HomeMy WebLinkAboutReso. 1988-188 - Approving project agreement for pacific northwest negotiations between m-s-r public agency RESOLUTION NO. g3123
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING PROJECT AGREEMENT FOR PACIFIC NORTHWEST
NEGOTIATIONS BETWEEN M-S-R PUBLIC POWER AGENCY, MODESTO
IRRIGATION DISTRICT, CITY OF SANTA CLARA, AND CITY OF
REDDING, AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT.
WHEREAS , Redding is a member of the Transmission Agency of
Northern California (TANC) , which is pursuing development of the
California Oregon Transmission Project (COTP) ; and
WHEREAS, COTP will provide transmission access for power
resources from utilities in the Pacific Northwest (PNW) , with
costs generally lower than alternative sources of supplemental
power from Pacific Gas and Electric (PGandE) ; and
WHEREAS, in order to receive benefits from the COTP, Redding
must develop power resources from the Pacific Northwest for
delivery by the COTP; and
WHEREAS, Redding is a member of the M-S-R Public Power
Agency (M-S-R) , a joint powers agency of the State of California,
which, in 1986 , conducted a preliminary investigation of
potential Pacific Northwest (PNW) power resources; and
WHEREAS, M-S-R is conducting negotiations with certain PNW
utilities in an effort to secure power resources for Modesto
Irrigation District (Modesto) , City of Santa Clara (Santa Clara) ,
and City of Redding (Redding) to use in conjunction with their
transmission capability in the COTP; and
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WHEREAS , rather than negotiate individually to obtain PNW
power resources , the City' s participation with M-S-R in
developing said resources will provide the most economic and
efficient method for the City to obtain PNW power to be delivered
over its share of the COTP; and
WHEREAS, a Project Agreement for Pacific Northwest
Negotiations to be entered into between M-S-R and its members—
Modesto, Santa Clara, and Redding—is hereby presented to City
Council; and
WHEREAS , said Agreement provides for the expenditure of up
to $153 , 000 .00 , of which Redding' s share is 15% or up to
$22 ,950 .00 , to cover the costs associated with negotiations of
final definitive agreements between M-S-R and PNW utilities; and
WHEREAS, M-S-R plans to request approval of said Agreement
at its May 18 , 1988 , meeting;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1 . That all of the above recitals are true and correct.
2 . That the City Council hereby approves the Project
Agreement and expenditure of funds for Pacific Northwest
negotiations between M-S-R Public Power Agency and its members—
Modesto Irrigation District, City of Santa Clara, and City of
Redding--a true copy of which is attached hereto and incorporated
herein.
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3 . That the Mayor of the City of Redding is hereby
authorized and directed to sign said Project Agreement on behalf
of the City of Redding, and the City Clerk is hereby authorized
and directed to attest the signature of the Mayor and to impress
the official seal of the City of Redding on said Agreement, when
appropriate.
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 17th day of May , 1988 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Buffum, Dahl , Fulton , & Carter
NOES : COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Johannessen
ABSTAIN: COUNCIL MEMBERS : None
1,/0
SCOTT CARTER , Vice Mayor
City of Redding
ATTEST: -
/
ETHEL A. NICHOLS , City Clerk
FORM,PROVED:
L-0�,44.a e
RANflALL A. HAYS , ity Attorney
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PROJECT AGREEMENT NO.
• PACIFIC NORTHWEST NEGOTIATIONS
This Agreement, made this day of , 1988,
by and among M-S-R Public Power Agency, a joint powers agency of
the State of California, herein after "M-S-R"; and the Modesto
Irrigation District, herein after "Modesto" , the City of Santa
Clara, herein after "Santa Clara" , and the City of Redding,
herein after "Redding" , also referred to collectively as
"Members" .
WITNESSETH:
WHEREAS, M-S-R is conducting negotiations with certain
Pacific Northwest utilities in an effort to secure power
resources for the Members of M-S-R to use in conjunction with
their transmission capability in the California-Oregon
Transmission Project (COTP) ; and
WHEREAS, Modesto, Santa Clara and Redding desire to contract
with M-S-R in order to enable it to make the payments provided
for conducting such negotiations.
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•
• •
NOW THEREFORE, M-S-R and its Members agree as follows:
Section 1 . Modesto, Santa Clara and Redding shall each
advance to M-S-R its respective share of the sum of up to
$153, 000, from their respective electric department net revenues
only, for payment of M-S-R' s expenses for the negotiations, and
for consulting and legal expenses related thereto. The Members
shall provide their respective shares of any such sum in
proportion to their participation percentages.
Section 2 . The Members shall advance their respective
shares quarterly in amounts as M-S-R may request. The first of
such advances shall be made payable to M-S-R on or before July
15 , 1988. Each subsequent payment will be due on or before the
fifteenth day of each quarter. Expenditures under this Project
Agreement will not extend beyond December 31, 1989.
Section 3 . The participation percentages of the Members
are as follows: Modesto, 50 percent; Santa Clara 35 percent;
Redding, 15 percent .
Section 4 . If a Member fails to advance any part of the
amounts required by this Agreement within 10 days of the
quarterly due date, such unpaid advance shall bear interest from
the due date at the reference rate or its successor, of the Bank
of America NT&SA then in effect plus two percent, computed on a
daily basis, but not to exceed the maximum legal rate, until
paid.
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IN WITNESS WHEREOF, Modesto, Santa Clara and Redding have
executed this Agreement with the approval of their governing
bodies, and caused their official seals to be affixed, and M-S-R
has executed this Agreement in accordance with the authorization
of its Commission.
M-S-R PUBLIC POWER AGENCY
By
MODESTO IRRIGATION DISTRICT
By
President
By
Secretary
CITY OF SANTA CLARA
By
and:
CITY OF REDDING
By
and:
d:
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