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Resolution No. 6245 . 1 RESOLUTION NO. 6245 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT NO. 1 TO THE LOS ANGELES-VERNON ELDORADO-VICTORVILLEjLUGO TRANSMISSION SERVICE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND THE DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES 4 5 6 7 8 WHEREAS, the City Council of the city of Vernon adopted 9 Resolution No. 5934 on June 4, 1991, approving and authorizing the 10 II 12 13 execution of a Los Angeles-Vernon EldoradojVictorville-Lugo Transmission service Agreement (DWP No. 10970), which provided for the transportation of capacity and associated energy purchased 14 from the Salt River Project Agricultural Improvement and Power District ("SRp"); and 15 WHEREAS, the City Council of the City of Vernon is adopting Resolution No. 6244 concurrently with this resolution to 16 17 approve an Amendment No. 1 to the Firm Power Sale Agreement with l8 SRP which provides for an increase in its purchase of capacity and associated energy from SRP; and 19 20 WHEREAS, the Department of Water and Power of the City of 21 Los Angeles ("LADWP") has surplus transmission capacity available 22 and is willing to provide said transmission service to Vernon; and 23 WHEREAS, the City of Vernon desires to enter into an 24 amendment to said Transmission Service Agreement with LADWP for 25 26 27 the transportation of additional capacity and associated energy purchased from SRP. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 28 CITY OF VERNON AS FOLLOWS: , ' ~ 1 SECTION 1: The City Council of the City of Vernon does 2 hereby find and determine that the recitals contained hereinabove 3 are true and correct. 4 SECTION 2: The City Council of the City of Vernon hereby 5 6 approves the Amendment No. 1 to the Los Angeles-Vernon Eldorado- VictorvillejLugo Transmission Service Agreement, a copy of which 7 has been presented to the City Council concurrently with this 8 resolution, and the City Council hereby orders said Amendment to 9 be received and filed by the City Clerk. 10 II 12 l3 SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and City Clerk to execute said Amendment for, and on behalf of, the City of Vernon. SECTION 4: The city Clerk of the City of Vernon shall 14 certify to the passage of this resolution and thereupon and 15 thereafter the same shall be in full force and effect. l6 l7 APPROVED AND ADOPTED this 27th day of April, 1993. ~~~~' 18 19 ATTEST: /; -4~ :? ~///7~ ~ BRUCE V. MALKENHORST, city Clerk 20 21 22 23 24 25 26 27 28 -2- , . ~ 1 2 3 4 5 6 7 8 9 10 II STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss I, BRUCE V. MALKENHORST, city Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 6245, was duly adopted by the City Council of the City of Vernon at a regular meeting of the city Council duly held on Tuesday, April 27, 1993, and thereafter was duly signed by the Mayor of the City of Vernon. 12 (SEAL) 13 14 15 l6 17 l8 19 20 21 22 23 24 25 26 27 28 -3- ,. -" - " . 1 2 3 4 5 6 7 8 9 10 II l2 13 14 15 16 17 l8 19 20 21 22 23 24 25 26 27 28 ~~d? .~..7 IDJM~~~~ffi1 ~~ :. @~~@~~~~ AMENDMENT NO. 1 TO THE 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 AMENDMENT NO. 1 DWP No. 10970 " , 1 AMENDMENT NO. 1 TO THE 2 LOS ANGELES-VERNON ELDORADO/VICTORVILLE-LUGO 3 TRANSMISSION SERVICE AGREEMENT 4 Table of Contents 5 7 8 lO II l2 13 l4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6 SECTION 9 1. 2. 3. 4. 5. 5.1 5.2 5.3 5.4 6. 7. 8. TITLE PARTIES. e.. . . . . . . . ". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e.. RECITALS. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . AGREEMENT e. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . e.. . . . . . . . . . EFFECTIVE DATE OF AMENDMENT....................... AMENDMENTS TO THE AC;~~~~~~. .. . . . . . . . . . . . . . . . . . . . . Amendments to Section 4, DEFINITIONS.............. Amendments to Subsection 7.1 TRANSMISSION SERVICE. Amendments to Subsection 7.6 TRANSMISSION SERVICE. Amendments to Subsection 7.7 TRANSMISSION SERVICE. REVISION OF APPENDIX A............................ OTHER PROVISIONS NOT AFFECTED..................... SIGNATURE CLAUSE........"........................... APPENDIX A.................................. . . . . . . . - i - PAGE 1 1 2 2 2 2 3 3 4 5 5 6 A1 .' J; lO II l2 13 l4 15 16 17 l8 19 20 21 22 23 24 25 26 27 28 1 2 3 4 1. 5 6 7 8 9 AMENDMENT NO. 1 TO THE LOS ANGELES-VERNON ELDORADO/VICTORVILLE-LUGO TRANSMISSION SERVICE AGREEMENT PARTIES: The Parties to this Amendment No. 1 (Amendment) to the Los Angeles-Vernon Eldorado/Victorville-Lugo Transmission service Agreement (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 city Charter and 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 "Parties". 2. RECITALS: This Amendment is-made with reference to the following facts, among others: 2.1 Vernon anticipates amending its Power Sales Agreement with Salt River Project (SRP) to increase its purchase of capacity and associated energy from SRP as described in Appendix A, attached hereto and made'a part hereof. 2.2 Vernon desires to purchase firm transmission service from Los Angeles from the Point of Receipt to the Point of Delivery, for the delivery of Vernon's capacity and energy purchased from SRP. 2.3 Los Angeles has determined that it has surplus transmission capacity available between the point of Receipt and Point of Delivery, and is willing to provide the requested transmission service thereon, pursuant to, - 1 - 1 2 3 4 5 6 7 8 9 10 II l2 l3 l4 l5 16 l7 18 19 20 2l 22 23 24 25 26 27 28 3. 4. 5. and for .the terms.of the Agreement and this Amendment. 2.4 Vernon intends to commence its purchases from SRP under the amended Power Sales Agreement following FERC's approval of Vernon's amended Transmission service Agreement with the Southern California Edison Company (Edison) and the execution of this Amendment. AGREEMENT: In consideration of the mutual covenants contained herein, the Parties agree as herein provided: EFFECTIVE DATE OF AMENDMENT: This Amendment shall become effective on the first day of the month following: (i) execution of this Amendment by both Parties; (ii) the effective date of Vern~n's agreement with.Edison for the required transmission service; and (iii) written notice from Vernon to Los Angeles pursuant to Subsection 16.3 of the Agreement, that Vernon desires to commence purchases from SRP under its amended Power Sales Agreement. AMENDMENTS TO THE AGREEMENT: The following terms of the Agreement shall be either added or revised as specified: 5.1 The following subsections shall be added to section 4, DEFINITIONS of the Agreement: "4.4 Point of Delivery: Los Angeles' point of interconnection with Edison at the mid-point of the Victorville-Lugo Transmission Line." "4.5. Point of Receipt: Los Angeles' point of interconnection with Edison at Edison's Eldorado Substation." "4.6 Third Party: Any party not a Party to this - 2 - . , 1 2 3 4 5 6 7 8 9 lO 11 l2 l3 l4 15 16 17 l8 19 20 21 22 23 24 25 26 27 28 Agreement, as such Agreement may be amended from time to time. It 5.2 Subsection 7.1 of Section 7, TRANSMISSION SERVICE, of the Agreement shall be deleted in its entirety and the following substituted therefor: "7.1 Subject to the provisions of section 6 and Subsections 7.2 and 7.3 herein, Los Angeles will provide to Vernon firm unidirectional transmission service at the levels shown on Appendix A hereto from the Point of Receipt to the Point of Delivery." 