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HomeMy WebLinkAboutReso 2004-198 - Redding Power Plant -" It - 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. ~ ...{::. \ --- ~ Do ~. , ""- e - 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 -.... ) , Attest: 'j ',.,.. . ," I,. Form Approved: r , 'r Interim City Attorney ~ ;., (o~;" ~. '- . ~,