[Adopted 12-20-1972 by Ord. No. 11-1972 (Ch. 19, Art. II, of the 1994 Code)]
The Borough hereby authorizes the incurring
of self-liquidating lease rental debt in the form of the guaranty
contained in the service agreement hereinafter recited, to secure
the payment of principal and interest on the sewer revenue bonds to
be issued by the Lower Lackawanna Valley Sanitary Authority in the
amount of $4,600,000, and sewer revenue bonds (term bonds) in the
amount of $23,000, which the Authority proposes to issue to provide
funds for and toward the costs of construction of a joint wastewater
collection and treatment facility to serve the Lower Lackawanna Valley
(the "project"), such project to consist of the construction of a
six-million-gallon-capacity wastewater treatment plant in Duryea Borough
and approximately 67,500 linear feet of intercepting sewer, together
with intercepting chambers, for the purpose of collecting sewage from
the municipalities and transporting such sewage to the treatment facilities,
all as more fully described in the special report to the Lower Lackawanna
Valley Sanitary Authority, dated August 1972, prepared by Albright &
Friel (the "engineers"), consulting engineers to the Authority, a
copy of which had been delivered to the Borough and is hereby approved.
The report of the engineers, entitled "Cost
Estimates for the Lower Lackawanna Valley Sanitary Authority Wastewater
Collection and Treatment Facilities," dated December 8, 1972, containing
realistic cost estimates for the authority facilities, has been presented
to the Borough and is hereby accepted and approved.
Should the Borough fail to approve the report
required by Section 206 of the Debt Act[1] for the exclusion of self-liquidating debt (which report shall be prepared for the Borough by the engineer following the Authority's receipt of a proposal for the purchase of its bonds) by ordinance (the "Exclusion Ordinance") or should the Department of Community and Economic Development fail to approve the exclusion of the debt authorized to be incurred by § 6-7 hereof, the authorization to incur such debt may be terminated by ordinance.
[1]
Editor's Note: See now 53 Pa.C.S.A. § 8001
et seq.
The realistic estimated useful life of the project
is hereby declared to be 50 years.
Upon the enactment of the Exclusion Ordinance,
the Mayor or, in his absence, the President of Council and the Borough
Secretary, or their duly appointed successors, as the case may be,
are hereby authorized and directed to prepare, certify and file with
the Department of Community and Economic Development, in accordance
with the Local Government Unit Debt Act,[1] a debt statement required by Section 410 thereof and are
further hereby authorized and directed to prepare and file originally
and annually thereafter, as required, with the Department of Community
and Economic Development and the Recorder of Deeds in the county in
which the Borough is located any statements required by Section 206
of the Local Government Unit Debt Act which are necessary to qualify
that portion of the gross lease rental debt of the Borough, securing
the payment of principal and interest on the aforementioned sewer
revenue bonds of the Lower Lackawanna Valley Sanitary Authority, which
may be excluded from such gross lease rental debt as self-liquidating
debt for the purposes of establishing the net lease rental debt of
the Borough and determining its debt limit.
[1]
Editor's Note: See now 53 Pa.C.S.A. § 8001 et seq.
Subject to the receipt of the approval of the Department of Community and Economic Development mentioned in § 6-9 hereof and of the approval of the authorization to incur debt, the Mayor or, in his absence, the President of Council is hereby authorized and directed to execute, acknowledge and deliver to the Authority and the Borough Secretary is hereby authorized and directed to affix and attest the Corporate Seal of the Borough to a service agreement in substantially the following form, with such changes therein as counsel may advise and the officers executing the same may approve, their approval to be evidenced by their execution thereof.[1]
[1]
Editor's Note: The service agreement is included at the end of this chapter.
