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HomeMy WebLinkAboutReso. 1984 - 278 - Approving MOU between City and Anderson-Cottonwood Irrigation District relating to development of hydroelectric facilities and authorizing mayor to sign sameRESOLUTION NO. �o A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF REDDING AND THE ANDERSON -COTTONWOOD IRRIGATION DISTRICT RELATING TO THE DEVELOPMENT OF HYDROELECTRIC FACILITIES AND AUTHORIZING THE MAYOR TO SIGN SAME. BE IT RESOLVED by the City Council of the City of Redding as follows: 1. The City of Redding shall accept the Memorandum of Understanding with the Anderson -Cottonwood Irrigation District relating to the development of hydroelectric facilities for the mutual benefit of the City and the District; 2. The Mayor of the City of Redding is hereby authorized and directed to sign said Memorandum of Understanding 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 docu- ment; and 3. A true copy of the Memorandum of Understanding 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 City of Redding on the 17th day of December , 1984, and n 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 ATTEST: ETHEL A. NIC OLS, City Clerk FORM APPROVED: RAN LL A. HAYS, Cit Attorney OWARD D: KIRKPA RICK, Mayor City of Redding -2- MEMORANDUM OF UNDERSTA14DING RELATING TO THE DEVELOPMENT' OF HYDROELECTRIC FACILITIES This Memorandum of Understanding is entered into this day of , 1984, by and between the CITY OF REDDING, a municipal corporation hereinafter referred to as "CITY", and the ANDERSON -COTTONWOOD IRRIGATION DISTRICT, a governmental entity acting under and by virtue of Division 11 of the California Wates Code, hereinafter referred to as "DISTRICT". DP('TrPAT C WHEREAS, CITY owns, operates, and maintains for the benefit of its citizens, a power distribution system, and WHEREAS, CITY desires to develop facilities for the generation of electricity, and G;HERFAS, DISTRICT owns and. operates a system for the diversion of water from the Sacramento River and the pro- vision of said diverted waters to lands within the DISTRICT for irrigation, which diversion and distribution facilities may be used for the generation of electric power, and WHEREAS, CITY has applied to the Federal Energy Regu- latory Commission for a license to construct a hydroelectric generating facility on the Sacramento River below the existing DISTRICT facility, and possesses Federal Regulatory 603-141 1 Commission preliminary permits to construct hydroelectric generating facilities at three (3) additional locations on the ANDERSON -COTTONWOOD IRRIGATION DISTRICT Canal, and WHEREAS, CITY and DISTRICT wish to enter into a cooperative agreement for the development of the hydroelectric facilities to the mutual benefit of both CITY and DISTRICT. NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the parties agree as follows: 1. Recitals: The recitals contained herein are an integral part of this Agreement. 2. Singular Includes Plural: The singular of the terms set forth in this Memorandum of Understanding include the plural and the plural shall include the singular. 3. Definitions: Whenever used in this Memorandum of Understanding, these terms shall have the following meanings, where appropriate. (a) "Power": The electrical_ power (energy and capacity) produced, measured in kilowatt hours and kilowatts, as measured at the Bus Bar metering facilities to be provided by the CITY OF REDDING at the respective projects. (b) "Project": The land, the headwater impoundment, and tail -water section, the civil, electrical and mechanical equipment and all other related facilities, including access routes and 603-141 2 rights-of-way required to produce a fully operational hydroelectric generating facility. (c) "Project Costs": The costs to produce power provided to the CITY and the DISTRICT pursuant to the terms of this Memorandum. Project costs shall include debts that are related to the Project, planning, study, engineering, construction, operation, maintenance, power delivery, administrative, and general expenses which are applicable to the Project. Project costs shall also include insurance, taxes (as applicable), and such other costs as are related to the generation and provision of power pursuant to the terms of this Memorandum. (d) "Water Available for Hydroelectric Generation": The amount of water which can be transported in the DISTRICT's distribution and conveyance system and which is not needed by the DISTRICT to serve all of the DISTRICT's customers (present and future) which are not using the water for hydroelectric generation. (e) "Year": A period of time beginning July 1st of any calendar year, and ending on June 30th of the following calendar year. (f) "Irrigation Season": A period of time beginning on April 1st of an -,7 calendar year, and ending on October 31st of the same calendar year. 603-141 3 4. Obligations of City: (a) The CITY shall proceed to secure the necessary permits and perform the necessary studies in order to secure an authorization for construction, operation, and maintenance of the hydroelectric generating facilities identified as the Lake Redding Power Project, FERC Project No. 2828. Said facilities shall include construction of a dam across the Sacramento River, located easterly of the current DISTRICT seasonal dam and related facilities. The purpose of these facilities shall be for the generation and distribution of electricity. (b) The CITY shall proceed to secure the necessary permits and perform the necessary `,dies in order to secure an authorization for construction, operation, and maintenance of the hydroelectric generating facilities identified as follows• (i) Sacramento River Hydroelectric Power Project No. 3, FERC Preliminary Permit Application No. 4913. (ii) Sacramento River Hydroelectric Power Project No. 5, FERC Preliminary Permit Application No. 4910. Said facilities shall be located along the route of the ANDERSON -COTTONWOOD IRRIGATION DISTRICT Canal. The purpose of these facilities shall be for the generation Pnd distribution of electricity. 