to the Repayment Schedule in Attachment A hereto, to reflect reductions in the estimated or actual
total Project Costs as impacted by opening of bids for construction, change orders, final actual costs, and
prepayments. The Municipality must make provision for the payment of all eligible costs exceeding the Loan
Amount. The NDEQ may provide supplemental loan funds through a separate loan contract. Receipt of any
supplemental loan funds is dependent on availability of unobligated funds in the Fund and any obligation of
additional funds to this Project is at the sole discretion of NDEQ with such revised or additional terms,
conditions, and covenants as NDEQ may require.
Section 2.02. Term of the Loan The Municipality agrees to fully repay the Loan with interest on the date
of Initiation of Operation or to begin repayment of principal and interest on the Loan within one (1) year from
the date of Initiation of Operation but no later than three (3) years from the date of the Loan, and to repay
such Loan in full no later than twenty (20) years from Initiation of Operation and to pay all principal, interest,
administrative fees and penalty fees when due. The municipality shall provide NDEQ 60 days written notice
of its intent to repay the Loan all or in part on the date of the Initiation of Operation.
Section 2.03. Interest Rate The interest rate on this loan is determined by the NDEQ pursuant to
Regulations and the Intended Use Plan. The interest rate on this loan during construction is 2.0 percent and
after the date of Initiation of Operation is 2.25 percent per annum (calculated on the basis of a year equaling
360 days made up of 12 months of 30 days each) to be paid as set out in Attachment A. For the purposes of
this paragraph "construction" shall mean the period between the date of this Loan and the date of Initiation of
Operation.
Section 2.04. Disbursement Of Loan Upon receipt of a disbursement request for work completed and
certification by the Municipality, the NDEQ agrees to disburse the principal amount of the loan set out in
Section 2.01 of this Article during the progress of the Project for Project Costs. The Municipality may obtain
a copy of the disbursement record upon request to NDEQ. Each disbursement shall be upon ACH by the
State of Nebraska and shall be equal to that portion of the unobligated principal amount incurred to the date
of the request for disbursement from the Municipality. Submitted requests for disbursement must be
supported by proper invoices for Project Costs, a certificate of the Authorized Representative to the effect
that all representations made in this Loan Contract remain true as of the date of the request and that no
adverse developments affecting the financial condition of the Municipality or its ability to complete the Project
or to repay the Loan have occurred since the date of this Loan Contract, or of the previous disbursement,
and other documentation acceptable to and approved by the NDEQ. All disbursement requests must be
made prior to the Cut -off Date established at the Project's final inspection by NDEQ.
The Municipality may request disbursement for eligible Project Costs, when such Project Costs have
been incurred and are due and payable to project contractors. Retainage withheld by the municipality on
contracts will be withheld by the NDEQ until such Retainage is either reduced or released to the contractor
by the Municipality. However, actual payment of such Project Costs by the Municipality is not required as a
condition of a payment request.
4
The Municipality shall submit a draft of the operation and maintenance manual for the Project to the
NDEQ before disbursements exceed 75% of the Project Costs. The Municipality shall submit a final
operation and maintenance manual to the NDEQ and receive approval before disbursements exceed 95% of
the Project Costs.
Section 2.05. Loan Payments
(a) Principal and Interest Payments The Municipality shall pay to the NDEQ, or at the direction of
NDEQ, to NIFA or the Trustee on or before the due dates specified below, but only from the sources
specified in Section 3.02 hereof, appropriate installments of principal and interest until all principal and
interest due on the Loan to the NDEQ has been paid in full. Installments of principal and interest (total Loan
service) shall be paid semiannually on December 15 and June 15 of each year in accordance with the Loan
Repayment Schedule in Attachment A.
The NDEQ will send the Municipality an invoice 30 days prior to the due date. When a loan
disbursement occurs after invoices are mailed, the NDEQ will include adjustments for interest and fee
charges on the next semiannual invoice.
(b) Prepayment of the Loan The Municipality may prepay the Loan, together with any accrued interest
in whole or in part, at any time without penalty upon giving 60 days written notice to NDEQ of its intent to
prepay. The Municipality may make a partial prepayment of the Loan only if the prepayment amount is
greater than the lesser of 10% of the outstanding amount of the Loan or $50,000. A new Attachment A will
be prepared by NDEQ following receipt of any partial prepayment of the Loan.
Section 2.06. Administrative Fee The Municipality shall pay to the NDEQ, or at the direction of NDEQ,
to NIFA or the Trustee an annual administrative fee of 1% per annum of the Loan Amount to be paid in
semiannual installments of 0.5% of the Loan Amount outstanding on the date invoices are mailed in
accordance with the Loan Repayment schedule in Attachment A. The fee is waived for the first year of the
Loan.
Section 2.07. Schedule Of Compliance The Municipality agrees to perform steps of the Project in
accordance with the following schedule of milestone dates.
(a). April 2011, Loan date
(b). July 2011, Start Construction Design
(c). January 2012, Bid
(d). April 2012, Construction Start
(e). August 2012, Initiation of Operation
(f). August 2012, Substantial completion of construction
Section 2.08. Disadvantaged Business Enterprises (Small Business Enterprise /Minority Business
Enterprise /Women's Business Enterprise /Small Business Rural Area), including Historically Black Colleges
and Universities (hereinafter "DBE /HBCU "). The Municipality agrees that ten percent of the Loan Amount
shall be the objective for proposed DBE, HBCU subagreement work under this Loan Contract. The
Municipality shall take affirmative steps to assure that small, minority, and women's businesses pursuant to
40 CFR 31.36(e) and small businesses rural areas pursuant to 13 CFR 121.2 are used when possible as
sources of supplies, construction and services. Affirmative steps shall include the following:
(a) Placing disadvantaged business enterprises, including minority, women's, small businesses
and small businesses in a rural area and historically black colleges and universities on solicitation
lists;
(b) Assuring that disadvantaged business enterprises, historically black colleges and universities
are solicited whenever they are potential sources;
(c) Dividing total requirements, when economically feasible, into smaller tasks or quantities to
permit maximum participation by disadvantaged business enterprises;
(d) Establishing delivery schedules, where the requirement permits, which encourage
participation by disadvantaged business enterprises;
(e) Using the services and assistance of the Small Business Administration and Minority
Business Development Agency of the U. S. Department of Commerce; and
(f) Requiring the prime contractor to take the affirmative steps listed above.
In addition, the Municipality agrees to submit to the NDEQ a completed SF 334 form within 15 days after
the end of each federal fiscal quarter during which the Municipality or its contractors award any
subagreements to a disadvantaged business enterprise for building and building- related services and
supplies.
Section 2.09. Sewer Use Ordinances /User Charge Systems The Municipality agrees to obtain approval
from the NDEQ of its sewer use ordinance /User Charge System, and to adopt and implement any necessary
changes before the Project is placed in operation. The Municipality agrees that it shall not modify or amend,
or make additions to or deletions from its sewer use ordinance /User Charge System without the consent of
NDEQ during the useful life of the Project, provided, however, that any increase in rates and charges
necessary or deemed necessary by the governing body of the Municipality in order to comply with the
provisions of any ordinance or any other agreement relating to any revenue bonds or other revenue
obligations for which the revenues of the Sewer System have been pledged or any increase deemed
necessary by the governing body of the Municipality in order to permit the issuance of or provide for the
payment of additional revenue bonds or other additional revenue obligations may be made without the
consent of NDEQ.
Section 2.10. Other Conditions and Terms.
(a) Engineering Services. The Municipality shall provide and maintain competent and adequate
engineering supervision and resident inspection during construction.
(b) Construction Contract Award. The Municipality shall obtain NDEQ concurrence and
authorization prior to award of the construction contract.
(c) Initiation and Operation. The Municipality shall provide written notification to the NDEQ of the
date of Initiation of Operation of the Project.
(d) Construction Completion. The Municipality shall provide written notification to the NDEQ of
the construction completion date of the Project.
(e) Long Term Planning The Municipality agrees to develop and implement a long term
wastewater treatment works management plan for the term of the Loan, including yearly renewals. This plan
shall recognize the cost relationship between the Project and future projects.
(f) Contractor's Security The Municipality agrees to require any contractor of the Project to post
separate performance and payment bonds or other security approved by NDEQ in the amount of the bid.
L
(g) Certified Operator The Municipality agrees to provide a certified operator pursuant to Title
197 - Rules and Regulations for the Certification of Wastewater Treatment Facility Operators in Nebraska.
(h) Site Title and Easements The Municipality must certify that site title for all easements and
rights -of -way necessary to allow construction of the Project have been obtained prior to award of the
construction contract (i.e., all real property has been acquired, bonafide options have been taken or formal
condemnation proceedings have been initiated for necessary real property).
