Resolution No. 5934
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RESOLUTION NO. 5934
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A ,RESOLUTION-mQE' ,THE CITY COUNCIL OF",THE__
CITY OF VERNON APPROVING AND AUTHORI ZING
THE EXECUTION OF A FIRM TRANSMISSION
SERVICE AGREEMENT BY AND BETWEEN THE CITY
OF VERNON AND LOS ANGELES DEPARTMENT OF
WATER AND POWER (LADWP)
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WHEREAS, the City Council of the City of Vernon
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approved Resolution No. 5933 on June 4, 1991, which approved and
authorized the execution of a Firm Power Sale Agreement between
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the City of Vernon and the Salt River project Agricultural
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Improvement and Power District (SRP) providing for the purchase
of capacity and associated energy; and
WHEREAS,
the City of Vernon needs firm transmission
service in order to accept deliveries of capacity and associated
energy from SRP; and
WHEREAS, the City of Vernon desires to enter into a
Firm Transmission Service Agreement with the LADWP for the
transportation of the capacity and associated energy purchased
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from SRP.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
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SECTION 1:
The City Council of the City of Vernon
hereby finds and determines that the recitals contained
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hereinabove are true and correct.
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The City Council of the City of Vernon
SECTION 2:
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hereby approves the Firm Transmission Service Agreement, a copy
of which has been presented to the City council concurrently
with this resolution and the City council hereby orders said
Agreement to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon
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hereby authorizes the Mayor and the City Clerk to execute said
Agreement for, and on behalf of, the city of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 4th day of June, 1991.
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...,- L~~NIS C. MAL , G, May r
ATTEST: ., ~ ~
/Z-- /~ .
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES .}-._
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 5934, was duly adopted by the City council of the
City of Vernon at a regular meeting of the City Council duly
held on Tuesday, June 4. 1991. and thereafter duly signed by the
Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
(SEAL)
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Thejp)mmm~lTIl~ (Q)ff W@t~~1f @Uffidl IP\o),~~1f
ttlb1~ CCn~~ (Q)ff ILcoo ~n~
TOM BRADLEY
Mayor
Commission
MICHAEL J. GAGE, President
RICK J. CARUSO, Vice President
ANGEL M. ECHEVARRIA
DOROTHY GREEN
MARY D. NICHOLS
JUDITH K. DAVISON, Secretary
DANIEL W. WATERS, Genual Manager and Chief Engineer
ELDON A. COTION, Assistant G_,al Manager. Power
JAMES F. WICKSER, Assistant General Manager. Watel'
NORMAN L. BUEHRING, Assistant General Manager. Extel7Ull.Affairs
NORMAN J, POWERS, Chief Financial Offrcer
July 29, 1991
Dear Mr. DeDario:
IlECEIVED
AUG 0 5
LIGHt 1991
& PoWER
Mr. Ken DeDario
Director of Light and Power Department
City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
Los Angeles-Vernon Eldorado/Victorville-Lugo
Transmission service Aqreement
Enclosed is the duplicate original of the Los Angeles-
Vernon Eldorado/Victorville-Lugo Transmission Service Agreement
(Agreement), DWP No. 10970, between the City of Vernon and the
Los Angeles Department of Water and Power (Department).
The Board of Water and Power Commissioners approved the
Agreement at its meeting held on June 27, 1991, and has been
executed by the Department.
Please retain this duplicate original Agreement for your
files. If you have any questions concerning this matterf please
have a member of your staff contact Ms. Kellie J. Peterson at
(213) 481-5344.
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DONALD M. PAPPE
Manager of Power Contracts
Enclosure
c: Ms. Kellie J. Peterson
III North Hope Street, Los Angeles, California 0 Mailing address: Box I II, Los Angeles 90051.QlOO
Telephone: (213) 481-4211 Cable address: DEWAPQLA FAX: (213) 481-8701
eN
RecyelaOie anQ -na0€ Irom recycleO wasle~(iJ
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LOS ANGELES-VERNON
ELDORADO/VICTORVILLE-LUGO
TRANSMISSION SERVICE AGREEMENT
BETWEEN
THE DEPARTMENT OF WATER AND POWER
OF THE CITY OF LOS ANGELES
AND
THE CITY OF VERNON
DWP NO.
