HomeMy WebLinkAboutAgenda Report - July 5, 1995 (52)OF
CITY OF LODI
COUNCIL COMMUNICATION
cgCr t+��P
AGENDA TITLE: Contract for Funding of Maintenance Work at Shasta Powerplant, Contract No. 94 -SAO -
00047, with the United States of America
MEETING DATE: July 5, 1995
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: That the City Council approve the Contract for Funding of Maintenance Work at
Shasta Powerplant, Contract 94 -SAO -00047 with the United States of America.
BACKGROUND INFORMATION: The contract sets forth the terms and conditions among several Central Valley
Project power customers, the Western Area Power Administration (Western)
and the Bureau of Reclamation for funding the work to be performed by the
Bureau of Reclamation on generating units 3, 4 and 5 at Shasta Powerhouse.
The Contract does not confer any liability upon Lodi in connection with the work to be performed. Lodi's obligation
over the course of the work would be $169,400 to be paid in installments through the year 2000. Payments and
interest are to be credited against subsequent Western power bills. There is a 25% contract step-up limit should
other contract participants not fulfill their obligations. As is the case now with Western, costs such as the Shasta
Rewind are eventually passed on to all customers through rate increases. By participating in the contract, we
prevent further degradation of a valuable resource, avoid emergency repairs, protect preference power rights and
secure a first right -of -refusal to a share of increased capacity from the rewinds. Sufficient funds are available in the
NCPA Phase IIA Resource Development Fund to cover this expense without impacting electric rate schedules.
FUNDING: NCPA Phase IIA Resource Development Fund
r7� Alan N. Vallow
Electric Utility Director
AN V/J LS/sh
Attachment
Prepared by, John L. Stone, Manager, Rates and Resources
cc: City Attorney
APPROVED.
THOMAS A. PETERSON
City Manager
cc -1
h:1u serladminlctycnc11cc2] un
June 27, 1995
Contract No. 94 -SAO -00047
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
AND
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR FUNDING OF MAINTENANCE WORK AT SHASTA POWERPLANT
WITH
CITY OF ALAMEDA
CITY OF BIGGS
CITY OF GRIDLEY
CITY OF HEALDSBURG
CITY OF LODI
CITY OF LOMPOC
NORTHERN CALIFORNIA POWER AGENCY
CITY OF PALO ALTO
PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE, INC.
CITY OF REDDING
CITY OF ROSEVILLE
CITY OF SANTA CLARA
SACRAMENTO MUNICIPAL UTILITY DISTRICT
SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
TURLOCK IRRIGATION DISTRICT
CITY OF UKIAH
Contract No. 94 -SAO -00047
UNITED STATES
.DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT, CALIFORNIA
AND
UNITED STATES
DEPARTMENT OF INTERIOR
BUREAU OF RECLAMATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR FUNDING OF MAINTENANCE WORK AT SHASTA POWERPLANT
WITH
CITY OF ALAMEDA
CITY OF BIGGS
CITY OF GRIDLEY
CITY OF HEALDSBURG
CITY OF LODI
CITY OF LOMPOC
NORTHERN CALIFORNIA POWER AGENCY
CITY OF PALO ALTO
PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE, INC.
CITY OF REDDING
CITY OF ROSEVILLE
CITY OF SANTA CLARA
SACRAMENTO MUNICIPAL UTILITY DISTRICT
SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
TURLOCK IRRIGATION DISTRICT
CITY OF UKIAH
1.
PREAMBLE..............................................1
2.
EXPLANATORY RECITALS........................I..........
2
3.
AGREEMENT ............................................
3
4.
TERM OF CONTRACT .....................................
3
5.
DEFINITION OF TERMS ....................................
3
6.
WORK TO BE PERFORMED FOR SHASTA..........
4
7.
FUNDING FOR WORK AT SHASTA
6
8.
REPAYMENT AND ACCOUNTING FOR CONTRIBUTED FUNDS .......
11
9.
UPRATED CAPACITY .....................................
13
10.
RATES ...............................................
14
11.
AUDIT AND OVERSIGHT RIGHTS ............................
15
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
SUCCESSORS AND ASSIGNS ................................
16
ENFORCEABILITY .......................................
16.
PERFORMANCE OWQATIONS ..............................
16
DEFAULT ...:.:...
16
SEVERABILITY .........................................
17
GENERAL POWER CONTRACT PROVISIONS ....................
17
ATTACHMENTS AND EXHIBITS MADE PART OF CONTRACT ........
17
RELATIONSHIP OF PARTIES ................................
18
OWNERSHIP RIGHTS .....................................
18
CUSTOMER LIABILITY ....................................
18
EXECUTION IN COUNTERPART .............................
