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HomeMy WebLinkAboutResolution No. 93-C1190 6 RESOLUTION NO. 93-C119 A RESOLUTION OF THE CITY OF AZUSA APPROVING A DEPOSIT AGREEMENT WITH GES -KMS III FOR THE REIMBURSEMENT OF CERTAIN EXPENSES RELATED TO THE PROPOSED ELECTRICAL GENERATING PLANT WHEREAS, GES -136 III is a private entity which has requested that the City of Azusa consider a project to produce electricity by using methane gas from the Azusa Landfill; and WHEREAS, GES -KMS III has requested City participation in the financing of the facility through the use of tax exempt bonds and has also requested utilization of certain City of Azusa public facilities, and WHEREAS, the City of Azusa must incur certain expenses in reviewing the proposal to determine the feasibility and public purposes to be served, and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The City hereby approves the Deposit Agreement attached and incorporated herein as Exhibit A. Section 2. This Resolution shall take effect immediately upon its passage. Section 3. That the City, Clerk shall certify to the adoption of this resolution. ADOPTED AND APPROVED THIS 20th DAY OF Septembel993. ✓w I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 20th day of September .1993, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: «i i. r A40 k 'I Z-4 rewsww"Oftm DANGLEIS, MADRID, NARANJO, MOSES ALEXANDER NONE 0 0 DEPOSIT AGREEMENT This Agreement is entered into between the CITY OF AZUSA, ("City") a public agency authorized by statute, and GMS -KMS III, C'Applicant"), a California Partnership, on this 20th day of September, 1993. RECITALS (a) Applicant proposes to develop an electric generating project using methane gas delivered by the Azusa Land and Water Reclamation Company, located within the city limits of the City; (b) Applicant proposes to sell the produced electricity to the Los Angeles Department of Water and Power using the City's electric facilities as a delivery system; (c) Applicant has requested that the City assist in the project by providing the delivery system and by authorizing the issuance of tax exempt bonds to finance the construction of the generating plant; (d) To determine the feasibility of Applicant's project and to make the determinations of public benefit necessary to issue bonds, the City must incur costs for which it desires reimbursement from the Applicant; as follows: (e) In order to achieve this purpose, Applicant and City do hereby agree AGREEMENT (1) Deposit of Fee. Within ten days after City approval of this Agreement, Applicant shall deposit with City the sum of TEN THOUSAND DOLLARS ($10,000.00) to cover the cost of services described under Section 2 below. These funds shall be used for purposes directly related to the processing of Applicant's request for City participation in the provision of electrical facilities and the issuance of bonds. Applicant has previously deposited the sum of FIVE THOUSAND DOLLARS ($5,000.00) which shall be credited to the amount due under this Agreement. (2) City Expenditure of Deposited Funds. The City shall expend the deposited funds on all reasonable and necessary expenditures related to the processing of the Applicant's project. The services expected to be procured include, but are not limited, to the following. .,rftMS4We w 0 0 Deposit Agreement Page 2 a. City staff time and materials b. Electrical Engineering Consultants C. Financial Advisors d. Legal Counsel The City shall submit to Applicant a monthly accounting of the expenses incurred and the amount of deposit remaining. If, in the City's sole determination, the remaining funds on deposit are inadequate to complete the necessary services, the City shall request that the Applicant supplement the deposit in increments sufficient to complete the required services. Applicant shall have five days to supplement the deposit or the City may terminate this Agreement, pay any outstanding amounts due, and return the unused deposit to the Applicant. (3) Expenses Related to Issuance of Bonds. In the event that the Applicant requests and the City approves the issuance of bonds, all direct costs associated with said bond issue shall be the responsibility of the Applicant. These costs include but are not limited to the following: a. Bond Counsel b. Financial Advisor C. City Attorney d. Application, Administrative, or Issuance Fees e. Printing, Travel, and other incidental expenses of issuance (4) Retention of Consultants. The City shall remain solely responsible for the selection of all consultants necessary to determine the feasibility of Applicant's project. City and Applicant shall nonetheless cooperate and consult with each other prior to the retention of professional services. (5) Non-Refundability of Deposit All of the funds deposited by Applicant which are committed to payment of services required under this Agreement shall be non-refundable regardless of the project's outcome. If the Applicant withdraws the project before completion, or if funds remain on deposit after completion of the project and all expenses have been paid by City, then the City shall refund any unused funds to the Applicant.