HomeMy WebLinkAboutAgenda Report - August 18, 2004 E-10AGENDAITEME010
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt resolution authorizing the City Manager to enter into a Letter of Agreement
between the City of Lodi and Northern California Power Agency (NCPA) for
developing a wholesale electric delivery interconnection location at the White
Slough Water Pollution Control Facility not to exceed $70,000 (EUD)
MEETING DATE: August 18, 2004
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City
Manager to enter into a Letter of Agreement between the City of
Lodi and Northern California Power Agency (NCPA) for developing
a wholesale electric delivery interconnect location at the White Slough Water Pollution Control Facility
not to exceed $70,000.
BACKGROUND INFORMATION: Currently, the White Slough Water Pollution Control Facility
(WSWPCF) is undergoing various capital improvements. The
improvements will significantly increase the Plant's electrical load. The Plant is served by two electric
sources: one for normal operation and one for backup/emergency situations both of which are owned by
PG&E. The cost to increase capacity of the two sources plus the ongoing energy delivery, maintenance
and standby capacity charges is not cost effective when compared to other options.
This interconnection of Lodi's distribution system to NCPA's STIG will provide initially the required
electrical capacity to serve the Plant's electrical needs. The final electric source design will include two
utility sources this interconnection and the development of a primary utility distribution source. This
alternative compared to upgrading existing PG&E facilities is cost effective, provides better reliability and
increased capacity for future Plant loads and insures timely service restoration utilizing the City's Electric
Line Crews.
FUNDING: 161652.1825.1700 Electric Utilit System Improvement Fund
Funding Approval:
Ames R Krueger, FIDcVce
17
Afan�rVialldw
Electric Utility Director
PREPARED BY: Mel Grandi, Manager, Electric Systems
ANV/MGlmdw
cc: City Aftorney
APPROVED:
Janet _S/Keete� Interim City Manager
LETTER OF AGREEMENT FOR SERVICES BETWEEN
THE CITY OF LODI
AND
THE NORTHERN CALIFORNIA POWER AGENCY
The preamble of the Member Service Agreement states that, from time to
time, the Northern California Power Agency (NCPA) may provide services
relating to the supply of wholesale electric power and energy to one or more of
the Members upon their request. This Letter of Agreement (LOA) between a
member of NCPA, the City of Lodi ("Lodi"), and NCPA acknowledges such a
request for service.
NCPA agrees to provide assistance to Lodi as detailed in Appendix A
attached hereto. NCPA warrants that all work will be completed in a timely
manner and on a best effort basis. NCPA and Lodi agree that Lodi may
terminate this Agreement prior to completion of the tasks described in Appendix
A, at any time, upon five days written notice to NCPA. Lodi agrees to allow
access to those records that NCPA deems necessary for successful completion
of all tasks. When the tasks specified in Appendix A are completed, NCPA and
Lodi will jointly review and approve the results upon which NCPA will be released
from further responsibility to perform the task. NCPA and Lodi mutually agree
that Lodi shall assume any and all responsibility for costs or penalties that may
arise from Lodi's use of the work, or any part of the work done by NCPA for Lodi
pursuant to the terms of this Letter Agreement, and Lodi shall hold NCPA, its
officers, employees, agents and assigns harmless from the consequences of
such use.
NCPA agrees to provide a monthly invoice for services provided under this LOA,
and Lodi agrees to pay each invoice from NCPA within fifteen (15) days of the
due date. Payments not made within 30 days following the bill date shall bear
interest at the prime rate of the Bank of America, NT & SA then in effect, plus two
percent per annurn until paid. The total compensation for the costs incurred and
the services to be performed under this LOA shall not exceed $70,000 without
the further written agreement of the parties. Compensation for services
performed by NCPA staff under this LOA shall be billed in accordance with
Appendix B, also attached hereto. Compensation for services performed by third
party entities shall be passed through to Lodi as billed to NCPA.
IN WITNESS HEREOF, the parties hereto have entered into this Letter of
Agreement dated August _, 2004.
NCPA
0
Title:
CITY OF LODI
0
Janet S. Keeter
Interim City Manager
ATTEST:
Susan Blackston, City Clerk
APPROVED AS TO FORM:
D. Stephen Schwabauer
City Attorney
APPENDIX A
CITY OF LODI - NCPA STIG (CT2 Project)
INTERCONNECTION STUDY
A Letter of Agreement (LOA) between NCPA and The City of Lodi ("Lodi")
has been established to provide services from NCPA to Lodi regarding an
assessment of the requirements for Lodi to interconnect its electric distribution
system to receive wholesale electric energy from the NCPA STIG electrical
system. These services include the following:
(1) Obtain Power Engineers Inc, to perform professional engineering analysis
and scope of work detailing the interconnection facilities required to serve
Lodi's wastewater treatment plant from the current electrical system
associated with NCPA's STIG generation facility in Lodi.
(2) Obtain necessary and appropriate legal counsel regarding the regulatory
and contractual requirements/issues associated with interconnecting Lodi's
electric distribution system to the STIG generation facility's electrical system.
(3) Initiate a competitive bidding process on behalf of Lodi for any
interconnection work that NCPA or Lodi will not perform with their own
forces.
(4) Prepare the necessary interconnection agreement between Lodi and NCPA,
and obtain all necessary approvals and endorsements from the owners of
the STIG (or their authorized representatives).
(5) Purchase equipment and supplies necessary to establish the
interconnection.
(6) Provide other consulting services related to this matter as requested and
directed by Lodi.
V.11 9 9 011,04 113 k,4
CITY OF LODI WASTEWATER TREATMENT PLANT
INTERCONNECTION STUDY
COMPENSATION RATES FOR NCPA STAFF*
AGMs
Managers
Coordinators — Supervisors
Resource Planners & Resource Schedulers
Engineers
Technicians
Administrative Assistants
Student Assistants
* Staff rates are the sum of direct and indirect costs as per NCPA budget
$135-150
120-140
90-120
95-100
50-100
50-75
40-50
20-25
RESOLUTION NO. 2004-167'
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO ENTER INTO A LETTER OF AGREEMENT
BETWEEN THE CITY OF LODI AND NORTHERN CALIFORNIA POWER
AGENCY (NCPA) FOR DEVELOPING A WHOLESALE ELECTRIC
DELIVERY INTERCONNECT LOCATION AT THE WHITE SLOUGH
WATER POLLUTION CONTROL FACILITY
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
authorizes the City Manager to enter I into a Letter of Agreement between the City of Lodi
and Northern California Power Agency (NCPA) for developing a wholesale electric
delivery interconhection location at the White Slough Water Pollution Control Facility, in
an amount not to exceed $70,000.
13E IT FURTHER RLSOLVED that the City Manager is hereby authorized to
execute said agreement on behalf of the City of Lodi.
Dated: August 18, 2004
I hereby certify that Resolution No. 2004-167 was passed and adopted by the
Lodi City Council in a regular meeting hold August 18, 2004, by the folloWng vote:
AYES: COUNCIL MEMBERS — Beckman, Hitchcock, Howard, Land, and
Mayor Hansen
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: ' COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2004-167