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HomeMy WebLinkAboutAgenda Report - August 1, 1984 (62)(M. ND. 1330 Ordinance No. 1330 - Entitled "An Ordinance of the City ADOMM Council of the City of Lodi, California, authorizing the issuance of Public Power Revenue Bonds by NMA (Carbustion Turbine Project No. 1)" having been introduced at a regular meeting of the L -Ai City Council held July 18, 1984 was brought up for passage on motion of Council Nknrbe r Reid, \ Olson second. Second reading of the Ordinance was ornitted after reading by title, and the Ordinance was Vien adopted and ordered to print by the following vote: Ayes: Council Me+rbe rs - Olson, Reid, and N i nchnian Noes: Council Nmibers - Pinkerton Absent: Counc i i MwberG - Snider (Nk;yor ) •lit S`" a�"�$,3'1 IV j y � IDL �, sad �+*y�Sht ' M4 \ Y .. \ r { Z� }�� y .t• `•'-+ ` , lit 1 �1 _!�1 ✓fix` T h: K� t - C �J� f a NOTICE OF CRDIt*= SIBJBCr TO REFER NIXM CITY OF UDI, CAi.IFCRNIA CRDINANC:E NO. 1330 ADOFM BY ME CITY MWIL OF TME CITY OF UDI, CALIFORNIA CN AU= 1. 1984 Notice is hereby given that at a regular meeting of the City Council of the City of Lodi. California (the "City Council"), held on August 1, 1984. Ordinance No. 1330 (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 CFDINANCE OF ME CITY CCLNCIL OF WE CITY OF I.M. CAL I FUN IA AUII CR I Z ING TME I SSLMNGE OF PtBL IC PCIVIM RLVMM BC MS BY •• �a •e•• •• a° • r.a .• . ••4a IMM° •,• a CNE). Summary 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 other evidences of indebtedness ("Acquisition Bonds"). to be issued, from time to time, in one or more installments. In an estimate maxinum aggregate principal amount outstanding at any one time in accordance with their teens of $130,000,000. The actual interest rates on each installment of such Acquisition Bonds or the method of determining such rates will be deten-nined 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 Acquisition Bonds, the Agency is authorized, pursuant to the Ordinance, to issue additional principal mounts of its Acquisition Bonds if and to the extent required to -1- carplete the financing of the acquisition and construction of the Project discussed below. Pursuant to the Ordinance. the city Council has authorized the issuance and sale by the Agency of its Refunding Bonds (which together with the Acquisition Bonds are herein referred to as the "Public Power Revenue Bonds"). and to be issued, frau time to time, in one or more installments in an estirmted rmximtm aggregate principal amount outstanding at any one time in accordance with their teens equal to the sun of (i) $130,000,000, being the estimated maxinum aggregate principal amount of Acquisition Bonds issued and to be issued for the financing of the acquisition and construction of the Project. plus (ii) the principal rrnount of any additional Acquisition Bonds issued to cenplete the financing of the acquisition and construction of the Project, plus (iii) such additional amounts. if any. required to purchase federal securities to Inplement such refunding as provided in Sections 54580 and 53585. inclusive, of the Government Code of the State of California, plus (iv) such additional amounts. if any. necessary ro provide funs sufficient for the payment of principal. interest premium, and expenses as provided in Section 6577 of the Government Code of the State of California. Notwithstanding such estimated maximum aggregate principal amount, the Agency is authorized to issue additional principal amounts of its Refunding Bonds if auxl to the extend required to carplete the financing of the acquisition and construction of tho Project. lbe Agency was created pursuant to a Joint Powers Agreement, as amended (the "Agreement"). heretofore entered into between the City of Lodi, California and certain other public agencies created pursuant -2- 71 to the laws of the State of California (collectively. the "Members") pursuant to the provisions relating to joint exercise of powers found in Chapter S of Division 7 of Title l of the Government Code of the State of California. as mended (the "Joint Powers Act"). The Agency is a pub 1 i c entity separate and apart from the Nimbers . The Agency, in accordance with the Joint Povers Act and the Agreement, has entered or will enter into agreements to acquire and construct (or 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 of number of units, but not less than three, as will be determined