HomeMy WebLinkAboutRes 2020-08 Resolution- Sale of Power Revenue Bonds,Tenth Series and Ninth SupplementalALASKA ENERGY AUTHORITY
RESOLUTION NO. 2020-08
RESOLUTION OF THE ALASKA ENERGY AUTHORITY
PROVIDING FOR THE SALE OF NOT TO EXCEED $17,000,000
OF ALASKA ENERGY AUTHORITY POWER REVENUE BONDS,
TENTH SERIES (TRANSMISSION LINE PROJECTS);
AUTHORIZING AND ADOPTING A NINTH SUPPLEMENTAL
RESOLUTION BY AND BETWEEN THE AUTHORITY AND U.S.
BANK NATIONAL ASSOCIATION, AS TRUSTEE, TO SECURE
SAID BONDS; AUTHORIZING THE EXECUTION OF A LOAN
AGREEMENT BETWEEN THE AUTHORITY AND PURCHASER
OF THE SAID BONDS; DELEGATING CERTAIN AUTHORITY TO
THE CHAIR, THE VICE CHAIR, THE EXECUTIVE DIRECTOR, THE
CHIEF FINANCIAL OFFICER, AND ACTING CHIEF FINANCIAL
OFFICER; AND PROVIDING FOR RELATED MATTERS.
WHEREAS, the Alaska Energy Authority ("Authority") is authorized by Title
44, Chapter 83, of the Alaska Statutes, as amended, to issue bonds for the purpose
of carrying out its corporate purpose and power, including the establishment or
increase of reserves to secure or to pay for bonds; and
WHEREAS, the Authority has, pursuant to the Power Revenue Bond
Resolution, adopted by the Board on September 7, 1989, as amended and
supplemented ("Master Bond Resolution"), issued nine series of power revenue
bonds subject to terms and conditions set forth in the Bradley Lake Hydroelectric
Project Agreement for the Sale and Purchase of Electric Power (the "Power Sales
Agreement") dated as of December 8, 1987, by and among the Chugach Electric
Association, Inc., Golden Valley Electric Association, Inc., the Municipality of
Anchorage d/b/a Municipal Light and Power, the City of Seward d/b/a Seward
Electric System, and Alaska Electric Generation & Transmission Cooperative, Inc.,
and as Additional Parties Homer Electric Association, Inc. and Matanuska Electric
Association, Inc. (collectively, "Power Purchasers") and the Authority; and
WHEREAS, the Master Bond Resolution authorizes the issuance of
additional bonds for purposes of financing costs and expenses of planning,
designing, acquiring, constructing, installing capital improvements in connection
Resolution No. 2020-08 Page 1
(01069794)
with the Bradley Lake Hydroelectric Project ("Bradley Project") subject to terms
and conditions set forth therein and the Power Sales Agreement; and
WHEREAS, pursuant to the request of the Power Purchasers, the Authority
has determined to issue its Power Revenue Bonds, Tenth Series (Transmission
Line Projects), in an aggregate principal amount not to exceed $17,000,000
("Bonds") to provide funds which will be used to (a) pay all or a portion of the costs
of the acquisition, improvement and development of the electric transmission line
systems between Sterling Substation and Quartz Creek Substation, including
associated rights of ways and permits, the acquisition, improvement and
development of a 69kV line between Sterling Substation and Quartz Creek
Substation, including associated rights of ways and permits, and transmission
capacity rights on the transmission line between Soldotna Substation and Sterling
Substation, all of which will become an integral part of the Project; (b) fund a debt
service reserve account; and (c) pay costs incurred in connection with the issuance
of the Bonds (collectively, the "Project"); and
WHEREAS, the Bonds will be issued under and pursuant to and are being
secured by the Master Bond Resolution and a Ninth Supplemental Resolution by
and between the Authority and U.S. Bank, National Association, as Trustee
("Supplemental Resolution," and together with the Master Bond Resolution, the
"Bond Resolution") which shall be in substantially the form presented to and made
part of the records of this meeting; and
WHEREAS, provisions shall be made for the sale of the Bonds pursuant to
a Loan Agreement entered into among the Authority and the Alaska Industrial
Development and Export Authority ("Purchaser") which shall be in substantially the
form presented to and made part of the records of this meeting; and
WHEREAS, there has been presented to this meeting forms of the following
documents, which the Authority proposes to finalize in connection with the
issuance of the Bonds in substantially the form presented at this meeting:
1. Supplemental Resolution; and
2. Loan Agreement; and
Resolution No. 2020-08 Page 2
{01069794)
WHEREAS, it appears that each of the instruments above referred to, which
are now before the members of the Authority, is in appropriate form and is an
appropriate instrument for the purposes intended; and
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY
AUTHORITY, AS FOLLOWS:
That in order to provide funds to finance the Project, the Authority will issue the
Bonds in a principal amount not to exceed $17,000,000 maturing on the date or
dates and bearing interest at a fixed rate of interest described in the Supplemental
Resolution now before this meeting, subject to appropriate insertions and
revisions, be and the same hereby is in all respects authorized, approved and
confirmed, and that the Chair, Vice Chair, Executive Director, Chief Financial
Officer or Acting Chief Financial Officer of the Authority (each, an "Authorized
Officer") be, and each of them hereby is, authorized, empowered, and directed to
execute the Bonds, whether by manual or facsimile signature, to seal the Bonds
with the official seal of the Authority (manually or by facsimile), and to deliver, for
and on behalf of the Authority, the Bonds to the Purchaser; and that the provisions
of the Supplemental Resolution with respect to the Bonds be and the same hereby
are authorized, approved and confirmed and are incorporated herein by reference.
