The URL can be used to link to this page

Home My WebLink About12-75 . . RESOLUTION NO. /..<. - 10 A RESOLUTION authorizing the execution and delivery of Option and Services Agreement with Washington Public Power Supply System relating, among other things, to Washington Public Power Supply System Nuclear Projects Nos. 4 and 5 and the Skagit Project. WHEREAS, the City of Port Angeles, Washington, (hereinafte called the "City"), is authorized by law to enter into contracts for the purchase of electric power and energy to meet the pro- spective power and energy needs of the City and its electric customers. WHEREAS, the United States of America, Department of the Interior, acting by and through the Bonneville Power Administrator (hereinafter called "Bonneville") and the electric cooperatives, utilities and other Pacific Northwest entities organized as the Joint Power Planning Council have developed the Hydro Thermal Powe Program in order to facilitate the coordination of existing and future thermal and hydro electric resources in the Pacific North- west. Pursuant to Phase 2 of the Hydro Thermal Power Program (the "Program") statutory preference customers of Bonneville will acquire generating capability from non-federal generating projects to meet the power requirements of such customers. Bonneville has indicated that, subject to any limitations imposed by law, it will furnish transmission, scheduling, load factoring, reserves, exchanges and other services available from the Federal Columbia River Power System to enable such customers to integrate their share of such generating capability with power and energy availabl to them from their electric systems, from Bonneville and other sources. . . WHEREAS, as part of said Program and at the request of the Public Power Council, the Washington Public Power Supply System (hereinafter called the "System") has performed preliminary work with respect to the investigation, planning, financing and con- struction of two nuclear electric generating facilities, one to be known as Washington Public Power Supply System Nuclear Project No. 4 for construction in conjunction with Washington Public Power Supply System Nuclear Project No.1, and the other to be known as Washington Public Power, Supply System Nuclear Project No.5 for construction in conjunction with Washington Public Power Supply System Nuclear Project No.3. In accordance with the Program and at the request of the Public Power Council the Supply System has also undertaken the investigation of participation in the puget Sound Power & Light Company's Skagit Project and studies and in- vestigations to identify feasible power plant sites, preferably in Western Washington or Oregon, in order to prepare for the con- struction of additional power generating facilities. WHEREAS, in order to further the development of the Projec1s in accordance with the Program, the City proposes to execute w~th the System an agreement designated "Washington Public Power Supply System Nuclear Projects Nos. 4 and 5 and Skagit Project Option and Services Agreement" in the form and content as set forth in the 'draft thereof on file with the City, dated March 21, 1975, under which the System grants to the City (called the "Option Partici- pant" in said agreement) an option to enter the Participants' AgreE- ment, a draft of which is attached to the Option and Services Agreement as Exhibit A, reserves for the City a specified share of the capability of said Projects and agrees to perform certain services, including, among other things, the arrangement of the - 2 - . . ownership, financing, acquisition and construction of said Projects. WHEREAS, the City, the other statutory customers of Bonneville, and other entities in the Pacific Northwest are negotiating several agreements relating to the Program; and the City Council finds that executing the Option and Services Agree- ment will enable the City to continue such negotiations in an orderly manner. WHEREAS, in accordance with the Option and Services Agree- ment, the System proposes to adopt a "Development Bond Resolution" at a later date which resolution provides, among other things, for the issuance of bonds in series or otherwise, and is entitled: A RESOLUTION PROVIDING A PLAN AND SYSTEM FOR THE ACQUISITION AND CONSTRUCTION BY WASHINGTON PUBLIC POWER SUPPLY SYSTEM OF TWO NUCLEAR GENERATING PLANTS TO BE KNOWN AS WASHINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECT NO. 4 AND NUCLEAR PROJECT NO.5; AND PROVIDING FOR THE ISSUANCE OF ONE HUNDRED MILLION DOLLARS ($lOO,OOO,OOOl PRINCIPAL AMOUNT OF REVENUE BONDS TO PRO- VIDE FUNDS TO PAY A PART OF THE COST OF SUCH ACQUISITION AND CONSTRUCTION AND FOR OTHER CORPORATE PURPOSES OF WASHINGTON PUBLIC POWER SUPPLY SYSTEM A draft of such resolution dated March 26, 1975, is on file with the City. The System expects to adopt the Development Bond Resolution in June, 1975, which resolution will be substantially in the form of said draft of such resolution and consistent with the Option and Services Agreement. WHEREAS, the Option and Services Agreement entitles the City ultimately to enter into the Participants' Agreement. The City