Res 2003 - Water System Bonds COUNCIL BILL NO. 2879
RESOLUTION NO. 2003
A RESOLUTION AUTHORIZING THE ISSUANCE OF WATER SYSTEM
REVENUE REFUNDING BONDS AND A MASTER WATER SYSTEM BOND
DECLARATION.
THE CITY COUNCIL OF THE CITY OF WOODBURN, MARION COUNTY,
OREGON (the "City "), finds:
FINDINGS
(A) The City is authorized by ORS 287A.360 to issue revenue bonds to
refund outstanding revenue bonds; and
(B) The City previously obtained a loan from the Oregon Economic and
Community Development Department (now, the Oregon Business
Development Department) that was secured by the net revenues of the City's
water system (the "Refundable Obligation "); and
(C) The City may be able to achieve debt service savings or a
favorable reorganization of its permanent water system debt structure by
refunding all or any portion of the Refundable Obligation; and
(D) The City adopts this Resolution to authorize the issuance of its
Water Revenue Refunding Bonds to achieve debt service savings or to obtain a
favorable reorganization of debt, and to provide the terms under which future
parity obligations may be issued.
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
SECTION 1. BONDS AUTHORIZED
The City hereby authorizes the sale and delivery of its Water Revenue
Refunding Bonds (the "Refunding Bonds ") in accordance with this Resolution
and the Master Water System Revenue Bond Declaration authorized by Section
3 of this Resolution (the "Master Declaration ") to refinance the Refundable
Obligation. The aggregate principal amount of the Refunding Bonds shall not
exceed the amount that the City Official (defined below) determines is
necessary to accomplish the refunding and pay costs of the refunding.
SECTION 2. SECURITY
The Refunding Bonds and any obligations issued on a parity with the
Refunding Bonds shall be special obligations of the City that are payable solely
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Resolution No. 2003
from the revenues of the City's water system and related amounts that are
pledged as provided in the Master Declaration.
SECTION 3. DESIGNATION OF CITY OFFICIALS
The Board designates the City Administrator or the City Finance Director,
or the designee of the City Administrator or the City Finance Director
(collectively, the "City Official "), to act on behalf of the City and without further
action by the City Council as follows:
a. Provide that the Refunding Bonds may be issued in one or more
series;
b. Participate in the preparation of, authorize the distribution of and
deem final preliminary and final official statements or other
disclosure documents for each series of the Refunding Bonds;
c. Appoint and enter into agreements with a paying agent, registrar
and other service providers for each series of the Refunding Bonds;
d. Apply for and purchase bond insurance, reserve sureties or other
forms of credit enhancements for each series of the Refunding
Bonds, and enter into related agreements;
e. Apply for and obtain municipal bond ratings for each series of
Refunding Bonds;
f. Establish the final principal amount, maturity schedule, interest rates,
sale price, redemption provisions, administrative provisions and
other terms for each series of the Refunding Bonds, subject to the
limitations of this Resolution;
g. Negotiate the terms of, and execute, a bond purchase agreement
with D.A. Davidson & Company for each series of the Refunding
Bonds;
h. Enter into an agreement to provide continuing disclosure for each
series of the Refunding Bonds, as required under federal securities
laws;
Enter into covenants to maintain the excludability of interest on
each series of the Refunding Bonds from gross income under the
Internal Revenue Code of 1986, as amended (the "Code "), and, if
applicable, designate each series of the Refunding Bonds as
"qualified tax - exempt obligations" under Section 265(b) of the
Code;
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Resolution No. 2003
j. Execute and deliver a master declaration which pledges the
revenues of the City's water system, contains covenants regarding
the levels of water system fees and charges that the City may
impose, describes the terms of each series of the Refunding Bonds,
and the terms under which future obligations may be issued on
parity with the Refunding Bonds; and
k. Amend any outstanding loans or obligations secured by revenues
of the City's water system in order to subordinate those liens to the
Refunding Bonds; and
I. Determine how to apply the proceeds of the Refunding Bonds; and
m. Call, defease, and redeem the Refundable Obligation, appoint
escrow agents and verification agents, and take any other actions
and enter into related agreements to defease, call and redeem the
Refundable Obligation; and
n. Issue, sell and deliver each series of the Refunding Bonds, execute
and deliver any related certificates or documents, and take any
other actions which the City Official determines are reasonably
required to carry out this Resolution.
.�� ) io t(
Approved as to form. �� t1)fG
City Attorney Date
Approved: A\ \-, Ai&
Kathr Figley, , ayor * dip ,
Passed by the Council 1 D 24 ire
Submitted to the Mayor I o /757Zo r I
Approved by the Mayor ( (210 (20 11
Filed in the Of fr,- of the 'ec•r•er to (21 -(Zo/f
/ ,
ATTEST:
Christina S earer, ity Recorder
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Resolution No. 2003