The Bonds do not constitute an indebtedness or other liability of the State
of Alaska, or any political subdivision thereof, except the Authority. The Authority
does not pledge the faith and credit of the State of Alaska, or any political
subdivision thereof (except the Authority) to the payment of the Bonds, and the
issuance of the Bonds does not obligate the State of Alaska or any political
subdivision thereof (except the Authority) to apply money, or levy or pledge any
form of taxation whatsoever to, payment of the Bonds. The Authority has no taxing
power.
That the form and content of the Supplemental Resolution be and the same
hereby are in all respects authorized, approved, confirmed and adopted, and each
Authorized Officer be and they hereby are in all respects severally authorized,
Resolution No. 2020-08 Page 3
empowered, and directed to execute and deliver the final Supplemental Resolution
for and on behalf of the Authority to the Trustee named therein for the security of
the Bonds, including necessary counterparts, in substantially the form now before
this meeting, but with such changes, modifications, additions, and deletions therein
as shall to them seem necessary, desirable, or appropriate, the execution thereof
to constitute conclusive evidence of their approval of any and all changes,
modifications, additions, or deletions thereto from such form, and that the final
Supplemental Resolution is hereby authorized, approved, confirmed and adopted
in accordance with the Master Bond Resolution and is incorporated herein by
reference. Following execution and delivery of the Supplemental Resolution, each
Authorized Officer be and they hereby are authorized, empowered, and directed
to do all such acts and things and to execute all such documents as may be
necessary or convenient to carry out and comply with the provisions of the
Supplemental Resolution as executed.
That the form and content of the Loan Agreement be and the same hereby are in
all respects authorized, approved and confirmed and each Authorized Officer be
and they hereby are authorized, empowered and directed to execute and deliver
the final Loan Agreement for and on behalf of the Authority, in substantially the
form and content now before this meeting but with such changes, modifications,
additions, and deletions therein as shall to them seem necessary, desirable or
appropriate, their execution of the Loan Agreement, to constitute conclusive
evidence of their approval of any and all changes, modifications, additions or
deletions therein from the form and content of the Loan Agreement now before this
meeting, and that, from and after the execution and delivery of the Loan
Agreement, each Authorized Officer be and they hereby are authorized,
empowered, and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the
Loan Agreement as executed.
That the sale of the Bonds to the Purchaser is hereby authorized and approved.
Resolution No. 2020-08 Page 4
(01069794)
That the Authorized Officers be, and each of them hereby is, authorized to execute
and deliver for and on behalf of the Authority any and all additional certificates,
documents, opinions or other papers and perform all such other acts as they may
deem necessary or appropriate in order to implement and carry out the intent and
purposes of this Resolution.
That this Resolution does hereby incorporate by reference, as though fully set out
herein, the provisions of the Act, the Master Bond Resolution, the final
Supplemental Resolution, and the documents presented to this meeting.
That the recitals to this Resolution, including definition of terms, are incorporated
into this Resolution as if fully set forth herein.
That this Resolution shall become effectively immediately upon its passage and
approval.
DATED at Anchorage, Alaska, this _ day of December 2020.
Chair
ATTEST:
ii,��ti1t1111!!!!!�b
P.
s� :o
Ortp O Rg T�. •.• ;p
Secretary
yQ. AL .�
rs7$ •
��''����t,�ttttt•��,
Resolution No. 2020-08 Page 5
(01O 94)