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<br />e <br /> <br />e <br /> <br />e <br /> <br />Mr. Hansen moved, seconded by Ms. Ehrman, to adopt the resolu- <br />tions. <br /> <br />Answering a question from Mr. Hansen, City Engineer Bert Teitzel said there is <br />enough capacity in the main trunk south of Valley River Drive for the addi- <br />tional sewer. <br /> <br />Roll call vote; the motion carried unanimously 8:0. <br /> <br />III. EWEB REVENUE BONDS (memo, ordinance, resolution, background information <br />distributed) <br /> <br />City Manager Micheal Gleason introduced the agenda item. Finance Director <br />Warren Wong gave the staff report. He said the Eugene Water and Electric <br />Board (EWEB) Board of Directors asked the City Council to put a ballot measure <br />on the March 25 special election for a $25,000,000 bond issue supported <br />entirely by revenues from the electric utility system. If the ballot measure <br />is approved, the bonds will be issued in the name of the City of Eugene. <br />Mr. Wong said $22.1 million of the bond issue will be used for capital <br />projects listed in the EWEB Master Plan. The balance of the bond issue will <br />establish a debt service reserve and a $400,000 contingency account. <br /> <br />Mr. Wong said part of the financing proposal is to pay off outstanding EWEB <br />bonds. EWEB would then be released from restrictions in the old bonds and a <br />more flexible investment program, with possibly a higher rate of return, would <br />be permitted. He said a one-percent rate increase will be necessary to pay <br />off the bond issue, but approval of the financing proposal will minimize <br />future EWEB rate increases. He noted that some increases in Bonneville Power <br />Administration rates will be passed on to customers. <br /> <br />Mr. Wong recommended the council approve the ordinance authorizing the <br />issuance of the revenue bonds and the other ordinance and a resolution <br />referring the measure to the voters. He also recommended that EWEB submit <br />more detailed information on the capital projects to the council when EWEB is <br />ready to issue the bonds. <br /> <br />Answering a question from Mr. Rutan, Mr. Wong said the EWEB bonds will not be <br />backed by the full faith and credit of the City. However, the rating agencies <br />will consider the EWEB bonds to be City of Eugene bonds, and the rating <br />agencies will consider the City responsible if the bonds are not paid. He <br />said the City Council is the only body that put bond measures on the ballot. <br />Putting the EWEB bond measure on the ballot will not mean the City legally or <br />officially stands behind the bonds. He said approval of CB 2874 authorizes <br />the issuance of the bonds. He said the council will pass another ordinance or <br />resolution allowing EWEB to issue the bonds after the election when EWEB <br />officials have presented details of the bond issue to the council. <br /> <br />Mr. Rutan noted that the council was not being asked to evaluate the <br />proposal. <br /> <br />MINUTES--Eugene City Council <br /> <br />February 12, 1986 <br /> <br />Page 7 <br />