HomeMy WebLinkAboutResolution No. 4844
RESOLUTION NO. 4844
A R-ESOLUTION AUTHORiZING THE ISSUANCE AND SALE OF WATER UTILITY
SYSTEM REVENUE BONDS IN THE AGGREGATE PPANCIPAL AMOUNT OF NOT
TO EXCEED TWENTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($22~50(L000) FOR THE PURPOSE OF ADVANCE REFUNDING OR DEFEASING
CERTAIN OUTSTANDING WATER UTILITY SYSTEM REVENUE BONDS; AND
PROVIDING FOR CERTAIN DETAILS AND RELATED MATTERS
The City Council of the City of Eugene finds that:
On September 13, 1999, the City Council adopted Resolution Nos 4601 to authorize the City
of Eugene (the "City"), acting through the Eugene Water & Electric Board ("EWEB'), to
issue water utility revenue bonds in an aggregate principal amount of not to exceed
$36,000,000, for the purpose of providing funds for the acquisition of real and personal
property, to develop, construct, equip and improve the City's water utility system (the
"Water Utility System") which is operated by EWEB, and all equipment and appurtenances
necessary, useful or convenient thereto (the "2000 Project") and on September 19, 1999,
there was published the Notice of Revenue Bond Authorization in The Register-G~ard, a
newspaper of general circulation within the geographical boundaries of the City and sixty
(60) days elapsed since the publication of such Notice of Revenue Bond Authorization and
no voters residing within the geographical boundaries of the City filed a petition with the
City asking to have the question whether to issue the water utility system revenue bonds
referred to a vote (the "1999 URBA Authorization").
Pursuant to the 1999 URBA Authorization, the City, acting by and through EWEB, issued
its City of Eugene, Oregon, Water Utility System Revenue Bonds, Series 2000, in the
orkginal aggregate principal amount of $21,405,000 (the "Series 2000 Bonds").
On April 8, 2002, the City Council adopted Resolution No. 4712 to authorize the City,
acting through EWEB, to issue water utility revenue bonds in an aggregate principal amount
of not to exceed $11,000,000, for the purpose of providing funds for the development,
construction and improvement of a ground water backup supply system (the "2002 Project")
as part of a long-term water supply plan approved by EWEB to improve and expand the
Water Utility System and on April 16, 2002, there was published the Notice of Revenue
Bond Authorization in The Register-Guard, a newspaper of general circulation within the
geographical boundaries of the City and sixty (60) days elapsed since the publication of such
Notice of Revenue Bond Authorization and no voters residing within the geographical
boundaries of the City filed a petition with the City asking to have the question whether to
issue the water utility system revenue bonds referred to a vote (the "2002 URBA
Authorization")°
Pursuant to the 2002 URBA Authorization, the City, acting by and through EWEB, issued
its City of Eugene, Oregon, Water Utility System Revenue Bonds, Series 2002, in the
original aggregate principal amount of $10,000,000 (the "Series 2002 Bonds").
ORS §288~605 to §288°695 authorize the City to issue bonds without an election to refund
outstanding bonds, including advance refrmding bonds, in order to effect a favorable
reorganization of debt and/or a net present value savings and to issue bonds to refund
revenue bonds that were previously issued in accordance with the Uniform Revenue Bond
Act without further implementation of the procedures prescribed in ORS §288.815.
The Series 2000 Bonds are callable as to principal and interest on August 1, 2010 without
premium and the Series 2002 Bonds are callable as to principal and interest on Augmst 1,
2012 without premium, and a fazeorable reorganization of debt and/or a net present value
savings may be achieved by issuing refunding bonds for the purpose of advance refunding
or defeasing all or a portion of the outstanding Series 2000 Bonds and/or the Series 2002
Bonds and thereby calling such refunded or defeased bonds on their earliest call date,
August 1,2010 or August 1, 2012, respectively.
EWEB has requested the City Council to adopt this Resolution authorizing and setting the
terms for the issuar~ce and sale of not to exceed $22,500,000 principal amount of bonds (the
~Refunding Bonds~') which proceeds, together with available bond proceeds, will provide
funds for the advance refunding, defeasance, redemption or payment of all or a portion of
the outstanding Series 2000 Bonds and/or the Sehes 2002 Bonds on August 1, 2010 or
August 1,2012, respectively, and to pay the costs of issuance of the Refunding Bonds.
