HomeMy WebLinkAboutRes 2001-03 Authorizing AEA borrow from AIDEA,,
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813 WEST NORTHERN LIGHTS BLVD. • ANCHORAGE, ALASKA 99503 • 907 I 269-3000 • FAX 907 I 269-3044
TOLL FREE (ALASKA ONLY) 888 I 300-8534
MEMORANDUM
TO: Board of Directors
Alaska Industrial Development and Export Authority
FROM: Robert Poe, Jr.
Executive Director
DATE: Apri112, 2001
SUBJECT: Resolution No. 2001-03
AENAIDEA Lending Agreement
The attached Resolution No. 2001-03 authorizes AEA to borrow money from AIDEA. The loan
proceeds may to be used to pay project related expenses prior to the receipt of funds by AEA to
pay for the expenditures. The resolution also authorizes AEA to make arrangements for the
payment of overhead expenses and administrative support and services provided to AEA by
A IDEA.
Previously, the AEA board approved Resolution No. 1995-05 which provides for loans of up to
$2 million from AIDEA to be used for the payment of working capital expenses related to AEA's
owned, operated and maintained facilities. Resolution No. 1995-05 also authorized AEA to pay
for overhead expenses and administrative support and services provided by AI DEA.
Legislation in 1999 transferred the rural energy programs to AEA. AEA participates in the
development and construction of power project and bulk fuel facilities that AEA does not own,
operate and maintain. These facilities are largely funded by Denali Commission and other
sources.
Resolution No. 2001-03 authorizes AEA to borrow up to $2.5 million from AIDEA for its
expenditures. The authorization continues to relate to the AEA owned, operated and maintained
facilities and expands the authorization to include the power project and bulk fuel facilities that
AEA helps develop and construct in conjunction with the Denali Commission and other funding
sources. The resolution continues to authorize AEA to make arrangements for the payment of
overhead expenses and administrative support and services provided to AEA by AIDEA.
Resolution No. 2001-03 also repeals Resolution No. 1995-05.
Staff recommends approval of Resolution No. 2001-03.
ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2001-03
RESOLUTION OF THE ALASKA ENERGY AUTHORITY
AUTHORIZING BORROWING FROM THE ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY FOR
THE PAYMENT OF CERTAIN EXPENSES, REPEALING
RESOLUTION 1995-05, AND PROVIDING FOR RELATED
MATTERS
WHEREAS, the Alaska Energy Authority (the "Energy Authority") adopted Resolution
1995-05 following changes made in 1993 to the Alaska Statutes relating to the Energy Authority
that authorized the Energy Authority to continue to own, operate, and maintain certain power
project facilities;
WHEREAS, Resolution 1995-05 authorizes the Energy Authority to borrow and make
arrangements to repay loans made to the Energy Authority by the Alaska Industrial
Development and Export Authority (the "Authority") relating to power projects owned, operated,
or maintained by the Energy Authority, subject to certain restrictions; authorizes the Energy
Authority make arrangements for the payment for overhead expenses and administrative
support and services provided to the Energy Authority by the Authority; and provides for related
matters;
WHEREAS, changes made in 1999 to the Alaska Statutes relating to the Energy
Authority authorize the Energy Authority to participate in the development and construction of
power project and bulk fuel facilities that the Energy Authority does not own, operate, and
maintain;
WHEREAS, the Energy Authority incurs working capital expenses related to the
development and construction of power project and bulk fuel facilities;
WHEREAS, the Energy Authority continues to incur working capital expenses related to
power project facilities that the Energy Authority owns, operates, and maintains;
WHEREAS, the Authority has the statutory authority to make loans to the Energy
Authority to finance the types of expenses described herein;
WHEREAS, the Energy Authority has the power to accept loans pursuant to AS
44.83.080(8); and
WHEREAS, the changes made in 1999 to Alaska Statutes related to the Energy
Authority make it appropriate and necessary or desirable to modify and substitute the
authorizations provided in Resolution 1995-05;
NOW, THEREFORE, BE IT RESOLVED BY THE ALASKA ENERGY AUTHORITY AS
FOLLOWS:
Section 1. The Executive Director of the Energy Authority and any Deputy Director
of the Energy Authority designated by the Executive Director are authorized to enter into
commitments, agreements, and financial arrangements on behalf of the Energy Authority for the
repayment of loans made to the Energy Authority for the purpose of paying working capital or
other expenses of the Energy Authority relating to a power project that the Energy Authority
owns, operates, or maintains, or relating to a power project or bulk fuel facility to which the
Energy Authority participates in the development or construction; provided, however, that such
borrowing is limited to, and shall comply with, the terms of Section 3 of this Resolution.
Section 2. The Executive Director of the Energy Authority and any Deputy Director
of the Energy Authority designated by the Executive Director are authorized to enter into
appropriate financial arrangements on behalf of the Energy Authority to reimburse the Authority
for overhead expenses paid by, and administrative support and services provided by, the
Authority for the Energy Authority.
Section 3. The unpaid balance of loans described in Section 1 of this Resolution
shall not at any time exceed, in the aggregate, $2,500,000. A loan described in Section 1 of this
Resolution shall not bear interest. Each loan described in Section 1 of this Resolution shall be
repaid from amounts held by the Energy Authority or received by the Energy Authority from the
State of Alaska or from other sources that, in the opinion of the Executive Director or designated
Deputy Director, will provide adequate assurance of repayment of the loan. Each loan
described in Section 1 of this Resolution shall mature and be payable in full no later than the
earlier to occur of (a) twelve months after the date of disbursement of the amount loaned, or (b)
the date on which amounts described in the preceding sentence are available to repay the loan.
Section 4. All outstanding loans, commitments, agreements, and financial
arrangements between the Authority and the Energy Authority that comply with the terms of this
Resolution are hereby ratified, affirmed, and approved, including all outstanding loans,
commitments, agreements, and financial arrangements between the Authority and Energy
Authority made under Resolution 1995-05.
Section 5.
becomes effective.
Resolution No. 2001-03
Resolution 1995-05 is repealed effective when this Resolution 2001-03
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Dated at Anchorage, Alaska this 12th day of A..,-p~lJ~il,""2d_O~~J1~c::::!_' _ _L,L~~~'\-_'l'::=:_ __
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Resolution No. 2001-03
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