HomeMy WebLinkAbout11-1 Payson Prepayment notice March 2013,attachmntAttachment 1
•.•• SMARTENERGY-'
Utah Associated Municipal Power Systems
March 27, 2013
Re: Payson Power Project Revenue Bonds
Series 2013A and Series 2013B
To the Payson Power Project Participants:
As discussed in recent meetings of the Project Management Committee (the "PMC"),
UAMPS is considering issuing the above -referenced bonds (collectively, the "Series 2013
Bonds ") to provide financing for the costs of planned maintenance work and improvements (the
"Series 2013 Project") at the Payson Power Project during the 2013, 2014 and 2015 planned
maintenance outages. It is expected that the PMC and the Board of Directors will consider
approving the issuance of the Series 2013 Bonds at its April meetings. This letter provides you
with information regarding decisions that individual Participants will need to make in order to
move this financing forward.
PREPAYMENT NOTICE
The Series 2013 Project consists of various work and improvements at the Payson Power
Project during the 2013, 2014 and 2015 major maintenance outages at the Payson Power Project.
As discussed in the March meetings, UAMPS expects the Series 2013 Bonds will be sold
pursuant to a direct purchase transaction.
Under Section 4 of the Payson Power Project Power Sales Contracts, you have the option
of making a capital contribution to UAMPS for your share of the costs of the Series 2013 Project
(a "Prepayment"). Your Prepayment amount may be equal to or less than your Entitlement
Share in the Payson Power Project multiplied by the "Reference Project Costs." For purposes of
this notice, we have estimated the Reference Project Costs to be $7,140,000. The Schedule of
Prepayment Amounts attached to this letter lists the Participants in the Payson Power Project,
their Entitlement Shares, the estimated Reference Project Costs and the estimated amount of the
maximum Prepayment that each Participant can make.
Payson Prepayment notice March 2013
87005105/CJ/BCP
2825 East Cottonwood Parkway, Suite 200,
Salt Lake City, Utah 84121-7077
P:801-566-3938 Toll-Free:800-872-5961
91:111WAR11.1 ri
www.uamps.com
Attachment 1
If you elect to make a Prepayment, UAMPS will not issue Series 2013 Bonds to finance
your share of the Reference Project Costs to the extent of the Prepayment. You will need to
deposit the Prepayment prior to the time UAMPS sells the Series 2013 Bonds to the direct
purchaser. Our current schedule calls for the sale of the Bonds in early May. Presently UAMPS
expects all Prepayments will need to be deposited by the end of April.
The Power Sales Contract provides that the determination of whether to make a
Prepayment is to be made by your city council or other governing body. If you expect that your
city council or governing body will want to authorize a Prepayment, please contact me as soon as
possible and I will provide you with a form of the necessary resolution.
We have enclosed a short response form (Annex A) for your use to advise us of whether
or not you will be making a Prepayment. Please complete and return the form to me at your
earliest convenience, but in any event no later than April 11, 2013. If you are electing to make a
Prepayment, you must also return to me, by this date, an executed copy of the approving
resolution adopted by your governing body. If we do not receive a response from you by this
date, you will have waived your right to make a Prepayment. If your city council or governing
body needs additional time to determine whether or not to make a Prepayment, please let me
know and we will make every effort to accommodate your needs.
As always, please don't hesitate to contact me at any time with any questions or concerns
you may have.
Best Regards,
UTAH ASSOCIATED MUNICIPAL POWER SYSTEMS
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Attachment 1
SCHEDULE OF PREPAYMENT AMOUNTS
BASED ON REFERENCE PROJECT COSTS OF $7,140,000
PARTICIPANT ENTITLEMENT SHARE (%) PREPAYMENT AMOUNT
Ephraim
0.9777%
$ 69,808
Fairview
0.0786
5,612
Hurricane
8.4036
600,017
Hyrum
2.0455
146,049
Kaysville
16.3287
1,165,869
Lehi
15.3316
1,094,676
Logan
12.9223
922,652
Monroe
0.4518
32,259
Mt. Pleasant
0.3614
25,804
Payson
8.0702
576,212
Santa Clara
1.9599
139,937
Spring City
0.0812
5,798
Springville
18.0723
1,290,362
SESD
5.5152
393,785
TDPUD
3.6768
262,524
Washington
5.7232
408,636
TOTAL 100.0000
7.140.000
SCHEDULE I
Attachment 1
ANNEX A
Jackie Coombs
Customer Service Administrator
Utah Associated Municipal Power Systems
155 North 400 West, Suite 480
Salt Lake City, Utah 84103
Re: Payson Power Project —Prepayment Notice
Dear Jackie:
In response to your letter of March 27, please be advised that
Truckee Donner Public Utility District
[name of Participant]
will make a Prepayment in the amount of $ 2 6 2, 5 2 3. 5 2 The
approving resolution, adopted by our governing body, accompanies this
Prepayment Notice (or will be sent to you no later than April 15, 2013).
S
F—I will not make a Prepayment.
Dated: April 3, 2013
Sincerely,
UAMPS Representative
A-1