HomeMy WebLinkAboutResolutions - No. 2011-122RESOLUTION NO. 2011-122
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE
NORTHERN CALIFORNIA POWERAGENCY MARKET PURCHASE
PROGRAM AGREEMENT AND AUTHORIZING EXECUTION BY THE CITY
MANAGERWITH ADMINISTRATION BYTHE ELECTRIC UTILITY DIRECTOR
AND APPOINTING THE CITY MANAGER AND ELECTRIC UTILITY
DIRECTORAS THE DESIGNATED REPRESENTATIVE FOR LODI
-------------------------------------------------------------------
WHEREAS, Lodi, as a municipal electric utility, is a member of the Northern
California Power Agency (NCPA) and has the need to purchase electric energy or
capacity to meet its future electric power needs; and
WHEREAS, NCPA is willing to undertake the purchase of electric energy and
capacity for its members pursuant to its Market Purchase Program Agreement (MPPA)
up to a period of five years; and
WHEREAS, utilizing the MPPA, NCPA will enter into power purchase
agreements for the benefit of participating members, which agreements shall be in the
form of the Western Systems Power Pool Agreement (WSPP Agreement) or the Edison
Electric Institute Master Power Purchase and Sale Agreement (EEI Master Agreement),
with such modifications as have previously been approved by the NCPA Commission,
and which modifications have been reviewed and are concurred in by the City; and
WHEREAS, it is recognized that the market for electric energy or capacity may
not support the modifications to the WSPP Agreement or EEI MasterAgreement or may
only support such modifications with unacceptably high prices, or may require other
additional or contradictory modifications; and
WHEREAS, requests for proposal for the purchase of electric energy or capacity
must be responded to within a very short time frame; and
WHEREAS, the MPPA provides that, following the issuance of a request for
proposals for power or capacity, the execution of a Participant Purchase Confirmation by
the Designated Representatives of an NCPA member participating in the MPPA will be
deemed the subscription by that NCPA member to the purchase of power or capacity
upon the terms negotiated, whether or not such modifications have been made to the
WSPP Agreement or EEI Master Agreement; and
WHEREAS, maintenance of an adequate, cost effective supply of electric energy
or capacity is a matter of critical importance, directly affecting the public health, safety,
and welfare.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the NCPA Market Purchase Program Agreement, which is on file in the office of
the City Clerk, and is incorporated into this resolution by reference, and hereby
authorizes execution by the City Manager with administration by the Electric Utility
Director; and
BE IT FURTHER RESOLVED that the City Manager or the Electric Utility
Director is authorized to execute such amendments and supplements to the same as the
City's Manager or Electric Utility Director determines, with the attestation of the City
Attorney, to be necessary or appropriate from time -to -time hereafter to cure any
ambiguity or eliminate superfluous provisions or to correct or supplement any defective
provision of the same.
BE IT FURTHER RESOLVED that the City Manager and the City's Electric Utility
Director are hereby declared the "Designated Representatives" of the City pursuant to
the MPPA. Such Designated Representatives are hereby authorized to execute
Participant Purchase Confirmations for either or both electric energy and capacity and to
accede to or agree to amendments to either the WSPP Agreement or the EEI Master
Agreement with the attestation of the City Attorney, provided that such Participant
Purchase Confirmations are entered into in conformancewith the MPPA. The obligations
entered into by such officers on behalf of the City shall be valid and binding, and the City
agrees to pay for such obligations in accordance with the MPPA as fully and as if each
such Participant Purchase Confirmation and transaction were directly presented to and
individually approved by it.
Dated: August 3, 2011
-------------------------------------------------------------------
-------------------------------------------------------------------
hereby certify that Resolution No. 2011-122 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held August 3, 2011, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Nakanishi, and
Mayor Johnson
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
(W�OML
City Clerk
2011-122