On December 21, 2009, the council authorized a loan application for the issuance of Department of Natural Resources and Conservation revenue bonds to pay for the cost of the ultraviolet (UV) disinfection system improvement project.  The UV disinfection system improvement project includes construction of a UV disinfection system for the effluent of the wastewater treatment plant and is primarily intended to support existing capacity.  

This resolution authorized the issuance of the $4,100,000 bond and fixes the terms and conditions of the bond. 

The Council may:

• Approve the resolution fixing the form and detail of the DNRC loan and bonds; or
• Not approve the resolution fixing the form and detail of the DNRC loan and bonds. 

There will be three parts to the loan. Loan A has a principal amount of $384,000 but will be forgiven.  Loan B has a principal amount of $816,000.  Loan C has a principal amount of $2,900,000.  Loan B & C will be issued at an interest rate of 3.75%.  The bond term will be 20 years and the estimated annual debt payment will be $293,000.

It is recommended that the City Council approve the attached resolution.