Loading...
HomeMy WebLinkAbout763 NCPA Project No 1- Development Fund BondsORDINANCE N0. 763 CITY OF UKIAH AUTHORIZING THE NORTHERN CALIFORNIA POWER AGENCY TO ISSUE REVENUE BONDS (NCPA PROJECT N0. 1-DEVELOPMENT FUND BONDS) BE IT ORDAINED BY THE COUNCIL OF THE CITY OF UKIAH that: Section 1. Northern California Power Agency organized under that certain Joint Powers Agreement to which this City is a party, dated July 19, 1968, as amended ("NCPA") is authorized pursuant to Section 6547 of the Government Code to issue bonds, notes including bond anticipation notes or other evidences of indebtedness (to be hereinafter referred to as "Development Fund Bonds") to the full extent permitted by the provisions of Section 6540 et seq. of the Government Code (the "Bond Act") Section 2. The project to be temporarily financed by the Development Fund Bonds hereby authorized is the purchase of the right to obtain electrical capacity produced by Northern California Municipal Power Corporation No. One, a nonprofit corporation (the "Corporation"), which has agreed to act on behalf of NCPA to conduct exploratory drilling for geothermal steam wells to be developed as the first step in the acquisition, construction, maintenance and operation of a power plant and other facilities and appurtenances necessary or convenient to such plant, including transmission lines and geothermal steam wells ("Project") (said geothermal steam to be produced from certain leasehold interests acquired by Corporation in Lake County, under an "Agreement for Sale and Purchase of Geothermal Leases" between NCPA, Corporation and the Trustee in Bankruptcy of Resource Funding Ltd. dated January 24, 1980 and approved by appropriate decree of the Bankruptcy Court). Section 3. The estimated amount of Development Fund Bonds to be issued for the purposes described in Section 2 is Five Million Dollars ($5,000,000.00); provided that nothing herein shall be deemed to prevent the issuance of addi- tional bonds are required to complete the temporary financing of the project described in Section 2 hereof, including the issuance of bond anticipation notes and refunding bonds therefor. Section 4. The anticipated sources of revenue or other funds to pay the principal and interest on the Development Fund Bonds are payments under the Development Fund Agreement "NCPA Member Agreement for Participation in Electrical r 1 ?ower Development" entered into between the members of NCPA and NCPA on July 1, 1975, revised May 1, 1978, and amended April 26, 1979, or additional Developmemt Fund Bonds (including additional Development Fund Bonds used for refunding purposes); provided further such sources shall also include the proceeds of project revenue Bonds payable from revenues for electricity generated from the project, separately authorized pursuant to Section 6547 of the Bond Act by subsequent ordinance for the purpose of permanent financing of the Project ("Project Revenue Bonds") or bond anticipation notes in anticipation of the Project Revenue Bonds; in addition, such Development Fund Bonds may be secured by a guarantee, letter of credit or other obligations or funds of a bank or private financial institution. This Ordinance does not increase the City's obligation under said existing Development Fund Agreement which may only be increased by consent of the City here- after. Section 5. The Cities of Palo Alto and Redding are not participants in the acquisition, construction, maintenance, operation or financing of the Project and nothing in this ordinance shall mean or be construed to mean that such cities have assumed or agreed to assume any financial or other responsibility or liability associated with the acquisition, construction, maintenance, operation or financing of the Project. Section 6. This ordinance is subject to the provisions for referendum pre- scribed by Section 3751.7 of the Elections Code of the State of California. Sub- ject to the foregoing, this ordinance shall take effect and be in force sixty (60) days from the date of adoption. Section 7. The City Clerk of the City is hereby directed to cause thos ordi- Hance to be published within fifteen (15) days after its adoption in a newspaper of general circulation within the City of Ukiah and shall also do all of the things re- quired to cause notice of the adoption of this ordinance to be published in the manner required by Section 6040.1 of the Government Code of the State of California. Dated: July 1, 1981. s/Charles G. Myers Presiding Officer of the Council Charles G. Myers, Mayor ATTEST: s/Hattie Tillotson Approved as to form: City Clerk s/Merle P. Orchard City Attorney CITY OF UKIAH NOTICE OF ADOPTION OF ORDINANCE N0. 