HomeMy WebLinkAboutAgenda Report - June 3, 1981 (64). $, til, ',,•i4.y.3_� 1
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08D MO. 1228
1) Ordinance'-'Authorising"the Northern =ry
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r; `California -Power Agency toissue_�Zteveriue '
r NO. 1229
Bonds {NCPA Project'No. 1 - Development
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Fnnd'Aonds)
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is to have in place a legal mechanism at which
'Oidinancs ]authorizing the Northern Cali
financing for the project can proceed.
fornix Power Agency to Issue. Revenue
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Bonds (::_Shell East Block.Project - Seaond
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Phase -Bonds)
3) Member Agreement (Second Phase) for
financing of Planning and Development
Actiifi€tiew of the Shell East Brock -
-Geothermal.Pxoject
The City Manager reported that the purpose of
the financing ordinances is to allow the Agency
to obtain the lowest interest rate._ ssible by
issuing tax-exempt bonds and/or notes. The Agency
is tax exempt= however, its non-profit power
corporations are not and each corporation requires
a special ruling from the internal Revenue Service
to be eligible to issue tax-exempt bonds and/or
notes and this can be quite time consuming. If
these ordinances -pass., the Agency will borrow the
money, and in turn, lend it to the necessary
power corporation. The ordinance dealing with the
fnancing-for Power Corporation No. One (RFL)
-will be taken out of Development Fund payments
already pledgedand will cause no increase in
obligations other than those presently made by
-those cities participating in the R.F. Project.
Although some members are not participating in
the RFL project, all members must approve this '
ordinance even though non -participating members
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will not incur any financial obligations.. This
nder
is a requirement of the enabling legislation under-
which the Agency was formed.
which
The Member Agreement for the -Shell East Block.projeet s.
is to have in place a legal mechanism at which
financing for the project can proceed.
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Following a lengthy discussion with..questlons
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being directed to Staff, Council took the fcalowing;.,
actions concerning these items.='
Councilman Katnich then moved for introduction of "
Ordinance No. 1228 - Ordinance authorizing the
Northern California Poweren
Ag cy to issue- Revenue ;,
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Bonds (NCPA Project No. 1 - Development,Fund
Bonds). The motion was seconded by Mayor Pro
Tempore Murphy and carried by unanimous vote..
Mayor Pro Tempore Murphy moved for introduction
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of Ordinance No. 1229 - Ordinance authorizing;: the
Northern California Power Agency to'issue Revenue
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Bonar (Shell East Block Project = Second: Pha'se N.
Bonds). The motion was seconded by Councilman
Hughes and carried by unanimous vote.'•
On motion of Mayor Pro Tempore Murphy, Hughes
second, Council deferred action on agenda iter '
"v" - "Member Agreement (Second Phase for financ-
ing of Planning and Development Activities of the
Shell East Block Geothermal Project" to the regular
Council meeting of July 1, 1981.