HomeMy Public PortalAbout036-1980 - ORDINANCE TO CREATE A JOINT AGANCY WITH OTHER MUNICIPALITIESORDINANCE NO. 36 - 1980
AN ORDINANCE TO CREATE A JOINT AGENCY WITH OTHER MUNICIPALITIES
WITHIN THE STATE OF INDIANA, FOR THE PURPOSE OF UNiMAKING THE
PLANNING, FINANCING, OWNERSHIP AND OPERATION OF A PROJECT OR
PROJECTS TO SUPPLY ELECTRIC PORI;R AND ENERGY FOR THE PRESENT AND
FUTURE NEEDS OF SUCH MUNICIPALITIES, AND 0THER MATTERS CONNECTED
THEREWITH.
WHEREAS, the City of Richmond, Indiana is a municipality
mining and operating on January 1, 1980 an electric utility which
furnished retail electric service to the public and purchased part
of its electric power from public utilities; and
1%1EREAS, the City is required by law to provide its custo-
mers with an adequate, reliable and economic supply of electric power
and energy, but has determined that individually it is not financially
capable of providing the planning, financing, locating and building of
needed new facilities for generation and transmission to satisfy future
requirements of its customers; and
WHBREM, the City has obtained the advice of R.W. Beck $
Associates, professional engineers and consultants, of 5920 Castleway
West Drive, Suite 120, Indianapolis, Indiana 46250, in regard to pre-
liminary power supply studies and the advice of Salomon Brothers,
investment bankers, of One New York Plaza, New York, New York 10004,
in regard to bond market financing, and have considered whether cost
reductions, efficiencies or other advantages may be realized by creating
a joint agency and whether better financial marketing acceptance may
result if a joint agency is responsible for issuing all of the bonds
for a project or projects in a timely and orderly manner and with
uniform credit ratings as opposed to multiple municipalities making
separate issues of bonds; and
WHEREAS, based upon its obligations to serve its customers,
such advice and the above considerations, the City of Richmond, Indiana
by this ordinance hereby finds and determines that it is in its best
interest to join, with other municipalities in the State of Indiana to
create a joint agency under and pursuant to the provisions Of
T.C. 8-1-2.2 for the purpose of undertaking the planning, financing,
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ownership and operation of a project or projects to supply electric
power and energy for the needs of the participating municipalities;
NOW, THEREFORE, BE IT ORDADMD $Y THE CMM (XIONCIL of
the City of Richmond, Indiana:
SECTION 1. The findings and determinations set forth an the
preambles to this ordinance are hereby made findings and determinations
of the City of Richmond, Indiana.
SECTION 2. The names of the municipalities proposed to be
initial members of the joint agency are Anderson, Crawfordsville,
Flora, Greendale, Greenfield, Lavrenceburg, Lebanon, Logansport, Peru,
Racw,ond and Tipton, Indiana.
SECTION 3. The City of Richmond, Indianaa is authorized
pursuant to this ordinance to enter into a contract (the "Contract"),
substantially in the form attached hereto as Exhibit A, for the creation
of a joint agency with one or more of the municipalities hereinabove
named, and with such other municipalities subsequently becoming a
member of the joint agency pursuant to the Contract, and after execution
thereof cause notice of the execution of the Contract to be given to the
Mayor of the City of Richmond, Indiana.
SECTION 4. By this Ordinance, the Mayor is hereby authorized
and directed to execute the Contract, and by the execution thereof shall
approve the terms and conditions of the Contract.
SECTION s. This ordinance shall be in full force and effect
from and after its passage.
PASSED AND ADOPTED by the Common. Council of the City of Richmond, Indiana
this S day of YAA,,oZ 1980.
ent Off CUM6n ounc
ATTEST:
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PRESEffM) by me, JoEllen Trimble, City Clerk, o the Mayor of the
City of Richmond, Indiana this day of , 1980.
Q1
City er
APPROVED by me, Clifford J. Dickman, Mayor of the City of Richmond,
Indiana, this day of /, 1980.
