A RESOLUTION PROVIDING FOR GIVING OF A CONDITIONAL NOTICE OF PREPAYMENT OF CERTAIN LOANS BETWEEN THE CITY OF LAWRENCE, KANSAS AND THE KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT.
WHEREAS, on July 18, 2001, the City of Lawrence, Kansas (the “City”), entered into a Loan Agreement with The Kansas Department of Health and Environment (“KDHE”) in the original principal amount of $7,000,000 for KPWSLF Project No. 2285 (the “Project No. 2285 Loan Agreement”); and
WHEREAS, on March 11, 2002, the City entered into a Loan Agreement with KDHE in the original principal amount of $5,620,015 for KPWSLF Project No. 2087 (the “Project No. 2087 Loan Agreement,” and together with the Project No. 2285 Loan Agreement, the “Loan Agreements”); and
WHEREAS, the City has determined that due to the current interest rate environment, the City has the opportunity to issue its general obligation refunding bonds in order to achieve an interest cost savings on the debt represented by the Loan Agreements.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS, AS FOLLOWS:
Section 1. The Governing Body hereby authorizes the City Manager to give a conditional notice of prepayment of the Loan Agreements to KDHE in substantially the form attached hereto as Exhibit A at least 60 days prior to the expected prepayment date.
Section 2. The officers and officials of the City, including the Mayor, Finance Director, Clerk, George K. Baum & Company (the “Financial Advisor”) and Gilmore & Bell, P.C. (“Bond Counsel”), are hereby authorized and directed to execute all other documents and take such other actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability.
Section 3. This Resolution shall take effect and be in full force immediately after its adoption by the governing body.
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ADOPTED by the governing body of the City this ______ day of July, 2010.
________________________________
Mayor
(SEAL)
ATTEST:
_______________________________________
City Clerk
EXHIBIT A
July 28, 2010
Department of Health and Environment
Bureau of Water – Public Water Supply
1000 SW Jackson, Suite 420
Topeka, Kansas 66612-1367
Attn: David Waldo, Director
CONDITIONAL NOTICE OF PREPAYMENT
Re: Loan Agreement between The Kansas Department of Health and Environment Acting on Behalf of the State of Kansas and the City of Lawrence, Kansas, KPWSLF Project No. 2285, effective as of July 18, 2001; and Loan Agreement between The Kansas Department of Health and Environment Acting on Behalf of the State of Kansas and the City of Lawrence, Kansas, KPWSLF Project No. 2087, effective as of March 22, 2002 (the “Loan Agreements”)
Notice is hereby given pursuant to Section 2.05(b) of the above-referenced Loan Agreements that the City of Lawrence, Kansas (the “City”) desires to prepay the Loan Agreements in full on September 27, 2010. Such prepayment is subject to the availability of funds therefore from the proceeds of refunding bonds to be issued by the Issuer.
KDHE is requested to complete the attached Certification acknowledging receipt of this Conditional Notice of Prepayment and forward a copy of same to the undersigned.
CITY OF LAWRENCE, KANSAS
By _________________________________________
City Manager
Cc: General Counsel
Department of Health and Environment
1000 SW Jackson, Suite 420
Topeka, Kansas 66612-1367
Kansas Development Finance Authority
555 S. Kansas Avenue, Suite 202
Topeka, Kansas 66603
Attn: Executive Vice President and
General Counsel
Gilmore & Bell, P.C.
2405 Grand Blvd., Suite 1100
Kansas City, MO 64108
Attn: Gina Riekhof
CERTIFICATION
Re: Loan Agreement between The Kansas Department of Health and Environment Acting on Behalf of the State of Kansas and the City of Lawrence, Kansas, KPWSLF Project No. 2285, effective as of July 18, 2001; and Loan Agreement between The Kansas Department of Health and Environment Acting on Behalf of the State of Kansas and the City of Lawrence, Kansas, KPWSLF Project No. 2087, effective as of March 22, 2002 (the “Loan Agreements”)
The undersigned, as an authorized representative of The Kansas Department of Health and Environment (“KDHE”), does hereby certify as follows:
1. Capitalized terms not defined herein, shall have the meanings ascribed thereto in the attached Conditional Notice of Prepayment or the Loan Agreements defined therein.
2. KDHE has received the attached Conditional Notice of Prepayment, evidencing the City of Lawrence, Kansas’s (the “City’s”) intent to prepay the above-referenced Loan Agreements on September 27, 2010 (the “Prepayment Date”).
3. The full prepayment amount of the Loans, as determined pursuant to the Loan Agreements is calculated as follows:
|
Principal Amount of Loan for KPWSLF Project No. 2087 |
$_____________.__ |
|
Accrued Interest to Prepayment Date |
_____________.__ |
|
Subtotal for Project No. 2087 |
$_____________.__ |
|
|
|
|
Principal Amount of Loan for KPWSLF Project No. 2285 |
$_____________.__ |
|
Accrued Interest to Prepayment Date |
_____________.__ |
|
Subtotal for Project No. 2285 |
$_____________.__ |
|
|
|
|
Total |
$_____________.__ |
DATED as of July ___, 2010.
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
By ______________________________________
Name: ___________________________________
Title: ____________________________________