RESOLUTION NO. 2011-11
A RESOLUTION OF THE CITY OF HOOD RIVER, HOOD RIVER COUNTY, OREGON, AUTHORIZING A BORROWING FOR THE CITY’S WATER SYSTEM IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,099,000.
WHEREAS, the City of Hood River (the “City”) is authorized by ORS 287A.180 to borrow to provide interim financing for capital projects to be undertaken by the City Council;
WHEREAS, such borrowings must mature not later than five years after they are issued;
WHEREAS, the City seeks to finance improvements to the City’s water system including engineering, construction and administrative costs of the City’s Phase II water system improvement project (the “Project”);
WHEREAS, the City desires to borrow up to $13,099,000 to provide interim financing for the Project;
WHEREAS, the City previously adopted Resolution No. 2011 06 to authorize the interim financing for the Project which Resolution did not allow for a public offering of the interim financing, and therefore the City adopts this Resolution to authorize the interim financing and include a public offering option in addition to a bank placement financing, and to repeal Resolution No. 2011 06.
NOW, THEREFORE, the City Council of the City of Hood River, Hood River County, Oregon, resolves as follows:
Section 1. Authorization. The City hereby authorizes a borrowing under ORS 287A.180 (the “Interim Financing”) in a principal amount of not more than $13,099,000. The Interim Financing may be in the form of a loan agreement or line of credit or notes. Proceeds of the Interim Financing shall be used to pay costs of the Project and costs related to the Interim Financing.
Section 2. Security. The Interim Financing may be payable from and secured by the City’s available general funds, and a pledge of the City’s full faith and credit, proceeds of any long term financing for the Project, the unexpended proceeds of the Interim Financing, and the net revenues of the City’s water system.
Section 3. Delegation. The Mayor, City Manager, City Finance Director, or a person designated by the Mayor, City Manager or City Finance Director to act on behalf of the City pursuant to this resolution (each of whom is referred to in this resolution as the “City Official”) may, on behalf of the City and without further action by the City Council:
(1) Issue the Interim Financing from time to time in one more series;
(2) Select one or more underwriters or commercial banks and negotiate the sale of each series of the Interim Financing with those underwriters or commercial banks;
(3) Establish the final principal amount, maturity schedule, interest rates, sale price, redemption provisions, covenants, administrative provisions and other terms for each series of the Interim Financing, subject to the limitations of this Resolution;
(4) Commit the City’s legally available general funds and pledge the City’s full faith and credit, proceeds of any long-term financing for the Project, the unexpended proceeds of the Interim Financing, and/or the net revenues of the City’s water system;
(5) Execute and deliver one or more loan agreements, credit facilities, declarations, or other documents which include the amounts pledged pursuant to Section 3(4), and describe the terms and administrative provisions relating to each series of the Interim Financing;
(6) Execute a note representing the City’s obligations under each series of the Interim Financing;
(7) Enter into covenants to maintain the excludability of interest on each series of the Interim Financing from gross income under the Internal Revenue Code of 1986, as amended (the “Code”), and designate each series as a “qualified tax-exempt obligation” under Section 265(b) of the Code;
(8) Participate in the preparation of, authorize the distribution of, and deem final the preliminary and final official statements and any other disclosure documents for each series of the Interim Financing;
(9) Undertake to provide continuing disclosure for each series of the Interim Financing in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission;
(10) Appoint and enter into agreements with escrow agents, paying agents, verification agents and other professionals and service providers for the Interim Financing;
(11) Apply for and purchase municipal bond insurance, reserve sureties or other forms of credit enhancements for each series of the Interim Financing, and enter into related agreements;
(12) Execute and deliver the Interim Financing documents and take any other actions which a City Official determines are reasonably required to carry out this Resolution.
Section 4. Intent to Reimburse. The City reasonably expects to issue the Interim Financing and to use the proceeds of the Interim Financing to reimburse the City for expenditures it makes from its available funds for the Project. The City expects that the aggregate principal amount of the Interim Financing will not exceed $13,099,000.
Section 5. Resolution No. 2011 06 Repealed. This resolution supersedes Resolution No. 2011 06, and Resolution No. 2011 06 is hereby repealed.
Section 6. Effective Date. This resolution is effective upon its adoption.
ADOPTED by the City Council of the City of Hood River, Hood River County, Oregon this 28th day of February, 2011.
CITY OF HOOD RIVER
HOOD RIVER COUNTY, OREGON
Arthur Babitz, Mayor
Jennifer Gray, City Recorder