5.3 Subsection 7.6 of section 7, TRANSMISSION SERVICE, of the Agreement shall be deleted in its entirety and the following substituted therefor: "7.6 Transmission losses associated with the energy scheduled pursuant to this Agreement shall be the responsibility of Vernon. The amount of such losses shall be deemed to be three (3.0) percent of the energy scheduled under this Agreement at the Point of Receipt. Vernon shall pay Los Angeles for such losses at the rate of Los Angeles' monthly average incremental cost of in-basin thermal generation." 5.4 Subsection 7.7 of section 7, TRANSMISSION SERVICE, of the Agreement shall be deleted in its entirety and the following substituted therefor: "7.7 In the event Los Angeles deems it necessary to invoke its rights pursuant to Subsection 7.2 and Section 10 herein, and curtails on-peak energy deliveries of Vernon's purchases under the SRP Power Sales - 3 - 1 2 3 4 5 6 7 8 9 10 II l2 13 l4 15 16 l7 l8 19 20 21 22 23 6. 24 25 26 7. 27 28 Agreement, as such may be amended from time to time, Los Angeles shall make available to Vernon firm capacity and schedple associated energy at the Point of Delivery as replacement for the curtailed amounts of such SRP purchases subject to the following conditions: (i) that, in the sole judgment of Los Angeles, such replacement capacity and associated energy is avqilable on its syst~m at the time of such curtailment and is not required to serve its own customers after fully committing all of its then- available resources; and (ii) that Vernon's system , operator requests Los Angeles to make available such replacement capacity and associated energy. 7.7.1 Vernon shall pay Los Angeles for firm capacity made available pursuant to this Subsection 7.7 at the rate of $0.20 per kilowatt-day. 7.7.2 Vernon shall pay Los Angeles for the associated energy scheduled and made available pursuant to this Subsection 7.7 at an equal rate to 120 percent of Los Angeles' average on-peak incremental cost of its in- basin 'thermal generation.1I REVISION OF APPENDIX A: Appendix A to the Agreement is hereby revised with respect to the years 1993 and 1994 and the revised Appendix A is attached hereto and made a part hereof. OTHER PROVISIONS NOT AFFECTED: Except as expressly provided herein, the remaining provisions of the Agreement shall continue to be in full force and effect. - 4 - . . 1 2 3 4 5 6 7 8 9 10 II l2 l3 14 l5 16 l7 l8 19 20 21 22 23 24 25 26 27 28 8. SIGNATURE CLAUSE: The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No. 1 to the Los Angeles-Vernon Eldorado/victorville-Lugo Transmission Service Agreement, DWP No. 10970, on behalf of the Party for whom they sign. This Amendment is hereby executed as of the 31st day of August , 1993. DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES ::x=- ,.- '-- ....-\ ::c o :::0 N rn c SSIONERS ~ :::0 rn en ):::2 APPROVED AS TO FORM AND lEGALITY JAMES K. HAHN CITY ATTORNEY By ~L}41W BY . 'YUJ1'#/ I . ERRINTSO~ Oeputy City Attorney By '- CITY OF VERNON BY~~lJ4.