HomeMy WebLinkAboutAgenda Report - February 16, 2022 C-15AGENDAITEM
i"�, CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Request for Assignment of
City of Lodi's Western Area Power Administration Base Resource Percentage to
Northern California Power Agency
MEETING DATE: February 16, 2022
C14!5
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a
Request for Assignment of City of Lodi's Western Area Power
Administration (WAPA) Base Resource Percentage to Northern
California Power Agency (NCPA).
BACKGROUND INFORMATION: The City of Lodi (Lodi) entered into Base Resource (BR) Contract
20 -SNR -02347, dated January 28, 2021, with WAPA for 0.55792
percent of WAPA's BR.
Prior to this, Lodi assigned its BR percentage under BR Contract 00 -SNR -00327 to NCPA under Request
for Assignment 04 -SNR -00771 effective January 1, 2005. Contract 00 -SNR -00327 and Request for
Assignment 04 -SNR -00771 terminate December 31, 2024. NCPA and Lodi wish to retain the assignment
beyond 2024 under the new BR Contract 20 -SNR -02347.
On the effective date of this Request for Assignment 21 -SNR -02642 (Assignment), Lodi hereby requests
WAPA assign its BR percentage under BR Contract 20 -SNR -02347 to NCPA under NCPA's BR Contract
21 -SNR -02661. NCPA is agreeable to taking responsibility for Lodi's 0.55792 percentage of BR starting
January 1, 2025. This Assignment shall remain in effect until the earlier of: (a) December 31, 2054; or (b)
until it is terminated.
Under NCPA's 2025 Assignment Administration Agreement (AAA), presented as a separate agenda
item, NCPA can accept assignment of Lodi's BR percentage, and will administer the Assignment for the
benefit of Lodi according to the terms and conditions. This request will assign Lodi's BR percentage to
NCPA and NCPA will manage Lodi's BR percentage on behalf of Lodi.
On December 9, 2021, the Risk Oversight Committee received a report and recommended approval of
the Request for Assignment of City of Lodi's BR percentage to NCPA.
FISCAL IMPACT:
FUNDING AVAILABLE
Not applicable.
Not applicable.
Jeff Berkheimer
Electric Utility Director
APPROVED: Steve SCi1Wabauer
Stephen Schwabauer, City Manager
Assignment 21 -SNR -02642
REQUEST FOR ASSIGNMENT OF
CITY OF LODI'S
BASE RESOURCE PERCENTAGE
TO NORTHERN CALIFORNIA POWER AGENCY
BACKGROUND:
City of Lodi (Lodi) is a municipal corporation. Lodi entered into Base Resource (BR)
Contract 20 -SNR -02347 (BR 02347), dated January 28, 2021, with the Western Area
Power Administration (WAPA). BR 02347 provides Lodi with 0.55792 percent of
WAPA's BR. Lodi is located in the California Independent System Operator's Balancing
Authority Area. Lodi assigned its BR percentage under BR Contract 00 -SNR -00327 to
Northern California Power Agency (NCPA), a joint powers authority, under Request for
Assignment 04 -SNR -00771 effective January 1, 2005. Contract 00 -SNR -00327 and
Request for Assignment 04 -SNR -00771 terminate December 31, 2024. NCPA and Lodi
wish to retain the assignment beyond 2024.
1 REQUEST FOR ASSIGNMENT OF LODI BR PERCENTAGE TO NCPA:
2.1 On the effective date of this Request for Assignment 21 -SNR -02642
(Assignment), Lodi hereby requests WAPA assign its BR Percentage under BR
02347 to NCPA under NCPA's BR Contract 21 -SNR -02661 (BR 02661).
2.2 NCPA is agreeable to taking responsibility for Lodi's 0.55792 percentage of BR.
2.3 As of the effective date, NCPA assumes all the rights, duties, and obligations
associated with receiving Lodi's BR Percentage under BR 02661.
2.4 Lodi and NCPA shall jointly and separately indemnify and hold WAPA harmless
from and against all claims, damages, losses, and expenses, including attorney's
fees, arising out of or resulting from this Assignment.
2.5 Lodi and NCPA agree that either Lodi or NCPA may unilaterally submit a 90 -day
written notice to WAPA to terminate this Assignment. Termination shall become
effective on the first day of the month following the 90 -day period. On the
effective date of the termination, this Assignment to NCPA shall terminate and
the BR Percentage shall revert to Lodi. NCPA shall hold WAPA harmless from
any and all claims, damages, losses, and expenses, including attorney's fees,
arising out of or resulting from issuing a notice to terminate or termination of this
Assignment.
2.6 This Assignment shall remain in effect until the earlier of: (a) December 31, 2054;
or (b) until it is terminated pursuant to Section 2.5 above.
