Resolution No. 6309
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RESOLUTION NO. 6309
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LETTER AGREEMENT, CONTRACT NO. DE-MS79-
93BP94106, PROVIDING FOR A SEASONAL EXCHANGE OF
CAPACITY AND ASSOCIATED ENERGY WITH BONNEVILLE
POWER ADMINISTRATION ("BPA")
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WHEREAS, the City of Vernon desires to purchase or
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exchange energy for capacity and associated energy during the
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month of September 1993; and
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WHEREAS, BPA desires to sell or exchange capacity and
associated energy to Vernon; and
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WHEREAS, the City of Vernon may return energy to BPA
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during the months of November and December 1993, in payment for
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said capacity and associated energy received during September
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1993.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the city of Vernon
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does hereby find and determine that the recitals contained
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hereinabove are true and correct.
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SECTION 2: The City Council of the city of Vernon hereby
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approves the Letter Agreement, Contract No. DE-MS79-93BP94106, for
the period September 1, 1993 through December 31, 1993, a copy of
which has been presented to the city Council concurrently with
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this resolution, and the City Council hereby orders said Letter
Agreement to be received and filed by the City Clerk.
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SECTION 3: The City Council of the City of Vernon hereby
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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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ATTA
BRUCE V.
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APPROVED AND ADOPTED this
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MALKENHORST, city Clerk
17th day of August, 1993.
~"A:~:-L~fYor Pro
Tem
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 6309, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
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on Tuesday, August 17. 1993, and thereafter was duly signed by the
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Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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Department of Energy
Bonneville Power Administration
P.O. Box 491
Vancouver, Washington 98666-0491
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AUG 1 6 '~91
In reply refer to:
PSC
Contract No. DE-MS79-93BP94106
Mr. Jorge Somoano
City of Vernon
Power and Light Department
4305 Santa Fe Avenue
Vernon, CA 90058
Dear Mr. Somoano:
The purpose of this letter agreement (Agreement) is to establish the terms and conditions
whereby the City of Vernon (Vernon) and the Bonneville Power Administration (BPA)
(herein collectively referred to as "Parties" and individually as "Party"), enter into a
capacity sale.
1. Term
The term of this Agreement is from 0001 hours on September 1, 1993, and it shall
terminate at 2400 hours on December 31,1993. All obligations shall remain in effect
until satisfied except as provided in Section 9 of this Agreement.
2. Point of Delivery
The Point of Delivery (POD) for Vernon to receive firm capacity and associated energy
and for BPA to receive returned energy shall be the Nevada-Oregon Border (NaB) or
other PODs as mutually agreed.
3. Supply of Capacity and Associated Energy
During September, BPA will make available peaking capacity in the amount of
12 megawatts (MW) demand. Vernon may schedule peaking energy associated with
the capacity up to 12 hours per day, 60 hours per week.
4. Return of Energy
Energy scheduled for return to BP A by Vernon shall be subject to the following:
a. Vernon will return the amount of energy delivered under Section 3, during the
period of November 1 through December 31,1993.
b. All return energy shall be delivered at the POD.
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c. Unless otherwise mutually agreed by the Parties, the maximum rate of return
on any hour shall be 30 MW.
d. BP A may defer receiving return energy from Vernon if BP A experiences
minimum flow conditions. Deliveries reduced under this paragraph shall be
rescheduled at times as agreed by the Parties.
e. If V ernon is delivering return energy during hours when BP A is marketing
nonfirm energy at the Standard nonfirm energy rate under BPA's NF-91 or
successor NF-93 Rate Schedule, and such rate is 20 mills per kilowatthour or
less, Vernon shall elect to either purchase or defer an amount of energy equal to
Vernon's return energy schedule. Such purchases shall be made at the time of
preschedule at the nonfirm rate. If Vernon chooses to defer the energy,
deliveries of such energy shall be rescheduled at times and rates as agreed to by
the Parties.
f. If by December 31,1993, Vernon has been unable to deliver all return energy,
which Vernon is obligated to return under this Agreement for reasons beyond
Vernon's control, or BP A has been unable to receive all return energy for reasons
beyond BPA's control, then Vernon shall begin deliveries at 2400 hours
January 1, 1994, of 20 MW on each hour during Vernon's off-peak hours only
until the balance of energy to be delivered is zero. Vernon's off-peak hours are
defined as the first six and last two hours of the day during Monday-Saturdays
and all hours on Sundays.
g. All return energy ,will be prescheduled pursuant to Section 6 of this Agreement.