~ . -----enis C ~ Malburg Y Title Mavor /~ ATTESTY /c)~ Bruce V. Malkenhorst Title: city Clerk APPROVED AS TO FORM BY '\) ,\l" ~ A ~ i 9~' DAVIDB. ER;~'t CITY ATTORUEY""l MAY 1 8 1993 - 5 - , ...... ' 1 2 3 4 5 6 7 JANUARY 8 FEBRUARY MARCH 9 APRIL lO. MAY II JUNE l2 JULY 13 AUGUST l4 SEPTEMBER l5 OCTOBER 16 NOVEMBER 17 DECEMBER 18 19 20 21 22 23 24 25 26 27 28 APPENDIX A LEVEL OF TRANSMISSION SERVICE MADE AVAILABLE BY LOS ANGELES TO VERNON FROM ELDORADO TO VICTORVILLE1LUGO TIE POINT 1991 (MEGAWATTS ) 17 17 17 17 17 1.992 1993 1994 (MEGAWATTS ) (MEGAWATTS) (MEGAWATTS ) 17 7 40 17 7 40 17 7 40 17 7 40 15 7 40 15 7 40 15 7 40 15 7 40 15 17 40 15 17 40 15 17 40 15 17 40 - A1 - .. ," . , .r-, ,I '\ ~ ) 1 2 3 4 5 .6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 EXECUTION COpy 26 VERNON2 . JVT ) ~' . AMENDMENT NO. 1 TO THE FIRM POWER SALE AGREEMENT BETWEEN SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT AND THE CITY OF VERNON 'i .,~\ } -, -9 ~j-~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ) j' 26 1. 25 'AMENDMENT NO. 1 TO THE FIRM POWER SALE AGREEMENT BETWEEN SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT AND THE CITY OF VERNON PARTIES: The parties to this Amendment. No. 1 are Salt River project Agricultural Improvement and power District, an agricultural improvement district organized under the laws of the state of Arizona ("SRP") and The city of Vernon, a municipal corporation of the state of California, ("Vernon"); referred to individually as "Party" and collectively as "parties." 2. RECITALS: 2.1 SRP and Vernon executed the Firm power Sale Agreement between the Parties as of June 13, 1991. 2.2 The Parties desire by this Amendment No. 1 to increase the amount of Firm Capacity and Associated Energy to be made 'available by SRP. 3. AGREEMENT: In consideration of the promises and mutual covenants contained herein, the Parties agree as follows: . ..; . " .. ..~') " 1 " '\ -"",,1 1 2 3 4 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 4. 6 7 8 9 EFFECTIVE DATE AND TERM: This Amendment No. 1 shall be effective when it has been executed by both Parties and Vernon provides written notice to SRP that Vernon has acquired the additional transmission service necessary to take delivery of the increased Firm Capaci ty and Associated Energy. The obligations with respect to the increased amounts of Firm Capacity and Associated Energy shall become effective as of the first day of the month following the date of such notice from Vernon. 5. REVISION OF ATTACHMENT A: Attachment A to the Firm Power Sale Agreement is hereby revised with respect to the years 1993 and 1994 and the revised Attachment A is attached hereto and hereby made a part hereof. 6. OTHER PROVISIONS NOT AFFECTED: Except. as expressly provided in this Amendment NO.1, the Firm Power Sale Agreement dated June 13, 1991, shall remain in full force and effect. 7 SIGNATURE CLAUSE: The signatories hereto represent that they have been appropriately authorized to enter into this Amendment No.1, on behalf of the Party for whom they sign. This Amendment No. 1 is hereby executed as of the ~ g-f" day of rnp.l 1993. . O,.t- '~. ..,~",--:. ." ~ ~, . --.." . \ I 1 ATTACHMENT A 2 3 4 1993 1994 (Megawatts) (Megawatts) 5 Max Min Max Min 6 7 8 JAN 7 0 40 35 FEB 7 0 40 35 ,9 . MAR 7 0 40 35 APR 7 0 40 35 MAY. 7 7 4'0 35 JUN 7 7 40 35" JUL 7 7 40 35 AUG 7 7 40 35 SEP ,17 17 40 35 '..OCT' 1.7 17 -, 40 35 NOV 17 10 40 35 DEC 17 10 40 35 14' 15 16 17 18 19 20' 21 REVISED 22 23 24 25 ) 26 .. . .. .''- .-. " i --~... j --~ ) '- j - 1 SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT By //2J~ Mark B. Bonsall I Associate General Manager Financial, Information & Planning' Services 2 3 DATE 4 5 6 ATTEST AND COUNTERSIGN: 7 I;J it",:"! P rlfuI1j, Secretary 8 9 CITY OF VERNON 10 11 B;J..~~~~~ . ~/4~P/ ~ 'i :-re~!u'y 12 13 14 15 16 ',APPROVED AS TO FORM IBY,~\ \l). f \SO ~ n A_ 0 () / DAVID B. BR~~ CITY ATTORREY .MAY 1 8 1993 17 18 19 20 21 22 23 .24 25 26 f