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HomeMy WebLinkAboutReso. 1983 - 021 - Ratifying the action of the city manager in issuing a letter agreeing to subordinate any interest in the ncpa east block shell project to a letter of credit in the amount of thirty million dollars RESOLUTION NO. a. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING RATIFYING THE ACTION OF THE CITY MANAGER IN ISSUING A LETTER AGREEING TO SUBORDINATE ANY INTEREST IN THE NCPA EAST BLOCK SHELL PROJECT TO A LETTER OF CREDIT IN THE AMOUNT OF THIRTY MILLION DOLLARS ($30 , 000 , 000 . 00) . WHEREAS, the Northern California Power Agency' s Shell East Block Project (hereinafter "Project") now consists of two fifty . five megawatt generating units and the steam supply for those units is subject to the prior claim of Project No. 2; 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 as evidenced in NCPA Resolution No. 82-67; and WHEREAS, the City of Redding desires to effect an ownership ,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 Redding of the rights and obliga- tions associated with two megawatts of the project will strengthen the financial liability of the project; . NOW, THEREFORE, BE IT RESOLVED by the City Council of the " City of Redding that the action taken by the City Manager on Monday, January 10 , 1983 in issuing a letter on behalf of the City of Redding agreeing to subordinate an interest in the NCPA East Block Project to a letter of credit in the amount of thirty .� . am . . 0.• ' ' • , ' . million dollars ($30 , 000 , 000 . 00) is hereby approved and ratified as if it were an action of the City Council on that date. I HEREBY CERTIFY that the foregoing Resolution was intro- • duced and read at a regular meeting of the City Council of the City of Redding on the 17th day of January , 1983, and was duly adopted at said meeting by the following vote: AYES: COUNCILMEN: Demsher, Fulton, Kirkpatrick, Pugh, and Gard NOES: COUNCILMEN: None ABSENT: COUNCILMEN: None . . . iii, :A i% ALLEN GARD, ^ayor . ATTEST: ETHEL A. NICHOLS, City Clerk • FORM AP'ROVED: : ' RA TALL A. HAYS, City/ ttorney 6• -2- . •