HomeMy WebLinkAboutRESO7647RESOLUTION NO. 7647
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT FOR FINANCING ELECTRIC CAPACITY WITH THE
NORTHERN CALIFORNIA POWER AGENCY
WHEREAS, the Northern California Power Agency ("NCPA") has
entered into that certain WWP-NCPA 20 -Year Power Sale Agreement
("Power Sale Agreement") effective as of October 10, 1991, between
NCPA and The Washington Water Power Company ("WWP") pursuant to
which NCPA has acquired, as agent for those members of NCPA
executing the Third Phase Agreement mentioned below 50 MW of firm
electric capacity and associated energy; and
WHEREAS, NCPA has entered into that certain Northwest
Resource Third Phase Agreement (the "Third Phase Agreement"), dated
as of October 11, 1991, among NCPA and the City of Alameda, the
City of Healdsburg, the City of Lodi, the City of Lompoc, the City
of Palo Alto (the "City"), the City of Roseville ("Roseville") , the
Turlock Irrigation District and the City of Ukiah (collectively,
the "Project Beneficiaries"), pursuant to which NCPA has sold the
electric capacity and associated energy purchased under the Power
Sale Agreement to the Project Beneficiaries and each of the Project
Beneficiaries is obligated to pay its respective share of the costs
incurred by NCPA in connection with the Power Sale Agreement,
including the cost of capacity thereunder; and
WHEREAS, the City and Roseville have entered into that
certain agreement entitled "AGREEMENT BETWEEN THE CITIES OF PALO
ALTO AND ROSEVILLE FOR THE ASSIGNMENT OF CAPACITY IN THE NORTH FORK
STANISLAUS RIVER HYDROELECTRIC DEVELOPMENT PROJECT AND OTHER
ELECTRIC RESOURCES," dated June 14, 1991, to transfer a portion of
the City's rights and obligations with respect to the WWP purchase.
and other resources to Roseville; and
WHEREAS, NCPA and the Project Beneficiaries have determined
there are significant economic savings by paying WWP a one-time
payment equal to the present value of all unpaid fixed charges with
respect to the capacity purchased under the Power Sale Agreement to
June 30, 2001 (the "Capacity Payment") and to terminate the Power
Sale Agreement including the obligations thereunder with respect to
fixed charges for transmission under the Transmission Agreement (as
defined in the Power Sale Agreement); and
WHEREAS, the City has requested NCPA to issue its bonds for
the purpose of financing the City's share of the Capacity Payment;
and
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•. •
WHEREAS, NCPA is to undertake the financing of the City's
share of the Capacity Payment as provided in the Agreement for
Financing Electric Capacity between NCPA and the City of Palo Alto
(such agreement in the form presented to this meeting with such
changes, insertions and deletions as are made pursuant to this
resolution being referred to herein as the "Agreement"); and
WHEREAS, there has been prepared and submitted to this.
meeting a form of the Agreement;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION 1. The Agreement, in 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. The Mayor is hereby authorized
and directed to execute and deliver the Agreement in the form
presented to this meeting with such changes, insertions and
deletions, which deletions may include the proviso clause at the
end of Section 6(a) of the Agreement, as may be approved by the
Mayor, whose execution of the Agreement will be conclusive evidence
of such approval.
SECTION 2. The Council of the City of Palo Alto does
hereby find and determine that there are significant public
benefits in financing the City's share of the Capacity Payment
through the issuance of bonds by NCPA as contemplated by the
Agreement in that there are demonstrable savings in effective
interest rate, bond preparation, bond underwriting and bond
issuance costs that can be achieved through such financing.
SECTION 3. The Mayor and any other proper officer of the
City, acting singly, be and each of them hereby is authorized and
directed to execute and deliver any and all documents or
instruments and to do and perform any and all acts and things
necessary or proper for carrying out the transactions contemplated
by the Agreement and by this Resolution.
SECTION 4. The approval of the Agreement does not
constitute a project under the California Environmental Quality
Act, and no environmental assessment is necessary.
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SECTION S. In accordance
the Palo Alto Municipal Code, th
immediately upon its adoption.
INTRODUCED AND PASSED: January
AYES: ANDERSEN, EAKINS, FAZZINO,
WHEELER
NOES:
ABSENT
ABSTENTIONS:
Aril: T:
City Clerk
APPROVED AS TO FORM
Senior Est. Cit
Attorney
with Section 2.04.350(a) (6) of
is Resolution shall take effect
21, 1997
HUBER, KNISS, MCCOWN, ROSENBAUM, SCHNEIDER,
Ci Mana
Direct es
e
Deput ity Manager,
Administrative Services
970116 syn 0071108
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