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HomeMy WebLinkAbout835I86 [Note: Ordinance to be adopted Bonds Ordin. - ORDINANCE NO._ 835 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF - 'UKAIH _ AUTHORIZING THE ISSOANCE OF NOTES BY NORTHERN CALIFORNIA POWER A~ENCY (COMBUSTION TURBINE PROJECT NUMBER ONE) . WHEREAS, pursuant to the provisions relating to joint exer- cise of powers found in Chapter 5 of Division 7 of 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-agen- cies creat-ed pursuant to the laws of the State of California (collectively, the ."Members~"), 'have entered into a Joint Powers Agreement, as amended. (the :'Agreement.'_!), creating 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 not more than seven 24-megawatt combustion turbine gener- ating units or such lesser number of units, but not less than three, as will be determined in accordance with the terms and conditions of the Third Phase Agreement (as hereinafter defined) and related facil- ities, including electric facilities necessary for the Project to interconnect 'with the adjacent electric system, and all rights, .prop- erties and improvements necessary therefor, .including fuel and water facilities and resources, and capital improvements that may be con- structed from time to time (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 notes and other evidences of indebtedness (including renewal notes) (:'Notes..'~') to be outstanding at any one time in accordance with their terms in the estimated maximum aggregate principal amount of $130,000,000; for the purpose of financing studies, the acquisition of options, permits, and other preliminary costs to De 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, the Agency proposes to issue its revenue bonds and other evidences of indebtedness -.Acquisition Bonds.'.') for the purpose of providing funds for the financing of the acquisition and construc- tion of the Project; and -u~na~, no=wlr_ns=analng the aforesaid estimated maximum aggregate principal amount of Notes proposed to be issued by the Agency for the Project and to be outstanding at any one time in accordance with their terms, additional Notes may be required to com- plete the financing of 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 or to complete the temporary financing of costs of acquisition and construction of the Project; and WHEREAS, the Agency has entered or will enter into one or more agreements (the "Third Phase Agreements") with certain entities (including two or more of the Members), pursuant to which the enti- ties entering into such Third Phase 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 Notes are to be renewable from time to time and the principal of and interest on the Notes are payable frcm pro- ceeds of renewal Notes and the proceeds of the Acquisition Bonds and, to the extent not so paid, may be payable from revenues of the Agency from the Project, including payments to be made by the Participants under the Third Phase Agreements; and WHEREAS, in accordance withI seCtion 6547 of the Joint Powers Act, the exercise by the Agency of its power to issue the Notes is subject to the authorization of such issuance by the Participants pursuant to ordinance; and WHEREAS, neither the payment, of principal of the Notes nor any part thereof nor interest thereon shall constitute a ~ebt, liability or obligation of the City of UKI^H _.. ; nor does this Ordinance commit the City of UKIAH to take or pay for any capac- ity or energy of the Project; and WHEREAS, this City Council has determined that the financ- ing of the acquisition and construction of the Project by the Agency is appropriate to assist the City in meeting the future power needs of its customers for electric energy; and ~ WHEREAS, this City Council has authorized by Ordinance the issuance and sale by the Agency of its Acquisition Bonds, the pro- ceeds from the sale of which are to be used for the financing of the acquisition and construction of the Project, including interest on such Acquisition Bonds and deposits to reserves, and to pay the prin- cipal, premium, if any, and interest on the Notes authorized by this Ordinance when due. NOW, THEREFORE, the City Council of the City of ..... .UK!AH . does ordain as follows: 1. The issuance and sale by the Agency from time to time, in one or more installments, of its Notes (including renewal 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 pro- viding temporary ~financing of costs of acquisition and con- struction of the Project, outstanding at any one time in accordance with their terms in a maximum aggregate princi- pal amount of $130,000,O00 is hereby authorized. Notwithstanding