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Resolution No. 6604 - 1 RESOLUTION NO. 6604 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A LETTER POWER SALE AGREEMENT WITH THE CALIFORNIA DEPARTMENT OF WATER RESOURCES IN ACCORDANCE WITH SERVICE SCHEDULE C OF THE WESTERN SYSTEMS POWER POOL AGREEMENT 4 5 6 7 WHEREAS, the California Department of Water Resources 8 ("DWR") is a member of the Western Systems Power Pool ("WSPP") 9 Agreement; and 10 WHEREAS, the City of Vernon is a member of the WSPP; and 11 WHEREAS, DWR has offered to provide capacity and firm 12 energy to the City of Vernon beginning May 1, 1995 and extending through September 30, 1995; and 13 14 WHEREAS, the City of Vernon believes that purchasing such 15 capacity and firm energy would be economically beneficial to the 16 City of Vernon's electric customers. 17 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 18 CITY OF VERNON AS FOLLOWS: 19 SECTION 1: The City Council of the City of Vernon does 20 hereby find and determine that the recitals contained hereinabove 21 are true and correct. 22 SECTION 2: The City Council of the City of Vernon hereby 23 approves the Letter Power Sale Agreement, a copy of which has been 24 presented to the City Council concurrently with this resolution, 25 and the City Council hereby orders said Letter Agreement to be 26 received and filed by the City Clerk. 27 SECTION 3: The City Council of the City of Vernon hereby 28 authorizes the Mayor Pro Tem and the City Clerk to execute said ~ 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 26 27 28 Letter Agreement for, and on behalf of, the City of Vernon. SECTION 4: The City Clerk of the City of Vernon shall certify to the passage of this resolution and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 28th day of March, 1995. -2- 1 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) 2 3 4 I, BRUCE V. MALKENHORST, City Clerk of the city of 5 Vernon, do hereby certify that the foregoing Resolution, being 6 Resolution No. 6604, was duly adopted by the City Council of the City of Vernon at an adjourned regular meeting of the City Council 7 8 duly held on Tuesday, March 28. 1995, and thereafter was duly signed by the Mayor Pro Tem of the City of Vernon. 9 10 ~- #/ BRUCE V. MALKENHORST, 11 12 (SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3- Jr. STATE OF CALIFORNIA-THE RESOURCES AGENCY PETE WILSON, Governor DEPARTMENT OF WATER RESOURCES 1416 NINTH STREET, P.O. BOX 942836 SACRAMENTO, CA 94236-0001 (916) 653-5791 March 28, 1995 ~ Mr. Kenneth J. DeDario Diredtor of Light & Power City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Dear Mr. DeDario: Subject: Firm Power Sale Agreement for May through September, 1995 This Agreement sets forth the terms and conditions under which the California Department of Water Resources will provide capacity and firm energy to the City of Vernon beginning May 1/ 1995 and extending through September 30/ 1995. This Agreement is in accordance with Service Schedule C of the Western Systems Power Pool Agreement. 1. TERM: Service under this Agreement shall commence on May 1, 1995 and shall extend through September 30/ 1995 except as provided in Section 7 below. 2. POINT OF DELIVERY: The Point of Delivery will be Sylmar Substation. The POD may be changed when both Parties schedulers or dispatchers agree to the change. 3. POWER SALES: 3.1 For the month of May DWR shall make available to Vernon and Vernon shall accept from and pay DWR for firm capacity and associated energy as follow: 3.1.1 30 MWh/hour/ hour ending 0100 to hour ending 0900; 40 MWh/hour, hour ending 1000 to hour ending 2300; 30 MWh/hour/ hour ending 2400, Monday through Friday except Holidays. ~:~"':'~::""" ~-$ - ....I~ ;: C""~O."'~ p Mr. Kenneth J. DeDario March 28, 1995 Page Two 3.1.2 30 MWhjhour, hour ending 0100 to hour ending 2400, Saturday, Sunday, and Holidays. 3.2 For the month of June DWR shall make available to Vernon and Vernon shall accept from and pay DWR for firm capacity and associated energy at a rate of 40 MWhjhour, hour ending 0100 to hour ending 2400 each day. . 3.3 For the months of July through September DWR shall make available to Vernon and Vernon shall accept from and pay DWR for firm capacity and associated energy at a rate of 35 MWhjhour, hour ending 1000 to hour ending 2300, Monday through Friday except Holidays. Holidays are defined as Memorial Day, Independence Day, and Labor Day. When any holiday listed above falls on Sunday, the following Monday will be recognized as a holiday. 4. SCHEDULING: By 1000 hours Pacific Prevailing Time on each Workday, Vernon shall notify DWR's schedulers of the planned schedule for the next Workday(s) . 5. CHARGES: For the capacity and firm energy delivered by DWR to Vernon, Vernon shall pay as follows: 5.1 For the month of May and June $12jMWh. 5.2 For the month of July $21jMWh. 5.3 For the month of August and September $22jMWh. 6. CURTAILMENT PROVISIONS: 6.1 DWR's obligation to make available firm capacity and associated energy to Vernon as detailed in Section 3 is a firm obligation, contingent only upon Uncontrollable Forces (defined in Section 11 of the California Department of Water Resources and the City of Vernon Power Sale Agreement No.4) . 6.2 If Vernon is unable to receive or DWR is unable to deliver the full amount of associated energy during any hour due to Uncontrollable Forces, Vernon's obligation to pay for energy shall be reduced by the amount of such energy not delivered. p Mr. Kenneth J. DeDario March 28, 1995 Page Two 6.3 In the event it becomes necessary for DWR to curtail service to Vernon, DWR shall use its best efforts to notify Vernon as far in advance of the curtailment as possible. 7. NOTICE O~ TERMINATION: -'7 . 1 Vernon may terminate the 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. 7.2 Vernon may also reduce by 10 MWh/hour during the months of May and June, and 5 MWh/hour during the months of July through September the amount of capacity and associated energy, if Vernon is not able to obtain from SCE the necessary firm transmission service from the Point of Delivery to the Vernon City Gate. 7.3 To terminate the Agreement, (per Section 7.1) or reduce the monthly amounts (per Section 7.2), Vernon must provide written notice to DWR prior to April 26, 1995i however, DWR may extend the above date to April 30, 1995. All other provisions contained in the WSPP Agreement shall be applicable to this Agreement. Mr. Kenneth J. DeDario March 28, 1995 Page Three If the above accurately reflects your understanding of the terms of the Agreement reached by representatives of Vernon and DWR, please so indicate by signing both originals of this Agreement in the space provided below and return one fully executed original to me. ~ ,If you have any questions, please call me at (916) 653-8854 or c~ll Coe Hall at (916) 653-6284. Sincerely, ~ .J'7J~-". Ron McAfee, Chief Project Operations Center Division of Operations and Maintenance ACCEPTED: CITY OF VERNON By: ~V0.Va.;j~ WdrldBl let j Itk/JI'rI;1/lt Thomas A. Ybarra Title: Mayor Pro Tern Date: /L /~~ Bruce V. Malkenhorst City Clerk ATTEST: Approved as to Form: " .~ \'~ Ii "~~' \ ) (YL----c .J i \ C, /\...k-:f" David B. Brearley , City Attorney