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HomeMy WebLinkAbout187-11 RESOLUTIONRESOLUTION NO. 187-11 A RESOLUTION AMENDING RESOLUTION NO. 140-11 AND APPROVING A PARTICIPATION AND UNSECURED LOAN AGREEMENT WITH MOUNT SEQUOYAH CENTER, INC. TO PERFORM ENERGY RETROFIT SERVICES IN THE AMOUNT OF $164,536.68 AS PART OF THE CITY OF FAYETTEVILLE COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Resolution No. 140-11 and approves a participation and unsecured loan agreement with Mount Sequoyah Center, Inc. to perform energy retrofit services in the amount of $164,536.68 as part of the City of Fayetteville Community Revolving Loan Fund for Energy Efficiency. PASSED and APPROVED this 1St day of November, 2011. APPROVED: ATTEST: By: SONDRA E. SMITH, City Clerk/Treasurer John Coleman Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 11/1/2011 City Council Meeting Date Agenda Items Only Division Action Required: Sustainability & Strategic Planning Department A resolution to approve an amended agreement with Mt. Sequoyah Retreat Center to replace the roof on the Cafeteria Building. This amendment will take the total contract amount to $164,536.68 and set a schedule for repayment to the City of Fayetteville with energy savings to defray the costs. $43,536.00 Cost of this request Account Number 09011.0020 Project Number Budgeted Item 220,000.00 Category / Project Budget 169,421.15 Energy Block Grant Program Category / Project Name Energy Block Grant Funds Used to Date Program / Project Category Name 50,578.85 Energy Block Grant Remaining Balance Fund Name Budget Adjustment Attached Departmen i irector 4/4:// Ci orney W/W1 Previous Ordinance or Resolution # 140-11 Date Original Contract Date: Original Contract Number: Date 1b—t1 '2 Finance and Internal Services Director Date Received in City Clerk's Office 10.1 4-1 1 A10:46 RCVD Received in Mayor's Office Comments: Revised January 15, 2009 aye evi le THE CITY OF FAYETTEVILLE, ARKANSAS CORRESPONDENCE 125 W. Mountain St. Fayetteville, AR 72701 Telephone: (479) 575-8272 TO: Lioneld Jordan, Mayor Sc_ FROM: John Coleman, Director of Sustainability & Strategic Planning Thru: Don Marr, Chief of Staff DATE: October 12, 2011 SUBJECT: Community Revolving Loan Fund — Amended Contract with Mt Sequoyah Description Using funds from the Energy Efficiency and Conservation Block Grant as part of the American Recovery and Reinvestment Act (ARRA), the City has allocated $220,000 to create the Community Revolving Loan Fund. This Fund provides low interest loans to non- profits to perform energy efficiency and renewable energy improvements for which they payback using the energy savings. The City has completed contract work in the amount of $121,000.68 at Mt Sequoyah in the form of heating and air conditioning, insulation, and windows and doors on three buildings. The purpose of this resolution is to increase the contract amount by $43,536 with Mt. Sequoyah Retreat Center to install an Energy Star rated roof to the cafeteria building. This scope of work is covered in Resolution 71-11 which approved the contract with Scheffer's Roofing. This project will take the RLF to 97% complete and the total Energy Block Grant to 96% complete. Budget Impact The additional $43,536 in construction costs will be paid for by Energy Efficiency and Conservation Block Grant funding as obtained by the City of Fayetteville in September 2009. RESOLUTION NO. A RESOLUTION AMENDING RESOLUTION NO. 140-11 AND APPROVING A PARTICIPATION AND UNSECURED LOAN AGREEMENT WITH MOUNT SEQUOYAH CENTER, INC. TO PERFORM ENERGY RETROFIT SERVICES IN THE AMOUNT OF $164,536.68 AS PART OF THE CITY OF FAYETTEVILLE COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Resolution No. 140-11 and approves a participation and unsecured loan agreement with Mount Sequoyah Center, Inc. to perform energy retrofit services in the amount of $164,536.68 as part of the City of Fayetteville Community Revolving Loan Fund for Energy Efficiency. PASSED and APPROVED this 1st day of November, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY PARTICIPATION AND UNSECURED LOAN AGREEMENT THIS AGREEMENT, made and entered this 14th day of October, 2011, by and between the City of Fayetteville, Arkansas, an Arkansas municipal corporation with its principal offices at 113 W. Mountain Street, Fayetteville, Arkansas 72701 ("City"), and Mount Sequoyah Center, Inc, an Arkansas (corporation/limited liability company) with its principal offices at 150 NW Skyline Drive, Fayetteville, AR 72701 ("Borrower"), herein collectively referred to as the "parties". IN CONSIDERATION OF THE MUTUAL OBLIGATIONS AND COVENANTS CONTAINED HEREIN, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HEREBY AGREE AS FOLLOWS: 1. Borrower agrees to participate in the City's Community Revolving Loan Fund for Energy Efficiency ("fund") for the provision of energy efficiency upgrades to real estate located at 150 NW Skyline Drive, Fayetteville, AR ("property") pursuant to its approved application and description of work which are incorporated into this Agreement as Exhibit 1. 