HomeMy WebLinkAboutResolution 08-012-CCRESOLUTION NO. 08-012-CC
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
GRANT COUNTY, WASHTNGTON, AUTHORIZING THE ISSUANCE
AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE
COUNTY IN THE AGGREGATE PRINCIPAL AMOUNT OF $2,210,000
TO FINANCE CERTAIN IMPROVEMENTS TO THE COUNTY
FAIRGROUNDS; PROVIDING THE DAT�, FORM, TERMS,
MATURITIES, AND REDEMPTION PROVISIONS OF THE BONDS;
PROVIDING FOR THE DISPOSITION OF THE BOND PROCEEDS;
PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY THE
PRINCIPAL OT AND INTEREST ON THE BONDS; AND AUTHORIZING
THE SALE OF THE BONDS.
ADOPTED ON FEBRUARY 27, 2008
Prepared by:
K&L PRESTON GATES ELLIS LLP
Seattle, Washington
Section 1.
Section 2,
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10,
Section 11.
Section 12,
Section 13.
Section 14.
Section 15.
Section 16.
RESOLUTION NO, 08-012-CC
TABLE OF CONTENTS*
Pa�e
Definitions............................................................................................................ 2
Authorizationof Projects ...................................................................................... 5
Authoxization and Description of Bonds .............................................................. 6
Registration, Exchange and Payments .................................................................. 7
Redemption Prior to Maturity and Purchase of Bonds ....................................... 11
Formof Bonds .................................................................................................... 15
Executionof Bonds ............................................................................................ 17
Lostor Destroyed Bonds .................................................................................... 18
BondFund .......................................................................................................... 18
Pledge of Taxation and Credit ............................................................................ 19
Defeasance.......................................................................................................... 19
Project Fund; Application of Bond Proceeds ..................................................... 20
Tax Covenants; Special Designation.,....� ............................................................ 20
Saleof Bonds ...................................................................................................... 22
Undertaking to Provide Ongoing Disclosure ...................................................... 23
Severability......................................................................................................... 26
� Neither this Table of Contents nor the preceding cover page is a part of this resolution,
and is included solely for convenience of the xeader.
RESOLUTION NO. 08-012-CC
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
GRANT COUNTY, WASHINGTON, AUTHORIZING THE ISSUANCE
AND SALE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE
COUNTY 1N THE AGGREGATE PRINCIPAL AMOUNT OF $2,210,000
TO FINANCE CERTAIN IMPROVEMENTS TO THE COUNTY
FAIRGROUNDS; PROVIDING THE DAT�, FORM, T�RMS,
MATURITIES, AND REDEMPTION PROVISIONS OF THE BONDS;
PROVIDING FOR THE DISPOSITION OF THE BOND PROCEEDS;
PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS; AND AUTHORIZING
THE SALE OF TH� BONDS.
WHEREAS, the Board of County Commissioners (the "Board") of Grant County,
Washingtan (the "County") has determined that it is in the best interest of the County that it
make certain improvements to the fairgrounds of the County (the "Projects", as described in
Section 2 of this resolution); and
WHEREAS, it is in the best interest of the County to issue limited tax general obligation
bonds in order to finance the Projects; and
WHEREAS, the County is authorized by RCW 36.67 and ch. 39.46 to issue general
obligation bonds payable from, inter° alia, regular tax levies of the County; and
WHEREAS, it is necessary that the designation, date, form, terms and maturities of such
general obligation bonds be fixed; and
WHEREAS, the bonds authorized herein shall be sold pursuant to negotiated sale as
herein provided;
NOW, TH�REFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF GRANT COUNTY, WASHTNGTON, as follows:
Section 1. Definitions The following words and terms as used in this resolution shall
have the following meanings for all purposes of this resolution, unless some other meaning is
plainly intended.
Beneficial Owner means any person that has or shares the power, directly or indirectly to
make investment decisions concerning ownership of any Bonds (including persons holding
Bonds through nominees, depositories or other intermediaries),
Board means the Board of County Gommissioners of the County, the general legislative
body of the County, as constituted from time to time.
Bond Fund means the "Grant County Limited Tax General Obligation Bond Fund,
2008" established pursuant to Section 9 hereof.
Bond Register means the registration books maintained by the Bond Registrar for the
purpose of identifying ownership of the Bonds.
Bond Regisirar means the fiscal agency of the State of Washington for the purposes of
registering and authenticating the Bonds, maintaining the Bond Register, effecting the transfer of
ownership of the Bonds and paying interest on and principal of the Bonds or any registrar
hereafter appointed by the Treasurer.
Bonds means the Limited Tax General Obligation Bonds, 2008 0� the County issuecl
pursuant to this resolution.
Code means the federal Internal Revenue Code of 1986, as amended. Any reference to a
provision of the Coda shall include the applicable regulations of the Department of the Treasury
promulgated with respect to such provision.
County means Grant County, Washington, a political subdivision duly organized and
existing by virtue of the Constitution and laws of the State of Washington.
-2- P:�20287 CMW120287 7WX 2/26/2008
County Representative means the Treasurer,
DTC means The Depository Trust Company of New York, a limited purpose trust
company organized under the laws of the St�te of New York, a depository for the Bonds
pursuant to Section 4 hereof.
