Item 2E: Resolution Approving Issue of EWEB Bonds

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M. EWEB has requested by resolution that the City Council adopt this Resolution in part to set the terms for the issuance of not to exceed $4,854,280 principal amount of bonds (the “2006 Improvement Bonds”) for the principal purposes of reimbursing the Electric Utility general account for funds expended in the application process for the Carmen Smith Hydroelectric license and additional funding toward the completion of that process, and for the purchase of (the “2006 Improvement Program”), property in West Eugene for a new Operations Center which constitute Project purposes under the 2001 URBA Authorization and the 2005 URBA Authorization (the “2006 Improvement Program”), to fund necessary reserves for the 2006 Improvement Bonds and to pay the costs of issuance of the 2006 Improvement Bonds. N. It is in the best interest of the City, acting by and through EWEB, to provide funds for the principal purposes of final design work associated with relocation of certain EWEB operating functions to a new site in West Eugene, final design work for remodel of the existing downtown EWEB headquarters building and certain planning work necessary for future disposal of EWEB property located at the downtown riverfront site (the “2006 New Deleted: surplus Project”). O. The cost of the 2006 New Project, including bond issuance costs and debt service reserves, is estimated not to exceed $8,000,000. P. EWEB has requested by resolution that the City Council adopt this Resolution in part to set the terms for the issuance of not to exceed $8,000,000 principal amount of bonds (the “2006 New Project Bonds”), which bonds will not be general obligations of the City, nor a charge upon its tax revenues, but will be payable solely from revenues of the Electric Utility System which EWEB pledges to the payment of such bonds pursuant to ORS 288.825(1) and the resolutions to be adopted by EWEB pursuant to this Resolution. Q. EWEB has by resolution undertaken to cause to be prepared a plan showing that EWEB’s estimated Electric Utility System revenues are sufficient to pay the estimated debt service on the 2006 New Project Bonds authorized by this Resolution. R. The City, including EWEB, anticipates incurring expenditures (“Expenditures”) to finance the costs of the 2006 Improvement Program and the 2006 New Project and wishes to declare official intent to reimburse itself for the expenditures made on the 2006 Improvement Program and the 2006 New Project from the proceeds of the 2006 Improvement Bonds and the 2006 New Project Bonds. To the extent that the expenditures and the use of proceeds of the 2006 Improvement Bonds and the 2006 New Project Bonds may qualify under federal tax law and regulations, the City, including EWEB, intends for the interest on such bonds to be excludable from gross income for federal income tax purposes under §103 of the Internal Revenue Code of 1986, as amended (the “Code”). S. EWEB has requested by resolution that the City Council adopt this Resolution in part to authorize the publication of the Notice of Revenue Bond Authorization relating to the 2006 New Project Bonds (being the revenue bonds authorized under this Resolution which are not already authorized under the 2001 URBA Authorization or the 2005 URBA Authorization), such notice being in substantially the form attached to this Resolution as Exhibit “A” (the “Notice”). The Notice shall specify the last date on which petitions may be submitted, and