10970
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SECTION
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LOS ANGELES-VERNON
ELDORADO/VICTORVILLE-LUGO
TRANSMISSION SERVICE AGREEMENT
TABLE OF CONTENTS
TITLE
PAGE
PARTIES . . . . . . . . ....... 1
RECITALS . . . ... 1
AGREEMENT......... . . . 2
DEFINITIONS . . . . . . . 2
EFFECTIVE DATE AND TERM . . . . . 2
DATES OF SERVICE . . .. .... 3
TRANSMISSION SERVICE . . . . . . . . .. 3
BILLING AND PAYMENT . . . . . 6
LIABILITY . . . . . . . . . . . . . . . . 7
UNCONTROLLABLE FORCE . .. ... 9
SUCCESSORS AND ASSIGNS . . . . . . . . . 10
EFFECT OF SECTION HEADINGS . .. 10
NO DEDICATION OF FACILITIES . . . . . 10
NO THIRD-PARTY RIGHTS . . . . . . .. 11
AUTHORIZED REPRESENTATIVES . .. 11
NOTICES . . . . . . . . . .. 11
SEVERABILITY . . . . 12
ENTIRE AGREEMENT . . . . . . . . . . . . 13
OTHER AGREEMENTS . . . .. . 13
WAIVERS . . . . . . . . . . . . . . . . . 13
GOVERNING LAW . . . . . . . . . . . . . . 14
SIGNATURE CLAUSE . . . . .. .... 15
APPENDIX A . . . . . . . . . 16
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1.
LOS ANGELES-VERNON
ELDORADOjVICTORVILLE-LUGO
TRANSMISSION SERVICE AGREEMENT
2.
PARTIES: The Parties to this Agreement are THE
DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES
(Los Angeles), a department organized and existing under
the Charter of the City of Los Angeles, a municipal
corporation organized and existing pursuant to the laws
of the State of California and the CITY OF VERNON
(Vernon), a municipal corporation of the State of
California, hereinafter sometimes referred to
individually as "Party" and collectively as IIparties".
RECITALS: This Agreement is made with reference to the
following facts, among others:
2.1 Vernon anticipates entering into a power sales
agreement with the Salt River Project (SRP) for the
purchase of capacity and associated energy as
described in Appendix A hereto. The power sale will
start concurrently with this Agreement.
2.2 Vernon desires to purchase firm transmission service
from Los Angeles between Los Angeles' point of
interconnection with the Southern California Edison
Company (Edison) at Edison's Eldorado Substation and
Los Angeles' point of interconnection with Edison on
the Victorville-Lugo Transmission Line for the
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delivery of Vernon's 20-megawatt SRP energy
purchase.
2.3. Los Angeles has determined that it has surplus
transmission capacity available from Eldorado
Substation to the Edison Victorville-Lugo
interconnection, and is willing to provide the
requested firm transmission service pursuant to the
terms of this Agreement.
3. AGREEMENT: In consideration of the mutual covenants
herein, the parties agree as follows:
4. DEFINITIONS: The following terms, whether in the
singular or in the plural, when used herein and initially
capitalized, shall have the meanings specified:
4.1 Agreement: This Los Angeles-Vernon
Eldorado/Victorville-Lugo Transmission Service
Agreement.
4.2 Authorized Representative: A person designated by a
Party pursuant to the provisions of Section 15
herein.
4.3 Dispatcher: An employee of a Party who has
responsibility for the operation of such Party's
electric system.
5.
EFFECTIVE DATE AND TERM:
5.1 This Agreement shall become effective when executed
by the Parties and shall terminate at 2400 hours on
December 31, 1994.
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6. DATES OF SERVICE: Upon the latter of the execution of
this Agreement or the effective date of Federal Energy
Regulatory Commission approval of the Edison-vernon Firm
Transmission Service Agreement for Vernon's Purchase from
the Salt River Project (Edison-Vernon FTS) or, if
requested by Vernon, the first day of the month following
the effective date of the Edison-Vernon FTS, Los Angeles
will provide Vernon with firm transmission service
pursuant to section 7 herein from 0000 hours on August 1,
1991 through 2400 hours on December 31, 1994.
7. TRANSMISSION SERVICE:
7.1
Subject to the provisions of Section 6 and
Sections 7.2 and 7.3 herein, Los Angeles will
provide to Vernon firm transmission service at the
levels shown on Appendix A between the point where
Los Angeles' McCullough-Eldorado Line connects to
the 500-kV bus at Edison's Eldorado Substation, and
the point on the Victorville-Lugo 500-kV
transmission line where the Los Angeles and Edison
electric systems interconnect.