Government Obligations has the meaning given such term in Chapter 39.53 RCW, as the
same may be amended or restated from time to time.
Letter of Representations means the blanket issuer letter of representations from the
County to DTC.
MSRB means the Municipal Securities Rulemalcing Board or any successor to its
functions.
NRMSIR means a nationally recognized municipal securities information repository.
Private Person means any natural person engaged in a trade or business or any trust,
estate, partnership, association, company or corporation.
Private Person Use means the use of property in a trade or business by a Private Person
if such use is other than as a member of the general public. Private Person Use includes
ownership of the property by the Private Person as well as other arrangements that transfer to the
Private Person the actual or beneficial use of the property (such as a lease, management or
incentive payment contract or other special arrangement) in such a manner as to set the Private
Person apart from the general public. Use of property as a member of the general public includes
attendance by the Private Person at municipal meetings or business rental of property to the
Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the
rental paid by any Private Person who desires to rent the property. Use of property by nonprofit
community groups or community recreational groups is not treated as Private Person Use if such
°3° P:120287 CMVN20287 7WX 2/26/2008
use is incidental to the governmental uses of property, the property is made available for such
use by all such community groups on an equal basis and such community groups are charged
only a de minimis fee to cover custodial expenses.
hereof.
I'rojects mean those projects described and authorized by Section 2 of this resolution.
1'rojeci Fund means the "2008 Bond Construction Fund" as described in Section 12
Registered Owner means the person named as the registered owner of the Bond in the
Band Register.
Rule means the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934, as the
same may be amended from time to time.
SEC means the Securities and Exchange Commission,
S'ID means a state information depository for the State of Washington (if one is created).
Treasurer means the treasurer of the County pursuant to RCW Ch. 36.29, as amended
from time to time.
Underwriter means D.A. Davidson & Co,, Spokane, Washington.
Rules o�' Interuretation:
In this resolution, unless the context otherwise requires:
(a) The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar
terms, as used in this resolution, refer to this resolution as a whole and noti to any particular
article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the
term "heretofore" shall mean before, the date of this resolution;
-4- P:�20267 CMVN20287_7WX 2/26/2008
(b) Words of the masculine gender shall mean and include correlative words of the
feminine and neuter genders and words importing the singular number shall mean and include
the plural number and vice versa;
(c) Words importing persons shall include firms, associations, partnerships (including
limited partnerships), trusts, corporations and other legal entities, including public bodies, as well
as natural persons;
(d) Any headings preceding the text of the several articles and Sections of this
resolution, and an� table of contents or marginal notes appended to copies hereof, shall be solely
for convenience of reference and shall not constitute a part of this resolution, nor shall they affect
its meaning, construction or effect; and
(e) All references herein to "articles," "sections" and other subdivisions or clauses are
to the corresponding articles, sections, subdivisions or clauses hereof.
Section 2. Authorization of Projects. The Bonds are being issued to provide funds to
pay a portion of the costs of certain improvements to the fairgrounds of the County including:
1. construct new horse barns;
2. add AD.A compliant restrooms;
3. remodel, insulate and add HVAC systems to buildings;
4. add a kitchen facility; and
5. Utility service upgrades to serve the County's fair iacilities,
The cost of all necessary architectural, engineering, and other consulting services,
inspection and testing, administrative and relocation expenses, on and off-site utilities, site
acquisition, related improvements and other costs incurred in connection with the making of the
-J^ P:120287 CMVN20287 7WX 2/26/2008
capital improvements shall be deemed a part of the costs of such improvements, Such
improvements shall be complete with all necessary furniture, equipment and appurtenances.
I� available funds are sufficient from the proceeds ot' Bonds authorized for the above
purposes, the County shall use such funds to pay the principal of or interest on the Bonds or to
acquire, construct, equip or make other capital improvements the Board may deem reasonable
and in the best interests of the County.
The above-referenced improvements are hereinafter collectively referred to as the
"Projects". The Projects have been or will be undertaken in compliance with all requirements of
environmental and cornprehensive plans of the County and will be consistent with the County's
comprehensive plans of development.
Section 3. Authorization and Description of Bonds. The County hereby authorizes
the issuance and sale of the Bonds for the purposes of paying the costs of the Projects and paying
the expenses incidental to the issuance of the Bonds.
' The Bonds shall be in the aggregate principal amount of $2,210,000 and shall be
designated "Grant County, Washington Limited Tax General Obligation Bonds, 2008". The
Bonds shall be dated as of their initial date of delivery, shall be fully registered as to both
principal and interest, shall be in the denomination of $5,000 each or any integral multiple
thereof, provided that no Bond shall represent more than one maturity, and shall be numbexed
separately in such manner and with any additional designation as the Bond Registrar deems
necessary for purposes of identiiication, and shall bear interest from their date or from the most
recent interest payment date to which interest has been paid or duly provided for, whichever is
later, payable on December 1, 2008, and semiannually thereafter on each succeeding June 1 and
°V� P:�20287 CMVN20287 7WX 2/26/2008
December l, to the maturity or earlier redemption of tihe Bonds, at the following rates, and sha11
mature on Decernber 1 of the following years in the following principal amounts.