recognizes that substantial revisions may be made to Sections 15 and 16 relating to Participants' Committees and Project Con- sultant, respectively. The System proposes to adopt a "Bond - 3 - . . -~l Resolution" subsequent to the execution and delivery of the Participants' Agreement, which resolution will provide, among other things, for the issuance of the Bonds (as defined in the Participants' Agreement) in series. A draft of the first Bond Resolution will be submitted to the City prior to its entering into a Participants' Agreement. A summary of the first Bond Resolution, dated March 21, 1975, is on file with the City. WHEREAS, the City Council has reviewed the Option and Services Agreement, the Participants' Agreement and the Resolu- tion and summary above referred to and has considered the alter- native means of obtaining power and energy and the environmental, technical and economic factors and studies relevant to this Resolution and now finds that entering into the Option and Service Agreement with the System is in the best interests of the City, that performance of the Option and Services Agreement, among other things, is necessary and advisable in order for the City to meet its prospective needs for power and energy in a timely, environ- mentally and economically sound manner to assist in serving the prospective power and energy needs of its customers in the future. WHEREAS, pursuant to RCW 43.21C (the State Environmental Policy Act) the City Council, in its review of the" Option and Services Agreement hereafter authorized, has considered each of the following documents: a detailed statement (commonly called an Environment Impact Statement) prepared by the System relating to Nuclear Project No.5 (as well as to the System's Nuclear Project No.4 (as well as the System's Nuclear Project No.1, to be located at the same site). - 4 - . . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles, Washington that the Mayor and City Clerk are hereby authorized and directed, on behalf of the City, to execute with the Washington Power Supply System the Option and Services Agreement above referred to, substantially as set out in the draft thereof on file with the City, dated March 21, 1975, and to deliver copies thereof to the System. ADOPTED by the City Council of the City of Port Angeles this I~ day of April, 1975. /e:2J~_ ~ MAYOR ... ... ....,.,>- .......-. ATTEST:-' -". ............. ...~ "'....: ~:: - ~-/2' ;0- ~Cc/~ Marian. c. ~Parr~sh, City Clerk ".. -. " '" Ao,.r..... .............. ." ... -,,- ~. ". . A~O:;/ .-city Attorney <-if - 5 - -,.~~ -.,..a_ ...._..,___ _ ___.. " J; e ( .. c " '" RESOLUTION NO. /<, 7f A RESOLUTION authorizing the execution and delivery of Option and Services Agreement with Washington Public Power Supply System relating, among other things, to Washington Public Power Supply System Nuclear Projects Nos. 4 and 5 and the Skagit Project. WHEREAS, the City of Port Angeles, Washington, (hereinafte called the "City"), is authorized by law to enter into contracts . for the purchase of electric power and energy to meet the pro- spective power and energy needs of the City and its electric customers. WHEREAS, the United States of America, Department of the Interior, acting by and through the Bonneville Power Administrator (hereinafter called "Bonneville") and the electric cooperatives, utilities and other Pacific Northwest entities organized as the Joint Power Planning Council have developed the Hydro Thermal Powe Program in order to facilitate the coordination of existing and future thermal and hydro electric resources in the Pacific North- west. Pursuant to Phase 2 of the Hydro Thermal Power Program (the "Program") statutory preference customers of Bonneville will acquire generating capability from non-federal generating projects to meet the power requirementp of such customers. Bonneville has indicated that, subject to any limitations imposed by law, it will furnish transmission, scheduling, load factoring, reserves, exchanges and other services available from the Federal Columbia River Power System to enable such customers to integrate their share of such generating capability with power and energy available to them from their electric systems, from Bonneville and other sources. I' .,.,. I e ( e (........... . / WHEREAS, as part of said Program and at the request of the Public Power Council, the Washington Public Power Supply System (hereinafter called the "System") has performed preliminary work with respect to the investigation, planning, financing and con- struction of two nuclear electric generating facilities, one to be known as Washington Public Power Supply System Nuclear Project No. 4 for construction in conjunction with Washington Public Power Supply System Nuclear Project No.1, and the other to be known as Washington Public Power Supply System Nuclear Project No. 5 for construction in conjunction with Washington Public Power Supply System Nuclear Project No.3. In accordance with the Program and at the request of the Public Power Council the Supply System has also undertaken the investigation of participation in the puget Sound Power & Light Company's