such maximum aggregate principal amount, the Agency is hereby authorized to issue additional princi- .pal amounts of Notes if and to the extent required to com- plete the financing of 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 or to complete the temporary financing of costs of acquisition and construction of the .Project. The proceeds from the sale of the Notes hereby authorized are to be used for the purpose of financing financial .feasibility studies, environmental impact studies and other studies relating to the °Project, 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, including interest on the Notes. The Notes hereby, authorized are to be renewable ~rom time to time and the principal of such Notes, and premium, if any, and interest thereon, are to be payable trom proceeds of renewal Notes and the proceeds of Acquisition Bonds of the Agency and, to the extent not so paid, may be payable from revenues of the Agency from the Project, including .payments received by the Agency from the Participants under the Third Phase 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. 187 188 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. TEE FOREGOING ORDINANCE is approved, enacted and adopted by the City Council of the City of UKIAH _, this ]5TH day of _ AUGUST , 1984. ATTEST: ~//~~ CITY CLERK MAYOR NOTICE OF ORDINANCE SUBJECT TO REFERENDUM~' CITY OF UKIAH ORDINANCE NO. 835 ADOPTED BY THE CITY COUNCIL OF THE CITY OF UKIAH ON _._Au_qust 15 _, 1984 189 Notice is hereby given that at a regular mee~i~g of City Council of the City of _UKIAH (the ."City Counc~2.'~, held on _Auqus.t ]5. _, 1984, Ordinance No. 835 (the .'.'©rdinancez')'.~as ~.dopted. The title and a summary of the Ordinance are set fort_b Ordinance is subject to referendum, as discussed below.. Title ORDINANCE OF THE CITY COUNCIL OF THE CITY 0¥' ~'JfS.~ AUTHORIZING THE ISSUANCE OF NOTES BY NORTHERN CALIFORNIA ~,.~3~ ~55~ AGENCY (COMBUSTION TURBINE PROJECT NUMBER ONE) . Summary Pursuant to the Ordinance, the City Council 'has am.~2~ized the issuance and sale by Northern California Pe%~..r A~eacy (the ;~Agency.") of its notes and other evidences of ~.d;e~tedness (including renewal notes) (.Notes..), to be issued, from t[~e.~ to time, in one or more installments, in. an estimated aggregate, principal amount outstanding at any one time in accordance with the~ re~ of $130,000,000. The actual interest rates on each installm~n~ of such Notes or the method of determining such rates will be det=_.r~,i~ed by. the Commission of the Agency in accordance with law at ~he~ time of' issuance of such installment. Notwithstanding such maxim~, aggregate principal amount of Notes, the Agency is authorized, purs~· to the Ordinance, to issue additional principal amounts of its Ne~es if and to the extent required to complete the financing of stud'~ies, the acquisition of options, permits and other preliminary cests~ to be incurred prior to the undertaking of the construction or ac~sition of the Project or to complete the temporary financing of casts of acquisition and construction of the Project discussed be~.o~~. 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 .provisions relating to the joint exer- cise-of powers found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, as amended (the 2Joint 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 agreements to acquire and construct (or to cause to be acquired and constructed) a project for the generation and transmission of electric energy consisting of not more than seven 24-megawatt combustion turbine generating units or such lesser number of units, but not less than three, as will 'be determined in accordance with the terms and conditions of the Third Phase Agreements (as hereinafter defined) and related facilities, including electric facilities necessary for the Project to intercon- nect with the adjacent electric system, and all rights, properties and improvements necessary therefor, including fuel and water facili- ties and resources, and capital improvements that may be constructed from time to time (the "Project"). The Agency has entered or will enter into one or more agreements (the "Third Phase Agreements") with certain entities (including two or more of the Members), pursuant to which the entities entering into such Third Phase 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 ordinance, the issuance and sale by the Agency of its Acquisition Bonds to provide funds for the financing of the acquisition and con- struction of the Project. The principal of and interest on the Acquisition 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 Third Phase Agreements. 