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HomeMy WebLinkAbout782 Issuance of Refunding Bonds by NCPA•§•l 1 ~dr) /~/~~<_ ORDINANCE N0. 7R7 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IIY.IAH AUTHORIZING THE ISSUAidCE OF REFUNDING BOD7DS BY THE~NORTF.ERN CALIFORNIA POWER AGENCY (RFL GEOTHERi;AL PROJECT). WHEREAS, pursuant to the provisions of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, as amended (the "Joint Powers Act"), the City of Ukiah and certain other public agencies created pursuant to the laws of the State of California (collectively, the "I•lembers"), have entered into a Joint Powers Agreement, as amended (the "Agreement"), creating the Iorthern Calif ornia Power Agency (the "Agency"), a public entity separate and apart from the Id embers; and I.7HEREAS, in accordance with the AgrEe~:~ent and the Joi nt Powers Act, the Agency and certain of the iiembers (hereinafter called the "Participating Efembers") have entered into the NCPA Dfember Agreement for Participation in Electric Power Development Fund (the "Development Fund AgrEement"), dated July 1, 1975, revised I•iay 1, 1978 and amended April 26, 1979, wherein each Participating I•fe,nber has agreed to make payments from its electric department revenues, except Plumas-Sierra Rural Electric Cooperative which shall pay from any available funds, for certain Development Costs (as defined in the Development Fund Agreement), incurred by the Agency in developing a revenue-producing system for the generation, production and transmis- sion of electric energy for lighting, heating and power for public and private uses; and WHEREAS, the Agency has caused the Northern California Diunicipal Power Corporation No. 1 (the "NCDIPC No. 1"), a California not for profit corporation to be formed to act on behalf of the Agency to finance, among other things, interim development costs relating to a geothermal power plant in Lake County, California, the output of which plant was to be furnished to the Acency by the NCDIPC No. 1; and SJHEREAS, pursuant to a Loan Agreement (the "Loan Agreement") dated as of June 29, 1979 with the Bank of Dlontreal (California) (the "BOI,"), the NCI•IFC No. 1 could borrow at any one time not exceeding $2,335,000 (the "BODE Loan"), of which, as of Diarch 1, 1982, approximately $1,635,500 renained unpaid, on a taxable basis, primarily to pay interim development costs for said power plant; and P7HEREAS, in order to secure the BOM Loan, the Agency assigned its rights to receive certain payments under the Development Fund Agreement to the BODE pursuant to a Security Agreement, dated as of June 29, 1979 (the "Security Agreement") between the Acency and the BOt•f, and granted a present and future first security interest in and assigned to the BON the rights to such payments; and A'HEREAS, pursuant to Section 6576 of the Joint Po~•;ers Act, the Agency may provide for the issuance and sale of refunding bonds for the purpose of redeeming or retiring any revenue bonds or other evidence of indebtedness incurred by it; and 1aHEREAS, the Agency proposes to issue not exceeding $3,000,000 principal a,-rount of its revenue bonds (the "Bonds") pursu- ant to said Section 6576 for the purpose of retiring its indebtedness to the BOM under the Security Agreement so as to provide for the pay- ment of the indebtedness of the NCDIPC No. 1 under the BCDf Loan; and hTHEREAS, the Agency proposes to issue from time to time its renewal revenue bonds (the "Renewaal Bonds") pursuant to said Section 6576, in a principal amount to be outstanding at any one time (in accordance with their terms) not to exceed $3,000,000, the pro- ceeds of the first issuance of such Renewal Bonds to provide funds for the payment and retirement of the Bonds and the proceeds of each later issuance of such Renewal Bcnds to pro•.•ide funds for the pay;,,ent and retirement of P,ene~aal Bonds theretofore outstanding; and =t`~' ~:HEREAS, the anticipated source of revenue or other funds to pay the principal of and interest on the Bonds, to the extent not paid from proceeds of P.enev~al Bonds, is payments of the Participating tiembers under the Development Fund Agreement; and lv'HEP.EAS, the anticipated source of revenue or other funds to pay the principal of and interest on the Renewal Bonds, to the extent not paid from proceeds of subsequent Renewal Bonds, is pay- ments of the Participating I•iembers under the Development Fund Agreement; and iii-IEREAS, in accordance with the Joint Powers Act, the exer- ° cise by the Agency of its power to issue the