HomeMy WebLinkAboutAgenda Report - May 20, 1998 (58)CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: City of Lodi Letter of Agreement (LOA) Western Area Power Administration (Western) to perform
engineering studies on City of Lodi Direct Interconnect Project (Project) ($70,000)
MEETING DATE: May 20, 1998
SUBMITTED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the City Manager to sign the attached LOA with
Western for $70,000.
BACKGROUND: The portion of the Project to be reviewed by Western consists of the 230kV
Interconnection to Western's Tracey -Hurley 230kV Line #1 from a new substation
to be constructed by the City at a location near the Northern California Power
Agency's Lodi 230kV substation. The new substation will be the point of origin for the new 60kV transmission line
to the City and will contain the 230/60kV transformers and associated equipment which comprise the
Interconnection.
As previously discussed with the Council and the public at various meetings, the Project is designed to provide a
reliable, alternate source of power supply for the City and to insure the City's ability to participate a deregulated
electric energy marketplace.
The LOA sets the terms and conditions under which Western will review and comment on Lodi's system studies
or perform studies that are additionally required for the direct interconnect of the Lodi system to Western electric
systems, provide technical support, design data, perform design review and provide preliminary land and
environmental compliance and planning support as may be appropriate.
The $70,000 total cost for the LOA scope of work must be advanced prior to Western's beginning work. The
estimated time to completion of the work in the LOA is four months.
FUNDING: Electric Utility Outlay 161: $70,000
Alan N. Vallow
Electric Utility Director
FUNDING APPROVAL:
Vicky McAthie, finance Director
Prepared by: J.L. Stone, Manager, Business Planning and Marketing
ANV/JLS/pn
c: City Attorney Finance Director Accounting Manager
Revenue Manager Manager, Rates & resources
Approved .----__-_--
�HDix Flynn
USERVI0MIM19981CouneiftCommunications105-20.9Bcc3JS City Manager
13 May 199
Mr. Alan N. Vallow
Electric Utility Director
City of Lodi
Electric Department
1331 South Ham Lane
Lodi, CA 95242
Dear Mr. Vallow:
Letter Agreement No. 98 -SNR -00045
City of Lodi Direct Interconnect Support
As discussed between members of our „spective staffs, he City of Lodi (City) is proposing a
direct interconnection with the Western Area Power Adrnirustration's (Western) 230-kv
transmission system. The proposed project will be referred to as the Lodi Direct Interconnecrion
Project (LDIP) and consists of a 230 -kV interconnection to Western's Hurley -Tracy 230 -kV No.
1 transmission line from a new City constructed 230 -kV substation near the Northern California
Power Agency's Lodi 230 -kV substation. Pnor to Western performing any LDIP work on behalf
of the City, an advancement of funds into a Trust Account will be required as described
hereunder.
This Letter of Agreement (LOA) sets the terms and conditions under which Western will review
and comment on the City's system studies, perform additional system studies and preliminary
design review, provide technical support, design data, and preliminary land and environmental
compliance and planning support as maybe appropriate.
It should be noted that the obligations and estimated costs included as part of this LOA are only
for preliminary project development work by Western and do not include the substantially
complete design review, commissioning, and other costs that the City would be obligated to fund
in advance under a separate direct interconnection agreement. Western and the City agree to
develop a LDIP direct interconnection agreement and other agreement(s) as may be appropriate.
The terms and conditions of this LOA are as follows:
1. At the sole expcmic of LodL Western shall provide labor and associated malc.�s aM#
1.1 Review and comment on the City's system studies or perform additional system studies
as they may relate to LDIP's impact on Western's system and neighboring utilities.
($7,000)
1.2 Participate in discussions with affected neighboring electric utilities as appropriate.
(53,000)
1.3 Gather and disseminate Feld data. ($10,000)
1.4 Provide technical support, data, and design review comments on the City's preliminary
LD1P design. ($40,000)
l.a Provide preliminary land acquisition and/or easement support as appropriate. (S5,000)
1.6 Provide preliminary e-rrvironmental compliance and planning support as appropriate.
(SS,000)
:.7 Upon completion of the work as provided herein, return to the City all unused Trust
Account funds without interest.
1.3 Make best efforts to complete the work as described in items 1.1 through 1.6 within four
4) months from the date he City advances the estimated funds into the Trust .account, or
four ;4) months from the date the necessary technical information and data from the City
I s provided to Western to perform the obligations described herein, or as may otherwise
be mutually agreed to between Western and the City.
The City, at its sole expense. shall?
2.1 Pay Western's actual costs incurred as a result of performing the work described
herein. The estimated cost for Western to perform the work described in items 1.1
through 1.6 is seventy thousand dollars ($70,000.00).
2.2 Uponsigning this Letter of .agreement, advance to Western the sum of seventy
thousand dollars ($70,000.00mi
), which is the estimated cost of performing the work
described herein. Such sum shall be applied to the total cost of Western performing
the work.
2.3 In the event the deposit of funds advanced by the City are not sufficient for Western
to complete the work described herein, within ten (10) days after receipt of a written
request notice from Western, advance such additional funds to Western which may be
required to complete the work described herein as mutually agreed to by both Parties.
Western shall not be obligated to perform any work described as part of this LOA
without sufficient funds in the Trust Account.
This Letter Agreement shall become effective on the date signed by Lodi, and shall remain in
effect for eighteen (18) months or until the work has been completed by Western and alI costs
have been paid to Western by Lodi, whichever occurs first.
Please reference Account No. NN -RA -01359 on your check and mail it, along with the stub from
the enclosed Bill for Collection, to:
Western Area Power administration
Department of Energy
File No. 51587
P.O. Box 60000
San Francisco, CA 94160-1587
If these provisions are satisfactory, please sign both copies of this Letter of Agreement and return
one copy to Ms. Peggy Muir. Western will proceed with the work upon deposit of the funds into
the Trust Account.
Enclose (Bill for Collection)
Date:
WESTERN:
APPROVED AS TO FORM:
Randall A. Mays, Gify Attorney
Sincerely,
Jerry W. Toenyes
Regional Manager
92
Date:
CITY OF LODI:
H. Dixon Flynn, City Manager
ATTEST:
Alice M. Reimche, City Clerk
RESOLUTION NO. 98-70
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE -
CITY MANAGER TO EXECUTE LETTER OF AGREEMENT WITH
WESTERN AREA POWER ADMINISTRATION (WAPA) TO
PERFORM ENGINEERING STUDIES ON CITY OF LODI DIRECT
INTERCONNECT PROJECT
BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager
to execute Letter of Agreement with Western Area Power Administration (WAPA) to
perform engineering studies on City of Lodi Direct Interconnect Project.
Dated: May 20, 1998
I hereby certify that Resolution No. 98-70 was passed and adopted by the Lodi
City Council in a regular meeting held May 20, 1998 by the following vote:
AYES: COUNCIL MEMBERS - Johnson, Land, Mann and Sieglock (Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - Pennino
ABSTAIN: COUNCIL MEMBERS - None
�E M. IMCHE
i y Clerk
98-70