Resolution No. 6365
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RESOLUTION NO. 6365
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF AN AMENDMENT TO THE POWER SALES AGREEMENT
(VERNON CONTRACT NO. 93-10-03) BY AND BETWEEN
SAN DIEGO GAS & ELECTRIC COMPANY AND THE CITY OF
VERNON
WHEREAS, the City of Vernon receives power from the
Southern California Edison Company pursuant to tariff schedules
approved by the Federal Energy Regulatory Commission ("FERC"); and
WHEREAS, FERC approved tariff schedules provide at
Special Condition 12 that Vernon may purchase power from other
suppliers in accordance with certain prescribed notice provisions;
and
WHEREAS, SDG&E is engaged in the generation,
transmission, sale and purchase of electric power and energy; and
WHEREAS, the City of Vernon has provided notice to Edison
that it intends to purchase capacity and associated energy as a
nonintegrated resource; and
WHEREAS, the City of Vernon believes that. the SDG&E is
able to meet its needs and concerns in a prudent and reliable
manner; and
WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 6332 on October 20, 1993, approving and authorizing
the execution of a Power Sales Agreement with San Diego Gas &
Electric Company; and
WHEREAS, the City council of the City of Vernon and SDG&E
wish to enter into an Amendment to the original Power Sales
Agreement dated October 27, 1993, to alleviate the concerns of the
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staff of the Federal Energy Regulatory Commission respecting some
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components of the Power Sales Agreement.
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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: The City council of the City of Vernon does
hereby find and determine that the recitals contained hereinabove
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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 Amendment to the Power Sales Agreement (Vernon
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Contract No. 93-10-03), a copy of which has been presented to the
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City Council concurrently with this resolution, and the City
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Council hereby orders said Amendment to be received and filed by
the City Clerk.
SECTION 3: The City Council of the City of Vernon hereby
15 authorizes the Mayor and City Clerk to execute said Amendment for,
16 and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
18 certify to the passage of this resolution and thereupon and
19 thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 7th day of December 1993.
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ATTE~.
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BRUCE V.
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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. 6365, was duly adopted by the city Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, December 7. 1993, and thereafter
was duly signed by
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the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
(SEAL)
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AMENDMENT TO THE POWER SALES AGREEMENT
BETWEEN
SAN DIEGO GAS & ELECTRIC AND CITY OF VERNON
1.
PARTIES: The Parties of this Amendment to the Power Sales Agreement dated October
27, 1993 are San Diego Gas & Electric Company (San Diego), a California corporation
and City of Vernon (Vernon), a municipal corporation of the State of California,
hereinafter sometimes referred to individually as "Party" and collectively as "Parties".
2.
AGREEMENT: The Parties agree as follows:
3.
AMENDMENT TO THE POWER SALES AGREEMENT:
3.1 Section 7.3 of the Power Sales Agreement shall be deleted in its entirety and a new
Section 7.3 shall be added as follows:
7.3 If curtailments of capacity and associated energy are caused by San Diego's
inability to deliver such capacity and associated energy to Vernon at Sylmar
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during any period of the month; 1) a pro rata reduction in the monthly demand
charge, pursuant to Section 7.2, will be made, and ii) Vernon will not be billed
for that amount of associated energy which is not delivered by San Diego.
3.2 Section 7.4 of the Power Sales Agreement shall be deleted in its entirety and a new
Section 7.4 shall be added as follows:
7.4 If Vernon is unable to receive the full amount of associated energy scheduled
during any hour due to Uncontrollable Forces, the amount of associated energy
Vernon is obligated to take and pay for shall be reduced by the amount of such
energy not delivered or received unless otherwise agreed between the Parties.
Uncontrollable Forces shall not reduce Vernon's obligation to pay for capacity
made available by San Diego.
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SIGNATURE CLAUSE: The signatories hereto represent that they have been (
to enter into this Amendment to the Power Sales Agreement on behalf of the
whom they sign. Executed as o~eJ....Q<-l~, 1993.
SAN DIEGO GAS & ELECTRIC COMPANY
BY ~1.~
Edwin A. Guiles
Senior Vice President, Energy Supply
CITY OF VERNON
BY~~~~.
LeOn C. Malburg, May r
APPROVED AS TO FORM:
BY: ~ ~,\7~
David B. Brearley, City attorney
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ATTEST:. ~
BY~ ~.
Bruce V. Malkenhorst, City