HomeMy WebLinkAboutReso 2007-125 - Redding Power Plant
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RESOLUTION NO. 2007 - 125
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDDING AUTHORIZING SOLICITATION OF BIDS
AND PRE-FINANCING ACTIVITY FOR CONSTRUCTION
OF UNIT #6 AT THE REDDING POWER PLANT AND
DECLARATION OF INTENT TO REIMBURSE CERTAIN
EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS
WHEREAS:
A. On May 16, 2006, the City Council authorized proceeding with discretionary entitlements and
environmental review for construction of a 45-MW Unit #6 at the Redding Power Plant (the
"Project");
B. . A Use Permit was granted by the City of Redding Board of Administrative Review on
February 1, 2007, and Redding Electric Utility received an Authority to Construct Permit from
the Shasta County Department of Resource Management on February 16, 2007.
C. The California Environmental Quality Act (CEQA) compliance process has been completed
for the project.
D. The City intends to build a twin unit to the exiting Unit #5 at the Redding Power Plant;
E. The City expects to pay certain expenditures (the "Reimbursement Expenditures") in
connection with the Project prior to the issuance of indebtedness for the purpose of financing
costs associated with the Project on a long-term basis;
F. The City reasonably expects that debt obligations in an amount not expected to exceed $62
million will be issued and that certain of the proceeds of such debt obligations will be used to
reimburse the Reimbursement Expenditures; and
G. 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;
THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
REDDING HEREBY AUTHORIZES THE CITY MANAGER AND/OR THE ELECTRIC
UTILITY DIRECTOR AND HIS STAFF TO COMPLETE THE FOLLOWING:
1. Proceed with the process to construct Unit #6 at the Redding Power Plant at a cost not
to exceed $62 million.
2.
Negotiate the following critical single vendor items:
- Turbine/Generator Power Island
- SCONOx Emission Control System
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3. Bid the following Public Works contracts:
- Civil/Structural
- Switchyard Modification
- Balance of Site Electrical
4. Bid the following contracts as necessary:
- Project Design/Construction Engineering
- REU Site Engineer
5. Bid the following purchase contracts:
- Main Power Transformer and Breakers
- Heat Recovery Steam Generator
- Balance of Plant Items
6. Negotiate and award Geotechnical Engineering contract (not to exceed $150,000).
7. Comprising a financing team consisting of:
- Public Financial Management as the Financial Advisor
- An Investment Banking Firm as selected by the City Manager
- Orrick, Herrington & Sutcliffe as Bond Counsel .
- City Finance Officer: Steve Strong
- Senior Accountant: Mark Haddad
- REU Financial Manager: Tom Graves
8. Initiate the long-term financing of the Unit #6 Project using 30-year, tax-exempt
instruments.
BE IT FURTHER RESOL VED THAT the City Council acknowledges the previous adoption
of the Negative Declaration by the Board of Administrative Review on February 1, 2007, in support
of Use Permit UP-26-93 and hereby determines that since that date there have been no changes in the
project or surrounding circumstances, nor any other new information, triggering the need to conduct
any additional environmental review in connection with approval of the above referenced activities.
Staff is authorized and directed to file a Notice of Determination consistent with this determination.
BE IT FURTHER RESOLVED THAT:
Section 1. The City Council firids and determines that the foregoing recitals are true
and correct.
Section 2. This Resolution establishes compliance with the requirements of
Section 1.150-2 of the Treasury Regulations.
Se'ction 3. The City hereby declares its official intent to use proceeds of indebtedness
to reimburse itself for Reimbursement Expenditures.
Section 4. This Resolution shall take effect from and after its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was introduced, read, and adopted at a
regular meeting of the City Council on the 19th day of June, 2007, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: '
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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Attest: :) ~,. I '; ,
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CONNIE STROHMf(" R, City Clerk
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Bosetti, Jones, Murray, Stegall, and Dickerson
None
None
None
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DICK DICKERSON, Mayor
Form Approved:
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RICHARD A. DUVERNA , City Attorney