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HomeMy WebLinkAboutResolution No. 4936 c~ COUNCIL RESOLUTION NO. 4936 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF ELECTRIC UTILITY SYSTEM REVENUE REFUNDING BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED FORTY- SIX MILLION DOLLARS ($46,000,000) FOR THE PURPOSES OF REFINANCING IMPROVEMENTS TO THE ELECTRIC UTILITY SYSTEM AND PROVIDING FOR RELATED MATTERS PASSED: 7:0 REJECTED: OPPOSED: ABSENT: Poling RECUSED: CONSIDERED: April 14, 2008 RESOLUTION NO. 4936 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF ELECTRIC UTILITY SYSTEM REVENUE REFUNDING BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED FORTY-SIX MILLION DOLLARS ($46,000,000) FOR THE PURPOSES OF REFINANCING IMPROVEMENTS TO THE ELECTRIC UTILITY SYSTEM AND PROVIDING FOR RELATED MATTERS The City Council of the City of Eugene finds that: A. ~46 of Chapter 783 Oregon Laws 2007 (containing provisions correlative to those repealed by Chapter 783, including those previously known as the Uniform Revenue Bond Act ("URBA")), authorizes the City to issue bonds payable solely from revenues generated by facilities, projects, utilities or systems owned or operated by the City. The City, acting by and through the Eugene Water & Electric Board ("EWEB"), owns and operates an electric utility system and related facilities and systems. 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. On May 18, 1993, the electors of the City of Eugene authorized issuance of up to $150,000,000 of electric utility system revenue bonds. Subsequently, the City Council adopted Resolution No. 4555 authorizing the issuance of electric utility system revenue bonds. Pursuant to that authorization, the City, acting by and through EWEB, issued the City of Eugene, Oregon, Electric Utility System Revenue Bonds, Series 1998 (the "1998 Bonds"), which 1998 Bonds will be outstanding in the principal amount of $32,210,000 as of August 1,2008. E. On May 18, 1993, the electors of the City of Eugene authorized issuance of up to $150,000,000 of electric utility system revenue bonds. Subsequently, the City Council adopted Resolution No. 4571 authorizing the issuance of electric utility system revenue bonds. Pursuant to that authorization, the City, acting by and through EWEB, issued the City of Eugene, Oregon, Electric Utility System Revenue Bonds, Series 1998A (Taxable) (the "Taxable 1998A Bonds"), which Taxable 1998A Bonds will be outstanding in the principal amount of$9,565,000 as of August 1, 2008. Resolution - 1 F. EWEB has determined that substantial present value savings may be achieved by issuing refunding bonds for the purpose of refunding and defeasing the outstanding 1998 Bonds and Taxable 1998A Bonds, which may be called and redeemed as of August 1, 2008, without premium (the "Refunded 1998 Bonds"). G. EWEB has requested by resolution that the City Council adopt this Resolution in part to set the terms for the issuance of refunding bonds (the "Bonds") in the aggregate principal amount of not to exceed $46,000,000, and ~54 of Chapter 783 Oregon Laws 2007 (previously ORS 288.592) authorizes the issuance of the Bonds. H. The 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 ~46 of Chapter 783 Oregon Laws 2007 and the resolutions to be adopted by EWEB pursuant to this Resolution. I. 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 Bonds authorized by this Resolution. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, A MUNICIPAL CORPORATION OF THE STATE OF OREGON AS FOLLOWS: Section 1. Authorization of Bonds; Purpose of Issue. Based on the above findings, the City Council hereby authorizes EWEB, on behalf of the City, to issue and sell the Bonds designated as the "City of Eugene, Oregon Electric Utility System Revenue Refunding Bonds," in one or more series, in the aggregate principal amount of not to exceed $46,000,000, for the purpose of refunding and defeasing the Refunded 1998 Bonds, funding any required reserves and costs of issuance (including obtaining any credit enhancement) and paying other costs related to the Bonds. Section 2. Conditions of Issuance and Sale. The City Council hereby prescribes that: (a) The Bonds of each series shall: (i) mature not later than thirty (30) years from the date of issuance of the series; (ii) be sold through public competitive sale and awarded to the bidder offering the most favorable terms to EWEB, on behalf of the City, or sold pursuant to negotiation at par or with a net original issue discount or premium that does not exceed seven percent (70/0) of the aggregate principal amount thereof; and (iii) have an effective interest rate of not to exceed seven percent (7%) per annum; and (b) The proceeds of the Bonds shall be used only for the purposes above described. Section 3. Delegation of Authority for Terms of Bonds; Provisions for Issuance. Pursuant to ~~48-49 of Chapter 783 Oregon Laws 2007, EWEB, or any individual designated by EWEB, is hereby authorized