2. Borrower covenants that it has good and marketable title to said property, is financially sound, has not, within the past ten (10) years, filed for bankruptcy protection under Title 11 of the United States Code, and has no plans to do so. 3. Borrower agrees that the provision of energy efficiency upgrades to the property by the City is made pursuant a fund program established by the City and funded by a federal grant. Usage of said fund is governed by local, state and federal law and regulations, as well as conditions in the City's grant agreement with the federal government. Borrower agrees that it will, in all ways, comply with any and all requirements imposed as a condition of the grant, or as otherwise required by law. 4. Borrower agrees to pay to the City the costs incurred by the City for energy efficiency upgrades to the property, and further agrees to execute a promissory note, payable to the City of Fayetteville, upon completion of the work, in the full amount of the costs of the upgrades performed on the property. 5. City agrees to procure and effectuate energy efficiency upgrades for the property pursuant to the approved application and description of work incorporated as Exhibit 1, 1 and agrees to accept a promissory note from Borrower in an amount equal to the cost of all energy efficiency improvements performed by the City and/or its contractors or agents on the property. 6. Default. The occurrence of any of the following shall constitute default under this Agreement: (a) Borrower's failure to pay the City the costs incurred by the City for energy efficiency upgrades to the property; (b) Borrower's failure to execute a promissory note payable to the City in the total amount of the cost of the energy efficiency upgrades to the property; (c) Borrower's failure to observe, perform, or comply with any non -monetary conditions or covenants of this Agreement, including failure to abide by applicable local, state or federal law, or applicable federal grant requirements of the City, or any other condition of the fund; (d) Any change in the status of the Borrower as an Arkansas corporation or limited liability company authorized to do business in the State of Arkansas; (e) Borrower's failure to pay any debt when due or Borrower's filing for bankruptcy protection under Title 11, United States Code. (f) Any sale, pledge, assignment, transfer or hypothecation of the property in any manner without the City's prior written consent; (g) Borrower's failure to comply with any requirement relating to its corporate status or qualification; and (h) Borrower's failure to comply with any condition, requirement or purpose of the City's fund, as created and authorized pursuant to federal grant funding provided pursuant to the American Recovery and Reinvestment Act of 2009 and applicable federal regulations. 7. This Agreement represents the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior oral and written agreements. 2 8. This Agreement and all other documents, including the promissory note to be executed by Borrower, shall be governed by the laws of the State of Arkansas. No change, modification or waiver of any provision thereof shall be valid unless in writing, and signed by the party to be charged. The parties hereby agree that the forum for any and all legal disputes arising regarding this Agreement shall be in the Circuit Court of Washington County, Arkansas, with Arkansas law to apply. 9. Indemnification. Borrower shall indemnify City and its officers, employees, and agents and defend and hold each harmless from and against all claims, injury, damage, loss and liability, cost and expense (including attorneys' fees, costs, and expenses) of any and every kind to any persons or property by reason of (i) the work procured by this Agreement or the operation or maintenance of the property, (ii) any construction on or about the property, (iii) any environmental matters or hazardous materials located on or about the property, (iv) any Default, as defined herein, or (v) any other matter arising in connection with the loan, Borrower, the property or the work procured by this Agreement as a whole. 10. Insurance. Borrower shall at all times maintain liability insurance on the property. 11. All notices, requests, demands, consents, waivers and other communications given under any of the provisions of this Agreement shall be in writing and shall be delivered by first- class U.S. Mail, addressed as stated below or to such other address as the addressee may have specified in a notice duly given to the other addresses. To City: City of Fayetteville Office of Mayor 113 W. Mountain Fayetteville, AR 72701 To Borrower: Mount Sequoyah Center, Inc 150 NW Skyline Drive Fayetteville, AR 72701 12. Severability. If any provision of this Agreement shall, for any reason, be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability 3 shall not affect any other provision of the Agreement, the Agreement shall be construed as if such illegal, invalid or unenforceable provision had never been contained herein. 