HomeMy WebLinkAboutReso 93-047 - Approve & Authorize Mayor to execute agreement No. 1 between transmission agency of Northern Calif, COR, and Turlock Irrigation Dist regarding COTP Transmission capability c
RESOLUTION No. 7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE
AGREEMENT NO. 1 BETWEEN THE TRANSMISSION AGENCY OF
NORTHERN CALIFORNIA, THE CITY OF REDDING, AND THE
TURLOCK IRRIGATION DISTRICT REGARDING COTP TRANSMISSION
CAPABILITY.
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WHEREAS, the purpose of the attached Agreement No. 1 between
the Transmission Agency of Northern California (TAMC) , the City
of Redding (Redding) , and the Turlock Irrigation District
(Turlock) is to set forth the arrangements under which Redding
and Turlock will provide a portion of their Participation
Percentages to TANC' s Entitlement to TANC so as to expedite
TANC' s provision of the Entitlement to Western; and
WHEREAS, staff has advised Council that the layoff
arrangements as provided for in this Agreement are very
beneficial to Redding in that they preserve a currently unneeded
portion of Redding' s COTP allocation for later use at a layoff
price which more than recovers the City' s incremental cost;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1. That it is in the best interests of the City of Redding
to enter into Agreement No. 1 between the Transmission Agency of
Northern California and Certain Members Regarding COTP
Transmission Capability, a true copy of which is attached hereto
and incorporated herein by reference.
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2. That the Mayor of the City of Redding is hereby
authorized and directed to sign said Agreement No. 1 on behalf of
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the City of Redding; and the City Clerk is hereby authorized and
'I directed to attest the signature of the Mayor and to impress the
official seal of the City of Redding thereto.
'i I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 165h day of February 1993 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: ANDERSON, ARNESS, KEHOE AND MOSS
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: DAHL
ABSTAIN: COUNCIL MEMBERS: NONE
CHARLIE MOSS, Mayor
City of Redding
,! A ST
CONNIE STROHMAYER, dity Clerk
FORM APPROVED:
RAhDALL A. HAYS, City Attorney
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1 AGREEMENT NO. 1 BETWEEN
2 THE TRANSMISSION AGENCY OF NORTHERN CALIFORNIA
3 AND CERTAIN MEMBERS
4 REGARDING COTP TRANSMISSION CAPABILITY
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6 PREAMBLE
7 This Agreement is made and entered into as of 1993, by and among the
8 Transmission Agency of Northern California, hereinafter referred to as "TANG'; the City of
9 Redding ("Redding"); and the Turlock Irrigation District ("Turlock"). TANC, Redding, and
10 Turlock are referred to individually as "Party" or collectively as "Parties."
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12 RECITALS
13 WHEREAS:
14 A. On December 10, 1984, TANC was duly established as a joint powers agency,
15 . pursuant to Section 6500 et seq. of the California Government Code, by an
16 agreement among its Members entitled "Joint Powers Agreement, Transmission
17 Agency of Northern California" (Joint Powers Agreement or JPA); and
18 B. TANC is a participant in the California-Oregon Transmission Project (COTP)and
19 is the project manager; and
20 C. TANG, as a COTP participant, has the Entitlement in the COTP; and
21 D. The Western Area Power Administration ('Western'), which is also a COTP
22 participant, has requested an additional COTP Entitlement from TANG; and
23 E. TANC has agreed to provide an additional Entitlement of approximately 73 MW
24 to Western pursuant to the terms and conditions of an agreement between TANC
25 and Western ("TANC/Western Agreement"), dated , (Contract No. 93-
26 SAO-00011); and
27 F. The purpose of this Agreement is to set forth the arrangements under which
28 Redding and Turlock will provide a portion of their Participation Percentages to
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1 TANC's Entitlement to TANC so as to expedite TANC's provision of the
2 Entitlement to Western.
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4 NOW, THEREFORE, the Parties agree as follows:
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6
7 1. AGREEMENT
8 The Parties agree to the terms and conditions set forth herein.
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10 2. DEFINITIONS
11 Whenever used in this Agreement, the various terms, when initially capitalized, shall
12 have the following meanings. The singular of any definition shall include the plural and
13 the plural shall include the singular.
14 2.1 Entitlement
15 A participant's right to use its portion of the rated COTP transfer capability, as
16 set forth in the California-Oregon Transmission Project Interim Participation
17 Agreement (IPA) which was executed by IANC, Western, and other COTP
18 participants on September 30, 1991.