7.2 In the event it becomes necessary to curtail
schedules to the Point of Delivery, the order of
curtailments shall be as follows:
(1)
The schedules of Third Parties for which
Los Angeles is providing nonfirm transmission
service.
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(2)
Los Angeles' nonfirm schedules.
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(3) Vernon's firm schedules will be curtailed
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pro rata with all firm schedules.
7.2.1 In the event continuity of service within
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Los Angeles' control area is being jeopardized
or any element of Los Angeles' power system is
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at risk of damage as determined by Los Angeles
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in its sole judgment, Los Angeles may curtail
the firm transmission service being provided
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herein to the extent necessary to avoid or
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eliminate such jeopardy.
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7.2.2 If Vernon has non-firm replacement energy on
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the transmission line during such a period of
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curtailment, then Vernon's non-firm
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replacement schedule will be curtailed
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pro rata with Los Angeles' other non-firm
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schedules.
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7.3 Vernon shall provide for the spinning reserve
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requirements for energy transmitted under this
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Agreement, and Los Angeles shall not be required to
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maintain such spinning reserve.
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7.4 As payment for the transmission service provided
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herein, Vernon shall pay Los Angeles the product of
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the transmission service provided hereunder pursuant
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to Section 7.1 and the rate of $1.34 per kilowatt-
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month.
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7.5 As payment for scheduling and dispatching expenses
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associated with the transmission of energy under
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this Agreement, Vernon shall pay Los Angeles $1,150
per month.
7.6 Transmission losses associated with the energy
scheduled pursuant to this Agreement shall be the
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responsibility of Vernon. The amount of such losses
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shall be deemed to be three (3.0) percent of the
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energy scheduled under this Agreement at Eldorado
Substation. Vernon shall pay Los Angeles for such
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losses at the rate of Los Angeles' monthly average
incremental cost for in-basin thermal generation.
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7.7 During those periods when Los Angeles implements its
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rights pursuant to Sections 7.2 and 10 herein and is
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required to impose curtailments on the delivery of
Vernon's on-peak firm energy, or if such deliveries
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are curtailed by SRP, and if desired by Vernon,
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Los Angeles shall make available to Vernon firm
capacity and associated energy at the point of
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delivery, in amounts equal to that portion of the
curtailed transmission service or curtailed SRP
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deliveries, contingent upon Los Angeles, in its sole
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judgment, determining that such energy is not
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required or needed to serve its own customers after
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fully committing all of its then available
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resources.
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8.
7.7.1 As payment for firm capacity made available
under section 7.7 herein, Vernon shall pay
Los Angeles an amount equal to $0.20 per
kilowatt-day.
7.7.2 As payment for associated energy provided
pursuant to section 7.7 herein, Vernon shall
pay Los Angeles an amount equal to the product
of the quantity of energy provided by
Los Angeles, in kilowatt-hours, and
Los Angeles' average on-peak incremental cost
of in-basin thermal generation increased by
20 percent.
BILLING AND PAYMENT:
8.1 On or before the twentieth day of each month,
Los Angeles shall render a monthly billing to Vernon
for transmission service provided hereunder during
the preceding month. Vernon shall pay such billing
within twenty (20) calendar days after receipt
thereof.
8.2 Amounts which are not paid in full when due may bear
a, late payment charge at the rate of one (1) percent
per month of the unpaid balance, prorated by days
from the date payment is due until payment is
received by Los Angeles. Such charge shall also
apply to any unpaid bill or portion thereof which is
disputed and thereafter determined to be proper.
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8.3 . Invoices shall be submitted by Los Angeles to Vernon
at the following address:
CITY OF VERNON
4305 Santa Fe Avenue
Vernon, California 90058
Attention: City Administrator/City Clerk
8.4 Vernon shall make payment to Los Angeles at the
following address:
DEPARTMENT OF WATER AND POWER
OF THE CITY OF LOS ANGELES
P.O. Box 111
Los Angeles, California 90051-0100
Attention: General Accounting Section
Beaudry Center - 1756
9.
LIABILITY:
9.1 Los Angeles shall not be liable to Vernon, and
Vernon hereby releases Los Angeles from and agrees
to indemnify Los Angeles against any claim, demand,
liability, loss or damage, whether direct, indirect,
or consequential, incurred by either Party or any
customer of either Party, which results from
interruption or curtailment of transmission service
under the Agreement.