13. No delay or failure on the part of the City in exercising any rights under this Agreement, or the promissory note to be executed pursuant hereto, and no partial or single exercise thereof, shall constitute a waiver of such rights or of any other rights under the Agreement or promissory note. 14. Freedom of Information Act. City contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City, Borrower will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (Ark. Code Ann. § 25-19-101, et seq.) . Only legally authorized photo copying costs pursuant to the FOIA may be assessed for this compliance. IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by its duly -authorized representative as of the day and year first above written. CITY OF FAYETTEVILLE, ARKANSAS, An Arkans., s Muni i Corporation By: May Attest: City Cl-rk Treasurer RKI .*%;\ o • • ;�AY�TTEVIL.LEB Cjiti 0 Mount Sequoyah Center, Inc, `'`'� �AIG jO rG,� An Arkans. corporation/limited liability company By: Name John Altland, Executive Director 4 COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY UNSECURED NOTE $164, 536.68 14th day of October, 2011 FAYETTEVILLE, ARKANSAS FOR VALUE RECEIVED, the undersigned (the "Borrower") promises to pay to the order of THE CITY OF FAYETTEVILLE, ARKANSAS ("Payee"), the principal sum of One Hundred Sixty Four Thousand Five Hundred Thirty Six Dollars, and Fifty Eight Cents ($164,536.68). Provided that no event of default exists hereunder, this Promissory Note shall bear interest from the date of this Promissory Note at the rate of ONE percent (1 %) per annum. In the event of a default hereunder, this Promissory Note shall bear interest at the maximum rate of interest allowable under the laws of the state of Arkansas. This Promissory Note shall become due and payable, as follows: Principal and interest shall be due and payable in one hundred twenty (120) consecutive monthly installments of $1,441.41 each. The first such installment shall be due and payable on January 15, 2012 and each successive monthly installment shall be due and payable on the fifteenth day of each calendar month thereafter until this Promissory Note is paid in full. All payments shall be applied first to interest and the balance to principal. The Borrower and any maker, endorsers, sureties, guarantors, and all other persons now or hereafter liable hereon waive presentment, demand for payment, protest and notice of dishonor, and the endorsers, sureties, and guarantors consent that the Payee or holder hereof shall have the right, without notice, to deal in any way at any time with any party hereto or to grant to any such party any extensions of time for payment of any of said indebtedness or any other indulgences or forbearances whatever without in any way affecting the personal liability of any party hereunder. If at any time any payment under this Promissory Note becomes more than sixty (60) days past due, the Payee or holder of this Promissory Note shall have the right and option to declare the entire unpaid balance of principal and interest due and owing hereunder to be immediately due and payable. If this obligation, after default, is placed in the hands of an attorney for collection, the Borrower will be obligated to pay the Payee or the holder hereof an additional sum as an attorney's fee, not to exceed ten percent (10%) of the unpaid principal plus all accrued interest together with all costs and expenses of collection. Any notices required to be given hereunder shall be deemed effective if made to the following addresses: 1 If to Payee: CITY OF FAYETTEVILLE, ARKANSAS OFFICE OF MAYOR 113 W. MOUNTAIN FAYETTEVILLE, ARKANSAS 72701 If to Borrower: Mt Sequoyah Center, Inc 150 NW Skyline Drive Fayetteville, AR 72701 Any party to this Promissory Note may change their respective address for notice by the giving of written notice to each party. The loan evidenced by this Promissory Note was negotiated and consummated in the state of Arkansas and it is understood and agreed that the legality, enforceability, and construction hereof shall be governed by Arkansas law, and to the extent applicable, by the laws of the United States of America. This Promissory Note can be pre -paid in whole or in part at any time without penalty. BORROWER: p1ou - - Setpo C f1/1 C By : AUTHO ZED AGE Tr J ,e 2 RESOLUTION NO. 140-11 A RESOLUTION APPROVING A PARTICIPATION AND UNSECURED LOAN AGREEMENT WITH MOUNT SEQUOYAH CENTER, INC. TO PERFORM ENERGY RETROFIT SERVICES IN THE AMOUNT OF $121,000.08 AS PART OF THE CITY OF FAYETTEVILLE COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a participation and unsecured loan agreement with Mount Sequoyah Center, Inc. to perform energy retrofit services in the amount of $121,000.08 as part of the City of Fayetteville Community Revolving Loan Fund for Energy Efficiency. PASSED and APPROVED this 16th day of August, 2011. APPROVED: ATTEST: By: - 6I-44.8.) . .. _fifilaZi SONDRA E. SMITH, City Clerk/Treasurer John Coleman Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 8/1612011 City Council Meeting Date Agenda Items Only Sustainability & Strategic Planning Division Action Required: Chief of Staff Department A resolution to approve an agreement with Mt. Sequoyah Retreat Center to perform energy retrofit services in the amount of $121,000.68 and set a schedule for repayment to the City of Fayetteville with energy savings to defray the costs. $121,000.68 Cost of this request Account Number 09011.0020 Project Number Budgeted Item 220,000.00 Category / Project Budget. Energy Block Grant Program Category / Project Name Energy Block Grant Funds Used to Date Program / Project Category Name 220,000,00 Remaining Balance Budget Adjustment Attached tiorney (, .f Date. 4•,1 0. Finance and Internal Services Director Date g12 - Date 14,ttk_ Dte; Energy Block Grant Fund Name Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City !y7..2) —i 1 Psi g . c •/ Clerk's `Office eV( Received in Mayor's Office Comments: Revised January 15, 2009 THE CITY OF FAYETTEVILLE, ARKANSAS CORRESPONDENCE TO: Lioneld Jordan, Mayor FROM: Thru: DATE: SUBJECT:. Description 125 W. Mountain St, Fayetteville, AR 72701 Telephone: (479) 575-8272 John Coleman, Director of Don Marr, Chief of Staff July 28, 2011 Community Revolving Loan Sustainability & Strategic Planning Fund — Mt Sequoyah Using funds from the Energy Efficiency and Conservation Block Grant as part of the American Recovery and Reinvestment Act (ARRA), the City has allocated $220,000 to create the Community Revolving Loan Fund. This Fund provides low interest loans to non- profits to perform energy efficiency and renewable energy improvements for which they payback using the energy savings. The purpose of this resolution is to approve a contract in the amount of $121,000.68 with Mt. Sequoyah Retreat Center. Under this agreement the City of Fayetteville will fund energy retrofit services and set a schedule for repayment with energy savings helping to defray the costs. The scope of work is for retrofits of three buildings utilizing service contracts previously approved by the City Council. Those service contracts include Resolution 70-11 (Heating & Air Conditioning), Resolution 135-10 (Electrical Services), and Resolution 72-11 (Windows and Doors). The scope of work also includes spray foam insulation from Bid 11-47 included in tonight's Council Agenda. Budget Impact $121,000.68 in construction costs will be paid for by Energy Efficiency and Conservation Block Grant funding as obtained by the City of Fayetteville in September 2009. RESOLUTION NO. A RESOLUTION APPROVING A PARTICIPATION AND UNSECURED LOAN AGREEMENT WITH MOUNT SEQUOYAH CENTER, INC. TO PERFORM ENERGY RETROFIT SERVICES IN THE AMOUNT OF $121,000.08 AS PART OF THE CITY OF FAYETTEVILLE COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a participation and unsecured loan agreement with Mount Sequoyah Center, Inc. to perform energy retrofit services in the amount of $121,000.08 as part of the City of Fayetteville Community Revolving Loan Fund for Energy Efficiency. PASSED and APPROVED this 16th day of August, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY PARTICIPATION AND UNSECURED LOAN AGREEMENT THIS AGREEMENT, made and entered this tl day of U� , 20 11 , by and between the City of Fayettieville, Arkansas, an Arkansas municipal corporation with its principal offices at 113 W. Mountain Street, Fayetteville, Arkansas 72701 ("City") , and 0 Q 1lU1 an Arkansas (corporation/limite® liabili pang) w 1jh principal offices at ("Borrower"), herein collectively ref ed to as t.he,partie ". IN CONSIDERATION OF THE MUTUAL OBLIGATIONS AND COVENANTS CONTAINED HEREIN, AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HEREBY AGREE AS FOLLOWS: 1. Borrower agrees to participate in the City's Community Revolving Loan Fund for Energy Efficiency ("fund") for the provision of energy effici-ncy grades to real estate located at = '0 S 4 ("property") pursuant to its approve applica ion and d scription of work which axe incorporated into this Agreement as Exhibit 1. 