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HomeMy WebLinkAboutResolution No. 4616 ...~v- COUNCIL RESOLUTION 4616 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE BY THE CITY OF EUGENE, OREGON, ACTING BY AND THROUGH THE EUGENE WATER & ELECTRIC BOARD, OF REVENUE BONDS OR OTHER EVIDENCES OF INDEBTEDNESS OF THE CITY IN AN AMOUNT NOT TO EXCEED $6,000,000; AND PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH. DA TE SUBMITTED: February 28, 2000 PASSED: 5/0 ABSENT: Farr, Nathanson & Pape REJECTED: DEFERRED TO: RESOLUTION NO. 4616 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE BY THE CITY OF EUGENE, OREGON, ACTING BY AND THROUGH THE EUGENE WATER & ELECTRIC BOARD, OF REVENUE BONDS OR OTHER EVIDENCES OF INDEBTEDNESS OF THE CITY IN AN AMOUNT NOT TO EXCEED $6,000,000; AND PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH. The City Council (the "Council") of the City of Eugene, a municipal corporation ofthe State of Oregon (the "City"), finds: A. That the electors of the City approved at an election duly held on May 18, 1993, Resolution No. 4360 adopted by the Council on February 17, 1993, authorizing the City, acting by and through the Eugene Water & Electric Board ("EWEB"), to issue up to One Hundred Fifty Million Dollars ($150,000,000) 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 (the "Electric System"), or from any other monies lawfully available therefor, for the purpose of financing improvements to the System, including, but not limited to, acquisition of energy conservation. B. That Section 2 of Resolution No. 4360 requires that all terms and conditions of the bonds or other evidences of indebtedness, and the terms upon which the same may be sold, shall be prescribed by resolution. C. That on December 7, 1999 EWEB adopted a Resolution authorizing the establishment of a commercial paper program for funding conservation loans to Electric System consumers pursuant to Resolution No. 4360 (the "Project") and the issuance of commercial paper notes in an aggregate principal amount of not to exceed Six Million Dollars ($6,000,000) for the purpose of financing all or a portion of EWEB' s costs relating to the Project, the funding of any debt service reserves and the payment of costs of issuance. 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. - Provisions for Issuance and Sale of Bonds. The terms and conditions of such bonds or other evidences of indebtedness in an aggregate principal amount of not to exceed Six Resolution - 1 Million Dollars ($6,000,000) and the terms upon which the same may be sold shall be as set forth in this Resolution; provided, however, that EWEB 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 Resolution are as follows: (a) The 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 a net effective rate of 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 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 a charge upon and are payable solely from the revenues of the Electric System, or any portion thereof, or 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 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. (c) EWEB may provide for the refunding of any bonds 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 System, or any 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 a net effective rate ofthirteen percent (13 %) per annum. (d) Provisions shall be made for the complete amortization of the principal amount of each issue of bonds issued under the authority of Resolution No. 4360 and this Resolution within a period of thirty (30) years from the respective date of such issue, through the medium of serial or sinking fund bonds or otherwise, as EWEB may determine. (e) Subject only to the provisions of the resolutions previously adopted by EWEB providing for the issuance of bonds payable from the net revenues of the Electric System, any pledge of the revenues or other monies or obligations of the Electric System made by the City acting by and through EWEB shall have such a lien and priority as EWEB shall determine and shall be valid and binding from the time such pledge is made, and the revenues or other Resolution - 2 monies or obligations so pledged and thereafter received by EWEB shall immediately be subject to the lien of such pledge without any physical delivery or further act. (f) Without limiting the powers extended to EWEB to determine terms and conditions of the bonds and other evidences of indebtedness in addition to and not in conflict herewith, EWEB 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 EWEB, or by the operation of any sinking fund provided for the issue, at such time or times and at such price or prices as EWEB 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 the bonds to be redeemed; for the appointment of such fiscal or paying agents, registrars, trustees or other agencies for any such issue of bonds, as EWEB may determine, for the benefit and protection of the holders of such bonds; for the deposit of funds including bond proceeds with such agents or trustees for any lawful purpose for which such funds may be deposited; for 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 ensure 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 or revenues of the Electric 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 or obligations in such special funds; to reduce interest costs on such bonds, EWEB may obtain bond insurance or other credit enhancement and may execute and deliver any necessary or appropriate credit enhancement agreement; and to covenant with, and for the benefit of, the holders from time to time of such bonds or credit enhancement provider as EWEB may determine. (g) EWEB shall, by resolution, determine the amount or amounts required for 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 bonds exist, have happened and have been performed