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Home My WebLink About13 Payson Power Project Bond IssuanceAgendaItem#13TRUCKEEDONNERPublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:JoeHorvathDate:November06,2019Subject:ConsiderationofSigningDocumentsforthePaysonPowerProjectBondIssuancewithUAMPS1.WHYTHISMATTERISBEFORETHEBOARDItistheBoard’spurviewtoauthorizetheBoardPresidentandGeneralCounseltosigncertificatesandlegalopinionsassociatedwithprojectparticipationinUAMPS.2.HISTORYTheBoardapprovedandexecutedaPowerSalesAgreementwithUtahAssociatedMunicipalPowerSystems(UAMPS)forthePaysonPowerProject(theProject)onDecember1,2009.TheProjectrepresentstheNeboPowerStation,a140MWcombinedcyclegas-firedgeneratingfacilitylocatedinPaysonCity,Utah.TheProjectiscompletelyownedbyUAMPSmembers.TheDistricthasa3.6765%entitlementshareoftheProject,whichisabouta5MWshare.TheProjectwasoriginallyfinancedbyabondissuancein2005andrefinancedwithbondsagainin2012.Thematuritydateforthe2012bondissuanceisApril1,2025whentheProjectwillbecomedebtfree.TheProjectisanexcellentfitwith,andcomplementto,theDistrict’sotherpowersupplyresources.Itservesasaflexibleon-demandgenerationsourceduringhighloadhourswhichoccurduringtheday,butespeciallyduringthemorningandeveningtimeframe.ItalsoservesasafirmorbackupresourcetotheintermittentnatureofgenerationfromtheHorseButteWindProject,PleasantValleyWindProjectandthefutureRedMesaSolarProject.3.NEWINFORMATIONBeginningearlierthisyear,UAMPSstaffhasbeenactivelypursuingrefinanceoptionsfortheProjecttotakeadvantageofverylowinterestratescurrentlyavailableinthemarketplace.UAMPSispreparingfortheissuanceofthePaysonPowerProjectRefundingRevenueBonds,Series2019(theSeries2019Bonds).TheSeries2019Bondswillrefundthebondsissuedin2012andwillbeusedtoachievedebtservicesavings.ThetotalcashflowsavingsforUAMPSmembersis$5.5Moverthenext5.5years.TheDistrict’sportionofthissavingsisapproximately$200,000overthisperiod.ThematuritydateofApril1,2025fortheSeries2019Bondsremainsunchanged,atwhichpointtheprojectbecomesdebtfreeforallUAMPSmembers,includingtheDistrict. Forthebondclosingpurposes,UAMPSmustreceive“bring-down”certificatesandlegalopinionsfromeachoftheProjectparticipantsincludingtheDistrict.Thesedocumentssimplyreconfirmthecertificatesandopinionsthatweredeliveredatthetimeoftheoriginalexecution(2009)ofthePowerSalesContractsforthePaysonPowerProject.Therefore,anewbring-downcertificateandalegalopinionisrequiredforDistrictparticipationintheSeries2019Bonds.DistrictcounselhasreviewedthedocumentsandUAMPSstaffhaveapprovedandincorporatedthechanges.Thebring-downcertificateandlegalopinionareincludedasAttachment1.4.FISCALIMPACTTheSeries2019BondswillrefundbondsthatwereissuedfortheProjectin2012.TheSeries2019BondswillbeusedtoachievedebtservicesavingsforUAMPSmembersduetolowerinterestrates.ThetotalcashflowsavingsforUAMPSmembersis$5.5Moverthenext5.5years.TheDistrict’sportionofthissavingsisapproximately$200,000overthisperiod.ThematuritydateofApril1,2025fortheBondsremainsunchanged,atwhichpointtheProjectbecomesdebtfreeforallUAMPSmembers.5.RECOMMENDATION1.ApproveandauthorizethePresidentoftheBoardtoexecutetheBring-DownCertificateforthePaysonPowerProjectRefundingRevenueBonds,Series2019,withUAMPS.2.AuthorizetheGeneralCounseltoexecuteaLegalOpinionforthePaysonPowerProjectRefundingRevenueBonds,Series2019,withUAMPS.,bzJoeHorvathMichaelD.HolleyElectricUtilityDirectorGeneralManager ATTACHMENTIPAYSONPOWERPROJECTBONDISSUANCEWITHUAMPS