Maturity Year
�December 1)
2009
2010
2011
2012
Principal Amount
$ 860,000
435,000
450,000
465,000
Section 4. Re�istration, Exchan�e and Pavments.
Interest Rate
2.55 %
3.50
2,85
3.50
(a) Bond Registrar/Bond Register�. The Board hereby requests that the Treasurer
specify and adopt the system of registration and transfer for the Bonds approved by the
Washington State Finance Committee from time to time through the appointment of state fiscal
agencies. The County shall cause a bond register to be maintained by the Bond Registrar. So
long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to
permit the exchange or registration of transfer of Bonds at its principal corporate trust office.
The Bond Registrar may be removed at any time at the option of the Treasurer upon prior notice
to the Bond Registrar, DTC, each entity entitled to receive notices pursuant to Section 15, any,
and a successor Bond Registrar appointed by the Treasurer. No resignation or removal of the
Bond Registrar shall be effective until a successor shall have been appointed and until the
successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder, The
Bond Registrar is authorized, on behalf of the County, to authenticate and deliver Bonds
transferred or exchanged in accordance with the provisions of such Bonds and this resolution and
to carry out all of the Bond Registrar's powers and duties under this resolution, The Bond
Registrar shall be responsible for its representations contained in the Certificate of
Authentication on the Bonds.
' /' P:�20267 CM�M20267 7WX 2/26/2008
(b) Register^ed Ownership. The County and the Bond Registrar, each in its discretion,
may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all
purposes (except as provided in Section 15 af this resolution), and neither the County nor the
Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall
be made only as described in Section 3 hereof, but such Bond may be transfei�red as herein
provided. All such payments made as described in Section 3 shall be valid and shall satisfy and
discharge the liability of the County upon such Bond to the extent of the amount or amounts so
paid.
(c) DTC Acceptance/Lette�^ of Repr�esentations. To induce DTC to accept the Bonds
as eligible for deposit at DTC, the County has executed and delivered to DTC a Letter of
Representations,
Neither the County nor the Bond Registrar will have any responsibility or obligation to
DTC participants or the persons for whom they act as nominees (or any successor depository)
with respect to the Bonds in respect o� the accuracy of any records maintained by DTC (or any
successor depositoxy) or any DTC participant, the payment by DTC (or any successor
depository) or any DTC participant of any amount in respect of the principal of or interest on
Bonds, any notice which is permitted or required to be given to Registered Owners under this
resolution (except such notices as shall be required to be given by the County to the Bond
Registrar or to DTC (or any successor dapository), or any consent given or other action talcen by
DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held
in fully-imrnobilized form hereunder, DTC or its successor depository shall be deemed to be the .
Registered Owner for all purposes hereunder (except as provided in Section 15 of this
resolution), and all references herein to the Registered Owners shall mean DTC (or any
-O° P:�20287 CMVN20267 7WX 2/26/2008
successor depository) or its nominee and shall not mean the owners of any beneficial interest in
such Bonds.
If any Bond shall be duly presented for payment and funds have not been duly provided
by the County on such applicable date, then interest shall continue to accrue thereafter on the
unpaid principal thereof at the rate stated on such Bond until such Bond is paid.
(d) Use of Deposztory.
(1) The Bonds shall be registered initially in the name of "Cede & Co,", as
nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a
denomination corresponding to the total principal therein designated to mature on such date.
Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be
transferred except (A) to any successor of DTC or its nominee, provided that any such successor
shall be qualified under any applicable laws to provide the service proposed to be provided by it;
(B) to any substitute depository appointed by the County Representative pursuant to
subsection (2) below or such substitute depository's successor; or (C) to any person as provided
in subsection (4) below.
(2) Upon the resignation of DTC or its successor (or any substitute depository
or its successor) from its functions as depository or a determination by the Board to discontinue
the system of boolc entry transfers through DTC or its successor (or any substitute depository or
its successor), the County Representative may hereafter appoint a substitute depository. Any
such substitute depository shall be qualified under any applicable laws to provide the services
proposed to be provided by it.
(3) In the case of any transfer pursu�nt to clause (A) or (B) of subsection (1)
above, the Bond Registrar shall, upon receipt o� a11 outstanding Bonds, together with a written
'9' P:120267 CM�M20287 7WX 2126l20D8
request on behalf of the County Representative, issue a single new Bond for each maturity then
outstanding, registered in the name of such successor or such substitute depository, or their
nominees, as the case may be, all as specified in such written request of the County
Representative.
(4) In the event that (A) DTC or its successor (or substitute depository or its
successor) resigns from its functions as depository, and no substitute depository can be obtained,
or (B) the County Representative determines that it is in the best interest of the beneficial owners
of tl�e Bonds that such owners be able to obtain such bonds in the form of Bond certificates, the
ownership of sucli Bonds may then be transferred to any person or entity as herein provided, and
shall no longer be held in fully-immobilized form. The County Representative shall deliver a
written request to the Bond Registrar, together with a supply of definitive Bonds, to issue Bonds
as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all
then outstanding Bonds together with a written request on behalf of the County Representative to
the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in
the names of such persons as are requested in such written request.
(e) Registration of Transfer of Ownership or Exchange; Change in Denominations.