(i) Contractors Payments The Municipality agrees to make prompt payment to its contractor(s)
of sums due for construction and to retain only such amounts as may be justified by specific circumstances
and provisions of the construction contract.
statement:
(j) Bid Solicitation The Municipality agrees that all bid solicitations will include the following
"The prospective participants must certify by submittal of EPA Form 5700 -49 "Certification
Regarding Debarment, Suspension and Other Responsibility Matters" that, to the best of its
knowledge and belief, it and its principals are not presently debarred, suspended, proposed for
debarment, declared ineligible or voluntarily excluded from covered transactions by any federal
department or agency."
(k) Debarment Suspension The Municipality acknowledges that doing business with any party
appearing in the "List of Parties Excluded from Federal Procurement or Non Procurement Programs" may
result in disallowance of federal funds under this Loan Contract and may also result in suspension or
debarment under 40 CFR Part 32.
(1) Other Federal Requirements The Municipality agrees to comply with other applicable Federal
Requirements in Attachment D hereto.
ARTICLE III
REPRESENTATIONS AND COVENANTS OF MUNICIPALITY
Section 3.01. Representations of the Municipality The Municipality represents as follows:
(a) Organization and Authority
(1) The Municipality is a city, town, village, district, association, or other public body created by or
pursuant to the constitution and statutes of the State of Nebraska.
(2) The Municipality has full legal right and authority and all necessary licenses and permits
required as of the date hereof to own, operate and maintain its Sewer System, to carry on its activities
relating thereto, to execute and deliver this Loan Contract, to undertake and complete the Project, and
to carry out and consummate all transactions contemplated by this Loan Contract.
(3) The proceedings of the Municipality's governing body approving this Loan Contract and
authorizing its execution, issuance and delivery on behalf of the Municipality, and authorizing the
Municipality to undertake and complete the Project have been duly and lawfully adopted.
(4) This Loan Contract has been duly authorized, executed and delivered on behalf of the
Municipality, and constitutes the legal, valid and binding obligation of the Municipality enforceable in
accordance with its terms.
(b) Full Disclosure To the best knowledge of the Municipality, after due investigation, there is no fact
that the Municipality has not disclosed to NDEQ in writing on the Municipality's application for the Loan or
otherwise anything that materially adversely affects or that will materially adversely affect the properties,
activities of its Sewer System, or the ability of the Municipality to make all Loan Repayments and otherwise
observe and perform its duties, covenants, obligations and agreement under this Loan Contract.
(c) Non - Litigation There is no controversy, suit or other proceeding of any kind pending or threatened
questioning, disputing or affecting in any way the legal organization of the Municipality or its boundaries, or
the right or title of any of its officers to their respective offices, or the legality of any official act taken in
connection with obtaining the Loan, or the constitutionality or validity of the indebtedness represented by the
Loan Contract, or any of the, proceedings had in .relation to the authorization or execution _or the pledging of
the revenues of the Municipality's Sewer System, or the ability of the Municipality to make all Loan
Repayments or otherwise observe and perform its duties, covenants, obligations and agreements under this
Loan Contract.
(d) Compliance with Existing Laws and Agreements The authorization, execution and delivery of this
Loan Contract by the Municipality, and the performance by the Municipality of its duties, covenants,
obligations and agreements thereunder will not result in any breach of any existing law or agreement to
which the Municipality is a party.
(e) No Defaults No event has occurred and no condition exists that would constitute an Event of
Default. The Municipality is not in violation of any agreement which would materially adversely affect the
ability of the Municipality to make all Loan Repayments or otherwise observe and perform its duties,
covenants, obligations and agreements under this Loan Contract.
(f) Governmental Consent The Municipality has obtained all permits and approvals required to date
under this Loan Contract or for the undertaking or completion of the Project and the financing or refinancing
thereof. The Municipality has complied with all applicable provisions of law requiring any notification, with
any governmental body or officer in connection with this Loan Contract or with the undertaking or completion
of the Project and the financing or refinancing thereof.
(g) Compliance with Law The Municipality:
(1) is in compliance with all laws, ordinances, governmental rules and regulations to which it is
subject, including, without limitation, any public hearing or public notice requirements or environmental
review requirements contained in the Regulations, with which the failure to comply would materially
adversely affect the ability of the Municipality to conduct its activities, enter into this Loan Contract or
undertake or complete the Project; and
(2) has obtained all licenses, permits, franchises or other governmental authorizations presently
necessary for the ownership of its property which, if not obtained, would materially adversely affect the
ability of the Municipality to complete the Project.
(h) Use of Loan Proceeds The Municipality will apply the proceeds of the Loan as described in
Article II: (1) to finance or refinance a portion of the Project Costs; and (2) where applicable, to reimburse
the Municipality for a portion of the Project Costs, which portion was paid or incurred in anticipation of
reimbursement by NDEQ and is eligible for such reimbursement pursuant to the Regulations. All of such
costs constitute Project Costs for which NDEQ is authorized to make Loans to the Municipality pursuant to
the Act and the Regulations.
(i) Project Costs The Municipality certifies that the Project Costs, as listed in Attachment B, are
reasonable and accurate estimations and, upon direction of NDEQ, will supply the same with a certificate
from its engineer stating that such costs are reasonable and accurate estimations, taking into account
investment income, if any, to be realized during the course of construction of the Project and other money
that would, absent the Loan, have been used to pay the Project Costs.
Section 3.02. Particular Covenants of the Municipality
(a) Dedicated Source of Revenue for Repayment of the Loan The Municipality hereby pledges the
Wastewater User Charge as the dedicated source of revenue for the repayment of the Loan. The pledge
herein provided for is made in accordance with and under the terms of Ordinance No. 2200 and is on an
equal basis with the pledges made under the ordinances described below in this Subsection 3.02(x). The
Municipality shall fix, establish, maintain and collect such rates, fees and charges for the use and services
furnished by or through the Municipality's Sewer System, including all improvements and additions. hereafter
constructed or acquired by the Municipality, as will provide revenues sufficient to (i) pay the cost of the
operation and maintenance, and replacement of the Sewer System, (ii) pay at least 110% of the principal of
and interest on the Loan and other debt of the Municipality payable from the Wastewater User Charge as
and when the same become due, and (iii) pay all other amounts due at -any time under this Loan Contract,
provided, however, the lien of NDEQ on the revenues of the Municipality's Sewer System shall be on a parity
with the lien on such revenues of the Municipality's outstanding Sewer System revenue bonds issued
pursuant to Ordinances Nos. 2017 and 2190, of the City of Blair, Nebraska and any additional Sewer System
revenue bonds hereafter issued on parity with such outstanding revenue bonds. These revenues shall be set
aside as collected and deposited in a separate fund with at least two separate accounts, one for the
operation and maintenance costs and the other for principal and interest payments on the Loan. The
Municipality shall deposit monthly, in the Loan payment account, an amount equal to at least one -sixth of the
anticipated amount due on the next Loan payment date. The Municipality agrees to develop the User
Charge System for the Sewer System based on actual or estimated use of wastewater treatment services,
providing that each user or user class pay its proportionate share of operation and maintenance (including
replacement) costs of wastewater treatment costs within the Municipality's service area, based on the user's
proportionate contribution to the total sewer system usage from all users or user classes and to conduct at
least a biennial review of user charge rates to review the adequacy of the user charge rates. The
Municipality agrees the initial financial analysis performed by NDEQ in Attachment C is a reasonable
estimate of the Project Costs, of the financial situation of the Municipality in relation to this Project, and of the
user charges necessary at the time of Initiation of Operation of the Project, provided that the Municipality
makes no representation with respect to funds available for State intercept as set forth in such Attachment C.
The NDEQ may review this information annually to insure the Municipality's compliance with the Loan
conditions and update Attachment C to reflect any changes.
(b) Performance Under Loan Contract The Municipality covenants and agrees:
(1) to comply with all applicable State and Federal laws, rules and regulations (including, but not
limited to the Federal crosscutting issues listed in Appendix F of the EPA's Initial Guidance for State
Revolving Funds and set forth on Attachment D hereto and NDEQ Regulations), in the performance of
this Loan Contract; and
(2) to cooperate with NDEQ in the observance and performance of the respective duties,
covenants, obligations and agreements of the Municipality and NDEQ under this Loan Contract.
(c) Completion of Project and Provision of Moneys Therefor The Municipality covenants and agrees:
(1) to exercise its best efforts in accordance with prudent wastewater treatment utility practice to
complete the Project and to so accomplish such completion on or before the estimated Project
completion date set forth in Article II hereto; and
(2) to provide from its own financial resources all moneys, in excess of the total amount of
proceeds it receives under the Loan, required to complete the Project.
