Loan Resolution for indebtedness of $199,000 Vader Enchanted Valley Water Position 5
RUS BULLETIN 1780-27 APPROVED
OMB.No.0572-0121
LOAN RESOLUTION LEWIS COUNTY BOARD
(Public Bodies) „/ COUNTY COMMISSIONERS
A RESOLUTION OF THE Board of County Commissioners RESOLUTION 18-281
OF THE Lewis County
AUTHORIZING AND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A
PORTION OF THE COST OF ACQUIRING, CONSTRUCTING,ENLARGING,IMPROVING,AND/OR EXTENDING ITS
Public Body
FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE.
WHEREAS,it is necessary for the Lewis County
(Public Body)
(herein after called Association)to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of
One Hundred Ninety-Nine Thousand & 00/100
pursuant to the provisions of RCW 36.67.510 through 36.67.570 ;and
WHEREAS,the Association intends to obtain assistance from the United States Department of Agriculture,
(herein called the Government)acting under the provisions of the Consolidated Farm and Rural Development Act(7 U.S.C. 1921
et seq.)in the planning.financing,and supervision of such undertaking and the purchasing of bonds lawfully issued,in the event
that no other acceptable purchaser for such bonds is found by the Association:
NOW THEREFORE,in consideration of the premises the Association hereby resolves:
I. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such
items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government.
2. To refinance the unpaid balance,in whole or in part,of its bonds upon the request of the Government if at any time
it shall appear to the Government that the Association is able to refinance its bonds by obtaining a loan for such purposes
from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods
of time as required by section 333(c)of said Consolidated Farm and Rural Development Act(7 U.S.C. 1983(c)).
3. To provide for,execute,and comply with Form RD 400-4,"Assurance Agreement,"and Form RD 400-1,"Equal
Opportunity Agreement,"including an"Equal Opportunity Clause,"which clause is to be incorporated in,or attached
as a rider to,each construction contract and subcontract involving in excess of$10,000.
4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the Association.
Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal ly per-
missible source.
5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any
covenant or agreement contained herein or in the instruments incident to making or insuring the loan,the Government at
its option may(a)declare the entire principal amount then outstanding and accrued interest immediately due and
payable,(b)for the account of the Association(payable from the source of funds pledged to pay the bonds or any other
legally permissible source),incur and pay reasonable expenses for repair,maintenance,and operation of the facility
and such other reasonable expenses as may be necessary to cure the cause of default,and/or(c)take possession of the
facility,repair,maintain,and operate or rent it.Default under the provisions of this resolution or any instrument incident to
the making or insuring of the loan may be construed by the Government to constitute default under any other instrument
held by the Government and executed or assumed by the Association,and default under any such instrument may be
construed by the Government to constitute default hereunder.
6. Not to sell,transfer,lease,or otherwise encumber the facility or any portion thereof,or interest therein,or permit others
to do so,without the prior written consent of the Government.
7. Not to defease the bonds,or to borrow money,enter into any contractor agreement,or otherwise incur any liabilities
for any purpose in connection with the facility(exclusive of normal maintenance)without the prior written consent of the
Government if such undertaking would involve the source of funds pledged to pay the bonds.
8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government.Funds may be
deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed
by the full faith and credit of the United States.Any income from these accounts will be considered as revenues of the system.
9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility
in good condition.
10. To provide for the receipt of adequate revenues to meet the requirements of debt service,operation and maintenance,and
the establishment of adequate reserves.Revenue accumulated over and above that needed to pay operating and mainte-
nance,debt service and reserves may only be retained or used to make prepayments on the loan.Revenue cannot be used
to pay any expenses which are not directly incurred for the facility financed by USDA.No free service or use of the
facility will be permitted.
According to the Paperwork Reduction Act of 1995,an agency may not conduct or sponsor,and a person is not required to respond to,a collection of information unless
it displays a valid OMB control number. The valid OMB control number for this information collection is 0572-0121. The time required to complete this information
collection is estimated to average 1 hour per response,including the time for reviewing instructions,searching existing data sources,gathering and maintaining the
data needed,and completing and reviewing the collection of information.
