HomeMy WebLinkAboutAgenda Report - January 30, 2001 B-01 SMAGENDA TITLE: Adopt resolution authorizing the Northern California Power Agency (NCPA) General Manager
to enter into multi-year electric power purchase and sale contracts on behalf of the City of
Lodi
MEETING DATE: January 30, 2001
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council authorize the NCPA General Manager to enter into
multi-year electric power purchase and sale contracts.
BACKGROUND INFORMATION: NPCA is currently authorized to enter into contracts on behalf of the City for
up to one-year terms. Recently, electric energy market prices have soared
and continue to be subject to increasing volatility requiring a shift to longer
term contracts in order to maintain our energy costs at a manageable level.
In consultation with the Electric Utility Department, NCPA routinely makes purchases and sales of energy for periods
up to one year. The City's load growth over the past several years has accelerated our need to consider new long
term resources. Long term power purchase and sale opportunities in the existing power market generally allow for
minimal response time, often less than one hour. The ability to enter into multi-year bilateral energy contracts is vital
to the continued financial integrity of Lodi's electric operations.
In order to quickly respond to current market conditions, it is proposed that the NCPA General Manager be authorized
to execute power purchase and sale contracts for periods up to ten years in order to better meet the City's resource
needs while minimizing financial risks.
FUNDING: 16.0 (case by case basis)
A Z) 414
Alan N. Vallow
Electric Utility Director
PREPARED BY: Jack Stone, Manager, Business Planning and Marketing
ANV/JS/Ist
C: City Attorney
APPROVED:
H. Dixon Flynn - City Manager
RESOLUTION NO. 2001-14
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE NORTHERN CALIFORNIA POWER AGENCY (NCPA)
GENERAL MANAGER TO ENTER INTO MULTI-YEAR
ENERGY PURCHASE AND SALE CONTRACTS
ON BEHALF OF THE CITY OF LODI
WHEREAS, NCPA is currently authorized to enter into contracts on behalf of the
City for up to one-year terms; and
WHEREAS, recently energy market prices have soared and continue to be subject
to increasing volatility requiring a shift to longer term contracts in order to maintain our
energy costs at a manageable level; and
WHEREAS, the City's growth over the past several years has accelerated our
need to consider new long-term resources; and
WHEREAS, long-term energy purchase and sale opportunities in the existing
power market generally allow for minimal response time, often less than one hour, and the
ability to enter into multi-year bilateral energy contracts is vital to the continued financial
integrity of Lodi's electric operations; and
WHEREAS, in order to quickly respond to current market conditions, it is proposed
that the NCPA General Manager be authorized to execute energy purchase and sale
contracts for periods up to ten years in order to better meet the City's resource needs
while minimizing financial risks.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby
authorizes the NCPA General Manager to enter into multi-year energy purchase and sale
contracts on behalf of the City of Lodi.
Dated: January 30, 2001
--------------------------------------------------------------------
I hereby certify that Resolution No. 2001-14 was passed and adopted by the Lodi
City Council in a special meeting held January 30, 2001 by the following vote:
AYES: COUNCIL MEMBERS -- Hitchcock, Howard, Land, Pennino and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2001-14
Mayor's & Council Member's Weekly Calendar
WEEK OF JANUARY 30, 2001
Tuesday, January 30, 2001
7:00 a.m. Special Meeting (No 5hirts!eeve topic)
1. Adopt resolution authorizing the Northern California Power Agency
(NCPA) General Manager to enter into multi-year electric power purchase
and sale contracts on behalf of the City of Lodi
2. Closed Session
a. Review of Council Appointees -- City Manager, City Attorney, and
City Clerk -- to include compensation evaluation (Gov. Code 54957)
Wednesday, January 31, 2001
Reminder Campaign statements due by 5:00 p.m.
7:00 p.m. Town Hall meeting
1. Electric Utility issues
Thursday, February 1, 2001
Friday, February 2, 2001
Reminder Nakanishi. APPA Rally, Washington D.C.
Saturday, February 3, 2001
Reminder Nakanishi. APPA Rally, Washington D.C.
2:00 P.M. Eagle Scout Court of Honor for Jeffrey Dean Dos Reis, Woodbridge Elks
Lodge, Woodbridge.
5:00 p.m. Sesquicentennial Gala and Concert, University of the Pacific. Reception at
5.00 p.m., banquet at 6:00 p.m., and concert at 8:00 p.m.
6:00 p.m. Lodi Firefighters Dinner Dance, Lodi Moose Lodge. Dinner at 7:00 p.m.
Sunday, February 4, 2001
Reminder Nakanishi. APPA Rally, Washington D.C.
Monday, February 5, 2001
Reminder Nakanishi. APPA Rally, Washington D.C.
Disclaimer. This calendar contains only information that was Provided to the City Clerk's office
count i I\jnisclmcalndr.doc