HomeMy WebLinkAboutORD 3313-·· • • ORIGINAl
ORDINANCE NO. 3313
ORDINANCE OP THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING THE ISS{TANCB OF PUBLIC POWER REVENUE
BONDS BY NORTHERN CALIFORNIA POWER AGENCY (NORTH
FORK STANISLAUS PIVER HYDROELECTRIC DEVELOPMENT
POWER PROJECT)
WHEREAS, pursuant to the provisions of Chapter 5, Division 7,
Title 1 of the Government Code of the State of California, as amended
(the "Joir.t Powers Act"), the City of Palo Alto and certain other pub
lic agencies created pursuant to the laws of the State of California
(collectively, the "Mt!mbers"), have entered into a ,Joint Powers Agree
ment, as amended (the "Agreement"), creating the Northern California
Power Agency (the "Agency" ) , a public entity separate and apart from
the Members; and
WHEREAS, in accordance with the Agreeme-nt and the Joint Powers
Actr the Agency has entered or will enter int6 agreements to acquire a
project {the "Project") to consist of rights to capacity and energy
Ecom the North Fork Stanislaus .River Hydroelectric Development Power
-;co j ec t., a hyd roe lee t ~: i c project proposed to be constructed in the
State of California, and capital improvements thereto that may be con
structed from time to time, and interests in certain other property and
rights re1aling thereto; and
~'YHEREAS, the Agency proposes to issue, in accordance vd.th the
Agreew~nt and the Joint Powers Act, from time to time, in one or more
installments, its cevenue bonds and evidences of indebtedness ("Public
Power Revenue Bonds") to be outstanding at any one time in accordance
with their terms in the estimated maximum aggregate principal amount of
$750,000,000, for the purpose of providing funds for the acquisition,
constru~tion and financing of the Project; and
WHEREAS, the Agency also pt:oposes to issue its Notes (including·
renewal Notes) for the purpose of financing studies, the acquisition of
options~ permits, and other preliminary costs to be incurred prior to
the undertat-;.inq of t:le construction or acquisition of the Projet!t and
for the purpose of providing temporary financing cf costs of acquisi
tion and construction of the Project: and
WHEREAS, notwithstanding the afor~said estimat~d maximum aggregate
principal amount of Public Puwer Revenue Bonds proposed to be issued by
the Agenr.y for the Project and to be outstanding at any one time in ac
cordance wi~~ their terms, additional Public Power Revenue Bonds may be
requi::-ed to complete the financing of the Project; and
WHEREAS, the Agency has entered or will enter into agreements (the
"Membet· Agreemer~ts") with certain entities (inclv1ing two or more of
the Members), pursuant to which the entities entering into such Member
Agreements with the Agency (the "Pa~ticipants") will, in the aggregate,
purchase rights to 100% of the capacity and energy of the Project: and
WHEREAS, the Public Power Revenue Bonds are to be p.3yable from
funds held in trust for the benefit of the holders of such Bonds an~
i.rorn revenues of the Agency from the Pro;ect, including payments to be
made by the Participants under the Member Agreements; and
WHEREAS, the Notes are to be payable ft·om proc~eds of renewal
Notes and the proceeds of the Public Power Revenue Bond~ and, to the
extent not so paid, may be payable from revenue of the Agency from the
Project, including payments to be made by the Participants under the
Member Agreementi and
WHEREAS, in accordance with the Joint Powers Act, the exercise by
the Agency of its power to issue the Public Power Revenue Bonds ie sub
ject to the author i ~at ion of such issuance by the Members pursuant. to
Ordinance; and
• •
WHEREAS, neither the payment of principal of the Public Power
Revenue Bonds nor any part thereof nor interest thereon shall const i
tute a debt, liability or obligation of the City of Palo Alto~ nor does
this ordinance commit the City of Palo Alto to take or pay for any ca
pacity or e:-11')rgy of the Project.
NOW, ~HEREFORE, the Council of the City of Palo Alto does ORDAIN
as follows:
SECTION 1. The issuance and sale by the Agency, from time to
time, in one or more installments, of its Public Power Revenue Bonds
outstanding at any one time in accordance with their ter.ms in a maximum
aggregate principal amount of $750,000,000 is hereby authorized. Not
withstanding such maximum aggregate principal amount, the Agency is
hereby authorized to issue additiunal principal amounts of its Public
Po~o~er Revenue Bonds if and to the extent required to complete the
financing of the Project. The proceeds from the sale of the Public
Power Revenue Bonds hereby authorized are to be used for the acquisi
tJ.on, constru~.:tion and t'nancing of the P:t:"oject, includir.':l interest on
such Bonds and deposics to ~escrves, and to pay the principal, premium,
if any, and interest on the Notes of the Agency when due. The Public
Power Revenue Bonds herPby authorized, and premium and interest there
on, ~re tu be payable from, and secured by, funds held in trust for the
benefit of the holden; of Public Power Revenue Bonds and from rGvenues
of the Agency from the Project, including payments received by the
Agency from the Participants under the Members Agreements.
SECTION 2. Pursuant to Section 6547 of the Joint Powers Act, this
ordinance is subject to the preP! is ions for ref e rend urn prescribed by
S~~~ion 3751.7 of the 8~2~tions Code of the State of California.
S8CTION 3. The City Clerk shall certi;y ~o the enactment of this
ordl~ance and shall cause notic~ of the same to be published in accor
dc. .. ce with Section 6040.1 of th::: Government Code 0~ the State of Calif
ornia.
SECTION 4. Sixty (60) days from and after
ordinanc·e shall take effect and be in full force,
v1ded by law.
INTRODUCED: Novembe~ 9, 1981
PASSED: November 23, 1981
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enactment, thi,s
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AYES: Bechtel, Eyerly, Fazzino, Fletcher, Henderson, Klein, Levy,
Renzel, Witherspoon
NOES: None
ABSTENTIONS: None
ABSENT: None
APPROVED:
~itb~ Mayor
APPROV AS TO FORM:
~ .Akz<.t_/ ~ · GLt~-' 1tY Attorney