(d) Delivery of Documents Concurrently with the delivery of this Loan Contract (as previously
authorized and executed) at the Loan Closing, the Municipality will cause to be delivered to NDEQ each of
the following items:
(1) Counterparts of this Loan Contract (as previously executed by parties hereto);
(2) copies of the ordinances and /or resolutions of the governing body of the Municipality
authorizing the execution and delivery of this Loan Contract certified by an Authorized Representative;
(3) an Opinion of Municipality's Counsel substantially in the form of Attachment hereto;
(4) an executed Note (or other evidence of indebtedness) evidencing the Municipality's
obligations under this Loan Contract in the form of Attachment F; and
(5) such other certificates, documents, opinions and information as NDEQ may require.
(e) Operation and Maintenance of Sewer System The Municipality covenants and agrees that it shall,
in accordance with prudent wastewater treatment works practice:
(1) at all times operate the properties of its Sewer System in an efficient manner; and
(2) maintain its Sewer System, making all necessary and proper repairs, renewals, replacements,
additions, betterments and improvements necessary to maintain the Sewer System in good repair,
working order and operating condition.
(f) Disposition of Sewer System tem The Municipality covenants that it intends to own and operate the
Project at all times during the term of the Loan. The Municipality does not know of any reason why the
Project will not be so used in the absence of (i) supervening circumstances not anticipated by the
Municipality at the time of the Loan, (ii) adverse circumstances beyond the control of the Municipality or (iii)
obsolescence of such insubstantial parts or portions of the Project as may occur as a result of normal use
thereof.
The Municipality shall not sell, lease, abandon or otherwise dispose of all or substantially all of its Sewer
System except on ninety (90) days' prior written notice to NDEQ and, in any event, shall not so sell, lease,
abandon or otherwise dispose of the same unless the Municipality shall in accordance with Section 4.02
hereof assign this Loan Contract and its rights and interests hereunder to the purchaser or lessee of the
Sewer System and such purchaser or lessee shall assume all duties, covenants, obligations and agreements
of the Municipality under this Loan Contract. In no event shall the Municipality sell, lease, abandon or
otherwise dispose of the Sewer System to any person or entity other than a municipal corporation or other
political subdivision of the State of Nebraska or any combination thereof, that has legal responsibility to treat
wastewater and perform the other functions of the Sewer System.
Before any proposed disposition of the Sewer System can be made, the Municipality shall provide NDEQ
with an opinion of a nationally recognized bond counsel that such proposed disposition is permitted by the
provisions of this subparagraph, and further, that such disposition shall not endanger the exclusion from
gross income for federal income tax purposes of the interest on any bonds issued to fund deposits into the
Fund, nor shall it relieve the Municipality of its duties, covenants, obligations and agreements under this Loan
Contract.
(g) Records and Accounts
(1) The Municipality shall keep accurate records and accounts for its Sewer System (the "System
Records "), which shall be separate and distinct from its other records and accounts (the "General
Accounts "). The System Records and General Accounts shall be made available for inspection upon request
by NDEQ at any reasonable time. The Municipality shall, upon written request by NDEQ during the term of
the Loan, perform and provide NDEQ a written audit of its System Records and /or General Accounts,
provided such audit shall not be due to NDEQ sooner than 210 days following the close of the fiscal year, or
years, identified in the request for audit. In the event that during the period in which the Project financed by
10
this agreement is under construction, and the Municipality expends, for any purpose, total federal funds in
excess of $500,000 during the Municipality's fiscal year, then the Municipality shall, irrespective of any
request from NDEQ, provide NDEQ a copy of the single agency audit made on the Municipality's General
Accounts performed by an independent registered. municipal accountant required in such cases by the
Federal Single Audit Act Amendments of 1996, OMB Circular No. A -133, Audits of States, Local
Governments, and Non - Profit Organizations. In the sole discretion of NDEQ, any requirement herein to
perform and /or provide an audit at the request of NDEQ may be waived by NDEQ on the basis of the
Municipality's receipt of an audit waiver received from some other government agency and accurately
acknowledging the Municipality's obligation to NDEQ under this Loan or for any other reason acceptable to
NDEQ.
(2) The Municipality shall maintain its accounts in accordance with generally accepted government
accounting standards defined in the Government Accounting, Auditing, and Financial Reporting Manual
(1994 Ed.), or any other more current edition thereafter, issued by the Government Finance Officers
Association. The Municipality's Basic Financial Statements shall comply with the government -wide
perspective model and, where applicable, the Statement of Infrastructure Assets prescribed by Government
Accounting Standards Board Statement 34.
(h) Inspections; Information The Municipality shall permit the EPA, NDEQ and any party designated by
NDEQ to examine, visit and inspect, at any and all reasonable times, the property, if any, constituting the
Project, and to inspect and make copies of any accounts, books and records, including (without limitation) its
records regarding receipts, disbursements, contracts, investments and any other matters relating thereto and
to its financial standing, and shall supply such reports and information as the EPA and NDEQ may
reasonably require in connection therewith.
(i) Insurance The Municipality will carry and maintain such reasonable amount of all risk insurance on
all properties and all operations of the Sewer System as would be carried by similar sized municipal
operators of sewer systems, insofar as the properties are of an insurable nature. The Municipality also will
carry general liability insurance in amounts not less than the maximum liability of a governmental entity for
claims arising out of a single occurrence, as provided by the Nebraska Political Subdivisions Tort Claims Act,
Neb.Rev.Stat. § §13 -901 to 13 -926, or other similar future law.
(j) Continuing Representations The representations of the Municipality contained herein shall be true at
the time of the execution of this Loan Contract and at all times during the term of this Loan Contract.
(k) Notice of Material Adverse Change The Municipality shall promptly notify NDEQ of any material
adverse change in the activities, prospects or condition (financial or otherwise) of the Municipality's Sewer
System, or in the ability of the Municipality to make all Loan Repayments and otherwise observe and perform
its duties, covenants, obligations and agreements under this Loan Contract.
(1) Additional Covenants and Requirements If necessary in connection with the making of the Loan,
additional covenants and requirements have been included. The Municipality agrees to observe and comply
with each such additional covenant and requirement, if any.
(m) Protect Sign The Municipality agrees to display the project sign provided by NDEQ. The sign will
remain the property of NDEQ and will be retrieved about one year after project completion. The Municipality
will remove the sign for NDEQ when requested.
(n) Employment Under Public Contracts, LB403 The Municipality agrees to comply with the provisions
of LB403, approved by the Governor April 8, 2009. The following language is required and will be included in
all contracts made with contractors and is a pass through requirement for his or her subcontractors.
"The Contractor is required and herby agrees to use a federal immigration verification
system to determine the work eligibility status of new employees physically performing services within the
State of Nebraska. A federal immigration verification system means the electronic verification of the work
1 '1
authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of
1996, 8 U.S.C. 1324x, known as the E- Verify Program, or an equivalent federal program designated by the
United States Department of Homeland Security or other federal agency authorized to verify the work
eligibility status of a newly hired employee. If the contractor is an individual or sole proprietorship, the
following applies: 1. The Contractor must complete the United States Citizenship Attestation Form, available
on the Department of Administrative Services website at www.das. state. ne.us; 2. If the Contractor indicates
on such attestation form that he or she is a qualified alien, the contractor agrees to provide the US citizenship
and Immigration Services documentation required to verify the Contractor's lawful presence in the United
States using the Systematic Alien Verification for Entitlements (SAVE) Program; and, 3. The contractor
understands and agrees that lawful presence in the United States is required and the contractor may be
disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev.
Stat. §4- 108."
(o) Prevailing Wage All laborers and mechanics employed by contractors and sub contractors on
projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to
the Public Law 111 -88 shall be paid wages at rates not less than those prevailing on projects of a character
similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31
of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of
Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat.
1267; 5 U.S.C.App.) and section 3145 of title 40, United States Code.
The Municipality is responsible to insure compliance with the prevailing wage requirements and will include
the following information in the contract documents:
Contractors and subcontractors on USEPA federally assisted construction projects are required to pay their
laborers and mechanics not less than those established by the U.S. Department of Labor. A current wage
decision containing the appropriate building and /or heavy type rates shall be included in the specifications. In
addition, labor standard provisions, Davis Bacon and Related Acts, for federally assisted contracts shall be
placed in the federal assurances of project specifications.
