HomeMy WebLinkAboutResolution No. 4688
RESOLUTION NO. 4688
A RESOLUTION APPROVING 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 $60,000,000 TO PROVIDE FUNDS FOR OBLIGATIONS
RELATED TO PENSION BENEFITS, AUTHORIZING THE FIRST SALE
OF SUCH BONDS IN AN AMOUNT NOT TO EXCEED $30,000,000 AND
RELATED MATTERS
The City Council (the "Council") of the City of Eugene, a municipal corporation of the State
of Oregon (the "City"), finds that:
A. The Eugene Water & Electric Board ("EWEB") maintains and participates in various
pension plans including as a participating employer in the Oregon Public Employees
Retirement System ("OPERS"), an agent multiple-employer public employee
retirement system established under Oregon Revised Statutes 238.600, with respect
to which EWEB has unfunded actuarial accrued liability as reflected from time to
time in the audited financial statements and other records ofEWEB and OPERS, as
the case may be (collectively, the "Unfunded Obligations");
B. The enactment during the 2001 Regular Session of the Oregon Legislative Assembly
of Senate Bill 134 ("S.B. 134") as emergency legislation effective upon passage, has
amended Oregon Revised Statutes chapter 238 to permit the financing of the
Unfunded Obligations by governmental units through the issuance of revenue bonds
authorized by charter or pursuant to ORS 288.805 to 288.945, commonly known as
the Uniform Revenue Bond Act (the "Act");
C. It is in the best interest of the City, acting by and through the Eugene Water &
Electric Board, to provide for the financing of the Unfunded Obligations;
D. (1) The Act authorizes the City to issue bonds payable solely from revenues
generated by facilities, projects, utilities or systems owned or operated by the City;
and (2) the City, acting by and through EWEB, owns and operates an electric utility
and related facilities and systems;
E. The Unfunded Obligations are estimated based on actuarial calculations to be
approximately $60,000,000;
F. The City estimates that bonds will be issued from time to time in one or more series
in an aggregate principal amount not to exceed $60,000,000. The first series of such
bonds would be in an aggregate amount not to exceed $30,000,000. The bonds will
not be general obligations of the City, nor a charge upon its tax revenues, but will be
payable solely from revenues of the Electric Utility System which EWEB pledges to
the payment of the bonds;
G. EWEB has retained the services of Capital Advisors LLC, an independent financial
adviser, to recommend the manner of sale of the first series of the bonds, and Capital
Advisors LLC recommends that the first series of the bonds be sold at a private
negotiated sale in order to achieve maximum flexibility and efficiency in structuring,
timing and pricing the issue;
H. Based on the expert advice of EWEB' s independent financial adviser and provided
that the financial adviser makes an evaluation of the terms and conditions of the
proposed sale; the pricing of the proposed sale; any other relevant aspects of the sale
pursuant to ORS 288.845, EWEB proposes that the first series of bonds be sold at a
private negotiated sale; and
I. EWEB shall cause to be prepared a plan showing that EWEB' s estimated Electric
Utility System revenues are sufficient to pay the estimated debt service under the
revenue bonds.
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 1: REVENUE BONDS APPROVED: FIRST SERIES OF SUCH BONDS
AUTHORIZED
1. The Council hereby authorizes EWEB to issue the City's revenue bonds payable
from EWEB' s revenues in one or more series in an aggregate principal amount not
to exceed $60,000,000, for the purpose of financing the costs of the Unfunded
Obligations, and to fund any required reserves and costs of issuance. Pursuant to
ORS 288.825(4)(a) and ORS 288.520(4), EWEB or any individual designated by
EWEB 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 further
authorization by the Council, the effective rate of interest on each series of bonds
shall not exceed 10 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 10 percent of the aggregate principal amount
thereof.
2. The first series of bonds, in an amount not to exceed $30,000,000, is authorized to
be sold. The bonds are authorized to be sold at a private negotiated sale based on the
expert advice ofEWEB' s financial adviser and provided that the required evaluation
is made. Prior to selling the first series of bonds, EWEB shall cause to be prepared
a plan showing that EWEB' s estimated Electric Utility System revenues are
sufficient to pay the estimated debt service of such first series of bonds.
3. Subsequent series of bonds sold after the first series of bonds shall be sold from time
to time in such manner and by such method as shall be specified pursuant to
subsequent resolutions of the Council which shall be adopted as a precondition to
each such subsequent sale. Prior to selling each subsequent series of bonds, and in
addition to seeking the prior approval of the Council of the manner and method of
each such sale, EWEB shall adopt an authorizing resolution and provide to the City
Manager a copy of such resolution and shall cause to be prepared a plan showing that
EWEB's estimated Electric Utility System revenues are sufficient to pay the
estimated debt service under such series of bonds.
4. Pursuant to the provisions of S.B. 134, the provisions of ORS 288.815 are
inapplicable to the bonds; accordingly, EWEB or any individual designated by
EWEB 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 of the bonds from Moody's Investors
Service, Inc., Standard & Poor's Credit Markets Services and/or Fitch IBCA, Duff
& Phelps, 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 Unfunded Obligations which are necessary or desirable to effect the
sale of the bonds.
5. EWEB is authorized to appoint bond counsel and underwriters with respect to the
issuance and sale of the first series of bonds.
SECTION 2: 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 Electric Utility System revenues which EWEB pledges to
payment of the bonds pursuant to ORS 288.825(1) and the authorizing resolutions to be adopted by
EWEB pursuant to Section 1 of this resolution.
The foregoing Resolution adopted on the 10th day of September, 2001.
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City Recorder