603-141 4 (c) The CITY shall take no action which would, in any way, significantly reduce, disrupt, alter, or interfere with the DISTRICT's ability to provide reliable.service to the DISTRICT's customers. (d) The CITY shall own, operate, and maintain the hydroelectric generating facilities and shall be solely responsible for the operation and maintenance of the facilities and shall have all rights to the power generated from these facilities except for that power referenced in Paragraph 4(e). (e) In consideration for the use of the DISTRICT's rights, land, and facilities for the development of the Lake Redding Project, the CITY will, during the Irrigation. Season, make available to the DISTRICT at no cost, electric power from the Lake Redding Power Project for use as defined herein, by the DISTRICT for its facilities located within the CITY OF REDDING electrical service area provided that all of the following conditions are met: (i) Power used by the DISTRICT during the CITY's peak electrical usage time period [between 2:30 p.m. and 6:30 p.m.) shall be billed to the DISTRICT at applicable CITY OF REDDING electric utility rates then in effect, provided that all energy utilized by the DISTRICT during this time period shall be credited to the DISTRICT's one and six -tenths percent (1.6o) entitlement as provided in Paragraph 4(e)(ii). The 603-141 5 capacity associated with the energy delivered during the peak time period will be billed at the applicable CITY OF REDDING electric utility rates then in effect. (ii) The amount of power made available without charge from the Lake Redding Power Project shall not exceed one and six -tenths percent (1.69) of the power generated by the Lake Redding Power Project during a month within which power is generated by the Lake Redding Project. All power used by the DISTRICT which exceeds the power made available without charge from the Lake Redding Power Project shall be billed at applicable CITY OF REDDING electric utility rates then in effect or subject to Paragraph 4(e)(i). (iii) All power made available to the DISTRICT without charge shall be used to power only DISTRICT facilities located at within the CITY OF REDDING electrical service area to provide water to DISTRICT's customers. All power used for other purposes shall be separately metered and billed at the applicable City of Redding electric utility rates then in effect. (iv) The CITY OF REDDING retains all ri.ahts to any and all power generated from the Lake Redding power project. (v) At the time electrical service is provided to the district, facilities of the City of Reddinq, of adequate capacity, are available and 603-141 6 adjacent to the property on which the pumps are located. (f) In consideration for the use of. the DISTRICT's rights, lands, and facilities, for the development of the Sacramento River Hydroelectric Projects No. 3 and No. 5, the CITY will provide an annual lease payment as follows: (i) For the first five years of commercial operation of the Sacramento River Hvdroelectric Projects No. 3 and No. 5, the CITY will provide the DISTRICT an annual lease payments equal to 1.5 mils multiplied by the total number of kilowatt hours generated by the Sacramento River Hydroelectric Projects No. 3 and No. 5 during the year. The annual payment period shall begin on July 1, following the date of commercial operation. (ii) At the close of the year ending five complete years from the date of commercial operation of a project, and annually, thereafter, the annual lease payment will be in an amount equal to the total kilowatt hours generated by the Sacramento River Hydroelectric Projects No. 3 and No. 5 during the year, multiplied by 1.5 mils. (g) At such time as the CITY OF REDDING elects to abandon any or all of the projects, or facilities, any rights to such facilities which the CITY possesses 603-141 7 shall be transferred to the DISTRICT provided that such transfer is within the CITY's ability. (h) The CITY shall, upon execution of this Memorandum of Understanding by both parties, surrender its Federal Energy Regulatory Commission Preliminary Permit for the Sacramento Hydroelectric Project No. 6, FERC Project No. 4909. 