BRING-DowNCERTIFICATEOFTHEPARTICIPANTDated:November13,2019STATEOFCALIFORNIA))COUNTYOFNEVADA)TheundersignedherebycertifythattheyarethePresidentandtheClerkofTruckeeDonnerPublicUtilityDistrict(the“Farticiant“),amemberofUtahAssociatedMunicipalPowerSystems(“UAMPS”),andthatassuchtheyareauthorizedtoexecutethisCertificateonbehalfoftheParticipantandherebycertifyasfollows:1.ThiscertificatehasbeenexecutedinconnectionwiththeissuancebyUAMPSofitsPaysonPowerProjectRefundingRevenueBonds,Series2019(the“Bonds“),asmorefullydescribedintheOfficialStatementofUAMPSdatedOctober23,2019preparedinconnectionwiththeofferingandsaleoftheBonds.2.InconnectionwiththeexecutionofthePaysonPowerProjectPowerSalesContract,datedasofDecember1,2009,betweentheParticipantandUAMPS,officersoftheParticipantexecutedanddeliveredacertificatedatedNovember17,2009(the“PowerSalesContractCertificate”).3.TheundersignedherebyreaffirmthestatementsmadeinthePowerSalesContractCertificateasthoughmadeonthedatehereofintheformtheywererenderedinthePowerSalesContractCertificate,subjectto:(a)anychangesbetweenthedateofthePowerSalesContractCertificateandthedatehereofin(i)theidentityofthemembersoftheGoverningBodyandotherofficialsoremployeesoftheParticipantanditsrepresentativetoUAMPS,(ii)theParticipant’sresolutionorordinanceestablishingelectricratesandchargesand(iii)theobligationsoftheParticipantpayablefromtherevenuesofitselectricsystem;and(b)referencestotheUtahAssociatedMunicipalPowerSystemsAmendedandRestatedAgreementforJointandCooperativeActiondatedasofFebruary17,1999shallbedeemedtorefertotheUtahAssociatedMunicipalPowerSystemsAmendedandRestatedAgreementforJointandCooperativeAction,asamendedandrestatedtothedatehereof.Initially-capitalizedtermsusedandnotdefinedinthisCertificatehavethemeaningsassignedtotheminthePowerSalesContractCertificate.-2- Datedasofthedayandyearfirstabovewritten.TRUCKEED0NNERPUBLICUTILITYDISTRICTBy_______President[SEAL]By____Clerk-3- LegalOpinionUtahAssociatedMunicipalPowerSystems155North400West,Suite480SaltLakeCity,Utah84103ZionsBancorporation,NationalAssociation,asTrusteeOneSouthMainStreet,12thFloorSaltLakeCity,Utah84133LadiesandGentlemen:WehaveactedascounseltoTruckeeDonnerPublicUtilityDistrict(the“Participant“)inconnectionwiththeissuanceanddeliverybyUtahAssociatedMunicipalPowerSystems(“UAMFS”)ofitsPaysonPowerProjectRefundingRevenueBonds,Series2019(the“Bonds”).TheParticipantisapartytotheUtahAssociatedMunicipalPowerSystemsAmendedandRestatedAgreementforJointandCooperativeActionandisamemberofUAMPS.TheParticipantandUAMPShavepreviouslyenteredintothePaysonPowerProjectPowerSalesContract,datedasofDecember1,2009(the“PowerSalesContract“).CapitalizedtermsusedandnototherwisedefinedhereinhavethemeaningsassignedtosuchtermsinthePowerSalesContract.InconnectionwiththeissuanceoftheBonds,wehavereviewedthelegalopinion,datedNovember17,2009(the“PriorOpinion“),renderedwithrespecttocertainlegalmatters,includingthevalidityandenforceabilityofthePowerSalesContract.WeherebyadoptandreaffirmthePriorOpinion,asthoughitwasdatedthedatehereof,intheformitwassorenderedonNovember17,2009.Theopinionexpressedhereinislimitedtothoseexpresslystatedandnootheropinionsmaybeimplied.TheopinionexpressedhereinisbasedonlyonthelawsoftheStateofCaliforniaineffectasofthedateofthisopinionandinallrespectsaresubjecttoandmaybelimitedbyfuturelegislation,aswellasdevelopingcaselaw.Iundertakenodutytoadviseyouofthesame.ThisletterisfurnishedbymeasGeneralCounseltotheParticipant.Noattorney-clientrelationshiphasexistedorexistsbetweenmeandyouinconnectionwiththetransactionsprovidedforinthePowerSalesContract,theBondsorbyvirtueofthisletter.Thisletter,andtheopinionprovidedherein,aredeliveredtoyousolelyasrequiredbyPowerSalesContractandtheBondsandarenottobeused,circulated,quotedorotherwisereferredtoorrelieduponforanyotherpurposeorbyanyotherperson,exceptassetforthherein,withoutmypriorwrittenconsent.WeherebyauthorizethereferencetothisopinionandtothePriorOpinionsetforthunderthecaption“LEGALMATTERS”intheOfficialStatement.WeherebyfurtherauthorizeChapmanandCutlerLLP,bondcounsel,andKeyBancCapitalMarketsInc.,asunderwriteroftheBonds,torelyonthePriorOpinionandonthisopinionineachcaseasthoughaddressedtothem.-4- Respectfullysubmitted,PORTERSIMONProfessionalCorporationSTEVENC.GRosscc:TruckeeDonnerPublicUtilityDistrict-5-