RESOLUTION NO. RS2001-876
Resolution authorizing the issuance of revenue bonds in an amount not to exceed Sixty-Six Million Seven Hundred Thousand Dollars ($66,700,000) of The Metropolitan Government of Nashville and Davidson County to provide for the financing of improvements to and expansions of a district heating and cooling system and related costs, and adoption of a revenue bond resolution entitled "District Energy System General Bond Resolution Authorizing the Redevelopment of a District Energy System, the Issuance of Revenue Bonds of The Metropolitan Government of Nashville and Davidson County and Providing for the Security Therefor."
WHEREAS, The Metropolitan Government of Nashville and Davidson County, Tennessee (the "Metropolitan Government") is authorized by the provisions of the Energy Production Facilities Act, Title 7, Chapter 54 of the Tennessee Code Annotated to issue, by resolution, revenue bonds for purposes specified therein;
WHEREAS, the Metropolitan Government proposes to finance an expansion of and improvements to an existing district heating and cooling and energy distribution system for steam and chilled water and a new energy generating plant and additional distribution facilities and related projects; and
WHEREAS, the improved system will be available to existing customers of steam and chilled water or similar services from the existing system, including the Metropolitan Government, the State of Tennessee, as customer, and various private customers, and to new customers that enter into contracts for energy services provided by the system.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY AS FOLLOWS:
SECTION 1. There is hereby authorized to be issued an initial series of revenue bonds in an amount not to exceed Sixty-Six Million Seven Hundred Thousand Dollars ($66,700,000).
SECTION 2. The proceeds of the revenue bonds authorized hereunder shall be applied to costs of expanding and improving the system and improving the efficiency thereof, and may be applied towards financing and payment of (i) the construction price of improvements to be made pursuant to a Contract for the Design and Construction of an Energy Generation Facility, Improvement of an Energy Distribution System, and Long Term Operation and Management of the Nashville District Energy System, between Metro and Constellation Energy Source, Inc., (ii) land acquisition for the improvements to be made pursuant to the foregoing contract, (iii) a thermal storage and electrical peak shaving system, (iv) improvements to the steam distribution system currently owned by the State of Tennessee, (v) metering for buildings connected to the system, (vi) improvements to customers' energy use systems ("Delta T projects"), (vii) changes in pumping requirements and associated equipment, (viii) electrical substation modifications, (ix) system administration, development, monitoring, engineering and related matters, (x) establishment of an energy conservation fund, and (xi) reasonable contingencies, and may include capitalized interest, issuance costs and operating reserves and a reasonable debt service reserve fund.
SECTION 3. The proceeds of the revenue bonds herein authorized may be applied to reimburse the Metropolitan Government for expenditures made for the purpose for which said revenue bonds are authorized. The foregoing statement of intent with respect to reimbursement is made in conformity with Treasury Regulation Section 1.150-2 of the United States Treasury Department.
SECTION 4. The true interest cost of the initial series of revenue bonds shall not exceed six and one-half percent (6.50%) per annum.
SECTION 5. The revenue bonds will be payable exclusively from net revenues to be derived from the operation of the system, including revenues from the sale of steam or chilled water or other forms of energy produced by the system, moneys in the various funds and accounts to be created for the system, proceeds of insurance available for purposes of the system, and proceeds derived from contracts with any system operator as payments with respect to the system, in each case after payment of system operating expenses.
SECTION 6. The revenue bonds shall be issued under "District Energy System General Bond Resolution Authorizing the Redevelopment of a District Energy System, the Issuance of Revenue Bonds of the Metropolitan Government of Nashville and Davidson County and Providing for the Security Therefor" (the "General Resolution"), which by adoption of this Resolution is also adopted by the Council of the Metropolitan Government of Nashville and Davidson County.
SECTION 7. Every revenue bond issued under the General Resolution shall recite that the revenue bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof and that the Metropolitan Government is under no obligation to pay the same, except from those revenues.
SECTION 8. After adoption of this Resolution, the Metropolitan Clerk is directed to cause this Resolution to be published in full once in a newspaper of general circulation in the Metropolitan Government of Nashville and Davidson County.
SECTION 9. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored By: Jim Shulman, Amanda McClendon
|Referred to:||Budget & Finance Committee|
|Introduced:||December 18, 2001|
|Adopted:||December 18, 2001|
|Approved:||December 19, 2001|