HomeMy WebLinkAboutResolutions - No. 2001-245RESOLUTION NO. 2001-245
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE EXHIBIT "B" OF THE MASTER
POWER PURCHASE AND SALE AGREEMENT BETWEEN THE
CITY OF LODI AND THE STATE OF CALIFORNIA
DEPARTMENT OF WATER RESOURCES
WHEREAS, for nearly five months, City staff and the State of California
Department of Water Resources (DWR) have been negotiating the terms and conditions
o the development of a peak power generating plant to be located with the City limits of
Lodi. DWR purchases power for two of the State's largest investor-owned utilities as a
result of the "meltdown" of California's power markets at the beginning of the year; and
WHEREAS, DWR has determined that the State would benefit from additional
peak generating capacity and City staff has determined that an appropriately designed
and located peaking facility would be advantageous to the reliability and energy security
of City of Lodi electric customers; and
WHEREAS, City staff is now seeking Council approval to proceed with the
development of a 43-45Mw peaking power generating facility with the Lodi City limits.
The basic parameters of the transaction is as follows:
• Lodi would develop the new peaking plant.
• Lodi would finance the plant through the issuance of bonds.
• Lodi would own and operate the plant.
• Lodi will retain the right to recall up to 22Mw of capacity commencing July 1,
2005.
• DWR would pay Lodi a fixed and variable monthly amount for the fifteen (15)
year term of the agreement.
• DWR would supply the fuel or pay Lodi to supply the fuel for the plants output.
• After the fifteen (15) year term of the agreement, the plant output would belong
to Lodi without further obligation to DWR; and
WHEREAS, City staff respectfully requests City Council authorization for the City
Manager to execute Exhibit B — Master Power Purchase and Sale Agreement
Confirmation Letter (2001 B Transaction — Peaking Capacity) between the City of Lodi
and DWR. Exhibit B is in substantially final form. It should be noted that Council's
authorization of Exhibit B is contingent upon an appropriate site being located within the
City limits of Lodi as contemplated under all appropriate provisions of the California
Environmental Quality Act. Additionally, Council's authorization is contingent upon the
City's ability to finance the project; and
WHEREAS, the Electric Utility Department respectfully requests City Council
authorization for the City Manager to execute Exhibit "B" of the Master Power Purchase
and Sale Agreement.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby
authorize the City Manager to execute Exhibit "B° of the Master Power Purchase and
Sale Agreement between the City of Lodi and the State of California Department of
Water Resources presented here in substantial final form.
Dated: October 30, 2001
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hereby certify that Resolution No. 2001-245 was passed and adopted by the
City Council of the City of Lodi in a special meeting held October 30, 2001 by the
following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard and Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Land
ABSTAIN: COUNCIL MEMBERS — Pennino
SUSAN J. BLACKSTON
City Clerk
2001-245