HomeMy WebLinkAboutAgenda Report - June 19, 1985 (87)APPROVAL OF PRaJEC.T
AGRFTi OF
' TRANSMISSION AGENCY
OF NOFaBEFN CALIFORNIA
TO SE0JRE F WING FOR
CERTAIN COSTS OF CALIFORNIA - ��•
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01WX1 TRANSMISSION PROJECT'
RESOLUTION NO. 85-68
City Manager Peterson presented for Council
approval Project Agreement of Transmission Agency
of Northern California to Secure Fbnding for ,
Certain Costs of California - Oregon Transmission
Pro-*ect, which provides for the issuance and sale
The Agreement provides that none of the TANC
members (which includes the City of Lodi) are
responsible for the repayment of this note.
The note, to be bought by Prudential-Bache,
will ultimately be repaid via a refinancing as
the project moves ahead. Assuming successful
financing of the project itself, the City will
ultimately share in the construction costs.,
The California - Oregon Transmission Project is a
proposed 300+ mile, 500 KV transmission line
between southern Oregon and central California.
Contractual arrangements will also provide for
the transmission of power between central and
southern California. The project will allow for
the transmission of 1,600 MW of power between
these two areas, an amount that could serve the
needs of approximately 1.6 million people. The
project presently includes nearly all of the
major electric utilities in California as
participants. Both publicly -owned and
investor --owned utilities are represented and
have worked out cc nplicated arrangements to share
the: project capability and to operate the project
on a coordinated basis withother transmission
lines.
Discussion followed with questions being .directed
to Staff.
On motion of Mayor Pro Tempore Reid, Olson
second, Council adopted Resolution No. 85-68
approving Project Agreement Transmission Agency
of Northern California to secure funding for
certain costs of California - Oregon Transmission
Project, and authorized the Mayor and City Clerk
to execute the subject document on behalf of the
City. The motion carried by the following vote:
AYES: Council Members - Olson, Reid, Snider,
and Hinchman (Mayor)
MES: Council Members - Pinkerton
ABSFM: Council Me-nbers - None
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COUNCIL COA' MUNICATiON
TO: THE CITY COUNCIL DATE NO.
FROM: THE CITY MANAGERS OFFICE June 13 , 1985
SUBJECT: TRANSMISSION AGENCY OF NORTHERN CALIFORNIA (TAMC) LOAN OF
$3.5 MILLION DOLLARS
RECMIMENDED ACTION: That the City Council approve the issuance
and sale by the Transmission Agency of
Northern California (TANG) of a promissory
note"in the amount of $3.5 million dollars
at 5.6% interest.
i BACKGROUND_ INFORMATION: Attached (Exhibit "A") is a copy of the
Agreement which provides for the issuance and sale by TANC of a
promissory note in the amount of $3.5 million dollars. The funds to
be realized via the sale of the note will be used to finance
studies, acquire options and permits and to cover other preliminary
costs to be incurred prior to the start of construction of
California -Oregon Transmission Project. Work on the project is
proceeding on schedule, with completion targeted for 1990.
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The Agreement provides that none of the TANC members (which includes
the City of Lod:) is responsible for the repayment of this note. In
l fact, the note itself will bear the following language:
....neither the payment of the principal or any part
thereof nor any interest thereon constitutes a debt, ,.
liability or obligation of any of the public agencies who
are parties to the agreement creating such entity."
The note to be bought by Prudential-Bache, will ultimately be repaid
via a refinancing as the project moves ahead. Assuming successful
financing of the project itself, the City wil' ultimately share in
the construction cost.
The California -Oregon Transmission Project is ,i proposed 300+ mile,
500 KV transmission line between southern Oregon and central
California. Contractural arrangements will also provide for the
transmission of power between central and southern California. The e.
