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<br />RESOLUTION NO. 4692 <br /> <br />RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED <br />SIXTY MILLION DOLLARS ($60,000,000) AGGREGATE PRINCIPAL AMOUNT OF <br />ELECTRIC UTILITY SYSTEM REVENUE BONDS AND INTERESTS THEREIN TO <br />BE SOLD TO PROVIDE FINANCING FOR ELECTRIC POWER PURCHASE COSTS <br />AND PROVIDING FOR CERTAIN DETAILS REGARDING THE SALE AND <br />DELIVERY OF SAID BONDS AND INTERESTS THEREIN <br /> <br />The City Council of the City of Eugene finds that: <br /> <br />A. The Uniform Revenue Bond Act (the "Act") authorizes the City to issue bonds payable <br />solely from revenues generated by facilities, projects, utilities or systems owned or <br />operated by the City; and the City, acting by and through the Eugene Water and Electric <br />Board ("EWEB"), owns and operates an electric utility and related facilities and systems <br />(the "Electric Utility System"); <br /> <br />B. On July 17, 2001, EWEB requested, by resolution, the City Council to authorize the <br />issuance of revenue bonds in one or more series in an aggregate principal amount not to <br />exceed $60,000,000 to provide for such stand-by funding as may be required to enable <br />EWEB to meet future increases in the cost of purchased electric power which may not be <br />fully covered by available reserves or under the rate structure in effect at the time such <br />cost increases are incurred (collectively, "Power Supply Cost Contingencies"); <br /> <br />C. On August 6,2001, the City Council adopted Resolution No. 4686 authorizing EWEB to <br />issue such revenue bonds in the total aggregate principal amount of not to exceed <br />$60,000,000 to provide funds for the Power Supply Cost Contingencies (the "Power <br />Supply Cost Contingencies Bonds" or the "Bonds"); <br /> <br />D. Notice of the City's authorization of the Bonds in an aggregate principal amount not to <br />exceed $60,000,000 was published in The Register-Guard on August 12,2001, and no <br />petition for an election questioning the issue of such Bonds was received in the 60-day <br />period following publication of such notice; <br /> <br />E. On October 16,2001, the governing body of EWEB (the "Board") adopted a resolution <br />(the "EWEB Resolution"), a copy of which is attached hereto, authorizing and providing <br />for the issuance of the Bonds and interests therein in the form of commercial paper to <br />provide a financing mechanism in the event of Power Supply Cost Contingencies; <br /> <br />F. The EWEB Resolution provides that the principal of, premium, if any, and interest on the <br />Bonds issued thereunder shall not be payable from any funds of the City nor constitute a <br />general obligation of the City or create a charge upon the tax revenues or any other <br />property or revenues of the City; <br /> <br />G. Based on the expert advice ofEWEB's independent financial adviser and provided that <br />the financial adviser makes a written evaluation of the terms and conditions of the <br />proposed sale, the pricing of the proposed sale and any other relevant aspects of the sale <br />