in accordance with the terms smd conditions of the Third Phase Agreements (as hereinafter defined) and related facilities, including electric facilities necessary for the Project to interconnect with the adjacent electric systema, and all rights, properties and improvements necessary therefor, including fuel and water facilities and resources, and capital inprovements that rmy 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 the1lbTbers). pursuant to which We entities entering into such Third Phase Agreements with the Agency (the "Participants") will. in the agg-regate, 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 notes and other evidencew of indebtedness (including renewal Motes) ("Notes") for the purpose of financing studies, the acquisition of options. permits, and other -3- e preliminary costs to be incurred prior to the undertaking of the constriction 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 renewal Notes and the proceeds of the Public Power Revenue Bonds authorized by the Ordinance and. to the extend not so paid. may be payable from revenues of the Agency fran the Project, including payments to be made by the Participants under the Third Phase Agreements. Neither the payment of principal of the Public Power Revenue Bonds nor any part thereof nor interest thereon will constitute a debt, liability or obligation of the City of Lodi, California; nor does the Ordinance commit the City of Lodi. California 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 power needs of its customers for electric energy. The Public Power Revenue Bonds will nature on or before November 5, 2030 and will bear interest at the probable or anticipated rate of 12% per annum. THE KE UY PFU C SES TO ISSUE, IN ACOM ANC'E WITH THE ACRE 011' AND THE JOINT MIVE ?S AM ITS, PU13L I C PC WER KEVENUE BCM)S TD PWNIDE R NDS FCR THE FINANCING OF THE ACW 1 S I T I CN AMID CXNb-MUCT ICN OF ME PRCa = . ME, PR I NC I PAL OF AND INTEREST CN THE PUBLIC PCWER R» JE BCI M ARE TO BE PA"VABLE I" RM)S I IEID IN TRUST PQt -4- BENEFIT OF ME HOLDERS OF SUCH DCMS AND FRMI REVENUES OF TIE ACENCY FRMI TIE PROJECT. INCLUDING PAVVEMM TO BE NWE BY TIE Pik-RTICIPAINTM UNDER THE THIRD PHASE AMEM EM. THE CRDINANCE AUHMIZING ME ISSUANCE OF ME PUBLIC POVER, REVENLIE BONDS IS SUBJECT 70 REFEMMil. UPCN PRESENrATICN (WITHIN THE TIM PER CD SPECIFIED BY LAW) OF A PETITION (BEARING SIGMURES, IN AT LEAST THE NUBER REQUIRED 13Y THE LM) PRU17ESTING AGAINST TIE ADOPTICN OF THE CMINANCE, ME MY COUNCIL IS REIQUIRW ID RMOt,1SIDER, THE CIRDINANCE. MiEREUPICN. IF ME CITY CCILWIL DOES NOT ENTIRELY REPEAL. ITIE CRDIMANCE, ME CRDINANCE SHALL BE SU%lITnD (UNDER BAULOr U(MING PRESCRIBED BY LAW) TO THE VUrER:S AT A RB=M CR SPECIAL EMIM AND Tic cmimmm SNAIL Nor BBmiE EFFECTIVE UNTIL A blAJCRITY OF ME. NMIM WrING CN M -IE CRDINANCE VUM IN FAVOR OF IT. ME FaMMING DE9CRIPTICN OF ME PROCEDURES FICR REFERE!qJIM IS BASED UPClN UE APPLICABLE REFERENUAl PFOVISICNS OF ME CAL IFICIRNIA ELEMCM CODE AND ME CAL IFCRNIA 0OVEME,-T ODE. REFMNM IS MADE TO 'M CAL IFU;NIA ELECTICNS CODE AND ME CALIFICMIA GMTEMWr 0ODE FCR A COMPLETE STAMEIr OF SUCM PWVISICNS . -5- CMINANCE NO. 1330 CEDINANCE OF MiE CITY COUNCIL OF ME CITY OF I -(DI, CALIiCMIA, AIJI MIZING TES IMANCL OF PUBLIC PQVM REVENUE BOWS BY NOMMIN CALIF HIIA PAVER k ACEN Y (0M1B bTICN TURBINE PF1OJBCr MBER CNE) NOWAS, pursuant to the provisions relating to joint exercise of powers found in Chapter 3 of Division 7 of Title 1 of the Government Code of the State of California, as amended (the "Joint Powers Act"). the City of Lodi. California and certain other public agencies created pursuant to the Imus of the State of California t (collectively. the "Marbers'). 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 Merdxrs : and VEREAS. 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 consisting of not more than seven 24 -megawatt e«nbustion turbine ..,: generating units or such lesser number of units. but not less than three. as will be determined in accordance with the Lentis and conditions of the Third Phase Agreownt (as hereinafter defined) and related facilities, including electric facilities necessary for the Project to Interconnect with the adjacent electric system, and all rigfits, properties and improvements necessary there -for, Including fuel and water facilities and resources, and capital improvements that may be constructed from time to time (the "Project"); and MO AS. 