18
RESOLUTIONS
GENERAL POWER CONTRACT PROVISIONS (JANUARY 3, 1989)
EXHIBIT A (ESTIMATED FUNDING SCHEDULE)
EXHIBIT B (REPAYMENT SCHEDULE)
EXHIBIT C (SHASTA REWIND INCREMENTAL INCREASE IN CAPACITY)
ATTACHMENT 1 (ESCROW AGREEMENT)
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
25
26
17
28
Contract No. 94 -SAO -00047
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
CENTRAL VALLEY PROJECT
AND
UNITED STATES
DEPARTMENT OF INTERIOR
BUREAU OF RECLAMATION
CENTRAL VALLEY PROJECT, CALIFORNIA
CONTRACT FOR FUNDING OF MAINTENANCE WORK AT SHASTA POWERPLANT
WITH
CITY OF ALAMEDA
CITY OF BIGGS
CITY OF GRIDLEY
CITY OF HEALDSBURG
CITY OF LODI
CITY OF LOMPOC
NORTHERN CALIFORNIA POWER AGENCY
CITY OF PALO ALTO
PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE, INC.
CITY OF REDDING
CITY OF ROSEVILLE
CITY OF SANTA CLARA
SACRAMENTO MUNICIPAL UTILITY DISTRICT
SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
TURLOCK IRRIGATION DISTRICT
CITY OF UKIAH
j 1. PREAMBL.F.; This Contract is made this day of , 1995,
pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388); August 26, 1937
(50 Stat. 844); August 4, 1939 (53 Stat. 1187); and August 4, 1977 (91 Stat. 565); and Acts
amendatory or supplementary to the foregoing Acts; between the UNITED STATES OF
AMERICA (United States), (i) acting by and through the Administrator, Western Area Power
Administration, Department of Energy, hereinafter called Western, represented by the officer
executing this Contract, or a duly appointed successor, hereinafter called the Contracting
Officer, and (ii) acting by and through the Commissioner, Bureau of Reclamation, Department
of the Interior, hereinafter called Reclamation, represented by the Regional Director, Mid -
0
I Pacific Region; and the CITIES OF ALAMEDA, BIGGS, GRIDLEY, HEALDSBURG,
2 LODI, LOMPOC, PALO ALTO, REDDING, ROSEVILLE, SANTA CLARA, and UKIAH;
3 the NORTHERN CALIFORNIA POWER AGENCY; the SACRAMENTO MUNICIPAL
4 UTILITY DISTRICT (SMUD); the SAN FRANCISCO BAY AREA RAPID TRANSIT
5 DISTRICT (BART), a rapid transit district established pursuant to California Public Utility
6 Code Section 28500 et. seq.; the TURLOCK IRRIGATION DISTRICT (TID); and the
7 PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE, all organized and existing under
8 the laws of the State of California, hereinafter called .the Customers; and all collectively called
9 the Parties.
10
11 2. EXPLANATORY RECITALS;
12 2.1 Shasta Dam and Powerplant (Shasta) and the associated electrical power
13 generating facilities are features of the Shasta Division, Central Valley Project (CVP).
14
15 2.2 Reclamation is responsible, among other things, for planning, designing,
16 constructing, operating, and maintaining the electrical power generating facilities at
17 Shasta.
18
19 2.3 Western is responsible for marketing the power produced at Shasta which is not
20 required for CVP project use.
21
22 2.4 Shasta contains five (5) main generating units having a combined generating
23 capacity of 578 Megawatts (MW).
24
25 2.5 Due to age, normal wear, and deterioration, the stator windings for generating
26 units 3, 4, and 5 at Shasta should be replaced, and certain other maintenance work
27 should be performed to improve reliability and increase operational flexibility.
28
2
1
2
3
4
5
6
71
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
2.6 The Customers have offered to enter into a contributed funds agreement to fund
the Shasta rewind project and Reclamation, under the terms of this Contract, has agreed
to undertake and complete the Shasta rewind project, which includes replacement of the
stator windings for generating units 3, 4, and 5 with increased capacity windings,
installation of new thrust bearings and high pressure lubrication systems for such
bearing•, excitation systems, and performance of other work, as generally set forth in
Section 6 hereof, necessary to restore the generating units at Shasta to good operating
condition.
2.7 The Customers, that will advance the necessary funds for Reclamation to
perform the work required by this Contract, will have the right of first refusal to
purchase the excess capacity as defined herein, and will be repaid the funds advanced,
with interest, through credits on power bills as described herein. Pursuant to
43 U.S.C. §§ 395, 397a, the funds received from the Customers shall be available for
expenditure for the specific purpose for which contributed as set forth in Section 6 in a
like manner as if said sums had been specifically appropriated for said purposes.
3. AG EEM ENT:
The Parties agree to the terms and conditions set forth herein.
4. TERM OF CONTRACT:
This Contract shall become effective on 1995, and shall remain in effect
until midnight of December 31, 2004.
5. DEFINITION OF TERMS:
As used herein, the following terms have the following meanings when used with initial
capitalization, whether singular or plural:
3
lj
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
?7
28
5.1 Cash Call: A request for funds sent to each Customer from time to time by
the Project Treasurer.
5.2 customer: A Party to this Contract that provides funds for the work to be
perfortled by Reclamation under this Contract.
5.3 Escrow Account: An interest bearing account established by the Project
Treasurer at a Federally insured bank for the purpose of holding the Customers' funds
until all disbursements are made to Reclamation and the work set forth in this Contract
is complete.
5.4 The entity selected by the Customers to establish the
Escrow Account, issue the Cash Calls, and perform other financial duties as may be
required for the work performed under this Contract.