Yo
r
ATTEST.
rty er
DRAFT
3/12/80
CONTRACT GREAT=NG THE
INDIANA MUNICIPAL POWER AGENCY
This Contract, dated as of April 1980, between and
among CITY OF , a city organized and existing under the
laws of the State of Indiana, CITY OF , a city organized and
existing under the laws of the State of Indiana, CITY OF ,
.a city organized and existing under the laws of the State of Indiana,
CITY OF , a city organized and existing under the laws of
the State of Indiana, CITY OF , a city organized and exist-
ing under the laws of the State of Indiana, CITY OF , a city
organized and existing under the laws of the State of Indiana, CITY
OF , a city organized and existing under the laws of the
State of Indiana, CITY OF , a city organized and existing
under the laws of the State of Indiana, CITY OF , a city
organized and existing under the laws of the State of Indiana, TOWN
OF , a town organized and existing under the laws of the
State of Indiana, and TOWN OF , a town organized and exist-
ing under the laws of the State of Indiana (herein referred to col-
lectively as the "Municipalities") and any and all Indiana cities and
towns becoming parties to this Contract in accordance with its terms
after the date hereof (said cities and towns together with the
Municipalities being herein collectively referred to as the
"Members"),
W I T N E S S E T H
WHEREAS, I.C. 8-1-2.2 (herein referred to as the "Act",
Which term includes any amendment thereof), permits the governing
bodies (as such term is defined in the Act and herein referred to as
a "governing body" or' *governing bodies", as the case may be) of two
or more cities and towns in the State of Indiana or any board,
agency, or commission thereof, owning and operating on January 1,
1980, an electric utility which furnishes retail electric service to
the public, to create a joint agency (referred to herein as an
"Agency," which term has the same meaning herein as the term "joint
agency" as defined in the Act) by the execution of a contract autho-
rized by the resolution or ordinance of the governing body of each
city and town; and
WHEREAS, the Act provides that an Agency shall have certain
rights and powers enumerated therein, all of which the Municipalities
desire to exercise through the formation of an Agency; and
WHEREAS, each of the Municipalities is a city or town in
the State of Indiana, owning and operating on January 1, 1980, an
electric utility which furnishes retail electric service to the
public; and
WHEREAS, the governing body of each Municipality has con-
sidered whether cost reduction, effeciencies or other advantages may
be realized by creating an Agency and whether better financial market
acceptance may result if an Agency is responsible for issuing all of
the bonds for a project or projects in a timely and orderly manner
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and with uniform credit ratings as opposed to multiple Municipalities
making separate issues of bonds; and the governing body of each
Municipality has determined that it is in the best interest of such
Municipality to create an Agency, for the purpose of undertaking the
planning, financing, ownership, and operation of a project or
projects to supply electric power and energy for its present and
future needs; and
WHEREAS, the governing body of each of the Municipalities
has authorized and approved this Contract by resolution or ordinance
being duly adopted (a certified copy of each such resolution or ordi-
nance being attached to the copy hereof); and
WHEREAS, each of the Municipalities desires to become a
member of the below -mentioned Agency pursuant to the Act by the exe-
cution of this Contract.
NOW, THEREFORE, each of the Municipalities (and each of the
Indiana cities and towns becoming a Member of the below -mentioned
Agency after the date hereof) does hereby covenant and agree, each in
consideration of the foregoing and in consideration of the covenants
and agreements of the others, as follows:
ARTICLE 1
Creation, Name, Purposes and Powers
1.1 Pursuant to the Act, the ordinances attached hereto
- and this Contract, there is hereby created a joint agency under the
provisions of the Act which shall be a body corporate and politic and
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a political subdivision of the State of 'Indiana,. to exercise
thereunder a part of the sovereign powers of the -state.
1.2 The name of the Joint agency created by this Contract
shall be Indiana Municipal Power Agency (the 'Municipal Power
Agency").
1.3 Except as specifically provided to the contrary in
this Contract or in the Municipal Power Agency's Sy -Laws as the same
may be amended from time to time, the Municipal Power Agency shall
conduct its affairs in accordance with the Act for the purposes
authorized therein and to that end shall be empowered to exercise all
powers granted by the Act.
ARTICLE 2
Members
2.1 The cities and towns which have initially approved
this Contract and are the initial Members of the Municipal Power
Agency are.