sz
s project will allow for the transmission of 1,600 MW of power between
these two areas, an amount that could serve the needs of
approximately 1.6 million people. The project presently includes g
nearly all of the major electric utilities in California as
participants. Both publicly -owned and investor-owned utilities are
represented and have worked out complicated arrangements t,) share
the project capability and to operate the project on a coordinated
basis with other transmission lines. -
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Page No 2
The project participants are:
-` The Transmission Agency of Northern California, representing:
The City of Alameda
The City of Biggs
The City of Gridley
The City of Healdsburg
The City of Lodi
The City of Lompoc
The City of Palo Alto
The City of Redding
Thf City of Roseville
Tha City of Santa Clara
The City of Ukiah
The Modesto Irrigation District
The Turlock Irrigation District
The Sacramento Municipal Utility District
The Plumas-Sierra Rural Electric Cooperative
The Southern California. Cities of Anaheim, Azusa, Banning,
Colton, Riverside and Vernon
The Pacific Gas and Electric Company
The Southern California Edison Company
The San Diego Gas and Electric Company
The California Department of Water Resources
The Western Area Power Administration, U. S. Department of
Energy
The Los Angeles Department of Water and Power and the Cities of
Glendale, Burbank and Pasadena
(non-voting Members of the Project Management Committee)
Over 98 percent of California's electric customers are served
by these utilities.
The project will help to meet a number of needs for both public and
investor-owned utilities in California avid the Pacific Northwest.
It will provide for the following:
°seasonal exchanges of power
°more access to sales of power between the two regions
°improve the amount of power that can be reliably transmitted
between the regions
°expand the markets for power and diversify the power resources
of California and the Pacific Northwest
°more efficiently utilize the power resources of both regions
AM
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Page No. 3
600 MW "path" between the two regions for all of
It will. provide a 1, benefit the citizens of our
these purposes, and significantly
community. Existing rights-of-way and transmission lines are
proposed to be utilized for a majcr part of the project, thus
minimizing costs and environmental impacts.
The staff will be prepared to review this matter and answer any
questions Councilmembers may have.
. Exhibit "A"
PROJECT AGREEMENT
TRANSMISSION AGENCY OF NORTHERN CALIFORNIA
This Project Agreement ("Agreement") is dated as of
June 19, 1985 by and among the undersigned Members of
Transmission Agency of Northern California ("Agency"), a
California joint exercise of powers agency, and the Agency.
WITNESSETH:
WHEREAS, the Agency desires to issue a promissory note
(the "Promissory Note") in the form attached hereto as Exhibit A
pursuant to California Government Code Section 6547 for the
purpose of financing studies, the acquisition of options, permits
and other preliminary costs to be incurred prior to the
undertaking of construction or acquisition of a project for the
transmission of electric energy; and
WHEREAS, none of the undersigned members of the Agency
has contracted or is to contract to make payments to be applied
to the payment of said Promissory Note;
NOW THEREFORE, in consideration of the foregoing and the
covenants contained herein, the undersigned agree as follows:
1. Each of the undersigned Members of the Agency
hereby approves of the issuance and sale of the Promissory Note
in the form attached hereto as Exhibit A bearing such interest
rate or rates and at such price as the Commission of the Agency
shall authorize. Such approval is intended to be and is limited
to the approval required by Paragraphs 6 and 15 of the Joint
Powers Agreement creating the Agency attached hereto as Exhibit B
and such approval is not intended to be and shall not constitute
an authorization pursuant to Section 6547 of the California
Government Code.
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2. The Promissory Note shall not constitute a debt,
liability or obligation of any of the Members of the Agen^_y and
shall not constitute a deb* of the Agency payable by the Members
of the Agency pursuant to Paragraph 21 of the Joint Powers
Agreement attached hereto as Exhibit B.
3. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original and
all of which, when taken together, shall consitute a single
Agreement.
Transmission Agency of Northern
California
By
And
City of Alameda
City of Gridley
By
And
City of Healdsburg
By
And
Modesto Irrigation District
By
And
City of Palo Alto
By
And
City of Redding
By
And
City of Roseville
By
And
Sacramento Municipal Utility
District
By
And
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And
City of Uriah
By _
'%nd
Plumav-Sierra Rural -ro lectric
Cooperative, Inc.
By
And
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k) PMCRM OF TM CITY MANAGAR - RWJLAR CALENDAR
4) EstablisIment of Rate Non-nalization Rmd
NMYTICNS:
PXSOLUTIW NO. 85-69
IMICATED AMCN: Resolution
tSTJNCIL CCRZR'1UNICAT N
RECOMMENDED_ ACTION: That the City Council estaolish the Rate
Normalization Reserve in the Electric Utility
Fund.
BACKGROUND INFORMATION: The purpose of this reserve is to provide
Tunding---?or tWe 7Uity�s ultimate share of the costs of the Calaveras
County Water Project during the first four years of its operation.
