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HomeMy WebLinkAboutResolution 05-41 06/20/2005 . . . RESOLUTION NO. 05-41 A RESOLUTION OF THE CITY OF SPRINGFIELD, LANE COUNTY, OREGON AUTHORIZING THE SALE OF THE CITY'S GENERAL OBLIGATION BONDS TO REFUND THE CITY'S GENERAL OBLIGATION BONDS, 1996 SERIES A, TO FINANCE A PROJECT, AND TO PAY COSTS OF ISSUING THE BONDS. WHEREAS, The voters of the City of Springfield (the "City") authorized the City to issue $28,650,000 of general obligation bonds at the general election held on November 2,2004, to finance a police, courts and municipal jail facility and related improvements, WHEREAS, During its August 16, 2004 Regular City Council meeting, the City Council unanimously passed a motion that the issuance ofthe general obligation bonds for the construction of the jail component of the police, courts and city prosecutor facility shall not occur until the City Council is satisfied that there is proper funding for staffing and operations of the jail. However, the general obligation bonds can be issued for preliminary expenditures, including design, of the entire facility and for construction of police, courts and city prosecutor facilities, WHEREAS, It is now desirable to issue a portion ofthe bonds that were authorized at the election to finance the design and other preliminary expenditures for the police, courts and municipal jail facility, and costs of providing the police and courts portion of that facility and related improvements (the "Project"), WHEREAS, The City previously issued its General Obligation Bonds (Capital Projects and Improvements), 1996 Series A dated March 1, 1996 (the "Refundable Bonds") for capital construction and capital improvements, which were authorized by an approving vote of the electors of the City, WHEREAS, The City is authorized pursuant to the Oregon Constitution and Oregon Revised Statutes Section 288.592 to issue general obligation bonds to refund outstanding general obligation bonds, WHEREAS, The City has determined that it is in the best interest of the taxpayers of the City to refund all or any portion of the Refundable Bonds, WHEREAS, The City adopts this resolution to provide the terms under which general obligation bonds may be issued to finance the Project, to refund of all or any portion of the Refundable Bonds, and to pay the costs of issuing the general obligation bonds, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Springfield, Oregon, as follows: ' Section 1. Bonds authorized. The City Council of the City hereby authorizes the issuance, sale and delivery of one or more series of the Refunding General Obligation Bonds or General Obligation Bonds (collectively, the "Bonds") to finance the Project, to refund all or any portion Page 1 - Resolution . . . of the Refundable Bonds and to pay costs of issuing the Bonds. The principal amount of the Bonds to finance the Project shall not exceed $4,000,000 plus the costs related to the authorization, sale, issuance and delivery of such portion of the Bonds and the principal amount of the Bonds to refund all or any portion of the Refundable Bonds shall not exceed a principal amount sufficient to refund all or any portion of the Refundable Bonds and to pay the costs related to the authorization, sale, issuance and delivery of such portion of the Bonds Section 2. Delegation. The Finance Director, the Assistant City Manager, or the person designated by the Finance Director to act on behalf ofthe City under this Resolution (the "City Official") is hereby authorized, on behalf of the City and without further action by the City Council, to: (1) Participate in the preparation of, authorize the distribution of, and deem final any official statement or other disclosure documents relating to each series of the Bonds. (2) Establish the final principal amounts, maturity schedules, interest rates, sale prices and discount, prepayment terms, payment terms and dates, and other terms of each series of Bonds. (3) Execute and deliver a bond declaration for each series of Bonds, specifying the terms under which each series of Bonds are issued, and making covenants for the benefit of Bondowners, including covenants to protect the tax-exempt status of the Bonds. (4) Solicit competitive proposals for the purchase of any series of Bonds and award the sale of that series to the proposer offering the most favorable terms to the City, or select one or more underwriters, negotiate the terms of the sale of any series of Bonds, and sell that series to those underwriters. (5) Undertake to provide continuing disclosure for each series of Bonds in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission. (6) Apply for ratings for each series of Bonds, determine whether to purchase municipal bond insurance or obtain other forms of credit enhancements for each series of Bonds, enter into agreements with the providers of credit enhancement, and execute and deliver related documents. (7) Appoint an expert advisor to evaluate the negotiated terms and pricing of the Bonds, if required or determined by the City Official to be in the best interest of the City. (8) Select the maturities of the Refundable Bonds to be refunded and cause notice of call and redemption to be given as required by law, (9) Appoint an escrow agent for the Refundable Bonds and enter into an escrow deposit agreement, if necessary. Page 2 - Resolution #05-41 . . . (10) Subscribe for and obtain eligible securities to be deposited in an escrow fund for the Refundable Bonds; to the extent that any such action has been taken prior to the date of this Resolution, such action is hereby ratified. (11) Appoint a registrar and paying agent for each series of Bonds. (12) Appoint a certified public accounting firm to act as verification agent to produce a report demonstrating the ability of the escrow account to meet all future debt service and related costs relative to the Refundable Bonds. (13) Execute and deliver each series of Bonds to their purchaser. (14) Execute and deliver any agreements or certificates and take any other action in connection with each series of Bonds which the City Official finds is desirable to permit the sale and issuance of that series of Bonds in accordance with this Resolution. Section 3. Security for Bonds. The Bonds shall be general obligations of the City. The City hereby pledges its full faith and credit to pay the Bonds, and the City covenants for the benefit of the Bondowners that the City shall levy annually, as provided by law, in addition to its other ad valorem property taxes and outside the limitations of Sections 11 and 11 b of Article IX of the Oregon Constitution, a direct ad valorem tax upon all of the taxable property within the City in sufficient amount, after considering expected discounts and delinquencies in the payment of those ad valorem taxes, to pay the Bonds promptly as they mature. Section 4. Tax-Exempt Status. The City covenants to use the proceeds of the Bonds and to otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), so that interest paid on the Bonds will not be includable in gross income of the Bondowners. The City Official may enter into additional covenants on behalf of the City to protect the tax-exempt status of the Bonds. Section 5. Form and Execution. Each Bond shall be in substantially the form attached hereto as Exhibit A, with such changes as may be approved by the City Official. The Bonds shall be executed on behalf of the City with the facsimile or manual signatures of Mayor and City Recorder. Page 3 - Resolution 1105-41 . . . 40 Section 6. Effective Date. This resolution shall take effect on its date of adoption. Adopted by the City Council of the City of Springfield at a regular meeting held on June 20 , 2005. Ayes: 5 Nays: 0 Attest: ~~~ City of Springfield, Lane County, Oregon City Recorder Page 4 - Resolution 1105-41