HomeMy WebLinkAbout1994-46 Sale of Water Rev. BondREBOLUTION NO. 94-/7/-~,
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLaLND
AUTHORIZING PRELIMINARY MARKETING ACTIVITIES RELATING TO THE
SALE OF WATER REVENUE BONDS UNDER THE UNIFORM REVENUE BOND
ACT.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. Findings
1.1 Prior Authorization. The City has previously enacted
Resolution No. 94-15, authorizing the issuance of not more than two
million three hundred thousand dollars in aggregate principal
amount of water revenue bonds pursuant to Oregon's Uniform Revenue
Bond Act (ORS 288.805 to 288.945).
1.2 Sale Authorized. Notice that the City authorized issuance of
revenue bonds was published as provided in the Uniform Revenue Bond
Act; more than 60 days have passed since publication of the notice
and no petitions have been received requesting that the question of
issuing the bonds be placed on the ballot at the next legally
available election date. The City is now authorized to issue the
bonds described in Resolution No. 94-15 (the "Bonds").
1.3 Comments from rating agencies and insurers are desirable.
City staff has caused a bond resolution to be drafted which
describes the terms under which the City would issue the Bonds and
has caused that draft to be circulated to bond rating agencies and
bond insurers. The rating agencies and insurers are reviewing the
draft bond resolution and may request changes which would improve
the rating for the Bonds, make bond insurance available for the
Bonds, or decrease the price for bond insurance. An improved
rating or the use of bond insurance could reduce the interest rates
which the City would be required to pay on the Bonds. A reduction
in Bond interest rates would reduce the cost of providing..water
service to the citizens of Ashland. In order to avoid delaying the
proposed sale of the Bonds, but to allow the rating agencies and
insurers time to make COmmentS, and to have any Comments
incorporated into the bond resolution, it is desirable to authorize
City staff to engage in preliminary marketing activities relating
to the Bonds.
SECTION 2. Preliminary Marketing Activities Authorized
2.1 The City Administrator or the Director of Finance may, on
behalf of the City and without further action by the Council:
2.1.1 Participate in the preparation of, authorize the
distribution of, and deem final a preliminary official
statement for the Bonds;
2.1.2 Appoint a Bond trustee, registrar and paying agentl
2.1.3 Negotiate the terms under which bond insurance Or a
reserve credit facility for the Bonds would be offered to the
City;
2.1.4 Establish the final principal' amounts, redemption terms,
payment dates and other terms of the Bonds which will be
offered for sale;
2.1.5 Finalize the draft bond resolution, incorporating any
comments of the bond rating agencies and bond insurers;
2.1.6 Publish notices of sale for the Bonds, describing the
terms under which the Bonds will be offered for sale by the
City;
2.1.7 Tender the final bond resolution to the City Council for
action; and,
2.1.8 take any other action which is reasonably required to
carry out the purposes of this resolution.
This resolution was read by title only in accordance with Ashland
Municipal Code S2.04.090 duly PASSED and ADOPTED this /~7~ day of
4/"~_ , 1994.
SIGNED and APPROVED this ~F~ 7~ day of 1994.
Catherine M.
Golden, Mayor
Paul Nolte, City Attorney
(l:p~camc4'l~:sobasd.~Soc)