763 NOTICE IS HEREBY GIVEN as required by Section 6040.1 of the Government Code of the State of California, that Ordinance No. 763 of the City of Ukiah, California, was adopted by the City Council on July 1, 1981, and authorized the issuance of revenue bonds, including bond anticipation notes, pursuant to Article 2, Chapter 5, Division 7, Title 1 of the Government Code of the State of California, by the NorthernCalifornia Power Agency, organized under that certain Joint Powers Agreement, to which the City of Ukiah is a party, dated July 19, 1968, as amended. Ordinance No. 763 is subject to the provisions for referendum prescribed by Section 3741.7 of the Elections Code of the State of California and shall not take effect for 60 days from the date of adoption. Since the number of votes cast for all candidates for Governor at the last gubernatorial election within the boundaries of the City of Ukiah was less than 500,000 the above named ordinance is subject to referendum upon presentation of a petition bearing signatures of at least 10 percent of the entire vote cast within the boundaries of the City of Ukiah for all candidates for Governor at the last gubernatorial election. For the purpose of submitting the question to the voters, pursuant to a referendum petition satisfying the requirements of the preceding paragraph, the ballot wording shall approximate the following: "Shall of the City of Ukiah, as a member of the Northern California Power Agency, a joint powers entity of which the City is a member, authorize the issuance of revenue bonds, including bond anticipation notes, by the joint powers entity pursuant to Ordinance No. 763, dated July 1, 1981, such bonds to be used for the following purposes and to be redeemed in the following manner: The project to be temporarily financed by the Development Fund Bonds hereby authorized is the purchase of the right to obtain electrical capacity produced by Northern California Municipal Power Corporation No. One, a non- profit corporation (the "Corporation"), which has agreed to act on behalf of NCPA to conduct exploratory drilling for geothermal steam wells to be developed as the first step in the acquisition, construction, maintenance and oepration of a power plant and other facilities and appurtenances necessary or convenient to such plant, including transmission lines and geothermal steam wells ("Project") (said geothermal steam to be produced from certain leashold interests acquired 1 ~ ._ Corporation in Lake County, under an "Agreement for Sale and Purchase of Geothermal Leases" between NCPA, Corporation and the Trustee in Bankruptcy of Resource Funding Ltd. dated January 24, 1980 and approved by appropriate decree of the Bankruptcy Court). The bonds authorized by Ordinance No. 763 are revenue bonds of the Northern California Power Agency. The purpose of the issuance and sale of said bonds is, by purchasing capacity, to provide a portion of the cost of construction of an electric generating plant powered by geothermal steam and the related transmission lines and appurtenances necessary or convenient thereto in the County of Sonoma by Northern California Municipal Corporation No. Two (the "Corporation"). The estimated amount of the bonds to be issued and sold is $6,000,000.00 and the duration of the proposed indebtedness shall not exceed a maximum period of 30 years from the date of issuance of the obnds or any series thereof. The antici- pated sources of revenue for the payment of the bonds are payments under the Development Fund Agreement "NCPA Member Agreement for Participation in Electrical Power Development" entered into between the members of NCPA and NCPA on July 1, 1975, revised May 1, 1978, and amended April 26, 1979, or additional Development Fund Bonds(including additional Development fund Bonds used for refunding pur- --- poses); provided further such sources shall also include the proceeds of project revenue Bonds payable from revenues for electricity generated from the project, separately authorized pursuant to Section 6547 of the Bond Act by subsequent ordinance for the purpose of permanent financing of the Project ("Project Revenue Bonds") or bond anticipation notes in anticipation of the Project Revenue Bonds; in addition, such Development Fund Bonds may be secured by a guarantee, letter of credit or other obligations or funds of a bank or private financial institution. The anticipated rate of interest on said bonds will not exceed 10 percent per annum. The cities of Palo Alto and Redding are not participants in the acquisition, construction, maintenance, operation or financing of the plant referred to above and the cities of Palo Alto and Redding have not assumed or agreed to assume any financial or other responsibility or liability associated with the acquisition, construction, maintenance, operation or financing of such plant. Dated this 10th day of July, 1981. City Clerk City of Ukiah Publish: July 14, 1981 ___