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HomeMy WebLinkAbout2013-05 UAMPS-Payson,Nebo Mnt Pmt TRUCKEE DONNE_ Utility District Resolution No. 2013 - 05lic ' A Resolution Authorizing and approving a Prepayment by the Truckee Donner Public Utility District in respect of Additional Bonds to be issued b Utah Associated Municipal Power Systems pursuant Zo the Payson Power Project Power Sales Contract; and related matters. Whereas, Truckee Donner Public Utility District (the "Member") is a member of Utah Associated Municipal Power Systems ("UAMPS")and has previously entered into the Payson Power Project Power Sales Contract dated as of December 1, 2009, as amended and supplemented (the "Power Sales Contract")with UAMPS providing for the purchase and sale of an entitlement share in the output of the Payson Power Project (the "Project"); and Whereas, the Power Sales Contract provides that the Member may make a Prepayment to UAMPS prior to the issuance of any Additional Bonds to finance the Cost of the Project, thereby reducing the Debt Service Costs that would otherwise be payable by the Member (capitalized terms used and not defined in this Resolution shall have the meanings assigned to them in the Power Sales Contract); and Whereas, UAMPS has proposed to issue its Payson Power Project Revenue Bonds, Series 2013A and Series 2013B, in order to finance various work and improvements at the Payson Power Project during major maintenance outages at the Payson Power Project (the "Series 2013 Project"); and Whereas, any Prepayment made by the Member will be deposited with Zions First National Bank, as trustee appointed under the Financing Documents (the "Trustee"), will be held in a special account and will be used solely for the payment of the Cost of the Series 2013 Project; and Whereas, UAMPS has requested that the Member now elect whether or not to make a Prepayment, and the Member now desires to elect to make a Prepayment in accordance with the provisions of the Power Sales Contract in the amount authorized by this Resolution; Now, Therefore, Be It resolved by the Governing Body of Truckee Donner Public Utility District, as follows: Section 1 . Approval and Authorization of Prepayment. (a)The Member hereby elects to make a Prepayment in an amount equal to $262,524 which is less than or equal to the product of (i) its Entitlement Share and (ii) the Reference Project Costs (estimated to be approximately $262,524) in accordance with the terms and provisions of the Power Sales Contract. Pursuant to the Power Sales Contract, it is hereby found and determined that amounts used to make such Prepayment are derived from retained earnings of the Participant's electric enterprise fund, unexpended proceeds of borrowings previously made by 1 Resolution 2013-05 the Participant for electric system purposes or other legally available moneys of the Participant, including legally available funds now on deposit in the Member's margin account with UAMPS. The Member's representative to UAMPS is hereby authorized and directed to determine the source of the moneys to be used to make the Prepayment from the sources authorized by this Resolution at such time as shall be directed by UAMPS. It is hereby found and determined that the Participant has deposited or will deposit with the Trustee an amount equal to the estimated amount of the Prepayment to be made by the Participant, all in accordance with the Prepayment escrow instructions provided or to be provided by UAMPS. Section 2. Miscellaneous; Effective Date. (a) This Resolution is adopted pursuant to the Interlocal Cooperation Act. (b) This Resolution shall be and remain irrepealable until the expiration or termination of the Power Sales Contract in accordance with its terms. (c) All previous acts and resolutions in conflict with this resolution or any part hereof are hereby repealed to the extent of such conflict. (d) In case any provision in this Resolution shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. (e) This Resolution shall take effect immediately upon its adoption and approval. Adopted and approved this third day of April 2013. AYES: Directors Ellis, Hemig and Laliotis NOES: None ABSTAIN: None ABSENT: Directors Aguera and Bender TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tony Laliotis, President ATTEST: Michael D. Holley, P.E. Clerk of the Board 2 Resolution 2013-05