Resolution No. 10-26 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 10- c�)( e
A RESOLUTION OF THE CITY OF TIGARD, WASHINGTON COUNTY, OREGON APPROVING
A BORROWING TO FINANCE ROAD PROJECTS
WHEREAS, the City Council of the City of Tigard, Washington County, Oregon (die "City' is authorized by
Oregon Revised Statutes Section 271.390 to enter into financing agreements to finance or refinance real or
personal property which the City Council determines is needed;and
WHEREAS, the City has identified a need for road projects on Burnham and Ash Streets and the intersection
of Pacific Highway, Greenburg Street,and Main Street (collectively, die"Projects';and
WHEREAS, the City Council hereby determines that the Projects are needed, and that it is desirable to finance
the Projects pursuant to ORS 271.390;and
WHEREAS, the City has issued a request for proposals to commercial banks to provide financing for the
Projects;and
WHEREAS, the closing date for the financing is expected to be on, or before,June 20,2010;and
WHEREAS, the City expects to repay the financing from gas tax revenues;
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
Section 1: Financing Agreement Authorized.
The City is hereby audaonized to enter into a financing agreement in an aggregate principal
amount of not more than $7,500,000 (the "Financing Agreement") pursuant to ORS
271.390. Loan proceeds shall be used to finance d-ie Projects and to pay costs associated
Nvidh the Financing Agreement. The Financial and Information Services Director, City
Manager or the Assistant City Manager (each of whom is referred to herein as a "City
Official") are hereby authorized, on behalf of the City and without further action by the City
Council, to:
(1) Determine the final principal amount,interest rates, payment dates, prepayment
rights and all other terms of the financing;
(2) Negotiate, execute and deliver a note to evidence amounts due under the Financing
Agreement;
(3) Select a commercial bank-with which to negotiate, execute and deliver the Financing
Agreement. Subject to the limitations of dais resolution, the Financing Agreement
inay be in such form and contain such terms as the City Official may approve;
RESOLUTION NO. 10
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(4) Covenant for the benefit of the lender to comply with all provisions of the Internal
Revenue Code of 1986, as amended (the "Code") which are required for the interest
paid under the Financing Agreement to be excluded from gross income for federal
income tax purposes;
(5) Designate the borrowing as a "qualified tax-exempt obligation" pursuant to Section
265(b)(3) of the Code,if applicable;
(6) Issue the Financing Agreement as a taxable "Build America Bond" or other type of
obligation that was authorized by the American Recovery and Reinvestment Tax Act
of 2009 and is eligible for federal interest subsidies or tax credits;
(7) Appoint and enter into agreements with a financial advisor and other service
providers for the Financing Agreement; and
(8) Execute and deliver any other certificates or documents and take any other actions
which the City Official determines are desirable to carry out this resolution.
Section 2: Security
The Financing Agreement shall constitute an unconditional obligation of the City,which is
payable from all legally available funds of the City, The City Official may pledge the City's
fiull faith and credit and taxing power tvitliin the limitations of Sections 11 and 1 l of Article
XI of the Oregon Constitution, and any and all of the City's legally available funds, to make
the payments due under the Financing Agreement. The City may apply gas tax revenues to
pay the amounts due under the Financing Agreement.
Section 3: Effective Date. This resolution is effective immediately upon its passage.
PASSED: This 8th day of June 2010.
Ma or- City'of Tigard
ATTEST:
City Recorder-City of Tigard
1ACityNvidc\Counci1 Packets\Packet'10\1106(18\Rcsoluuon-Finance Road Projects.doc
RESOLUTION NO. 10 -�
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