The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any
such Bond shall be valid unless such Bond is surrendered to the Bond Registrar with the
assignment form appearing on such Bond duly executed by the Registered Owner or such
Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon
such surrender,'the Bond Registrar shall cancel the surrendered Bond and shall authenticate and
deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at
the option of the new Registered Owner) of the same date, maturity and interest rate and for the
° 1 �' P;�20287 CMVN20287 7WX 2/26/2008
same aggregate principal amount in any authorized denomination, naming as Registered Owner
the person or persons listed as the assignee on the assignment form appearing on the surrendered
Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to
the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of
Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond
Registrar shall not be obligated to register the transfer or to exchange any Bond during the 15
days preceding the date any such Bond is to be redeemed.
(�j Bond Registrar's Ownership of Bonds. The Bond Registrar may become the
Registered Owner of any Bond with the sarne rights it would have if it were not the Bond
Registrar, and tb the extent permitted by law, may act as depository for and permit any of its
officers or directors to act as member of, or in any other capacity with respect to, any committee
formed to protect tha right of the Registered Owners of Bonds.
(g) Regist�ation Covenant. The County covenants that, until all Bonds have been
surrendered and cancelled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code.
Section 5. Redemption Prior to Maturitv and Purchase of Bonds.
(a) No Optional Redemption. The Bonds are not subject to optional redemption prior
to their scheduled maturities.
(b) Mandatory Sinking Fund Redemption. The Bonds maturing on December 1, 2009
are subject to mandatory sinlcing fund redemption at a price of par plus accrued interest to the
date of redemption on December 1 of the following years in the following principal amounts:
-1 1° P:�2D287 CMVN20287 7WX 2/26/2008
Redemption Years
2008
2009*
* Maturity.
Redemption
Amounts
$ 435,000
425,000
(c) Pu�^chase of Bonds. The County reserves the right to purchase any of the Bonds
offered to it at an� time at a price deemed reasonable by the Treasurer.
(d) Selection of Bonds for Redemption. For as long as the Bonds are held in
book-entry only form, the selection of particular Bonds within a inaturity to be redeemed shall be
inade in accordance with the operational arrangements then, in effect at DTC. If the Bonds are no
longer held in uncertificated form, the selection of such Bonds to be redeemed shall be made as
provided in this subsection (d). If the County redeems at any one time fewer than all of the
Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity
to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar) in
increments of $5,000. In the case of a Bond oi a denomination greater than $5,000, the County
and the Bond Registrar shall treat each Bond as representing such number of saparate Bonds
each of the denomination of $5,000 as is obtained by dividing the actual principal amount of
such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is
redeemed, upon surrender of the such Bond at the principal office of the Bond Registrar there
shall be issued to the Registered Owner, without charge therefor, for the then unredeemed
balance of the principal sum the�eof, at the option of the Registered Owner, a Bond or Bonds of
like maturity and interest rate in any of the denominations herein authorized.
(e) Notice of Redemption,
(1) Official Notice. For so long as the Bonds are held in uncertificated form,
notice of redemption shall be given in accordance with the operational arrangements of DTC as
' 1 G- P;�20287 CMVN20287 7WX 2/26/2008
then in effect, and neither the County nor the Bond Registrar will provide any notice of
rademption to any Beneficial Owners. Thereafter (if the Bonds are no long held in uncertificated
form), notice of redemption shall be given in the manner hereinafter provided. Unless waived by
any owner of Bonds to be redeemed, official notice of any such redemption (which redemption
shall be conditioned by the Bond Registrar on the receipt of sufficient funds for redemption)
shall be given by the Bond Registrar on behalf oi the County by mailing a copy of an official
redemption notice by first class mail at least 30 days and not more than 60 days prior to the date
fixed for redemption to the Registered Owner of the Boiid or Bonds to be redeemed at the
address shovm on the Register or at such other address as is furnished in writing by such
Registered Owner to the Bond Registrar.
All official notices of redemption shall be dated and shall state:
(A) the redemption date,
(B) the redemption price,
(C) if fewer than all outstanding Bonds are to be redeemed, the
identification by maturity (and, in the case of partial redemption, the respective principal
amounts) of the Bonds to be redeemed,
(D) that on the redemption date the redemption price will become due
and payable upon each such Bond or portion thereof called far redemption, and that interest
thereon shall cease to accrue from and after said date, and
(E) the place where such Bonds are to be surrendered for payment of
the redemption price, which place of payment shall be the principal ofiice of the Bond Registrar.
�13° P:�20287 CMVN20287 7WX 2/26/2008
On or prior to any redemption date, the County sllall deposit with the Bond Registrar an
amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds
which are to be redeemed on that date,
(2) Effect of Notice; Bonds Due. Official notice of redemption having been
given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption
date, become due and payable at the redemption price therein specified, and from and after such
date (unless the County shall default in the payment of the redemption price) such Bonds or
portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption
price. Installrnents of interest due on or prior to the redemption date shall be payable as herein
provided for payment of interest. Upon surrender for any partial redemption of any Bond, there
shall be prepared for the Registered Owner a new Bond or Bonds of the same maturity in the
amount of the unpaid principal, All Bonds which have been redeemed shall be canceled and
destroyed by the Bond Registrar and shall not be reissued.
