HomeMy WebLinkAboutORD 3298• ORIGINAL
ORDINANCE NO. 3298
ORDINANCE 0!-' THE COUNCIL Or' TH~~··c~f•ry OF PM.JO ALTO
AUTHORIZING THE NORTHERN CALIFORNIA POWER AGENCY
TO ISSU~ RBVENUE BONDS (SHELL EAST BLOCK PROJECT -
SECOND Pf!ASE HONDS)
The Council of the <:ity of Palo Alto does ORDAIN as follows:
SECTION 1. Northern California Power Agency organized under
that ~tainSoint Powers Agreement to which this City is ,~ party,
dated July 19, 1968, as amended ("NCPAn) is authorized pursuant to
Section 6547 of the Government Code to issue bonds, notes, including
bond anticipation notes, or other evidences of indebtedness (to be
hereinafter referred to as ~second Phase Bonds") to the full extent
pE-rmitted by the provisions of Section 6540 et ~9,~ of the Government
Cod12 (the .. Bond Act M}.
SECTJC':N 2. The project. to be temporar~ily financed by the Second
Ph,'l.se Bon(is~ht;t-eby authm:ized is the purchase of the r.iqht to obtain
~:1ectJic~l cauacit.y produced by ~orther-n Califr:n:rda Municipal Power
Curp·JJ.'.Jtiun ~:o, Tr·!ree, non.pt·ofit ccr:poration (the HCot·poration"),
'l'lrn c n h c<> '~(l r·,:c,':i tc> act nn beha 1 f of N CPA to ca n·:y out. the acqu is i
tionf cn;1stTuctionf maintenance, and operation of a power plant and
other faciliti;::s and app!l!:'ten.)nces necessary or convenient to such
plant, includin·~ t:ransm'ission .Lines and t_Jeothe:rmal st(~am wells ("Pro
ject'~) (said q·~other:mal steam to be p~~oducf1d from certain leasehold
i n~>:'t-~7SU.> i :1 Sonom . .;;. County 1 Wlch::c a "NCPA EAS'l' BLOCK GE:O'l'HE:RMA.L S'rEAM
SI\Lr~::; Al;Ru·:~1r>~iT" beLv;een NCPA and Shell Oi 1 Company, dated as of
S <:: p t <:' rn b r~ r. 1 5 1 1 9 8 0 ,,
SECTION 3. The estimated amount of Second Phase Bonds to be
issued for the purposes described in Section 2 is Five Million Five
Hundred Thousand Dollars ($5,500,000); p~ovided that nothing herein
shall be deemed to prevent the issuance of additional Second Phase
Ronds to the extent such additional bonds a~e required to complete
the temporary financing of the project described in Section 2 hereof
including the issuar.ce of bond anticipation rates and refunding bonds
ther-efor.
SECTION 4. The anticipated sources of reqenue oc other funds to
pay the pr1ncfpal and interest on the Second Phase Bonds are payments
under the -Memher Agreement (Second Phase) for Financing or Planning
and Development Activities of the Shell East Block Geothermal Pro
ject" entered into between the members of NCPA and NCPA n.s of June 1,
1981 , or addition a 1 Second Pha~e Bonds ( i ncud i'~q SP. cond Phase Bonds
used for refunding purposes); prov idea further i:H!C!.I sources sha 11
also include the proceeds of Third Phelse Bond~ payai,le 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 ("Third Phase
Bonds") or bond anticipation notes in anticipation of the Third Phase
Bonds; in addition, such Second Phase Bonds may be secured by a guar
antee, letter of credit or other obligations or funds of a bank or
private financial institution.
SECTION 5. In the event that the City of Palo Alto elects not
to ente"i?' 1nto the 11 Member Agreement. (Second Phase) for Financing of
Planning and Development Activities of the Shell East Block Geo
thermal Project," the City of Palo Alto ehall not be deemed a partic
ipant in the acquisition, construction, maintenance, ope~ation or
financing of the plant referred to above and shall not assume noc be
deemed to have assumed any financial or other responsibility or lia
bility associated with the acquisition, construction, maintenance,
operation, or financing of such plant.
SECTION 6. 'fhis
erendum pr<i'Seribed by
State of Californid.
take effect and be in
t ion.
•
o r: d i n a. n c e i ~> s u b j e c t t o Uw p r o v i f:l i o n s f or .r e f -
Section 37.5i. 7 of the l·:lecti.ons Code of the
Subject to the foregoing, this ordinance shall
fore~ sixty (60) days from the date of adop-
SE~TIQ..N_?.· The City Clerk is hereby directed to cause this
ordinance to b0 published with~n fifteen (15) days after its adoption
in the newspaper of general circulation within the City of Palo Alto
an~ shall also do ~11 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 State of California.
I WrRODllC ED: AU9USt 10, 1981
PASSED~ :\"uqust: 2~\, 1981
AYES: BcchUd, Byerly,. Fazzino, Fletcher, Klein, llcnderson, Renzel
~·; i thc.t: spoon
NOES: :,~,:!::':'
Af?PROVED: