HomeMy WebLinkAboutAgenda Report - June 3, 1987 (78)_ COUNCIL COl1AIUNICATIGN
DATE NO.
To THE CITY COUNCIL 3une 3, 1987
FROM. THE CITY MANA:.GE 'S OFFICE -
SUBJECT: APPROVAL OF LETTER OF AGREEMENT ISOIOP�'YSTal NEARIVE LODZZS OF INTERCONNECTION AT
230 KV WITH WESTERN AP.EA '
RECOMMENDED ACTION: That the.Lodi City CounciloAgreemente(ExhibitdA}ezndution
(Exhibit B) and approve the attachedLetter of g
authorize the City Manager and City Clerk to execute the subject agreement on
behalf of the City.
iscussion of "Reliability" with City Coancil last
BACKGROUND INFORMATION: D
December included commF.,ts on the possibi:ity of an interconnection at 230
This interconnection. could assurethe
City adequate t Tnsm-1ajor
transmissionion capacity o
over 30 years,. assuming presentg approximately
circuits are accessible in the vicinity of 1-5 and Highway 12,
five miles west of Lodi.
ion, development of envirorofntheproject.
engineering
Preliminary to any such interconnect
and economic studies are required to determine the feasibility P ject
A basis to initiate these studies prior to
final
decision
iondto proceedons oftwith
the proposed interconnection is includednature.
Department of Energy Letter of Agreement attached for sig
Preliminary economic analysis of the 230-kv interconnection project by a
consulting engineering firm indicates savings of over a million dollars per
over the 3%`-yoar life of the project. A
year are achievable on the average
while a
best -case analysis showb benefits exightyears. The g cost in telements he first ofabenefit
worst case indicates break-even in eight y
generally consist of a combination of direct access high-voltage discount --4
reduced transmission wheeling rate.
The work to be performed under the Letter of Agreement may be terminated by
the City in ten (10) working days by issue and receipt of notice.
dealt first since th
Environmental consfderatately
ecocnomiclana
ions must be w
lysis
determine whether to proceed further or not. Even though the
proves favorable, any impediment in the enviroianental review would preclta review will begin, ude
proves
continuation of the project. ental aem ndseconomicdanalysis proves favorable.
all, when the project environm
The cost for scheduled studies through the second quarter 1988 is included in
the Electric Utility Department Budget for 1987-88.
Henry J. Rice
Electric Utility Director
Attach. (2)
RESOLUTION NO. 87-62
RESOLUTION APPROVING LETTER Or AGREEMENT
FOR COOPERATIVE ANALYSIS
OF INTERCONNECTION AT 230 KV WITH WESTERN AREA
TRANSMISSION SYSTEM NEAR LODI
RESO_VED, that the City Council of the City of Lodi does hereby
approve tLe Letter Of Agreement with the Western Area Power
Administration fc-r cooperative analysis of interconnection at 230 KV
with the Western Area Transmission System near Lodi, a copy of which is
attached hereto, marked Exhibit "A", and thereby made a part hereof.
BE IT FURTHER RESOLVED, that the City Council of the City of Lodi
does hereby authorize the City Manager and City Clerk to Pxec;:te the
subject agreement on behalf of the City.
Dated: June 3, 1987
I hereby certify that Resolution No. 87-62 was passed and adopted
by the City Council of the City of Lodi in a regular meeting held
June 3, 1987 by the following vote:
Ayes: Council Members = Hinchman, Pinkerton, Reid Snider,
and Olson (Mayor)
Noes: Council Members - None
Absent: Council Members - None
Abstain: Council Members - None
ALICE M. REI CHE
City Clerk
}
87-62
Department of Energy
Westert ,-.rea Power Administration
Sacramento .Area Office
1825 Bell Street. Suite 105
Sacramento. California 95825
In reply refer to.
Mr. Henry J. Rice
Electric Utility Director
City of Lodi
221 West Pine Street
Lodi, CA 95241-1910
Dear Mr. Rice:
141A Y 1 1987
ci'Jaky Dept.
n �t ?
PR �,
This letter sets forth the terms and conditions of an agreement between the
City of Lodi (Lodi) and the Western Area Power Administration (Western) which
provides the basis for Western and Lodi to proceed in the development of
environmental, real estate, and engineering studies, and a contractual
agreement which are prerequisite to any final decision to proceed with the
proposed interconnection of Lodi's system with Western's 230 -kV transmission
system near Lodi, California.
1. Wes'.--rn and Lodi agree to cooperate in analyzing and developing the
proposed interconnection to the Western 230 -kV transmission system near
Lodi, California; provided however, neither Western nor -Lodi shall be
obligated hereunder to make the actual interconnection.
2. This Letter of Agreement (LOA) shall not be construed to obligate Western
or Lodi to execute an agreement for the direct interconnection by Lodi.
3. As soon as practicable after the execution of this LOA, Western shall
initiate systems studies on the proposed project which will cumulate in a
Systems Studies Report. Lodi shall provide Western, in a timely manner,
with the project specific system data needed as input to the studies.
Western shall supply all other data as needed and shall complete the
System Studies Report, using Western's computer facilities, by the date
shown in Exhibit A attached to this LOA, or at such time as is mutually
agreeable.
4. As soon as practicable after the execution of this LOA, Lodi shall provide
Western with sufficient planning data and related information for the
direct interconnection to be included in a Facilities Development Report
(FDR). Lodi will prepare the draft FDR for Western's review. This report
shall be finalized by the date shown in Exhibit A, or as may otherwise be
mutually agreed.
5. As soon as practicable after the execution of this LOA, Western shall
proceed to prepare the necessary environmental documentation for National
Environmental Policy Act (NEPA) compliance. Western shall coordinate its
NEPA compliance work with Lodi's California Environmental Quality Act
compliance work. These studies shall be completed by the date shown in
Exhibit A, or at such time as mutually agreeable.
6. Lodi agrees to pay Western in advance all costs for work performed by
Western under this agreement, including Western's administrative
expenses. Western agrees to perform the following items in accordance
with the completion schedule shown in Exhibit A.
a. Review and finalize the FDR, which is prepared by Lodi.
b. Prepare &Rd complete the Systems Studies Report.
c. Complete the environmental clearance for the project which includes
preparation of a schedule and nlan for the work, procurement and
management of subcontracts, preparation of an environmental
assessment, public meetings and agency consultation, and coordination
with Lodi.
d. Review real estate requirements, including right-of-way and easement
studies.
e. Prepare and complete the Interconnection Agreement.
f. Participate jointly with Lodi to prepare and complete the Design Data
Report, including the aerial photography, plan and profile, access
roads, substation surveys, and the geology report.
7. The cost of the studies, between Western and Lodi, may be updated by
Western to correctly reflect the evaluation of work performed by
Western. In the event that any estimated cost is expected to be exceeded,
prior written approval shall bE obtained from Lodi before Western performs
any additional work.
8. Immediately following execution of this agreement, and by the first of the
seven succeeding quarters, and as necessary thereafter to cover approved
increases, Lodi shall advance to Western for deposit to a trust fund
a -count, the sum of the total quarterly cost provided in the attached
Exhibit A which will be applied to the costs of performing the tasks
outlined in Exhibit A. Western will provide a summary of expenses at the
end of each quarter pursuant to the schedule of activities.
9. If Western's accrued cost exceeds 80 percent of the the cumulative
advances by Lodi, then Western will immediately bill Lodi for the amount
deficient in that quarter and Lodi shall pay Western within ten (10) days
of the bill date. If costs incurred by Western are less than the
quarterly advanced payment, then the difference shall be adjusted.
10. Western shall provide Lodi with an itemized statement of costs and work
performed within sixty (60) days of the completion of the studies and
reports described in paragraphs above. Any funds advanced by Lodi for
this LOA in excess of the actual costs incurred by Western will be
returned to Lodi without interest, as soon as practicable after the work
outlined in this LOA is completed.
11. This LOA shall terminate on the date that an interconnection agreement is
executed by Western and Lodi, and all sums advanced and all costs accrued
under this LOA shall be transferred to and accounted for under the
interconnection agreement. If such an agreer.ent is not executed, then
this LOA shall terminate on the earlier of a final settlement or ten (10)
days after receipt by Western of a written notice by Lodi to stop work
provided that all obligations incurred by either party prior to the date
of termination shall be preserved unto( satisfied.
If the above stated terms and condition,, of the agreement are acceptable to
Lodi, please sign both originals of this LOA, with attestation to indicate
your acceptance and return to:
David G. Coleman
Area Manager
Sacramento Area Office
Western Area Power Administration
1825 Bell Street, Suite 105
Sacramento, CA 95825
WESTERN AREA POWER ADMINISTRATION
By:
Title: Area Mana4er
Address: 1825 Bell Street Suite 105
CITY OF rL7
By . t . � • —
ATTESTATION: Thomas a erson
Title:
s , . City Manager
By. - Address: 221 West Pine Street
Alice M. R&imche
Title: City Clerk Lodi, CA 95240__
bcc: NOOOO, N6000, N6100, N6116 (RF OF)
WESTERN AREA POWER ADMINISTRATION
CITY OF LODI
EXHIBIT A
WESTERN WORK SCHEDULE
1. This Exhibit A, made this jo� day of 1987. to be
effective upon execution of this Letter of Agreeme dated 0198Z.
This Exhibit A shall remain in effect until superseded by eother Exhibit A,
provided that,
2. Western will perform work required for these studies within the time
frames listed herein. This schedule may be modified by the mutual consent of
the parties.
DATES OF COMPLETION AND STUDY COSTS FOR 1987
Work to be Quarter 2 1987 Quarter 3 1987 Quarter 4 1987
Performed April - June July - Sept Oct - Dec
Facilities Development
Report
System Studies
Environmental Studies
Real Estate Review
Contract Preparation
Design Data Review
Total Quarterly
Cost for 1987
0 0 0
0 0 0
5,000 25,000 35,000
0 0 5,000
0 0 0
0 0 _ 0
UU 0 $ 25100_: $ 40,000
Page 2
Work to be
Performed
Facilities Development
Report
System Studies
Environmental Studies
Real Estate Review
Contract Preparation
Design Data Review
Total Quarterly
Cost for 1988
ATTESTATION:
WESTERN AREA POWER ADMINISTRATION
CITY OF LODI
DATES OF COMPLETION AND STUDY COSTS FOR 1988
Quarter 1 1988
Quarter 2 1988
Quarter 3 1988
Quarter 4 1988
Jan - Mar
April - June
July - Sept
Oct - Dec
-0-
5,000
-0-
-0-
-0-
5,000
5,000
-0-
28,000
5,000
-0-
-0-
-0-
-0-
-0-
-0-
-0-
2,000
-0-
-0-
-0-
10,000
20,000
20,000
$ 28_1000
$ 27,000
$ 25,000
$ 2010:10
By:
Alice ^4. Reimche
Title: _Ci±y ClPr><
WESTERN AREA POWER ADMINISTRATION
By:
Title: Area Manager
Address: 1825 Bell St., Suite 105
Sacramento, CA 95825
LODI
By:
Thomas A. Peterson
Title: ri t3Z anagpr -
City of Lodi
Address: rity Nal i
Call Box 3006
Tndi� ['al ifrvrnia 9524.1 - 1910