(3) Additional Notice. In addition to the foregoing notice, further notice shall
be given by the County as set out below, but no defect in said further notice nor any failure to
give all or any portion of such further notice shall in any manner defeat the effectiveness of a cal�
for redemption if notice thereof is given as above prescribed. Each further notice of redemption
given hereunder shall contain the information required above for an official notice of rademption
plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as
originally issued; (C) the rate of interest borne by each Bond being redeemed; (D) the maturity
date of each Bond being redeemed; and (E) any other descriptive information needed to identify
accuxately the Bonds being redeemed. Each further notice of redemption may be sent at least
� 1't' P:120267_CMW120267 7WX 2/26I2008
35 days before the redemption date to the Insurer, each person entitled to receive notice pursuant
to Section 15 of this resolution, and to the Underwriter or to its business successor, if any, and to
such persons (including securities repositories who customarily at the time receive notices af
redemption in accordance with rules promulgated by the SEC) and with such additional
information as the County shall deem appropriate, but such mailings shall not be a condition
precedent to the redemption of such Bonds.
(4) Amendment of Notice Provisions. The foregoing notice provisions of this
Section 5, including but not limited to the in�ormation to be included in redemption notices and
the persons designated to receive notices, may be amended by additions, deletions and changes
in order to maintain compliance with duly promulgated regulations and recommendations
regarding notices of redemption of municipal securities.
Section 6.
INTEREST RATE:
Registered Owner:
Principal Amount:
Form of Bonds. The Bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF WASHINGTON
GRANT COUNTY, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BOND, 2008
%
C�DE & CO.
MATURITY DATE:
CUSIP NO.:
Grant County, Washington (the "County"), hereby acicnowledges itself to owe and for
value received promises to pay to the Registered Owner identified above, or registered assigns,
on the Maturity Date identified above, the Principal Amount indicated above and to pay interest
thereon from March 12, 2008, or the most recent date to which interest has been paid or duly
provided for until payment of this bond at the Interest Rate set forth above, payable on
December 1, 2008, and semiannually thereafter an the first days of each succeeding June and
December. Both principal of and interest on this bond are payable in lawful money of the United
States of America. For so long as the bonds of this issue are held in fi�lly immobilized form,
payments of principal and interest thereo� shall be made as provided in accordance with the
operational arrangernents of The Depository Trust Company ("DTC") referred to in the Blanket
^ I S- P;120287_CMW�20287_7WX 2/26/2008
Issuer Letter of Representations (the "Letter of Representations") from the County to DTC.
Initially, the County's Treasurer has specified and adopted the registration system for the bonds
of this issue specified by the Washington State Finance Committee, and the fiscal agency of the
State will act as registrar, paying agent and authenticating agent (the "Bond Registrar"),
The bonds of this issue are issued under and in accordance with the provisions of the
Constitution and applicable statutes of the State of Washington and Resolution No. 08-012-CC
duly adopted by the Board on February 27, 2008 (the "Bond Resolution"). Capitalized terms
used in this bond have the meanings given such terms in the Bond Resolution.
This bond is one of an authorized issue of bonds of lilce date, teiior, rate of interest and
date of maturity, except as to number and amount in the aggregate principal amount of
$2,210,000 and is issued pursuant �o the Bond Resolution for providing funds to pay part of the
cost of the Projects and pay costs of issuance.
The bonds of this issue are not subject to optional redemption prior to their stated
maturities, The bonds of this issue are subject to mandatory redemption as stated in the Bond
Resolution.
The County hereby irrevocably covenants and agrees with the owner of this bond that it
will include in its annual budget and levy taxes annually, within and as a part of the tax levy
permitted to counties without a vote of the electorate, upon all the property subject to taxation in
amounts sufficient, together with other revenues and money legally available therefor, to pay the
principal of and interest on this bond as the same shall become due. The full faith, credit and
resources of the County axe hereby irrevocably pledged for the annual levy and collection of
such taxes and the prompt payment of such principal and interest.
The County has designated the bonds of this issue as "qualified tax-exempt obligations"
for investment by financial institutions under Section 265(b) of the Code.
The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the
terms and conditions set forth in the Bond Resolution,
This bond shall not be valid or become obligatoxy for any purpose or be entitled to any
security or benefit under the Bond Resolution until the Certificate oi Authentication hereon shall
have been manually signed by or on behalf of the Bond Registrar.
It is hereby certified that all acts, conditions and things required by the Constitution and
statutes of the State af Washington to exist, to have happened, been done and performed
precedent to and in the issuance of this bond have happened, been done and performed and that
the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory
or other limitation upon the amount of bonded indebtedness that the County may incur.
-16- P:�oza� cMw+zoza� �wx zi2si2ooa
IN WITNESS WHEREOF, Grant County has caused this bond to be executed by the
manual or facsimile signatures of the Chair and Clerk of the Board of County Commissioners,
and the seal of the County to be impressed, imprinted or otherwise reproduced hereon, as of this
12th day of March, 2008,
GRANT COUNTY, WASHINGTON
(SEAL)
/s/ facsirnile or manual si�nature
Chair of the Board of
County Commissioners
ATTEST:
/s/ facsimile or manual si ng ature
Clerk of the Board of
County Cornmissioners
The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially
the following form:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Bond Resolution and is
one of the Limited Tax General Obligation Bonds, 2008 of Grant County, Washington, dated
March 12, 2008.
