HomeMy WebLinkAboutResolutions - No. 2014-50RESOLUTION NO. 2014-50
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A LONG-TERM LAYOFF
AGREEMENT FOR THE CALIFORNIA OREGON
TRANSMISSION PROJECT BETWEEN THE CITY OF LODI
AND CERTAIN MEMBERS OF THE TRANSMISSION AGENCY
OF NORTHERN CALIFORNIA
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WHEREAS, the Transmission Agency of Northern California (TANC) is a
California Joint Powers Agency that has facilitated the construction and joint ownership
of transmission projects on behalf of its members; and
WHEREAS, TANC members include the Sacramento Municipal Utility District
(SMUD), Modesto Irrigation District (MID), Turlock Irrigation District (TID), Plumas Sierra
Rural Electric Cooperative, and the California cities of Alameda, Biggs, Gridley,
Healdsburg, Lodi, Lompoc, Redding, Roseville, Santa Clara, and Ukiah; and
WHEREAS, TANC is a joint owner of the California Oregon Transmission Project
(COTP), a transmission line connecting the Pacific Northwest with Central California;
and
WHEREAS, the City is a signatory to TANC Project Agreement Number 3
(1990), by which the City has a 1.9201 % project participation entitlement on the COTP
(approximately 26 megawatts); and
WHEREAS, recent historic and projected value of COTP to the City's electricity
portfolio is lower than participation costs; and
WHEREAS, City's current costs associated with COTP are approximately $1.2
million per year; and
WHEREAS, under TANC Project Agreement Number 3 and TANC's Procedures
for Long -Term Layoffs of Transmission Capacity, the City is able to assign its COTP
entitlements to other COTP participants; and
WHEREAS, SMUD, TID, and MID have agreed to accept the City's share of
COTP entitlements, via a layoff arrangement, for a period of 25 years, with an option to
extend 5 years upon mutual agreement; and
WHEREAS, this activity would not result in a direct or reasonable foreseeable
indirect change in the physical environment and is therefore not a "project" for purposes
of Section 21065 of the California Environmental Quality Act and no environmental
review is necessary; and
WHEREAS, the Risk Oversight Committee received a report on this agenda item
and recommends City Council approval.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Long -Term Layoff Agreement (Agreement) for
the California Oregon Transmission Project (COTP) between the City of Lodi and certain
members of the Transmission Agency of Northern California (TANC); and
BE IT FURTHER RESOLVED that authorization for any extension of term,
including the five-year extension option, shall be subject to future review and
authorization of the Lodi City Council.
Dated: April 2, 2014
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I hereby certify that Resolution No. 2014-50 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 2, 2014, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Mounce, Nakanishi,
and Mayor Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
LHL-OLLSON
City Clerk
2014-50