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HomeMy WebLinkAboutAgenda Report - May 17, 2000 E-12AGENDA TITLE: Exhibit C, Revision 3, Individual Customer Commitment and Contribution, to Contract 96 -SNR -00110, Agreement for the Funding of Operation and Maintenance for Central Valley Project Facilities and Amendment 2 to the Agreement ($115,668.77) MEETING DATE: May 17, 2000 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: That the City Council authorize the City Manager to execute Exhibit C, Revision 3, Individual Customer Commitment and Contribution, to Contract 96 -SNR -00110, Agreement for the Funding of Operation and Maintenance for Central Valley Project Facilities and Amendment 2 to the Agreement with Western Area Power Administration ($115,668.77) BACKGROUND INFORMATION: Customers such as the City of Lodi participate in a program to assure a predictable flow of funds for operation and maintenance of Central Valley Project (CVP) power facilities. Funds advanced are subsequently credited against CVP power bills with little or no net impact on the City's Bulk Purchase Power costs. FUNDING: Not applicable Alan N. Vallow Electric Utility Director PREPARED BY: John Stone, Manager, Business Planning and Marketing AN V/JS/tl C: City Attorney APPROVED: H. Dixon Flynn - City Manager Mr. Alan N. Vallow Electric Utility Director City of Lodi 1331 South Ham Lane Lodi, CA 95242 Dear Mr. Vallow: Department of Energy Western Area Power Administration Sierra Nevada Customer Service Region 114 Parkshore Drive Folsom, California 95630-4710 jD)E�� it0WE �j UTILITY DEPARTMENT Enclosed for your signature are three copies of Exhibit C, Revision 3, Individual Customer Commitment and Contribution, to Contract 96 -SNR -00110, Agreement for the Funding of Operation and Maintenance for Central Valley Project Power Facilities and Amendment 2 to the Agreement. Amendment 2 modifies Section 13 of the Agreement to allow the Governance Board to approve assignment or transfer of interest in the Agreement to another party. Exhibit C, Revision 3, establishes your 1/12 contribution commitment for fiscal years (FY) 2003 and 2004 as defined in Section 5.4 of the Agreement. It also establishes your fair -share funding level for FY 2003. To insure adequate funding for the FY 2003 Plan, we recommend that you commit to the suggested amount shown in the enclosed example of Exhibit C. The suggested amount of your fair - share contribution is based on your Contract Rate of Delivery as of January 3, 2000. We have also enclosed a spreadsheet that shows dollar estimates for customers participating in the funding. To establish your 1/12 contribution commitment and your fair -share commitment for FY 2003, and approve Amendment 2, please do the following: • Enter the dollar amount of the contribution you agree to make for FY 2003 in column 5 of all three copies of Exhibit C. • Sign and date all three signature pages of the exhibit revision. • Sign all three original signature pages of Amendment 2. • Return all originals to Peggy Muir, N6205, at this office by July 14, 2000. If you have any questions, please contact Vicki Page at (916) 353-4561. Sincerely, ae `rr y . Toenyes Regional Manager 4 Enclosures Exhibit C, Revision 3 (3) Amendment 2 (3) Example Exhibit C Spreadsheet Contract No. 96 -SNR -00 110 Amendment No. 2 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS AMENDMENT NO.2 TO THE AGREEMENT FOR THE FUNDING OF POWER OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES Contract No. 96 -SNR -00110 Amendment No. 2 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS AMENDMENT NO. 2 TO THE AGREEMENT FOR THE FUNDING OF POWER OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES Table of Contents Section Pase 1. PREAMBLE.....................................................................................................................1 2. RECITALS ............................................ .....1 3. AGREEMENT......................................................................................................... 4. TERM OF AMENDMENT...............................................................................................2 5. MODIFICATION TO SECTION 13 OF THE PRIMARY AGREEMENT.....................2 6. PRIMARY AGREEMENT TO REMAIN IN EFFECT...................................................2 1 2 3 4 i 6 7 S 9 t0 _. 