2. Borrower covenants that it has good and marketable title to said property, is financially sound, has not, within the past ten (10) years, filed for bankruptcy protection under Title 11 of the United States Code, and has no plans to do so. 3. Borrower agrees that the provision of energy efficiency upgrades to the property by the City is made pursuant a fund program established by the City and funded by a federal grant. Usage of said fund is governed by local, state and federal law and regulations, as well as conditions, in the City's grant agreement with the federal government. Borrower agrees that it will, in all ways, comply with .any and all requirements imposed as a condition of the grant, or as otherwise required by law. 4. Borrower agrees to pay to the City the costs incurred by the City for energy efficiency upgrades to the property, and further agrees to execute a promissory note, payable to the City of Fayetteville, upon completion of the work, in the full amount of the costs of the upgrades performed on the property. 5. City agrees to procure and effectuate energy efficiency upgrades for the property pursuant to the approved application and description of work incorporated as Exhibit 1, and agrees to accept a promissory note from Borrower in an amount equal to the cost of all energy efficiency improvements performed by the City and/or its contractors or agents on the property. 6. Default. The occurrence of any of the following shall constitute default under this Agreement: (c) (d) (e) Borrower's failure to pay the City the costs incurred by the City fot energy efficiency upgrades to the property; Borrower's failure to execute a promissory note payable to the City in the total amount of the cost of the energy efficiency upgrades to the property; Borrower's failure to observe, perform, or comply with any non -monetary conditions or covenants of this Agreement, including failure to abide by applicable local, state or federal law, or applicable federal grant requirements of the City, or any other condition of the fund; Any change in the status of the Borrower as an Arkansas corporation or limited liability company authorized to do business in the State of Arkansas; Borrower's failure to pay any debt when due or Borrower's filing for bankruptcy protection under Title 11, United States Code. Any sale, pledge, assignment, transfer or hypothecation of the property in any manner without the City's prior written consent; Borrower's failure to comply withany requirement relating to its corporate status or qualification; and Borrower's failure to comply with any condition, requirement or purpose of the City's fund, as created and authorized pursuant to federal grant funding provided pursuant to the American Recovery and Reinvestment Act of 2009 and applicable federal regulations. 7. This Agreement represents the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior oral and written agreements. 2 8. This Agreement and all other documents, including the promissory note to be executed by Borrower, shall be governed by the laws of the State of Arkansas. No change, modification or waiver of any -provision thereof shall be valid unless in writing, and signed by the party to be charged. The parties hereby agree that the forum for any and all legal disputes arising regarding this Agreement shall be in the Circuit Court of Washington County, Arkansas, with Arkansas law to apply. 9. Indemnification. Borrower shall indemnify City and its officers, employees, and agents and defend and hold each harmless from and against all claims, injury, damage, loss and liability, cost and expense (including attorneys' fees, costs, and expenses) of any and every kind to any persons or property by reason of (i) the work procured by this Agreement or the operation or maintenance of the property, (ii) any construction on or about the property, (iii) any environmental matters or hazardous materials located on or about the property, (iv) any Default, as defined herein, or (v) any other matter arising in connection with the loan, Borrower, the property or the work procured by this Agreement as a whole. 10. Insurance. Borrower shall at all times maintain liability insurance on the property. 11. All notices, requests, demands, consents, waivers and other communications given under any of the provisions of this Agreement shall be in writing and shall be delivered by first- class U.S. Mail, addressed as stated below or to such other address as the addressee may have specified in a notice duly given to the other addresses. To City: City of Fayetteville Office of Mayor 113 W. Mountain Fayetteville, AR 72701 To Borrower: ova+ s Uo c C,r f rr c 6 N W t Or 12. Severability. If any provision of this Agreement shall, for any reason, be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect any other provision of the Agreement, the Agreement shall be construed as if such illegal, invalid or unenforceable provision had never been contained herein. 