HomeMy WebLinkAbout2008-10 Clean Renewable Energy Bonds
RESOLUTIONNO. ~~-\C)
A RESOLUTION OF CITY OF ASHLAND, JACKSON COUNTY,
OREGON, AUTHORIZING CLEAN RENEWABLE ENERGY BONDS TO
FINANCE PHOTOVOL TAlC EQUIPMENT.
BE IT RESOLVED by the City Council of the City of Ashland that:
Section 1. Findings.
The City Council finds as follows:
(1) The City of Ashland (the "City") is authorized by Oregon Revised Statutes Section
271.390 to enter into financing agreements to finance real or personal property which the
City Council determines is needed.
(2) The City Council hereby determines that photovoltaic equipment included in this project
is needed for the Ashland electric system. The City is under a State Renewable Portfolio
Standards (RPS) requirement to meet 5% of its load with renewable sources by 2020.
This project will be the first step in meeting that requirement. A Federal RPS passage is
expected in coming years which could be more stringent than the current State
requirement and this project should help comply with the Federal standard.
(3) The City has received authorization from the Secretary of the Treasury of the United
States to issue $500,000 of Clean Renewable Energy Bonds ("CREBs").
(4) CREBs provide a tax credit to the investors that purchase them, reducing the interest that
the City is required to pay on its CREBs.
(5) Banc of America Leasing & Capital, LLC ("BALCAP") has submitted a proposal to the
City to purchase the City's CREBs for an interest rate of 1.25% per annum, subject to
adjustment for changes in market conditions.
(6) It will benefit the City to use its CREB authorization in connection with a $304,000
financing of photo voltaic equipment pursuant to ORS 271.390, and to obtain that
financing from BALCAP. The project cost is estimated at $455,000. Other funding is
available leaving $294,000 of the project and $10,000 of issuance costs needed from the
CREBs.
Section 2. CREB Borrowing Authorized.
The City is hereby authorized to negotiate, execute and deliver one or more financing
agreements in an aggregate principal amount of not more than $304,000 and to enter into one or
more notes evidencing the amounts due under those financing agreements. These financing
agreements and notes (collectively, the "Borrowing Documents") shall be issued pursuant to
ORS 271.390, and shall be issued as CREBs.
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Section 3. Security.
The Borrowing Documents shall be payable solely from the City's revenues of the City's
Electric System and amounts in the City's Electric Fund that the City Official pledges pursuant to
Section 4(3) of this Resolution.
Section 4. Delegation.
The Finance Director, the City Administrator, or the person designated by the Finance
Director or the City Administrator to act on behalf of the City under this Resolution (each of
whom is referred to in this resolution as a "City Official") may, on behalf of the City:
(1) Negotiate the final interest rate and other terms of, and execute and deliver the Borrowing
Documents to BALCAP in accordance with BALCAP's proposal, but with any changes
that a City Official may approve.
(2) Participate in the preparation of, authorize the distribution of, and deem final any
disclosure documents that are required for the Borrowing Documents.
(3) Pledge all or any portion ofthe revenues of the City's electric system and amounts in the
City's Electric Fund to pay amounts due under the Borrowing Documents.
(4) Enter covenants for the benefit ofBALCAP and its successors and assigns regarding the
imposition of rates for services from the City's electric system, and the priority for
application of electric system revenues.
(5) Determine whether interest paid under the Borrowing Documents will be excludable from
gross income or includable in gross income under the Internal Revenue Code of 1986, as
amended (the "Code"). The City consents to the Borrowing Documents bearing interest
that is includable in gross income if the City is advised by bond counsel that such
treatment is required by the Code or a City Official determines that such treatment gives
the City desirable flexibility.
(6) Designate the Borrowing Documents as "qualified tax-exempt obligations" under Section
265(b) of the Code.
(7) Execute and deliver any other certificates or documents and take any other actions which
a City Official determines are desirable to carry out this resolution.
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Section 5. Effective Date.
This Resolution duly PASSED and ADOPTED this 15th day of April, 2008 and shall take effect
upon signing by the Mayor.
d. ~
(~~
Barbara Christensen, City Recorder
SIGNED and APPROVED this IS- day Of.# J
,2008.
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Reviewed as to form:
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