HomeMy WebLinkAboutResolutions - No. 2022-244RESOLUTION NO. 2022-244
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO ENTER INTO ALL
AGREEMENTS NECESSARY TO LOCATE, DEVELOP,
CONSTRUCT, AND OPERATE A 20-48 MW STATE OF
CALIFORNIA FUNDED NATURAL GAS POWER PLANT IN
THE CITY OF LODI
WHEREAS, Staff recently learned that the PG&E transmission lines that transmit power
to the City are and will continue to lack the capacity to serve Lodi during anticipated N-1
contingencies; and
WHEREAS, during the unprecedented August/September 2022 heat storm such a
contingency occurred on September 7, 2022, causing one of the three dedicated 60 kV lines that
serve Lodi to be shut down, resulting in PG&E ordering the City to shed 35 MW on extremely
short notice; and
WHEREAS, Staff work since the September 7t" event has revealed that Lodi will continue
to be subject to the risk of this type of load shed, in the event of future expected contingencies,
until at least 2028 when PG&E's 230kV project is anticipated to be constructed; and
WHEREAS, Staff became aware of a State funded and extremely time sensitive project
to add a natural gas powered peaker plant to the electrical grid with the plant constructed by
the State under special legislation approved this year by the Governor and not subject to normal
regulations or environmental review; and
WHEREAS, the California Department of Water Resources (DWR) is funding the project,
which must be contracted by October 15, 2022, and operational before the summer of 2023; and
WHEREAS, DWR has contracted directly with Enchanted Rock LLC of Texas for the
plant construction and Lodi would subcontract its rights and obligations through Enchanted Rock;
and
WHEREAS, the proposed Lodi power plant will only be able to be run during emergency
situations to protect the integrity of the state wide or local electrical grid.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby
authorize the City Manager to enter into all agreements necessary to locate, develop, construct,
and operate a 20-48 MW State of California funded natural gas power plant in the City of Lodi,
approved as to form by the City Attorney, including, but not limited to the following:
1) An agreement with Enchanted Rock LLC, a Texas limited liability company authorized
to do business in California, to lease a portion of the City's Industrial Substation at
1215 Thurman Street or the Surface Water Treatment Plant at 2001 West Turner
Road, depending on which site has the most advantageous utility access;
2) Alternatively, and only if the first two options set forth in paragraph 1 are not
serviceable, authority to negotiate a lease with Bond Manufacturing, at a lease price
to be determined and subject to the leasehold being assignable to Enchanted Rock
LLC with the cost of the lease to be funded by DWR through Enchanted Rock;
3) An Agreement with Enchanted Rock LLC for the development and construction of the
power plant at DWR's expense on the terms to be set forth an Emergency Generation
Site License Term Sheet;
4) Such agreements with consultants as are necessary for City to perform its scope of
work for the project, including, but not limited to a professional services agreement
with Scott Flake Consulting, Inc. for project management; and
5) An agreement with NCPA to provide energy scheduling and operations services for
the plant.
6) The City Manager will report back on the status of these agreements with the City
Council upon execution of all agreements or upon failure to negotiate a property lease
for a suitable site.
Dated: October 5, 2022
I hereby certify that Resolution No. 2022-244 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held October 5, 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
OLIVIA NASHED
City Clerk
2022-244