Resolution No. 5988
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RBSOLUTIORRO. 5988
A RESOLUTION OF THE'CIT~;,'COUNCILOF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
A CALIFORNIA-OREGONTRANSMISSrON PROJECT INTERIM
PARTIOIPATION AGREEMENT WHIOH PROVIDES FOR
OWNERSHIP INTERESTS, ENTITLEMENTS AND ATTENDANT
COST SHARING PERCENTAGE RESPONSIBILITIES IN THE
PROJECT BY' THE .PROJECT PARTICIPANTS
WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 5156 on December 18, 1984 approving and authorizing
the execution of a Memorandum of Understanding (MOU) dated December
19, 1984, and a Supplemental Letter Agreement for the purpose of
developing the California-Oregon Transmission Project (COTP); and
WHEREAS, the City Council of the Ci ty of Vernon adopted
Resolution No. 5193 on June 27, 1985, approving and authorizing the
execution of an Interim Cost Sharing Agreement effective April 1,
1985, which provided for the sharing of certain project costs
incurred prior to the negotiation and execution of a Project
Development Agreement; and
WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 5231 on December 3, 1985, approving and authorizing
the execution of a Project Development Agreement effective September
30, 1985, which provided for the participants to share the cost of
the project development work and setting forth the rights and
obligations of participants in connection with such work and costs;
and
WHEREAS, the City council of the City of Vernon adopted
Resolution No. 5256 on March 4, 1986, approving and authorizing the
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WHEREAS, project development work has been completed, the
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final report of, the proj ect Manager required ,..,. by, the Proj ect
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O,evelopment,Ag;reement has been received ,by .,the"..,~t.icipants,j
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additional.."costs' ,..in design".,. planning,. engineering;.. , ,land acquisition,
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and construction of the COTP have been and are being; incurred; and
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WHEREAS, the Transmission Aqency of Northern California
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(TANC) acted as the lead agency for the environmental assessment of
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the COTP and by Resolution 88-1 certified the Final Environmental
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Impact Statement/Report with the necessary findings as required by
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the California Environmental Quality Act (CEQA); and
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WHEREAS, TANC began construction of the COTP in 1989 by
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issuing construction bonds subject to later reimbursement by those
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agencies which elect to participate in the COTP; and
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WHEREAS, the CEQA Guidelines section 15378 defines the term
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"Project" to mean the whole of an action and not to mean "each
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separate governmental approval," and the city council's approval of
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the Interim Participation Agreement will not constitute and
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authorization of the construction of a project which is already
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underway and which project will be constructed regardless of that
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approval; and
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WHEREAS, the California Public utilities Commission (CPUC)
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on April 24, 1991, denied applications for certificates of Public
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Convenience and Necessity (Certificates) of Pacific Gas & Electric
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Company, Southern California Edison Company, and San Diego Gas &
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Electric Company, for participation in the CQTP, and by its Decision
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91-07-075 denied the rehearings requested by the Investor-OWned
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utilities concerning the certificates; and
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WHEREAS, the participants in the COTP are prepared to pay
for completion and to own and to operate the project; and
WHEREAS, the City of Vernon initially has a right to a
1.8119% share of the project (approximately 27 MW) with costs on
completion estimated at $8 million, of which approximately $4.3
million will be due in October 1991; and
WHEREAS, the ci ty of Vernon desires to enter into an
Interim Participation Agreement with the other COTP participants to
secure its ownership interests and entitlements in the project and
provide for the Sharing of costs in accordance with such
entitlements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are
true and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the California-Oregon Transmission Project Interim
Participation 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.
SECTION 3: The City Council of the City of Vernon 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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,certify to" the .passage
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SECTION 4: The ci ty Clerk of the ci ty of Vernon shall
t.he:reafterthe", same >shall be in fullforc,e ccand effect.
of this res,olution
and thereupon and
Ai"rEri
BRUCE v.
APPROVED> AND ADOPTED this 23rd day of September" 1991.
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MALKENHORST, CJ.ty Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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'3 BRUCEV.'.JMALKENHORST, city C1:erk of,the City of Vernon,
4 certify that ; ,the foregoing Resolution, being Resolution
5 No. 5988, was duly adopted by the City Council of the city of Vernon
6 at an ,adjourned regular meeting of the city Council duly held on
7 Monday, September 23, 1991, and thereafter was duly signed by the
8 Mayor of the City of Vernon.
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BR~~T' city Clerk
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