HomeMy WebLinkAboutResolution No. 4971COUNCIL RESOLUTION NO. 4971
A RESOLUTION APPROVING THE ISSUANCE OF ADDITIONAL
REVENUE BONDS BY THE METROPOLITAN WASTEWATER
MANAGEMENT COMMISSION; AND PROVIDING AN EFFECTIVE
DATE.
PASSED: 7:1
REJECTED:
OPPOSED: Clark
ABSENT:
CONSIDERED: April 27, 2009
RESOLUTION NO. 4971
A RESOLUTION APPROVING THE ISSUANCE OF ADDITIONAL
REVENUE BONDS BY THE METROPOLITAN WASTEWATER
MANAGEMENT COMMISSION; AND PROVIDING AN EFFECTIVE
DATE.
The City Council of the City of Eugene finds that:
A.
Pursuant to ORS Chapter 190, the City of Springfield, Oregon, the City of
Eugene, Oregon and Lane County, Oregon (the Governing Bodies) entered into an
Intergovernmental Agreement (the Agreement) on February 9, 1977, establishing the
Metropolitan Wastewater Management Commission (the Commission) to construct,
operate, and maintain regional sewerage facilities to serve the Eugene-Springfield
Metropolitan area (the Metro Area).
B.
The original regional sewerage facilities were constructed in the early
1980s with a planned design capacity to serve the Metro Area through 2004.
C.
The Commission and the Governing Bodies have approved the 2004
Metropolitan Wastewater Management Commission Facilities Plan and 20-Year Project
List, which includes capital projects with an estimated cost of $144,000,000 (in 2004
dollars) necessary to meet the sewage treatment needs of the Metro Area through the
year 2025.
D.
After a public hearing, and based on the recommendations of the
Commission and its financial advisor, in 2005 the City Council authorized the
Commission to issue up to $100,000,000 of revenue bonds to finance regional
sewerage facilities pursuant to ORS 190.080(1)(a) and ORS 288.805 to 288.945 (now
ORS Chapter 287A).
E.
Due to various factors, including the escalation of construction costs since
2004, the cost of capital projects on the Commission’s 20-Year Project List is now
expected to exceed $196,000,000.
F.
In 2005, the Commission and its financial advisor determined that revenue
bonds were the best available financing tool and recommended that approximately
$100,000,000 in revenue bonds be issued to fund the capital projects on the
Commission’s 20-Year Project List. The recommendation was based on the original
projected cost of $144,000,000.
G.
The Commission and its investment advisor continue to believe that
revenue bonds are likely to be the best available financing tool.
H.
The Commission and its financial advisor recommend that approximately
$20 million in additional revenue bonds be issued to fund the projected increased cost
of the capital projects on the Commission’s 20-Year Project List.
Resolution - Page 1 of 2