Bonds and the Renewal Bonds is subject to the authorization of such issuance by the Iiembers pursuant to ordinance; and ~v'IIEREAS, neither the payment of principal of the Bonds or the Renewal Bonds nor any part thereof nor interest thereon shall constitute a debt, liability or obligation of the City of Ukiah NOP7, THEREFORE, the City Council of the City of Ukiah does ordain as follovas: 1. The issuance and sale by the Agency of the Bonds is hereby authorized. The proceeds from the sale of the Bonds hereby authorized are to be used to retire the indebtedness of the Agency to the BOhi under the Security Agreement so as to pro~~ide for the pay,,.ent of the BOtd Loan. The Bonds, premium, if any, and interest thereon, to the extent not paid from proceeds of Revenue Bonds, are to be pay- able from payments of Participating ti.embers under the Development Fund Agreement. 2. The issuance and sale by the Agency of the Renewal Bonds is hereby separately authorized. The proceeds of the sale of the Renewal Bonds are to be used to retire Bonds or Renewal Bonds. The Renewal Bonds, premium, if any, and interest thereon, to the extent not paid from the proceeds of subsequent Renewal Bonds, are to be payable from payments of Participating Dlembers under the Development Fund Agreement. 3. Pursuant to Section 6547 of the Joint Powers Act, this ordinance is subject to the provisions for referendum prescribed by Section 3751.7 of the Elections Code of the State of California. 4. The City Clerk shall certify to the enactr,:ent of this ordinance and shall cause notice of the same to be published in accordance with Section 6040.1 of the Gcvernment Code of the State of California. 5, Sixty (60} days from and after its enact„gent, this ordinance shall take effect and be in full force, in the manner pro- vided by law. THE FOREGOING ORDINANCE the City Council of the City of of May , 1982. is a~approved, enacted and adopted by Ukiah , this nth day ~ ~.~ ~ ~~ Mayor ATTEST -,~~ City Clerk y//`~/v~r.) NOTICE OF ORDINANCE SUBJECT TO REFEREidDUF1 CITY OF UKIAH ORDINANCE N0. ADOPTED BY THE CITY COUNCIL OF TAE CITY OF _L!KTAH ON Mav 5, , 1982 Notice is hereby given as required by Section 60?0.1 of the Government Code of the State of California that at a regular meeting of the City Council of the City of Tlkiah (the "City Council"), held on Mav 5 , 1982, Ordinance No. 782 (the "Ordinance") was adopted. The title and a summary of the Ordinance are set forth ° below. The Ordinance is subject to the provisions for referendum prescribed by Section 3751.7 of the Elections Code of the State California and shall not take effect for 60 days frcm the date of adoption, as discussed below. Title ORDINANCE OF TY.E CITY COUPiCIL OF TF.E CITY OF UKTAH AUTHORIZING THE ISSUANCE OF REFUNDING BONDS BY NORTHERN CALIFORDIIA POSER AGEPICY (RFL GEOTHERMAL PROJECT). Summary Pursuant to the Ordinance, the City Council has authorized the issuance and sale by Northern Calif orr.ia Power Agency (the "Agency") of its revenue bonds (the "Bonds"), to mature not later than 30 years from the date of issue, to be issued in an aggregate principal amount of not exceeding $3,000,000 and to bear interest at a probable overall rate of not exceeding 12o per annum. The actual interest rates on the Bonds or the method of determining such rates will be determined by the Commission of the Agency in accordance with law at or prior to the time of issuance of the Bonds. Pursuant to the Ordinance, the City Council has separately authorized the issuance and sale by the Agency of its renewal revenue bonds (the "Renewal Bonds"), to mature not later than 30 years from the date of issue, to be issued in an aggregate principal amount to be outstanding at ar.i~ ene time (in accordance wi*_h their terms) nct to exceed $3,000,000 and to bear interest at a probable overall rate of not exceeding 12a per-annum. The actual interest rates on the Renewal Bonds or the method of determining such rates will be deter- mined by the Commission of the Agency in accordance with law at or prior to the time of issuance of the Renewal Bonds. Council Fiembers Hickey, Feibusch, Snyder, Riley, Flyers voted in favor of the Ordinance. There were no Councilmembers ~~~ho voted aoainst the Ordinance. There were no Councilmembers absent. The Agency was created pursuant to a Joint Powers Agreement, as amended (the "Agreement"), heretofore entered into between the City of lJkiah and certain other public agencies created pursuant to the laws of the State of California (collectively, the "PIembers") pursuant