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HomeMy WebLinkAbout2010-11 DEQ Loan Refinance . . RESOLUTION NO. ~olO - 1\ A RESOLUTION OF THE CITY OF ASHLAND, JACKSON COUNTY, OREGON AUTHORIZING THE REFINANCING OF AN OUTSTANDING LOAN AND RELATED MATTERS. WHEREAS, the City of Ashland, Jackson County, Oregon (the "City") entered into Loan Agreement No. R11750 (the "DEQ Loan") with the State of Oregon Department of Environmental Quality to finance upgrades to the City's wastewater treatment plant (the "DEQ Projects"); and WHEREAS, the DEQ Loan is secured by revenues of the City's wastewater system, a portion of the Food and Beverage Tax (also known as the Prepared Food & Beverage Tax or Meals T~x) and a reserve account; and WHEREAS, current interest rates are such that the City may be able to lower debt service costs by refunding the DEQ Loan with a borrowing that is secured by the City's full faith and credit; and WHEREAS, refunding the DEQ Loan will also allow the City to release amounts in the reserve account; and WHEREAS, the City Council is authorized by Oregon Revised Statutes Section 271.390 to enter into financing agreements to refinance real or personal property that the City Council determines is needed and to authorize certificates of participation in the right to receive the payments due from the City under those financing agreements; and . WHEREAS, the City hereby determines that it is desirable to refinance the DEQ Loan that financed the DEQ Projects; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ashland, Oregon as follows: SECTION 1. Determination of Need. The City Council hereby determines that the DEQ Projects are needed. SECTION 2. Authorization. The City is hereby authorized to refinance the DEQ Loan and the DEQ Projects pursuant to ORS 271.390 and ORS 287 A.360. SECTION 3. Delegation. The City Administrator, the Finance Director, or the person designated by the City Administrator to act as Finance Director underthis resolution (each a "City Official") is hereby authorized, on behalf of the City and without further action by the Council, to: Page 1 of 3 1. Negotiate, execute and deliver one or more financing agreements (the "Financing Agreements") in an aggregate principal amount that provides net proceeds sufficient to refinance all or any portion of the DEQ Loan and to pay the estimated costs of the refinancing. The City Official may pledge the City's full faith and credit and taxing power within the limitations of Sections 11 and 11 bof Article XI of the Oregon Constitution to secure the Financing Agreements, and may agree to make the payments due under the Financing Agreements from any or all of the City's legally available funds. The City Official may also commit to pay the Financing Agreements from the revenues of the City's Food and Beverage Tax and pledge those revenues to secure the Financing Agreements. Subject to the limitations of this resolution, the Financing Agreements may be in such form and contain such terms as the City Official may approve. 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 City under the Financing 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 City Official may approve. 3. Determine whether the interest payable on each Financing Agreement will be includable in gross income or excludable from gross income .under the Internal Revenue Code of 1986, as amended (the "Code") and covenant for the benefit of the . owners of tax-exempt Obligations to comply with all provisions of the Code that are . required for the interest component of loan payments payable under the related Financing Agreements to be excluded from gross income for federal income tax purposes. 4. Designate the Financing Agreements and Obligations as "qualified tax-exempt obligations" under Section 265(b} of the Code, if applicable. 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. 6. Apply for and purchase ratings, municipal bond insurance, or other forms of credit enhancements for the Financing Agreements and Obligations, and enter into related agreements, as necessary. 7. Enter into additional covenants for the benefit of the purchasers of the Financing Agreements and Obligations which the City Official determines are desirable to sell the Financing Agreements and Obligations on favorable terms. 8. Engage the services of paying agents and any other professionals whose services are desirable for the financings. Page 2 of 3 9. Take actions to refund all or any portion of the DEQ Loan. 10. Determine the final principal amount of each Financing Agreement, the interest rate or rates which each Financing Agreement shall bear, the City's prepayment rights and other terms of each Financing Agreement and each series of Obligations, subject to the limitations of this resolution. 11. Solicit competitive bids for the purchase of any series of the Obligations and award their sale to the bidder offering the most favorable terms to the City, select one or more underwriters, negotiate the terms of the sale of any series of Obligations, and sell that series to those underwriters, or place the Financing Agreements with one or more lenders. ' 12. Execute and deliver any other certificates or documents and take any other actions which the City Official determines are desirable to refund the DEQ Loan or to carry out this resolution. SECTION 4. Effective Date. This resolution was duly PASSED and ADOPTED this 20th, d of April, 2010, and takes effect upon signing by the Mayor. arbara Christensen, City Recorder SIGNED and APPROVED this 20th day of April, 2010. . Page 3 of 3