Resolution No. 6540
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RESOLUTION NO. 6540
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
A BOULDER CANYON PROJECT IMPLEMENTATION AGREEMENT
BETWEEN THE UNITED STATES, ACTING THROUGH THE
WESTERN AREA POWER ADMINISTRATION, DEPARTMENT OF
ENERGY AND THE BUREAU OF RECLAMATION, DEPARTMENT
OF THE INTERIOR, AND THE FOLLOWING PARTIES:
ARIZONA POWER AUTHORITY, COLORADO RIVER
COMMISSION OF NEVADA, CITY OF BOULDER CITY,
DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS
ANGELES, THE METROPOLITAN WATER DISTRICT OF
SOUTHERN CALIFORNIA, SOUTHERN CALIFORNIA EDISON
COMPANY AND THE CITIES OF ANAHEIM, AZUSA,
BANNING, BURBANK, COLTON, GLENDALE, PASADENA,
RIVERSIDE AND VERNON
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WHEREAS, the City of Vernon by Resolution No. 5356 on
11 January 6, 1987, entered into a contract with the Bureau of
12 Reclamation (an agency of the United States Department of Interior)
13 to invest funds for the uprating of electrical generation facilities
14 at Hoover Dam, which is part of the Boulder Canyon Project; and
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WHEREAS, the Arizona Power Authority, the Colorado River
16 Commission of Nevada, the City of Boulder City, Nevada, and the
17 California Cities of Anaheim, Azusa, Banning, Burbank, Colton,
18 Glendale, Pasadena, and Riverside entered into similar contracts
19 with the Bureau of Reclamation; and
20 WHEREAS, the City of Vernon by Resolution No. 5355 on
21 January 6, 1987, and the above agencies (Schedule B Contractors)
22 entered into contracts with the Western Area Power Administration
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("Western," an agency of the United States Department of Energy) to
24 receive capacity and energy from the Boulder Canyon Project andlor
25 funds in repayment for the investment in the uprating project; and
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WHEREAS, the Department of Water and Power of the City of
27 Los Angeles, the Metropolitan Water District of Southern California,
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1 and Southern California Edison Company (Schedule A Contractors) were
2 original participants in the Boulder Canyon project and in 1987
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entered into contracts with Western to receive energy therefrom, but
4 have not participated in the uprating project; and
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WHEREAS, various disagreements have developed between the
contractors on one side and Western and the Bureau of Reclamation on
7 the other side with regard to the administration of the Boulder
8 Canyon project; and
9 WHEREAS, a dispute has developed between the Schedule B
10 Contractors and the Schedule A Contractors with regard to the
11 interpretation of the Western contracts and the correct procedures
12 for calculating and repaying the investments and accrued interest by
13 the Schedule B Contractors; and
14 WHEREAS, the Boulder Canyon Project contractors, Western
15 and the Bureau of Reclamation have been negotiating an
16 Implementation Agreement which will help in the administration of
l7 the contracts for capacity and energy and which will provide a
18 methodology to seek resolution of the dispute over repaYments; and
19 WHEREAS, Western and the Bureau of Reclamation have given
20 preliminary approval to said Implementation Agreement.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
22 CITY OF VERNON AS FOLLOWS:
23 SECTION 1: The City Council of the City of Vernon hereby
24 finds and determines that the recitals contained hereinabove are
25 true and correct.
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SECTION 2: The City Council of the City of Vernon hereby
27 approves the Implementation Agreement, a copy of which has been
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presented to the City Council concurrently with this resolution, and
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the City Council hereby orders said Agreement to be received and
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filed by the City Clerk.
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authorizes the Mayor and the City Clerk to execute said Agreement
SECTION 3: The City council of the City of Vernon hereby
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for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
8 certify to the passage of this resolution, and thereupon and
9 thereafter the same shall be in full force and effect.
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15 BRUCE V.
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APPROVED AND ADOPTED this 1st day of November, 1994.
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-- .. LEONIS C. BURG, Ma or
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STATE OF CALIFORNIA
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I, BRUCE V. MALKENHORST, ci ty Clerk of the City of
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4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 6540, was duly adopted by the city Council of the
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2 COUNTY OF LOS ANGELES )
City of Vernon at a regular meeting of the city council duly held on
7 Tuesday, November 1, 1994, and thereafter was duly signed by the
8 Mayor of the City of Vernon.
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BRUCE V.
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( SEAL)
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