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Home My WebLink AboutAgenda Report - June 17, 1998 (67)CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Letter of Recision to Letter Recalling City of Lodi Allotment of Power from the Western Area Power Administration MEETING DATE: June 17, 1998 SUBMITTED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council authorize the City Manager to execute a Letter of Recision to letter recalling City of Lodi Allotment of Power from the Western Area Power Administration (Western). BACKGROUND: The City of Lodi and other customers of the Western temporarily released varying portions of their individual Western power allotments for transfer to Bay Area Rapid Transit. This mutually beneficial arrangement was done at a time when replacement power for the City of Lodi could be obtained at less than Western's cost. In anticipation of increased summer 1998 electric energy prices, the City exercised its 6 -month recall option last January (letter attached). Subsequently, a very good hydro year and an opportunity to purchase additional capacity and associated energy from Western has eliminated the need to recall the City's previously released allotment of Western power. In consideration of the above, the Electric Utility Department recommends that the attached proposed letter of recision be sent to Western. FUNDING: Not applicable Prepared by: Jack Stone, Manager, Business Planning and Marketing ANV/JS/lst c: City Attorney Approved JS.wpd City Manager Alan N. Vallow Electric Utility Director CITY COUNCIL JACK A. SIEGLOCK, Mayor KEITH LAND Mayor Pro Tempore ROBERT J. JOHNSON STEPHEN J. MANN PHILLIP A. PENNINO CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. Box 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 FAX (209) 333-6807 June 17, 1998 Mr. Jerry Toenyes Regional Manager Sierra Nevada Region Western Area Power Administration 114 Parkshore Drive Folsom, CA 95630 RE: City of Lodi Recall Notification letter dated January 27, 1998 Dear Mr. Toenyes: The City of Lodi hereby rescinds the above referenced letter as of this date. H. DIXON FLYNN City Manager RANDALL A. HAYS City Attorney ALICE M. REIMCHE City Clerk Thanks to the efforts of Western to make available excess capacity and energy, including power from delaying a portion of the work on Shasta, Lodi is assured of sufficient, economically priced energy for the summer season. We again appreciate your consideration of this matter. If you have any questions regarding this letter of recision, please contact Jack Stone at (209) 333-6748. Sincerely, H. Dixon Flynn City Manager HDF/ANVAst CITY COUNCIL CITY OF LODI H. DIXON FLYNN City Manager JACK A. SIEGLOCK, Mayor KEITH LAND RANDALL A. HAYS Mayor Pro Tempore ELECTRIC UTILITY DEPARTNENT City Attorney STEPHEN J. MANN A.`.AN N. VALLOW, DIRECTOR PHILLIP A. PENNING 1331 S HAM LANE ALICE M. RELMCHE Clerk DAVID P. WARNERCity LODI, CALIFORNIA 95242-3995 (209) 333-6762 FAX (209) 339-0851 January 27, 1998 Zola Jackson, Acting Manager Sierra Nevada Region Western Area Power Administration 114 Parkshore Drive Folsom, CA 95630 Dear Ms. Jackson: As you know, Lodi temporarily amended its Western contract rate of delivery (CRD) in 1996 from 13.236 MW to 6.636 MW. The agreement to implement this reduction in our CRD requires that we provide Western with a six-month notification of our intent to increase our CRD. This Letter is to notify Western that we wish to increase our CRD from the current level of 6.636 MW to 13.236 MW beginning on August 1, 1998. We appreciate your consideration of this matter. If you have any questions regarding our recall notification, please contact Jack Stone at (209) 333-6748. Sincerely, 6� � e xon Flynn City Manager HDF/ANV/Ist c: Manager, Business Planning & Marketing File HALTSER\. DMCR1998\ConvuMWntmtCRD.wpd RESOLUTION NO. 98-100 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A LETTER OF RECISION, RESCINDING THE LETTER ADDRESSED TO THE WESTERN AREA POWER ADMINISTRATION (WAPA) DATED JANUARY 27, 1998 BE IT RESOLVED, that the Lodi City Council hereby authorizes the City Manager to execute a Letter of Recision (Exhibit A), rescinding the letter addressed to the Western Area Power Administration (WAPA) dated January 27, 1998 (Exhibit B). Dated: June 17, 1998 I hereby certify that Resolution No. 98-100 was passed and adopted by the Lodi City Council in a regular meeting held June 17, 1998 by the following vote: AYES: COUNCIL MEMBERS - Land, Mann, Pennino and Sieglock (Mayor) NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - Johnson ABSTAIN: COUNCIL MEMBERS - None & �'- &VtL) ALICE M. REWCHE City Clerk CITY COUNCIL JACK A. SIEGLOCK, Mayor KEITH LAND Mayor Pro Tempore ROBERT J. JOHNSON STEPHEN J. MANN PHILLIP A. PENNING CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. Box 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 FAX (209) 333-6807 June 17, 1998 Mr. Jerry Toenyes Regional Manager Sierra Nevada Region Western Area Power Administration 114 Parkshore Drive Folsom, CA 95630 RE: City of Lodi Recall Notification letter dated January 27, 1998 Dear Mr. Toenyes: H. DIXON FLYNN City Manager RANDALL A. HAYS City Attorney ALICE M. REIMCHE. City Clerk EXHIBIT A The City of Lodi hereby rescinds the above referenced letter as of this date. Thanks to the efforts of Western to make available excess capacity and energy, including power from delaying a portion of the work on Shasta, Lodi is assured of sufficient, economically priced energy for the summer season. r We again appreciate your consideration of this matter. If youhave any questions regarding this letter of recision, please contact Jack Stone at (209) 333-6748. Sincerely, H. Dixo Flyrin City Manager I.11911h3alflin C"rY COCNC.L JACK A. SIEGLOCK. Ntavor :<,EL-rif LA%4'0 Mayor Pro TtmEor_ =PFI -N 1. NLANN' .iLLIP A. ?ENNIN'O DAVID F. WARN'ER CITY OF LODI ELECTRIC UTILITY DEP.-RTLMENT ALAN N. VALLOW, DIRECTOR 133! S HANI. LANE LODI. CALIFORNIA 95242-3995 (209)333-6762 FAX (209) 339-0351 January 27, 1993 EXH 1 B 1-t: B Zola Jackson, Acting Manager Sierra Nevada Region = Western Area Power Administration 114 Parkshore Drive Folsom, CA 94-630 Dear Ms. Jackson: C:rf Ntara¢_— RA:vDALL A.: LAYS City A:.orev ALICE M. REINC: Ci:+ C: -9c As you know, Lodi temporarily amended its Western contract rate of delivery (CRO) in 1996 from 13.236 MW to 6.636 MW. The agreement to implement this reduction in our CRD requires that we provide Western with a six-month notification of our intent to increase our CRD. This Letter is to notify Western that we wish to increase our CRD from the current level of 5.636 MW to 13.2306 MW beginning on August 1, 1998. We appreciate your consideration of this matter. If you have any questions regarding our recall notification, please contact Jack Stcne at (209) 333-6748. Sincerely, H. Dixon Flynn City Manager HDFI„NVAst C: Manager, Eusiness Planning & Marketing pile 4'_5=t'.1C NfTNA 1 M "fid