6. WORK TO RF PERFORMED FOR THE SHASTA RFWHYD PROJECT;
Reclamation shall be solely responsible for the following work for the Shasta rewind project:
6.1 Prepare specifications of the work to be performed for the Shasta rewind
project.
6.2 Award and administer contract(s) for the work for the Shasta rewind project in
accordance with Federal acquisition regulations. Said contract(s) shall require the
entity to whom the contract(s) is awarded to perform at least the following
requirements:
6.2.1 Submittal to Reclamation of drawings and technical data for all
equipment to be furnished and installed;
4
1
6.2.2 Submittal to Reclamation of design data, test reports, calibration
2
certificates, certified inspection reports, payment information, and labor
3
standards data as required in the specifications;
4
5
.6.2.3 Furnishing of all necessary material, equipment, and labor for the
6
replacement of the stator core, stator winding, ring bus, protective relays and
7
associated equipment, flow meters, excitation systems, main generator lead
8
flexible connectors between the generator main leads and the existing segregated
9
phase bus structure, and high-pressure type lubricated thrust bearings for
10
generating units 3, 4, and 5;
11
12
6.2.4 Replacement of or reinsulating the generator main field windings; and
13
14
6.2.5 Furnishing of a new thrust bearing for unit 2 and new core iron for
15
unit 1.
16
17
6.3
Review and determine responsiveness of bids.
18
19
6.4
Review all bids submitted for compliance with specifications.
20
21
6.5
Inspect manufacturers facilities and monitor production and testing.
22
23
6.6
Witness testing at manufacturers facilities as required.
24
25
6.7
Review value engineering proposals, and approve as deemed appropriate.
26
27
6.8
Inspect installation of equipment.
28
5
1 6.9 Witness acceptance testing of equipment.
2 -_
3 6.10 Review acceptance test results and approve as necessary.
4
5 6.11 = Witness inspections.
6
7 6.12 Disassemble the units in preparation for the removal of the existing stator
8 winding, installation of a new stator winding; and other work needed on the units.
9
10 6.13 Reassemble the units after completion of the work on the units.
11
12 6.14 Prepare quarterly progress reports and other documentation required by this
13 Contract and distribute to each Customer.
14
15 7. FUNDING FOR WORK AT SHASTA:
16 The Customers have appointed the Northern California Power Agency (NCPA) as the Project
17 Treasurer and NCPA has accepted such appointment.
18
19 7.1 The Project Treasurer shall establish the Escrow Account, deposit each
20 Customer's funds in the Escrow Account, and issue Cash Calls sufficient to maintain an
21 adequate balance in the Escrow Account during the term of this Contract to fund the
22 work generally described in Section 6 hereof. The estimated funding schedule, as
23 developed by Reclamation, for deposits to, and withdrawals by Reclamation from, the
24 Escrow Account is shown in Exhibit A, attached hereto and made a part hereof.
25 Reclamation shall not award the contract(s) associated with the work set forth in
26 subsection 6.2 hereof without agreement of all Parties if the selected bid exceeds the
27 value shown in the estimated funding schedule set forth in Exhibit A.
28
6
1
2I
3.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
7.2 The Project Treasurer also shall establish on its books of accounts, subaccounts
identified for each Customer that will show deposits to, and withdrawals from, each
subaccount, and interest accrued on funds in each subaccount. The Project Treasurer
shall issue Cash Calls when necessary to maintain an adequate balance in the Escrow
Account as provided in this Section 7.
7.3 Reclamation, in its best efforts to minimize the time between the deposit of
funds into and the withdrawal of those funds from the Escrow Account, will coordinate
with the Project Treasurer the timing of the deposits and withdrawals from the Escrow
Account. The Project Treasurer will coordinate such timing with the Customers. As
soon as practicable after Reclamation awards the initial contract for the work to be
performed under this Contract, Exhibit A will be revised to reflect the contract award.
Unless otherwise agreed by all Parties, the maximum amount to be funded by the
Customers under this Contract as shown in Exhibit A shall not be increased in
subsequent revisions to Exhibit A, unless the contract{s} awarded by Reclamation for
the work set forth in subsection 6.2 hereof is terminated by agreement of all Parties.
7.4 Funds advanced by the Customers shall only be used by Reclamation for the
work generally described in Section 6 hereof. The Parties expect that the Customers'
funding will be adequate to complete the work as generally set forth in this Contract.
Any additional costs incurred by Reclamation that are in addition to those costs funded
by advances from the Customers for the activities associated with the work performed
under this Contract shall be funded through existing or new appropriations by
Congress.
7.5 Upon agreement of all Customers, the Customers may request that Reclamation
terminate the work remaining to be performed under this Contract for any reason. In
the event the work is to be terminated, the Customers shall be responsible for the cost
7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
of termination pursuant to Section 7 hereof. Reclamation shall furnish a list of
activities in progress, activities outstanding, costs associated with terminating the
contracts with other contractors, and the estimate of time for finalizing the termination.
Upon agreement by all Customers, Reclamation shall commence the termination
process.
7.6 Reclamation will provide Western with the termination schedule and costs, and
updates for revision of Exhibit A. Reclamation will use its best efforts to provide as
much advance notice as possible of the funds needed to terminate work. Upon
completion of all termination work and payment of all obligations for work performed
under this Contract, any funds remaining in the Escrow Account will be returned to the
Customers.