If an areawide decision or classification does not exist for the type of work to be performed, building or
heavy, a decision or request for authorization of additional classification and rate must be requested from the
Labor Department using the Standard Form 1444, Request for Authorization of Additional Classification and
Rate available on the web and can be completed on line at: http: / /www.wdol.gov /docs /sfl444.pdf. These
types of decisions or classifications are project specific, i.e. they are applicable only to the project for which
they are requested and may not be used on any other project. Project decisions generally have an expiration
date of 180 days after the date of issuance. Modifications or reissued decisions are applicable to a project if
received by NDEQ not less than 10 days prior to bid opening. Modifications to classification and wage rates
after bid opening shall be paid to all workers performing work in the new or modified classification from the
first day on which work is performed in the additional classification as approved by the Administrator of the
Wage and Hour Division, Employment Standards Administration, US Department of Labor.
Weekly Payrolls shall be submitted by the contractor to the Municipality or the Municipality's representative
utilizing the Department of Labor Form WH -347. A web form which can be completed on -line is found at
www.dol.gov /whd /forms /wh347.pdf instructions are also found on -line. The Municipality may also be
required to submit copies of the Weekly Payrolls to NDEQ. As to each payroll copy received, the Municipality
shall provide written confirmation on a form supplied by NDEQ indicating whether or not the project is in
compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the
specified week. The Municipality or the Municipality's representative shall periodically interview a sufficient
number of the contractor's or subcontractor's employees entitled to Davis Bacon prevailing wages to verify
that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(x)(6),
all interviews must be conducted in confidence. The Municipality must use Standard Form 1445 or
equivalent documentation to memorialize the interviews. Copies of the SF 1445 form are available at
http: / /www.gsa.aoy At a minimum, the Municipality or the Municipality's representative should conduct
interviews with a representative group of covered employees within two weeks of each contractor or
12
subcontractor's submission of its initial weekly payroll data and two weeks prior to the estimated completion
date for the contract or subcontract.
ARTIC'I F 1 \/
ASSIGNMENT
Section 4.01. Assignment and Transfer by NDEQ The Municipality hereby approves and consents to
any assignment or transfer of this Loan Contract that NDEQ deems necessary in connection with the
operation and administration of the Fund. The Municipality hereby specifically approves the assignment and
pledging of the interest portion of the Loan Repayments to NIFA.
Section 4.02. Assignment by the Municipality This Loan Contract may not be assigned by the
Municipality for any reason, unless the following conditions shall be satisfied:
(a) NDEQ shall have approved said assignment in writing;
(b) the assignee is a city, town, village, district, association, county or other public body created
by or pursuant to State law of the State of Nebraska or any combination thereof, that has legal
responsibility to treat wastewater and deliver potable water;
(c) the assignee shall have expressly assumed in writing the full and faithful observance and
performance of the Municipality's duties, covenants, and obligations under this Loan Contract;
provided, however, such assignment shall not relieve the Municipality of its duties, covenants, and
obligations under this Loan Contract;
(d) the assignment will not adversely impact NDEQ's ability to meet its duties, covenants and
obligations under the Pledge Agreement nor may the assignment endanger the exclusion from gross
income for federal tax purposes of the interest on any bonds issued by NIFA to fund deposits into the
Fund; and
(e) the Municipality shall provide NDEQ with an opinion of a nationally recognized bond counsel
that each of the conditions set forth in subparagraphs (b), (c), and (d) hereof have been met.
ARTICLE V
Section 5.01. Events of Default and Remedies
(a) Violation.or noncompliance of any of the provisions of this Loan or of Ordinance No. 2200 by
the Municipality or failure of the Municipality to complete and maintain the Project in the manner
proposed by the Municipality and approved by the NDEQ may result in a cancellation of this Loan and
a demand that any outstanding balance of principal and interest be paid immediately.
(b) In the event that the Municipality makes a late payment pursuant to the Loan repayment
schedule in Attachment A, the NDEQ may assess a penalty. Late payments will subject the
Municipality to a 5 percent administrative penalty on the delinquent amount. Penalty interest shall
accrue at the rate of 1 percent per month of the amount of the late payment from and after the due
date until it is paid.
(c) If the Municipality fails to make any payment of principal and interest, late fee, and penalty
interest imposed pursuant to this Loan within sixty days of the due dates specified in Section 2.05, the
payment shall be deducted from the amount of aid to municipalities to which the Municipality is entitled
under Neb. Rev. Stat. § §77- 27,136 to 77- 27,137.01. Such amount shall be paid directly to the
Wastewater Treatment Facilities Construction Loan Fund.
13
(d) To the extent that NDEQ's right to receive Loan Repayments is on a parity of lien basis with
the lien of other outstanding revenue bonds payable from the revenues of the Sewer System,
revenues of the Sewer System payable to NDEQ shall be paid to NDEQ pro rata with such other
bonds in accordance with the respective outstanding principal amounts. Any acceleration of amounts
owing to NDEQ under this Loan Contract shall not increase NDEQ's pro rata share from such
revenues but NDEQ may apply other amounts available to it, including amounts described in
Subsection 5.01(c). NDEQ shall not have any right to receive application of amounts held in any debt
service reserve account provided for the securing of any such other outstanding revenue bonds.
Section 5.02. Notice of Default Before any action is taken under this Article, the NDEQ shall give thirty
days written notice of the NDEQ's intent to the Municipality. The Municipality shall have the thirty day time
period to comply with the violated contractual term. If compliance is achieved the Loan shall revert to good
standing.
ARTICLE VI
MISCELLANEOUS
Section 6.01. Hold Harmless Agreement The State of Nebraska and the NDEQ, and the officers,
agents, and employees of each, shall have no responsibility or liability for the construction, operation and
maintenance of the Project.
Section 6.02. Waivers Any waiver at any time of rights or duties under this Loan Contract shall not be
deemed to be a waiver of any subsequent right or duty under this Loan Contract.
Section 6.03. Amendments, Supplements and Modifications This Loan Contract may not be amended,
supplemented or modified without the prior written consent of NIFA; provided, however, the consent of NIFA
is not required to revise Attachment A and Attachment C hereto. An executed copy of any amendment to
this Loan Contract including revision of Attachments shall be immediately provided to NIFA.
Section 6.04. Notices All notices, certificates or other communications hereunder shall be sufficiently
given and shall be deemed given when hand delivered or mailed by registered or certified mail, postage
prepaid, to the Municipality, to NDEQ and to NIFA at the following addresses:
(a) Municipality:
City of Blair, Nebraska
218 South 16 Street
Blair, NE 68008 -1674
Attention: City Administrator
(b) NDEQ:
Department of Environmental Quality
Suite 400
1200 "N" Street, The Atrium
P.O. Box 98922
Lincoln, NE 68509 -8922
(c) NIFA:
Nebraska Investment Finance Authority
200 Commerce Court
1230 "O" Street
Lincoln, NE 68508
14
All notices given by registered or certified mail as aforesaid shall be deemed duly given as of the date
they are so mailed. Any of the foregoing parties may designate any further or different addresses to which
subsequent notices, certificates or other communications shall be sent, by notice in writing given to the
others.
Section 6.05. Severability In the event any provision of this Loan Contract shall be held illegal, invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate, render unenforceable
or otherwise affect any other provision hereof.
Section 6.06. Binding Effect This Loan Contract shall inure to the benefit of and shall be binding upon
NDEQ and the Municipality and their respective successors and assigns.
Section 6.07. Execution in Counterparts This Loan Contract may be executed in several counterparts,
each of which shall be deemed to be an original and all of which shall constitute but one and the same
instrument.
Section 6.08. Governinq Law and Regulations This Loan Contract shall be governed by' and construed
in accordance with the laws of the State of Nebraska, including the Act and the Regulations which
Regulations are, by this reference thereto, incorporated herein as a part of this Loan Contract.
Section 6.09. Consents and Approvals Whenever the written consent or approval of the State shall be
required under the provisions of this Loan Contract, such consent or approval may only be given by NDEQ.
Section 6.10. Further Assurances The Municipality shall, at the request of NDEQ, authorize, execute,
acknowledge and deliver such further resolutions, conveyances, transfers, assurances, financing statements
and other instruments as may be necessary or desirable for better assuring, conveying, granting, assigning
and confirming the rights, security interests and agreements granted or intended to be granted by this Loan
Contract.
IN WITNESS THEREOF, the parties hereto have caused this Loan Contract to be executed and delivered as
of the date set forth below.
