09/24/1990 Meeting (2) - Laserfiche WebLink

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e Ms. Schue moved, seconded by Mr. Bennett, to adopt the resolutions. Roll call vote; the motion carried unanimously, 8:0. Mayor Miller adjourned the meeting of the Eugene City Council and convened a meeting of the Urban Renewal Agency XIV. RESOLUTION--URBAN RENEWAL AGENCY RESERVE FOR CAPITAL PROJECTS Res. No. 948--A resolution authorizing the transfer of funds from the Reserve for Capital Projects to the Planning and Development Department. Ms. Schue moved, seconded by Mr. Bennett, to adopt the resolution. Roll call vote; the motion carried unanimously, 8:0. Mayor Miller adjourned the meeting of the Urban Renewal Agency and reconvened the meeting of the Eugene City Council. XV. 1990 RIVER ROAD SEWER PROJECTS INTERIM FINANCING Administrative Services Director Warren Wong explained that the resolution e under consideration would authorize the sale of bonds to provide interim financing for the River Road sewer project that is currently underway. The council authorized the sale in August, but as a result of litigation being filed, that sale was canceled. Those bonds were negotiated at a rate of 6.94 percent. Because of an increase in market rates, additional security requirements, and the pending litigation, the interest rate is expected to be between 7.3 and 8 percent, resulting in a slight increase in cost for property owners benefiting by this project. Responding to a question from Mayor Miller, City Attorney Bill Gary explained that the filing of the class action lawsuit caused bond counsel to believe that further disclosure to the purchasers of the bonds was necessary. The plaintiffs contend that the City has not given adequate attention to the unique needs of the residents of River Road/Santa Clara in developing its assessment process. Although the specific claim was not an attack on the ability of the City to issue assessment bonds, bond counsel nevertheless felt that it appeared to the bond market that additional security was required. That security will only become necessary if the court determines that the City is precluded from issuing assessment bonds and levying assessments. In Mr. Gary's opinion, that was not the relief sought by the plaintiffs and was not likely to occur. The case is scheduled for trial October 2 (the City requested that the matter be expedited). Other issues that could potentially disrupt future bond sales should also be resolved at that time. e MINUTES--Eugene City Council September 24, 1990 Page 9