7.7 The Escrow Account shall be established by the Project Treasurer in a financial
institution that is a commercial bank or trust company or national banking association
doing business and having its principal office in New York, New York; Chicago,
Illinois; Los Angeles, California; or San Francisco, California; and having capital stock
and surplus aggregating at least fifty million dollars ($50,000,000), if such a
commercial bank or trust company or national banking association is willing and able to
accept the Escrow Account on reasonable and customary terms.
7.8 At least thirty (30) days, but not more than forty-five (45) days, prior to each
Funding Date shown in Exhibit A hereof, the Project Treasurer shall issue a Cash Call
to each Customer. The Cash Calls issued to each Customer shall equal the product of
the Customer's percentage shown in Exhibit B and the amount of the funds required for
such date as shown in Exhibit A, plus any costs associated with establishing and
maintaining the Escrow Account as charged by the financial institution, plus accounting
and money management costs of seven hundred twenty dollars ($720.00) per year and
8
1
2
3
4
5
6
7
8
9
10
111,
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
?7
28
accounting costs of three hundred fifty dollars ($350.00) per Cash Call, minus any
interest earned by each Customer since the last Cash Call.
7.9 Each Customer shall remit the amount of each Cash Call to the Project
Treasurer within twenty (20) days of receipt of such Cash Call.
7.10 Any and all funds received by the Project Treasurer shall be accounted for in
each Customer's subaccount, and shall be deposited into the Escrow Account as soon as
possible, but in no event later than three (3) business days following receipt thereof.
7.11 Prior to October 1 of each year until the work generally described in Section 6
hereof is complete, Reclamation shall advise Western and the Project Treasurer of any
necessary changes in the timing of funds needed through the end of the period required
for the completion of the work, and shall submit such updated information to the
Project Treasurer and Western. If accelerated funding is necessary during any year, a
statement of the reasons prompting the accelerated funding and the amount and
schedule of the funding needed shall be submitted by Reclamation to the Project
Treasurer and Western. Western shall revise the funding schedule in Exhibit A as
necessary and provide the Project Treasurer and each Customer, such revised
Exhibit A. The Project Treasurer shall issue a Cash Call to each Customer as provided
in subsection 7.8 hereof.
7.12 Any Customer not making the required payments when due pursuant to this
Section 7 will be issued a late notice by the Project Treasurer. The Project Treasurer
will also send a copy of such late notice to each other Party. Such Customer shall have
ten (10) days from the issuance of the late notice in which to make the payment
invoiced in the Cash Call for which payment is late. If the late payment is not made by
the eleventh (11th) day, a notice of default declaring the termination of participation in
9
1
2
3
4
5
6
7
8
9
10
11
12!
13
14
15
16
17
18
19
20
21
22
23
24
25
26
?7
28
this Contract shall be sent -to the defaulting Customer by the Project Treasurer with
copies to all Parties within forty-five (45) days, but no earlier than eleven (11) days,
after the original due date of a payment that is not made. A revised customer
percentage table shall be prepared by the Project Treasurer and sent to Western. A
revised Exhibit B shall be prepared by Western and shall be sent to each Party. The
defaultiltg Customer shall forfeit its right of first refusal to excess capacity pursuant to
Section 9 hereof; Provided, That such Customer shall retain its right to repayment by
Western of its contribution prior to default, with interest, pursuant to subsection 7.13
and 8 hereof. The Project Treasurer shall allocate the amount of the payment due to
the remaining Customers based on their percentage share. The maximum increase of
each Customer's payment for the term of this Contract shall not exceed twenty-five
percent (25 %) of such customer's original percentage share. The Project Treasurer
shall issue a supplemental Cash Call to each remaining Customer for the amount in
arrears. Each Customer shall make the payment required by the supplemental Cash
Call to the Project Treasurer within ten (10) days of receipt of the supplemental Cash
Call. If the supplemental Cash Call does not provide the required funds due to the
limitation on payment increases described herein, the Project Treasurer shall discuss the
action to be taken with the Parties as soon as practicable after the insufficiency of the
supplemental Cash Call is known.
7.13 Any defaulting Customer shall'be held liable for ten percent (10%) of its
remaining obligation based on its original percentage share of the total cost as indicated
in Exhibit B attached hereto, and adjustments for such amounts shall be reflected in
revisions to Exhibit B.
7.14 Upon completion of all work generally described in Section 6, and payment by
Reclamation of any outstanding obligations, Reclamation shall notify the Project
Treasurer of such and request the Escrow Account be closed. The Project Treasurer
10
1
2
3
4
5
6
7
8i
9,
10
11
1211
13
14
15
16
17
18
19
20
21
22
23
24
25
26
17
28
shall then notify the financial institution that the Escrow Account is being closed and
return to each Customer any funds remaining iu that Customer's subaccount.
S. RE AYMENT AND A . O 1NTING FOR CON RIR UED S:
Customers will be reimbursed for funds withdrawn from the Escrow Account by Reclamation
pursuant to Section 7, with appropriate interest as provided for in subsection 8.3, through
credits by Western on each Customer's CVP power bills. Reclamation will allocate the
appropriate share of the total repayment cost, including the cost of funding, for any generator
rewound pursuant to this Contract to the appropriate CVP water users for repayment in
accordance with the CVP cost allocation methodology.