Skagit Project and studies and in- vestigations to identify feasible power plant sites, preferably in Western Washington or Oregon, in order to prepare for the con- struction of additional power generating facilities. WHEREAS, in order to further the development of the projec s in accordance with the Program, the City proposes to execute w~th the System an agreement designated "Washington Public Power Supply System Nuclear Projects Nos. 4 and 5 and Skagit Project Option and Services Agreement" in the form and content as set forth in the draft thereof on file with the City, dated March 21, 1975, under which the System grants to the City (called the "Option Partici- pant" in said agreement) an option to enter the Participants' Agre - ment, a draft of which is attached to the Option and Services Agreement as Exhibit A, reserves for the City a specified share of the capability of said Projects and agrees to perform certain services, including, among other things, the arrangement of the - 2 - (" e ( e C ------~ . . . ownership, financing, acquisition and construction of said Projects. WHEREAS, the City, the other statutory customers of Bonneville, and other entities in the Pacific Northwest are negotiating several agreements relating to the Program; and the City Council finds that executing the Option and Services Agree- ment will enable the City to continue such negotiations in an orderly manner. WHEREAS, in accordance with the Option and Services Agree- ment, the System proposes to adopt a "Development Bond Resolution" at a later date which resolution provides, among other things, for the issuance of bonds in series or otherwise, and is entitled: A RESOLUTION PROVIDING A PLAN AND SYSTEM FOR THE ACQUISITION AND CONSTRUCTION BY WASHINGTON PUBLIC POWER SUPPLY SYSTEM OF TWO NUCLEAR GENERATING PLANTS TO BE KNOWN AS WASHINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECT NO. 4 AND NUCLEAR PROJECT NO.5; AND PROVIDING FOR THE ISSUANCE OF ONE HUNDRED MILLION DOLLARS ($lOO,OOO,OOO) PRINCIPAL AMOUNT OF REVENUE BONDS TO PRO- VIDE FUNDS TO PAY A PART OF THE COST OF SUCH ACQUISITION AND CONSTRUCTION AND FOR OTHER CORPORATE PURPOSES OF WASHINGTON PUBLIC POWER SUPPLY SYSTEM A draft of such resolution dated March 26, 1975, is on file with the City. The System expects to adopt the Development Bond Resolution in June, 1975, which resolution will be substantially in the form of said draft of such resolution and consistent with the Option and Services Agreement. WHEREAS, the Option and Services Agreement entitles the City ultimately to enter into the Participants' Agreement. The City recognizes that substantial revisions may be made to Sections 15 and 16 relating to Participants' Committees and Project Con- sultant, respectively. The System proposes to adopt a "Bond - 3 - -~_. f" e e C I:..... Resolution" subsequent to the execution and delivery of the Participants' Agreement, which resolution will provide, among other things, for the issuance of the Bonds (as defined in the participants' Agreement) in series" A draft of the first Bond Resolu~ion will be submitted to the City prior to its entering into a Participants' Agreement. A summary of the first Bond Resolution, dated March 21, 1975, is on file with the City. WHEREAS, the City Council has reviewed the Option and Services Agreement, the Participants' Agreement and the Resolu- tion and summary above referred to and has considered the alter- native means of obtaining power and energy and the environmental, technical and economic factors and studies relevant to this Resolution and now finds that entering into the Option and Service Agreement with the System is in the best interests of the City, that performance of the Option and Services Agreement, among other things, is necessary and advisable in orqer for the City to meet its prospective needs for power and energy in a timely, environ- mentally and economically sound manner to assist in serving the prospective power and energy needs of its customers in the future. WHEREAS, pursuant to RCW 43.2lC (the State Environmental policy Act) the City Council, in its review of the Option and Services Agreement hereafter authorized, has considered each of the following documents: a detailed statement (commonly called an Environment Impact Statement) prepared by the System relating to Nuclear Project No.5 (as well as to the System's Nuclear Project No.4 (as well as the System's Nuclear Project No.1, to be located at the same site). - 4 - r ," " . ( . c l 1- NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles, Washington that the Mayor and City Clerk are hereby authorized and directed, on behalf of the City, to execute with the Washington Power Supply System the Option and Servic~s Agreement above referred to, substantially as set out in the draft thereof on file with the City, dated March 21, 1975, and to deliver copies thereof to the System. ADOPTED by the City Council of the City of Port Angeles this /~ day of April, 1975. /c:2lut-<< &____ ~--un-.- MAY 0 R ATTEST: ~/(f;e.<1~~~ (! ./Zltl!d Marian C. Parrish, City Clerk Approved as t~ ~orm: p /' dj ,,,--71 --tv? ~ '~t7 1 .--ci ty Attorney ( - 5 -