Ordinance 2090ORDINANCE 2090
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AiAwnA
AUTHORIZING THE ISSUANCE OF REFUNDING BONDS BY THE NORTHERN
CALIFORNIA POWER AGENCY (RFL GEOTHERMAL 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 "Joint Powers Act"), the City of Alameda and certain
other public agencies created pursuant to the laws of the State of
California (collectively, the "Members "), have entered into a Joint
Powers Agreement, 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 Agreement and the Joint
Powers Act, the Agency and certain of the Members (hereinafter called
the "Participating Members ") have entered into the NCPA M,_mber
Agreement for Participation in Electric Power Development Fund (the
"Development Fund Agreement "), dated July 1, 1975, revised May 1,
1978 and amended April 26, 1979, wherein each Participating P +e-:ber
has agreed to make payments from its electric department reverses,
except Plumas- Sierra Rural Electric Cooperative which shall pay from
any available funds, for certain Development Costs (as defined in the
Development Fund Agreement), incurred by the Agency in developing a
revenue - producing system for the generation, production.and transmis-
sion of electric energy for lighting, heating and power for public
and private uses; and
WHEREAS, the Agency has caused the Northern California
Municipal Power Corporation No. 1 (the "NCDUPC No. 1 "), a California
not for profit corporation to be formed to act on behalf of the
Agency to finance, among other things, interim development costs
relating to a geothermal power plant in Lake County, California, the
output of which plant was to be furnished to the Agency by the NCMPC
No. 1; and
WHEREAS, pursuant to a Loan Agreement (the "Loan
Agreement ") dated as of June 29, 1979 with the Bank of P;antreal
(California) (the "BOM "), the NCMPC No. 1 could borrow at an- one
time not exceeding $2,335,000 (the "BOM Loan "), of which, :a of
March 1, 1982, approximately $1,635,500 remained unpaid, on a to: -,ble
basis, primarily to pay interim development costs for said rower
plant; and
WHEREAS, in order to secure the BOM Loan, the Ac:ncy
assigned its rights to receive certain payments under the Develc!:ient
Fund Agreement to the'BOM pursuant to a Security Agreement, dated as
of June 29, 1979 (the "Security A reement ") between the Agency and
the BOM. and granted a present and future first security interest in
and assigned to the BOM the rights to such payments; and
WHEREAS, pursuant to Section 6576 of the Joint Powers Act,
the Agency may provide for the issuance and sale of refunding ronds
for the purpose of redeeming or retiring any revenue bonds or other
evidence of indebtedness incurred by it; and
WHEREAS, the Agency proposes to issue not exceeding
$3,000,000 principal amount of its( revenue, bonds (the "Bonds")•,pursu-
ant to said Section 6576 for the purpose of retiring its indebtedness
to the BOM under the Security Agreement so as to provide for the pay-
ment of the indebtedness of the NCMPC No. 1 under the BOM Loan; and
WHEREAS, the Agency proposes to issue from time to time its
renewal revenue bonds (the "Renewal Bonds ") pursuant to said
Section 6576, in a principal amount to be outstanding at any one time
(in accordance with their terms) not to exceed $3,000,000, the pro-
ceeds of the first issuance of such Renewal Bonds to provide funds
for the payment and retirement of the Bonds and the proceeds of each
later issuance of such Renewal Bonds to provide funds for the payment
and retirement of Renewal Bonds theretofore outstanding; and
WHEREAS, the anticipated source of reveryue or other funds
to pay the principal of and interest on the Bonds,�to the extent not
paid from proceeds of Renewal 'Bonds, is payments of the Participating
FiemDers under the Development Fund Agreement; and
WHEREAS, the anticipated source of revenue or other funds
to pay the principal of and interest on the Renewal Bonds, to the
extent not paid from proceeds of subsequent Renewal Bonds, is pay-
ments of the Participating Members under the Development Fund
Agreement; and
WHEREAS, in accordance with the Joint Power Act, the exer-
cise by the Agency of its power to issue the Bonds and the Renewal
Bonds)is subject to the authorization of such issuance by the Members
pursuant to ordinance; and
WHEREAS, neither the payment of principal of the Bonds or
the Renewal Bonds nor any part thereof nor interest thereon shall
constitute a debt; liability or obligation of the City of Alameda
NOW, THEREFORE, the City Council of the City of Alm
does ordain as follows:
1. The issuance and sale by the Agency of the Bo.-73 is
hereby authorized. The proceeds from the sale of the Bonds hereby
authorized are to be used to retire the indebtedness of the Ager-y to
the BOM under the Security Agreement so as to provide for the P : ment
of the BOM Loan. The Bonds, premium, if any, and interest the =eon,
to the extent not paid from proceeds of Revenue Bonds, are to be pay-
able from payments of Participating Members under the Development
Fund Agreement.
2. The issuance and sale by the Agency of the Renewal
Bonds is hereby separately authorized. The proceeds of the sale of
the Renewal Bonds are to be used to retire Bonds or Renewal Bonds.
The Renewal Bonds, premium, if any, and interest thereon, to the
extent not paid from the proceeds of subsequent Renewal Bonds, are to
be payable from payments of Participating Members under the
Development Fund Agreement.
3. Pursuant to Section 6547 of the Joint Powers Act, this
ordinance is subject to the provisions for referendum prescribed by
Section 3751.7 of the Elections Code of the State of California.
4. The City Clerk shall certify to the enactment of this
ordinance and shall cause notice of the same to be published in
accordance with Section 6040.1 of the Government Code of the State of
California.
5. Sixty (60) days from and after its enactment, this
ordinance shall take effect and be in full force, in the manner pro-
vided by law.
THE FOREGOING ORDINANCE is approved, enacted and adopted by
the City Council of the City of Alameda , this 20th day
of April , 1982.
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I, the undersigned, hereby certify that the foregoing Ordinance was
duly and regularly introduced and adopted by the Council of the City
of Alameda in regular meeting assembled on the 20th day of April, 1982,
by the following vote, to wit:
AYES: Councilmen Diament, Gorman, Sherratt, Stone and President Corica - 5
NOES: None.
ABSENT: None.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 21st day of April, 1982.
City Clerk of the r fy ofd ahteda