5. Obligations of District: (a) In consideration of the mutual promises and covenants contained herein the DISTRICT agrees to withdraw its protest to the applications by the CITY OF REDDING to obtain the nonconsumptive water rights for purposes of constructing the power projects which are the subjects of this Memorandum. It is unc' -stood that the withdrawal of said Protest is conditioned upon full and complete performance of this Memorandum by both parties. DISTRICT may intervene and be a party in any judicial, regulatory, or administrative agency proceedings required for the completion of said project by the CITY OF REDDING for the purposes intended in this Memorandum. Anderson -Cottonwood Irrigation District's intervention shall support issuance of any necessary regulatory permits, obligations, licenses, or other entitlements to the CITY OF REDDING, and the DISTRICT will riot protest or otherwise oppose the issuance of said authorizations to the CITY OF REDDING, which are consistent with the purposes and intent of 603-141 8 this Memorandum. To the extent required for the receipt of said authorizations and to the extent it is able to do so, the DISTRICT will support, through pleadings, testimony, and exhibits, as may be authorized by its Board of Directors, the applications of the CITY OF REDDING. (b) The DISTRICT consents to the inundation of land under its control created by the impounding of water from the construction of all hydroelectric generating facilities mentioned in this Memorandum. (c) The DISTRICT consents to the removal of its existing facilities subject to the terms of Paragraph 4(c) at such time ;s is necessary for the proper construction and operation of CITY's hydroelectric generating facilities. (d) The DISTRICT consents, provided such consent is within the DISTRICT's ability, and that such consent will not result in additional cost to the DISTRICT, to take positive action and make best efforts to make any and all water available for hydroelectric generation except for water used for hydroelectric generation_ at the site now known as the Sacramento River Hydroelectric Project No. 6, FERC Project No. 4909, [(water used at said site shall not exceed 25,300 acre feet per year (60 cfs for seven months)), available to the CITY, exclusively for noncersumptive use at the CITY's request. 603-141 9 (e) The DISTRICT may make water available for hydroelectric generation to parties other than the CITY if, and only if, the DISTRICT receives written permission from the CITY except as provided in paragraphs 4(h) and 5(d) herein. Permission from the CITY shall be given if the CITY determines that the use of the water available for hydroelectric generation by other parties will not adversely impact proposed CITY hydroelectric generation projects described in this Memorandum. 6. GENERAL OBLIGATIONS AND AGREEMENTS (a) The failure of either party hereto to complain of, object to, take action to prevent, or to obtain redress for any breach of this Memorandum of. Understanding by the other party shall not be deemed a waiver of any rights of that party under this Memorandum of Understanding with reference to any future breaches or violations thereof, whether of the same character, or of an entirely different character. (b) Neither party hereto shall be liable for failure to perform the obligations set forth in this Memorandum of Understanding if such failure is due to causes beyond its control, including acts of God, or riots, strikes, or operations of law. (c) The CITY may, at its sole discretion, elect to delav or cease development of any or all of the 603-141 10 following projects subject to the provisions of paragraph 4(c). (i) Lake Redding, FERC No. 2828 (ii) Sacramento River Hydroelectric Project FERC No. 4913. (iii) Sacramento River Hydroelectric Project FERC No. 4910. (d) The CITY OF REDDING shall maintain all books, accounts, and invoices in a manner consistent with the uniform accounting rules as established by the Federal Energy Regulatory Commission. DISTRICT shall have full authority, unimpeded in any manner by the CITY, to review said books and accounts and to hire independent auditors and accountants, at DISTRICT's expense, to review said books and accounts and report to the DISTRICT the results of said audit. CITY shall make its own audits of said books and accounts at such times as are required. pursuant to uniform accounting rules of the Federal Energy Regulatory Commission. (e) In carrying out its obligations under this Memorandum, and in constructing, owning and operating the facilities contemplated herein, CITY shall hold the DISTRICT free and harmless of any and all liability, damages, claims and actions arising in any way from CITY obtaining all necessary authorizations, planning and developing said projects, constructing said projects, and operating said projects throughout the life of said projects. 603-141 11 • (f) Should any conflicts arise between this Memorandum and Contract No. DE-MS65-83WP59008 as amended or succeeded, between the United States and the CITY OF REDDING for electric service to the CITY OF REDDING, the provisions of the contract between the United States and the CITY OF REDDING shall prevail. (g) If any section, subdivision, paragraph, part, clause, or phrase of this Memorandum or any amendment or revision is for any reason held to be invalid or unconstitutional, the remaining subdivisions, paragraphs, parts, clauses or phrases shall not be affected but shall remain in full force and effect. Executed the day and year first hereinabove written. CITY OF REDDING By ZkL4Z HOWARD D. KI PATRICK, Mayor Attest: ETHEL NICHOLS, City Clerk Approved as to Form RANDALL A. HAYS City Attorney ANDERSON -COTTONWOOD IRRIGATION DISTRICT BYE<<� j/ President Bv 7 y ' Secretary 603-147. i 1