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HomeMy WebLinkAboutResolution No. 4545 RESOLUTION No.lf~4-5' A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE BY THE CITY OF EUGENE, OREGON, ACTING BY AND THROUGH THE EUGENE WATER & ELECTRIC BOARD, OF REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $15,000,000, DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES, PROVIDING FOR PUBLICATION OF NOTICE, AND RELATED MATTERS. The City Council (the "Council") of the City of Eugene, a municipal corporation of the State of Oregon (the "City"), finds: A. That it is in the best interest of the City, acting by and through the Eugene Water & Electric Board ("EWEB "), to provide funds for the development, construction, equipping and improvement of Phase 1 of EWEB' s electric system fiber optic high-speed broadband telecommunications system (the "Project"); B. The City is authorized, acting by and through EWEB, to finance the Project by issuing revenue bonds pursuant to the authority of ORS 288.805 to 288.945, commonly known as the Uniform Revenue Bond Act (the "Act"); C. The cost of the Project, including bond issuance costs and debt service reserves, is estimated not to exceed $15,000,000; D. The City estimates that bonds will be issued in one or more series in an aggregate principal amount not to exceed $15,000,000. The bonds will not be general obligations of the City, nor a charge upon its tax revenues, but will be payable solely from the revenues which EWEB pledges to payment of the bonds; E. EWEB shall cause to be prepared a plan showing that EWEB's estimated net revenues of the telecommunications system fund or Electric Utility System revenues are sufficient to pay the estimated debt service under the revenue bond issue authorized by this resolution; and F. The City and EWEB anticipate incurring expenditures ("Expenditures ") to finance the costs of the Project and wish to declare their official intent to reimburse themselves for the Expenditures made on the Project from the proceeds of the revenue bonds. The interest on the bonds will be excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"). 1 - Resolution No. IDr CWC\cwc7637.res NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: SECTION l' REVENUE BONDS AUTHORIZED 1. The Council hereby authorizes EWEB to issue the City's revenue bonds in one or more series in an aggregate principal amount not to exceed $15,000,000. Prior to selling each series of bonds, EWEB shall adopt a bond resolution and provide to the City Manager a copy of such bond resolution. Pursuant to ORS 288.825(4)(a) and ORS 288.520(4), EWEB or any individual designated by EWEB's Board may determine the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a variable or adjustable interest rate, denominations and other terms and conditions of the bonds because the same cannot be determined by the Council at this time; provided, however, without the approval of the Council, the effective rate of interest on each series of bonds shall not exceed 14 percent per annum, each series of bonds shall mature not later than 30 years from the date of issuance of such series of bonds, and the discount or premium on the bonds may not exceed 5 percent of the aggregate principal amount thereof. 2. Upon completion of the actions stated in Section 2 below pursuant to ORS 288.815, EWEB or any individual designated by EWEB' s Board is authorized to prepare and distribute a preliminary official statement or other disclosure document for the bonds; to obtain bond insurance or other credit enhancement, if required; to obtain a rating on the bonds from Moody's Investors Service, Inc., Standard & Poor's Ratings Services and/or Fitch Investors Service, Inc., if required; to select a Trustee, Registrar or Paying Agent for the bonds; and to determine any other terms, conditions or covenants regarding the bonds, or the Project which are necessary or desirable to effect the sale of the bonds. SECTION 2' NOTICE; PROCEDURE 1. No bonds of the $15,000,000 issue may be sold, and no purchase agreement for such amount of bonds may be executed, for at least 60 days following publication of the Notice of Revenue Bond 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 the City, acting by and through EWEB, shall cause the Notice to be published in The Register-Guard, Eugene, Oregon, a newspaper of general circulation within the boundaries of the City, in the same manner as are other public notices of the City. 2. If petitions for an election, containing valid signatures of not less than five percent (5 % ) of the City's qualified electors, are received within the time indicated in the Notice, the question of issuing such bonds in an amount not to exceed $15,000,000 shall be placed on the ballot at the next legally available election date. If such petitions are received, no 2 - Resolution No. tjsjr CWC\cwc7637.res such amount of bonds may be sold until the question of whether to issue such Bonds is approved by a majority of the electors living within the boundaries of the City who vote on that question. Any such petitions will be subject to ORS 288.815 and Sections 2.970- 2.992 of the Eugene Code, 1971. SECTION 3' DECLARING INTENT TO REIMBURSE The City hereby declares its official intent to reimburse itself or EWEB with bond proceeds for any of the Expenditures incurred by it prior tq the issuance of the bonds. SECTION 4' BONDS PAY ABLE 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 which EWEB pledges to payment of the bonds pursuant to ORS 288.825(1) and the bond resolutions to be adopted by EWEB pursuant to Section 1 of this resolution. The foregoing Resolution adopted on the 24th day of November, 1997. ~- f IJ-y City Recorder 3 - Resolution No. tJrJ..r CWC\cwc7637.res EXHIBIT "A" NOTICE OF REVENUE BOND AUTHORIZATION NOTICE IS HEREBY GIVEN that the Council of the City of Eugene, Oregon (the "City"), adopted Resolution No. 