11 12 13 1-4 15 16 17 18 19 20 21 77 23 24 UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION SIERRA NEVADA CUSTOMER SERVICE REGION CENTRAL VALLEY PROJECT, CALIFORNIA AND UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION MID -PACIFIC REGION AND CENTRAL VALLEY PROJECT CUSTOMERS AMENDMENT NO.2 TO THE AGREEMENT FOR THE FUNDING OF POWER OPERATION AND MAINTENANCE FOR CENTRAL VALLEY PROJECT POWER FACILITIES 1. PREAMBLE: This Amendment to Contract No. 96 -SNR -00110 (Primary Agreement) is made the day of , 2000 between the UNITED STATES OF AMERICA (United States), acting by and through the Administrator, Western Area Power Administration (Western), Department of Energy, represented by the Regional Manager, Siena Nevada Customer Service Region (SNR), the officer executing this Agreement, or a duty appointed successor, and (ii) acting by and through the Commissioner, Bureau of Reclamation (Reclamation), Department of the Interior, represented by the Regional Director, Mid -Pacific Region; and the Central Valley Project (CVP) preference power customers set forth in Exhibit A of the Primary Agreement. 2. RECITALS: 2.1 Western, Reclamation, and the CVP preference power customers entered into the Primary Agreement on November 12, 1997. COn I racl No IM, -SN k AN)I 10 Amcadment 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.2 The Parties have determined that Section 13 of the Primary Agreement is administratively burdensome and desires to modify it. 3. AGREEMENT: The Parties agree to the terms and conditions set forth herein. 4. TERM OF AMENDMENT: This Amendment shall become effective upon execution and shall remain in effect concurrently with the Primary Agreement. 5. DEFINITION OF TERMS: Section 13 of the Primary Agreement is hereby deleted, and the following substituted therefor: "13. SUCCESSORS AND ASSIGNS: This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors. No Party shall assign its interest in this Agreement, in whole or in part, without the prior written consent of the Governance Board. In no event, shall any Party assign this Agreement to any Party that is not financially responsible or which cannot perform its obligations pursuant to this Agreement, nor shall any Party assign this Agreement on any terms at variance from those set forth in this Agreement. No permitted assignment or transfer shall change the duties of the Parties, or impair the chances of obtaining performance under this Agreement, except to the extent set forth in such permitted assignment and approved in writing by the Governance Board." 6. PRIMARY AGREEMENT TO REMAIN IN EFFECT: Except as expressly modified by this Amendment, said Primary Agreement shall remain in full force and effect; and ('untrau Nu 94-SNR-(Mj I 10 Ailloidilltlll 2 2 t I 2 4 5 6 7 8 9 10 t 12 13 14 15 16 17 18 19 ')0 31 22 23 24 this Amendment shall be subject to all provisions of the Primary Agreement, except as herein amended. IN WETNESS WHEREOF, the Parties have caused this Amendment to be executed the day and year first above written. The signatories hereto represent that they have been appropriately authorized to enter into this Amendment on behalf of the Party for whom they sign. ("nar;ict No 96-SNRO)I III AmrnJmcilt 2 WESTERN AREA POWER ADMINISTRATION By: Title: Regional Manager Address: 114 Parkshore Drive Folsom, CA 95630-4710 BUREAU OF RECLAMATION By: Title: Regional Director Address: Mid -Pacific Region 2800 Cottage Waw Sacramento, CA 95825 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed the day and year first above written. The signatories hereto represent that they have been appropriately authorized to enter into this Amendment on behalf of the Party for whom they sign. CITY OF LODI By: Attest: Title: CITY MANAGER By: Address: PO BOX 3006 Title: CITY CLERK LODI CA 95241 APPROVED AS TO FORM: ALL A. HAYS, TY ATTORNEY Contract No. 96 -SNR -00110 4 Amendment2 Exhibit C, Revision 3 City of Lodi Contract No. 96 -SNR -00110 Exhibit C (Individual Customer Commitment and Contribution) 1. This Exhibit C, Revision 3, to be effective under and as a part of Contract No. 96 -SNR - 00110 (hereinafter called the Agreement) shall become effective upon execution, and shall remain in effect until either superseded by a revised Exhibit C or upon termination of the Agreement. 