HomeMy WebLinkAboutRES 2001-11 - Board rF� Public Util Ity District
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Resolution No. 2001=11
Approving agreement with U. S. Bank National Association to issue
an irrevocable standby letter of credit to Idaho Power Company
WHEREAS,the District entered into a purchased power contract with Idaho Power Company on
July 1, 1997 to purchase firm capacity and energy for the Truckee community, and
WHEREAS, the District has adopted three subsequent amendments to the purchase power
contract which modify the terms of the original contract and extend the term of the contract,and
WHEREAS, due to the fact that amendment number three extends the current purchase power
agreement with Idaho Power Company until December 31,2009,and includes a substantial price
increase over the previous amendments, Idaho Power Company has required that the District
provide them with an irrevocable standby letter of credit to provide them with additional security in
the event of a default under the terms of the contract; and
WHEREAS, the District has arranged with U.S. Bank to provide such an irrevocable standby
letter of credit, and
WHEREAS, as a condition of providing the letter of credit, U.S. Bank requires that the District
enter into a reimbursement agreement and execute the following documents 1)Application and
Agreement for Standby Letter of Credit, 2) Standby Letter of Credit Term Sheet, 3)
Reimbursement Agreement for Standby Letter of Credit 4) Schedule 1 — Authorization
Reimbursement Agreement for Standby Letter of Credit and 5) Exhibit A— Promissory Note,
and
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follows:
1. The Board finds that the terms of said agreement are in the best interests of the
District for the issuance of an Irrevocable Standby Letter of Credit for the benefit of
Idaho Power Company.
2. The Board hereby directs its legal counsel to review the agreement and negotiate
appropriate modifications to said agreement with both U.S. Bank and Idaho Power
Company so as to assure compliance with state law and local statutory law, prior to
execution of the agreement by those persons so authorized by the District for such
purposes.
3. The Board designates and confirms the Board President to execute and deliver the
agreement and any related documents necessary for the consummation of the
.. transactions contemplated by the agreement.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the second day of May, 2001 by the following roll call vote:
AYES: Aguera, Hemig, Sutton, Van Gundy and Maass.
NOES: None.
ABSENT: None.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
a �sA. Maass, President
ATTEST
V
Peter L. Holzmeister, 15istrict Clerk