WASHINGTON STATE FISCAL
AGENCY, as Bond Registrar
I:
Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the County
with the manual or facsimile signatures of the Chair of the Board and the Clerk of the Board, and
the corporate seal of the County shall be impressed, imprinted or otherwise reproduced thereon.
In case either or both of the officers who shall have executed the Bonds shall cease to be
an officer or officers of the County before the Bonds so signed shall have been authenticated or
delivered by the Bond Registrar, or issued by the County, such Bonds may nevertheless be
-17- P:�20287 CMW�2D287 7WX 2/26/2008
authenticated, delivered and issued, and upon such authentication, delivery and issuance, shall be
as binding upon the County as though those who signed the same had continued to be such
officers of the County. Any Bond also may be signed and attested on behalf of the County by
such persons as at the actual date of execution of such Bond shall be the proper officers of the
County although at the original date of such Bond any such person shall not have been such
officer of the County.
Only such Bonds as shall bear thereon a Certificate of Authentication in the form
hereinbefore recited, manually executed by the Bond Registrar, sha11 be valid or obligatory for
any purpose or entitled to the benefits of this resolution. Such Certificate of Authentication shall
be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated
and delivered hereunder and are entitled to the benefits of this resolution.
Section 8. Lost or Destroved Bonds. If any Bonds are lost, stolen or destroyed, the
Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, maturity and
tenor to the Registered Owner upon the owner paying the exper�ses and charges of the Bond
Registrar and the County in connection with preparation and authentication of the replacement
Bond or Bonds and upon his or her filing with the Bond Registrar and the County evidence
satisfactor� to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or
her ownership, and upon furnishing the County and the Bond Registrar with indemnity
satisfactory to both. '
Section 9. Bond Fund. A fund of the County to be lcnown as the "Grant County
Limited Tax General Obligation Bond Fund, 2008" is hereby authorized and directed to be
created in the office of the County Treasurer. The taxes hereafter levied for the purpose of
paying principal of and interest on the Bonds and other funds to be used to pay the Bonds shall
' 1 �' P:�20287_CMVN20287_7WX 2/26/2008
be deposited in the Bond Fund no later than the date such funds are required for the payment of
principal of and interest on the Bonds. The Bond Fund shall be drawn upon for the sole purposa
of paying the principal of and interest on the Bonds. Money in the Sond Fund not needed to pay
the interest or principal next coming due may temporarily be deposited in such institutions or
invested in such obligations as may be law�ul for the investment of County money.
Section 10. Pledge of Taxation and Credit. The County hereby irrevocably covenants
and agrees for as long as any of the Bonds are outstanding and unpaid that each year it will
include in its budget and levy an ad valorem tax upoi� all the property within the County subject
to taxation in an amount that will be sufficient, together with all other revenues and money of the
County legally available for such purposes, to pay the principal of and interest on the Bonds as
the same shall become due. All of such taxes so collected and any other money to be used for
such purposes shall be paid into the Bond Fund.
The County hereby irrevocab�ly pledges that the annual tax provided for herein to be
levied for the payment of such principal and interest shall be witliin and as a part of the tax levy
permitted to counties without a vote of the people, atid that a sufficient portion of each annual
levy to be levied and collected by the County prior to the full payment of the principal of and
interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for
the payment of the principal of and interest on the Bonds.
The full faith, credit and resources of the County are hereby irrevocably pledged for the
annual levy and collection of said taxes and for the prompt payment of the principal of and
interest on the Bonds as the same shall become due.
Section 11. Defeasance. In the event that money and/or Government Obligations,
maturing at such time or times and bearing interest to be earned thereon in amounts (together
-19- P:�zoza�_cMw�zoze�_�wx 2126/2008
with such money, if necessary) sufficient to redeem and retire part or all of the Bonds in
accordance with their ter�ns, are set aside in a special account of the County to effect such
redemption and retirement, and such money and the principal of and interest on such
Government Obligations are irrevocably set aside and pledged for such purpose, then no further
payments need be rnade into the Bond rund for the payment of the principal of and interest on
the Bonds so provided for, and the registered owners of such Bonds shall cease to be entitled to
any lien, benefit or security of this resolution except the right to receive the money so set aside
and pledged, and such Bonds shall be deemed not to be outstanding hereunder. Within 30 days
of any defeasance of Bonds, the Bond Registrar shall provide notice of defeasance of Bonds to
Registered Owners and to each entity entitled to receive notice pursuant to Section 15 of this
resolution.
Section 12. Proiect Fund; Application of Bond Proceeds. There is hereby authorized
to be created a separate fund of the County to be known as the "2008 Bond Construction Fund"
(the "Project Fund"), which fund is to be drawn upon for the purpose of paying the costs of the
Projects as directed by the Board from time to time and paying costs of issuance of the Bonds.
At the time of delivery of the Bonds, the proceeds of the Bonds shall be deposited into the
Project Fund and used to pay the costs of the Projects as described in Section 2 and all costs
incidental thereto and to the issuance of the Bonds. Money in the Project Fund shall be invested
as provided by the Treasurer or his designee in legal investments for County funds.
