HomeMy WebLinkAboutAgenda Report - May 7, 2003 E-10CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE-, Adopt a resolution authorizing the City Manager to execute Amendment 3 to United States of
America Department of Energy Western Area Power Administration (Western) Contract 96 -
NR -00110 with the City of Lodi for the Funding of Power Operation and Maintenance for
Central Valley Project Power Facilities (EUD)
May 7, 2003
Electric Utility Director
RECOMMENDED ACTI That the City Council adopt a resolution authorizing the City
Manager to execute Amendment 3 to United States of America
Department of Energy Western Area Power Administration
(Western) Contract 96 -SNR -00110 with the City of Lodi for the Funding of Power Operation and
Maintenance for Central Valley Project Power Facilities.
BACKGROUND INFORMATION: As part of the annual City of Lodi Electric Utility Department's (EUD)
renewal of Western Area Power Administration (Western)
resources, Contract 06 -fit -00110 for the Funding of Power
Operation and Maintenance for Central Valley Project Power Facilities (EUD) provides for continuation of
the Western resource. The Western resource is a below market resource.
ANVIEWIist
C: City Attorney
Finance Director
Contract No. 96 -SNR --6Q1 1
Amendment No. 3
DEPARTMENT C F ENERGY
AMENDMENT NO. 3 TO THE
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CENTRA. VALLEY PROJECT POWER FACILITIES
Contract No. -#-00 110
Amendment No, 3
1. PREAMBLE. ... -- ...... ......... -- ... -- ..... .......... ........ -- ...... --- .............
Z EXPLANATORY RECITALS. .... ....... .......... ---2
3. AGREEMENT . . — . . - . —, - - . ...... ....... 2.
4. TERM OF AMENDMENT .... ............... ......... ........................... ........ 2
5. MODIFICATIONS TO THE PRIMARY AGREEMENT .... ............... -- ................. 2
51 Modification to Section 5.13. ........ ...... ............ ...... 2
5,2 Modification to Section ........ ........ ---- ........ ---3
53 Modification to Section 8.3.4.. ... ...... ...... ....... .......... ---- ......... 3
5A Modification to Section 8.4 ..... .......... ........ ......... - 3
5,5 Modification to Section 10-53 (3)------ ... ....... ................ ... —4
& PRIMARYAGREEMENT TO REMAIN IN EFFECT- ..... 4
7- MODIFICATIONS TO THE PRIMARY CONTRACT--. . ...... - .......... ...... .... —.. 4
SIGNATURE PAGE(S)
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Contract No, 90 -SNP -0011 ?
Amendment d.3
1, EREAMBLE, This Amendment to Contract No, 96 -SNR -001.10 (Primary
Agreement) is made this 16th day of oril 2003, between the
UNITED STATES OF AMERICA (United States), (1) acting by and through the
Administrator, Western Area Power Administration, Department of Energy (Western)
represented by the Regional Manager, Sierra Nevada Customer Service Region, the
officer executing this Agreement, or a duly appointed successor, and (2) acting by and
through the Commissioner, Bureau of Reclamation, Department of the Interior
(Reclamation), represented by the Regional Director, Mid -Pacific Region, and the
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Contract No.96-SNR-00110
Amendment No, 3
Central Valley Project (CVP) preference power customers signing this Amendment as
set forth in Exhibit A of the Primary Agreement, all collectively called Parties.
2, gXPLANATORY RECITAL&
2.1 Western, Reclamation, and the CVP preference power customers entered into
the Primary Agreement on November 12, 1997,
2,2 The Parties have determined that several sections of the Primary Agreement
need to be modified to eliminate the Capital Improvement Project (CIP) threshold.
This will enable the Agencies to accept Customer contributions under the Primary
Agreement for CIP in addition to funding annual Operation and Maintenance
(OW expenses.
2,3 Elimination of the CIP threshold will increase the ability of the customers to.
fund a CIP with repayment in excess of one year.
3. AGREEMENT: In consideration of the mutual benefits to be received through this
Ag reernent, the Parties agree to the terms and conditions set forth herein,
14. TER M OF AMENDMENT, This Amendment shall become effective upon
iexecution by all Parties and shall remain. in effect concurrently with the Primary
czm�
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Contract No. 96 -SNR -001 10
Amendment No. 3
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"5.13 O&M Activities: Those actions and work elements to be performed
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to continue the safe, economic, reliable, and environmentally acceptable
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o.peration of the CVP power facilities including power related programs such
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as marketing, rates, studies, billing and energy services. These activities
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include annual O&M (which are recorded as annual expenses) and Cllr
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(which are recorded as capitalized assets),"
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52 Modification: to Section 6.6. Section 6.5 is deleted in its entirety and the
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following language Substituted-,
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"6A5 Capital Improvement Project: A list of prioritized (QIP will be
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maintained by each Agency and shall be included in the Agency's
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respective preliminary O&M Work Plan(s)."
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5.3 Modification to Secti, Section 8.3.4 is deleted in its entirety and
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the following language substituted:
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"83.4 Recording Contributions: Contributions used during any fiscal
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year will be recorded in the CVP power repayment study. Contributions
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used to finance Agencies annual O&M activities will be recorded in the CVP
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power repayment study as annual expenses. Contributions used to finance
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Agencies CIP will be recorded in the CVP power repayment study as
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capitalized assets, which are recovered over the life of the asset."
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�offl�qqtiqn �toS�eqtion �8* Section 8.4 is deleted in its entirety and the
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following language substituted:
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68,4 CIP FUNDING- Unless otherwise agreed to by the Governance Board,
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j the Agencies will continue to seek appropriations for funding CfP. When
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appropriations or Customer contributions are used, repayment of CIP will be
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Contract No. 96 -SNR -00110
Amendment No. 3
in accordance with repayment requirements set forth in the Agencies'
policies on repayment of investment,"
5.5 Modification to Section 10.5.1 "A'. Section 10.5.3 (3) is deleted in its
entirety and the following language substituted:
"%53 (3) Expenditure thresholds for Emergency, and reprogramming;"
7,EX6ECUTION IN COU NTERPAR -. This Agreement 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.
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AMUMCATM CO"
Contract No, 96 -SNR -001 10
Am ndment No. 3
IN WITNESS WHEREOF, the Parties have caused this Amendment to the
Primary Agreement to be executed the day and year first above written, The signatories
hereto represent that they have been appropriately authorized to enter into this
Agreement on behalf of the Party for whom they sign.
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CITY F LOM
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Contract No. 96-SNR-OQ1 10
Amendment No, 1 -
RESOLUTION NO.
BE IT RESOLVED BY THE OF
no
to execute this Amendment No. 3 to..
Western Area Power Administration Contract No. -STIR-00110.
Adopted,
BE IT RESOLVED that the City Council of the City of Lodi does hereby approve
Amendment 3 to United States of America Department of Energy Western Area Power
Administration Contract No. 96 -SNR -001 10 with the City of Lodi for the funding of Power
Operation and Maintenance for Central Valley Project Power Facilities; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed
to execute said documents on behalf of the City of Lodi.
Dated: May 7, 2003
I hereby certify that Resolution No. 2003-76 was passed andadopted by the City
Council of the City of Lodi in a regular meeting held May 7, 2003, by the following vote:
AYES, COUNCIL MEMBERS — Beckman, Hansen, Howard, Land, and Mayor
Hitchcock
NOES: COUNCIL MEMBERS — None
SUSAN J. BLA TON
City Clerk