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HomeMy WebLinkAboutOrdinance No. 19780ORDINANCE NO. ti ~,~~ AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE FROM TIlVIE T4 TIME BY THE CITY OF EUGENE, ACTING BY AND THROUGH 'THE EUGENE WATER & ELECTRIC BOARD, OF NOT EXCEEDING $Z2 MILLION AGGREGATE PRINCIPAL AMOUNT OF REVENUE BONDS OR OTHER EVIDENCES OF INDEBTEDNESS OF SAID CITY, PAYABLE SOLELY FROM NET REVENUES OR ANY PORTION THEREOF OF THE ELECTRIC UTILITY SYSTEM OF SAID CITY, OR FROM ANY OTHER MONIES LAWFULLY AVAILABLE FOR, FOR THE PURPOSE OF FINANCING IlVIPROVEMENTS T4 THE ELECTRIC UTILITY SYSTEM; PROVIDING FOR CERTAIN OTHER MAZ'I'ERS IN CONNECTION THEREWITH; AND DECLARING AN EMERGENCY, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Findin s and Determinations. The City Council of the City of Eugene, Oregon, hereby finds and determines that: a. The electors of the City approved at an election duly held on March 2b, 1991, Ordinance No. 19741 enacted by the City Council and approved by the Mayor on January 9, 1991, authorizing the City, acting by and through the Eugene Water & Electric Board, to issue up to $22 million aggregate principal amount of revenue bonds or other evidences of indebtedness of the City, payable solely from the net revenues or any portion thereof of the Electric Utility System of the City, or from any other monies lawfully available therefor, far the purpose of financing improvements to the Electric Utility System; and b. Section 2 of Ordinance No. 19741 requires that all terms and conditions of the bands or other evidences of indebtedness, and the terms upon which the same may be said, shall be prescribed by Ordinance. Ordinance - 1 Section 2. Provisions for Issuance and Sale of Bonds. The terms and conditions of such bonds or other evidences of indebtedness and the terms upon which the same may be sold shall be as set forth in this Ordinance; provided, however, that the Eugene water & Electric Board is hereby authorized to prescribe by resolution all such terms and conditions in addition to and not in conflict with those set forth herein. The terms and conditions prescribed by this Ordinance are as follows: a. The bonds or other evidences of indebtedness shall not be sold at a price less than ninety-suc percent (96%) of the par amount thereof, shall mature not later than thirty (30) years from the date thereof and shall bear interest at such rate or rates per annum not exceeding thirteen percent (13%) per annum. b. Such bonds and other evidences of indebtedness shall include a statement on their face to the effect; (1) That they do not in any manner constitute any general obligation of the Eugene Water ~ Electric Board, or of the City of Eugene, or create a charge upon the tax revenues of said City, or upon any other revenues or property of said City, or property of said Board, but are charged upon and are payable solely from the revenues of the Electric Utility System of the City, or any portion thereof, ar from any other monies lawfully available therefor, pledged to the payment thereof; (2) That the holders thereof may only look for repayment to the revenues of the Electric Utility System which are pledged to the payment thereof, and may not directly, ar indirectly, be paid or compensated through the property of the City, or the Eugene water & Electric Board, or by and Ordinance • 2 through the taxing power of the City. c. The Eugene Water & Electric Board may provide for the refunding of any bands or other evidences of indebtedness so issued by the issuance and sale of refunding bonds or other evidences of indebtedness upon such terms and conditions as it may prescribe, and pledge to such refunding bonds and other evidences of indebtedness all of such part of the net revenues of the Electric Utility System, of the portion thereof, or from any other monies lawfully available therefor, as it may determine; provided, however, that such refunding bonds or other evidences of indebtedness shall not be sold at a price less than ninety-six percent (96%) of the par amount thereof, shall mature not later than thirty (30) years from the date thereof and shall bear interest at such rate or rates per annum not exceeding thirteen percent (13%) per annum. d. Provisions shall be made far the complete amortization of the principal amount of each issue of bonds issued under the authority of ordinance No. 19741 and this Ordinance within a period of thirty X30} years from the respective date of such issue, through the medium of serial or sinking fund bonds or otherwise, as the Eugene Water & Electric Board may determine. e. Subject only to the provisions of the resolutions heretofore adapted by the Eugene water & Electric Board providing for the issuance of bonds payable from the net