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 other evidences of sa. indebtedness ("Acquisition Eoncis") to be oasts t and ing at any one time in accordance with their terms in the estimates maximum aggregate principal amount of $130,000,000 for the purpose of providing funds a for the financing of the acquisition and construction of the Project; and WIT]WM. 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, pe preliminary cots to be incurred prior to the permits, and other t. undertaking of the construction or acquisition of the Project and for =' the purpose of providing teporary financing of costa of acquisition 5 and construction of the Project; and MOMS. from time to time, condi=tions in the tax-exempt bond market tray become favorable for refunding outstanding bonds with a resulting savings in debt service costs or other benefits for the € k• c Agency; and WHEREAS, pursuant to Section 6576 of the Joint Powers Act, the Agency may issue from time to time in one or more installments its refunding bonds ("Refunding Bonds" and together with the Acquisition B%,As. the "Public Paver Revenue Bonds") for the purpose of redeeming or retiring Acquisition Bonds or Refunding Bonds theretofore issued, or other indebtedness theretofore issued for the Project; and WHEREAS. the financing of the acquisition and construction of the Project includes the issuance of Refunding Bonds: and W OMAS, notwithstanding the aforesaid estimated maximum aggregate principal amount of Public Power Revenue Bonds proposed to be issued by the Agency for the Project and to be outstanding at any one time in accordance with their terms, additional Public Powerv` Revenua Bonds may be required to complete the financing of the - acquisition and construction of the Project; and;.. MERFAS, the Agency has entered or will en -ter into one or more agreements (the "Ihird Phase Agreements") wit,.. cert-ai-n entities (including two or more of the Members), pursuant to which the entities entering into such Zhird Phase Agreements with the Agency (the "Participants") will, in the aggregate, purchase options andfor rights to purchase and/or receive 100% of the capacity and energy of the Project; and WAS, the principal of And interest on 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 -2- fran the Project. including payments to be rade by the Participants under the Tizird Phase Agreements; and M REAS. the principal of and interest on the Notes are to be payable fran proceeds of renewal Notes and the proceeds of the Public Paver Revenue Bonds and, to the extent net so paid, may be payable from revenues of the Agency fran the Project, including payments to be made by the Partici-pants under the Third Phase Agreements; and U1-MMI%S. in accordance with the Section 6547 of the Joint Powers Act, the exercise by the Agency of its power to issue the Public Paver Revenue Bonds is subject to the authorization of such issuance by the Participants pursuant to ordinance; and 1*11ERE4S. neither the payment of principal of the Public Power Revenue Bonds nor any part thereof nor interest the:*on shall constitute a debt. liability or obligation of the City of Lodi; nor does this Ordinance carmit the City of Lodi to fake or pay for any capacity or energy of the Project. WOMAS. this City Council has determined that the financing 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 custaners for electric energy; and ltitO AS. this City Council has determined that the issuance by the Agency of Refunding Bonds is appropriate to reduce debt service cost related to the Project and reduce the costs of financing the acr, isition and construction of the Project payable by the City under the Third Phase Agreements or to realize other benefits relating to the Pre j c-ct ; am.' V*EFW.AS, this City Council proposes to authorize by ordinance the isst:anc;e and sale by the Agency of its Nates, Which are payable from proceeds of the Acquisition Bonds authorized by this Ordinance and. to the extent not so paid, may be payable fron revenues of the Agency from the Project, including payments received by the Agency from the Participants under the Third Phase Agreements. NOW, TillREFRE, the City Council of the City of Lodi, California does ordain as follows: -3- 1. The issuance and sale by the Agency, frau time to time, in one or more installments, of its Acquisition Bonds for the financing of the acquisition and construction of the Project outstanding