13. No delay or failure on the part of the City in exercising any rights under this Agreement, or the promissory note to be executed pursuant hereto, and no partial or single exercise thereof, shall constitute a waiver of such rights or of any other rights under the Agreement or promissory note. 14. Freedom of Information Act. City contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City, Borrower will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (Ark. Code Ann. § 25-19-101, et seq.) . Only legally authorized photo copying costs pursuant to the FOIA may be assessed for this compliance. IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by its duly -authorized representative as of the day and year first above written. CITY OF FAYETTEVILLE, ARKANSAS, An Arkans.s M:unic'R.al. Corporation Attest: 0 City Cl rk/Treasurer tau L(.;1? tq An Arka,.as o By: Mame Authorized Agent N :FAYETTEVILLE: ., 9 Qrao* ;:. Iii, "lotlll1lsd0 1 /4C • , ration/limited liability company L-kecc.c ri vv. 4 CONMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY UNSECURED NOTE coo GB 2 day of FAYETTEVILLE, ARKANSAS FOR VALUE RECEIVED, the undersigned (the "Borrower") promises to pay to the order of THE CITY OF FAY . r ARKANSAS. ("Payee"), the principal sum of0,;,l trd0iUt'14Ijt?E t a$) , Provided that no event of default exists hereunder, this Promissory Note shall bear interest from the date of this Promissory Note at the rate of ONE percent (1 %) per annum. In the event of a default hereunder, this Promissory Note shall bear interest at the maximum rate of interest allowable under the laws of the state of Arkansas. This Promissory Note shall become due and payable, as follows: Princi • a nd i Brest shall b and payable in ) cons t v= mon i`l /quarterly (select one) instil mens of $ Bac The fl's such installment shall be due and payable on and each successive monthly installment shall be due and p yable on the first day of each calendar month thereafter until this Promissory Note is paid in full. All payments shall be applied first to interest and the balance to principal. The Borrower and any maker, endorsers, sureties, guarantors, and all other persons now or hereafter liable hereon waive presentment, demand for payment, protest and notice of dishonor, and the endorsers, sureties, and guarantors consent that the Payee or holder hereof shall have the right, without notice, to deal in any way at any time with any party hereto or to grant to any such party any extensions of time for payment of any of said indebtedness or any other indulgences or forbearances whatever without in any way affecting the personal liability of any party hereunder. If at any time any payment under this Promissory Note becomes more than sixty (60) days past due, the Payee or holder of this Promissory Note shall have the right and option to declare the entire unpaid balance of principal and interest due and owing hereunder to be immediately due and payable. If this obligation, after default, is placed in the hands of an attorney for collection, the Borrower will be obligated to pay the Payee or the holder hereof an additional sum as an attorney's fee, not to exceed ten percent (10%) of the unpaid principal plus all accrued interest together with all costs and expenses of collection. Any notices required to be given hereunder shall be deemed effective if made to the following addresses: If to Payee: CITY OF FAYETTEVILLE, ARKANSAS OFFICE OF MAYOR 113 W. MOUNTAIN FAYETTEVILLE, ARKANSAS 72701 If to Borrower: Any party to this Promissory Note may change their respective address for notice by the giving of written notice to each party. The loan evidenced by this Promissory Note was negotiated and consummated in the state of Arkansas and it is understood and agreed that the legality, enforceability, and construction hereof shall be governed by Arkansas law, and to the extent applicable, by the laws of the United States of America. This Promissory Note can be pre -paid in whole or in part at any time without penalty. BORROWER: By: AUTH u 7 RIZED'AGENT �/�(�L v� ��` 7� !/z EO -7V %� John Coleman Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements ]72012 City Council Meeting Date Agenda Items Only Division Action Required: ilia • Seititkuck. liAuttir Sustainability & Strat Planning Department The purpose of this resolution is to approve the final promissory note in the amount of $170,726 with Mt. Sequoyah Retreat Center. Under this agreement the City of Fayetteville has funded energy retrofit services and set a schedule for repayment with energy savings helping to defray the costs. Cost of this request 2240.9240.5342.99 Account Number 09011.0020 Project Number 220, 000.00 Category / Project Budget 165,165.79 Energy Block Grant Program Category / Project Name Energy Block Grant Funds Used to Date Program / Project Category Name 54,824.31 Energy Block Grant Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached lin L____( Q eLezk) Departm , I irector 17. orney Finance and Internal Services Director 3//4 Previous Ordinance or Resolution # 187-11 Date /_ (ter-ly Date a—�9-2-0V2 Date /— 2-o -/V Date D to Original Contract Date: Original Contract Number: Received in City Clerk's Office 01-19-12A09:35 RCVD