to the provisions of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, as amended (the "Joint Powers Act"). The Agency is a public entity separate and apart from the Members. In accordance with the Joint Powers Act and the Agreement, the Agency and certain of the Members (the "Participating t~iembers") have entered into the NCPA Member Agreement for Participation in Electric Power Development Fund (the "Development Fund Agreement"), dated July 1, 1975, revised May 1, 1978 and amended April 26, 1979, wherein each Participating Member has agreed to make payments from its electric department reve- nues, except Plumas-Sierra Rural Electric Cooperative which shall pay from any available funds, for certain Development Costs (as defined in the Development Fund Agreement), incurred by the Agency in devel- oping a revenue-producing system for the generaticn, production and transmission of electric energy for lighting, heating and power for public and private uses. The Agency has caused the Northern California Municipal Power Corporation No. 1 (the "NCh1PC No. 1"),_ California not for profit corporation, to be formed to act on behalf of the Agency to finance, among other things, interim development costs relating to a geothermal. power plant in Lake County, Lr~'% ~ l California, the output of which plant was to be furnished to the Agency by the D?CPIPC No. 1. Pursuant to a Loan Agreement (the "Loan Agreement") dated as of June 29, 1579 with the Bank of Piontreal (California) (the "BOF1") , the PICi4PC Ddo. 1 could borrow at any one time not exceeding $2,335,000 (the "BCPi Loan"), of which, as of t•larch 1, 1982, approximately $1,635,500 remained unpaid, on a taxable basis, primarily to pay interim development costs for said power plant. In order to secure the BOi9 Loan, the Agency assigned its rights to receive certain payments under the Development Fund Agreement to the BOt9 pursuant to a Security Agreement, dated as of June 29, 1979 (the "Security Agreement") between the Agency and the BO[•1, and granted a present and future first security interest in and assigned to the BCt•1 the rights to such payments. Pursuant to Section 657.6 of the Joint Powers Act, the Agency may provide for the issuance and sale of bonds for the purpose of redeeming or retiring any reve- nue bonds or other evidence of indebtedness incurred by it. The Agency proposes to issue, in accordance with the Agreement and the Joint Powers Act, the Bonds to provide funds for the purpose of retiring its ir.debtedr.ess to the BOtl under the Security Agreement so as to provide for the payment of the indebted- ness of the NCNPC No. 1 under the BCFS Loan. The Bonds, to the extent not paid from the proceeds of Renewal Bonds, are to be payable from payments of the Participating Nembers under the Development Fund Agreement. The Agency proposes to issue, in accordance with the Agreement and the Joint Powers Act, the Renewal Bonds, the proceeds of the first issuance of which would provide funds for the payment and retirement of the Bonds and the proceeds of each later issuance of which would provide funds for the payment and retirement of Renewal Bonds theretofore outstanding. The Renewal Bonds, to the extent not paid from the proceeds of subsequent Renewal Bonds, are to be payable from payments of the Participating t•iembers under the Development Fund Agreement. Neither the payment of principal of the Bonds or the Renewal Bonds nor any part thereof nor interest thereon will consti- tute a debt, liability or obligation of the City of Ukiah . THE ORDINANCE AUTHORIZING THE ISSUANCE OF THE BONDS AND THE RENEPIAL BONDS IS SUBJECT TO REFERENDUM7. UPON PRESENTATION (PiITHID7 THE TIPiE PERIOD SPECIFIED BY LAPI) OF. A PETITIWI (BEARING SIGNATURES, IPI AT LEAST THE NUt1BER REQUZF.ED BY THE LAW) PROTESTIP?G AGAIPIST THE ADOPTION OF THE ORDINANCE, THE CITY CCUi1CIL IS REQUIRED TO RECONSIDER THE ORDID?ANCE. THEREUPON, IF THE CITY COUNCIL DOES NOT ENTIRELY REPEAL THE ORDINANCE, THE ORDIf?AD1CE SHALL BE SUSFIITTED (UNDER BALLOT WORDID?G PRESCRIBED BY LAP;) TO THE VOTERS AT A REGULPR OR SPECIAL ELECTION AND THE ORDINANCE SHALL NOT BECOPIE EFFECTIVE UNPIL A tIAJCR- ITY OF TEE VOTERS VOTID?G ON THE ORDINANCE VOTE IN FAVOR OF IT. THE FOREGOING DESCRIPTIODI OF THE PROCEDUF.ES FOR REFERENDUM IS BASED UPOfI THE APPLICABLE REFEREPIDUi1 PRGVISIONS OF THE CALIFORtIIA ELECTIONS CODE AND THE CALIFORNIA GOVERNMENT CODE. REFERENCE IS tlADE TO TAE CALIFORNIA ELECTIONS CODE AND TEE CALIFORNIA GOVERIv~lENT CODE FOR A COMPLETE STATEt1ENT OF SUCH PROVISIONS.