HomeMy WebLinkAboutRESO 6358~------.--------.~ -----------------------.
RESOLUTION NO. 6358
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING THE AGREEMENT FOR SALE OF SURPLU!;;
CAPACITY AND ENERGY OF THE NORTH FORK STANISLAUS
RIVER HYDROELECTRIC DEVELOPMENT PROJECT
WdEREAS, NCPA and each of the Project Participants have entHred
into the Third Phase Agreement pursuant to which NCPA has agreed to
provide, and each of the Project Participants has agreed to take or
cause to be taken, their respective Project Entitlement Percentages of
the capacity and energy of the P~oject; and
WHEREAS, the City of Redding has determined not to participate in
the Project; and
WHEREAS, in order to finance the cost of the Project, it ie
necessary that the aggregate of the Project Entitlement Percentages of
all Project Participants willing to participate in the Project equal
100%: and
WHEREAS, in order to permit the financing to p~oceed, the
Purchasing Participants have agreed to take, or cause to be taken, the
City of Redding's Project Entitlement Percentage and to that endr each
will enter into the Transfer Agreement: and
WHEREA:!, Sections 9 and 10 of the Third Phase Agreement authorize
each Project Participant, subject to the terms and conditions thereof,
to transfer, assign, sell or exchange all or a portion of the surplus
Project capacity and energy to which it is entitled7 and
WHEREAS, Section 10 of the Third Phase Agreement provides certain
terms and conditions to the sale by NCPA of surplus Project capacity
and energy: and
WHEREAS, a~ an inducement to the Purchasing Participants to enter
into the Transfer Agreement and to take, or cause to be taken, the
Purchased Project Entitlement Percenta~es, the other Project
Participants have determined that, notwithstanding their rights to sell
surplus Project capa~ity and energy under the Third Phase Agreement, to
permit any such transfer or sale under a Long Term Power Purchase
Contract to be deemed a transfer or sale of the ~urchased Project
Entitlement Percentages, all on the terms and conditions contained in
the Agreement for sale of surplus Capacity and Energy of the North Fork
Stan~slaus River Sydroelectric Development Project (the •sale
Agreement•);
WHEREAS, th~re has been proposed and submitted to this meeting a
form of the Sale Agreement.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE
as follows;
SECTION 1. The Council hereby finds and determines that the terms
and conditions of the Sale Agreement in substantially the form
submitted to this meeting and made a part hereof as though set forth in
full herein be, and the same is hereby, approved.
SECTION 2. The City is hereby authorized to enter into the Sale
Agreement and the Mayor and the City Manager are hereby authorized to
execute and deliver the Sale Agreement by and on behalf of the City
with such changes, insertions and omissions as may be approved by the
City Attorney, consistent with the intention of the City Council, said
execution being conclusive evidence of such approval.
SECTION 3. The Mayor and the City Manager, and any other proper
officer of the City, acting singly, be and each of them hereby is
aut~orized and directed to execute and deliver any and all documents
and instruments and to do and cause to be done any and all acts and
things necessary or proper for carrying out the transactions
contemplated by the Sale Agreement and by this resolution.
INTRODUCED AND PASSED;
AYES: Cobb, Klein, Levy, Sutorius,
Witherspoon, Woolley
NOES: Bechtel, Fletcher, Renzel
ABSTENTIONS:
ABS ENT: None