2007-376-Resolution No. 2007-037 Recorded 3/26/2007VIE
L GAL COUNSEL
DESCHUTES COUNTY OFFICIAL
NANCY BLANKENSHIP, COUNTY
COMMISSIONERS' JOURNAL
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2007-376
CLERKDS CJ 1001'36
0312612007 03:23:12 PM
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the Financing of a
Local Improvement Project in an amount not to * RESOLUTION NO. 2007-037
exceed $297,000.
WHEREAS, the County is authorized by Oregon Revised Statutes Section 271.390 to
enter into loan or financing 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 agreements
"limited tax bonded indebtedness" which the County is unconditionally obligated to pay; and,
WHEREAS, the County is undertaking improvements to a number of local
improvement districts ("LIDs"), including the Pumice Butte LID (the "Pumice Butte LID Project");
and,
WHEREAS, the Board has determined that the Pumice Butte LID Project is needed,
and that it is desirable to obtain financing for the Pumice Butte LID Project in the aggregate principal
amount of not more than $297,000 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, 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 the Pumice Butte LID Project, plus any amounts required to pay costs of
the financing, in an aggregate principal amount of not more than Two Hundred and Ninety -Seven
Thousand Dollars ($297,000).
1.2. Negotiate, execute and deliver a loan agreement, which may be secured by a note
(the "Obligation") for the financing of the Pumice Butte LID Project which obligates the County to
repay the principal amount of the Obligation with interest. The Obligation may also provide for the
financing of other LID projects.
PAGE 1 of 3 —RESOLUTION NO. 2007-037 (3/19/07)
1.3. Select a commercial bank, negotiate the terms of the Obligation, including the final
principal amount, the interest rate or rates which payments shall bear, the County's prepayment rights
and other terms of the Obligation.
1.4. Renew, extend or refund the Obligation.
1.6. Take any other action and sign any other documents, certificates, and undertakings
required in connection with the execution of the Obligation which the County Official finds will be
advantageous to the County.
Section 2. Security.
The Obligation shall constitute a limited tax bonded indebtedness as defined in
ORS 287.053 and the obligation of the County to make payments under the Obligation is
unconditional. The County Official may pledge the County's full faith and credit and taxing power
within the limitations of Section 11 and 1 Ib of Article XI of the Oregon Constitution, and any and all
of the County's legally available funds, including the proceeds of the Obligation, to make the
payments due under the Obligation.
Section 3. Maintenance of Tax -Exempt Status.
3.1. The County covenants to comply with all provisions of the Code which are required
for interest paid on the Obligation 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 Obligation to become an "arbitrage bond" 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
Obligation so that the Obligation is not a "private activity bond" 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 Obligation shall constitute contracts with the lender, and shall be enforceable
by it.
Section 4. Appointment of Bond Counsel and Financial Advisor.
The law firm of Kirkpatrick & Lockhart Preston Gates Ellis LLP, is appointed as bond counsel
to the County and Western Financial Group LLC, is appointed as financial advisor to the County with
respect to the Obligation.
PAGE 2 of 3 - RESOLUTION NO. 2007-037 (3/19/07)
The foregoing Resolution adopted this / e. day of March, 2007.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
Record of Adoption Vote
Commissioner Yes No Abstained Excused
Michael M. Daly
Dennis R. Luke
Tammy Baney J
ATTEST:
Recording Secretary
PAGE 3 OF 3 —RESOLUTION NO. 2007-037 (3/19/07)