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HomeMy WebLinkAboutAgenda Report - September 1, 2004 E-09AGENDA ITEM Fwalot CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt a resolution authorizing the City Manager to execute Amendment 4 to Contract 96 -SNR -00110 between the Bureau of Reclamation and the United States of America Department of Energy Western Area Power Administration with the City of Lodi for the Funding of Power Operation and Maintenance for Central Valley Project Power Facilities (EUD) MEETING DATE: September 1, 2004 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City Manager to execute Amendment 4 to United States of America Department of Energy Western Area Power Administration (Western) Contract 96 -SNR -00110 with the City of Lodi for the Funding of Power Operation and Maintenance for Central Valley Project Power Facilities. BACKGROUND INFORMATION: As part of the annual City of Lodi Electric Utility Department's (EUD) renewal of Western Area Power Administration (Western) resources, Contract S6 -SNR -00110 for the Funding of Power Operation and Maintenance for Central Valley Project Power Facilities (EUD) provides for continuation of the Western resource. Amendment 4 modifies our current Western contract to reflect Western's new marketing plan. The new marketing pian (effective January 01, 2005) is resource based (based upon the actual available generator capacity from Western). The present marketing plan is based upon firm capacities (i.e., a guarantee fixed amount of capacity). Lodi's future Western energy allotment under the new marketing plan will be a percentage of actual generated capacity. FUNDING: None. Within Current Power Budget r �J Alan N. Vailow Electric Utility Director PREPARED BY: Mel Grandi, Manager, Electric Services ANV/MGAst cc: City Attorney APPROVED: JANItT S. KEETER, Interim City Manager MMERnww DO" Contract No. 96 -SNR -00110 Amendment No. 4 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND . UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS AMENDMENT NO.4 TO THE AGREEMENT FOR THE FUNDING OF OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES AWHWMATED COPY AUTHENTICATED COPY Contract No. 96 -SNR -00110 Amendment No. 4 UNITED STATES DEPARTMENT -OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS AMENDMENT NO.4 TO THE AGREEMENT FOR THE FUNDING OF OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES Table of Contents Section Page 1. PREAMBLE............................................................................... ...............1 2. EXPLANATORY'REUTALS............................................................................2 3. AGREEMENT...................................................... ,............................ ................ 2 4. TERM OF AMENDMENT .............................................. 5. MODIFICATION TO THE PRIMARY AGREEMENT .. ..................................... 2 6. PRIMARY AGREEMENT TO REMAIN IN EFFECT ........................................ 3 _ 7. EXECUTION IN COUNTERPART..................................................................3 SIGNATURE PAGES x AUTHENTICATED COPY I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AUTHENTICATED COPY Contract No. 96 -SNR -00110 Amendment No. 4 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS' AMENDMENT NO.4 TO THE AGREEMENT FOR THE FUNDING OF OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES 1. PREAMBLE: This Amendment to Contract No. 96 -SNR -00110 (Primary Agreement) is made this 14A day of , 2004, between the UNITED STATES OF AMERICA (United States), (1) acting by and through the Administrator, Western Area Power Administration, Department of Energy (Western), represented by the Regional Manager, Sierra Nevada Customer. Service Region, the officer executing this Agreement, or a duly appointed successor, and (ii) acting by and through the Commissioner, Bureau of Reclamation, Department of the Interior (Reclamation), 1 AUTHENTICATED COPY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AUTHENTICATED COPY Contract No. 96 -SNR -001 10 Amendment No. 4 represented by the Regional Director, Mid -Pacific Region; and the Central Valley Project (CVP) preference power customers signing this Amendment as set forth in Exhibit A of the Primary Agreement, all collectively called Parties. i 2: -EXP TORY- Ci—AA-LS,_ 2.1 The Parties entered into the Primary Agreement on November 12, 1997. 2.2 To accommodate Western's 2004 Power Marketing Plan, the Parties desire to modify the definition of a Small Customer in the Primary Agreement to incorporate a Base Resource percent allocation value. . . 3. AGREEMENT: The Parties agree to the terms and conditions set forth herein. 4. TERM OF AMENDMENT: This Amendment shall become effective upon execution by all Parties and shall. remain in effect concurrently with the Primary Agreement. 5. NlODIFI AC TION TO THE PRIMARY AGREEMENT: The following modification is made to the Primary Agreement: 5.1 Modification to Section 5.23: Section 5.23 is deleted in its entirety and the following language substituted theraf6w. . "5.23 Small Customer: A customer with a long -tern firm allocation of 20 Ifl /f/ megawatts or.less from Western and a maximum load of 40 megawatts or less through calendar year 2004, or a customer with a Base Resource percentage of 1.328% or less under the 2004 Power Marketing Plan and a maximum load of 40 megawatts -or less, beginning January 1, 2005, through the term of this Agreement." 2 AUTHENTICATED COPY 1 2 3 4 5 6 7 8 9 10 11 12 13 14. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AUTHENTICATED. COPY Contract No. 96 -SNR -00110 Amendment No 4 6. PRIMARY AGR99M9NT TO REMAIN IN EFFECT: Except as expressly modified by this Amendment, said Primary Agreement shall remain in full force and effect; and this Amendment shall be subject to all provisions of the -Primary Agreement, -except asherein -amended. 7. EXEQUJION IN COUN RP T: This Amendment may be executed In a number of counterparts and shall constitute a single docurrpent with the same force and effect as if each Party had signed all other counterparts. IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed the day and year first above written. The signatories hereto represent that they have. been appropriately authorized to enter -into this Amendment on behalf of the Party for whom they sign. Address: 2800 Cottage Way Sacramento—CA 95825 'Q AUTHENTICATED COPY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Contract No. 96 -SNR -00110 Amendment No. 4 IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed the day and year first above written. The signatories hereto represent that they have been appropriately authorized to enter into this Amendment on behalf of the Party for whom they sign. CITY OF LODI By: Title: t Address: Approved as to firm CIO Attoru�y 3 RESOLUTION NO. 2004-176 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING AMENDMENT 4 TO CONTRACT NO. 96 -SNR -00110 BETWEEN THE BUREAU OF RECLAMATION AND THE UNITED STATES OF AMERICA DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION WITH THE CITY OF LODI FOR THE FUNDING OF POWER OPERATION AND MAINTEANANCE FOR THE CENTRAL VALLEY PROJECT POWER FACILITIES, AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DOCUMENTS ON BEHALF OF THE CITY OF LODI BE IT RESOLVED that the City Council of the City of Lodi does hereby approve Amendment 4 to United States of America Department of Energy Western Area Power Administration Contract No. 96 -SNR -00110 with the City of Lodi for the funding of power operation and maintenance for the Central Valley Project Power Facilities; and BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute said documents on behalf of the City of Lodi. Dated: September 1, 2004 i hereby certify that Resolution No. 2004-176 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 1, 2004, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hitchcock, Howard, and Mayor Hansen NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Land ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2004-176