Item 2C: EWEB Short-Term Borrowing

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ATTACHMENT A RESOLUTION NO. ____ A RESOLUTION AUTHORIZING AN ELECTRIC UTILITY SYSTEM LINE OF CREDIT AGREEMENT IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED FORTY-SIX MILLION THREE HUNDRED FIFTY-FIVE THOUSAND DOLLARS ($46,355,000) FOR THE PURPOSE OF FINANCING AND REFINANCING THE HARVEST WIND PROJECT AND PROVIDING FOR RELATED MATTERS The City Council of the City of Eugene finds that: A. EWEB has requested by resolution that the City Council adopt this Resolution in part to set the terms for an electric utility system line of credit agreement in the maximum principal amount of not to exceed $46,355,000 (the “Harvest Wind Project Interim Financing”), for the purpose of financing and refinancing the acquisition of an interest in and construction of new capital facilities in the State of Washington, to be known as the Harvest Wind Project (the “Project”), whether through an output prepayment contract, acquisition of an undivided interest in the Project or otherwise, to fund necessary reserves, and to pay the costs of issuance of the Harvest Wind Project Interim Financing. B. On June 16, 1986, EWEB adopted a resolution authorizing and providing for the issuance, from time to time, of City of Eugene, Oregon Electric Utility System Revenue Bonds to be equally and ratably secured by the pledge of revenues, funds and accounts thereunder (as amended and supplemented, the “Bond Resolution”). C. The Bond Resolution provides in part that the principal of, premium, if any, and interest on the bonds issued thereunder shall not be payable from any funds of the City nor constitute a general obligation of the City or create a charge upon the tax revenues or any other property or revenues of the City. D. The Bond Resolution does not prohibit, and EWEB has by resolution undertaken to authorize and provide for, the issuance, from time to time, of bonds, notes, certificates, warrants or other evidences of indebtedness for any corporate use or purpose relating to the Electric Utility System payable as to principal and interest from the Revenues subject and subordinate to the deposits and credits required to be made to the Bond Resolution, or from securing such bonds, notes, certificates, warrants or other evidences of indebtedness and the payment thereof by a lien and pledge on the Revenues junior and inferior to the lien and pledge on the Revenues in the Bond Resolution created for the payment and security of the bonds issued under the Bond Resolution. E. EWEB has by resolution undertaken to provide that the principal of, premium, if any, and interest on such subordinate lien obligations shall not be payable from any funds of the City nor constitute a general obligation of the City or create a charge upon the tax revenues or any other property or revenues of the City. F. Oregon Revised Statutes 287A.180(1)(b) authorizes a public body to issue revenue bonds for the purposes of providing interim financing for capital projects to be undertaken by