i Received in Mayor's Office Comments: Revised January 15, 2009 ARKANSAS THE CITY OF FAYETTEVILLE, ARKANSAS CORRESPONDENCE 125 W. Mountain St. Fayetteville, AR 72701 Telephone: (479) 575-8272 TO: Lioneld Jordan, Mayor FROM: John Coleman, Director of Sustainability & Strategic Planning Thru: Don Marr, Chief of Staff DATE: January 13, 2012 SUBJECT: Community Revolving Loan Fund — Mt Sequoyah Description Using funds from the Energy Efficiency and Conservation Block Grant as part of the American Recovery and Reinvestment Act (ARRA), the City has allocated $220,000 to create the Community Revolving Loan Fund. This Fund provides low interest loans to non- profits to perform energy efficiency and renewable energy improvements for which they payback using the energy savings. The purpose of this resolution is to approve the final promissory note in the amount of $170,726 with Mt. Sequoyah Retreat Center. Under this agreement the City of Fayetteville has funded energy retrofit services and set a schedule for repayment with energy savings helping to defray the costs. The scope of work included the retrofit of three buildings utilizing service contracts previously approved by the City Council. Those service contracts include Resolution 70-11 (Heating & Air Conditioning), Resolution 135-10 (Electrical Services), Resolution 71-11 (Roofing), Resolution 141-11 (insulation) and Resolution 72-11 (Windows and Doors). Budget Impact $170,726 in construction costs were paid for by Energy Efficiency and Conservation Block Grant funding as obtained by the City of Fayetteville in September 2009. This promissory note sets the final payment schedule and loan amount with the Mt. Sequoyah Retreat Center. COMMUNITY REVOLVING LOAN FUND FOR ENERGY EFFICIENCY UNSECURED NOTE $170,726 13uday of January, 2012 FOR VALUE RECEIVED, t pay to the order of THE CI principal sum of One Hundr Six Dollars ($170,726). hereunder, this this Promissory the event of a interest at the the FAYETTEVILLE, ARKANSAS Ot e "Borrower") promises to , ARKANSAS ("Payee"), the d Seven Hundred and Twenty (146 event of default exists Promissory s'.11 .e`r interest from the date of Note at the r ONE percent (1 %) per annum. In default hereunder, this Promissory Note shall bear maximum rate of interest allowable under the laws of state of Arkansas. This Promissory Note shall become due and payable, as follows: Principal and interest shall be due and payable in one hundred twenty (120) consecutive monthly installments of $1,495.64 each. The first such installment shall be due and payable on March 1, 2012 and each successive monthly installment shall be due and payable on the fifteenth day of each calendar month thereafter until this Promissory Note is paid in full. All payments shall be applied first to interest and the balance to principal. The Borrower and any maker, endorsers, sureties, guarantors, and all other persons now or hereafter liable hereon waive presentment, demand for payment, protest and notice of dishonor, and the endorsers, sureties, and guarantors consent that the Payee or holder hereof shall have the right, without notice, to deal in any way at any time with any party hereto or to grant to any such party any extensions of time for payment of any of said indebtedness or any other indulgences or forbearances whatever without in any way affecting the personal liability of any party hereunder. If at any time any payment under this Promissory Note becomes more than sixty (60) days past due, the Payee or holder of this Promissory Note shall have the right and option to declare the entire unpaid balance of principal and interest due and owing hereunder to be immediately due and payable. If this obligation, after default, is placed in the hands of an attorney for collection, the Borrower will be obligated to pay the Payee or the holder hereof an additional sum as an attorney's fee, not to exceed ten percent (10%) of the unpaid principal plus all accrued interest together with all costs and expenses of collection. Any notices required to be given hereunder shall be deemed effective if made to the following addresses: 1 r If to Payee: CITY OF FAYETTEVILLE, ARKANSAS OFFICE OF MAYOR 113 W. MOUNTAIN FAYETTEVILLE, ARKANSAS 72701 If to Borrower: Mt Sequoyah Center, Inc 150 NW Skyline Drive Fayetteville, AR 72701 Any party to this Promissory Note may change their respective address for notice by the giving of written notice to each party. The loan evidenced by this Promissory Note was negotiated and consummated in the state of Arkansas and it is understood and agreed that the legality, enforceability, and construction hereof shall be governed by Arkansas law, and to the extent applicable, by the laws of the United States of America. This Promissory Note can be pre -paid in whole or in part at any time without penalty. BORROWER: koa Mt Sequoyah Retreat Center By :i5k,-At ��. AUTHORIZED AGENT 2