The initial contribution to this reserve as a part of the 1985-86
Operating Budget is $500,000. It is listed on page 3 of the budget
document, the Electric Utility Fund Summary. It is recommended that
the City Council take action to establish this reserve at this
meeting. The reserve would be isolated from other funds and
utilized only for rate normalization within the Elec-L'ric Department.
Accrued interest would stay within this reserve. Other monies
previously received by the City to be placed in this reserve include
the recent refund to the City of its share of the Calaveras Project
Development Fund; the NCPA Development Fund repayment; and the
refund from PG&E of monies owed wholesale power purchasers resulting
from the sale of certain coal facilities and settlement of hydro
purchases.
The staff will be prepared to discuss this matter and answer any
questions Councilmembers may have.
Resp full bmitted,
Thomas A. Peterson
City Manager
TAP:jj
RESOLVED that the City Council of the City of Lodi, does hereby
approve "Project Agreement Transmission Agency of Northern California".
BE IT FURI= RESOLVED that the City Council of the City of Lodi,
does hereby authorize the Mayor and City Clerk to execute the suUject
document on behalf of the City.
Dated:- June 19, 1985
I hereby certify that Resolution No. 85-•68 was passed and
adopted by the City Council of the City of Lodi in a Regular
Meeting held June 19, 1985 by the following vote:
AYES: Council Menbers - Olson, Reid, Snider, and Hinchman
(Mayor)
NOES: Council Me nbers - Pinkerton
ABSENT: Council Members - None
ABSTAIN: Council Members - None
ALICE M. REIM=
CITY CLERK
A
RESOLVED that the City Council of the City of Lodi, does hereby
approve "Project Agreement Transmission Agency of Northern California".
BE IT FURI= RESOLVED that the City Council of the City of Lodi,
does hereby authorize the Mayor and City Clerk to execute the suUject
document on behalf of the City.
Dated:- June 19, 1985
I hereby certify that Resolution No. 85-•68 was passed and
adopted by the City Council of the City of Lodi in a Regular
Meeting held June 19, 1985 by the following vote:
AYES: Council Menbers - Olson, Reid, Snider, and Hinchman
(Mayor)
NOES: Council Me nbers - Pinkerton
ABSENT: Council Members - None
ABSTAIN: Council Members - None
ALICE M. REIM=
CITY CLERK
w
PROJECT AGREEMENT
TRANSMISSION AGENCY OF NORTHERN CALIFORNIA
This Project Agreement ("Agreement") is dated as of
June 19, 1985 by and among the undersigned Members of
Transmission Agency of Northern California ("Agency"), a
California joint exercise of powers agency, and the Agency. _
WITNESSETH:
WHEREAS, the Agency desires to issue a promissory note
(the "Promissory Note") in the form attached hereto as Exhibit A
pursuant to California Government Code Section 6547 for the
purpose of financing studies, the acquisition of options, permits
and other preliminary costs to be incurred prior to the
undertaking of construction or acquisition of a project for the
transmission of electric energy; and
WHEREAS, none of the undersigned members of the Agency
has contracted or is to contract to make payments to be applied
to the payment of said Promissory Note;
NOW THEREFORE, in consideration of the foregoing and the
covenants contained herein, the undersigned agree as follows:
1. . Each of the undersigned Members of the Agency
hereby approves of the issuance and sale of the Promissory Note
in the form attached hereto as Exhibit A bearing such interest
rate or rates and at such price as the Commission of the Agency
shall authorize. Such approval is intended to be and .is limited
to the approval required by Paragraphs 6 and 15 of the Joint
Powers Agreement creating the Agency attached hereto as Exhibit B
and such approval is not intended to be and shall not constitute
an authorization pursuant to Section 6547 of the California
Government Code.
S 77 7 77 77
is
2. The Promissory Note shall not constitute a debt,
s ..
liability or obligation of any of the Members of the Agency and
shall not constitute a debt of the Agency payable by the Members
of the Agency pursuant to Paragraph 21 of the Joint Powers _
Agreement attached hereto as Exhibit B. -
3. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original and
all of which, when taken together, shall consitute a single
Agreement.
Transmission Agency of Northern
California
By
And
City of Alameda
By
And
City of Biggs
By
And
City of Gridley
By "
And
City of Healdsburg
H.
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citym, 4V
City of Lompoc
B ...
And
Modesto Irrigation District
By
And
City of Palo Alto
By
And
City of Redding
By
And
City of Roseville
By
And
Sacramento Municipal Utility
District
By
And
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