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HomeMy WebLinkAboutResolution No. 4712 RESOLUTION NO. 4712 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE BY THE CITY OF EUGENE, ACTING BY AND THROUGH THE EUGENE WATER AND ELECTRIC BOARD, OF WATER UTILITY SYSTEM REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $11,000,000 AND DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES The City Council (the "Council") of the City of Eugene (the "City") finds that: A. It is in the best interest of the City, acting by and through the Eugene Water & Electric Board ("EWEB"), to raise funds by issuing revenue bonds (the "Bonds") for (i) the development, construction and improvement of a ground water backup supply system (the "Confluence Wellfield Project") as part of a long-term water supply plan approved by EWEB to improve and expand the water utility system of the City (the "Water Utility System"), (ii) to fund any necessary reserves for the Bonds, and (iii) to pay the costs of issuance of the Bonds including any credit enhancement for the Bonds; B. ORS ~288.805 to ~288.945, commonly known as the Uniform Revenue Bond 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 the City, acting by and through EWEB, owns and operates the Water Utility System; C. The cost of the Confluence Wellfield Project, the issuance costs of the Bonds, including any credit enhancement, and the cost of funding of any necessary reserves for the Bonds, is estimated not to exceed $11,000,000; D. On February 19, 2002, EWEB adopted a resolution requesting that the City authorize the issuance of the Bonds and publish notice in accordance with the Uniform Revenue Bond Act; and E. The City, including EWEB, anticipates incurring expenditures ("Expenditures") to finance the costs of the Confluence Wellfield Project and wish to declare their official intent to reimburse themselves for the Expenditures from the proceeds of the Bonds. To the extent that the Expenditures and the use of proceeds of Bonds may qualify under federal tax law and regulations, the City and EWEB intend for the interest on the Bonds to be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended. 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. Bonds Authorized: Provisions for Issuance and Sale of Bonds. Based on the above findings, the Council hereby authorizes EWEB to issue the Bonds in one or more Resolution 1 series in an aggregate principal amount not to exceed $11,000,000 to provide funds for the Confluence Wellfield Project, to fund any necessary reserves and to pay the costs of issuance. The terms and conditions prescribed by the City Council are as follows: (a) The Bonds shall: (i) mature not later than thirty (30) years from the date of issuance thereof; (ii) be sold at par or with a net original issue discount/premium that does not exceed 5 percent of the aggregate principal amount thereof; (iii) have an effective interest rate of not to exceed 9 percent per annum; and (iv) not exceed $11,000,000 in total aggregate principal amount; (b) Pursuant to ORS ~288.825(4)(a) ORS ~288.520(4) ORS ~288.540 and ORS ~288.545, EWEB, or any individual designated by EWEB, shall determine the manner of disbursement of proceeds of the Bonds, the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a 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 Council at this time; (c) The Bonds shall include a statement on their face to the effect: (1) 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 Water Utility System operated by EWEB, or any portion thereof, or from any other monies lawfully available therefor and pledged to the payment thereof; and (2) that the holders thereof may look for repayment only to the revenues of the Water Utility System which are pledged to 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; and (d) Prior to the issuance of the Bonds, EWEB shall (1) prepare a plan showing that EWEB's estimated Water Utility System revenues are sufficient to pay the estimated debt service on the Bonds, (2) adopt a bond resolution and provide a copy of such resolution to the City and (3) 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 and the Charter of the City of Eugene, and this resolution. Section 2. Publication of Notice. No Bonds may be sold, and no purchase agreement for such Bonds may be executed, for at least 60 days following publication of the Notice of Revenue Bond Authorization (the "Notice"), such notice being in substantially the form as attached to this resolution as Exhibit A. The City, acting by and through EWEB, shall cause the Resolution 2 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. If petitions for an election, containing the 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 bonds in an amount not to exceed $11,000,000 shall be placed on the ballot at the next legally available election date. If such petitions are received, no Bonds may be issued or sold until the question of whether to issue such Bonds is approved by a majority of electors living within the boundaries of the City who vote on that question. Any such petitions will be subject to ORS ~288.815 and ~~2.970-2.992 of The Eugene Code, 1971. Section 3. Bonds to be sold bv Public Competitive Bid. The Bonds shall be sold by EWEB in one or more series by public competitive bid in the manner prescribed by ORS ~288.875 to ORS ~288.915. EWEB, or any individual designated by EWEB, is directed to publish notice of the sale in accordance with ORS ~288.875 to ORS ~288.915 and determine the time, date and place of the sale. Section 4. 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 payment thereof pursuant to ORS ~288.825 and in accordance with Section 1 hereof. Section 5. Reporting. EWEB shall submit to the City by May 1 of each year the following annual reports commencing after the first sale of Bonds or other evidences of indebtedness and each year thereafter until the Bonds have been paid and retired: (a) a report on the funds for the 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 EWEB's yearly audit report, EWEB may comply with this section by transmitting a copy of its yearly audit report to the City. Section 6. Appointment of Professionals. EWEB is authorized to appoint a bond counsel a financial advisor, a registrar and paying agent and any other agent EWEB deter-mines in necessary or convenient to accomplish the issuance and sale of the Bonds. Section 7. Official Statement. Upon completion of the requirements of Section 2 hereof, EWEB or any individual designated by EWEB is authorized to prepare and distribute a Resolution 3 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 and/or Fitch Ratings, if required. Section 8. Declaration of Intent to Reimburse. The City hereby declares its official intent to reimburse itself or EWEB with proceeds from the Bonds for any of the Expenditures incurred prior to the issuance of the Bonds. Section 9. its adoption. Effective Date. This Resolution shall become effective immediately upon The foregoing Resolution adopted by the City Council this 8th day of April, 2002. $"~~/ Z~ r City Recorder Resolution 4 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. ~ on April 8, 2002, 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 provide funds for improvements to the Water Utility System operated by EWEB, including the development, construction and improvement of a ground water backup supply system (the "Confluence Wellfield Project") and to fund any necessary reserves and pay the costs of issuance of the Bonds including any credit enhancement. Subject to certain parameters, EWEB may establish 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 $11,000,000. Bond principal and interest are expected to be paid from EWEB's Water Utility System revenues. 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 5 percent of the City's qualified electors, are filed at the Office of the City Recorder on or before Jf,t/l e It , 2002 (the 61 st day after the date of publication of this notice), the question of issuing $11,000,000 of 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 ~~2.970-2.992 of The Eugene Code, 1971. The Office of the City Recorder is located at 777 Pearl Street, Room 105, Eugene, Oregon 97401. Information on procedures for filing petitions may also be obtained at such address or by telephone at (541) 682-5042. 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 Bonds Act (ORS ~288.805 to ~288.945); this notice is published pursuant to ORS ~288.815(6). BY ORDER OF THE COUNCIL: April 8, 2002. Jk&~ J. ~~~ KATHLEEN A. FIELAND Resolution 5