CITY OF BLAIR, NEBRASKA
By
Title Mayor
Date April 1, 2011
NEBRASKA DEPARTMENT OF
EN O ENTAV Q ITY
By
Title Director
Date Z6
15
INDEX OF ATTACHMENTS
Attachment A - Projected Loan Repayment Schedule
Attachment B - Project Costs and Projected Outlay Schedule
Attachment C - Financial Analysis
Attachment D - List of Federal Laws and Authorities
Attachment E - Municipality's Counsel's Opinion
Attachment F - Promissory Note
Attachment G — Certificate
Attachment H — Other Documents
16
ATTACHMENT A
PROJECTED LOAN REPAYMENT SCHEDULE
Interest before June 15, 2013, which is not reflected on the following amortization schedule
shall be billed and paid in accordance with NDEQ's procedures as in effect from time to time. Interest shall
accrue at the applicable rate (set forth in Section of the Contract for Loan) as to the amount drawn and
outstanding from time to time during the payment period, with payments due on June 15 and December 15
of each year, commencing June 15, 2011. Amounts due will be billed on or about May 15 and November 15
of each year for each six -month payment period ending on the set interest payment date. Interest accruing
on any principal amounts drawn after the billing date are to be paid as an addition to the billing for the next
interest payment period.
17
O
N
(0
N
0
Z W
Q
W W
Z 00 0
Z: M
w
Q � J
w m W
M U O
LL m 0
C) � U3
Q � -Z0
Q 0 : F-- -
Q O O �
O U Of O
-ji W a :�
_ Q
� z
Q
0 O
O
O C7
N r
II II
W W
} Q
elf
0� W
W W
I- LL
C) O LO O
O O N O
O O N O
O O O
O It (.fl
� M r
II II II If
J
F
O
F-
Q�w
0 U 0
j - O W
LL8-ZJ
Q
(L
U
Z
a
LL
w
U)
7
U
LO �t Q0 co (fl (D N 00 (fl 00 LL) (D O It LO M a0 M O (0 LO O 00 (D (fl M O n 1` CO 6) t- 1` ' 0) C5) O O O
Lq d' CO O O O Lq V M W t- 'V' W't W U' N O r M O C) 'q 00 O W M N Lq O LD N M O r O.
W
O LO (D N N (0 00 L() N 00 N N W O (D LO (D M O r 0 t- W (O 00 N 1` It O V (D M (D N O r 6
r O N t- d' M to 00 't N M (D O t*- 'I M CO 'ct t- O d' M M O LC) N 00 to N W'q O LO O d' t- W
(�
LL0 O d' r W - N N r O CC Lq (O "t � 0 ! C! O 13 cc LL0 r I r W cy W O O CC (D M CC! M (O M W
Z
It tl- O q t- 0 CO (D W- (D W r M LO CO O r M LO 1- 00 O N M M (0 (O r- 00 00 W W O M
o Q
J
r O W W W I" t- (D M '�t "It M N r O W W M ti (O U) et M M O W WJ (O Lo d' M N r
M M M N N N N N N N N N N N N N C\I r r- c-- r r r r
Q
m
II
II II II II 11 II II II II II II II II II II II II II II II II 11 II II II II II II II II II II II II II II II II II II
Lc) r 00 00 N O 'cI' d' N 00 CO W (0 (0 O r- O O Co 't W W N O M zt N O W W N O M M N O W O O
LO 00 O O 00 LO r LO W r M� �}' d' d' Cl) r O W I` (D CD (D (D 1- O N LO O r- LO V LO 00 CO O W r
O
O
00= �tMd'O(D't (o OM 00 �t W 00 N00 M 'It LO 0004 tiM O W.-
O
Z
10 CO O h LO M O 00 (0 It N O 00 (D LLO M N r W a0 1` Co W 0 4 t M M M M M M M , t LO (D CO 1` W
' tMC D(DI-WMMCDr- NMM'gM(OI-000OOOrNM LOCO1 tO(Ot COW
O
O
W
P P ti r-: ti 00000000OD00000000 c6 (5d 6 d W W W W W
,t
N
Q M
0..
O L(0 d' (D m (D O N 00 O m m (D O It LO M w oO O O LO co 00 CO (0 M Wrl- t- W W I- t` 'It r W W O O
O LO 'q 00 W W W r M 't C() W h d' W d' W L(0 N r O r CO (D O It oO O r W M N LL0 O (D r N W O r
W
O r O LO CD N N (0 r 00 LO (V 06 N N W O (6 L6 (O c0 O r Or W (O of cV r-:-i O 4 (O M (O N O r
O't r O N ti d' M L(0 00 'It N r M (D O t-- 'It M CO d' I` O It 00 M W LO N M Lc) N 00 V O LO O �t h W
V
Z
O LL0 O t` W N N r C 00 v! r (D r 'tt I` W O O C o0 LL0 r t� r Ln M W O O o0 (O M cc M (C W W
"t r r O 't Q O CO (D 00 Nt (D 0 r Cl) LO CO O- Cl) LO I- CO (D = N Ce) Lf) (D (D r M 00 M W W W
Q
J
N r o W W 00 h I- (O LO ' t Nt M N r r O W OD 00 ti CO LC) ' T M M N r O W M I-- CO Ln 'ct M N r
CO CO M CO N N N N N N N N N N N N N N r r r r r r r r r r r r
Q
m
to r 00 OD N O It It N CO CO W (D (D W O O 00 ct r W 00 N O M It N O W W N O CO M N O W O O
�t r LO (D O O 00 LO r Ln W r CO It It t t M r O W ti CD co co (D r- W N LO O h Ln It LO 00 cl) W W r
O
0
�"'
CO 'mot M O (D 4 M N N 4 (D W cr1 OO 4 r (A 00 h o0 O M r N 00 L() - 4 M 4 vi Co N� M r W 0)
O
Z
W
LO M O t-- U) M O 00 (0 d' N O 00 (D L(0 M N r W CO h (0 Co L0 �t d' M M M M M M M It V L(0 (D co t- W
d: LO (O CD t- 00 () W O r N M M It V) (D I` 00 O0 W M 4
O
O r N LO (D I- 00 W O r N M V' M (O I- OO W
CD CO (fl (0 CD (4 (0 co I-- n r- t` ],-� t- t- t- t- t- t` ti 00 00 C() 00 00 O0 00 06 00 00 W W W Cn W W W W W W
O
"
}
N
Q
M
a
+
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +
O It I- I- CO LO r r CO t- N (D W W (D 00 LO LO t- r d' (D r� CO LO N r M Ln CO (O M LO N N M LO (D LL0 O
O M 00 0 't 't W W M W 0 N O W W W O r N It 0 CO r- 00 W W t` LO N W M I� W O W W r It Lt) It
Lo
O
6 N W 4 W M O o0 O O O Wr-� M W 4 W N 4 t[) Ln 4 N W L6 O' j I` W W Wt-: 'ct -: Ln W N cM M N
Co
Z
'It r� W N V 1-- W r It (0 00 W r M d' (D 11 W O r N M'q It LO CO CD W (O (D CD (D CO (O LO It It M N r
M
W
(D LO dt It CO N r r O W 00 r- I` CD LO It CO N N r O W 00 h CO LO It M N r O W 00 r- CO LO 'ct M N r
MMMMMMMMMNNC\I NNNNNNNNC\i_ rrrrr �r
r
O
Q
00
II
II II II II II II II II II II II II II II II II II II 11 II II II II II II II II II II II II 11 II II II II 11 II II II
LL0 LO LO LO LO LO LO LO LO LL0 Lf) LO LO LO U0 LL0 LO Ln L() LO LO LO LL) LO LO LO L10 LO LL0 Ln Ln LL0 LO LO LO LO LL0 L(0 LO O
NT It It It 't It It It Zt It It �t It Itt It It It It � v, �t It It dq v It It It Iq It v It It It It It It v It to
LO
o
MMcliC yiMMriMCr iciMMMMMriMMMMMMMaicM CMMriMMC6C6 �jMMMMMMCfi
00
Z
O O O O O O O O o 0 CD 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 C) CD (D 0 0 0 0 0 0 0 0 0 0 0
M
LLI
r r r r r r r r - r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r
C566((5000CT00000000000000CT6dC C;0000C;0000CT6
r
,
Q
r
�t
d
LO LO Ln LO m m to LC) 0 Lc) LO Ln Lt) m to LO Ln Ln m Ln LO 0 M LO M m LO LO LO 0 m U) LO LO LL0 LL0 LO LO L() O
V ItvItdt tItIt ;T'tyNt vvItvIt ItItIttn
LO
o
riMMMMMMMMMMM( YiMMM( 6MMMMMMMMMviMMMriMMMMMMricic6
o0
Z
0 0 CD o o 0 0 0 0 0 0 0 0 C) 0 0 0 0 0 0 0 0 0 C) C) CD (D 0 0 0 0 0 0 0 0 0 C) 0(D (D
CO
W C
L
r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r
O O O O O O O O O O O O O CJ Cj 0 0 0 0 0 0 0 0 0 0 0 66 C 0 0 0 0 0 0 0 0 0 0 0
r
r r r r r r e- r �-- r r r r r r r r r r r r r r r r r r r r r r
O
Q
It
a_
++++++++++
+ + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++
Z
O 10 M M (D r 00 CD � M r W CD r LO LO M 00 00 LO r O 'Ct O o0 W r It r- O N CO N 00 O LO CD
O O O (O 00 P- r N W N �- Lq (D M LL0 M n (D r N 00 O 1, W S W t� �-- W (V r N L(] N Ln N co W
(D
M
W
O I` V) N 00 'It O (0 - LL) C) 'It I` O CO LO ti 00 W O O W W t LL) M O n'Kt W LL) O d' 00 = d' (fl 00 W W
(D
c�
}
N 00 LO N 00 LO N 00 LL) = OD It .O t- M W LO r t- d' O V) r t-, M W Ln O (D r 1�- Cl) o0 CO W �t W V W "t
O Lq LL0 L q "Z 'ct "t M M M N N N r r O O C W W W 00 00 tl- P-- CD (fl (fl LO LO 'It V CO M N N r r
CD
Q
L()
C.