5. Schedulini
a. During the month of September 1 through September 30, 1993, for every normal
workday observed by both Vernon and BPA, Vernon shall provide BPA an hourly
schedule for the next day or days of the energy to be delivered.
b. During the months of November 1 through December 31,1993, for every normal
workday observed by both Vernon and BP A, Vernon shall provide BP A an hourly
schedule for the next day or days of the energy to be returned.
c. Schedules shall be submitted by 0930 hours on each workday for the following
day or days. Changes to scheduled deliveries and/or energy returns under this
Agreement may be made only by mutual consent of both Parties, and both
Parties endeavor to keep such changes to a minimum over the term of this
Agreement.
6. Interruption Ri~hts
a. BPA's obligation to make available capacity and associated energy provided for
in Section 3 ,is a firm obligation, contingent only upon uncontrollable forces and
upon BPA's ability to first serve its own firm customer load after fully
committing all of its then available resources.
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b. The Parties agree to exercise reasonable diligence in maintaining their portions
of the transmission system required to enable schedules under this Agreement.
This may include the need to take facilities out-of-service in order to perform
necessary maintenance consistent with prudent utility practice. The Parties
recognize that schedules under this Agreement may have to be reduced during
such maintenance outages. Furthermore, emergency conditions on the system of
either Party or on the system of a third party could also preclude or inhibit
transactions under this Agreement.
c. In the event of either an emergency outage or a necessary maintenance outage
which requires schedule curtailments, the Parties agree that transactions under
this Agreement can be curtailed according to the contract provisions and
accepted utility practices. The Parties shall make all reasonable effort to
minimize outage durations and to schedule the outages at mutually agreeable
times. In the event it becomes necessary for BPA to curtail service to Vernon,
BPA shall use its best efforts to notify Vernon as far in advance of the
curtailment as possible.
7. Capacity Charg-e
For capacity provided in September 1993 Vernon will pay BP A
$3.00 per kilowattmonth times the maximum demand as given in Section 3.
8. Billin2iPayment
BPA shall render a monthly bill to Vernon pursuant to Section 5. Such power bill
shall reference this contract number and shall be sent to:
City of Vernon
Director of Light and Power Department
4305 Santa Fe Avenue
Vernon, CA 90058
Vernon shall pay BPA by the close of business on the 20th day after the date of the
bill. Bills for amount due BPA of $50,000 or more must be paid by direct wire
transfer. Bills for amount due BPA under $50,000 may be paid by direct wire transfer
or mailed to:
Bonneville Power Administration
P.O. Box 6040
Portland, OR 97228-6040
The procedures to be followed in making direct wire transfer will be provided by the
Office of Financial Management and updated as necessary.
Bills not paid in full on or before close of business on the due date shall be subject to a
penalty charge of $25. In addition, an interest charge of one-twentieth percent
(0.05 percent) shall be applied each day to the sum of the unpaid amount and the
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penalty charge. This interest charge shall be assessed on a daily basis until such time
as the unpaid amount and penalty charges are paid in full. Other provisions related
to payment of bills specified in the current General Rate Schedule Provisions shall
apply.
9. Nullification
a. Vernon may terminate this Agreement prior to the effective date if Southern
California Edison does not approve this resource as a Special Condition 12
resource in order for Vernon to receive capacity credit.
b. Vernon may also terminate this Agreement prior to the effective date if Vernon
believes the DC Line transmission service is not available or sufficiently reliable.
c. To terminate this Agreement, Vernon must provide written notice to the
Director, Division of Power Supply, prior to August 27,1993; however, BPA may
extend the above date to August 31,1993.
If the above accurately reflects your understanding of our agreement, please indicate your
approval by signing three originals of this Agreement and returning two originals to BP A
The remaining original is for your files.
Sincerely,
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Mark W. Maher
Director, Division of Power Supply
Accepted:
CITY OF VERNON
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By ~~C'7~'
. Leonis C. Mal urg
.Title Mayor
Dale O>:3'~-~ ~
ATTEST: ~ ~ ... ~. .~
Bruce V. Malkenhorst, City Clerk
rAPPROVED AS TO FORM'
\BY~...... Pn
DAVID D. mm....rr,i; r <7
CITY ATTO,:j;.,;:
lUG 20 '93