Title
Authorizing an amendment of the Philadelphia Facilities Management Corporation Agreement to extend the repayment period for temporary financing that the City may provide the Philadelphia Gas Works under certain terms and conditions, and authorizing the extension of the repayment date of a $45 million temporary advance previously made by the City pursuant to such Agreement.
Body
WHEREAS, The Philadelphia Gas Works ("PGW") continues in the process of implementing a financial recovery program in order to benefit ratepayers and residents of The City of Philadelphia; and
WHEREAS, Pursuant to the Philadelphia Facilities Management Corporation Agreement and the terms of a Loan Agreement between PGW and The City of Philadelphia dated November 27, 2000, as amended, the City has advanced forty-five million dollars to PGW, which must be repaid in full within seventy-two months of the loan; and
WHEREAS, The advance repayment schedule represents a difficult challenge to PGW in light of PGW's current cash flow and operational requirements; and
WHEREAS, Given the fiscal concerns of PGW, the City wishes to amend the Philadelphia Facilities Management Corporation Agreement to authorize extension of the repayment period for temporary financing that the City may provide PGW to up to ninety-six months; and
WHEREAS, The City wishes to extend the repayment period for the forty-five million dollar temporary advance to a date no later than August 31, 2008 to enable PGW to accumulate sufficient revenues to continue its operations as well as repay the advance; NOW, THEREFORE
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. City Council hereby authorizes the amendment of that certain Agreement Between The City of Philadelphia and the Philadelphia Facilities Management Corporation for the Management and Operation of the Philadelphia Gas Works, originally dated December 29, 1972, authorized pursuant to an Ordinance of City Council, approv...
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