8.1 The Project Treasurer shall provide a copy of all Cash Calls to Western and
Reclamation showing the total amount of the Cash Call, and the amounts invoiced to
each Customer. The Project Treasurer shall also provide to Western the amount and
date of any withdrawals by Reclamation from the Escrow Account and all costs
incurred in establishing and maintaining the Escrow Account that are paid by the
Customers.
8.2 Beginning the first full month following notification by the Project Treasurer of
Reclamation's withdrawal from the Escrow Account, Western shall apply bill credits to
each Customer's CVP power bill for the Customer's percentage share of the amount
withdrawn plus interest and associated costs in the manner described as follows:
8.2.1 Western shall determine the appropriate amount of interest to be added
to the amount of funds withdrawn by Reclamation pursuant to notification by
the Project Treasurer as set forth in subsection 8.1 hereof. Interest shall be
computed using the annual interest rate determined by Western in accordance
with subsection 8.3 hereof.
W
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
8.2.2 Western shall multiply the percentages from the then -current Exhibit B
corresponding�to-each Customer to the sum of: i) each withdrawal by
Reclamation from the Escrow Account, ii) interest calculated in Paragraph 8.2.1
hereof; and iii) all costs incurred in establishing and maintaining the Escrow
'-Account. Such amount shall be applied as a bili credit to the respective
Customers on their power bills; Provided That, Western shall not pay any costs,
including interest, to the Customers greater than those costs that would have
been incurred for the work generally described herein if said sums had been
specifically appropriated for said purposes.
8.2.3 Western shall apply the amounts calculated pursuant to
Paragraph 8.2.2 as a credit on each Customer's power bill; Provided That,
Western shall not apply a credit amount greater than the amount owed to
Western in any month. If the amount owed Western is less than the credit due
the customer in any month, Western shall carryover the credit due each month
until any balance is reduced to zero. Interest shall be computed on the amount
due the Customer using the annual interest rate determined by Western in
accordance with subsection 8.3 hereof.
8.3 Interest on funds withdrawn from the Escrow Account shall be computed at a
rate that shall be at the average rate for -Treasury Securities of 15 years maturity or
more, as used in Western's power repayment study, prorated for the number of days
from the date of Reclamation's withdrawal from the Escrow Account to the date of the
credit on the Customer's power bill. No interest shall be applied to the costs incurred
in establishing and maintaining the Escrow Account.
8.4 As necessary, Western shall suspend all other bill crediting programs and
amounts determined by Western to be owed to the Customers while the credits
12
1
2
3
4
5
6
7
S
9
10
11
12
13
14
15
16
17
181
19
20
211
22i
23
2411
25
26
27
28
hereunder are applied.. Should Western owe a Customer multiple credits, the credit
under this Contract shall be applied first until such credit has been fully satisfied.
Unless contractually provided, interest shall not accrue on any other bill crediting
program balance. Western will resume other bill crediting programs as soon as
practicable after the total amount advanced by the Customers and withdrawn from the
Escrow_ Account by Reclamation has been credited on the appropriate Customers' CVP
power bills.
Reclamation has determined that rewinding and increasing the nameplate ratings of Shasta
units 3, 4, and 5 up to 125 MW each is expected to result in a total increase of approximately
47 MW in the capacity available at Shasta Powerplant when the storage in Shasta Lake exceeds
3.6 million acre feet (MAF). As requested by the Customers, Reclamation will increase the
electrical capacity of the units to 142 MVA as part of the work generally described in Section
6 hereof. The additional electrical capacity above 125 MW is expected to be utilized when the
turbines are replaced. Upon completion of the work generally described in Section 6 hereof,
Reclamation shall notify Western of the amount of additional capacity available from Shasta.
Reclamation shall provide Western with the revised Shasta Powerplant capacity available as a
function of Shasta Lake water storage and reservoir elevations. Western shall use this
information to update Exhibit C attached hereto which shows the incremental increase in
Shasta capacity at certain Shasta Lake water storage and reservoir elevations. After
completion of the work as generally provided under this Contract and for the term of this
Contract, the Customers will be given a right of first refusal for purchase of excess capacity up
to 47 MW from the CVP in accordance with this Section 9.
9.1 If and when Western determines excess capacity is available for sale from the
CVP (system wide), Western shall issue a notice of availability of excess capacity to all
CVP power customers. The determination of the availability of excess capacity and
13
1
2
3
4
5
6
7
8
9'
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
17
28
terms of the offer will be made by Western at the time of the offer and shall apply to
all excess capacity sales: Western is under no obligation as a result of this Contract to
declare excess capacity available. The Customers must meet the marketing criteria set
forth by Western for the excess capacity sale, including any transmission requirements.
Excess capacity sold to any Party pursuant to this Contract will be scheduled in
accordance with the appropriate scheduling arrangements.
