HomeMy WebLinkAboutReso. 1986 - 020 - Approving the bill crediting contract with customer of the central valley project • •
RESOLUTION NO. 8 -40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY SOF REDDING
APPROVING THE BILL CREDITING CONTRACT WITH CUSTOMERS OF THE
CENTRAL VALLEY PROJECT, ENTERED INTO BETWEEN THE CITY OF
REDDING AND THE UNITED STATES OF AMERICA, ACTING THROUGH THE
ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION, AN AGENCY
OF THE DEPARTMENT OF ENERGY, AND AUTHORIZING THE MAYOR TO
SIGN SAME.
BE IT RESOLVED by the City of Council of the City of Redding
as follows :
1 . The City Council of the City of Redding hereby approves
the Contract between the City of Redding and the United States of
America, acting through the Administrator, Western Area Power
Administration, an agency of the Department of Energy, entitled
Bill Crediting Contract with Customers of the Central Valley
Project.
2. The Mayor of the City of Redding is hereby authorized
and directed to sign all necessary documents 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 the aforesaid documents,
when appropriate.
3 . 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
introduced and read at a regular meeting of the City Council of
Iv
. ,
, . • •
the City of Redding on the 20th day of January , 1986 ,
and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS : Demsher, Fulton, Gard , Pugh, & Kirkpatrick
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
Aela,eten14/' ;''',,/ ..:-ieY
HOWARD D. KIRKPAT''ICK, Mayor
City of Redding
ATTEST:
:,-w,,a 2 ,
L
,,,,,-,,,o. t
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
:) ..1,-
NDALL A. HAYS; City Attorney
-2-
• •
Contract No. DE-MS65-86WP59048
1
2
3
4
5
6
7
8
9 UNITED STATES
10 DEPARTMENT OF ENERGY
11 WESTERN AREA POWER ADMINISTRATION
12
13
BILL CREDITING CONTRACT WITH CUSTOMERS OF THE
14
CENTRAL VALLEY PROJECT
15
•
16
17
18
19
20
21
22
23
24
25
.
- •
•
Contract No. DE-MS65-86WP59O48 I
1
UNITED STATES
2 DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
3 BILL CREDITING CONTRACT WITH CUSTOMERS OF THE
CENTRAL VALLEY PROJECT
4
TABLE OF CONTENTS
5 PAGE
ARTICLE
6 1
1 Preamble
7
2-6 Explanatory Recitals 2
.8
7 Term of Agreement 2-3
9
8 Definition and Explanation of Terms 3-4
10 4-5
9 Payment Obligation
11 5-6
10 Payment
12 6
11 General Power Contract Provisions
13 7
12 Enforceability
14 7
13 Exhibits Made Part of Agreement
15 8
14 Execution by Counterpart
16
Exhibit A
17
18
19
20
21
22
23
24
25
• •
Contract No. DE-MS65-86WP59048
1
UNITED STATES
2 DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
3 BILL CREDITING CONTRACT WITH CUSTOMERS OF THE
CENTRAL VALLEY PROJECT
4
1. This Contract made this - day of , 19 ,
5
pursuant to the Act of Congress (The Reclamation Act) approved June 17 ,
6
1902 (32 Stat. 388) , the Act of Congress (The Central Valley Project ,
7
California , and Colorado River-Project , Texas) approved August 26 , 1937
8
(50 Stat. 844, 850) , the Act of Congress (The Reclamation Project Act)
9
approved August 4, 1939 (53 Stat. 1187) , the Act of Congress (Trinity
10 1
River Division Act) approved August 12, 1955 (69 Stat. 719) , the Act of
11
Congress (Flood Control Act-New Melones Project) approved October 23,
12
1962 (76 Stat. 1173 , 1191) , and the Act of Congress (DOE Organization
13
Act) approved August 4 , 1977 (91 Stat. 565) , and acts amendatory thereof
14
or supplementary to the foregoing Acts between the UNITED STATES OF
15
AMERICA, acting through the Administrator, Western Area Power
16
Administration, an agency of the Department of Energy , hereinafter
17
called Western, represented by the officer executing this contract , a
18
duly appointed successor or a duly authorized representative,
19
hereinafter called the Contracting Officer, and the power customers of
20
the Central Valley Project (CVP) which have entered into this contract
21
by executing a counterpart pursuant to Article 14 hereof, which are
22
hereinafter individually called a Contractor, or collectively , the
23
Contractors.
