12/14/1983 Meeting - Laserfiche WebLink

Home Browse Search

I Councilor Ball said he was familiar with the general approval of the project and the specific rerservations that some of the property owners have had. He said ~ the process outlined by Mr. Teitzel and the flexibility that staff still had in the design was acceptable and was adequate in addressing the concerns of the property owners. VIII. REVENUE BOND FINANCING AGREEMENT (resolution, background information distributed) City Manager Micheal Gleason introduced the agenda item. Don Vanderzanden of the Eugene Water & Electric Board presented the staff report, reviewing the December 12 memorandum from Assistant City Manager Dave Whitlow to the City Council. He stated that the ordinance approved by the voters in September 1983 authorized the issuance of up to $30 million of energy conservation bonds by EWEB. He explained that Section 1 of Ordinance 19172 required the council to approve the Bonneville Power Administration's agreement to pay the principal and interest on any bonds issued. He said that BPA offered such an agreement to EWEB on October 18, 1983. He said a draft copy of the ordinance required prior to the issuance of any bonds by EWEB was submitted to City staff for their review. He asked the council to approve the agreement with the BPA, adding that EWEB would seek the council.s approval of the bond ordinance at a later meeting. He said he expected to begin issuing the bonds during the months of February or March 1984. Mr. Vanderzanden read Section 5(A) of the BPA agreement to ensure the unconditional promise of BPA to pay the principle and interest on the bonds. Based on the agreement, he recommended that the council approve the resolution. e In response to a question on the recent doubts about the solvency of the BPA, Mr. Vanderzanden said that no bonds would be issued if there was any question of BPA solvency. Mayor Keller said he assumed that there might be some question on whether the BPA would be resolved of any liability if solvency was a problem. Mr. Vanderzanden said that the BPA felt it had the right under the Regional Act to make such a commitment and that the EWEB ruling seeking authority from the Internal Revenue Service to issue bonds also stipulated that point. He said concurrence from the IRS was expected. He said that House Bill 4170, which was proposed just prior to the adjournment of the 1983 Congressional Session, would preclude this particular form of a guarantee. He said the bill would preclude EWEB from issuing bonds with a BPA guarantee but that the voter authorization mandated such a guarantee. He said the assistance of Senators Packwood and Hatfield and Congressman Weaver had been solicited, adding that Senator Dole had sponsored a contradictory bill just prior to the adjournment. He expected that a compromise committee would be established with the reconvening of the 1984 session and EWEB anticipated obtaining authorization to issue the bonds. Res. No. 3823--A resolution approving the Bonneville Power Administration Residential Weatherization Revenue Bond Financing Agreement. Ms. Schue moved, seconded by Mr. Obie, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. . MINUTES--Eugene City Council December 14, 1983 Page 13