9.2 If Shasta Lake storage level is forecasted by Reclamation to exceed 3.0 MAF
during the time of the availability of excess capacity, each Customer shall have the
right of first refusal to purchase, on a seasonal basis, its pro rata share, as specified in
Exhibit B, of the excess capacity up to the amount specified in Exhibit C. If the
Customer does not exercise its right of first refusal for seasonal excess capacity within
the time -frame and under the terms offered by Western, Western may sell the seasonal
excess capacity to any eligible purchaser under the same terms and conditions. If
Western does not market all of the available excess capacity on a seasonal basis,
Western may offer excess capacity on a monthly basis. Each Customer shall have the
right of first refusal to purchase its pro rata share of the monthly excess capacity
corresponding to the water storage levels specified in Exhibit C.
10. RATES:
The Customer shall pay for the excess capacity purchased as a result of the right of first refusal
pursuant to Section 9 hereof, in accordance with the rates, charges, and conditions set forth in
Western's notice of availability for excess capacity. The rates and other terms under which
such excess capacity will be offered shall be consistent with Western marketing plans and rate
setting guidelines.
14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16'
17
18
1911
20
21
22
23
24
25
26
27
28
11. AIMIT AND OVERSIGHT RIGHTS:
11.1 Prior to January 1 of each year until the work set forth herein is complete,
Reclamation shall provide to the Parties an accounting of the funds expended for the
work generally described in Section 6 hereof. If requested by the Project Treasurer,
Reclamation will provide documentation showing the payments made to each
contractor, a description of the work performed by each contractor, and any balance to
complete the work for each contractor. Reclamation also shall give an accounting of
funds expended for work done by Reclamation, a description of the work performed by
Reclamation, and the balance to complete the work required to be performed by
Reclamation. Copies of these accountings shall be distributed to each Customer by the
Project Treasurer.
11.2 A Party, in its exercise of appropriate financial controls, may request the
Project Treasurer to cause an audit to be conducted of the costs of the work set forth in
Section 6 of this Contract. Such audits shall not be conducted more often than every
two (2) years. Such audit may examine records which relate to work associated with
this Contract including, but not limited to, the financial and contract records of the
Project Treasurer, Western, and Reclamation. The costs, including reasonable costs
incurred by the Project Treasurer, Western, and/or Reclamation in the performance of
the audit, shall be paid by the Party(ies) requesting the audit.
11.3 A Party shall be afforded the opportunity to obtain information concerning work
performed under this Contract through reasonable requests to Reclamation. If the
amount of information desired becomes excessive, as determined by Reclamation,
Reclamation shall inform the requesting Customer(s) of same, and shall make
arrangements to provide the information requested at the sole expense of the requesting
Party(ies).
15
1
2
3
4
5
6
7
8
9
10
12
131
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
12. SITCrESSORS AND ASSIGNS:
This Contract shall inure- to die benefit of and be binding upon the Parties hereto and their
respective successors. No Party shall assign its interest in this Contract, in whole or in part,
without the prior written consent of the other Parties. In no event shall any Party assign this
Contract to any Party that is not financially responsible or which cannot perform its obligations
pursuant to this. Contract, nor shall any Party assign this Contract on any terms at variance
from those set forth in this Contract. No permitted assignment or transfer shall change the
duties of the Parties, or impair the chances of obtaining performance under this Contract
except to the extent set forth in such permitted assignment and approved in writing by the
Parties. No Party shall assign its rights of first refusal to excess capacity under this Contract.
13. RNFOR R ITY:
It is not the intent of the Parties that this Contract convey any rights to third parties to enforce
the provisions of the Contract. This Contract can only be enforced by the Parties or their
successors.
14. PERFORMANCE OBLIGATIONS:
Reclamation shall use its utmost efforts and shall diligently endeavor to complete the work
described in Section 6 by the date(s) set forth in Exhibit A. Reclamation will not be obligated
to complete such work if the maximum funding set forth in Exhibit A is not advanced by the
Customers.
15. DF.FAII :
The failure of any Party to perform any of its respective obligations under this Contract shall
constitute a default under this Contract; Provided, That the Party against whom the default is
asserted shall not be deemed in default if it cures the asserted default by rendering the
16
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
necessary performance within ten (10) days following written notice from any other Party,
which notice shall set forth ttie acts and omissions which constitute the asserted default.
16. SEVERARHATY:
If any clause,".sentence, paragraph, or part of this Contract should for any reason be finally
adjudged by any court of competent jurisdiction to be unconstitutional or invalid, such
judgment shall not affect, impair or invalidate the remainder of this Contract but shall be
confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in
the controversy in which the judgment is rendered. If such judgment modifies or holds invalid
any material terms or conditions of this Contract in such a manner that any Party is required to
incur new or different obligations not expressly provided herein or forego benefits which it
was otherwise entitled to, the Parties shall in good faith renegotiate the terms and conditions
affected by the judgment so as to restore the original balance of benefits and burdens
contemplated by the Parties as of the effective date of this Contract. Such renegotiated terms
and conditions shall be in the form of an amendment to this Contract which shall be effective
upon execution by the Parties. The original Contract shall remain in full force and effect, as
modified by said judgment, until the negotiation process for the amendment is complete.
►I DVAA M 1A ./ DIAKOWN NIAAW 0 WRIIIA KI [111M
Articles 1, 28, 29, and 31 through 43 of the General Power Contract Provisions, effective
January 3, 1989, attached hereto, are hereby made a part of this Contract, the same as if they
had been expressly set forth herein.
