HomeMy WebLinkAboutORD 3287.. '
ORDINANCE NO. 3287
ORDINANCE OF THE COUNCIL OF TiTI:-({TY OP PALO l\L'rO
!,UTHORIZING THE NORTHERN CALH'ORNIA POWER AGENCY
TlJ lSSlJC REVENUE BONDS (NCPA PRO,JECT NO. 1 -
DEVF; L,OPM ENT f'UNDS 80NDS
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Northern Califo~nia Power Agency o~ganized unde~ that
cer.tain ,JointPowers Agr-eement to which this City is a party 1 datea
July 19, 1968, as amended ("NCPA") is authorized pursuant to Section
6547 of the Government Code to issue bonds, notes including bond anti
cipation notes o~ other evidences of indebtedness (to be hereinafter
referred to as "Development Fund Bonds") to the full extent permitted
by the provisions of Section 6540 et seq. of the Government Code (the
"Bond Act"').
SEC~ION 2. The project to be temporarily financed by the Develop
ment Funn._Bon-cfs herehy authorized i~> the purchase of the right to ob
t~in electrical c~pitcity produced by Northern California Municipal
PO'<'r'(".( Corp,)r::tion No. One" a nonprofit corpot·ation (the 11 Corporatio.n 11 ),
which hds aqc0tc:d tu act on behalf of NCPA to conduct exploratory drill
in9 fo::· qenlherma.l st~:Dm wells to b1.~ dev(::1oped as the f.irst step i.n the
acquisition, construction, maintenance and operation of a power plant
a.nd :> th 21-f ac i 1 .it .i es and appur-tenances necessary or •::onvenient to such
pl.:-mt, including t.~:.?.nsrnis~-;Lon lin.~s and geothermal steam wells ("Pr.o
ject'') ( i:.aid geotherrr .. :d stc~~'im to be produced fr-om C'2t~tain leasehold
inten~st.~:; acquired by Corporation in Lake Cotwty( under an "Agreement
for Sale and Purchase of Geothermal. Leasesn between NCPA, Corporation
And the Trustee in Bankruptcy of Resource Funding Ltd. dated January
24 f 1980, and approved by aupropr iate deere(} of the Bankruptcy Court).
SECTIO~ 3. The e~>tirnated amount of Development Fund Bonds to be
issuedfOr the purposes descdhed in Section 2 is Five Million Dollars
($5,000,000); provided that nothing herein shall be deemed to prevent
the issuance of additional Development Fund Bonds to the extent such
additional bonds are req11ired to complete the temporary financing of
the project described in Section 2 hereofr including the issuance of
bond anticipation notes and refunding bonds therefor.
SECTION 4. The anticipated sources of revenue or other funds to·
~ay the pr1ncipal and interest on the Development Fund Bonds are pay
ments under. the Development Fund Agreement "NCPAN Member Agr€ernent for
Participation in Electrical PolfJer Development" entered into between
certain members of NCPA and NCPA on July 1, 1975, revised May 1, 1978,
and amended Apri~ 26, 1979, or additional Development Fund Bonds (in
cluding additional Development Fund Bonds used for refunding purposes)~
provided further such sources shall also include the proceeds of pro
ject revenue bonds payable from revenues for electricity generated from
the project, separately authorized pursuant to Section 6547 of the Bond
Act by subsequent ordinance for the purpose of permanent financing of
the Project ("Project Revenue Bonds~) or bond anticipation notes in
anticipation of the Project Revenue Bonds; in addition, such Develop
ment Fund Bonds may be secured by a guarantee, letter of credit or
other obligations or funds of a bank or private financial institution.
This ordinance does not increase a Development Fund member's obli
gation under said existing Development Fund Agreement which may only be
increased by consent of said member hereafter.
SECTION 5. The Cities of Palo Alto and Reddiny are not partici
pants in the acquisition, construction, maintenance, operation or
financing of the Project and nothing in this ordinance shall mean or be
construed to mean that auch cities have assumed or agreed to assume any
financial or other responsibility or liability associated with the ac
quisition, construction, maintenance, operation or financing of the
Pr:ojeC't.
' ..
SEC'l'ION 6. Th.ls or<iinanc('~ is suhjt:>ct to the provisionB for refer
endum-prescrthed by SF>ction 3751.7 of the Elections Code of the Gtate
of California. Subject to the foregoing, this ordinance shall take ef
fect and be in force sixty (60) days from the date of adoption.
SECTION 7. The City Clerk of the City is hereby directed to cause
this or<rrna.n-ce to be publ ishE>rl within fifteen ( 15) days after its adop
tion in a newspaper of general ciruclation within the City of Palo Alto
and shall also do all of the things required to 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 3tate of California.
INTRODUCED~ Jw~e 81 1981
PASSED:
A YES: P.cchtc:l, Eycdy, Llzzino 1 Fletcher, rkmderson, Kle_i_n, Renzel, VVitherspoon
AT""'Fr..~.T-/ J ' •• ~ r· • :\ ·.
· 1 1 t c~· / ~ . V r //';( ./, " 11 {' · .. .rt /Yv4'\_ , '-._1(...-£. .. ,..-..... ·~--'/,.. .... _____ ...... _.. ... --.. -,: ... --"·----.................. -... ~ .. --··-r-· l:-t. ' C 1 "'.,. ..•• , .__ l \. y ,, '· 7 t)
(/ P..PPROVF:D AS TO FUR11:
;.\PPROVED:
"7 ·? ' I tc:..t.:-~2"u_tkb.?~:~~4--~~ayor