Indiana
Indiana
■ Indiana
Indiana
■ Indiana
Indiana
Indiana
Indiana
Indiana
Indiana
Indiana
2.2 Any city or town qualified under the Act which desires
to join the Municipal Power Agency subsequent to its creation pursu-
ant to this Contract shall indicate its desire by depositing with the
Chairman of the Municipal Power Agency a supplement to this Contract
_4
executed by such city or town and an acceptable resolution or
ordinance of the governing body of such city or town authorizing such
execution. A city or town shall become a Member of the Municipal
Power Agency upon approval of its executed supplement to this
Contract by a vote of the majority of all the Municipal Power
Agency's Board of Commissioners. The Board of Commissioners may con-
dition such approval upon payment of such amount by new Members as it
shall determine is equitable taking into account assessments previ-
ously imposed on Members and expended in a manner which will benefit
a new Member and upon such other matters as it deems appropriate.
Such new Member's membership shall become effective upon such
approval and compliance with such conditions, if any, established by
the Board of Commissioners. For purposes of voting upon approval of
the addition of new Members, each Commissioner shall have one vote.
ARTICLE 3
Board of Commissioners, Voting
3.1 The Board of Commissioners of the Municipal Power
Agency shall be comprised of one Commissioner appointed by the gov-
erning body of each Member.
3.2 Except as specifically provided to the contrary in
this Contract as the same may be amended from time to time, the total
number of votes entitled to be cast on any matter which comes before
the Board of Commissioners shall equal three times the number of
Members. Each Commissioner shall have one vote plus such additional
number of votes as shall be determined by multiplying twice the
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number of Members by a fraction the numerator of which shall be the
kilowatt hour sales during the test year of. the Member which such
Commissioner represents and the denominator of which shall be the
total kilowatt hour sales of all Flembers during the test year and
rounding the result to the nearest one -tenth of a vote. For purposes
of this Section 3.2, 'test year' shall mean the calendar year ending
prior to the date of the Member's most recent report to the Secretary
of the Municipal Power Agency pursuant to the following sentence. On
or before February 15 of each year, each Member shall report to the
Secretary of the Municipal Power Agency the number of kilowatt hour
sales of such Member's electric utility for the previous calendar
year. Before March 1 of each year, the Secretary of the Municipal
Power Agency shall compile such information and compute the number of
votes for each Commissioner and report the results to the Board of
Commissioners.
ARTICLE 4
4.1 The Municipal Power Agency shall have officers as
specified in the By -Laws of the Municipal Power Agency.
ARTICLE 5
Annual Budget; Assessments
5.1 Not less than 70 days prior to each fiscal year of the
Municipal Power Agency, the Board' of Commissioners shall adopt an
annual assessment budget for such fiscal year which shall specify
Sm
those expenditures which are to be paid from assessments of the
Members. The annual assessment budget will also specify a schedule
of assessments or method for determining the assessment of each
Member.
5.2 Not less than 60 days prior to each fiscal year of the
Municipal Power Agency, the Board of Commissioners shall submit the
annual assessment budget to the governing body of each Member. Any
Member which does not agree to be bound by the schedule of assess-
ments or method for determining the assessment of each Member speci-
fied in the annual assessment budget shall give notice of withdrawal
as provided in Section 7.1 hereof prior to the commencement of the
fiscal year of the Municipal Power Agency to which such annual
assessment budget relates. Any Member which does not so withdraw
shall be bound to pay the assessments set forth in or determined pur-
suant to the method established by such annual assessment budget.
5.3 This Article 5 shall not prevent the adoption of oper-
ating budgets and budgets relating to expenses or bond proceeds or
other budgets which relate to moneys other than moneys raised via
assessments.
5.4 All assessments shall be payable solely from the reve-
nues derived from the ownership and operation of the Member's elec-
tric system and assessments may not constitute legal or equitable
pledges, charges, liens, or encumbrances upon any property of the
Member or upon any of its income, receipts, or revenues, except the
revenues of the Member's electric system, and neither the faith and
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credit nor the taxing power of the Member may be pledged for the
payment of any assessments.
