HomeMy WebLinkAboutResolutions - No. 2005-265RESOLUTION NO. 2005-265
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER
OR HIS DESIGNEE TO EXECUTE A PROJECT DEVELOPMENT AGREEMENT AT
25 MEGAWATT LEVEL TO FUND DUE DILIGENCE ASSESSMENTS ASSOCIATED
WITH THE RESOURCE 500 GENERATION PROJECT
WHEREAS, the Central Valley Project Corporation (CVP Corp) is a non-profit
corporation, incorporated in 2003, primarily to support programs and projects that benefit CVP
customers and maximize the value of the Central Valley Project power contracts. The CVP
board currently consists of representatives from NCPA, SMUD, and the city of Redding; and
WHEREAS, CVP Corp is in final negotiations to purchase a 500 MW gas fired,
combined cycle power plant located in Northern California, which has been built with the latest
technology and was constructed only five years ago; and
WHEREAS, this plant has an excellent heat rate (approximately 7,000), which is the
primary measure of plant efficiency, and preliminary due diligence indicates that the expected
price of power from the plant will be very competitive with other options available in today's
energy market in California; and
WHEREAS, CVP Corp is offering to public power entities an opportunity to participate in
the ownership of the plant through firm purchase power agreements and has provided summary
materials to interested parties to determine if this project would be an appropriate addition to
their resource portfolios; and
WHEREAS, upon reviewing the materials and consideration of the current power needs
of Lodi Electric, staff has concluded that this proposed project fits well into its electric resource
portfolio, as this plant will provide diversity of location and its efficiency will provide the City of
Lodi with a resource that is more economic than building a substantially smaller plant locally or
contracting with for-profit marketers for a similar type product.
NOW, THEREFORE, BE 1T RESOLVED that the Lodi City Council does hereby authorize
the City Manager or his designee to execute a Project Development Agreement at 25 megawatt
level to fund due diligence assessments associated with the Resource 500 generation project in an
amount not to exceed $102,575.
Dated: December 21, 2005
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I hereby certify that Resolution No, 2005-265 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held December 21, 2005, by the following vote:
AYES: COUNCIL MEMBERS - Beckman, Hansen, Johnson, Mounce,
and Mayor Hitchcock
NOES: COUNCIL MEMBERS --- None
ABSENT: COUNCIL. MEMBERS --- None
ABSTAIN: COUNCIL MEMBERS - None
SUSAN J. BLACKSTON
City Clerk
2005-265