in due time, form and manner as required by the Constituti'on 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 legal opinions have been rendered by bond counsel for EWEB that: 1. The bonds are duly and legally authorized and do not constitute general obligations of the City. 2. None of the resolutions ofEWEB enacted pursuant to this Resolution conflict with the terms and conditions prescribed by this Resolution. Resolution - 3 Section 2. - Provisions for Issuance and Sale of Notes. (a) In anticipation of the issuance and sale of the bonds approved by the electors of the City on May 18, 1993, EWEB is authorized to provide for the issuance and sale of notes or other obligations (collectively, the "notes") in an aggregate principal amount of Six Million Dollars ($6,000,000). The notes shall not be sold at a price less than ninety-six percent 96%) of the par amount thereof; Cll re in s fr -,ofGsu'nce ~ R I I t ~J!Qttta...!~ Such notes shall bear interest at such rate or rates per annum not exceeding a net effective rate of thirteen percent (13%) per annum. Such notes shall be sold at public or private sale, shall be in such form and in such denominations, and shall be subject to prior redemption at a premium not in excess of four percent (4%) of the principal amount of the notes to be redeemed, all as shall be determined by EWEB. The notes and the interest thereon shall be payable from the proceeds of the bonds approved by the electors of the City on May 18, 1993, and other funds of the Electric System available therefor. EWEB is hereby authorized to prescribe by resolution all such terms and conditions of said notes in addition to and not in conflict with those set forth herein. (b) Such notes shall include a statement on their face to the effect: 1. That they do not in any manner constitute any 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 payable from the proceeds of bonds and are charges upon and are payable solely from the revenues of the Electric System, or any portion thereof, or from any other monies lawfully available therefor, pledged to the payment thereof; 2. That the holders thereof may only look for repayment to the proceeds of bonds and the revenues of the Electric 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 and through the taxing power of the City. (c) Subject only to the provisions of the resolutions previously adopted by EWEB providing for the issuance of notes payable from bond proceeds and the net revenues of the Electric System, any pledge of the revenues or other monies or obligations of the Electric System made by the City acting by and through EWEB shall have such a lien and priority as EWEB shall determine and shall be valid and binding from the time such pledge is made, and the revenues or other monies or obligations so pledged and thereafter received by EWEB shall immediately be subject to the lien of such pledge without any physical delivery or further act. (d) Without limiting the powers extended to EWEB to determine terms and conditions of the notes and other evidences of indebtedness in addition to and not in conflict herewith, EWEB is authorized, in its discretion, and to the extent permitted by law, to provide in connection with the authorization of any issue of such notes, that such notes and Resolution - 4 the interest thereon may be payable, collectible or registerable at any place or places within or without the State of Oregon; for the appointment of such fiscal or paying agents, registrars, trustees or other agencies for any such issue of notes, as EWEB may determine, for the benefit and protection of the holders of such notes; for the deposit of funds including note proceeds with such agents or trustees for any lawful purpose for which such funds may be deposited; for the manner of disbursement of, and account for, note proceeds; for the rights and remedies of the holders of such notes; for the establishing and maintaining of special funds or accounts to ensure the payment when due and payment of the principal of and interest on such notes and for other purposes, from proceeds of the sale of bonds or revenues of the Electric System or other monies lawfully available and pledged to the payment of such notes and the interest thereon, and for the investment and reinvestment of monies or obligations in such special funds; and to covenant with, and for the benefit of, the holders from time to time of such bonds as EWEB may determine. EWEB is also authorized to appoint one or more credit facility banks, to execute and deliver any credit facility agreement, security agreement, or other agreements or documents in connection with the sale of the notes or for the provision of credit enhancement, liquidity or marketing or remarketing of the notes. (e) EWEB shall, by resolution, determine the amount or amounts required for 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 notes 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. (t) The notes or other evidence of indebtedness shall not be sold until legal opinions have been rendered by bond counsel for EWEB that: 1. The notes are duly and legally authorized and do not constitute general obligations of the City. 2. None of the resolutions ofEWEB enacted pursuant to this Resolution conflict with the terms and conditions prescribed by this Resolution. Section 3. - Reportine. 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 report on bond payments describing amounts paid and amounts scheduled to be paid and the source of such payments. If the contents of such report is included in EWEB' s yearly audit report, EWEB may comply with this section by transmitting a copy of its yearly audit report to the City. Resolution - 5 Section 4. - Effective Date. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the 28th day of February, 2000. If- ~/l7 City Recorder Resolution - 6