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HomeMy WebLinkAboutOrdinances - No. 1330QRDINANCE NO. 1330 WINANCE OF 'ME CITY mIL OF THE CITY OF LQDI, CALIJKENIA, AUIlXRIZINGIIHE ISSUANCE OF FUBLIC KNEEt REVENUE Bcx1I)G BY MXIHEFN CALIFUWIA Paww AmxY (-1m TtwBINE pI1IDJM;T "Bw. m) WEREAS, pursuant to the provisions relating to joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of the Cbverrnnent 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 laws of the State of California (collectively, the 'Wersff), have entered into a Joint Powers Agreement, as amended (the TIAgreementlt), creating Northern California Power Agency (the "Agency"), a public entity separate and apart from the Menhers; and WEREAS, 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 carbustion turbine generating units or such lesser nuher 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 facilities, including electric facilities necessary for the Project to interconnect with the adjacent electric system, and all rights, properties and inprovements necessary therefor, including fuel and water facilities and resources, and capital inprovements that may be constructed from time to time (the TTProjectft); and WEREAS, 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 indebtedness ("Acquisition Bonds") to be outstanding at any one time in accordance with their terms in the estimated maxim aggregate principal amount of $130,000,000 for the purpose of providing funds for the financing of the acquisition and construction of the Project; and -1- WHWEAS, 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 WEREAS, from time to time, conditions in the tax-exqt bond market my become favorable for refunding outstanding bonds with a resulting savings in debt service costs or other benefits for the 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 (Vkfunding Bonds" and together with the Acquisition Bonds, the Vublic Power 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 WNEREAS, the financing of the acquisition and construction of the Project includes the issuance of Refunding Bonds; and WHEREAS, notwithstanding the aforesaid estimated maximun 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 Power Revenue Bonds may be required to conplete the financing of the acquisition and construction of the Project; and WHWEAS, 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 andlor receive 100% of the capacity and energy of the Project; and WHEREAS, 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- from the Project, including payments to be made by the Participants under the Third Phase Agreements; and WHHiEAS, the principal of and interest on 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 made by the Participants under the Third Phase Agreements; and WEREAS, in accordance with the Section 6547 of the Joint Powers Act, the exercise by the Agency of its power to issue the public Power Revenue Bonds is subject to the authorization of such issuance by the Participants pursuant to ordinance; and "EAS, 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 Lodi; nor does this Ordinance cornnit the City of Lodi to take or pay for any capacity or energy of the Project. WHEREAS, 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 customers for electric energy; and WHEREAS, 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 acquisition and construction of the Project payable by the City under the Third Phase Agreements or to realize other benefits relating to the Project; and WEFtEAS, this City Council proposes to authorize by ordinance the issuance and sale by the Agency of its Notes, which are payable from proceeds of the Acquisition Bonds authorized by this Ordinance 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. Now, m, the City Council of the City of Lodi, California does ordain as follows: -3- 1. The issuance and sale by the Agency, from 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 tern in a maxim aggregate principal amount of $130,000,000 is hereby authorized. Notwithstanding such maxim aggregate principal munt, the Agency is hereby authorized to issue additional principal amounts of its Acquisition bonds if and to the extend required to corrplete the financing of the acqisition and construction of the Project. The proceeds from the sale of the Acquisition Bonds 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 principal, premim, if any, and interest on the Notes of 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 tenporary financing of the costs of acquisition and construction of the Project. The Acquisition Bonds hereby authorized, and premium and interest thereon, are to be payable fran, and secured by, funds held in trust for the benefit of the holders of Acquisition Bonds and frm revenues of the Agency from the Project, including payments received by the Agency from the Participants under the Third Phase Agreements. 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 maximun aggregate principal amount of such Refunding Bonds outstanding at any one time in accordance with their tern shall be an amount equal to the sun of (i) $130,000,000, being the estimated maxim 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 munt of any 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 2. -4- inplement such refunding as provided in Sections 53580 and 53585, inclusive, of the Government 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 Govemnt Code of the State of California. Notwithstanding such estimated maxim aggregate principal amount, the Agency is hereby authorized to issue additional principal amounts of its Refunding Bonds if and to the extend required to cqlete the financing of the acquisition and construction of the Project. The proceeds from the sale of 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 Refunding Bonds and from the revenues of the Agencywith respect to the Project, including payments received by the Agency from the Participants under the Third Phase Agreements. 3. The authorization provided to the Agency by Section 2 above shall not apply to any installment of Refunding Bonds 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. 4. 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. 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 Cal i f orni a. 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. -5- ?HE lKRED3ING CSDINANCE is approved, enacted and adopted by the City Council of the City of Lodi, California, this 1st day of August, 1984. Attest: Alice M. Reimehe City Clerk State of California County of San Joaquin, ss. I, Alice M. Reimche, City Clerk of the City of Jbdi 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 meting of said Council held August 1, 1984 by the following vote: Ayes : Council Wers - Hinclnnan, Olson, and Reid Noes : Council Wers - Pinkerton Absent: Council Wers - Snider Abstain: Council Wers - None I further certify that Ordinance No. 1330 was approved and signed by the Nayor on the date of its passage and the same has been published pursuant to law.