2002-159-Resolution No. 2002-013 Recorded 3/13/2002REVIEWED
G, COUNSEL
COUNTY OFFICIAL
MARYHSUE SPENHOLLOW, COUNTYRCLERKS IBJ �00�•i59
COMMISSIONERS' JOURNAL 03/13/2002 02:24:33 PM
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the Financing of
Assessment and Taxation Software and
Related Hardware and Landfill Excavation
Equipment in an Amount not to Exceed
$1,085,000 and the Refinancing of a Server
Based Computing Technology System in an
Amount not to Exceed $560,000.
*
* RESOLUTION NO. 2002-013
WHEREAS, the County is authorized by Oregon Revised Statutes Section 271.390 to enter into
loan agreements to finance real or personal property which the Board of County Commissioners
determines is needed; and,
WHEREAS, the County is authorized by ORS 287.053 to make these loan agreements "limited
tax bonded indebtedness" which the County is unconditionally obligated to pay; and,
WHEREAS, the Board hereby determines that the acquisition, implementation, conversion and
development of assessment and taxation software and related hardware and improvements (the "A&T
Project") and the acquisition of equipment for landfill excavation (the "Excavation Equipment
Project," collectively with the A&T Project, the "Projects") are needed, and that it is desirable to
obtain financing for such Projects in the aggregate principal amount of not more than $1,085,000
pursuant to ORS 271.390 and ORS 287.053; and
WHEREAS, the County entered into a $806,000 Financing Agreement in 2000 (the "2000
Financing Agreement") to finance the costs of acquiring a server based computing technology system;
and
WHEREAS, the County may be able to reduce its debt service costs by refinancing the 2000
Financing Agreement pursuant to ORS 271.390 and ORS 287.053, now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES
COUNTY, OREGON, as follows:
Section 1. AUTHORIZATION.
The Finance Director or the Finance Director's designee (the "Finance Director") is hereby
authorized on behalf of the County and without further action by the Board, to:
PAGE 1 OF 3 - RESOLUTION NO. 2002-013 (03/13/02)
1. 1. Finance the A&T Project, or the Excavation Equipment Project, or both Projects under
the authority of ORS 271.390 and ORS 287.053, plus any amounts required to pay costs of the
financing, in an aggregate principal amount of not more than One Million Eighty -Five Thousand
Dollars ($1,085,000).
1.2. Refinance the 2000 Financing Agreement under the authority of ORS 271.390 and ORS
287.053, plus any amounts required to pay costs of the refinancing, in an aggregate principal amount
not to exceed Five Hundred Sixty Thousand Dollars ($560,000).
1.3. Negotiate, execute and deliver one or more loan agreements, credit facilities or other
financing documents (the "Loan Agreements") for the financing of the Projects and the refinancing of
the 2000 Financing Agreement, which obligates the County to repay the principal amounts of the Loan
Agreements with interest.
1.4. Establish the final principal amount, maturity schedule, interest rates, redemption terms,
payment terms and dates, and other terms of the Loan Agreements, and the terms under which the
Bonds are offered for sale.
1.5. Consult with the County's Financial Advisor, and negotiate the terms of the Loan
Agreements on terms beneficial to the County.
1.6. Determine the final maturity amount of the Loan Agreements, costs of issuance and
reserves, if required.
1.7. Renew, extend or refund the Loan Agreements.
1.8. Take any other action and sign any other documents, certificates and undertakings
required in connection with the execution of the Loan Agreements that the Finance Director finds will
be advantageous to the County.
Section 2. SECURITY.
The Loan Agreements shall constitute limited tax bonded indebtedness as defined in ORS
287.053 and the obligation of the County to make loan payments under the Loan Agreements is
unconditional. The Finance Director may pledge the County's full faith and credit and taxing power
within the limitations of Section 11 and l lb of Article XI of the Oregon Constitution, and any and all
of the County's legally available funds, including the proceeds of the Loan Agreements, to make the
payments due under the Loan Agreements.
Section 3. MAINTENANCE OF TAX-EXEMPT STATUS.
3.1. The County covenants to comply with all provisions of the Internal Revenue Code of
1986, as amended (the "Code") which are required for interest paid on the Loan Agreements to be
excluded from gross income for federal income tax purposes. The County makes the following
specific covenants with respect to the Code:
PAGE 2 OF 3 - RESOLUTION NO. 2002-013 (03/13/02)
3.1.1. The County shall not take any action or omit any action, if it would cause the
Loan Agreements to become "arbitrage bonds" under Section 148 of the Code and shall pay
any rebates or penalties to the United States, which are required by Section 148(f) of the Code.
3.1.2. The County shall operate the facilities financed or refinanced with the Loan
Agreements so that the Loan Agreements are not "private activity bonds" within the meaning
of Section 141 of the Code.
3.2. The covenants contained in this Section 3 and any covenants in the closing documents
for the Loan Agreements shall constitute contracts with the lenders, and shall be enforceable by them.
Section 4. BANK DESIGNATION.
The County designates the Loan Agreements as "qualified tax-exempt obligations" pursuant to
Section 265(b)(3) of the Code. The County (and all subordinate entities thereof, if any) reasonably
expects to issue not more than $10,000,000 of tax-exempt obligations during the current calendar year.
DATED this3/day of )�.�il/� �'i1/� , 2002.
ATTEST:
Recording Secretary
PAGE 3 OF 3 - RESOLUTION NO. 2002-013 (03/13/02)
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TOM DEW hair
D NNIS R. LUKE, Commissioner
MIC1fAfL M. ALY, Co missioner