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HomeMy WebLinkAboutRESO 6087I -ORIGINAL RESOLUTION NO. 6087 RESOI,UTION OF THE CITY COUNCIL OF THE CITY OF PAl~O ALTO AUTHORIZING THE CITY MANAGER TO ISSUE A LETTER AGREEING TO SUBORDINATE ANY INTEREST IN THE NCPA EAST BLOCR SHELL PROJECT TO A LETTER OF CREDIT IN THE AMOUNT OP $30 MILLION DOLLARS WHEREAS, the Northern California Power Agency's Shell East Block Project (hereinafter •project•), now consists of two 55 MW generating units, and the steam supply for those units is subject to the prior claim of Project N~. 21 and WHEREAS, NCPA now realizes it may be necessary to eliminate the prior claim of Project No. 2 to steam in order to finance the East Block Project, and the present participants in both projects appear to be willing to negotiate to reach such an arrangement: and WBEREAS, the City of Palo Alto desires to effect an ownernship interest in the East Block Project on the condition that the prior claim to steam of Project No. 2 is eliminated~ and WHEREAS, the assumption by Palo Alto of the rights and obli9ations assc~iated with 5 MW of the project wi 11 strengthen the financial viability of the project: NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PALO ALTO, as follows: The attached letter sent by the City Manager of O'M~lveny • Myers as ~ounsel for the bank or banks which are arra~gin9 temporary f inancin9 for the project for NCPA is hereby approved a~d ratified, and the City ~\anger is authorized to send another similar confirming letter to the banks through their counsel, and to undertake any other reason- able steps to effectuate the temporary financing vf the Project consistent with this resolution. ADOPTED this 10th day of January, 1983 by the fellowing vote: INTROOUCED AND PASSED: January 10, 1983 AYES: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levys Witherspoon NOES: None ABSTENTIONS: None ABSENT: Renzel APPROVED: &2 AlZ;/ Cit MayoriJ AP~ TO FORM: ~~JM~ Ci y At ey ,_ ; I I I. ... Cnp of J'alo )llto January 4, 1983 National Westminster Bank, PLC. Merrill Lynch International Bank, Limited The Mitsubishi Bank, Ltd. c/o Edward J. McAniff, Esq. O'Melveny and Myers 400 South Bope Los Angeles, CA 90071-2899 Dear Mr. McAniff: The City of Palo Alto anderstends that you are contemplating extending a $30M letter of credit (hereafter •r,oc•) to RCPA upon security of the terms and conditions of its Second Phase Member Agreement respecting the ~hell Bast Block Project. Whether Palo Alto is offered a share in the Proj~ct by the Second Phase participants or Palo Alto is entitled to participate in the Project notwithstanding the provisions of the S.ec:ond Pbaae Agreeaent, Palo Alto does not, and will not, assert that the obligations of MCPA and its signatory •embers to the iasuer of the LOC undertaken pursuant to the Second Phase Agreement, are invalid, or nonbinding, or that tbey are impaired in any way by Palo Alto's interest, if any. Palo Alto does not seek by its assertion of a right to p•rticipate any relief other than a percentage share of the owner- ahip and o~tput of the Project, for vhich,if ob~ained, it will under- t~• to pay th•t .... pP.rcentage share of all coat• of the Project, for th• benefit and uee of the issuer of tbe LOC and the holders and truat••• for the boldera of any bond anticipation notes (•BANs•) iesued on tbe Project in tbe same manner aa other participants in the Project. Palo Alto will not, at any tiae, •••k to prevent the payaent of aoneya owed by MC'IA and ita atgnatory aeabera under the Second l'baae Agreement or otherwise to th• iaauer of the LOC or tQ the holders and tru•teea for tb• holder• of BAiia. January 4, 1982 Page 2 This letter is issued solely fer the benefit and reliance of the issuer of the LOC and the holders and trustees for the holders of any BANS issued for the Project and their heirs, successors and assigns. It is intended that this letter will be authorized end ratified by resolution of the City Council of the City of Palo Alto ado~ted nn January 10, 1983. Very truly yours, Will am Zaner City Manager City of Palo Alto i wz :pbc ORIGINAL RESOLUTION NO. 6088 RESOLUTION OF TBE COUNCIL OF THE CITY OF PALO ALTO ACCEPTING GRANT FROM CALI PORN IA ARTS COUNCIL FOR CREATION LOCATION PROJECT OF THE PALO ALTO CULTURAL CENTER . WHEREAS, the Palo Alto Cultural Center, a subdivision of the Palo Alto Arts and Sciences Division, exists to provide high quality pro- qrams and activities which increase and enhance the public awareness and appeciation of the visual arts: and WHEREAS, ~he Creation Location project, developed by the ralo Alto Cultural Center, is a participatory gallery offering intellectual and hands-on experiences with lhe arts for the general public~ and WDEREAS, the Califoria Arts Council (CAC) Artistic and Administra- tive Development Program, which provides financial support to local arts organizations fo~ project support, has agreed to assist the Creation Location project through a grant of matching fundSi and WHEREAS, the City must accept this grant through formal action1 NON, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City of Palo Alto accepts a grant of Two Thousand Three Bu1iared Bi9hty-five Dollars ($2,385.00) from the CAC Artistic and Administrative Dovelopaent Program. to match funds expended by the Palo Alto Cultural Center on the creation Location project. SICTIOR 2.. The Creation Location project will be ccnducted and th• qrant aoniea expended in accordance with an aqreeaent numbered AC-2662, entered into between the Palo Al to Cultural Center and the Director of the CAC and dated October t, 1982. SBCTION 3. The City Manager, or "'is desi9nee, is designated as the officiaI representative of the City of Palo Alto and ia au~horized to accept grant funds from the CAC Artistic and Ad•inistrative Develop- aent Progru and to complete such documents as are necessary to the a\!ceptance of s•.1ch funds. ~ECTIOM •. The Council of the City of Palo Alto finds that this is not a project under tbe C•lifornia Environmental Quality Act, and, therefore, no en~ironaental impact assessment is necessary. I!f'l'RODOCED AHD PASSED: January 17, 1983 ADSr Bechtel .. Cobb, Eyerly. Fazzino, Fletcher, Kle1n MOU: None ABSTIJITIONSr None ABSDT: Levy, Renzel, Witherspoon