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11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Government.
12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to
provide for required audit thereof as required by the Government,to provide the Government a copy of each such audit
without its request,and to forward to the Government such additional information and reports as it may from time to
time require.
13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to
the property of the system so that the Government may ascertain that the Association is complying with the provisions
hereof and of the instruments incident to the making or insuring of the loan.
14. That if the Government requires that a reserve account be established,disbursements from that account(s)may be used
when necessary for payments due on the bond if sufficient funds are not otherwise available and prior approval of the
Government is obtained. Also,with the prior written approval of the Government,funds may be withdrawn and
used for such things as emergency maintenance,extensions to facilities and replacement of short lived assets.
15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain
USDA's concurrence prior to refusing new or adequate services to such persons.Upon failure to provide services which
are feasible and legal,such person shall have a direct right of action against the Association or public body.
16. To comply with the measures identified in the Government's environmental impact analysis for this facility for the pur-
pose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation.
17. To accept a grant in an amount not to exceed$ 599,000.00
under the terms offered by the Government;that the Chair of the Board of County Commissioners
and of the Association are hereby authorized and empowered to take all action necessary
or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant;and
to operate the facility under the terms offered in said grant agreement(s).
The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan,unless otherwise
specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or
insured by the Government or assignee.The provisions of sections 6 through 17 hereof may be provided for in more specific
detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance
should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the
Association and the Government or assignee.
The vote was: Yeas 3 Nays_ Absent ee
WI WITNESS WHEREOF,the Board of County Commissioners of the
Lewis County has duly adopted this resolution and caused it
y�
to be executed by the officers below in duplicate on this , /07 day of 2018.
(SEAL) ®�••••••• •
By Edna J. Fund
�WIS Cp�j�y� Chair,Board of County Co missioners
Attest: p� g0 e
Rieva Lester • * c 9 e
Title Clerk,Board of County Commissioners Q` 1 843 7 O�
Q \ Q% 'e9
•e•N'S 1st COus
-3-
CERTIFICATION TO BE EXECUTED AT LOAN CLOSING
I,the undersigned as Clerk of the Lewis County Board of County Commissioners
hereby certify that the Board of County Commissioners of such Association is composed of
3 members,of whom, .. constituting a quorum,were present at a meeting thereof duly called and
held on the /0 day of . 4F- ov;anddJthat the foregoing resolution was adopted at such meeting
by the vote shown above,I further certify that as of f• J5, P"'l 0 ,
the date of closing of the loan from the United States Department of Agriculture,said resolution remains in effect and has not been
rescinded or amended in any way.
L'e ae p` • GOUN' •
Dated this /0 day of J Q ••„`���5 RD O�tY,p` ••
•Oct 4,G"•
SINCE 1 o•
Pr-(4-pieWe/t— .8 ,
1-845 l
Rieva Lester 5 *\ �o' '�®
Title Clerk, Board of County Commissi \e1-0--,M_ co\%.
9•••••
C.
BOCC AGENDA ITEM SUMMARY
Resolution: BOCC Meeting Date: Sep 10,2018
Suggested Wording for Agenda Item: Agenda Type: Consent
Approve a resolution authorizing and providing for the incurrence of indebtedness of$199,000 for the purpose
of providing a portion of the cost of constructing a water reservoir serving the Vader-Enchanted Valley Water
System.
Contact Betsy Dillin Phone: 3607401138
Department: Public Works
Action Needed: Approve Resolution
Description
In July 2016,the County adopted the Vader—Enchanted Valley Water System Plan,which includes the project,
all in accordance with chapter 36.94 of the Revised Code of Washington. The estimated cost of carrying out the
project is $1,816,864,which will be provided by proceeds of the Bond, grants from USDA, a Community
Development Block Grant and other funds of the County.
The USDA has agreed to make Loan 18 to the County in the principal amount of$199,000 under the conditions,
terms, and specifications set forth in the amended letter of conditions relating thereto, such loan as amended,
such loans to be evidenced by the issuance of the Bond under the terms and conditions set forth in this
resolution.
Additional Copies
Kim Amrine,PW
Betsy Dillin,PW