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Home My WebLink AboutRes 033 - Jail Projects BondingDeschutes County Board of Commissi ners 1300 NW Wall St., Suite 200, Bend, OR 97701 1960 (541) 388-6570 - Fax (541) 385-3202 -www.deschut s.or AGENDA REQUEST & STAFF REPORT For Board Business Meeting of April 24, 2013 Please see directions for completing this document on the next page. DATE: April 15, 2013 FROM: Marty Wynne Finance Phone # (541) 388-6559 TITLE OF AGENDA ITEM: Consideration and signature of Resolution #2013-033, authorizing Full Faith & Credit Obligati1·ns for Jail Projects in an amount not to exceed $8,700,000. PUBLIC HEARING ON THIS DATE? NO I BACKGROUND AND POLICY IMPLICATIONS: Included in this bond issue are the following Jail projects: (l) a new two-story medium/maximum security inmate housing unit containing six housing pods of 12 cells, (2) converting an existing ~orm area into a medical and mental health segregation unit, (3) building an outdoor recreation area 0ffthe maximum security housing unit in the existing jail, and (4) an upgrade of the security control sy;;tem. i FISCAL IMPLICATIONS: i Bond debt service will be paid by the General Fund & the Sheriff s Office. The total bond issue lis estimated not to exceed $8,700,000, with total annual debt service estimated to be approximatelr $500,000. • RECOMMENDATION & ACTION REQUESTED: Approval and signature of Resolution #2013-033. ATTENDANCE: Marty Wynne DISTRIBUTION OF DOCUMENTS: Marty Wynne, Finance Department 388-6559 REVIEWED LEGAL COUNSEL For Recording Stamp Only . I BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGOt A Resolution Authorizing Full Faith and Credit Obligations * for Jail Projects in an amount not to exceed $8,700,000 * RESOLUTION NO. 2013-033, WHEREAS, the County is authorized by Oregon Revised Statutes ("ORS") Sectidn 271.390 to enter into loan agreements to finance or refinance real or personal property and to authorize certificates of participation in the right to receive the payments due from the County under those tan agreements; and, . WHEREAS, the County is authorized by ORS 287 A.I 05 to make these loan agree ents "limited tax bonded indebtedness" which the County is unconditionally obligated to pay; and, WHEREAS, the Board has authorized a jail expansion project, including a new, I medium/maximum security inmate housing unit, improvements and renovations to the existing ja I facility and related site work (collectively, the "Projects"); and • I WHEREAS, the Board hereby determines that the Projects are needed, and that it is desirable to finance the Projects in an amount not to exceed $8,700,000 pursuant to ORS 271.390 land 287A.I05;and I WHEREAS, the County may incur certain capital expenditures (the "Expenditures") with respect to the Projects from available moneys of the County prior to the issuance of the loan! agreements; and I I WHEREAS, the Board hereby determines that available moneys advanced to pay ~e Expenditures prior to the issuance of the loan agreements are available only for a temporary period and it is necessary to reimburse the County for the Expenditures from the proceeds of the loan agreements; and . i 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 Fi~ance Director's designee (the "County Official") is hereby authorized on behalf of the County and without further action by the Board, to: I 1.1 Negotiate, execute and deliver one or more loan agreements, credit facilities or other financing documents (the "Loan Agreements") in an aggregate principal amount not to exceed $8,700,000 to finance the Projects and to pay estimated costs of the financing. Subject to the limitations of this Resolution the Loan Agreements may be in such form and contain such terms as the County Official may approve. PAGE 1 OF 3 -RESOLUTION NO. 2013-033 (04/24/13) 1.2 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 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. 1.3 Determine whether the interest component of loan payments payable under a; Loan Agreement will bear interest that is excludable from gross income under the Internal Revenue Code of 1986, as amended, or is includable in gross income under the Internal Revenue Code of 1986, as amended (the "Code"). If all or a portion of the interest component is excludable from gross income under the Code, the County Official may enter into covenants to maintain the excludability of the interest component of loan payments payable under the related Loan Agreement from gross income. 1.4 Designate the Loan Agreements and Obligations as "qualified tax-exempt obligations" under Section 265(b) of the Code, if applicable. 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, paying 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 Undertake to provide continuing disclosure for each series of Obligations in accorpance with Rule 15c2-12 of the United States Securities and Exchange Commission. 2.0 Apply for and purchase ratings, municipal bond insurance or obtain other fOI111s of credit enhancement for each series of Obligations, enter into agreements wifu the providers of credit enhancement, and execute and deliver related documents. 2.1 Execute and deliver any other certificates or documents and take any other actions which the County Official determines are desirable to finance the Projects with the Loan Agreements and the Obligations in accordance with this Resolution. PAGE 2 OF 3 -RESOLUTION NO. 2013-033 (04/24/13) I Section 2. Security. The Loan Agreements shall constitute "limited tax bonded indebtedness" as defined in ORS 287 A.l 05 and the obligation of the County to make loan payments under th~ Loan Agreements is unconditional. The County Official may pledge the County's full faith and creqit 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. Appointment of Bond Counsel and Financial Advisor. The law firm of Hawkins Delafield & Wood 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 Obligations. Section 4. Reimbursement. The County hereby declares its official intent pursuant to Section 1.150-2 of the Income Tax Regulations to reimburse itself from the proceeds of the Loan Agreements for any Expenditures that it makes on the Projects prior to issuing such Loan Agreements. Section 5. Effective Date. This resolution shall take effect immediately upon its adoption. DATED this day of April, 2013. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ALAN UNGER, Chair ATTEST: TAMMY BANEY, Vice Chair Recording Secretary ANTHONY DEBONE, Commissioner Record of Adoption Vote Commissioner Yes No Anthony DeBone Alan Unger Tammy Baney Abstained Excused PAGE 3 OF 3 -RESOLUTION NO. 2013-033 (04124/13)