Cl)
W
W
LL
II
II II II II II II II II II If II II II II II II 11 II II II II II II II II II II II II II II II II II II II If II II II
LO (D O M M (D Cl) W 00 (D zt r (D O O OD Cl) M W O (D LO W LO M d' W W N 0 1- M� M CO M O (D
Z
It r Ln It O M r (D t` M (0 LO O r 1` O 00 r r (D (0 M'It r M r It N LO Ml'- LO co (0 W 1- W (0 00 d'
W
W
M M 6 N 00 4 W 'cl' W M I` O W O N M M M cM N W 1` 4 .- r--� M 00 M t-� r: 4r-- W N M
4
2
>.
N W L!0 N W LO N 00 LO r 00 rt t- M W CD N 00 't O (0 N 00 M W LO r (D N A M CO d' 0) W LO O U0
� (O CO (O Lr LL) L!') �t ; d' M M M N_ N r r r O O O W W OC OC 1 t� P- (D (D Ln Ln ";t 'ct M M N N N r
U)
h
C) 0 0 0 C) C) 0 0 0 0 0 0 0 0 0 0 0 O O
W
r
�t
J
F
0
M M ';t 't LO In (O (0 t- 1`-- 00 M W W O O r N N M M d' It LO Lf) W (D I'- 1` W 00 W W O O N N
r �- �- r r N N N N N N N N N N N N N N N N N N N N M M CO M M M
O O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 CD 0 0 0 0 0(D CD 0 0 0 0 0 C) 0 0 0 0 0 C) C)
�--
ji Z
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
6
C U C U C U C U C 6 C U C 6 C 6 C 6 C U C U C U C U C U C U C U C U C U C U C U
W
D N D N 7 N 7 N D N 7 N 7 N 7 N 7 N 7 N 7 N n U Z) N D N 7 N:3 N 7 N n N 7 N 7 N
- ? ?970 - ? 0
Q
�
LO U LO Ln LO Lo � Ln � � LO Lo LO Lo � Lo LO Ln � Ln 0 0 Lo LO If) 0 Lo 0 Lo LO U) M Lo 'n L o � Ln �
j j
r r r r `_ '- r r `_' r `_" .- r `"' r `_ .-- r r `' .-- r r r r r r r r r r `"' `"_' .-- `- r
J
Q
O
1--
ATTACHMENT B
Project Costs
A/E Fees
$ 50,000
Inspection Fees
50,000
Construction
300,000
TOTAL ESTIMATED PROJECT COST
$400,000
SOURCE OF FUNDS
NDEQ CWSRF Loan $324,000
NDEQ CWSRF Principal Forgiveness 76,000
TOTAL ASSISTANCE $400,000
Projected Outlay Schedule
June 2011
$ 10,000
July 2011
20
August 2011
10,000
September 2011
10,000
January 2012
10,000
May 2012
140,000
June 2012
100,000
July 2012
80,000
August 2012
20,000
TOTAL
$400,000
18
ATTACHMENT C
FINANCIAL CAPABILITY ANALYSIS
B LAI R, NEBRASKA
CWSRF Project No. C317638
Blair has requested a CWSRF assistance package of $400,000 consisting of $324,000 CWSRF loan
and $76,000 CWSRF principal forgiveness to finance a sanitary sewer replacement in College Drive. The
proposed project would consist of a new 10 inch PVC sanitary sewer for 5 blocks from 23 Street to 2758
College Drive.
An abbreviated financial analysis is presented. The documents reviewed and used to complete this
analysis are:
Audit reports of the City of Blair, for the years 2007, 2008, 2009, and draft 2010.
2. Application for State and /or Federal Assistance, October 2010
3. Miscellaneous correspondence from Blair in project file.
Table 1
Wastewater System Account Summary
Year
Revenue (includes
interest income )
Expenses (excludes
depreciation)
Revenue Minus
Expenses
Interest Expense
2007
$922,040
$510,775
$411,265
$38,515
2008
$969,285
$516,303
$452,982
$82,809
2009
$978,012
$622,521
$355,491
$87,124
2010
$1,009,646
$802,887
$206,759
$81,040
The City of Blair has 1 existing DWSRF loans currently in repayment
DWSRF Loan No. D31 -1007, dated April 29, 2002, in the amount of $6,815,700, 2011 Year Repayment
as follows
Loan Term ears
Interest Rate
2011 Year Payment
P & I Onl
14
3.03% + 1% admin
$829,347
$794,452
payments thru
fee on outstanding
December 2015
principal balance
19
In addition, Blair as of September 30, 2010 has the following Governmental Activities General
Obligation Bonds.
Dated
Description
Interest
Balance
Additions
Reductions
Balance
Rate
9/30/2009
9/30/2010
12/15/2002
Various
1.60%-
$420,000
(135,000)
$285,000
Purpose
4.25%
7/19/2005
Various
2.90%-
$720,000
(85,000)
$635,000
Purpose
4.25%
6/15/2006
Various
3.70%-
$505,000
(65,000)
$440,000
Purpose
4.35%
9/28/2007
Various
3.70%-
$2,555,000
(130,000)
$2,425,000
Purpose
5.00%
12/14/2007
TI F
4.48%
$1,140,000
40,000
1,100,000
2/26/2008
Public
2.75%-
$665,000
(35,000)
630,000
9/28/2010
Safety
4.25%
$6,500,000
$6,500,000
5/18/2010
Various
0.85%-
$1,270,000
$1,270,000
Purpose
4.25%
9/28/2010
BANS
770,000
$770,000
Total
Revenue
$6,005,000
$1,270,000
490,000
$6,785,000
In addition, Blair has the following Business -Type Activities Bonds for the Water Department
Dated
Description
Interest
Balance
Additions
Reductions
Balance
Rate
9/30/2009
9/30/2010
6/15/2000
Refunding
4.70%-
$690,000
(135,000)
$555,000
Bonds
5.55%
4/29/2002
DEQ
3.03%
$4,655,397
(658,343)
$3,997,054
Bonds
6/1/2006
NRD
4.15%-
$1,895,976
(315,000)
$1,579,980
Bonds
4.75%
4/24/2007
WA BANS
4.50%
$6,500,000
(6,500,000)
2007
8/15/2007
WA BANS
4.65%
$8,000,000
$8,000,000
2007B
9/28/2010
2010B
2.75%
$6,500,000
$6,500,000
Revenue
Bonds
9/28/2010
2010C
3.25%
770,000
$770,000
Revenue
Bonds
Total Water
1
1 $21,741,373
$7,270,000
1 $(7,609,339)
$21,402,034
20
In addition, Blair has the following Business -Type Activities Bonds for the Sewer Department
Dated
Description
Interest
Balance
Additions
Reductions
Balance
10% Coverage
20
Rate
9/30/2009
$28,904
DWSRF Loan #D311007 P &I
9/30/2010
12/15/2004
Revenue
2.05%-
$685,000
(60,000)
$625,000
Bonds
4.25%
6/26/2007
SE BANS
4.05%
$1,455,000
(1,455,000)
Series
2007
8/17/2010
2010
2.70%
$1,645,000
$1,645,000
Revenue
Bonds
Total
$2,140,000
$1,645,000
$(1,515,000)
$2,270,000
Analysis of the Sewer Utility:
The City of Blair manages their sewer utility. The sewer utility ran operating surpluses for the years
2007, 2008, 2009, and 2010 as shown in Table 1. The current monthly metered sewer residential use
charge rate is $1.00 fee per 748 gallons of winter water use which for 8,000 gallons average winter water
use equals $11.00 for a typical residential monthly sewer bill. The current sanitary sewer system has
approx. 2,900 residential and commercial metered services. A small rate increase may be needed to
cover the proposed CWSRF loan of $0.83 per month in order to cover the sewer system operation and
maintenance costs, and the new CWSRF debt service plus 10% coverage requirement.