2. The City of Lodi agrees to make a Contribution pursuant to Section 8 of the Agreement for the Fiscal Year and in the amount specified in Section 3 below. The minimum Contribution commitment level required to qualify as a Contributor pursuant to Section 5.4 of the Agreement is indicated in Column 2 of the table shown in Section 3 below. I Please specify the Contribution commitment level(s) in the appropriate row(s) for the applicable FY(s). Column I Column'- Column 3 Column 4 Column 5 FY Section 5.4 Qualifying Amount in Dollars Revision No. 1 Contribution Commitment Level Amount in Dollars Revision No. 2 Contribution Commitment Level Amount in Dollars Revision No. 3 Contribution Commitment Level Amount in Dollars 2001 9,903.56 9,903.56 9,903.56 9,903.56 2002 9,903.56 9,903.56 20,000.00 20,000.00 2003 28,530.62 NIA NIA 115,668.77 2004 29,758.93 N/A N/A Qualifying Amounts and Contributions Commitment amounts, if any, are not shown for fiscal years prior to fiscal year 2001 in the above table. For that information refer to an earlier revision of Exhibit C. The signature below commits the Customer named to make Contributions, for the specified Fiscal Year(s), up to but not greater than the level indicated in the latest revision of the Contribution commitment level for a specific FY. City of Lodi Date of Execution: By: ATTEST: INTERIM CITY CLERK APPROVED AS TO FORM: Title: CITY MANAGER Address: PO BOX 3006 LODI CA 9 Draft FY2003 Fair Share 2002 Assumes all deposits & withdrawals occur In one month. In fact. the deposits & withdrawals will be made in accordance with Reclamation's Withdrawal Schedule. 04/2612000 1013 FY2W31airShare.xIs B&C Fair Share Funding Level (Sec 8.2.4.1) % Minimum 1/12 Share Aug 2002 Deposits: Alameda, City of 184,785.14 1.93% 45,578.72 184,785.14 Biggs, City of 11,360.64 0.12% 2,802.19 11,360.64 Gridley, City of 36,703.60 0.38% 9,053.23 36,703.60 Healdsburg, City of 28,322.94 0.30% 6,986.08 28,322.94 Lassen Municipal Utility District 205,365.37 2.14% 50,655.00 205,365.37 Lodi, City of 115,668.77 1.21% 28,530.62 115,668.77 Lompoc, City of 45,416.33 0.47% 11,202.30 45,416.33 Palo Alto, City of 1,496,108.56 15.59% 369,027.05 1,496,106.56 Plumas-Sierra Rural Electric Co-op 156,427.24 1.63% 38,584.02 156,427.24 Redding, City of 795,244.62 8.29% 196,153.40 795,244.62 Roseville, City of 602,987.68 6.29% 148,731.70 602,987.68 Sacramento Municipal Utility District 3,154,761.62 32.88% 778,146.99 3,154,761.62 Silicon Valley Power 1,193,146.58 12.44% 294,299.07 1,193,146.58 Shasta Lake, City of 100,061.00 1.04% 24,680.84 100,061.00 Turlock Irrigation District 34,440.21 0.36% 8,494.95 34,440.21 Ukiah, City of 76,666.82 0.80% 18,910.48 76,666.82 Ames Research Center 699,116.15 7.29% 172,442.55 699,116.15 Molten Federal Field 43,773.41 0.46% 10,797.06 43,773.41 California State Univ., Sacramento 873.90 0.01% 215.55 873.90 Bay Area Rapid Transit District 34,955.81 0.36% 8,622.13 34,955.81 Arvin -Edison Water Storage District 262,168.56 2.73°/ 64,665.96 262,168.56 Banla-Carbona Irrigation District 32,334.12 0.34% 7,975.47 32,334.12 Byron -Bethany Irrigalion District 19,225.69 0.20% 4,742,17 19,225.69 Eastside Power Authority 38,870.86 0.41% 6,382.53 38,870.86 San Juan Water District 8,738.95 0.09% 2,155.53 8,738.95 Santa Clara Valley Water District 8,625.35 0.09°/b 2,127.51 8,625.35 Sonoma County Water Agency 52,433.71 0.55% 12,933.19 52,433.71 Trinity County Public Utilities District 155 116.40 1.62% 38 260.69 155 116.40 Total Deposits 9.593.700,00 100.00%1 1 2.363,156.98 9,593.700.00 2002 Assumes all deposits & withdrawals occur In one month. In fact. the deposits & withdrawals will be made in accordance with Reclamation's Withdrawal Schedule. 04/2612000 1013 FY2W31airShare.xIs B&C Draft FY2003 Fair Share Projected Withdrawals: Reclamation 3,200,500.00 Western 0.00 Total Projected Withdrawal 3,200,500.00 Aug 2002 Sep 2002 % Credits: Alameda, City of 61,645.12 1.93% 61,645.12 Biggs, City of 3,789.96 0.12% 3,789.96 Gridley, City of 12,244.48 0.36% 12,244.48 Healdsburg, City of 9.448.66 0.30% 9,448.66 Lassen Municipal Utility District 68,510.78 2.14% 68,510.78 Lodi, City of 38,587.60 1.21% 38,587.60 Lompoc, City of 15,151.09 0.47% 15,151.09 Palo Allo, City of 499,108.31 15.59% 499,108.31 Plumas-Sierra Rural Electric Co-op 52,184.81 1.63% 52,184.81 Redding, City of 265,297.06 8.29% 265,297.06 Roseville, City of 201,159.31 