18. ATTACHMENTS AND EXHIBITS MADE. PART OF CONTRACT:
Inasmuch as the Estimated Funding Schedule, the Repayment Schedule, and the Shasta Rewind
Incremental Increase in Capacity under this Contract may change during the term hereof, they
will be set forth in Exhibits A, B, and C, respectively. Each of said exhibits shall become a
part of this Contract during the term fixed by its provisions. Exhibits A, B, and C are
17
1,
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
411
21
22
23
24
25
26
27
28
attached hereto, and each shall be in force and effect in accordance with its terms until
respectively superseded by a -subsequent exhibit.
19. RELATIONSHIP OF PARTIES:
The covenant2s, obligations, and liabilities of the parties are intended to be several and not joint
or collective, and nothing herein contained shall ever be construed to create an association,
joint venture, trust or partnership, or to impose a trust or partnership covenant, obligations and
liabilities under this Contract. No Party shall be under the control of or shall be deemed to
control any other Party. No Party shall be the agent of or have a right or power to bind any
other Party without its express written consent, except as expressly provided in this Contract.
20. OWNERSHIP RIGHTS:
The ownership of, the title to, and the operation and maintenance responsibility for any
equipment furnished with funds advanced by the Customers under the terms of this Contract
shall be in the name of the UNITED STATES.
21. CUSTOMER i.1AR .ITY;
This Contract does not confer any liability upon the Customers for any claim, action or
judgment against Reclamation, arising out of or in connection with the work generally
described in Section 6.
22. EXECUTION IN COTINTERPART:
This Contract may be executed in a number of counterparts and shall constitute a single
document with the same force and effect as if each Party had signed all other counterparts.
is
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18j
19
20
21.
22
23
24
25
26
?7
28
IN WITNESS WHEREOF, the Parties have caused this Contract to be executed the
day and year first above"written. The signatories hereto represent that they have been
appropriately authorized to enter into this Contract on behalf of the Party for whom they sign.
(Seal)
Attest
By:—
Title:-
(Seal)
Attest
By:—
Title:-
WESTERN AREA POWER ADMINISTRATION
By:
Title: Area Manager
Address: 1825 Hell Street,, Suite 105
Sacramento,, CA 95825 _
BUREAU OF RECLAMATION
By:
Title:—
Address:
CITY OF ALAMEDA
By:
Title:
Address:
CITY OF BIGGS
By: _
Title:_
Addres
19
1
2
3
4
5
6
7
8
9
10
11
12
13
14'
15
16
17i
18
19
20
21
22
23
24
25
26
27
28
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:_
Title:
CITY OF GRIDLEY
By:
Title:_
Address:
CITY OF HEALDSBURG
By:
Title:—
Address:
CITY OF LODI
By:
Title:
Address:
CITY OF LOMPOC
By:
Title:
Address:
NORTHERN CALIFORNIA POWER AGENCY
By:
Title:_
Address:
20
1
2
3
4
5
6
7,
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25,
26
27
28
(Seal)
Attest
By:_
Title:-
(Seal)
itle:_
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
CITY OF PALO ALTO
Bv:
Title:
Address:
PLUMAS-SIERRA RURAL
ELECTRIC COOPERATIVE
By:
Title:—
Address:
CITY OF REDDING
By:
Title:
Address:
CITY OF ROSEVILLE
Rv-
Title:
Address:
CITY OF SANTA CLARA
Bv:
Title:
Address:
21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
201
21
22
23
24
25
26
27
28
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
(Seal)
Attest
By:
Title:
SACRAMENTO MUNICIPAL
UTILITY DISTRICT
By:
Title:
Address:
SAN FRANCISCO BAY AREA RAPID
TRANSIT DISTRICT
By:
Title:
Address:
TURLOCK IRRIGATION DISTRICT
By:
Title -
Address:
CITY OF UKIAH
By:
Title:
Address:
22
The
Contract No. 94 -SAO -00047
RESOLUTION NO.
BE IT RESOLVED BY THE
is authorized, on behalf of
to execute this Contract with the Western
Area Power Administration titled Contract No. 94 -SAO -00047.
Adopted:
OF
Exhibit A to
Contract No. 94 -SAO -00047
EXHIBITA
(Estimated Funding and Project Work Schedule)
1. This Exhibit A, to be effective under and as a part of Contract No. 94 -SAO -00047
(hereinafter called the Contract) shall become effective conincidentally with the Contract, and
shall remain in effect until either superseded by another Exhibit A or upon termination of the
Contract. `.
