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1833RESOLUTION 1833 (Position 5 4 USDA-FmHA FORM APPROVED Form FmHA 1942-47 CITY OF MOSES LAKE RESOLUTION #1833 ombno.0575-0015 (Rev.1-90)LOAN RESOLUTION \^J (Public Bodies) A RESOLUTION OFTHE City Council & Mayor • OF THE City of Moses Lake 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 Fire Station &Fire Training Center u u FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS,it is necessary for the City of Moses Lake,Washington (Public Body) (herein after called Association)to raise a portion of thecost of such undertaking by issuance ofitsbonds inthe principal amount of THREE MILLION,TWENTY-THOUSAND AND THREE-HUNDRED DOLLARS AND NO CENTS ($3,020,300.00) pursuant to the provisions of Revised code of Washington Chpt.35A.11.020 &35.24.290 (9).and WHEREAS, the Association intends to obtain assistance from the Farmers Home Administration,United StatesDepartmentof Agri culture,(herein called the Government)acting under the provisions of the Consolidated Farm and Rural Development Act(7U.S.C. 1921 et seq.)in the planning,financing,and supervision of such undertaking andthe purchasing of bondslawfully issued,inthe event that no other acceptable purchaser forsuchbondsis found by the Association: NOWTHEREFORE, in consideration of the premises the Associationhereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such itemsandin such forms asare required by Statestatutesandasare agreeable andacceptable to the Government. 2. To refinance the unpaid balance,in whole or in part,of its bondsupon the request of the Government if at any time it shall appear to the Government thatthe Association isable to refinance itsbonds by obtaining aloan for such purposes from responsible cooperative or private sources at reasonable ratesand terms for loans for similar purposes and periods of time asrequired by section 333(c)of said Consolidated Farm andRural Development Act (7 U.S.C.1983(c)). 3. To provide for, execute, and comply with Form FmHA 400-4,"Assurance Agreement,"and Form FmHA400-1,"Equal Opportunity Agreement," includingan "Equal Opportunity Clause,"which clause is to be incorporated in, or attached asa rider to, each construction contract and subcontract involving in excess of $10,000. 4. To indemnify the Government for any payments made orlossessuffered by the Government on behalf ofthe Association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per missible source. 5.That upon default in the payments of any principal and accrued interest on the bonds or in the performance ofany cov enant or agreement contained herein or in the instruments incident to making or insuring the loan, the Governnment at its option may (a)declare the entire principal amount then outstanding and accrued interest immediately due and pay able, (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 ofdefault, 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, orinterest therein, or permit others to do so.withont thfi orior 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 forany purpose in connection with the facility(exclusive of normalmaintenance)without the priorwritten consent of the Government if suchundertakingwould involvethe sourceof funds pledgedto pay the bonds. 8. To place the proceeds of the bonds on deposit inanaccount andin amannerapproved by the Government. Fundsmay 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 ofthe system. 9. To comply with all applicable State and Federal lawsand regulations andto continuallyoperateandmaintainthe facility in good condition. 10. To provide for the receiptofadequaterevenues to meet the requirements of debt service,operationandmaintenance,and the establishment of adequate reserves.Revenue accumulated over and above that needed to pay operating andmainte 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 FmHA. No free service or use of the facility will be permitted. Public reporting burden for this collection of information is estimated to average 1 hour per response,including the time for reviewing 11searchingexistingdatasources,gathering and maintaining the data needed,and completing and reviewing the collection of information Send commentsregardingthisburdenestimateoranyotheraspectofthiscollectionofinformation,including suggestions for reducing this burden,to Department ofAgriculture,Clearance Officer,OIRM.Room 404-W,Washington,D.C.20250;and to the Office of Management and Budget,Paperwork ReductionProject(OMB No.0675-0015),Washington,D.C.205O3. instructions, its of RESOLUTION #1833 PAGE 2 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 audjj^ without its request, and to forward to the Government such additional information and reports as it may from time 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 and maintained,disbursements from that account may be used when necessary for payments due on the bond if sufficient funds are not otherwise available.Withthe prior written approval of the Government, funds may be withdrawn for: (a) Paying the cost of repairing or replacing any damage to the facility caused by catastrophe. (b)Repairing or replacing short-lived assets. (c) Making extensions or improvements to the facility. Any time funds are disbursed from the reserve account,additional deposits will be required until the reserve account has reached the required funded level. 15.To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain FmHA'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 ofavoiding or reducing the adverse environmental impacts of the facility's construction or operation. 17.To accept a grant in an amount not to exceed S " under the terms offered by the Government;that the City of Moses Lake and of the Association are hereby authorized and empoweredto take allaction 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 makingor the insuringof the loan, unless other^"> specifically provided by the terms ofsuch instrument,shall be binding upon the Association as long as the bonds are hel insured by the Government or assignee.The provisions of sections 6 through 17hereofmay 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 votewas:Yeas Z Nays Q Absent Q IN WITNESS WHEREOF,the Clty Counci1 of ^ City of Moses Lake,Washington has duly adopted this resolution and caused it to be executed by the officers below in duplicate on this 14t.h day of June 19 94 CITY COUNCIL.,CITY-OF MOSES LAKE,WASHINGTON TitiP MAYOR illLU-^-JA- WALTER FRY Title Finance Director/CUy Clerk ~ (( RESOLUTION #1833 PAGE 3 r r CERTIFICATION TO BE EXECUTED AT LOAN CLOSING I,the undersigned,as Mayor ofthe City Of MOSeS LflKg -3- hereby certify that the City Council of the City of Moses Lake,Washinqtorw <nrh Association is composed of seven members,of whom S_e.y.ej],constitutinga quorum,were presentat a meeting thereofduly called and held on the 14th day of June t\g _94_;and that the foregoing resolution was adopted at such meeting by the vote shown above. I further certify that as of , the date of closingof the loan from the Farmers Home Administration,said resolution remains in effect and has not been rescinded or amended in any way. Dated,this JlitL R.WAYNE RIMPCr^ Title MAYOR ^ *U.S.GPO:1990-0-717-014/22842