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HomeMy WebLinkAbout794[Note: This Ordinance to be adopted I1~ Notes Ordinance.] 51 ORDINANCE NO. 794 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE ISSUANCE OF PUBLIC POWER REVENUE BONDS BY NORTHERN CALIFORNIA POWER AGENCY (GEOTHEPd. IAL GENERATING PROJECT NU~ER 3) . 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 _Uki~h and certain other public agencies created pursuant to the laws of the State of California (collectively, the "Members"), have entered into a Joint Powers Agreement, as amended (the "Agreement"), creating the Northern California Power Agency (the "Agency".), a public entity separate and apart from the Members; and WHEREAS, in accordance with the Agreement and the Joint Powers Act, the Agency has entered or will enter into agreements to acquire and construct (or to cause to be acquired and constructed) a project for the generation and transmission of electric energy con- sisting of two 55 megawatt geothermal generating units and related facilities, including transmission, proposed to be constructed in Sonoma and Lake Counties, State of California, and capital improve- ments thereto that may be constructed from time to time, and inter- ests in certain other property and rights relating thereto, includ- ing, without limitation, such interest in the Agency's Geothermal Generating Project Number 2, as the Agency may determine (the "Project"); and . WHEREAS, the Agency proposes to issue, in accordance with the Agreement and the Joint Powers Act, from time to time, in one or more installments, its revenue bonds and evidences of indebtedness (including refunding bonds) ("Public Power Revenue Bonds") to be out- standing at any one time in accordance with their terms in the esti- mated maximum aggregate principal amount of $300,000,000, for the purpose of providing funds for the acquisition, construction and financing of the Project; and WHEREAS, the Agency also proposes to issue its notes and other evidences of indebtedness (including renewal notes) ("Notes".) for the purpose of financing studies, the acquisition of options, permits, and other preliminary costs to be incurred prior to the undertaking of the construction or acquisition of the Project and for the purpose of providing temporary financing of costs of acquisition and construction of the Project; and WHEREAS, notwithstanding the aforesaid estimated maximum aggregate principal amount of. Public Power Revenue Bonds proposed to be issued by the Agency for the Project and Go be outstanding at any one time in accordance with their terms, additional Public Power Revenue Bonds may be required to complete the financing_ of the Project; and WHEREAS, the Agency has entered or will enter into one or more agreements (the "Member Agreements") with certain entities (including two or more of the Members), pursuant to which the enti- ties entering into such Member Agreements with the Agency (the "Participants") will, in the aggregate, purchase options and/or rights to purchase and/or receive 100% of the capacity and energy of the Project; and WHEREAS, the Public Power Revenue Bonds are to be payable from funds held in trust for the benefit of the holders of such Bonds and from revenues of the Agency from the Project, including payments to be made by the Participants under the Member Agreements; and WHEREAS, the Notes are to be payable from proceeds of renewal Notes and the proceeds of the Public Power Revenue Bonds and, to the extent not so paid,-may be payable from revenues of the Agency from the Project, including payments to be m~de by the Participants under the Member Agreements; and 52 WHEREAS, in accordance with the Joint Powers Act, the exer- cise by the Agency of its power to issue the Public Power Revenue Bonds is subject to the authorization of such issuance by the Members pursuant to Ordinance; and WHEREAS, neither the payment of principal of the Public Power Revenue Bonds nor any part thereof nor interest thereon shall constitute a debt, liability or obligation of the City of Ukiah ; nor does this Ordinance commit the City of Ukiah to take or pay for any capacity or energy of the Project. NOW, THEREFORE, the City Council of the City of ~lkiah does ordain as follows: 1. The issuance and sale by the Agency, from time to time, in one or more installments, of its Public Power Revenue Bonds outstanding at any one time -in accordance with their terms in a maximum aggregate principal amount of $300,000,000 is hereby authorized. Notwithstanding such maximum aggregate principal amount, the Agency is hereby authorized to issue additional principal amounts of its Public Power Revenue Bonds if and to the extent required to complete the financing of the Project. The proceeds from the sale of the Public Power Revenue Bonds hereby autho- rized are to be used for the acquisition, 'construction and financing of the Project, including interest on such Bonds and deposits to reserves, and to pay the principal, premium, if any, and interest on the Notes of the Agency when due. The Public Power Revenue Bonds hereby authorized, and premium and interest thereon, are to be payable from, and secured by, funds held in trust for the benefit of the holders of Public Power Revenue Bonds and from revenues of the Agency from the Project, including payments received by the Agency from the Participants under the Member Agreements. · 2. 