6.29% 201,159.31 Sacramento Municipal Utility District 1,052,442.18 32.88% 1,052,442.18 Santa Clara, City of 398,036.88 12.44% 398,038.88 Shasta Lake, City of 33,380.78 1.04% 33,380.78 Turlock Irrigation District 11,489.40 0.36% 11,489.40 Ukiah, City of 25,576.39 0.80% 25,576.39 Ames Research Center 233,228.18 7.29% 233,228.18 Morten Federal Field 14,603.00 0.46% 14,603.00 California State Univ., Sacramento 291.54 0.01% 291.54 Bay Area Rapid Transit District 11,661.41 0.36% 11,661.41 Arvin -Edison Water Storage District 87,460.57 2.73% 87,460.57 Banta-Carbona Irrigation District 10,786.80 0.34% 10,786.80 Byron -Bethany Irrigation District 6,413.78 0.20% 6,413.78 Eastside Power Authority 12,967.49 0.4If.% 12,967.49 San Juan Water District 2,915.35 0.09% 2,915.35 Santa Clara Valley Waler District 2,877.45 0.09% 2,677.45 Sonoma County Water Agency 17,492.11 0.55% 17,492.11 Trinity County Public Utilities District 51 747.50 1.62% 51,747.50 Tolal Credits 3,200,500.00 100.00% 3,200,500.00 Assumes all deposits & withdrawals occur in one month. In fact, the deposits & withdrawals will be made in accordance with Reclamation's Withdrawal Schedule, 04126r2000 2013 FY20031airShare.xls BSC Draft FY2003 Fair Share Working Funds: /1 Reclamation Projected Monthly Withdrawal 3,200,500.00 25% Reserve 800,125.00 Subtotal Reclamation 4,000,625.00 Western Projected Monthly Withdrawal 0.00 25% Reserve 0.00 Subtotal Western 0.00 Monthly Working Fund Balance 4,000,625.00 Governanc! Funds:/2 Fees /3 16,000.00 Reclamation Exigency Fund 5,097,000.00 Reclamation Non Emerg 15% 480,075.00 Western 0.00 Total Governance Funds 5,593,075.00 Total Funding Plan 9,593,700.00 Reclamation's Request - FY 2003 $3,200,500 800,125 /1 Working Funds include both the 25% reserve for Reclamation's cash flow ($800,125) and the projected monthly withdrawal (annual total $3,200,500). /2 Governance Funds include both SMUD's and the bank's estimated fees. The funds in this sub -account may only be made available to the agencies upon Governance Board approval on a case-by-case basis. /3 As provided in the Escrow Agreement, amounts deposited in the Escrow Account for fees will be recorded and reported in the Administrative Sub -Account. Once the account balance is large enough to become self supporting (interest exceeds fees) a separate collection will not be required for these amounts. Fees are based on estimates only. It is assumed that these fees would be deducted by the Bank before 6/30 in each Billing/Crediting cycle. Important Dates: Bill Date: 0 811 5/2 00 2 Due Date: 09/15/2002 Withdrawal Date: 09125/2002 Credit Applied to Power Bill for the month of withdrawal. Timing of deposits and withdrawals into Escrow Account is critical to Western's ability to credit contributors. Credits will not be applied to the reserve balance, unless it is withdrawn from the Escrow Account. (Section 8.3.2) 04/2612000 3013 FY2003fairShare.xls BBC RESOLUTION NO. 2000-79 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING EXHIBIT C, REVISION 3, INDIVIDUAL CUSTOMER COMMITMENT AND CONTRIBUTION, TO CONTRACT NO. 96 -SNR -00110 WITH WESTERN AREA POWER ADMINISTRATION AND BUREAU OF RECLAMATION FOR THE FUNDING OF OPERATION AND MAINTEANANCE FOR THE CENTRAL VALLEY PROJECT FACILITIES AND AMENDMENT 2 TO THE AGREEMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DOCUMENTS ON BEHALF OF THE CITY OF LODI BE IT RESOLVED that the City Council of the City of Lodi does hereby approve Exhibit C, Revision 3, Individual Customer Commitment and Contribution, to Contract No. 96 -SNR - 00110 with Western Area Power Administration and Bureau of Reclamation for the Funding of Operation and Maintenance for the Central Valley Project Facilities and Amendment 2 to the Agreement; and BE IT FURTHER RESOLVED, that the City Manager is authorized and directed to execute said documents on behalf of the City of Lodi. Dated: May 17, 2000 ----------------------------------------------------------------------- ----------------------------------------------------------------------- I hereby certify that Resolution No. 2000-79 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 17, 2000, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Land, Pennino and Mann (Mayor) NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - Nakanishi ABSTAIN: COUNCIL MEMBERS - None NE LJ e Clerk 2000-79