19 2.2 Monthly Payment
20 That payment to be made by TANC to Redding and Turlock and calculated in
21 accordance with Appendix A, attached hereto and made a part hereof.
22 2.3 Participation Percentage
23 That percentage of TANC's Entitlement to transfer capability which an individual
24 Member of TANC has the right to use as set forth in the agreement, entitled
25 "Transmission Agency of Northern California Project No. 3 for the California-
26 Oregon Transmission Project (PA-3);' which was executed by TANC and certain
27 TANC Members.
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• •
1 3. TERM AND TERMINATION
2 This Agreement shall become effective upon the execution of the Parties and shall remain
3 in full force and effect through December 31, 2004 unless terminated in accordance with
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4 Sections 3.1, 3.2, or 3.3 below.
5 3.1 Redding or Turlock may terminate this Agreement upon written notice to the
6 other Parties, provided that such notice shall not be given prior to December 31,
7 1993. Termination pursuant to this Section 3.1 shall become effective three (3)
8 years after such notice is given. TANC hereby agrees that, upon receipt of a
9 notice of termination by Redding or Turlock,TANC's Chairman shall,as soon as
10 practicable, notify Western that TANC will terminate the TANC/Western
11 Agreement, effective on the same date as the effective termination date of this
12 Agreement.
13 3.2 TANC may terminate this Agreement upon sixty (60) days written notice to
14 Redding and Turlock provided that TANC has already provided notice to
15 Western to terminate the TANC/Western Agreement in accordance with that
16 agreement's provisions. TANC agrees that its decision to terminate the
17 TANC/Western Agreement shall be conditional upon the prior written
18 concurrence by Redding and Turlock to such a termination.
19 3.3 TANC may terminate this Agreement upon sixty (60) days written notice to
20 Redding and Turlock provided that Western has already provided notice to
21 TANC to terminate the TANC/Western Agreement.
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23 4. TRANSMISSION CAPABILITY TO BE PROVIDED
24 Upon the commercial operation of the COTP, and for the purpose and term of this
25 Agreement, Redding and Turlock shall provide to TANC the Participation Percentages
26 shown in Appendix B. Redding or Turlock may elect to reduce its respective
27 Participation Percentage shown in Appendix B by written notice to the other Parties of
28 such an election. Such reduction shall become effective three (3) years after such notice
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1 is given,provided that such notice shall not be given prior to December 31, 1993. TANC
2 hereby agrees that, upon receipt of a notice of reduction by Redding or Turlock, TANC's
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3 Chairman shall, as soon as practicable, notify Western that TANC will reduce the
4 Entitlement provided under the TANC/Western Agreement, effective on the same date
5 as the effective date for reduction for this Agreement.
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7 5. BILLING AND PAYMENT
8 The TANC Treasurer shall make a Monthly Payment to Redding and Turlock for the
9 Participation Percentages provided as shown in Appendix B attached hereto. Such
10 payment shall be calculated in accordance with Appendix A attached hereto. The Parties
11 recognize that the Parties may agree to implement net billing arrangements for the
12 Monthly Payment.
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14 6. SIGNATURE CLAUSE
15 The signatories to this Agreement represent that they have been appropriately authorized
16 to enter into this Agreement on behalf of the Party for whom they sign.
17
18 TRANSMISSION AGENCY OF NORTHERN CALIFORNIA
19 By:
20 Date:
21
22 CITY OF REDDING
23 By:
24 Date:
25
26 TURLOCK IRRIGATION DISTRICT
27 By:
28 Date:
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• 1 APPENDIX A
2
3 CALCULATION OF MONTHLY PAYMENT
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5 TANC shall pay Redding and Turlock on a monthly basis in accordance with the following
6 formula:
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8 Monthly Payment
9 to Redding = A * B/(B+C)
10 to Turlock = A * C/(B+C)
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12 where: A = The revenue that TANC receives from its agreement
13 with Western Area Power Administration for a layoff
14 of COTP Entitlement (Contract No. 93-SAO-00011)
15 B = Redding's Participation Percentage provided by
16 Redding as shown in Appendix B of this Agreement.
17 C = Turlock's Participation Percentage provided by Turlock
18 as shown in Appendix B of this Agreement.
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• 1
2 APPENDIX B
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4 PARTICIPATION PERCENTAGE PROVIDED
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6 Participation Percentage
7 City of Redding 1.798 %
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9 Turlock Irrigation District 3.909 %
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11 Total 5.707 %
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