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HomeMy WebLinkAboutReso. 1986 - 001 - Approving the agreement between the city of redding and the western area power administration for performance of studies and authorizing the city manager to sign same RESOLUTION NO. 0e / II A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE AGREEMENT BETWEEN THE CITY OF REDDING AND THE WESTERN AREA POWER ADMINISTRATION FOR PERFORMANCE OF STU- DIES, AND AUTHORIZING THE CITY MANAGER TO SIGN SAME. Be it resolved by the City Council of the City of Redding as follows : 1 . The City Council of the City of Redding hereby approves the letter agreement between the City of Redding and the Western Area Power Administration for the performance of studies for a second point of interconnection to the City of Redding'ls Electric Utility System. 2. The estimated cost of said studies is $40 ,000 . 00 . In the event the estimated cost is exceeded, prior written approval shall by obtained from the City of Redding before the performance of additional work. 3. The City Manager of the City of Redding is hereby authorized and directed to sign all necessary document on behalf of the City of Redding and the City Clerk is hereby authorized and directed to attest the signature of the City Manager and to impress the official seal of the City of Redding on the aforesaid documents, when appropriate. 4. A true copy of the contract referred to herein is attached hereto and made a part hereof. I HEREBY CERTIFY that the foregoing resolution was intro- duced and read at a regular meeting of the City Council of the 110 City of Redding on the 6th day of January , 1986 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Demsher, Fulton, Gard, & Kirkpatrick NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Pugh ABSTAIN: COUNCIL MEMBERS: None 4e' 6& uix/ ;`tom HOWARD D. KIRKPA ! 'ICK, Mayor City of Redding ATTEST:e6// ETHEL A. NICHOLS, City Clerk FORM APPROVED: RA DALL A. HAYS, ty Attorney �I -2- • Redding-LOA-2 N6100 Mr. Robert Courtney City Manager City of Redding 760 Parkview Avenue Redding, CA 96001 Dear Mr. Courtney: This letter sets forth the terms and conditions of this letter of agreement between the City of Redding (Redding) and the Western Area Power Administration (Western) which shall provide the basis for Western and Redding to proceed in the joint development of environmental , real estate, and engineering studies, and a contractual agreement which are prerequisite to any final decision to proceed with a proposed second point of interconnection with Western' s 230-kV transmission system in the vicinity of Redding. (1) (a) Western and Redding agree in good faith to cooperate in analyzing and developing a proposed second direct point of interconnection to the Western 230-kV transmission system; provided however, neither Western nor Redding shall be obligated hereunder to make the actual interconnection. (b) Western and Redding shall prepare an agreement by April 1986 for the proposed second direct interconnection by Redding. Western staff shall work in cooperation with Redding representatives to finalize Alpee Fro-Lee- '—,.. f 1 _f — • • the agreement as expeditiously as possible, such that the agreement will be available for execution subsequent to the completion of the Facility Development Report (FDR) . (c) This letter of agreement shall not be construed to obligate Western or Redding to execute an agreement for the second interconnection. (d) Redding shall be liable for all work and associated costs pursuant to this agreement. (2) As soon as practicable after the execution of this letter of agreement, Redding shall provide Western with an engineering and economic analysis with supporting data such that Western can prepare a FDR pursuant to Western's Engineering Manual , 6401. The FDR shall , among other things, examine the feasibility of various reasonable, second direct interconnection options available to Redding. This report shall be finalized by June 30, 1986, or as may otherwise be mutually agreed. (3) As soon as practicable after the execution of this letter of agreement, Western and Redding shall initiate right-of-way and easement studies. As soon as practicable after the execution of this letter of agreement, Redding shall timely provide Western with environmental data acceptable to Western such that Western and Redding can prepare the necessary environmental documentation for National Environmental Policy IAct (NEPA) compliance by the deadline established later in this paragraph. Western shall coordinate its NEPA compliance work with Redding' s California • 1 Environmental Quality Act Compliance work. These studies shal7l examine the real estate and environmental consequences of the various direct interconnection options identified in item (2) above. These studies and associated reports shall be completed by April 30, 1986, or as may otherwise be mutually agreed. (4) (a) Redding agrees to pay Western all costs actually incurred for work performed by Western hereunder, including Western' s administrative expenses, as provided for in (b) below. (b) (i) The estimated cost of the environmental , real estate, engineering studies and contract development work made pursuant to this letter of agreement is $40,000. Further review of the costs of these tasks between Redding and Western may result in modifications to this estimate. In the event that the estimated cost is expected to be exceeded, prior written approval shall be obtained from Redding before Western performs any additional work. (ii) By the first of the month following execution of this agreement, and by the first of each succeeding month for three months, and as necessary thereafter to cover approved increases, Redding shall advance to Western for deposit to a trust fund account, the sum of ten thousand dollars ($10,000) that will be applied to the costs of performing the tasks outlined in items (1) , (2) , and (3) above. • ! (iii) In the event that Western' s accrued cost exceeds the cumulative advances by Redding in any given month, then Western will immediately bill Redding for the deficit amount or request that the deficit amount be included in the next month' s advance, so long as the total advances do not exceed the total estimated costs pursuant to paragraph 4(b) (i) . (5) Western shall provide Redding with an itemized statement of costs and work performed within sixty (60) days of the completion of the studies and reports described in items (1), (2), and (3) above. Any funds advanced by Redding for this letter of agreement in excess of the actual costs incurred by Western will be returned to Redding without interest, as soon as practicable after the work outlined in this letter of agreement is completed. (6) Subsequent to the completion of the FOR, Western and Redding agree in good faith to develop mutually acceptable terms and conditions, including an assessment of the cost, for the completion of the Design Data Report required by Western' s Engineering Manual 6402. (7) This letter of agreement shall terminate on the date that an agreement for the second direct interconnection project is executed by Western and Redding, and all sums advanced and all costs accrued under this letter of agreement shall be transferred to and accounted for under the second direct interconnection agreement. If such an agreement is not executed, : • • this letter of agreement shall terminate on the earlier of a final settlement or ten (10) days after receipt by Western of a written notice by Redding to stop work. Funds advanced by Redding which remain unused as of the termination date, shall be returned pursuant to paragraph 5 herein. If the above stated terms and conditions of the agreement are acceptable to Redding, please sign both copies of this letter, with attestation, to indicate your acceptance and return to: David G. Coleman Area Manager Sacramento Area Office Western Area Power Administration 1825 Bell Street Sacramento, CA 95825 Accepted and agreed to this day of 1986 by lavii o`eman Area Manager Sacramento Area Office Agreed as to Form By Title City of Redding Attestation By By Title Title Date 11 FORM APPROVED CITY LEGAL 9 P11