24
25
WITNESSETH
1
2
2. WHEREAS , Western operates an electric power system, including
3
transmission facilities , as a part of the CVP; and
4
5
3. WHEREAS, the Contractors , who are preference customers of the
6
CVP, individually operate electric utility systems which include genera-
7
tion , transmission , and distribution facilities ; and
8
9
4. WHEREAS , Western has arranged for the purchase of supplemental
10
power from various suppliers to help serve the requirements of customers
11
of the CVP, including the Contractors ; and
12
13
•
5. WHEREAS , in exchange for consideration from Western , the
14
Contractors have agreed to pay all or -a portion of their Power Bills , as
15
described herein , directly to suppliers of power to Western.
16
17
6. NOW, THEREFORE , in consideration of the mutual covenants set
18
forth herein , the parties hereto agree as follows:
19
20
TERM OF AGREEMENT
21
22
7. This Agreement shall become effective on the first day of
23
January 1986. Unless terminated as provided herein , this Agreement
24
25 '
2
11
•
shall remain in effect as to Western and a Contractor until the
• 1
expiration of that Contractor' s Power Sales Contract .
2
3
This Agreement may he terminated by Western as to a Contractor, or by a
4
Contractor as to Western under the_ following conditions:
5
6
(a ) After six month 's written notice of intent to terminate;
7
or
8
9
(b) Upon termination of a Contractor's Power Sales Contract ,
10
` according to the provisions of such Agreement .
11
. 12
DEFINITION AND EXPLANATION,OF TERMS
13
14
8. (a) "Power Bill " means the hill delivered by Western to a
15
Contractor each month for the sale by Western and purchase by that
16
Contractor of power from the CVP pursuant to that Cont'ractor's Power
17
Sales Contract.
18
19
(b) "Power Sales Contract" means the agreement between a
20
Contractor and Western which requires ; among other things , payments by a
21
Contractor to Western for electric service from the CVP, These
22
contracts are identified under Exhibit A , attached hereto.
23 -
24
25
3
• •
(c) "Power Purchase Agreement" means an agreement between
1
Western and a supplier which requires payment by Western to that
2
supplier for power purchased from that supplier and delivered to Western
3
to supplement CVP generation.
4
5
PAYMENT OBLIGATION
6
•7
9. (a) Each Contractor hereby agrees to pay a portion of Western 's
8
payments due to suppliers in accordance with the terms of any Power
9
Purchase Agreements .
10
11
(b) Each Contractor and Western agree that the Contractor
12
assumes no obligation to the specified supplier for such payments and
• 13
that such payments are made as an administrative and accounting
14
accommodation to Western. Each Contractor and Western further agree
15 -
that all obligations for supply of the Contractor's power allocation
16
from Western remain with Western and no special conditions for supply of
17
power to the Contractor are placed on the Contractor by this Agreement .
18
19
(c) Western shall determine -the amount of a Contractor' s
20
Power Bill to be paid to a supplier specified by Western. Such amount
21
• shall be deducted from that Contractor' s Power Bill , and in no event
22
shall that Contractor be obligated to pay an amount under this Agreement
23
in excess of its Power Bill , based on metered , scheduled , or estimated
24
quantities of CVP capacity and energy .
25
4
•
(d) Any refusal to pay a supplier in the time period
1
specified on a Contractor' s Power Bill shall constitute non-payment of a
2
portion of that Contractor's Power Bill and he subject to provisions of
3
that Contractor's Power Sales Contract for nonpayment of bills in full
4
when due.
5
6
(e) Except to the extent provided in Article 9(d) above , in
7
the event that a Contractor breaches this Agreement , said breach shall
8
not constitute a breach of , or otherwise affect that Contractor's Power
9
Sales Contract , and a breach of a Contractor's Power Sales Contract
10
shall not constitute a breach of , or otherwise affect , this Agreement .
11
12
(f) Agreement by a Contractor to pray a portion of the
13
payments for the Power Purchase Agreement obligation of Western shall
14
not be contingent upon Congress making appropriations for expenditures
15
by Western for such Agreement.
