HomeMy WebLinkAboutResolutions - No. 97-11RESOLUTION NO. 97-11
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING AND AUTHORIZING THE EXECUTION OF THE
AGREEMENT FOR FINANCING ELECTRIC CAPACITY WITH
THE NORTHERN CALIFORNIA POWER AGENCY
WHEREAS, the Northern California Power Agency C NCPA") has entered into
that certain WWP-NCPA 20 -Year Power Sale Agreement ("Power Sale Agreement's
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 50MW 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'), the City
of Lompoc, the City of Palo Alto, the City of 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;
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
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 Lodi (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, THER _e ORE, BE IT RESOLVED by the Lodi %,rty Council 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
City Manager 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 City Manager, whose execution of the Agreement will be
conclusive evidence of such approval.
Section 2. The Lodi City Council 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 City Manager, the Electric Utility Director 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.
Dated: January 21, 1997
I hereby certify that Resolution No. 97-11 was passed and adopted by the City
Council of the City of Lodi in a special meeting held January 21, 1997 by the following
vote:
AYES: . Council Members - Land, Mann, Warner and Pennino (Mayor)
NOES: Council Members - None
ABSENT: Council Members - Sieglock
ABSTAIN: Council Members - None
97-11