2. The anticipated schedule for the work generally set forth in Section 6 and the funding
for such work is set forth as follows:
ACTIVITY
Initial Contribution Due
Award Bid
Disassemble Unit 4
Delivery of Materials 2'
Install Components - Unit 4
Reassemble Unit 4
Disassemble Unit 5
Delivery of Materials 2'
Install Components - Unit 5
Reassemble Unit 5
Disassemble Unit 3
Delivery of Materials 2'
Install Components - Unit 3
Reassemble Unit 3
COMPLETION DATE
Jul 14, 1995
Oct 19 - Nov 17, 1995
Apr 1 - May 10, 1996
Nov 20, 1995 - Sep 25, 1996
Sep 26, 1996 - Mar 27, 1997
Mar 24 - May 16, 1997
Aug 13 - Sep 24, 1997
Apr 7, 1997 - Feb 12, 1998
Feb 13 - Aug 4, 1998
Aug 5 - Sep 30, 1998
Dec 30, 1998 - Feb 11, 1999
Aug 19, 1998 - Jun 28, 1999
Jun 29 - Dec 20, 1999
Dec 21, 1999 - Feb 17, 2000
Jul 14, 1995
v
Contingencies
Total Cost
'_' Funding Dates to be added upon award of contract(s) by Reclamation.
2/ Potential field winding replacement is included in the materials costs.
1of2
lasigo-1
1
$18,000
$142,860
$5,117,330
$1,558,000
$190,480
$142,860
$3,965,330
$1,538,000
$190,480
$142,860
$3,935,330
$1,543,000
/xA1$190, /4�70��
$2,5 ,ll'""
$21,175,000
Exhibit A to
Contract No. 94 -SAO -00047
3. The estimated breakdown of the costs for the work generally set forth in this Contract
are as follows:
Contract Costs $17,300,000
Non -Contract
Regional Engineering 50,000
Contract Administration 50,000
Reclamation Technical Center 105,000
Contract Inspection 170,000
Local O&M Staff additional work 1,404,E
Sub Total 1,375,000
Contingencies (15% of Contract amount) 2,50t),!�
Total $21,175.000
2of2
Exhibit B to
Contract No. 94 -SAO -00047
F.XHiRTT R
(Repayment Schedule and Customers Percentages)
1. This Exhibit B, to be effective under and as a part of Contract No. 94 -SAO -00047
(hereinafter called the Contract) shall become effective coincidentally with the Contract, and
shall remain in' -.effect until either superseded by another Exhibit B or upon termination of the
Contract.
2. The following table shows each Customer's Percentage to be used as the basis for
calculating amounts to be advanced by each Customer and the credits to be made on each
Customer's CVP power bills.
PARTICIPANTS
PERCENTAGE SHARE
CALCULATED DOLLAR
AMOUNT
BART
1.0%
211,750
NCPA' (5.3 %)
Turlock
0.3 %
63,525
Alameda
1.4%
296,450
Biggs
0.2 %
42,350
Gridley
0.4%
84,700
Healdsburg
0.2%
42,350
Lodi
0.8 %
169,400
Lompoc
0.4%
84,700
Plumas Sierra
1.1 %
232,925
Ukiah
0.5 %
105,875
Palo Alto's
35.9 %
7,601,825
Redding
10.0%
2,117,500
Roseville
5.0 %
1,058,750
SMUD
30.0%
6,352,500
Santa Clar_
12.8 %
2,710,400
TOTAL
100.0%
$21,175,000
t' Subject to final participation by NCPA Members.
1 of 1
Exhibit C to
Contract No. 94 -SAO -00047
EXHIEIT_ C
(Shasta Rewind Incremental Increase in Capacity)
1. This Exhibit C, to be effective under and as a part of Contract No. 94 -SAO -00047
(hereinafter called the Contract) shall become effective coincidentally with the Contract, and
shall remain in effect until either superseded by another Exhibit C or upon termination of the
Contract.
2. The following table shows the incremental increase in capacity after completion of the
work generally set forth in Section 6 of the Contract.
STORAGE
1,000 ACRE FEET
CAPACITY
MW
3600
47
3500
41
3400
35
3300
26
3200
24
3100
22
3000
20
t_' Based on existing capacity of 118 MW for generating unit 3 and 105 MW for
generating units 4 and 5.
1 of 1
RESOLUTION NO. 95-88
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE EXECUTION OF THE CONTRACT FOR FUNDING OF
MAINTENANCE WORK AT THE SHASTA POWERPLANT, CONTRACT NO.94-SAO-00047,
WITH THE UNITED STATES OF AMERICA
WHEREAS, the City of Lodi is a customer of the Western Area Power Administration currently
receiving an allotment of power from the Central Valley Project; and
WHEREAS, the Shasta Powerplant urgently requires rewinding and associated work on certain
generating units; and
WHEREAS, all parties, including the Western Area Power Administration, Department of Energy,
Bureau of Reclamation, Department of Interior and the City of Lodi and other Central Valley Project
customers desire to go forward with the Shasta Powerplant Rewinds;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lodi does hereby
authorize approval of the contract for funding of maintenance work at the Shasta Powerplant, Contract No.
94 -SAO -00047, with the United States of America;
BE IT FURTHER RESOLVED that the City Council of the City of Lodi does hereby authorize the
City Manager and City Clerk to execute the contract on behalf of the City of Lodi. .
Dated: July 5, 1995
I hereby certify that Resolution No. 95-88 was passed and adopted by the City Council of the City of
Lodi in a regular meeting held July 5, 1995, by the following vote:
AYES: COUNCIL MEMBERS - Davenport, Pennino, Sieglock, Warner and
Mann (Mayor)
NOES: COUNCIL MEMBERS - None
ABSENT: COUNCIL MEMBERS - None
ABSTAIN: COUNCIL MEMBERS - None
95-88