HomeMy WebLinkAboutRESO 9153Resolution No. 9153
Resolution of the Council of the City of Palo Alto to
Withdraw from the Financing Authority for Resource
Efficiency of California
WHEREAS, the City of Palo Alto (City) entered into a Joint Powers Agreement
creating the Financing Authority for Resource Efficiency of California (F ARECal) dated July 1,
1993; and
WHEREAS, the City is a Charter Member of F ARECal; and
WHEREAS, currently active members of F ARECal are the Cities of Anaheim,
Azusa, Colton, Pasadena, Palo Alto, Riverside, the Marin Water District and the Trinity Public
Utility District; and
WHEREAS, F ARECal was formed to enable financing for activities, programs
andlor equipment designed to conserve, change usage patterns or reduce the demand for
electrical or other energy or capacity, natural gas or water, including water reuse or recycling,
and any other programs, equipment or facilities which meet resource efficiency or management
needs or requirements; and
WHEREAS, the Cities of Azusa and Colton have outstanding bonds financed
through F ARECal totaling $47.3 7 million; and
WHEREAS, City, through the Joint Powers Agreement, incurs liability risk in the
event of default under a contract with F ARECal; and
WHEREAS, City has agreed to fund F ARECal operations under the Joint Powers
Agreement; and
WHEREAS, City has no current financing needs and anticipates no future financing
needs through F ARECal; and
WHEREAS, City desires to mitigate its exposure and liability risk and reduce its
costs in funding F ARECal; and
WHEREAS, City intends to withdraw from F ARECal upon settlement of any
outstanding payment obligations.
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE
as follows:
SECTION 1. That the Council of the City of Palo Alto hereby authorizes the
City Manager, consistent with Section 5.4 of the Joint Powers Agreement to provide notice to
F ARECal of such withdrawal.
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