The proposed loan C317638 for $324,000 has a repayment amount for the first year as shown in
Table 2.
Table 2
Loan Term (years)
Interest Rate
First Year Payment
First Year Payment +
IL 5 957
SFY2009
TOTAL
10% Coverage
20
2.25 + 1.0 admin fee
$26,276
$28,904
DWSRF Loan #D311007 P &I
on outstanding
Proposed CWSRF Loan
#C317638 P &I
$20,207
TOTAL
p rincipal balance
Blair has skillful staff administering their public works systems and has shown good management of
their water and sewer utilities.
Funds Available for State Intercept
The annual principal and interest payments for a 20 -year loan of $324,000 are $20,207. Principal
and Interest repayments of SRF loans are protected by intercept statutes, which allow the department to
recover delinquent loan payments by intercepting state funds that are paid to the City of Blair. State
funds that are available for interception are:
State Aid to Cities
$62,289
SFY2011
Highway Allocations
IL 5 957
SFY2009
TOTAL
$618,246
DWSRF Loan #D311007 P &I
$794,452
Proposed CWSRF Loan
#C317638 P &I
$20,207
TOTAL
$814,659
State intercept total is 76% than the annual combined DWSRF / CWSRF loan payments.
21
ATTACHMENT D
LIST OF FEDERAL LAWS AND AUTHORITIES
ENVIRONMENTAL
- Archeological and Historic Preservation Act of 1974, Pub. L. 93 -291
- Clean Air Act, 42 U.S.C. 7506(c)
- Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq.
- Coastal Zone Management Act of 1972, Pub. L. 92 -583, as amended
- Endangered Species Act, 16 U.S.C. 1531 et seq.
- Executive Order 11593, Protection and Enhancement of Cultural Environment
- Executive Order 11988, Floodplain Management
- Executive Order 11990, Protection of Wetlands
- Farmland Protection Policy Act, 7 U.S.C. 4201 et seq
- Fish and Wildlife Coordination Act, Pub. L. 85 -624, as amended
- National Historic Preservation Act of 1966, Pub. L. 89 -665, as amended
- Safe Drinking Water Act, Pub. L. 92 -523, as amended
- Wild and Scenic Rivers Act, Pub. L. 90 -542, as amended
ECONOMIC
- Demonstration Cities and Metropolitan Development Act of 1966, Pub. L. 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
SOCIAL LEGISLATION:
- Age Discrimination Act of 1975, Pub. L. 94 -135
- Title VI of the Civil Rights Act of 1964, Pub. L. 88 -352
- Section 13 of Pub. L. 92 -500, Prohibition against sex discrimination under the Federal Water Pollution Control Act
- Equal Employment Opportunity, Executive Order 11246
- Women's and Minority Business Enterprise, Executive Orders 11625 and 12138
- Section 504 of the Rehabilitation Act of 1973, Pub. L. 93 -112, (including Executive Orders 11914 and 11250)
MISCELLANEOUS AUTHORITY
- Uniform Relocation and Real Property Acquisition Policies Act of 1970, Pub. L. 91 -646
- Executive Order 12549 - Debarment and Suspension
22
BAIRDHOLMLLP
ATTORNEYS AT LAW
April 1, 2011
Nebraska Investment Finance Authority
200 Commerce Court
1230 "O" Street
Lincoln, Nebraska 68508
Attention: Executive Director
Nebraska Department of Environmental Quality
Suite 400
1200 N Street, The Atrium
P.O. Box 98922
Lincoln, Nebraska 68509 -8922
Attention: Wastewater Facilities Section
Water Quality Division
Ladies and Gentlemen:
1500 Woodmen Tower
1700 Famam St
Omaha, NE 68102 -2068
TeL 402.344.0500
Fax: 402.344.0588
wwwbairdhobncom
We have acted as Bond Counsel in connection with the execution and delivery by the
City of Blair, Nebraska, a city of the first class of the State of Nebraska (the "Municipality ") of a Loan
Contract dated as of April 1, 2011 (the "Loan Contract ") between the Municipality and the Nebraska
Department of Environmental Quality ( "NDEQ ") and the issuance of a promissory note dated the date
hereof (the "Note ") by the Municipality to NDEQ. All terms used in this opinion letter and not defined shall
have the meanings given to them in the Loan Contract.
In this connection, we have examined the following:
(a) certified copies of the proceedings of the Mayor and Council of the
Municipality showing the passage and approval of Ordinance No. 2200 on February 22,
2011 authorizing the Note and the Loan Contract (the "Ordinance "), as certified by the
City Clerk of the Municipality;
(b) an executed counterpart of the Loan Contract;
(c) the executed Note; and
(d) such other documents as we deemed relevant and necessary in
rendering this opinion.
As to questions of fact material to our opinion, we have relied upon the covenants and
representations set forth in the Loan Contract, the certified proceedings and other certifications of public
officials furnished to us without undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion that:
Nebraska Investment Finance Authority
Nebraska Department of Environmental Quality
April 1, 2011
Page 2
1. The Municipality is a city of the first class duly organized and validly existing
under the laws of the State of Nebraska.
2. The Municipality is a governmental unit, as such term is used in Section
141(b)(6) of the Internal Revenue Code of 1986, as amended.
3. The Municipality has the power and authority to enter into the Loan Contract, to
issue the Note, to borrow the entire principal amount provided for in Section 2.01 of the Loan Contract
(the "Principal Amount ") and to perform its obligations under the Loan Contract and the Note.
4. The Loan Contract and the Note have been duly authorized, executed and
delivered by the Municipality and are, and would be if the entire Principal Amount were advanced to the
Municipality pursuant to the Loan Contract on the date of this opinion, valid and legally binding special
obligations of the Municipality, payable solely from the sources provided therefor in the Loan Contract and
the Ordinance, enforceable in accordance with their respective terms, except to the extent that the
enforceability thereof may be limited by laws relating to bankruptcy, insolvency or other similar laws
affecting creditors' rights generally and general principles of equity.
5. Pursuant to Sections 18 -1803 to 18 -1805, R.R.S. Neb. 2007, the Ordinance of
the Municipality and the Loan Contract, which the Ordinance authorizes and incorporates by reference,
create a valid lien on the revenues, pledged by the Municipality pursuant to Section 3.02 of the Loan
Contract for the security of the Loan Contract and the Note and no other debt of the Municipality is
secured by a superior lien on such revenues.
6. The Municipality has obtained or made all approvals, authorizations, consents or
other actions of, and filings, registrations or qualifications with, the Municipality or any other government
authority which are legally required, as of the date hereof, to allow the Municipality to enter into and
perform its obligations under the Loan Contract and the Note and borrow the full Loan Amount pursuant
to the Loan Contract and the Note.
7. It is to be understood that the rights of the holder of the Note and the Loan
Contract and the priorities and enforceability thereof may be subject to bankruptcy, insolvency,
reorganization, moratorium, extension, compromise and other similar laws affecting creditors' rights
heretofore or hereafter enacted to the extent constitutionally applicable and that their priorities and
enforcement may also be subject to the exercise of judicial discretion in appropriate cases.
Very truly yours,
BAIRD HOLM LLP
By: /
RJP /sin (+
V
ATTACHMENT F
PROMISSORY NOTE OF THE CITY OF BLAIR, NEBRASKA
FOR VALUE RECEIVED, the undersigned (the "Municipality ") promises to pay, but solely from the
sources described herein, to the order of the Nebraska Department of Environmental Quality ( "NDEQ "), or its
successors and assigns, the principal sum of not to exceed $400,000 to the extent disbursed pursuant to
Section 2.04 of the Loan Contract dated as of April 1, 2011 ( "the Loan Contract "), with interest on each such
amount until paid, as provided in Section 2.03 of the Loan Contract between NDEQ and the Municipality. In
addition, the Municipality shall pay an Administrative Fee on the outstanding principal amount of this Note at
the rate of 1.0 percent per annum as provided in the Loan Contract. The said principal and interest and
Administrative Fee shall be payable in semiannual installments each payable on December 15 and June 15
of each year in accordance with Section 2.05 of the Loan Contract. Each installment shall be in the amount
set forth opposite its due date in Attachment A to the Loan Contract.
