Item 2G: Resolution Authorizing EWEB Bonds for Roosevelt and Downtown Projects

Home Browse Search

ATTACHMENT B Eugene Water & Electric Board Revenue Bond Authorization Request Issue Statement. The Eugene Water & Electric Board requests City Council approval to issue, under provisions of the Uniform Revenue Bond Act (URBA), $8,000,000 in electric system revenue bonds to pay for design and development costs related to relocation of EWEB operations facilities to west Eugene. Purpose of Proposed Bond Authorization. The $8 million is for design for relocation of EWEB operations functions to a new site on Roosevelt Boulevard in West Eugene, design for remodel of the existing EWEB headquarters building in downtown Eugene, and preliminary planning for the downtown site. This funding proposal is described more specifically as follows (all amounts are estimated): ? $4.9 million for final design work; ? $340,000 for EWEB staff work during the design process; ? $770,000 for wetlands permitting work related to the new West Eugene site; ? $110,000 for site planning work associated with the downtown site; ? $650,000 in debt issuance costs including funding of necessary reserves; and ? $1.2 million in contingency funds. Money not spent on design can be used for related construction of the new facilities. The Roosevelt Site. The Roosevelt site, located at the southeast corner of Beltline and Roosevelt, is 46 acres in size and zoned for industrial use. The site has been used as farmland and also for lumber mill operations. Half of the site is comprised of wetlands, which EWEB plans to retain as a natural feature. Planned buildings include an operations building (set to house electric and water operations and engineering functions), warehouse, fleet operations and storage center, and fuel and wash building. Also planned is a material storage yard and employee parking. The site plan includes space for a future Administration Building. EWEB’s plans for the existing downtown site. Some remodeling is planned at EWEB’s existing HQ building to upgrade systems and accommodate rearrangement of remaining administrative and customer functions. The $110,000 for preliminary planning for the downtown site includes identifying possible lot line adjustments and easement locations, identifying applicable Metro Plan land use designations, determining possible zoning, and determining how best to meet City planning requirements. This planning work will comply with guidelines set forth in the adopted Eugene Downtown Plan. Use of URBA Process for Financing Authorization. In referring a request to the community to issue revenue bonds, the EWEB Board can have the question placed on the ballot or they can publish a “Notice of Revenue Bond Authorization” (“URBA process”) stating intent to issue debt, describing the amount, purpose, and process whereby if written petitions signed by at least 5% of city’s qualified electors are filed within 60 days after date of publication of the Notice, the question of issuing the debt will be placed on the ballot at the next available election date. After careful consideration, the Board decided to use the URBA process for several reasons: ? Use of URBA will save EWEB customers an estimated $30,000 - $50,000 cost to place measure on ballot; ? Requested amount is a relatively small part of the overall estimated cost for new facility (current estimate is $80 - $85 million) and similar in size to previous bond authorizations EWEB has obtained with URBA; ? EWEB has successfully used the URBA process in the past; and ? The Board believes customers will be supportive of the authorization request. Potential rate impact of the $8 million funding request. An $8 million bond issue would result in approximately $600,000/year in debt service (principal and interest), which equates to between 0.3% and 0.4% impact on electric rates (annual). The Board would factor that amount into 2007 budget planning and determine if other utility costs could be adjusted or if that amount would be included in a future rate action. Development Schedule for Roosevelt Project and Headquarters Building Remodel. ? Design Funding Authorization: July 2006 ? Final Design: July 2006 – September 2007 ? Construction Financing Authorization: Fall 2007 ? Construction: April 2008 – April 2010 Revised: April 25, 2006