2003-90-Resolution No. 2003-016 Recorded 2/13/2003REV
LEG NSEL
DESCHUTES COUNTY OFFICIAL RECORDS CJ 2003'90
NANCY BLANKENSHIP, COUNTY CLERK
COMMISSIONERS' JOURNAL 0111311403 01'3648 PM
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the Financing
Various Capital Construction and
Improvement Projects an amount not to
exceed $32,350,000.
RESOLUTION NO. 2003-016
WHEREAS, the County is authorized by Oregon Revised Statutes Section 271.390 to enter
into loan agreements to finance real or personal property and to authorize certificates of participation
in the right to receive the payments due from the County under those loan agreements; 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 construction of the County/State
Government Center, the La Pine County Service Center, a new County warehouse, and storage
buildings for the fair/expo center; sewer system improvements for the La Pine Sewer District; solid
waste facilities; improvements to increase capacity to the County Sheriff radio system; and various
property acquisition, remodeling and infrastructure projects and other projects associated with the
construction projects (the "Projects") are needed, and that it is desirable to obtain financing for such
Projects in the aggregate principal amount of not more than $32,350,000 pursuant to ORS 271.390
and ORS 287.053; and
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON, as follows:
Section 1. Authorization.
The Finance Director, the County Administrator or the Finance Director's designee (the
"County Official") is hereby authorized on behalf of the County and without further action by the Board,
to:
1.1. Finance one or all of the 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 Thirty -Two Million Three Hundred FiftyThousand Dollars ($32,350,000).
1.2. Negotiate, execute and deliver one or more loan agreements, credit facilities or other
financing documents (the "Loan Agreements") for the financing of the Projects which obligates the
County to repay the principal amounts of the Loan Agreements with interest.
1.3. Negotiate, execute and deliver one or more escrow agreements or similar documents
(the "Escrow Agreements") which provide for the issuance of one or more series of "certificates of
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participation" or "full faith and credit obligations" (the "Obligations") which represent ownership
interests in the loan payments due from the County under the Loan Agreements. Subject to the
limitations of this Resolution, the Escrow Agreements and each series of Obligations may be in such
form and contain such terms as the County Official may approve.
1.4. Covenant for the benefit of the owners of tax-exempt Obligations to comply with all
provisions of the Internal Revenue Code of 1986, as amended, which are required for the interest
component of loan payments payable under the related Loan Agreements to be excluded from gross
income for federal income tax purposes.
1.5. Deem final and authorize the distribution of a preliminary official statement for each
series of Obligations, authorize the preparation and distribution of a final official statement or other
disclosure document for each series of Obligations, and enter into agreements to provide continuing
disclosure for owners of each series of Obligations.
1.6. Engage the services of escrow agents or trustees and any other professionals whose
services are desirable for the financing.
1.7. Determine the final principal amount of each Loan Agreement, the interest rate or rates
which each series of loan payments shall bear, the County's prepayment rights and other terms of
each Loan Agreement and each series of Obligations;
1.8. Solicit competitive bids for the purchase of each series of the Obligations and award
their sale to the bidder offering the most favorable terms to the County, or select one or more
underwriters, negotiate the terms of the sale of each series of Obligations, and sell that series to those
underwriters.
1.9. Execute and deliver any other certificates or documents and take any other actions
which the County Official determines are desirable to finance the Project with the Loan Agreements
and the Obligations in accordance with this Resolution.
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 County Official may pledge the County's full faith and credit and taxing power
within the limitations of Section 11 and 11 b 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:
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.
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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. Repeal of Prior Resolution.
The Board of County Commissioners previously adopted Resolution No. 2003-011 on January
29, 2003, which authorized the financing of various capital construction and improvements projects in
an amount not to exceed $30,250,000. The Board wishes to increase the financing to include the
sheriff's radio system project. The Board authorizes the financing of this additional project under this
resolution and Resolution No. 2003-011 is hereby repealed.
` -Ak,
The foregoing Resolution adopted thisLa day of February, 2003.
BOARD OF COUNTY COMMISSIONERS OF
DESCH TE COUNTY, OREGON
D NNIS LUKE, CHAIR
TOM DEWOLF, COMWS�IONER
MICHAEL M. DALY, CQMMISSIONER
ATTEST:
r1,1; .t.�. 2'
Recording Secretary
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