revenues of the Electric Utility System, any pledge of the revenues or other monies or obligations of the Electric Utility System made by the City acting by and through the Board shall have such a lien and priority as the Board shall determine and shall be valid and binding from the time such pledge is made, and ordinance - 3 the revenues or other monies or obligations so pledged and thereafter received by the Board shall immediately be subject to the lien of such pledge without any physical delivery or further act. f. Without limiting the powers extended to the Eugene Water & Electric Board to determine terms and conditions of the bonds and other evidences of indebtedness in addition to and not in conflict herewith, the Board is authorized, in its discretion, and to the extent permitted by law, to provide in connection with the authorization of any issue of such bonds, that such bonds and the interest thereon may be payable, collectible or registerable at any place or places within or without the state of Oregon; that such bonds may be redeemable, either at the option of the Board, or by the operation of any sinking fund provided far the issue, at such time or times and at such price or prices as the Board may determine, whether or not involving a premium over the principal amount of such bonds, provided, however, that any such premium shall not exceed four percent ~4%~ of the principal amount of bands to be redeemed; for the appointment of such fiscal or paying agents, registrars, trustees, or other agencies, for any such issue of bonds, as the Board may determine, far the benefit and protection of the holders of such bonds; for the deposit of funds including bond proceeds with such agents or trustees far any lawful purpose for which such funds may be deposited; far the manner of disbursement of, and accounting for, bond proceeds; for the rights and remedies of the holders of such bonds; for the establishing and maintaining of special funds or accounts to insure the payment when due and payment of the principal of and interest on such bonds and for other purposes, from proceeds of the sale of bonds Ordinance - 4 ar revenues of the Electric Utility System or other monies lawfully available and pledged to the payment of such bonds and the interest thereon, and for the investment and reinvestment of monies ar obligations in such special funds; and to covenant with, and for the benefit of, the holders from time to time of such bonds as the Board may determine. g. The Eugene Water & Electric Board shall, by resolution, determine the amount or amounts required far the purposes for which the monies are borrowed at any particular time or times, and shall also determine that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of such bands 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. h. The bonds or other evidence of indebtedness shall not be sold until the following actions have taken place: (1) Legal opinions have been rendered by bond counsel for the Eugene Water ~ Electric Board that the bonds are duly and legally authorized and do not constitute general obligations of the City of Eugene and qualify for tax exempt status. (2) General counsel for the City of Eugene has reviewed all resolutions of the Eugene Water & Electric Board enacted pursuant to this Ordinance and has determined that such resolutions do not conflict with the terms and conditions prescribed by this Qrdinance. ~3~ The City Manager is given written notice in advance of each Ordinance - 5 planned sale of the date of the planned sale and the principal amount of the bands to be sold at the planned sale. Section 3. Re ortin . The Eugene Water & Electric Board 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 established pursuant to the bond resolution describing the funds established, the amounts in each fund, expenditures 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. b. A report vn bond payments describing amounts paid and amounts scheduled to be paid and the source of such payments. If the contents of the reparts required by subsections a and b are included in the Eugene Water & Electric Board's yearly audit report, the Board may comply with this section by transmitting a copy of its yearly audit report to the City. Section 4, Emer en Clause. This ordinance is essential to the public welfare and safety, and therefore an emergency is hereby declared to exist and this ordinance shall take effect immediately upon its passage by the City Council and approval by the Mayor, retention by the Mayor for more than ten days, or readaption over a mayoral veto by two-thirds of all members of the Council. Passed by the City Council this ~ day of June, 1991 City Recorder Approved by the Mayor this day of June, 1991 ` ; ~~~ ayor ordinance - 6