Loading...
HomeMy WebLinkAbout2017-11-27 18-029 ORDERTitle, Order CITY COUNCIL ACTION Council Meeting Date: 11/27/2017 Item No: 18-029 Responsible Dept: Legal Requested Action: Order 11/27/2017 18-029 Map/Lot: N/A Authorizing the City of Bangor to Exercise the Put Option Set Forth in the Sixth Amended and Restated Agreement of Limited Partnership of Penobscot energy Recovery Company, Limited Partnership Summary This Order authorizes the City Manager, on behalf of the City of Bangor, to execute and deliver such documents and to take such further actions as they may deem necessary or appropriate in order to exercise the Put Option and to assign the City of Bangor's limited partnership interests to PERC. The City of Bangor is an Equity Charter Municipality and a party to an agreement with Penobscot Energy Recovery Company (PERC) for disposal of its solid waste. In 2016, the City Council of the City of Bangor entered into an agreement with the Municipal Review Committee (MRC) to deliver solid waste to to the new Fiberight Facility in Hampden, Maine beginning April of 2018. Because of its agreement with MRC and as a result of a court settlement with Penobscot Energy Recovery Company(PERC), the City is to exercise a "Put Option" by December 15, 2017. The Sixth Amended and Restated Agreement of Limited Partnership of Penobscot Energy Recovery Company, Limited Partnership (the "PERC Partnership Agreement"), provides that as an Equity Charter Municipality the City of Bangor has the right to exercise the Put Option described therein whereby the City of Bangor requires that the Penobscot Energy Recovery Company, Limited Partnership ("PERC") repurchase the City of Bangor's limited partnership interest in PERC in exchange for a cash payment equal to the City of Bangor's proportionate share of One Million Five Hundred Thousand Dollars ($1,500,000), which represents the agreed upon aggregate value of all limited partnership interests held by the City of Bangor and other similarly situated municipal members of the Municipal Review Committee. The City's proportionate share is approximately 4.33% or $254,149. Staff recommends approval. Committee Action Committee: Council Workshop Meeting Date: 11/27/2017 Action: Recommend for passage For: Against: Staff Comments & Approvals This item will be discussed in Pre -Council on November 27, 2017. City Manager Introduced for: Consent City Solicitor Finance Director CITY OF BANGOR ORDER Date: 11/27/2017 Item No: 18-029 Assigned to Councilor: Perry 11/27/2017 18-029 Authorizing the City of Bangor to Exercise the Put Option Set Forth in the Sixth Amended and Restated Agreement of Limited Partnership of Penobscot energy Recovery Company, Limited Partnership WHEREAS, The City of Bangor is an Equity Charter Municipality and a party to an agreement with Penobscot Energy Recovery Company (PERC) for disposal of its solid waste; and WHEREAS, in 2016 the City Council of the City of Bangor decided not to renew its agreement PERC and to deliver its solid waste to Fiberight and entered in an agreement with the Municipal Review Committee (MRC); and WHEREAS, Pursuant to Section 9.3 the Sixth Amended and Restated Agreement of Limited Partnership of Penobscot Energy Recovery Company, Limited Partnership (the "PERC Partnership Agreement"), as an Equity Charter Municipality the City of Bangor has the right to exercise the Put Option described therein whereby the City of Bangor requires that the Penobscot Energy Recovery Company, Limited Partnership ("PERC") repurchase the City of Bangor's limited partnership interest in PERC in exchange for a cash payment equal to the City of Bangor's proportionate share of One Million Five Hundred Thousand Dollars ($1,500,000), which represents the agreed upon aggregate value of all limited partnership interests held by the City of Bangor and other similarly situated municipal members of the Municipal Review Committee; and WHEREAS, under thee terms of its agreement with MRC the City needs to exercise the Put Option by December 15, 2017. Now Therefore, Be it Ordered by the City Council of the City of Bangor that, Catherine M. Conlow, City Manager, is hereby authorized and directed, on behalf of the City of Bangor, to execute and deliver such documents and to take such further actions as they may deem necessary or appropriate in order to exercise the above-described Put Option and to assign the City of Bangor's limited partnership interests to PERC as contemplated thereby. IN CITY COUNCIL NOVEMBER 27, 2017 CO 18-029 PASSED CITY CLERK