16
17
PAYMENT
18
19
10. (a) In accordance with article 9(c) , Western shall notify
20
each Contractor of the amount to he paid by specifying the amount on
21
that Contractor's Power Bill .
22
23
24
25
5
• •
(b) Each Contractor shall pay to the designated supplier the
1
amount due within the time period specified for payment on its Power
2
Bill .
3
4
(c) Payments shall be made to the supplier by an electronic
5
transfer of funds or check , at the option of each Contractor, unless
6
otherwise agreed between Western and the Contractor. Documentation of
7
payments shall be sent to Western as soon as practicable.
8
9
(d) Western agrees to credit each Contractor 51 ,000 per month
10
on that Contractor's monthly Power Bill for payment(s) made by that
11
Contractor to a supplier(s) in order to offset any costs associated with.
12
making payments directly to Western suppliers,. The first such credit
13
shall be reflected on that Contractor' s monthly Power Bill subsequent to
14
the first payment to a supplier.
15 •
16 •
GENERAL POWER CONTRACT PROVISIONS
17
18
11. The General Power Contract Provisions dated July 15 , 1985 , are
19
hereby attached to and made a part of this Agreement ; Provided , however,
20
that Articles 1 .2 , 2 through 27 , 29 , 30, 31 , 32, 35 , 3RI , 39 , and 40 ,
21
shall not be applicable under this Agreement.
22
23
24
25
6
• •
ENFORCEABILITY
1
2
12. It is the intent of the parties hereto that this Agreement
3
shall not confer any rights on third parties to enforce the provisions
4
of the Agreement . This Agreement can only be enforced by Western or a
5
Contractor.
6
7
EXHIBITS MADE PART OF AGREEMENT
8
9
13. Exhibit A (Contract Identification) is attached hereto , and
10
made a part thereof. Such exhibit shall be in effect until respectively
11
superseded by a subsequent Exhibit A.
12
13
14
15
16
17
18
19
20 .
21
22
23
24
25
7
•
S
EXECUTION BY COUNTERPART
1
2
14. This Agreement may be executed in a number of counterparts and
3
shall constitute a single document with the same force, and effect as if
4
each party had signed all other counterparts .
5
6
IN WITNESS WHEREOF , the parties hereto° have executed this Bill Crediting
7
Contract No. DE-MS65-86WP59048, in counterparts .
8
9
10
WESTERN AREA POWER ADMINISTRATION
11 By
12 Title Area Manager
Address 1825 8611 Street
13
Sacramento, CA 95825
14
15
16
•
17
18
19
20
21
22
23
24
25 °
8
•
•
Contract No. DE-MS65-86WP59048
1 BILL CREDITING CONTRACT
2
3
4
5 (SEAL) CITY OF PALO ALTO
6
Attest • _ By . .
Title - - - . Title
7
8
9
(SEAL) . - CITY OF REDOING
10 Attest By
11 Title • • Title
- 12
13
14 (SEAL) CITY OF ROSEVILLE
15 Attest By •
Title • . - • Title
16
17
18
(SEAL) CITY OF SANTA CLARA
19 Attest By
20 Title Title
21
22
23 (SEAL) SACRAMENTO MUNICIPAL UTILITY DISTRICT
24 Attest _ By
Tit-le Title
25 -
9
•I • . .
`
BILL CREDITING CONTRACT NO. DE-MS65-86WP59048
EXHIBIT A
(CONTRACT IDENTIFICATION)
1. This Exhibit A, made this day of , 198,6 to be effective
under and as a part of Contract No. DE-MS65-85WP59048 , dated , 1986,
(hereinafter called the Contract) , shall become effective on; the first day
of January, 1986, and shall remain in effect until superseded by another
Exhibit A; Provided, That this Exhibit A or any superseding Exhibit A shall be
terminated by the termination of the Contract.
2. The Power Sales Contracts and their contract numbers are identified
below:
City of Palo Alto Contract No. DE-MS65-85p59007
City of Redding -Contract No. DE-MS65-85,p59008
City of Roseville Contract No. DE-MS65-85WP590.09
City of Santa Clara Contract No. DE-MS65-85'4P59010
Sacramento Municipal Contract No. 14-06-200-290
Utility District