HomeMy WebLinkAboutReso 2004-198 - Redding Power Plant
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RESOLUTION NO. 2004-198
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING
AND AUTHORIZING THE CI'rY MANAGER OR BIS DESIGNEE TO SIGN A CONTRACT
WITH THE VENDOR FOR TH]i: PURCHASE AND INSTALLATION, INLUDING LEVEL B
MAINTENANCE, OF A SPARE TURBINE MODULE FOR UNIT NO. 5 (THE
PROJECT), AND DECLARING COUNCIL'S REASONABLE EXPECTATION TO
REIMBURSE CERTAIN RELIATED COSTS THROUGH THE FUTURE ISSUANCE OF
INDEBTEDNESS
WHEREAS the City of Redding desires to purchase a new turbine
module with the associated installation and Level B maintenance for
Generating Unit No. 5 at the City of Redding Power Plant; and
WHEREAS the City of Redding expects to pay certain expenditures
(the "Reimbursement E:xpenditures") in connection with 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 $5,500,000 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;
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 contract be approved and that
the City Manager or his designee, in his discretion, be authorized
to sign a contract with Siemens to purchase a new turbine module
with the associated installation and Level B for Generating Unit
No. 5 at the City of Redding Power Plant at a cost not to exceed
$9.32 million plus a 10% contingency.
BE IT FURTHER RESOLVED the City, in compliance with Section
1.150-2 of the Trea.sury 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. ~
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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 of the City Council on the
7th day of December, 2004, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:Cibula,Dickerson,Kight,Murray,and Mathena
COUNCIL MEMBERS: None
COUNCIL MEMBBRS:None
COUNCIL MEMBERS: None
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Attest:
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Form Approved:
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Interim City Attorney
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