9.2 Neither Party, its council members, directors,
officers, commissioners, or employees shall be
liable to the other Party for any loss, damage,
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claim, cost, charge, or expense of any kind or
nature incurred by the other Party, including
direct, indirect, or consequential loss, damage,
claim, cost, charge, or expense, resulting from the
negligence of a Party, its council members,
directors, officers, commissioners, employees, or
any person or entity whose negligence would be
imputed to such Party from the engineering, repair,
supervision, inspection, testing, protection,
operation, maintenance, replacement, reconstruction,
use, or ownership of such Party's electric system in
connection with the implementation of this
Agreement. Each Party releases the other Party, its
council members, directors, officers, commissioners,
or employees from any such liability. Neither Party
shall execute, levy, or otherwise enforce a judgment
for such liability, including recording or effecting
a judgment lien, against the other Party, its
council members, directors, officers, commissioners,
or employees.
9.3 A Party whose electric customer shall make a claim
or bring an action against the other Party for any
death, injury, loss, or damage arising out of
delivery of, or in connection with, electric service
to such customer, in connection with the
implementation of this Agreement, shall indemnify
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and hold harmless the other Party, its council
members, directors, officers, commissioners, or
employees from and against any liability for such
death, injury, loss, or damage.
9.4 The provisions of this section 9 shall be binding
upon the Parties to the full extent permitted by
law.
10. UNCONTROLLABLE FORCE:
Neither Party shall be considered to be in default in the
performance of any of its obligations under the Agreement
(other than obligations to make payment for invoices
rendered pursuant to this Agreement) when a failure of
performance shall be due to an uncontrollable force. The
term "uncontrollable force" shall mean any cause beyond
the control of the Party unable to perform such
obligations, including, but not limited to, failure of or
threat of failure of facilities, flood, earthquake,
storm, drought, fire, pestilence, lightning, and other
natural catastrophes, epidemic, war, riot, civil
disturbance, strike, labor dispute, labor or material
shortage, sabotage, government priorities, restraint by
court order or public authority, and action or inaction
by, or inability to obtain the necessary authorizations
or approvals from any governmental agency or authority,
which by exercise of due diligence such Party could not
reasonably have been expected to avoid or overcome.
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Nothing contained in this section 9 shall be construed as
requiring either Party to settle any strike or labor
dispute in which it may be involved. Any Party rendered
unable to fulfill any obligation under this Agreement by
reason of an uncontrollable force shall give prompt
notice of such fact to the other Party, and shall
exercise due diligence to remove such inability with all
reasonable dispatch.
11. SUCCESSORS AND ASSIGNS:
This Agreement shall be binding upon the respective
successors and assigns of the Parties. Neither Party
shall voluntarily assign this Agreement nor any part
thereof without prior written consent of the other Party
provided, however, that such consent shall not be
unreasonably withheld. In connection with the sale or
merger of a substantial portion of a Party's properties,
such written consent shall not be required.
12. EFFECT OF SECTION HEADINGS:
section headings appearing in this Agreement are inserted
for convenience only and shall not be construed as
interpretations of text.
13. NO DEDICATION OF FACILITIES:
Any undertaking by one Party to the other Party under any
provision of this Agreement shall not constitute the
dedication of the system or any portion thereof of either
Party to the public or to the other Party.
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14. NO THIRD-PARTY RIGHTS:
The Parties do not intend to create rights in or to grant
remedies to any third party as a beneficiary of this
Agreement or of any duty, covenant, obligation, or
undertaking established herein.
15. AUTHORIZED REPRESENTATIVES:
15.1 As a means of dealing in a prompt and orderly manner
with various technical and operating matters in
connection with this Agreement, within thirty (30)
days from the date of execution, Vernon's Executive
Director of Light & Power and LOS Angeles' Assistant
General Manager - Power shall designate a
representative who is authorized to act on each
Party's behalf with respect to those matters
contained herein.
15.2 The Authorized Representative may be changed by
giving written notice to the other Party at the
appropriate address as listed in section 16.1
herein.
15.3 Except as specifically provided herein, the
Authorized Representatives shall have no authority
to modify any of the provisions of this Agreement.
16. NOTICES:
16.1 Except as otherwise provided in this Agreement, any
notice given or made in connection herewith shall be
in writing and shall be deemed properly served,
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given or made if delivered in person, or sent by
registered or certified mail, postage prepaid, to
the persons specified below:
16.1.1 Department of Water and Power
of the city of Los Angeles
c/o Assistant General Manager - Power
P. O. Box 111, Room 1155
Los Angeles, California 90051-0100
16.1.2 City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
Attention city Administrator/City Clerk
16.2 Either Party may, by written notice to the other
Party, change the designation or address of the
person so specified as the one to receive notices
pursuant to this Agreement.
