HomeMy WebLinkAboutRes 145 - Auth Financing - Beaver LID ProjDeschutes County Board of Commissioners
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AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of December 10, 2008
Please see directions for completing this document on the next page.
DATE: December 3, 2008
FROM: Marty Wynne Finance Phone # (541) 388-6559
TITLE OF AGENDA ITEM:
Consideration and signature of Resolution #2008-145, authorizing the Financing of the Beaver Loca
Improvement District (LID) Project.
PUBLIC HEARING ON THIS DATE? NO
BACKGROUND AND POLICY IMPLICATIONS:
Consideration of Resolution #2008-145. Funding is to pay for expenditures related to the Beaver LIl)
project, not to exceed $600,000.
FISCAL IMPLICATIONS:
Debt Service will be paid from assessments received from affected property owners.
RECOMMENDATION & ACTION REQUESTED:
Approval and signature of Resolution #2008-145.
ATTENDANCE: Marty Wynne
DISTRIBUTION OF DOCUMENTS:
Marty Wynne, Finance Department 388-6559
REVIEWED
LEGAL COUNSEL
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
exceed $600,000.
*
*
RESOLUTION NO. 2008-145
WHEREAS, the County is authorized by Oregon Revised Statutes ("ORS") 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 287A.105 to make these agreements
"limited tax bonded indebtedness" which the County is unconditionally obligated to pay; and,
WHEREAS, the County is undertaking improvements to the Beaver Special Road
District LID (the "Beaver LID Project"); and,
WHEREAS, the Board has determined that the Beaver LID Project is needed, and that it
is desirable to obtain financing for the Beaver LID Project in the aggregate principal amount of not
more than $600,000 pursuant to ORS 271.390 and ORS 287A.105.
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 designee of either official (the
"County Official") is hereby authorized on behalf of the County and without further action by the
Board, to:
1.1. Finance the Beaver LID Project, plus any amounts required to pay costs of the
financing, in an aggregate principal amount of not more than Six Hundred Thousand Dollars
($600,000).
1.2. Negotiate, execute and deliver a loan agreement, which may be secured by a note
(the "Obligation") for the financing of the Beaver LID Project which obligates the County to repay the
principal amount of the Obligation with interest. The Obligation may also provide for the financing o
other LID projects.
PAGE 1 OF 3 —RESOLUTION NO. 2008-145 (12/10/08)
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.
1.5. Take any other action and sign any other documents, certificates, and undertaking,,
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 287A.105 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 11b 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 Internal Revenue Code
of 1986, as amended (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 caus
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 K&L Gates LLP is appointed as bond counsel to the County, and Wester!'
Financial Group LLC is appointed as financial advisor to the County, with respect to the Obligation.
PAGE 2 OF 3 - RESOLUTION NO. 2008-145 (12110108)
The foregoing Resolution adopted this 10th day of December , 2008.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
DENNIS R. LUKE, Chair
TAMMY BANEY, Vice Chair
MICHAEL M. DALY, Commissioner
Record of Adoption Vote
Commissioner Yes No Abstained Excused
Dennis R. Luke
Tammy Baney
Michael M. Daly
ATTEST:
Recording Secretary
PAGE 3 OF 3 — RESOLUTION NO. 2008-145 (12/10/08)