HomeMy WebLinkAboutReso 2004-175 - Transmission Capacity Acquisition
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RESOLUTION NO. 2004-175
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OlF REDDING
APPROVING AND AUTHORIZING THE CITY MANAGER AND THE
ELECTRIC UTILITY DlIRECTOR TO SIGN THE TRANSMISSION CAPACITY
ACQUISITION AGREEMENT AND THE SUPPLEMENTAL ENERGY SALE
AND SCHEDULING AGREEMENT RESPECTIVELY WITH THE CITY OF
SHASTA LAKE AND APPROVING A TWO YEAR PURCHASEIEXCHANGE
TRANSACTION
WllEREAS the City of Shasta Lake desires to sell its ownership percentage of 1.5856 percent or
approximately 25.3696 MW of transmission capacity in the California Oregon Transmission Project (The
Project); and
WHEREAS the City of Redding desires to purchase said Project; and the City of Shasta Lake
desires to purchase supplemental energy and certain associated services; and
WHEREAS the City of Redding expects to pay certain expenditures (the "Reimbursement
Expenditures") in connection with the acquisition of the Project prior to the issuance of indebtedness for
the purpose of financing costs associated with the acquisition on a long-term basis; and
WHEREAS the City of Redding reasonably expects that debt obligations will be issued, and that
certain of the proceeds, not to exceed $8,000,000 will be to reimburse the Reimbursement Expenditures;
and
WHEREAS Section 1.150-2 of the Treasury Regulations requires the City to declare its reasonable
official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing.
WHEREAS the City of Redding desires to provide supplemental energy and said associated
services; and
WHEREAS the City of Redding desires to purchase/sell approximately 15 MW of power at the
negotiated terms for a period of two years under the existing Shasta Lake/Redding Enabling Agreement
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that they
deem it in the best interests of the City's Electric Utility Customers that the Transmission Capacity
Acquisition Agreement be approved and the City Manager or his designee, in his discretion, be authorized
to sign the Agreement.
BE IT FURTHER RESOL YED the Supplemental Energy Sale and Scheduling Agreement be
approved and the Electric Utility Director, in his discretion, be authorized to sign the Agreement. The City,
in compliance with Section 1.150-2 of the Treasury Regulations, states its intention to reimburse the
Reimbursement Expenditures associated with the Project from proceeds obtained from a subsequent
issuance of long-term debt obligations.
BE IT FURTHER RESOLVED the two year purchase/sale transactions be approved and the
Electric Utility Director, in his discretion, be authorized to sign the transactions.
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BE IT FURTHER RESOLVED this Resolution shall take effect from and after its adoption and
does not bind the City to incur any indebtedness.
I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular
meeting ofthe City Council on the2nd day of November 2004, by the following vote:
AYES:
NOES:
ABSENT:
ABST AIN:
Attest:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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Cibula, Kight, Mathena, Stegall, and Pohlmeyer
None
None
None
, Mayor
Form Approved:
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, Interim City Attorney