16.3 This section 16 does not apply to notices and
requests of a routine character in connection with
delivery, or receipt of energy," or in connection
with operation of facilities. Such notices and
requests shall be given in such manner as the
Authorized Representatives, from time to time, shall
arrange.
17. SEVERABILITY:
In the event that any term, covenant, or condition of
this Agreement, or the application of such term,
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covenant, or condition, shall be held invalid as to any
person or circumstance by any court having jurisdiction,
all other terms, covenants, or conditions of this
Agreement and their application shall not be affected
thereby, but shall remain in force and effect unless a
court holds that the provisions are not separable from
all other provisions of this Agreement.
18. ENTIRE AGREEMENT:
It is understood and agreed that all representations and
agreements between the Parties covering the subject
matter hereof are expressed herein and that no other
representation of any kind or nature, whether made by the
directors, employees, or agents of the Parties, shall be
binding unless made in writing and executed by the
Parties.
19. OTHER AGREEMENTS:
No provision of this Agreement shall preclude any Party
from entering into other agreements between the Parties
or with third parties.
20. WAIVERS:
No provision of this Agreement shall be considered waived
by any Party except when such waiver is given in writing.
The failure of any Party to insist in anyone or more
instances upon strict performance of any of the
provisions of this Agreement, or to take advantage of any
of its rights hereunder, shall not be construed as a
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waiver of any such provisions or the relinquishment of
any such rights for the future, but the same shall
continue and remain in full force and effect.
21. GOVERNING LAW:
This Agreement shall be interpreted, governed by, and
construed under the laws of the state of California.
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22. SIGNATURE CLAUSE: The signatories hereto represent that
they have been appropriately authorized to enter into
this Los Angeles-Vernon Eldorado/Victorville-Lugo
Transmission Service Agreement on behalf of the Party for
whom they sign.
IN WITNESS WHEREOF, this Agreement is hereby
executed as of the 10th day of
, 1991.
June
DEPARTMENT OF WATER AND POWER
OF THE CITY OF LOS ANGELES
By
BOARD
OF THE
APPROVED AS TO FORM
BY~
DA 1T I DB. BREARLEY
" ~ :~';'.~~TTOR%Y
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CITY OF VERNON
a Municipal corporation
B~f7~~LL~A/Z1)
, Leonis C. Malbu g
Title Mayor .
A?)ST: /. ~(/?71
) /Ij;(~A'!- / // (,?-{ 4v /
Bruce V. Malkenhorst
City Clerk
APPROVED AS TO FORM AND l.EGAUTY
JAMES K. HAHN OTY ATIOlNEY
or
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2
:3
4
JANUARY
5 FEBRUARY
MARCH
6 APRIL
MAY
7 JUNE
JULY
8 AUGUST
SEPTEMBER
9 OCTOBER
NOVEMBER
10 DECEMBER
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
23
APPENDIX A
1991 1992 1993 1994
(MEGAWATTS) (MEGAWATTS) (MEGAWATTS) (MEGAWATTS)
17 7 20
17 7 20
17 7 20
17 7 20
l5 7 20
15 7 20
15 7 20
17 15 7 20
17 15 7 20
17 15 7 20
17 15 7 20
17 15 7 20
-16-
RESOLUTION NO.
91 373
BE IT RESOLVED that the Los Angeles-Vernon Eldorado/
Victorville-Lugo Transmission Service Agreement, DWP No. 10970
(Agreement) by and between the Department of Water and Power of
the City of Los Angeles (Los Angeles) and the City of Vernon
(Vernon), which provides for the sale of transmission service by
Los Angeles to Vernon, now on file with the Secretary of the
Board and approved as to form and legality by the City Attorney,
be and the same is hereby approved; and
BE IT FURTHER RESOLVED that the President or Vice
President of the Board, or the General Manager and Chief Engineer
or the Assistant General Manager - Power of the Department, and
the Secretary, Assistant secretary or the Acting Secretary of the
Board be and they are hereby authorized and directed to execute
said Agreement for and on behalf of Los Angeles.
I HEREBY CERTIFY that the foregoing is a full, true and
correct copy of a resolution adopted by the Board of Water and
Power Commissioners of the city of Los Angeles at its meeting
held JUN 2 7 1991
~:e.p,,~
Secretary