190 ! Neither the payment of principal of the Notes nor any part thereof nor interest thereon will constitute 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 City Council has determined that the financing of the acquisition and construction of the Project is appropriate to assist the City in meeting the future po. wer needs of its customers for electric energy, i ~ The.Notes will mature within seven years from the date of issuance thereof and will bear interest at the probable or antici- pated rate of 11% per annum. THE AGENCY PROPOSES TO ISSUE, IN ACCORDANCE WITH THE AGREE- MENT AND THE JOINT POWERS ACT, ITS NOTES (INCLUDING RENEWAL 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. THE PRINCIPAL OF AND INTEREST ON THE NOTES ARE TO BE PAYABLE FROM THE PROCEEDS OF RENE~AL NOTES AND FROM 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 MADE BY THE PARTICIPANTS UNDER THE THIRD PHASE AGREEMENTS. THE ORDINANCE AUTHORIZING THE ISSUANCE OF THE NOTES IS SUBJECT TO REFERENDUM. UPON PRESENTATION (WITHIN THE TIME PERIOD SPECIFIED BY LAW) OF A PETITION (BEARING SIGNATURES, IN AT LEAST THE NUMBER REQUIRED BY THE LAW) PROTESTING AGAINST THE ADOPTION OF THE ORDINANCE, THE CITY COUNCIL IS REQUIRED TO RECONSIDER THE ORDINANCE. THEREUPON, IF THE CITY COUNCIL DOES NOT ENTIRELY REPEAL THE ORDINANCE, THE ORDINANCE SHALL BE SUBMITTED (UNDER BALLOT WORDING PRESCRIBED BY LAW) TO THE VOTERS AT A REGULAR OR SPECIAL ELECTION AND THE ORDINANCE SHALL NOT BECOME EFFECTIVE UNTIL A MAJORITY OF THE VOTERS VOTING ON THE ORDINANCE VOTE IN FAVOR OF IT. THE FOREGOING DESCRIPTION OF THE PROCEDURES FOR REFERENDUM IS BASED UPON THE APPLI- CABLE REFERENDUM PROVISIONS OF THE CALIFORNIA ELECTIONS CODE AND THE CALIFORNIA GOVERNMENT CODE. REFERENCE IS MADE TO THE CALIFORNIA ELECTIONS CODE AND THE CALIFORNIA GOVERNMENT CODE FOR A COMPLETE STATEMENT OF SUCH PROVISIONS. NOTICE OF ORDINANCE SUBJECT TO REFERENDUM' CITY OF UKIAH ORDINANCE NO. 835 ADOPTED BY THE CITY COUNCIL OF THE CITY OF _UKIAH ON Au.~ust ]5 , 1984 191 Notice is hereby given that at a regular meeting of the City Council of the City of UKIAH (the ."City Council.':.), held on Auq~ust ]5., 1984, Ordinance No. 835 (the i.'©rdinanceZ')~.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 NOTES BY NORTHERN CALIFORNIA' POWER AGENCY (COMBUSTION TURBINE PROJECT NUMBER ONE) . Summary Pursuant to the Ordinance, the City Council 'has authorized the issuance and sale by Northern California Power Agency (the ;~Agency.") of its notes and other evidences of indebtedness (including renewal notes) (."Notes/~), to be issued, from time to time, in one or more installments, in-an estimated aggregate principal amount outstanding at any one time in accordance with their terms of $130,000,000. The actual interest rates on each installment of such Notes 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 Notes, the Agency is authorized, pursuant to the Ordinance, to issue additional principal amounts of its Notes if and to the extent required to complete the financing of 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 or to complete the temporary financing of costs of acquisition and construction 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 .provisions relating to the joint exer- cise-of powers found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, as amended (the ZJoint Powers Actl'). 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 agreements to acquire and construct (or to cause to be acquired and constructed) a project for the generation and transmission of electric energy consisting of not more than seven 24-megawatt combustion turbine generating units or such lesser number of units, but not less than three, as will 'be determined in accordance with the terms and conditions of the Third Phase Agreements (as hereinafter defined) and related facilities, including electric facilities necessary for the Project to intercon- nect with the adjacent electric system, and all rights, properties and improvements necessary therefor, including fuel and water facili- ties and resources, and capital improvements that may be constructed from time to time (the "Project"). The Agency has entered or will enter into one or more agreements (the "Third Phase Agreements") with certain entities (including two 'or more of the Members), pursuant to which the entities entering into such Third Phase 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 ordinance, the issuance and sale by the Agency of its Acquisition Bonds to provide funds for the financing of the acquisition and con- struction of the Project. The principal of and interest on the Acquisition 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 Third Phase Agreements.