Assignment 21 -SNR -02642
3. REDUCTION OF LODI'S BR PERCENTAGE OR TERMINATION OF LODI'S
BR 02347:
Section 4.2 of BR 02347 allows for Lodi to reduce its BR Percentage or terminate
BR 02347 for any reason through June 30, 2024. Section 12.4 of BR 02347 also allows
for Lodi to reduce its BR Percentage or terminate BR 02347 within ninety (90) days after
the Rate Effective Date of a Rate Schedule or Rate Schedule extension.
3.1 Should WAPA receive a request from Lodi to reduce its BR Percentage, the BR
Percentage assigned to NCPA shall be reduced in NCPA's BR 02661 on the
effective date of the reduced BR Percentage.
3.2 Should WAPA receive a request from Lodi to terminate Lodi's BR 02347, Lodi's
assigned BR Percentage shall be returned to WAPA for reallocation on the
effective date of the termination of Lodi's BR 02347.
4. EXECUTION BY COUNTERPARTS:
This Assignment may be executed in any number of counterparts and, upon execution
and delivery by each Party, the executed and delivered counterparts together shall have
the same force and effect as an original instrument as if all Parties had signed the same
instrument. Any signature page of this Assignment may be detached by any counterpart
of this Assignment without impairing the legal effect of any signatures thereon and may
be attached to another counterpart of this identical in form hereto, by having attached to it
one or more signature pages.
ELECTRONIC SIGNATURES:
The Parties agree that this Assignment may be executed by handwritten signature or
digitally signed using Adobe Sign, Adobe E -Signature, or DocuSign. An electronic or
digital signature is the same as a handwritten signature and shall be considered valid and
acceptable.
2
Assignment 21 -SNR -02642
6. AGREEMENT:
All parties to this Assignment agree that it will become effective on the first day of the
first month following the date of approval by WAPA's Administrator or a later date if
agreed to by WAPA and Lodi.
Attest:
By:
Name: Pamela M. Farris
Title: Assistant City Clerk
Date:
Attest:
By:
Name:
Title:
Date:
CITY OF LODI
By:`
Name:
hen Schwabauer
Title: City Manager
Address: 221 W. Pine Street
Lodi CA 95240
Date:
Approved as to form:
By:
Name: Janice D. Magdich
Title: City Attorney_ _
NORTHERN CALIFORNIA POWER AGENCY
By:
Name:
Title:_
Address:
The above Assignment of the BR Percentage from Lodi to NCPA under BR 02661 is hereby
approved.
Date: By:
Tracey A. LeBeau
Administrator and Chief Executive Officer
Western Area Power Administration
3
RESOLUTION NO. 2022-35
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE REQUEST FOR ASSIGNMENT OF CITY OF
LODI'S WESTERN AREA POWER ADMINISTRATION BASE RESOURCE
PERCENTAGE TO NORTHERN CALIFORNIA POWER AGENCY
WHEREAS, the City of Lodi (Lodi) entered into Base Resource (BR) Contract
20 -SNR -02347, dated January 28, 2021, with WAPA for 0.55792 percent of WAPA's BR; and
WHEREAS, prior to this, Lodi assigned its BR percentage under BR Contract
00 -SNR -00327 to NCPA under Request for Assignment 04 -SNR -00771 effective January 1, 2005;
and Contract 00 -SNR -00327 and Request for Assignment 04 -SNR -00771 terminate
December 31, 2024; and
WHEREAS, NCPA and Lodi wish to retain the assignment beyond 2024 under the new
BR Contract 20 -SNR -02347; and
WHEREAS, Lodi hereby requests WAPA assign its BR percentage under BR Contract
20 -SNR -02347 to NCPA under NCPA's BR Contract 21 -SNR -02661; and
WHEREAS, NCPA is agreeable to taking responsibility for Lodi's 0.55792 percentage of
BR starting January 1, 2025 per Request for Assignment (Assignment) 21 -SNR -02642; and
WHEREAS, this Assignment shall remain in effect until the earlier of:
(a) December 31, 2054; or (b) until it is terminated; and
WHEREAS, under NCPA's 2025 Assignment Administration Agreement, authorized by
separate City Council action, NCPA can accept assignment of Lodi's BR percentage, and will
administer the Assignment for the benefit of Lodi according to the terms and conditions; and
WHEREAS, this request will assign Lodi's BR percentage to NCPA and NCPA will
manage Lodi's BR percentage on behalf of Lodi; and
WHEREAS, on December 9, 2021, the Risk Oversight Committee received a report and
recommended approval of the Request for Assignment of City of Lodi's BR percentage to NCPA.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the City Manager to execute Request for Assignment 21 -SNR -02642 of City of Lodi's Base
Resource Percentage to Northern California Power Agency.
Dated: February 16, 2022
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I hereby certify that Resolution No. 2022-35 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held February 16, 2022, by the following vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None (�
1/2177�
PAMELA M. FARRIS
Assistant City Clerk
2022-35