Section 13. Tax Covenants; Special, Desi ng ation.
(a) No Arbitrage or Private Activity Bonds, The County hereby covenants that it will
not malce any use of the proceeds from the sale of the Bonds or any other funds of the County
that may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code that will
°2�- P;�20287 CMVN20287 7WX 2/26/2008
cause the Bonds to be "arbitrage bonds" within the meaning of said Section. The County will
comply with the applicable requirements of Section 148 of the Code (or any successor provision
thereof applicable to the Bonds) throughout the term of the Bonds.
The County further covenants that it will not take any action or permit any action to be
talcen that would cause the Bonds to constitute "private activity bonds" under Section 141 of the
Code.
(b) Private Person Use Limitatron for Bonds. The County covenants that for as long
as the Bonds are outstanding, it will not permit:
(1) More than 10% of the Net Proceeds of the Bonds to be allocated to any
Private Person Use; and
(2) More than 10% of the principal or interest payments on the Bonds in a
Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used
for any Private Person Use or secured by payments in respect of property used or to be used for
any Private Person Use, or (B) derived from payments (whether or not made to the County) in
respect of property, or bo�rowed money, used or to be used for any Private Person Use.
The County further covenants that, if:
(3) More than iive percent of the Net Proceeds of the Bonds are allocable to
any Private Person Use; and
(4) More than five percent of the principal or interest payments on the Bonds
in a bond year are (under the terms of this resolution or any underlying arrangement) directly or
indirectly: (A) secured by any interest in property used or to be used for any Private Person Use
or secured by payments in respect of property used or to be used for any Private Peison Use, or
(B) derived from payments (whether or not m�de to the County) in respect of property, or
-2 1- P:�20287_CM1M20287_7WX 2/26/2008
borrowed money, used or to be used for any Private Person Use, then, (1) any Private Person Use
of the Project described in subsection (3) hereof or Private Person Use payments described in
subsection (4) hereof that is in excess of the five percent limitations described in such
subsections (3) or (4) will be for a Private Person Use that is related to the state or local
governinental use of the projects financed and refinanced with Bond proceeds, and (2) any
Private Person Use will not exceed the amount of Net Proceeds of the Bonds used %r the state or
local governmental use portion of the projects to which the Private Person Use of such portion of
such projects relate. The County further covenants that it will comply with any limitations on
the use of the projects by other than state and local governmental users that are necessary, in the
opinion of its bond counsel, to preserve the tax exemption of the interest on the Bonds. The
covenants of this section are specified solely to assure the continued exemption from regular
income taxation of the interest on the Bonds.
(c) Designation under Section 265(b) of the Code. The County hereby designates the
Bonds as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code for banks,
thrift institutions and other financial institutions. The County does not anticipata issuing more
than $10,000,000 in qualified tax-exempt obligations during 2008.
Section 14. Sale of Bonds. The Bonds shall be sold by negotiated sale to the
Undexwriter, under the terms and conditions thereof as provided in its purchase of%r and in this
resolution. The County Representative or his designee is hereby authorized and directed to
execute said purchase offer on behalf o� the County.
The County Representative or his designee are hereby authorized to review and approve
on behalf of the County the preliminary and final Official Statements relative to the Bonds with
such additions and changes as may be deemed necessary or advisable to thein. The preliminary
^ZG- P:�20287_CMVN20287 7WX 2126/200$
Official Statement for the Bonds, dated February 15, 2008, is hereby deemed final for the
purposes of Securities and Exchange Commission Rule 15c2-12.
The County Representative and other County officials, agents and representative are
hereby authorized and directed to do everything necessary for the prompt issuance, execution
and delivery of the Bonds to the Underwriter and for the proper application and use of the
proceeds of sale of the Bonds.
Section 15. Undertalcing,to Provide Ongoing Disclosure.
(a) Contract/Undertaking. This section constitutes the County's written under�taking
for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule.
(b) Financial Statements/Op.erating Data. The County agrees to provide or cause to
be provided to each NRMS�R and to the SID, if any, in each case as designated by the SEC in
accordance with the Rule, the following annual financial informatior� and operating data for the
prior fiscal year (commencing in 2009 for the fiscal year ended December 31, 2008):
(1) Annual iinancial statements, which statements may or may not be audited,
showing ending fund balances for the County's general fund prepared in accordance with the
Budget Accounting and Reporting System prescribed by the Budget Accounting and Reporting
System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any
successor statute) and generally of the type included in the official statement for the Bonds under
the heading "Historical and Budgeted Current Expense Fund Operating Results";
(2) The assessed valuation of taxable property in the County;
(3) Ad valorern taxes due and percentage of taxes collected;
(4) Property tax levy rate per $1,000 of assessed valuation; and
(5) Outstanding general obligation debt of the County.
-23^ P:\20287 CM1M20287 7WX 2l26l2008
Items 2-5 shall be required only to the extent that such information is not iiicluded in the annual
financial statements,
The information and data described above shall be provided on or before nine months
after the end of the County's fiscal year. The County's current fiscal year ends December 31.
