HomeMy WebLinkAboutAgenda Report - June 17, 1998 (82)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Northern California Power Agency Geothermal/Hydroelectric Debt Restructuring Certificate of
Instruction
MEETING DATE: June 17, 1998
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Manager be authorized to execute the Certificate of Instruction
(Hydroelectric and Geothermal Projects) (attached).
BACKGROUND: As previously discussed with the Council, the City of Lodi and the other Northern
California Power Agency (NCPA) Hydroelectric and Geothermal Project participants have
been working for over a year to restructure project debt service
payments in order to reach market based electric rates as quickly as possible.
The next document for each restructuring participants to execute is the Certificate of Instruction for the Hydroelectric and
Geothermal Project debt restructuring. By execution of this document, the City of Lodi will authorize NCPA to expend funds
on the City's behalf as an equity contribution at the close of sale of the 1998 bonds. It is proposed that the funds come from
Lodi's share of the General Operating Reserve (GOR) and excess geothermal variable rate debt service accumulated in fiscal
year 1997-98.
The current estimated total amount of contributions by the City of Lodi in support of the debt restructuring are:
$7,083,876 - GOR
506,953 - excess Geothermal variable rate debt service/advance budget settlement
41.420 - GOR (previously authorized Lodi -Turlock Irrigation equalization payment)
$7,632,249 - estimated total
Previously, a contribution of up to $7,500,000 from the GOR was authorized by the Council at the May 20,1998 City Council
Meeting. At this time the Department recommends that the total authorized amount be raised to $7,800,000 from the two
sources of funds shown above. Any funds not used will be retained in the GOR for the City's future needs.
Sufficient funds are available between the City's share of the NCPA GOR and excess Geothermal variable rate debt
service/advance budget settlement.
FUNDING: City of Lodi share of the NCPA GOR and excess Geothermal variable rate debt service/advance budget
settlement.
Funding Available: taAvk_t_
. Vicky McAthi , Finance Director
Prepared by: Jack Stone, Manager Business Planning and Marketing
ANV/JS/lst
c: City Attorney
Finance Director
Alan N. Vallow
Electric Utility Director
CITY COUNCIL
JACK A. SIEGLOCK, Mayor
KEITH LAND
Mayor Pro Tempore
ROBERT J. JOHNSON
STEPHEN J. MANN
PHILLIP A. PENNINO
CITY OF LODE
CITY HALL, 221 WEST PINE STREET
P.O. Box 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702
FAX (209) 333-6807
June 17, 1998
Mr. Dale lain
Treasurer -Controller
Northam California bower Agency
180 Cirby Way
Roseville, CA 95678
RE: CERTIFICATE OF INSTRUCTION
Dear Mr. Lain:
H. DIXON FLYNN
City Manager
RANDALL A. HAYS
City Attorney
ALICE M. REIMCHE
City Clerk
The City of Lodi in consideration of the restructuring of the debt service schedules for the
bonds of the Northern California Power Agency (NCPA) which financed the construction
of the Geothermal Project and the North Fork Stanislaus River Hydroelectric Development
Project with the 1998 Hydroelectric and Geothermal Revenue Refunding Bonds (1998
Bonds), hereby certifies that the City of Lodi directs that its funds in the amount of
$7,700,000 on hand at NCPA in the NCPA General Operating Reserve Account and any
excess Geothermal variable rate debt service accumulated in fiscal year 1997-98 shall be,
at or before the pricing of the 1998 Bonds, committed to, and reserved for remittance to
the closing of the sale of the 1998 Bonds, and the sum of all such amounts shall be held
by NCPA, and paid and expended by NCPA into the closing of the 1998 Bonds, when and
if NCPA determines to close the sale of the 1998 Bonds; otherwise the sum shall be
maintained by NCPA in the NCPA accounts, pending further instruction.
Sincerely,
H. Dixon Flynn
City Manager
HDF/ANVAst
C: Manager, Business Planning & Marketing
RESOLUTION NO. 98-99
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE THE NORTHERN CALIFORNIA
POWER AGENCY GEOTHERMAL/HYDROELECTRIC DEBT
RESTRUCTURING CERTIFICATE OF INSTRUCTION ON BEHALF
OF THE CITY OF LODI
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager
to execute the Northern California Power Agency Geothermal/Hydroelectric Debt
Restructuring Certificate of Instruction on behalf of the City of Lodi.
Dated: June 17, 1998
I hereby certify that Resolution No. 98-99 was passed and adopted by the Lodi
City Council in a regular meeting held June 17, 1998 by the following vote:
AYES: COUNCIL MEMBERS - Land, Mann, Pennino and Sieglock (Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Johnson
ABSTAIN: COUNCIL MEMBERS - None
ALICE M. RE UCHE
City Clerk