ARTICLE 6
Executive Committee
6.1 The Board of Commissioners may designate an Executive
Committee. The membership, powers and operating procedures of the
Executive Committee shall be as specified in the By -Laws of the
Municipal Power Agency.
ARTICLE 7
7.1 Any Member may withdraw from the Municipal Power
Agency upon 60 days written notice to the Municipal Power Agency,
provided, however, withdrawal from the Municipal Power Agency shall
not relieve a Member of its obligations for amounts owed under the
Municipal Power Agency's current annual assessment budget or under
any contract between the withdrawing Member and the Municipal Power
Agency. Withdrawal shall not become effective until the withdrawing
Member has discharged all of its duties and obligations to the
Municipal Power Agency up to the date of withdrawal.
ARTICLE 8
Bx-Laws
8.1 The Municipal Power Agency shall have such By -Laws as
shall be adopted by a vote of the majority of all the Municipal Power
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Agency's Board of Commissioners. Such By -Laws shall be amended in
the manner specified therein. For purposes of voting upon adoption
of the By -Laws, each Commissioner shall have one vote.
ARTICLE 9
Amendments
9.1 This Contract may be amended by the execution of an
amendment by all Members which has been (a) approved by a unanimous
vote of all Commissioners, each casting one vote, and (b) approved
and concurred in by a resolution or ordinance adopted by the govern-
ing body of each Member .
IN WITNESS WHEREOF, the undersigned have executed this
Contract as of the date first written above, in counterpart copies,
each of which shall constitute an original copy but all of which
together shall constitute one and the same instrument.
(Seal)
Attest
CITY OF , Indiana
By
Name Name
Title Title
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DRAFT
3-12-80
CONTRACT
between and among
City of City of
City of City of
City of City of
City of City of
City ❑f Town of
and
Town of
and
any and all qualified Indiana cities and towns becoming a
party to this Contract pursuant to its terms after the date
hereof
Dated as of April , 1980
[Relating to the creation of the Indiana Municipal Power Agency by
the above -named Indiana cities and towns as Members]
CONTRACT CREATING THE INDIANA KNICIPAL POWER AGENCY
CONTRA[.'
between and among
City of Richmond, Indiana
City of
City of
City of
City of
City of
City of
City of
City of
Torn of
and
Town of
and
any and all qualified Indiana cities and towns becoming a party to
this Contract pursuant to its terms after the date hereof
Dated as of , 1980
(Relating to the creation of the Indiana Municipal Power Agency by the
above -named Indiana cities and towns as Members)
CONTRACT CREATING THE
INDIANA MUNICIPAL POWER AGENCY
This Contract, dated as of , 1980, between and among
CITY OF RICEMM, INDIANA, a city organized and existing under the laws
of the State of Indiana, CITY OF , a city organized and existing
under the laws of the State of Indiana, CITY OF , a city organ-
ized and existing under the laws of the State of Indiana, CITY OF
, a city organized and existing raider the laws of the State of
Indiana, CITY OF , a city organized and existing under the laws
of the State of Indiana, CITY OF , a city organized and existing
under the laws of the State of Indiana, CITY OF , a city organized
and existing under the laws of the State of Indiana, CITY OF ,
a city organized and existing under the laws of the State of Indiana,
CITY OF , a city organized and existing under the laws of the
State of Indiana, TOWN OF , a town organized and existing under
the laws of the State of Indiana, and TOWN OF , a town organized
and existing under the laws of the State of Indiana (herein referred to
collectively as the 'T micipalities") and any and all Indiana cities and
towns becoming parties to this Contract in accordance with its terms after
the date hereof (said cities and towns together with the municipalities
being herein collectively referred to as the "Members"),
w I T N E S S E T H
WBERFAS, I.C. 8-1-2.2 (herein referred to as the "Act", which
term includes any amendment thereof), permits the governing bodies (as
such term is defined in the Act and herein referred to as a "governing
body" or "governing bodies", as the case may be) of two or more cities
and towns in the State of Indiana or any board, agency, or commission
thereof, owning and operating on January 1, 1980, an electric utility
which furnishes retail electric service to the public, to create a
joint agency (referred to herein as an "Agenc)", which terra has the
same meaning herein as the term "joint agency" as defined in the Act)
by the execution of a contract authorized by the resolution or ordinance
of the governing body of each city and town; and
WEERPAS, the Act provides that an Agency shall have certain
rights and powers enumerated therein, all of which the Municipalities
desire to exercise through the formation of an Agency; and
WHEREAS, each of the Municipalities is a city or town in the
State of Indiana, owning and operating on January 1, 1980, an electric
utility which furnishes retail electric service to the public; and.
