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Home My WebLink AboutORD 3421,. • ORIGINAL ORDINANCB NO. 3421 ,_,_ __ ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THB ISSUANCE OP PUBLIC POWER REVENUE BONDS 8~ NORTHERN CALIFORNIA POWER AGENCY (GEOTHERMAL GENERATING PROJECT NUM.BEH 3). NOTE: This Ordinance to be adopted first. . ' ,. -" . . ' . .. . :. ' ' ' -· '. . . . . . : . . . • ORD!NANC~ NO. 3421 ORDINANCE OP 'l'Ht; COONClL 0£-' ;l'HE CITY OF PALO AL'l'O AUTHORIZING THE ISSUANCE OF PUBLIC POWER REVENU~ BONOS BY NORTHERN CALifORNIA POWER AGENCY (GEOTHERMAL GENERATING PROJECT NUMBER 3). WHEREAS, pursuant to the provisions of Chapter 5, Division 7~ Title 1 of the Government Code of the State of California, as amended (the ~Joint Powers Act~), the City ot Palo Alto and certain other pub lic agencies created pursuant to the laws ot the State of California {collectively, the "'Members") 1 hav-<.? entet:ed into ~ ,Joint Powers Agree me:lt, as amended (~.he ~Agree1nt:nt.'"1, creatin9 the Northern California Power. Agency ( th•~ "l19t.:ncy«), a pobl ic eni.:.ity r:>ep3r~"te ?.nd apart from the ~1embel:B; and WHE}:EAS, in ·3Cco:rdance "''1 tn the Agreement and the Joint Powers Act, the Agency h~s entered or ··dll enter into agre<:.rnents to a<:::qu.ire and construct (or to (;ause to be ac'-_1u ired ctnd coru:.;t nJCted) a project for the gen~t:<-'ltion and transmission of. electric er:er9y consisting of. two 55 megawatt geothermal generating units and :related facilitiesr including tr. ansmiss ion, proposea to be cons t r i.lct<;d in Sonoma B.nd Lake Counties 1 State of California, <.:.nd capital improvements thereto that may be constructed from time to time, and interests in certain other prope:cty anei rignts relating thereto, including, 'odthm't limitation, such interest in tr:e Agency's Geothermal Gene·rat ing Project. Number 2 r as the Agency may determine (the "Project~); and WHEREAS, the Agency proposes to issue, i.n accordance with the Agreement and the Joint Powers Act, from time to time, in one or more installments, its revenue bonds and evidences of indebtedness (includ ing refunding bonds) {"'Public Power Revenue Bonds~"~) to be outstanding at any one time in accor.dance with their terms in the estimated maximum aggregate principal amount of $300,000,000" for the purpose of provid ing funas for the acquisition, construction and financing of the Pro ject; and WHEREAS, the Ag~ncy also proposes to issue its notes and other evidences of indebteaness {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 fer the purpose of pro viding temporaty financing of costs of acquisition and construction of tne Project; and WHEREAS, notwithstanding the aforesaid estimated maximum aggregate principal amount ot Public Powe.r Revenue Bonds proposed to be issued by the Agency for the Project and to b~ outstanding at any one time in accordance with their terms, additional Public Power Revenue Bonds may be requirQd to complete the financing of the Project; ana -1- • WHEREAS,The Agency has entered or will enter into one or more agreements (the ~"~Member Agreements") with certain entities (including two or more oE the ~embers), pursuant to which the entities entering into such Member Agreements with the Agency (the "ParticipantsM) will, in the aggregate, purchase options and/or rights to purchase and/or receive 100% of the capacity and energy of the Project; and WHEREAS, the Pllbl ic Po~er Revenue Bonds are to be payable from funds held in trust for the benefit of the holders of such eonds and trom revenues of the Agency from the Project, including payments to be made by the Participants under the Memhe~ Agreements; and WHE.UE.AS, the Notes a-re to be p~;rable from pcocE-eds of renl'!Wal Notes ana tne proceeds ot tne Public Po...,'er: Hevr~'nLjC Bond:.> .;\nc1, to the extent not so paia, may be payab1G t!com revenue~> ot the t\•.;ency from the Project, including payments to be made by the ?articip.:wts under. the Memb8r Agreementsf and WHEREAS, in accordance witll the -Joint. l:'OI.'cr:s Act, the exerc1se by tbe Agency of its pO'.¥er to issLOe the Put-,l.ic ?O'<-.'ec t<evenue bonds is sub, .}ect to the authorization of sucn issuance by the !>',ember-s p1Hsuant to Ordinance; and WH~REAS, unless otherwise subsequently ~greed and approved by resolution of the Palo Alto City Counc iJ,, neither the payment of pt.' in cipal of the Public Power Revenue Bonds nor any part thereof nor inter est thereon P-h all constitute a debt? liability or obligation of the City of PaJo Alto to t.ake or pay for any capacity <Yr: energy of the Project. NOW, THEREFORE, the Coun~il of the City of Palo Alto does ordain as tollows: SECTION 1 ~ The issuance and sale by the Agency, from time to time, in oneor more installments, of its Public Power Revenue Bonds outstanding at any one time in accordance with their terms in a maximum aggregate principal amount of $300,000;o000 is hereby authorized., Not withstanding such max :imum aggregate principal amount, the Agency is hereby authorized to issue additional principal amounts of its Public Power, 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 author i :11ed are to be l.\sed for acquisition, construction and financing of the Project, including interest on such Bonds and deposits to reserves, ,2nd to pay the principal, pt:emium,. if any, and interest on the Notes of the Agency when due. The Public Power Revenue honds hereby authorized, and premium and in t~,J: est there ~"~ are to be payable from, and secured by, funds ~eld in trust for the ben(1 fit of the holder-s of Public Power Revenue Bonds and from revenues of the Agency from the Project, including p.=.ayments received by the Agency f~0m the Participants under the Member Agreements. -2- • • SECTION 2. Pursuant to Section 6547 of the Joint Powers Act, this Ordinance lS Sllbject to the provisions for referendum prescribed by Section 3751.7 of the Elections Code of the State of California. SECTION 3. The City Clerk shall certify to the enactment of this Ordinance and shall cause notice of the same to be published in accord-, ance with Section 6040. 1 of the Government Code of the State of Cali-· fornia~ SECTION 4. Sixty ( 60) days from and after its enactment f' this O:cdin'dnce shall take effect and be in full force, in the r·,,.:mner pro vided by law. lN'rRODUCf::D: ~i a r c h 1 4 , 1 9 8 3 PASbt;D: Apri1 4, 1983 AYES: Bechtel, Cobb~ Eyerly. Fletcher! Klein~ t.evy, Renze1, Witherspoon NOES: None ABSTEN'l'ION~: None A8SENT: Fazzino A'rTES'Y-f aL /j ' Q ~~ ft~-·j:::.___ cit~ Cl~->J:f' ~pp)LfY~s 'l'O FORI4: Sr. As~ity Attorney APPROVED: ~~-M-) U-1 .. -----~--Ma r) '--- APPROV ~"- -3-