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. 3. The City Clerk shall certify to the enactment of this Ordinance and shall cause notice of the same to be published in accordance with Section 6040.1 of the Government Code of the State of California. 4. Sixty (60) days from and after its enactment, this Ordinance shall take effect and be in full force, in the manner provided by law. THE FOREGOING ORDINANCE is approved, enacted and adopted by the City Council of the City of Ukiah , this ~. F-~ day of October , 1982. ATTEST :. - City Clerk · · ~layor, Cit~]of Uk-iah 53 NOTICE OF ORDINANCE SUBJECT TO REFERENDUM CITY OF UKIAH ORDINANCE NO. ~ ADOPTED BY THE CITY COUNCIL OF THE CITY OF UKIAH ON OCTOBER 20 , 19 82 Notice is hereby given that at a regular meeting of the City Council of the City of Ukiah (the "City Council".), held on _ 10/20 , 1982, Ordinance No. 794 (the "Ordinance'°) was adopted. The title and a summary of the Ordinance are set forth below. The Ordinance is subject to referendum, as discussed below. Title ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE ISSUANCE OF PUBLIC POWER REVENUE BONDS BY NORTHERN CALIFORNIA POWER AGENCY (GEOTHERMAL GENERATING UNITS #3 AND )4 PROJECT). Sqmmary Pursuant to the Ordinance, the City Council has authorized the issuance and sale by Northern California Power Agency (the ".Agency") of its revenue bonds and evidences of indebtedness ("Public Power Revenue Bonds"), to mature on or before December 31, 2022, to be issued, from time to time, in one or more installments, in an estimate aggregate principal amount outstanding at any one time in accoraance with their terms of $300,000,000 and to bear interest at a probable overall rate 'of ]3 % per annum. The actual interest rates on each installment of such Public Power Revenue Bonds or the method of determining such rates will be determined by the Commission of the Agency in accordance with law at. the time of issuance of such installment. Notwithstanding such maximum aggregate principal amount of Public Power Revenue Bonds, the Agency is authorized, pursuant to the Ordinance, to issue additional principal amounts of its Public Power Revenue Bonds if and to the extent required to complete the financing of the Project discussed below. . The Agency was created pursuant to a Joint Powers Agreement, as amended (the "Agreement"), heretofore entered into between the City of ~Ukiah and certain other public agencies cre- ated pursuant to the laws of the State of California (collectively, the "Members") pursuant to the pr. ovisions 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. The Agency, in accordance with the Joint Powers Act and the Agreement, has entered or will enter into agree- ments to acquire and construct (or cause to be acquired and constructed) a project for the generation and transmission of elec- tric energy consisting of two 55 megawatt geothermal generating nnits and related facilities, including transmission, . proposed to be constructed in Sonoma and Lake Counties, State of California, and capital improvements thereto that may be constructed from time to time, and interests in certain other property and rights relating thereto, including, without limitation, such interest in the Agency's Geothermal Generating Project Number 2, as the Agency may determine (the "Project"). The Agency has entered or will enter into one or more agreements (the "Member Agreements".) with certain entities (including two or more of the Members), pursuant to which the enti- ties entering into such Member Agreements with the Agency (the "Participants".) will, in the aggregate, purchase options and/or rights to purchase and/or receive 100% of the capacity and energy of the Project. The City Council heretofore has authorized, by ordi- nance, the issuance and sale by the Agency of its .notes and evidences of indebtedness (including renewal notes) ("Notes") for the purpose of financing studies, the acquisition of options, permits, and other preliminary costs to be incurred prior to the undertaking of the con- struction or acquisition of the Project and for the purpose of pro- viding temporary financing of costs of acquisition and construction · of the Project. The Notes are to be payable from the proceeds of renewal Notes and the proceeds of the Public Power Revenue Bonds authorized by the Ordinance and, to the extent not so paid, may be payable from revenues of the Agency from the Project, including pay- ments to be made by the Participants under the Member Agreements. · Neither the payment of principal of the Public Power Revenue Bonds nor any part thereof nor interest thereon will consti- tute a debt, liability or obligation of the City of Ukiah ; nor does the Ordinance commit the City of Ukiah to take or pay for any capacity or energy of the Project. THE AGENCY PROPOSES TO ISSUE, IN ACCORDANCE WITH THE AGREE- )tENT AND THE JOINT POWERS ACT, ITS PUBLIC POWER REVENUE BONDS TO PRO- VIDE FUNDS FOR THE ACQUISITION, CONSTRUCTION AND FINANCING OF THE PROJECT. THE PUBLIC POWER REVENUE BONDS ARE TO BE PAYABLE FROM FUNDS HELD IN TRUST FOR THE BENEFIT OF THE HOLDERS OF SUCH BONDS AND FROM REVENUES OF THE AGENCY FROM THE PROJECT, INCLUDING PAYMENTS TO BE MADE BY THE PARTICIPANTS UNDER THE MEMBER AGREEMENTS.