WHBREAS, the governing body of each amicipality has consid-
ered whether Cast reduction, effeciencies or other advantages may be
realized by creating an Agency and whether better financial market accept-
ance nay result if an Agency is responsible for issuing all of the bonds
for a project or projects in a tamely and orderly manner and with uniform
_..... __
credit ratings as opposed to multiple Mumicipalities making separate
issues of bonds; and the governing body of each Municipality has
determined that it is in the best interest of such Municipality to
create an Agency, for the purpose of undertaking the planning,
financing, ownership, and operation of a project or projects to supply
electric power and energy for its present and future needs; and.
WHEREAS, the governing body of each of the Municipalities
has authorized and approved this Contract by resolution or ordinance
being duly adopted (a certified copy of each such resolution or
ordinance being attached to the copy hereof); and
*1EREAS, each of the Municipalities desires to become a
member of the below -mentioned Agency pursuant to the Act by the
execution of this Contract.
NOW, THEREFORE, each of the Municipalities (anal each of
the Indiana cities and towns becoming a Member of the below -
mentioned Agency after the date hereof) does hereby covenant and
agree, each in consideration of the foregoing and in consideration
of the covenants and agreements of the others, as follows:
ARTICLE I
CREATION, KOM , PURPOSES AND POWERS
1.1 Pursuant to the Act, the ordinances attached hereto and
this Contract, there is hereby created a joint agency under the pro-
visions of the Act which shall be a body corporate and politic and a
political subdivision of the State of Indiana, to exercise thereunder
a part of the sovereign powers of the state.
1.2 The name of the joint agency created by this Contract
shall be Indiana Municipal Power Agency (the "fiLnicipal Power Agency").
1.3 Except as specifically provided to the contrary in this
Contract or in the Municipal Power Agency's By -Laws as the same may be
amended from time to time, the himicipal Power Agency shall conduct its
affairs in accordance with the Act for the purposes authorized therein
and to that end shall be empowered to exercise all powers granted by
the Act.
ARTICLE II
2.1 The cities and towns which have initially approved this
Contract aaxi are the initial Members of the Municipal Power Agency
are:
Richmond, Indiana
Indiana
Indiana
Indiana
Indiana
, Indiana
Indiana
Indiana
Indiana
Indiana
Indiana
2.2 Any city or town qualified under the Act which desires
to join the Municipal Power Agency subsequent to its creation pursuant
to this Contract shall indicate its desire by depositing with the
Chairman of the Municipal Power Agency a supplement to this Contract
executed by such city or town and an acceptable resolution or ordinance
of the governing body of such city or town authorizing such execution.
A city or town shall become a Member of the Municipal Power Agency
upon approval of its executed supplement to this Contract by a vote of
the majority of all the Municipal Power Agency's Board of Commissioners.
The Board of Commissioners may condition such approval upon payment of
such amount by new Members as it shall determine is equitable taking
into account assessments previously imposed on Members and expended in
a marmcr which will benefit a new Member and upon such other matters
as it deems appropriate. Such new Member's membership shall became
effective upon such approval and compliance with such conditions, if
any, established by the Board of Commissioners, For purposes of voting
upon approval of the addition of new Members, each CommissloneT shall
have one vote.
ARTICLE III
BQM OF OC&HISSiONERS, VOTING
3.1 The Board of Commissioners of the Municipal Power Agency
shall be comprised of one Coi missi.oner appointed by the governing body
of each Member.
3.2 Ibccept as specifically provided to the contrary in this
Contract as the same may be amended from time to time, the voting
procedures of the Board of Commissioners of the Municipal Power Agency
shall be as specified in the By -Laws of the Municipal Power Agency.
