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HomeMy WebLinkAboutPR 17113: CONSENT AND JOINDER AGREEMENT WITH SABINE LIQUEFACTION, LLC P.R. NO. 17113 06/08/12 vrt RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A FORM AND CONSENT AGREEMENT AND JOINDER AGREEMENT BETWEEN THE CITY OF PORT ARTHUR AND SABINE PASS LIQUEFACTION, LLC WHEREAS, on December 13, 2011, the City Council authorized the City Manager to enter into a Water Service Agreement with Sabine Pass Liquefaction, LLC; and WHEREAS, on May 15, 2012, this agreement was amended to modify the terms of the agreement whereby Sabine Pass Liquefaction, LLC, will hire an engineering firm to prepare the proposed design, engineering plans, and detailed cost estimate; and WHEREAS, Sabine Pass Liquefaction has requested that the City enter into a form and consent agreement which will allow Sabine Pass Liquefaction, LLC, to grant a first priority security interest of its obligations under the aforementioned agreement to its financing party or Common Security Trustee; and WHEREAS, in the event of default by Sabine Pass Liquefaction, LLC, the City acknowledges the right of the Common Security Trustee to exercise and enforce all rights of Sabine Pass Liquefaction, LLC, under its agreement with the City of Port Arthur. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: s.pr17112 Section 1. The facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager to execute the Consent and Agreement and Joinder Agreement to Consent and Agreement, in substantially the same form as attached hereto as Exhibit "A ". Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of 2012 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary s.pr17112 APPROVED AS TO FORM: ` 41 �/, , _Ab Val Tizeno, City i ttorney APPROVED FOR ADMINISTRATION: John A. Comeaux, P.E., Acting City Manager s.pr17112 EXHIBIT "A" TO BE DISCUSSED IN EXECUTIVE SESSION AND PRESENTED AT THE COUNCIL MEETING s.pr17112