'i)l(S-on November 24, 1997, authorizing the issuance of the City's revenue bonds acting by and through the Eugene Water & Electric Board ("EWEB"). The bonds will be issued in one or more series to finance the acquisition of real and personal property, to develop, construct, equip and improve EWEB' s electric utility telecommunications system, and all equipment and appurtenances necessary, useful or convenient thereto (collectively, the "Project") and to fund any necessary reserves and costs of issuance. Subject to certain parameters, EWEB may establish all terms, conditions and covenants regarding the bonds and the revenues which are necessary or desirable to effect the sale of the bonds. The City estimates that the bonds will be issued in an aggregate principal amount not to exceed $15,000,000. Bond principal and interest are expected to be paid from EWEB's telecommunications system funds or funds from EWEB's Electric Utility System. The bonds will not be general obligations of the City, nor a charge upon its tax revenues, but will be payable solely from the revenues which EWEB pledges to the payment of the bonds. If written petitions, signed by not less than five percent (5%) of the City's qualified electors, are filed at the Office of the City Recorder on or before.L."...." 2. g, 1998 (the 61st day after the date of publication of the notice), the question of issuing $15,000,000 of the revenue bonds shall be placed on the ballot at the next legally available election date. Any such petition shall be subject to ORS 288.815 and Sections 2.970-2.992 of the Eugene Code, 1971. The Office of the City Recorder is located at 860 W. Park Avenue, Suite 300, Eugene, Oregon 97401. Information on procedures for filing petitions may also be obtained at such address or by telephone at (541) 682-5683. The resolution authorizing the bonds is available for inspection at the Office of the City Recorder. The bonds will be issued and sold under the Uniform Revenue Bond Act (ORS 288.805 to 288.945); this Notice is published pursuant to ORS 288.815(6). BY ORDER OF THE COUNCIL: NovemberM, 1997. !l' - pi #7 WARREN WONG CITY RECORDER 4 - Resolution No. ':l.S:.!:JJ./ CWC\cwc7637.res . -; ,:;'f :: J ..,-~ ~} ~ o o ~ r) FM. NO. 108 3/97 -1i ,- .,.J P~~~Ckc1M~ GUARD PUBLISHING COMPANY P. O. BOX 10188 PHONE (541) 485-1234 EUGENE, OREGON 97440 NL:~~~ 213 9 3 legal Notice Advertising . o Tearsheet Notice . EWEB KRISTA HINCE PO BOX 10148 EUGENE OR 97440 . o Duplicate Affidavit . . . AFFIDAVIT OF PUBLICATION STATE OF OREGON, ) COU NTY OF LAN E, ) 55. KELLY REDFEARN I, , being first duly affirmed, depose and say that I am the Advertising Manager, or his principal derk, of the Eugene Register-Guard, a newspaper of general circulation as defined in ORS 193.010 and 193.020; published at Eugene in the aforesaid county and state; that the LEGAL NOTICE , a printed copy of which is. hereto annexed, was published in the entire issue of said newspaper for ONE successive and consecutive DAY in the following issues: ~. ;.... ....: -.. . . . OffiCIAL SEAL I DEBBIE BUZALSKY NOTAR~ PUBlI~o~~~~Dtf2 ~~m&SAUG.a 1. ;_. ';t', ! ...., find .. ,. ~'.' ie::I.: . EWElL.. ~nns: condl_ and _nls regord- I inSt!f:le ~bOnds~"rvf. the;;revenues .mJM;_~.e The City estimates ,th~ sale of Ith"'~"rMilI;;.be,.J...tued\Jn~an " 'ag"g~ittl'pnilClpal;~nt noHo exceed $15,000,000. Bond prlnci- ,pal and InU~rest are expected to be lpaid from EWE.. S's ,telecommuni- cations .- funds"or'funds. -from i EWES's Electric Utility System. The bonQs will not be general obli- I gallons ~f the;Clty.'nor 8 charge upon Its tax revenues; but wlll be I payable solely from the revenues which EWES pledges to the pay- ment of the bonds. . : l' \"ffltleO, '.. . ....etItions. ",Jlgl'l.. ed. ..bY nQt Jes8 th8nfiW. rcenf{5~r Of the I City's qUalifl~lectors.are filed I at.. the Office' Of theC!ty, Rec:order . on o. r before. -~. 8jwary. .r ~2~8. '.199.~! (the .-61s(Claaner:#1e dafi~Of'pUI)Ilca~ I. lion Of, ~'( .I~); ~~uestlon.of .lSsUlrig~ 5.000.000:~df'tlle JeW- , Ihue>bOhdStshiJ1 be ptai:edOQ'tf1e . ballot 8tthe :nlixt18g8lry ~Ie I election "date: ,;Any , <<ICh.~tItlon 8hall;.be'''u_~Gct;to .ORS 288.815 .and~ . 970-2;'892 :Of,the ~. ..L." ,.. ... - ..,...~, ,...., It~'IOeated8t.' . .' : Averiue, SuIte "\'300;.t;":E.iftAnA..~.,,;,O~ . n \9740'1~~':'P~~ I ._....ffP., :t~.. '... - .'.sd..may. . .~."jiN.'..''.;.bv''... .. ~'(~1)"~~<l:!' -.biJ.urs48~....' l~.. OO.".~ ......:. 'A..l. ~e~ " B!" ,~~} ~~...' .F.ti~~ '. ,:(f" . 'ue _ \IJ1Q"r ., n. .., :, _:lf~~{~~ .P(Jbllsh~ ~.uaottq..:Oas2. 8~MU!.(6):.. ;'.'." ,p'YOR.t)~~f TftS'vOU~CIL: Noverribet,-24:~997l)j1.i1,~31;;i-i;:1; ~. .~.. .... '. .~- NOVEMBER 28. 1997 Subscribed and affirmed to before m th. 12/1/97 ~ YX). ~~a ~(~ ot r Pu C 0 Oregon