ARTICLE IV
OFFICERS
4.1 The Municipal Power Agency shall have officers as speci-
fied in the By -Laws of the Municipal Power Agency.
ARTICLE V
ANNUAL BUDGET: ASSESSMENTS
5.1 Not less than 74 days prior to each fiscal year of the
Municipal Power Agency, the Board of Commissioners shall adopt an annual
assessment budget for such fiscal year which shall specify those expen-
ditures; which are to be paid from assessments of the Members. The
annual assessment budget will also specify a schedule of assessments or
method for determining the assessment of each Member.
5.2 Not less than 60 days prior to each fiscal year of the
Municipal Power Agency, the Board of Commissioners shall submit the
annual assessment budget to each Member. Any Member which does not
agree to be bound by the schedule of assessments or method for deter-
mining the assessment of each Member specified in the annual assessment
budget shall give notice of withdrawal as provided in Section 7.1
hereof prior to the commencement of the fiscal year of the b micipal
Power Agency to which such annual assessment budget relates. Any Member
which does not so withdraw shall be bound to pay the assessments set
forth in or determined pursuant to the method established by such
annual assessment budget.
5.3 Any time the Board of Commissioners determines that the
annual assessment budget no longer properly reflects the expenditures
which are to be incurred within the fiscal year, the Board of
Commissioners may vote to amend such budget and the schedule of assess-
ments or method for determining the assessment of each Member specified
therein. No more than 10 days following any such amendment, the Board
of Commissioners shall give notice thereof to each Member. Any Member
which does not agree to be bound by the amended schedule of assessments
or method for determining the assessment of each Member shall give
notice of withdrawal as provided in Section 7.1 hereof not more than
30 days following the date: of the notice of the amendment to the annual
assessment budget. Any Member which does not so withdraw shall be bound
to pay the assessments set forth in or determined pursuant to the method
established by such amended annual assessment budget.
5.4 This Article 5 shall not prevent the adoption of operat-
ing budgets and budgets relating to expenses or bond proceeds or other
budgets which relate to moneys other than moneys raised via assessments.
5.5 All assessments shall be payable solely from the revenues
derived from the ownership and operation of the Member's electric
system and assessments may not constitute legal or equitable pledges,
charges, liens, or encumbrances upon any property of the Member or upon
any of its inc me, receipts, or revenues, except the revenues of the
Member's electric system, and neither the faith and credit nor the
taxing power of the Member may be pledged for the payment of any
assessments.
ARTICLE VI
E MCUTIV,B COMIIITTEE
6.1 The Board of Commissioners may designate an Executive
Committee. The membership, powers and operating procedures of the
Executive Committee shall be as specified in the By -Laws of the
Municipal Power Agency.
ARTICLE VII
1WJJ VN117
7.1 Any Member may withdraw from the Municipal Power
Agency upon 30 days written notice to the Municipal Power Agency,
provided, however, withdrawal from the Municipal Power Agency shall
not relieve a Member of its obligations for amounts owed under the
R micipal Power Agency's current annual assessment budget or under
any contract between the withdrawing Member and the Municipal Power
Agency. Withdrawal shall not became effective until the withdrawing
Member has discharged all of its duties and obligations to the
Municipal Power Agency up to the date of withdrawal.
ARTICLE VIII
BY-LAWS
8.1 The Municipal Power Agency shall have such By -Laws
as shall be adopted by a unanimous vote of all Commissioners. Such
By -Laws shall be amended in the manner specified therein which may
be less than by a unanimous vote. For purposes of voting upon
adoption and amendment of the By -Laws, each Commissioner shall have
one vote.
ARTICLE IX
i� r is
9.1 This Contract may be amended by the execution of an
amendment by all Members which has been (a) approved by a unanimous
vote of all Commissioners, each casting one vote, and (b) approved
and concurred in by a resolution or ordinance adopted by the
governing body of each Member.
IN WITNESS WHEREOF, the undersigned have executed this
Contract as of the date first written above, in counterpart copies,
each of which shall constitute an original copy but all of which
together shall constitute one and the same instrunent.
CITY OF RIaMND, INDLVNA
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