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HomeMy WebLinkAboutAgenda Report - September 18, 1985 (85)TRANSMISSION AGENCY OF NORTHERN CALIFORNIA (TANC) FINANCING ORDINANCE INTRODUCED ORD. NO. 1365 A proposed ordinance entitled, "An Ordinance of the City of Iodi. Authorizing the Trarsmission Agency of Northern California to s Issue Revenue Bonds, Notes and Other Evidences of Indebtedness" was presented for Council's approval. Council was apprised that this action is the next step in realizing the completion of the construction of the proposed 500 -KV transmission line between Central California and Southern Oregon. This ordinance will authorize IANC to issue revenue bonds in an amount not to exceed $20,000,000 to fund a project comprised of: a) feasibility and planning studies for possible future action by TANC concerning the proposed project. b) repayment of the $3,500,000 Promissory Note issued by TANC on June 21, 1985 for the purpose of financing such feasibility and planning studies; and c) project costs for project development work As with the promissory note issued earlier, neither the pay -, t of the principal of the indebtedness nor any part thereof nor interest on the principal shall constitute a debt, liability or obligation of the City of Lodi. The project participants include not only the Northern California Pacer Agency (NCPA) cities, but six Southern California cities, the Sacramento Municipal Utility District, the State of California, the Federal Government, and three -investor-owned utilities including the Pacific Gas and Electric Company. Council discussion followed with questions being directed to Staff. Council Menber Snider then moved for introduction of Ordinance No. 1365 - An Ordinance of the City Council of the City of Lodi Authorizing the Transmission Agency of Northern California to Issue Revenue Bonds, Notes, and Other Evidences of Indebtedness. The motion was seconded by Council Member Olson, and carried by the following vote: AXES: Council Members - Olson, Reid, Snider, and Iii.nchman (Mayor) NOES: Council Members - Pinkerton ABSENT: Council Meniners - None ABSTAIN: Council Members - None OUNCiL C0MMUNICATY'IN O :THE CITY COUNCIL FROM:. THE CITY MANAGER'S OFFICE DATE September 18, 1985 SUBJECT: TRANSMLISSION AGENCY OF NORTfiEFtN CALIFORNIA (TANC) FINANCING ORDINANCE RECOMMENDED ACTION: That the City Council introduce Ordinance No. "An Ordinance of the City of Lodi Authorizing the Transmission Agency of Northern California to Issue Revenue Bonds, Notes and Other Evidences of Indebtedness". BACKGROUND INFORMATION: This action is the next step in realizing the completion of the construction of the proposed 500 -KV transmission line between. Central California and Southern Oregon. This ordinance will authorize TANC to issue revenue bonds in an amunt not to exceed $20,000,000 to fund a project comprised of: a) feasibility and planning studies for possible future action by TAMC concerning the proposed project. b) .repayment of the $3,500,000 Prcmissory Note issued by TANC on June 21, 1985 for the purpose of financing such feasibility and planning studies, and c) project costs for project development work. As with the promissory note issued earlier, neither the payment of the principal of the indebtedness nor any part thereof nor interest on the principal shall constitute a debt, liability or obligation of the City of Lodi. As the Council is aware, the project participants include not only the Northern California Power Agency (NCPA) cities, but six Southern California cities, the Sacramento Municipal Utility District, the State of California, the Federal Government, and three investor -awned utilities including the Pacific Gas and Electric Company. As of this writing, the actual ordinance to be acted on has not arrived from the offices of TANC's general counsel. We will have it for distribution prior to Wednesday night's meeting. Me staff will be prepared to answer any questions Councilmembers may have. Respectfully submitted, Thomas A. Peterson City Manager TAP: ji NO. AN ORDINANCE OF THE CITY OF LODI AUTHORIZING THE TRANSMISSION AM Y OF NORTHERN CALIFORNIA TO ISSUE REVENUE BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS The City Council of. the City of Lodi does ordain as follows: Section 1. The Transmission Agency of Northern California (the "Agency") organized under that certain Joint Powers Agreement dated December 10, 1984, to which this city is a party, is hereby authorized to issue revenue bonds, notes or any other evidences of indebtedness and to renew all of the same (hereinafter referred to as "Indebtedness") payable from the revenues of the Agency unless paid from the proceeds of indebtedness, pursuant to the provisions of Article 2 (ening with Section 6540), Chapter 5, Division 7, Title 1 of the Government Code of the State of California (the "Act"), in a maximum amount of twenty million dollars ($20,000,000), for the project described in Section 2 hereof, provided that, notwithstanding the statement of such maximVZn amount, the Agency is also authorized by this Ordinance to issue the Indebtedness in amounts which may exceed such estimate without furtaher authorization under this Ordinance if and to the extend such additional indebtedness shall be required to c:cniplete the financing of the project described ir. Section 2 hereof. Section 2. The project to be funded by the Indebtedness hereby authorized as ccmirised of (a) feasibility and .manning studies for possible future action by the Agency concerning the proposed California -Oregon Transmission Project; and (b) repayment of the $3,500,000 Promissory Note issued by the Agency on June 21, 1985 for the purpose of financing such feasibility and planning studies. Section 3. The anticipated sources of revenue for the payment of the Indebtedness herein authorized to be issued by the Agency are x revenues derived from payments from menb,--rs of the Agency and proceeds, of Indebtedness issued in connection with the f3.nancing of tYw- project. r fir` 2'L^Jid and be in force sixty (60) days from the date of its adoption. Section 6. The City Clerk is hereby directed to cause this Ordinance to be published after its adoption, as provided by law, in a newspaper of general circulation within the City and shall also do other things re:T.tired W cause notice of the adoption of this Ordinance to be published in the manner required by Section 6040.1 of the Government Code of the State of California. I HERESY CERTIFY that the foregoing Ordinance was introduced and read at a regular meoting of the City Council of the City of Lodi on the 18th day of Septenbex, 1985 and was duly read and adopted on the day of 1985, at a regular meeting of the by the following vote: Ayes: Noes: Absent: Authorized Officer Attest - Authorized Officer FOW APPROVED: Authorized Officer