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HomeMy WebLinkAboutORD 3422t "ORIGINAL ORDlNANCB NO. 3422 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE ISSUANCE OF NOTES ~y NORTHERN CALIFORNIA POWER r\GENCY (GEOTHERMAL GENE.AATING PROJECT NUMBER 3), NOTE~ This Ordinance to be adopted second. f ORDiNANCE NO. 3422 ORDINANCE!: OF THE COUNCIL Of'1 rfrEc:foi\y OF PALO A.L'rO AUTHORIZING THE ISSUANCE OF NOT~S BY NUHTHEMN CALI­ J:t'URNIA POWER AGENCY (GEOTHERMAL GENERATING PHOJrX'f 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 of Palo Alto and certain otner pub­ lic agencies created purs,xant to the laws of the State of California (collectively, the "Members"), have entered into a Joint Powers Agree­ ment r as amended (the 11 Agreement"}, c~::eatin9 the No~t.he en California Power Agency (the ~1 Agency"), a public entity separate and apart from the Members; and wHl!a\EAS, in accordance with the Agreement and the Joint Powers A.,.:!t, the Agency has entered or will enter into agreements to ac­ quire anj construct (or to cause t·, be acqui~ed a~d constructed) a pro­ ject for the generation and t~ansmission of electric energy consisting of two 55 megawatt geothermal generating units and related facilities, includ.i.ng tran.sm.iss1on, proposed to be constructed in Sonoma and r.ake Count: 1 es, State of Cali ior.nia, and capital .improvements the~:e to that may be constructed fr·om time to time, and lnterest.s in certain otbe.r property and rights r.elat i ng thereto, incl ud i.ng, without 1 imitation, such interest in the Agency•s Geothermal Generating Project Number 2, as the Agency may determine (the "Project"); and WHEREAS, the Agency proposes to issue, in accordance with the Agreemel1t:. and the Joint Powers Act, fn>m time to time,, in one or more installments, its notes and other evidences of indebtedness (including renewal notes) ("Notes") to be outstanding at any one time in accord­ ance with their terms in the estimated maximum aggregate principal amount of $300,000 1 000, for the purpose of financing studies, the ac­ quisition of options, permits 1 and other preliminary costs to be in­ curred prior to the undertaking of the construction or acquisition of the Project and f<:lr the purpose of providing temporary financing of costs of acquisition and construction of the Project: and WHER~AS, thE Agency proposes to issue its revenue bonds and evidenc~s of indebtedness (nPublic Power Revenue BondaR) for the pur­ pose of providing funds for the acquisition, construction and financing of the Project~ and WHEREAS, notwithstahding the aforesaid estimated maximum ag­ gregate principal amount of Notes proposed to be issued by the Agency for the Project and t.o be outstanding at any one ti.me in accordance with their terms, additional Notes may be reqllired to Ct)mplete the financing of the Project~ and WHERE.I\b P the Agency has entered or will enter into one or ·mor.e agreements (the "Member Agreements") with certain entities (in­ cluding two or more of the Members}, pursuant to which the entities entering into such Member Agreements with tne Agency (the "'Partici .... pants") 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 Notes are to be renewable from time to time and payable from proceeds of renewal Notes and the proceeds of the Public Power Revenue Bonds and, to the e.x tent not so paid, may be payable from revenues of the Agency from the Projectp including payments to be made by the Participants under the Member Agreements~ and WHEREAS, in accordance with the Joint Powers Act, the exer­ cise by the Agency of its power to issue the Notes is subject to the authorization of such issuance by the Memb~t:s pursuant to Ordinance; and WHEREAS, unless otherwise subsequently agreed and approved by resolution of the Palo Alto City Council, neither the payment of prin­ cipal of the Notes nor any part thereof nor interest thereon shall con­ stitute a debtp liability or obligation of the City of Palo Alto; nor does t.hi.s Ordinance commit the City of Palo Alto to take or pay for. any capacity or energy of the Project; and wHEREASt this City Council has authorized by Ordinance the is~;uance and sale b~· the Agency of its l?ubl ic Power Revenue Bonds, the proceeds f:r.om t.he sale of which are to be used for the acquisition, construction and financing of the Project, including interest on such Bonds and deposits to reserves, and to pay the principal, premium, any, and interest on the Notes -:J.uthor. i zed by this Ord inanQe ·when due. NOW, THEREFORE, the Council of the City of Palo Alto does ordain as tollows: §8C_'!.'ION_1. The issuance and sale by the Agency from time to time, in one or more inst.sllments~ of its Notes (including renewal Notes) outstanding at any one t.ime in accordanrJe with their terms in a maximum aggregate principal amount of $3006000,000 is hereby authorized. Not­ withstanding such maximum aggregate pr. incipal amount F the Agency is hereby authorized to issue additional principal amounts of Notes if and to the extent required to complete the financing of the Project. The proceeds from the sale of the N.Jtes hereby authorized are to be used for the financing of costs of acquisition and construction of the Pro­ ject, including interest on the Notes. The Notes hereby authorized are to be renewable from time to time and such Notes, and premium, if any, and interest thereon, are to be payable from proceeds of renewal Notes and the proceeds of Public Power Revenue Bonds of the Agency and, to the extent not so paid, may be payable from revenues of the Agency from the Project, including payments t·eceived by the Ag(mcy from the Fa·r­ ticipants under the Member. l~greements. SEC~..-£~ .Pu.r.suc-nt to Section 6547 of the Jo'int Powers Act, this Ordinance is subj(.!'Ct to the provisions for refercn1dum prescribed by Section 3751.7 of the Elections Code of the State of California. -2- . . • • 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 ~~ction 6040.1 of the Government code of the State of Cali­ fornia. SECTION 4. Sixty (60) days from ar.d after its enactment.~ this Ordinance shall take effect and be in full force, in the manner pro­ vided by law. IN'rRODUCt:D: ~lar(.h 14, 1983 PASSE;D: Apri1 4, 1983 AYES: 8 e c h t e 1 , C o b b , E y e r 1 y ~ F 1 e t c h e r , K 1 e i n , L e v y , R e n l e 1 ) lfJ i t h e l' s p o o n NOES: None AHS'l'EN'l'IONS: None ABSENT: Fa z z ·i W.) APPROVED: ~m -3- • •. • ' • ; • • ' • I ~· ' • ' • ~' • ' '~ •