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HomeMy WebLinkAbout05-74 .r' . . . .. 5-7~ A RESOLUTION authorizing the execution of Amendatory Agreement No. 1 to Net Billing Agreement relating to Washington Public Power Supply System Nuclear Project NO. 1 with the United State of America, Depart- ment of the Interior, acting by and through the Benneville Power Administrator, and the Washington PliPlic Power S~pply System, and delivery of said agreement to those parties. The City of Port Angeles, Washington (hereinafter called the "City"), pursuant to an earlier resolution (hereinafte called the "Authorizing Resolution") of its Council, has entered into a contract with the United States of America, Department of, Interior, acting by and through the Bonneville Power Administrati (hereinafter called "Bonneville" )" and the washington Public Powe Supply System (hereinafter called the "System"), said contract being designated "WPPSS Nuclear Project NO. 1 Net Billing Agree- ment," an executed copy of which is on file with the City. Pursuant to the Net Billing Agreement the System is to construct and acquire the nuclear generating plant and associated facilities referred to in said Agreement as the "Washington Publi Power Supply System Nuclear Project No.1" (hereinafter called th "project"). As stated in the Authorizing Resolution there is on file with the City a draft of "Bond Resolution" dated November 21, 1972, to pe adopted by the System after approval by Bonnevill . I Under the ~erms of the Net Billing Agreement and said draft of the Bond Resolution the Project as described in Exhibit B to the Net Billing Agreement is to include the Existing Power Facilities as defined in the draft of Bond Resolution. Due to the delays in construction of, generating project and anticipated fuel short~ges, planned power resources under the Hydro Thermal Power Program are expected to be inadequate to meet the'needs of the Pacific Northwest in the late 1970's. If the / . . . Project were constructed with the inclusion of the Existing Power Facilities, as provided in the Net Billing Agreement and Bond Resolution, it would be required that the operation of the system' Hanford Project be shut down in 1977. Such a shutdown would cause a substantial, additional curtailment of energy available to the region, constituting a critical aggravation of an anticipated powe shortage. The Council finds that it is in the City's interest tha such curtailment be avoided and that any obstacle to continued operation of the System's Hanford p~oject during the period beyond 1977 be removed. Based upon the above, the City proposes to execute with the System and with Bonneville an amendment to the Net Billing Agreement designated Amendatory Agreement NO. I in the form and content as set forth in the draft thereon on file with the City dated February 28th, 1974, under which the description of the Project will be changed to enable the System to proceed with acquisition and construction of the project, as modified. The project, as so ,modified, will not include the Existing power Facilities. In accordance with the Amendatory Agreement, it is expected that the System will adopt a "Bond Resolution" at a late date, entitled: I I ' I, A RESOLUTION PROVIDING A PLAN AND SYSTEM FOR THE ACQUISITION AND CONSTRUCTION BY WASHINGTON PUBLIC POWER SUPPLY SYSTEM OF A UTILITY SYSTEM CONSISTING OF A NUCLEAR GENERATING PLATN AND ASSOCIATED FACIL~TIES TO BE KNOWN AS THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECT NO.1, AND PROVIDING FOR THE ISSUANCE, OF REVENUE BONDS FOR SAID PURPOSE. The draft of Bond Resolution dated November 21, 1972, previously referred to, has been revised in a draft dated Febru- ary 14,1974, to reflect the change of description of the projec and make other changes. A summary dated Fe~ruary 26, 1974, of -Two- /" . . the changes which were made from the draft of Bond Resolution dated November 21, 1972, is on file with the City. It is also expected that the System will adopt Bond Resolution(s) providing for the sale of short-term notes to finance preliminary costs of acquiring and constructing the Project, as modified, which Bond Resolution(s) will be consistent with the revised draft of Bond 'Resolution and the Net Billing Agreement, as amended by the Amendatory Agreement. The Council has reviewed the Amendatory Agreement and the summary relating to the Bond Resolution above referred to and now finds that entering into said Agreement with the System and Bonneville is in the best interest of the City and that perfor- mance of the Net Billing Agreement as so amended, among other things, will make additional amounts of power and energy avail- able from Bonneville at a lower cost than otherwise possible to meet the prospective power needs of the City to serve its resi- dents and customers in the future. THEREFORE, IT IS RESOLVED: Section 1: The Mayor and City Clerk of the City are hereby authorized and directed, on behalf of the City, to executE, with Bonnevile and the Was~ington Public Power Supply System the Amendatory Agreement above referred to, substantially as set out in the draft thereof on file with the City, dated February 28th, 1974, ana to ,deliver copies thereof the the other par~ies to the Agreement. Section 2: The City hereby ratifies and affirms the WPPAA Nuclear project NO. I Net Billing Agreement and its obliga tions thereunder. Section 3: All resolutions and parts o~ resolutions in conflict herewith are hereby repleasedto the extent of such conflict. -Three- "'.(\ . . PASSED by the City Council at a special meeting called for that purpose on Tuesday, April 23, 1974, for which notice was given as required by law. ", .~ ....",'c. , \.,..~ ~ ! '~ "-.. ~ ......6-.. _ -,. \. :- .. -"'. - - - ~. - '. Attest: ~ . ...4 .... ! ~ g ~ ~Rfi~:~ - C~ty Clerk Approved as to form: rvff ~~/ rJ' Cl. ty Attor: ey CITY OF PORT ANGELES By LL~~ Mayor -Four- ... . .