at any one time in accordance with their terms in a nmaxia m aggregate principal amount of $130,000.000 is hereby authorized. Notwithstanding such maximtm aggregate principal amount. the Agency is hereby authorized to issue additional prineipai amounts of its Acquisition bonds if and to the extend required to complete the financing of the acquisition and construction of the Project. The proceeds from the sale of the Acquisition Bords hereby authorized are to be used for the financing of the acquisition and construction of the Project. including interest on such Bonds and deposits to reserves. and to pay when due the pri-ncipal. premiun. if any, and interest on the Notes cf the Agency issued 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 the costs of acquisition and construction of the Project. 'lhe Acquisition Bonds hereby authoriz,:1, and premiun and interest thereon, are to be payable from. and secured by. funds held in trust for the benefit of the holders of Acquisition Bonds and fran revenues of the Agency from the Project, including payments received by the Agency from the Participants under the Third Phase Agreements. 2. The issuance and sale by the Agency, from time to time, in one or more installments, of its Refunding Bonds is hereby authorized. The estimated mm ax-iu m aggregate principal amount of such Refunding &ands outstanding at any one time in accordance with their } r terms shall be an amount equal to the swim of (i) $130,000.000, being the estimated maxinmtm aggregate principal ammunt of Acquisition Bonds issued and to be issued for the finwncing of the acquisition and construction of the Project, plus (ii) the principal am unt of army ✓S additional Acquisition Bonds issued to complete the financing of the acquisition and construction of the Project. plus (iii) such additional amounts, if any, required to purchase federal securities to -4- a t implement such refunding as provided in Sections: 53580 and 53585, inclusive, of the Goverrment Code of the State of California, plus (iv) such additional amounts, if any. necessary to provide funds sufficient for the payment of principal, interest. premium and expenses as provided in Section 6577 of the Government Code of the State of California. Notwithstanding such estimated maximum aggregate principal amount. the Agency is hereby authorized to issue additional principal amounts of its Refunding Bonds if and to the extend required to carplete the financing of the acquisition and construction of the Project. The proceeds from the sale r: the Refunding Bonds hereby authorized are to be used for the purpose of redeeming or retiring the Acquisition Bonds. Refunding Bonds or other indebtedness to be refunded as aforesaid. The Refunding 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 the Refundi-ng Bands and from the revenues of the Agency with respect to the Project, including payments received by the Agency from the Participants under the lhird Phase Agreenents. 3. The authorization provided to the Agency by Section 2 above shall not apply to any installment of Refunding Bands unless the Agency shall determine that a present value savings of debt service will result from the issuance of such Refunding Bonds or that other benefits relating to the acquisition and construction of the Project will be realized therefrom. 9. Pursuant to Section 6597 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. 5. 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. 6. Sixty (60) days from and after its enactment, this Ordinance shall take effect and be in full force, in the manner provided by law. 'r i -5- TM FCRBCK)ING CRDINANCE is approved, enacted and .adopted by the City Council of the City of Lodi. California, this 1st day of August, 1984. yor Attest: Alice R1. Reimche City Clerk State of California County of San Joaquin. ss. 1. Alice M. Reimche, City Clerk of the City of Lodi do hereby certify that Ordinance No. 1330 was introduced at a regular meeting of the City Council of the City of Lodi held July 18, 1984 and was thereafter passed, adopted and ordered to print at a regular meeting of said Council held August 1. 1984 by the following vote: Ayes: Council Members - Hinchman, Olson, and Reid Noes: Counc i 1 Menge rs - Pinkerton Absent: Council limbers - Snider Abstain: Council himbers - None I further certify that Ordinance No. 1330 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Alice M. Reimche City Clerk