HomeMy Public PortalAbout053-2007 - Authorizing Power Sales - IMPA - RP&LCITY ORDINANCE NO. 53-2007
An Ordinance of the City of Richmond, authorizing the
execution and delivery of the Second Amendatory
Agreement to the Power Sales Contract between Indiana
Municipal Power Agency and the City of Richmond, and
other matters connected therewith.
WHEREAS, the City of Richmond (the "Member") is a municipality owning and
operating on January 1, 1980, an electric utility which furnished electric service to the
public and purchased electric power from public utilities; and
WHEREAS, the Member is required by law to provide its customers with an
adequate, reliable and economic supply of electric power and energy, but has determined
that individually it is not financially capable of providing the planning, financing,
locating and building of needed new facilities for generation and transmission to satisfy
future requirements of its customers; and
WHEREAS, based upon its obligations to serve its customers, and the above
considerations, the Member determined that it was in its best interest to join with other
municipalities in the State of Indiana as a member of the Indiana Municipal Power
Agency (the "Agency") for the purpose of undertaking the planning, financing,
ownership and operation of a project or projects to supply electric power and energy for
its needs; and
WHEREAS, the Agency and the Member entered into, and have carried out their
respective obligations under, the Contract Creating the Agency and Power Sales
Contract, as heretofore amended and supplemented (collectively, the "Original
Contracts"), each between the Member and the Agency, attached hereto and made a part
hereof, and
WHEREAS, under the Power Sales Contract the Agency agreed to sell and
deliver to the Member, and the Member agreed to purchase and receive from the Agency,
all electric power and energy which the Member required for the operation of its
municipal electric system for a term expiring April 1, 2032; and
WHEREAS, the Agency is acquiring ownership of new power supply resources
that will require the issuance of debt with a long-term (at least 30 years) amortization of
debt service and associated costs to provide the most economic and reliable power supply
to the Member and other members of the Agency; and
WHEREAS, it is in the best interests of the Agency and the Member to enter into
the Second Amendatory Agreement to the Power Sales Contract between the Agency and
the Member (the "Amendment"), to establish a term beginning July 16, 2007 through
April 1, 2042 to allow the Agency to issue new debt with a long-term amortization that
would extend beyond the current term of the Power Sales Contract; and
WHEREAS, the Original Contracts and the Amendment, marked as Exhibit A,
are attached hereto, incorporated herein by reference and two (2) copies of each are on
file in the office of the City Clerk for public inspection pursuant to IC 36-1-5-4; and
WHEREAS, Member desires to amend the Power Sales Contract to extend the
term in the manner described above.
WHEREAS, representatives of the Member have reviewed the Original Contracts
and the Amendment and have obtained independent advice and counsel with respect
thereto where appropriate and the Member has had the opportunity to review the Original
Contracts and the Amendment with the Agency; and
WHEREAS, based upon the foregoing facts, the Member by this Ordinance
hereby finds and determines to ratify the Original Contracts and approve the Amendment.
NOW THEREFORE BE IT ORDAINED BY THE COMMON COUNCIL OF
THE MEMBER:
Section 1. The findings and determinations set forth in the preambles to this
Ordinance are hereby made findings and determinations of the Member.
Section 2. By this Ordinance, the entry of the Member into the Original Contracts
and its performance of the terms and conditions thereof are hereby ratified and
confirmed. The Member is authorized pursuant to this Ordinance (a) to enter into the
Amendment in substantially the form attached hereto as Exhibit A, and (b) to be bound
by the terms and conditions of the Original Contracts as supplemented and amended by
the Amendment, as further supplemented from time to time, the By -Laws of the Agency
and such other lawful actions as may be heretofore have been taken by the Board of
Commissioners of the Agency.
Section 3. By this Ordinance, the Mayor of the City of Richmond is hereby
authorized and directed to execute and deliver, and the City Clerk is hereby authorized to
attest and seal, the Amendment.
Section 6. All ordinances and parts of ordinances in conflict herewith are hereby
repealed.
Section 7. This Ordinance shall be in full force and effect from and after its
passage.
PASSED AND ADOPTED by the Common Council of the City of Richmond,
Indiana, this 16th day of _July , 2007.
CITY OF RICHMOND, INDIANA
By_S/S Diana J. Pappin
President, Common Council
ATTEST:
_S/S Karen Chasteen
City Clerk
(SEAL)
Presented by me, the undersigned City Clerk of the City of Richmond, to the
Mayor of the City of Richmond for his/her approval on this 17th day of _July , at
•�
S/S Karen Chasteen
City Clerk
Approved by the undersigned Mayor of the City of Richmond, this _17th _ day of
_July , _2007
S/S Sarah L. Hutton
Mayor, City of Richmond