and directed to determine, with respect to the Bonds, the form of bond and series designation, the manner of disbursement of proceeds of the bonds, the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a 2 10862109.5 variable or adjustable interest rate, denominations, form and authorized signatory and other terms and conditions of the Bonds because the same cannot be determined by the City Council at this time. Prior to the issuance of any Bonds, EWEB shall: (i) prepare a plan showing that the estimated Electric Utility System revenues are sufficient to pay the estimated debt service on the Bonds; (ii) adopt a bond resolution and provide a copy of such resolution to the City; and (iii) provide to the City a resolution determining that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of the Bonds, exist, have happened and have been performed in due time, form and manner as required by the Constitution and statutes of the State of Oregon, the Charter of the City of Eugene and this Resolution. Section 4. face to the effect: Statement on Form of Bond. All Bonds shall include a statement on their (a) That they do not in any manner constitute a general obligation of EWEB or of the City, or create a charge upon the tax revenues of the City, or upon any other revenues or property of the City, or property of EWEB, but are charges upon and are payable solely from the revenues of the Electric Utility System operated by EWEB, or any portion thereof, pledged to the payment thereof; and (b) That the holders thereof may look for repayment only to the revenues of the Electric Utility System which are pledged for the payment thereof, and may not directly or indirectly be paid or compensated through the property of the City, or EWEB, or by or through the taxing power of the City. Section 5. Bonds Payable Solely from Revenues. The Bonds shall not be general obligations of the City, nor a charge upon its tax revenues, but shall be payable solely from the revenues and funds which EWEB pledges to the payment thereof pursuant to ~46 of Chapter 783 Oregon Laws 2007, any applicable URBA authorizations and in accordance with this Resolution. Section 6. Bonds Reporting. EWEB shall submit to the City by May 1 of each year the following annual reports commencing after the first sale of any Bonds or other evidences of indebtedness hereunder and each year thereafter until the Bonds have been paid and retired: (a) A report on the funds for each series of Bonds describing the funds established, the amounts in each fund, expenditure from each fund, the manner in which the monies in each fund have been invested, the income from such investments and the application of such income; and (b) A report on Bond payments describing amounts paid and amounts scheduled to be paid and the source of such payments. If the contents of the reports required by subsections (a) and (b) above are included in the yearly audit report of EWEB, then EWEB may comply with this Section 6 by transmitting a copy of its yearly audit report to the City. Section 7. Appointment of Professionals. EWEB is authorized to appoint bond counsel, disclosure counsel, financial advisors, a registrar and paying agent and any other 3 10862109.5 professional assistance that EWEB determines is necessary or convenient to accomplish the issuance and sale of any or all of the Bonds. Section 8. Official Statement Sale Documents. EWEB or any party designated by EWEB is authorized to prepare and distribute or direct the preparation and distribution of one or more preliminary official statement(s) or other disclosure document(s) for any of the Bonds or in connection with a preliminary official statement or other disclosure document for any other bonds, as determined to be necessary by EWEB, to obtain bond insurance or other credit enhancement or commitments therefor, if required, to obtain a rating on any or all of the Bonds from Moody's Investors Service, Inc., Standard & Poor's and/or Fitch Ratings, if required, and to issue and publish such notices of sale of the Bonds as may be necessary or required to accomplish the sale of the Bonds in accordance with this Resolution. Section 9. Election to Issue Bonds under URBA. Pursuant to Oregon Administrative Rule 1 70-061-0200 which implements the provisions of Chapter 783 Oregon Laws 2007, EWEB, on behalf of the City, may elect in writing to issue the Bonds under the URBA provisions, without regard to the provisions of Chapter 783 Oregon Laws 2007, upon satisfaction of the requirements set forth in such Oregon Administrative Rule. If the Bonds are issued under the URBA provisions, all references to the provisions of Chapter 783 Oregon Laws 2007 contained herein shall be deemed to refer to such applicable statutes of similar purpose contained in URBA. Section 10. Effective Date of Resolution. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted by the City Council this 14th day of April, 2008. V\!W-~,~ City Recorder 4 10862109.5