Agenda 11/28/2006 - Laserfiche WebLink

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November 14, 2006 WHEREAS, a number of licenses for the construction and operation of several regional hydroelectric facilities at existing dams may be available to AMP-Ohio or its members via purchase, application to the FERC or other cooperative arrangements; and WHEREAS, AMP-Ohio desires to provide Municipality with the opportunity to participate in the development of new regional hydroelectric facilities, primarily located on the Ohio River, utilizing conventional as well as newer technologies, in order to provide the Municipality's electric utility consumers this reasonably priced, environmentally sound and reliable source of long term power; and WHEREAS, AMP-Ohio anticipates that no less than 30,000 kilowatts (kW), and potentially 250,000 kW of hydroelectric capacity may be available; and WIIEREAS, it IS necessary for the MuniCIpalIty to cnter 1!1to a contract (Agreemcnt) WIth A1\-11>- Ohio to. provide for preconstruction development funding to allow for analyzing the technical, permitting, and economic aspects of the potentia] new hydroelectric projects (herei"nafter the "Hydro Projects") and determine if the Municipality, in conjunctIOn with AMP-Ohio and other participating municipalities,' should proceed to construct, own and operate one or more new Hydro Proj ects; and WHEREAS) under the. tetms of the Agreement, AMP-Ohio will report the results of the developmental studies to the Municipality prior to the Municipality committing to proceed with construction of one or more Hydro Projects ifand only ifin the Municipality's sole discretion it detern1ines to.do so; and WHEREAS, Municipality desires to obtain, pursuant to the Agreement, rights to an amount of up to a nominal 4,300 kW of capacity of the Hydro Projects on the same terms and conditions as the other participating municipalities; and WHEREAS, it is necessary for the Municipality to commit itself to pay, pursuant to the Agreement, a pro rata share of the developmental costs of the Hydro Projects in proportion to the kW of capacity from the Hydro Projects that Municipality chooses to reserve to the total kW reserved by all participating municipalities, such commitment limited, however to a financial obligation of no more than $32.84 per k W reserved; and WHEREAS, Municipality had, pursuant to Resolution adopted May 9th, 2006 authorized execution of a similar development agreement, but which was limited to the Hydro Matrix technology and AMP-Ohio has determined that conventional as well as newer technologies such as Hydro Matrix, must be explored, now, therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MARTINSVILLE, III regular session assembled November 14,2006: SECTION 1: That the form of the Hydro Projects Developmental Cost Sharing Agreement [attached heret%n file with the Clerk] as Exhibit I is hereby approved, subject to and with any and all changes therein as hereinafter provided. SECTION 2: That the City Manager is hereby authorized to execute a Hydro Developmental Cost Sharing Agreement substantially in the form of Exhibit I for up to a nominal amount of 4,300 kW, with the cost to the Municipality capped at $32.84 per kW which cannot be exceeded without further action of this Council.