All payments under this Note shall be payable at the offices of NDEQ in Lincoln, Nebraska, and upon
the assignment of this Note to NIFA, at the principal corporate trust office of a Trustee designated by NIFA,
or such other place as NDEQ may designate in writing.
This Note is issued pursuant to and is secured by the Loan Contract and Ordinance No. 2200 of the
City of Blair, Nebraska (the "Ordinance "), the terms and provisions of which are incorporated herein by
reference.
All payments of principal of and interest on this Note and other payment obligations of the Municipality
hereunder shall be limited obligations of the Municipality payable solely out of the Wastewater User Charge
(as defined in the Loan Contract) on a parity with revenue bonds presently outstanding or hereafter issued
pursuant to Ordinances Nos. 2017 and 2190 of the Municipality and pursuant to the Ordinance and shall not
be payable out of any other revenues of the Municipality. The obligations of the Municipality under this Note
shall never constitute or give rise to a charge against its general credit or taxing power. This note shall not
be a debt of the Municipality within the meaning of any constitutional, statutory or charter limitation upon the
creation of general obligation indebtedness of the Municipality.
If default be made in the payment of any installment due under this Note or by the occurrence of any
one or more of the Events of Default specified in Article V of the Loan Contract, and if such Event of Default
is not remedied as therein provided, or by failure to comply with any provision of the Ordinance, NDEQ then,
or at any time thereafter, may give notice to the Municipality that all unpaid amounts of this Note then
outstanding, together with all other unpaid amounts outstanding under the Loan Contract, are due and
payable immediately, and thereupon, without further notice or demand, all such amounts shall become and
be immediately due and payable. Failure to exercise this option shall not constitute a waiver of the right to
exercise the same at any time in the event of any continuing or subsequent default.
The Municipality hereby waives presentment for payment, demand, protest, notice of protest and
notice of dishonor.
25
This Note an.d all instruments securing the same are to be construed according to the laws of the
State of Nebraska. Signed and sealed this 1 st day of April, 2011.
[SEAL]
CITY OF BLAIR, NEBRASKA
Attest:. r By
Title Mayor
Complete this section upon assignment of this Note to NIFA.
Pursuant to the Pledge Agreement dated as of as amended (the "Pledge Agreement "),
by and between NDEQ and the Nebraska Investment Finance Authority ( "NIFA "), and the Master Trust
Indenture dated as of , as supplemented and amended, by and between NIFA
, as trustee, NDEQ hereby assigns, grants and conveys any and all of
NDEQ's rights, title and interest in this Note to NIFA, except as provided in the Pledge Agreement, and NIFA
hereby assigns such rights, title and interest to the Trustee and any successor Trustee.
NEBRASKA DEPARTMENT OF
ENVIPPNMENTAL QUALITY
By
Lm� V G/
Title Director
Date l�l z 11
Attest:
NEBRASKA INVESTMENT FINANCE
AUTHORITY
Title
Date
We
ATTACHMENT G
CERTIFICATE OF THE CITY OF BLAIR, NEBRASKA
The following certifications are made in connection with the Contract for Loan, dated as of April 1,
2011 (the "Loan Contract ") between the Nebraska Department of Environmental Quality ( "NDEQ ") and the
City of Blair, Nebraska (the "Municipality ") for the purpose of establishing compliance by the Municipality with
requirements for the maintenance of any bonds (the "Bonds ") which may be from time to time issued by the
Nebraska Investment Finance Authority ( "NIFA ") to provide funds for deposit in the Loan Fund (as defined in
the Loan Contract).
WHEREFORE, the undersigned hereby certifies on behalf of the Municipality to NDEQ, NIFA and
any trustee for the Bonds, as follows:
1. The undersigned is authorized to make the following certifications on behalf of the Municipality.
2. The Municipality represents that it reasonably expects that the design and construction of the
Project, as defined in the Loan Contract, will commence within six months from the execution of the Loan
Contract and that the design and construction of the Project will proceed with due diligence thereafter to
completion.
3. The proceeds of the loan pursuant to the Loan Contract will be used to construct a facility that
will be owned and operated by the Municipality. There will be no contracts for the use of the facility other
than contracts on a rate scale basis. Specifically, the Municipality represents that there will be no contracts
for use of the Project that will require a non - governmental unit to make payments to the Municipality without
regard to actual use of the Project.
Dated this 1 st day of April, 2011.
CITY OF BLAIR, NEBRASKA
Title Mayor
27
ATTACHMENT
OTHER DOCUMENTS
NN
STATE OF NEBRASKA
DEPARTMENT OF ENVIRONMENTAL QUALITY
WASTEWATER FACILITIES CONSTRUCTION ASSISTANCE PROGRAM
Program 523
Program Fiscal Year: SFY2011
Authorized Representative & Title
Applicant:
Address:
James Realph, Mayor
City of Blair, Nebraska
218 South 16 Street
Blair, NE 68008 -1674
PART I: PRINCIPAL FORGIVENESS
In accordance with Neb. Rev. Stat. §81- 15,153(9) (Cum. Supp. 1996), the State of Nebraska,
Department of Environmental Quality, hereby offers principal forgiveness in the amount of $76,000 to Blair,
Nebraska, available concurrent with loan funds under the Wastewater Treatment Facilities Construction Loan
Fund Project No. C317638 for the construction of the eligible wastewater treatment facilities project
described therein, in accordance with Neb. Rev. Stat. §81- 15,147 et. seq. (Reissue 1994), The Wastewater
Treatment Facilities Construction Assistance Act, and in compliance with Title 131, Nebraska Department of
Environmental Quality, Rules and Regulations for the Wastewater Treatment Facilities Construction
Assistance Program and the procedures developed in the Intended Use Plan to determine the principal
forgiveness amount based on the community's median household income as an indication of financial
hardship.
PART II: CERTIFICATION
The grantee certifies that as a condition of receipt of state allocations under this agreement, the
following stipulations apply:
1. The "2000 Census of Population" reports a population of 7,512, which qualifies the City of
Blair, Nebraska, for principal forgiveness consideration as a municipality with a population of 10,000
inhabitants or less.
2. The City of Blair, Nebraska, qualifies for financial hardship consideration as evidenced by a
median household income of $41,214 as reported by the "2000 Census of Population ".
3. Construction will not be initiated until authorized by the Nebraska Department of
Environmental Quality.
4. State allocation payments under principal forgiveness will routinely be made simultaneously
with loan payments. Payment of the amount allocated is conditional upon the availability of appropriated
funds.
5. System Records and General Accounts pursuant to Article III, Section 3.02(g) of the Loan
Contract shall be made available for inspection by the Nebraska Department of Environmental Quality at any
reasonable time.
6. The eligible project amount for combined loan and principal forgiveness is
$400,000.
-1-
7. The principal forgiveness amount of $76,000 is 19.0 percent of the eligible SRF project loan
amount of $400,000, as determined by the procedures of the Nebraska Department of Environmental Quality
SFY2011 Intended Use Plan.
8. The principal forgiveness amount may be changed by the Nebraska Department of
Environmental Quality if the eligible project amount is changed due to the actual construction bid price,
construction change orders, or other circumstances which would affect the project costs.
9. This principal forgiveness will automatically be considered null and void if the loan contract is
not executed within 180 days of the date this principal forgiveness offer is signed by the Director of the
Nebraska Department of Environmental Quality.
10. Cancellation of the City of Blair, Nebraska Loan Contract, Project No. C317638 pursuant to
Article V, Section 5.01(a) of the Loan Contract, shall result in annulment of this principal forgiveness and a
demand that any disbursed principal forgiveness funds be returned to the State of _Nebraska immediately.
11. Notice of annulment of this principal forgiveness shall be by registered mail, return receipt
requested.
12. Additional changes to this principal forgiveness not specified in the above stipulations, shall
be by amendment signed by both parties.
PART III: ACCEPTANCE
In accepting this award, (1) the undersigned represents that he /she is duly authorized to act on
behalf of the City, (2) the recipient agrees that the award is subject to the applicable provisions of §81-
15,153(9), Nebraska Revised Statutes, (Cum. Supp. 1996), and any rules and regulations or procedures
developed pursuant to the statutes, and that acceptance of any payments constitutes an agreement by the
grantee that the amounts, if any, found by the state to have been overpaid, shall be refunded or credited in
full to the State of Nebraska.
CITY OF BLAIR, NEBRASKA
By
Title Mayor
Date April 1, 2011
NEBRASKA DEPARTMENT OF
E W . ENTA nY
By
Title Director
Date I Zo 1
-2-