Resolution No. 6533
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RESOLUTION NO. 6533
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON TERMINATING THE APPROVAL OF THE 1995
POWER SALES AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND SAN DIEGO GAS & ELECTRIC COMPANY
APPROVED BY RESOLUTION NO. 6358 AND RESCINDS THE
ADOPTION OF RESOLUTION NO. 6358
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WHEREAS, the City Council of the City of Vernon
authorized the approval of a 1995 Power Sales Agreement by and
between the City of Vernon and San Diego Gas & Electric Company
("San Diego") on July 12, 1994 by Resolution No. 6358; and
WHEREAS, San Diego requested that the City of Vernon
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exercise its rights to designate a delivery point pursuant to
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Section 5 of said Agreement prior to San Diego's management
approving the Agreement and authorizing the execution thereof; and
WHEREAS, Kenneth J. DeDario, Director of Light and Power,
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sent a letter dated August 10, 1994, in accordance with San
Diego's request designating that "Therefore, to the extent said
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Agreement becomes effective pursuant to section 3, the City of
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Vernon hereby designates Sylmar as a Point of Delivery for that
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portion of our purchase not to exceed 50 MW during its term;" and
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WHEREAS, the exercise of the City of Vernon~s right to
designate a delivery point in advance of San Diego's final
approval of the Agreement is a change in the Agreement which the
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City Council considered on July 12, 1994; and
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WHEREAS, the City Council would therefor have to ratify
Mr. DeDario's letter of August 10, 1994 and approve the Power
Sales Agreement as modified by said letter; and
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1 WHEREAS, the Light and Power Department of the City of
2 Vernon has received competing proposals to provide capacity and
3 associated energy as a nonintegrated resource at substantially
4 lower prices than is included in the San Diego arrangements; and
5 WHEREAS, the Light and Power Department of the City of
6 Vernon therefor desires that the San Diego contract not be
7 approved and that the City Council consider the proposals
8 submitted by other sellers.
9 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
10 CITY OF VERNON AS FOLLOWS:
11 SECTION 1: The City Council of the City of Vernon does
12 hereby find and determine that the recitals contained hereinabove
13 are true and correct.
14 SECTION 2: The City Council of the City of Vernon hereby
15 terminates its approval of the 1995 Power Sales Agreement, which
16 had previously been approved by Resolution No. 6358, because of
17 the change in the Agreement constituting a counterproposal by San
18 Diego after the City Council's approval, and because other sellers
19 have presented power sale arrangements to the City of Vernon which
20 are more economically advantageous to the City of Vernon.
21 SECTION 3: The City Council of the City of Vernon hereby
22 rescinds its adoption of Resolution No. 6358 and hereby rejects
23 the 1995 Power Sales Agreement as proposed and modified by the
24 August 10, 1994 letter from Mr DeDario.
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SECTION 4: The City Clerk of the City of Vernon shall
2 certify to the passage of this resolution and thereupon and
3 thereafter the same shall be in full force and effect.
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7 AT~
8 BRUCE V.
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APPROVED AND ADOPTED this 26th day of October, 1994.
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MALKENHORST, c~ty Clerk
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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. 6533, was duly adopted by the City Council of the
City of Vernon at an adjourned regular meeting of the City Council
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duly held on Wednesday October 26. 1994, and thereafter was duly
signed by the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST,
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