Resolution No. 5407
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RESOLUTION NO. 5487
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND RATIFYING THE MAYOR'S
EXECUTION OF A LETTER OF INTENT WITH THE
BONNEVILLE POWER ADMINISTRATION ("BPA"),
WHEREAS, the City of Vernon ("Vernon") receives power
6 from the Southern California Edison Company ("Edison") pursuapt
7 to tariff schedules approved by the Federal Energy Regulatory
8 Commission (iIFERC"): and
9 WHEREAS, FERC approved tariff schedules provide at Spe-
10 cial condition 12 that Vernon may purchase power from other sup-
11 pliers in accordance with certain prescribed notice provisions:
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WHEREAS, said notification of said purchase had to be
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13 WHEREAS, BPA and Vernon have negotiated a Letter of In-
14 tent which provides that BPA sell capacity and energy to Vernon
15 in accordance with said Special Condition 12: and
17 delivered to Edison on or before July 1, 1987: and
18 WHEREAS, the Mayor of Vernon executed said Letter of In-
19 tent in accordance with previous Council instructions to permit
20 the proper notification to Edison in accordance with Special Con-
21 dition 12.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
23 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of Vernon hereby finds
25 and determines that the recitals' contained hereinabove are true
26 and correct.
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SECTION 2:
That the City Council of Vernon hereby
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ratifies and approves the Letter of Intent, a copy of which hqs
been presented to the City Council concurrently with thisresolu-
tion and the City Council hereby orders said Letter of Intent to
SECTION 3:
be received and filed by the City Clerk.
That the City Council of Vernon hereby
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ratifies and approves the Mayorls execution of said Letter of In-
tent for. and on behalf of, Vernon.
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SECTION 4:
The City Clerk of Vernon shall certify to
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the,' passage of this resolution and thereupon and thereafter the
same shall be in full force and effect.
APPROVED AND ADOPTED this 30th day of June, 1987.
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BRUCE V.'MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
) ss.
COUNTY OF LOS ANGELES )
4 I. BRUCE V. MALKENHORST. City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 5407
. was duly adopted by the City Council of
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14 '( SEAL)
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the City of Vernon, and was approved by the Mayor of said City
an adjourned
at >>/regu1ar meeting of the City Council held on Tue~day,
,June 30
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. RUCE V. MALKENHORST, City
Clerk
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Department of Energy
Bonneville Power Administration
P.O. Box 3621
Portland, Oregon 97208-3621
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RECEIVED
JUN.26 1987
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OFFICE OF THE ADMINISTRATOR
In reply refer to: PKL
JUN 2 5 1987
Mr. Leonis C. Malburg
Mayor, City of Vernon
c/o Mr. David B. Brearley
City Attorney
2440 South Hacienda Blvd., No. 223
Hacienda Heights, CA 91745
Dear Mayor Malburg:
Subject: Letter of Intent
Based on productive discussions to date, the Bonneville Power Administration
(BPA) will offer 30 MW of surplus firm power at 100 percent load factor,
delivered to Sy1mar, for the period from January 1, 1989 to September 30,
1992. The sale would be subject to applicable provisions of PL 88-552. The
rate would be $4.60/per kilowatt per month demand charge, and 23 mills per
ki10watthour on-peak and 20 mills per ki10watthour off-peak for energy.
On-peak hours shall be defined as 12:00 noon to 10:00 p.m., Monday through
Friday, except holidays, during every month of the year. All other hours
shall be considered off-peak hours.
The demand and energy charges shall remain unchanged for the period from
January 1, 1989t to December 31, 1990. Thereafter, on January 1, 1991, and
January 1, 1992, the demand and energy charges shall escalate at the same rate
as BPA's Priority Firm (PF) rate for the previous year, or, at the City's
choice, at a fixed rate of 6 percent annually (which BPA expects to be higher
than the PF rate escalation). The City shall select the escalation rate it
prefers to employ for the final 21 months of the contract before a contract is
signed.
BPA and the City shall have until October 1, 1987, to secure transmission to
allow deliveries of power to Sy1mar under this transaction and the City shall
have until that date to secure acceptance of its nonintegrated resource
notice. BPA must, by that date, be assured of firm transmission access to the
City on reasonable terms and conditions, or BPA will be unable to proceed
further with the transaction. In the event that the contingencies described
in this paragraph cannot be removed by October 1, 1987, this letter of intent
expires. However, the parties may mutually agree to extend that deadline.
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Celebrating the U.S. Constitution Bicentennial - 1787-1987
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BPA must also complete environmental review of the proposed contract before it
is executed. BPA expects to complete such environmental review well before
October 1, 1987.
A number of additional terms and conditions must be resolved before a final
contract can be signed. BPA stands ready to work with the City to complete a
transaction under the general principles outlined in this letter. If this
Letter of Intent is acceptable to you, please so indicate by signing and
returning one copy by June 26, 1987.
Sin~lY, .
ACIING &'i[(lIII
ACCEPTED:
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Hayor
TITLE:
DATE:
June 29, 1987
ATTEST:
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Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM:
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David B. Brearley, City A torney
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LEONIS C. MALBURG, Mayor
THOMAS A YBARRA. Mayor Pro-T~m
. fWm. "BILL" DAVIS '
H. ''LARRY>' GONZALES
W. MICHAEL McCORMICK
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CITY COUNCIL
TELEPHONES
CITY CLERK......._.....__....583-8811
POLICE DEPT. _....................587-6171
FIRE DEPT......_...................583-4821
BUILDING DEPT._...................583-8811
PUBLIC WORKS DEPT. ..........583-8811
HEALTH DEPT. -...................583-8811
CITY HALL
4305 SANTA FE A VENUE, VERNON, CALIFORNIA 90058
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Mr. Ed Bleifuss
Department of Energy
Bonneville Power Administration
P.O. Box 3621
Portland, OR 97208-3621
SUBJECT: Letter of Intent
Dear Mr. Bleifuss:
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OFFICERS '"'
BRUCE V. MALKENHORST.
City AdminiatraSorlCity Clerk
DAVID B. BREARLEY.
City Attorney
VICTOR H. V AITS.
Director 01 CommllJlity Servicu
LEWIS R. ADAMS.
DiNCtor 01 Water II Power
GEORGE F. BASS.
Fire Chief
AL ESPINOZA
Police Chief
/n 1kpl~ llIfn to:
Enclosed herewith for your files is an executed Letter of Intent dated
June 29, 1987. If you have any questions please do not hesitate to
contact us.
Very truly yours,
CITY OF VERNON
B~7(i::'jr!!L/f..l~
City Clerk
BY, &k/-.() .~ tfj4-I!~;?
GlOria J. Oro co
-Chief Deputy City Clerk
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