The County may adjust such fiscal year by providing written notice of the change of fiscal year
to each then existing NRMSIR and the SID, if any. In lieu of providing such annual financial
information and operating data, the County may cross-reference to other documents provided to
the NRMSIR, the STD or to the SEC and, if such document is a final official statement within the
meaning of the Rule, available from the MSRB.
If not provided as part of the annual financial information discussed above, the County
shall provide the County's audited annual financial statement prepared in accordance with the
Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant
to RCW 43.09.200 (or any successor statute) when and iF available to each then existing
NRMSIR and the SID, if any.
(c) Material Events. The County agrees to provide or cause to be provided, in a
timely manner, to the SID, ii any, and to each NRMSIR or to the MSRB notice of the occurrence
of any of the following events with respect to the Bonds, if matexial:
s
.
.
.
.
Principal and interest payment delinquencies;
Non-payment related defaults;
Unscheduled draws on debt service reserves reflecting financial
difficulties;
Unscheduled draws on credit enhancements reflecting financial
difiiculties;
Substitution of credit or liquidity providers, or their failure to perform;
°2't- P;�20287 CM1M20287 7WX 2/26/2006
• Adverse tax opinions or events afFecting the tax-exempt status of the
Bonds;
• Modifications to the rights of Bond owners;
• Bond calls (optional, contingent or unscheduled Bond calls other than
scheduled sinking fund redemptions for which notice is given pursuant to
Exchange Act Release 34-23856);
• Defeasances;
s Release, substitution or sale of property securing repayment of the Bonds;
and
• Rating changes.
Solely for purposes of disclosure, and not intending to modify this undertaking, the
County advises that no debt service reserve secures payment of the Bonds.
(d) Tet^mination/Modification. The County's obligations to provide annual financial
information and notices of material events shall terminate upon the legal defeasance, prior
redemption or payment in full of all of the Bonds. Any provision of this section shall be null and
void if the County (1) obtains an opinion of nationally recognized bond counsel to the effect that
the portion of the Rule that requires that provision is invalid, has been repealed retroactively or
otherwise does not apply to the Bonds and (2) notifies each NRMSIR and the SID, if any, of
such opinion and the cancellation of this section.
The County may amend this section with an opinion of nationally recognized bond
counsel in accordance with the Rule. In the event of any amendment of this section, the County
shall describe such amendment in the next annual report, and shall include, a narrative
explanation of the reasan for the amendment and its impact on the type (or in the case of a
change of accounting principles, on the presentation) of financial information or operating data
being presented by the County. In addition, if the amendment relates to the accounting
principles to be followed in preparing financial statements, (i) notice of such change shall be
°GS— p;�2o287_CMVN20287 7WX 2/26/20'oe
given in the same manner as for a material event under Subsection (c), and (ii) the annual report
for the year in which the change is made shall present a comparison (in narrative form and also,
if feasible, in quantitative form) between the financial statements as prepared on the basis of the
new accounting principles and those prepared on the basis of the former accounting principles.
(e) Bond OwneN's Remedies Under� This Section. The right of any bondowner or
beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to
obtain specific enforcement of the County's obligations under this section, and any failure by the
County to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds. I'or purposes of this section, "beneficial owner" means any person who has
the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of,
any Bonds, including persons holding Bonds through nominees or depositories.
(� DisclosuNe USA. The County may elect to submit the information required by this
Section 15 to be filed with the NRMSIRs and the SID, if any, directly to DisclosureUSA.org
unless or until the SEC withdraws its approval of this submission process.
(g) No Default: The County has not defaulted on any of its priar undertakings for
ongoing disclosure.
Section 16. Severabilitv. If any one or more of the covenants and agreements
provided in this resolution to be performed on the part of the County shall be declared by any
court of competent jurisdiction to be contrary to law, then such covenant or covenants,
agreement or agreements, shall be null and void and shall be deemed separable from the
remaining covenants and agreements of this resolution and shall in no way affect the validity of
the other provisions of this resolution or of the Bonds,
°26- P:�20287_CMVN20287_7WX 2/26/2008
ADOPTED by the Board of County Commissioners of Grant County, Washington, at a
regular meeting thereaf held this 27th day of February, 2008.
BOARD OF COUNTY COMMISSIONERS:
,
Richard B. Stevens, Chair
�.�-1�- �%c,'�4--e eX
Cindy C, Carter, Vice-Chair
LeRoy . Allison, ember
-2�%- P:�20287�CMW1202$7_7WX 2/26/2008
CERTIFICATE
I, the undersigned, Clerk of the Board of County Commissioners of Grant County,
Washington (herein called the "Board") and keeper of the records of the County, DO HEREBY
CERTIFY:
1. That the attached resolution is a true and correct copy of Resolution
No. 08-012-CC of the County (herein called the "Resolution"), as finally passed at a regular
meeting of the Board held on the 27th day of February, 2008, and duly recorded in my office.
2, That said meeting was duly corivened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that
quorum of the Board was present throughout the meeting and a legally sufficient number of
members of the Board voted in the proper manner for the adoption of said Resolution; that all
other requirements and proceedings incident to the proper adoption of said Resolutzon have been
duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this
certificate.
IN WITNESS WHEIZEOF, I have hereunto set my hand this 27th day of February, 2008.
�������
Clerk of t Boar
P:120287_CMVN20287 7WX 2/26/2008