ORS §288.620 requires that the Oregon State Treasurer (the %tare Treasurer") ~eview and
approve a refunding plan prior to the sale and issuance of advance refunding bonds such as
the RefUnding Bonds~
EWEB, by resolution, has undertaken to cause to be prepared a plan showing that EWEB's
estimated Water Utility System revenues are sufficient to pay the estimated debt service on
the Refunding Bonds authorized by this Resolution.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, A
MUNICIPAL COPORATION OF THE STATE OF OREGON AS FOLLOWS:
Section 1. Authorization of RefUnding Bon_d~; Pu~ose of Issue; Conditions of
][ssuan . Based on the above findings, the Council hereby authorizes EWEB, on behalf of the
City, to issue and sell "Cky of Eugene, Oregon Water Utility System Revenue Refunding Bonds,
Series 2005" (the "Refunding Bonds") in one or more series, in the aggregate principal amount
of not to exceed $22,500,000, subject to the following terms and conditions prescribed by the
City Council:
(a) The Refunding Bonds of each series shall: (i) mature not later than the last
scheduled maturity of the bonds to be refunded; (ii) be sold at par or with a net original issue
discount/premium that does not exceed one hundred and seven percent (107%) of the aggregate
principal amount thereof; (iii) have an effective interest rate of not to exceed six percent (6.00%)
per annum; and (iv) not exceed $22,500,000 in total principal amount.
(b) The proceeds of the Refunding Bonds shall be used only for the following
purposes: An amount of not to exceed $22,500,000 shall be used fbr the purpose of advance
refunding or defeasing all or a portion of the outstanding Series 2000 Bonds and/or the Series
2002 Bonds on August 1, 2010 or August 1, 2012, respectively, provided that such refunding
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will result in a favorable reorganization of debt and/or a net present value savings of at least 3%
in accordance with Oregon Administrative Rule 170-062-0000 and to pay related costs of
issuance of the Refunding Bonds.
Section 2. Delegation of Authority for Terms of Refunding Bonds; Provisions for
Iss-uance. 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, is hereby authorized and directed to
determine, with respect to the Refunding Bonds, the form of bond and series designation, the
maimer of disbursement of proceeds of the Refunding 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 Refunding Bonds because the same cannot be determined by the Council at this
time. Prior to the issuance of the Refunding Bonds, EWEB shall: (i) prepare a plan showing that
the estimated Water Utility System revenues are sufficient to pay the estimated debt service on
the Ref[mding 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
Refunding Bonds, exist, have happened and have been performed in due t/me, 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. Additionally, prior to the issuance of any Refunding Bonds, EWEB
shall comply with Section 8 of this Resolution.
Section 3~ Statement on Form of Refunding Bond. All Refunding Bonds shall
include a statement on their face to the effect:
(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 Water 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 Water Utility System which are pledged for the payment thereo£, 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 4. Refunding Bonds Payable Solely from Revenues. The Refunding
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 the 1999 URBA Authorization, the 2002 URBA Authorization, the provisions of
City Council Resolutions 4601 and 4712, ORS §288.825 and in accordance with this Resolution~
Section 5~ Refunding Bonds Reporting. EWEB shall submit to the City by May
1 of each year the following mmual reports commencing after the first sale of any Refunding
Bonds or other evidences of indebtedness hereunder and each year thereafter until the Refunding
Bonds have been paid and retired:
(a) A report on the funds for each series of Refunding Bonds describing the
funds established, the amounts in each fund, expenditure from each fund, the manner in which
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the monies in each fund have been invested, the income from such investments and the
applica:ion of such income; and
(b) A report on Refunding Bond payments describing amounts paid and
~rnounts 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 5 by
transmitting a copy of its yearly audit report to the City.
Section 6. Appointment of Professionals. EWEB is authorized to appoint bond
counsel, disclosure counsel, financial advisors, a registrar, paying agent and escrow agent and
any other professional assistance that EWEB determines is necessary or convenient to
accomplish the issuance and sale of any or all of the Refunding Bonds.
Section 7. 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
Refunding 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 Refunding Bonds from Moody's Investors Service, Inc., Standard & PooFs
and/or Fitch Ratings~ if required, and to issue and publish such notices of sale of the Refunding
Bonds as may be necessary or required to accomplish the public competitive sale of the
Refunding Bonds in accordance with this Resolution.
Section 8. _Approval of Plan of Advance Refunding and Submission to Ore ogg~
State Treasurer for Review and A_12proval. The Council hereby approves the advance refunding
plan for the advance refunding or defeasance of all or a portion of the Series 2000 Bonds and/or
the Series 2002 Bonds and the issuance of the Refunding Bonds (the "Refunding Plan~')
presented to the Council that was prepared by EWEB's independent financial advisor, Seattle
Northwest Securities Corp., in compliance with Oregon Administrative Rule 170-062-0000.
Pursuant to ORS §288.620, the Council hereby directs that the Refunding Plan be submitted to
the State Treasurer for review and approval. In accordance with ORS §288.620~ the Refunding
Bonds may not be sold until the State Treasurer has authorized or is deemed to have authorized
the sale of such Refunding Bonds.
Section 9. Effective Date of Resolution. This Resolution shall become
effective immediately upon its adoption.
The foregoing Resolution adopted by the City Council this 27th day of June,
2005.
City Recorder
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