RESOLUTION NO. 2002-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND, OREGON, AUTHORIZING THE FINANCING OF CAPITAL COSTS ASSOCIATED WITH THE ASHLAND FIBER NETWORK
The City Council finds as follows:
A. The City wishes to finance costs of expanding and improving the Ashland Fiber Network (the "Project").
B. The City is authorized by ORS 271.390 to enter into financing agreements in order to finance the cost of any real or personal property that the City determines is needed.
C. The Project is needed to provide services for the City and its citizens.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
Section 1. Loan Agreement Authorized. The City is authorized to enter into a loan agreement in an aggregate principal amount of not more than $2,520,000 (the "Loan Agreement"). Loan proceeds shall be used to finance the Project and related expenses and pay costs associated with the Loan Agreement. The Finance Director, the City Administrator or the designee of the Finance Director or the City Administrator (any one or which is described as the "City Official"), on behalf of the City and without further action by the City Council, may:
1.1. accept the proposal of Key Bank to fund the Loan Agreement, negotiate the terms of the Loan Agreement, and execute the Loan Agreement in an aggregate principal amount of not more than $2,520,000;
1.2. execute and deliver a note reflecting the City's obligation to make the payments due under the Loan Agreement:
1.3. provide that interest payable under the Loan Agreement will be includable in gross under the Internal Revenue Code of 1986, as amended (the "Code");
1.4. execute and deliver any other certificates or documents and take any other actions which the City Official determines are desirable to finance the Project with the Loan Agreement in accordance with this resolution.
Section 2. Security. The City Official may pledge the City's full faith and credit and taxing power within the limitations of Sections 11 and 11 b 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 Loan Agreements.
Section 4. Effective Date. This resolution takes effect on adoption by the City Council.
This resolution was read by title only in accordance with Ashland Municipal
Code §2.04.090 duly PASSED and ADOPTED this 18th day of June, 2002.
Barbara Christensen, City Recorder
SIGNED and APPROVED this 19th day of June,2002.
Alan W. DeBoer, Mayor
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