Resolution No. 6779
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RESOLUTION NO. 6779
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF AMENDMENT NO. 1 TO THE FIRM WHOLESALE POWER
AGREEMENT NO. 2 BY AND BETWEEN THE CITY OF
VERNON AND SALT RIVER PROJECT AGRICULTURAL
IMPROVEMENT AND POWER DISTRICT
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WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 5933 on June 4, 1991, which approved a Firm Power
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Sale Agreement with Salt River Project Agricultural Improvement
and Power District ("SRP"); and
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WHEREAS, the City Council of the City of Vernon adopted
Resolution No. 6244 on April 27, 1993, which approved Amendment
No. 1 to the Firm Power Sale Agreement with SRP; and
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WHEREAS, the City Council of the city of Vernon adopted
Resolution No. 6541 on November 1, 1994, which approved a Firm
Wholesale Power Agreement No. 2 with SRP effective January 1, 1995
through December 31, 1997; and
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WHEREAS, the City Council of the City of Vernon adopted
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Resolution No. 6562 on December 20, 1994, which approved a
modified Firm Wholesale Power Agreement No. 2 executed as of
December 8, 1994, with SRP effective January 1, 1995 through
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December 31, 1997; and
WHEREAS, the City of Vernon and SRP desire to amend the
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Firm Wholesale Power Agreement No. 2 to make provision for
alternate transmission arrangements by Vernon to take delivery of
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power and energy under the Agreement; and
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WHEREAS, SRP has ownership entitlement in the Mead-
Phoenix Project and Vernon has ownership entitlement in the Mead-
Adelanto Project which are both expected to be completed and
operational by January 1, 1996, and which will establish an
electrical interconnection between SRP and Vernon which will allow
SRP to schedule and deliver capacity and associated energy to
Vernon; and
WHEREAS, SRP desires to sell to Vernon from resources
available to SRP, and Vernon desires to purchase from SRP, firm
capacity and associated energy in accordance with the terms and
conditions set forth in the Firm Wholesale Power Agreement No.2.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the city of Vernon does
hereby find and determine that the recitals contained hereinabove
are true and correct.
SECTION 2: The city Council of the City of Vernon hereby
approves the Amendment No. 1 to the Firm Wholesale Power
Agreement, a copy of which has been presented to the City Council
concurrently with this resolution, and the City Council hereby
orders said Agreement to be received and filed by the city Clerk.
SECTION 3: The city Council of the City of Vernon hereby
authorizes the Mayor and the City Clerk to execute said 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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ATTEST:
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BRUCE V.
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APPROVED AND ADOPTED this 16th day of April, 1996.
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MALKENHORST, City 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. 6779, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
on Tuesday, April 16, 1996, 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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4 AMENDMENT NO. 1 TO THE
5 FIRM WHOLESALE AGREEMENT NO.2
6 BETWEEN
7 SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT
8 AND
9 THE CITY OF VERNON
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26 EXECUTION COPY
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AMENDMENT NO.1 TO THE
2 FIRM WHOLESALE AGREEMENT NO.2
3 BETWEEN
4 SALT RIVER PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT
5 AND
6 THE CITY OF VERNON
7 1. PARTIES:
8 The parties to this Amendment No. 1 are Salt River Project Agricultural Improvement
9 and Power District, an agricultural improvement district organized under the laws of the
10 State of Arizona ("SRP") and The City of Vernon, a municipal corporation of the State of
11 California, ("Vernon"); referred to individually as "Party" and collectively as "Parties".
12 2. RECITALS:
13 2.1 SRP and Vernon executed the Firm Wholesale Power Agreement No. 2
14 between the Parties as of December 8, 1994.
15 2.2 The Parties desire by this Amendment No.1 to make provision for alternate
16 Transmission arrangements by Vernon to take delivery of power and energy
17 under the Agreement.
18 3. AGREEMENT:
19 In consideration of the promises and mutual covenants contained herein, the Parties
20 agree as follows:
21 4. EFFECTIVE DATE AND TERM:
22 This Amendment No. 1 shall be effective when it has been executed by both Parties.
23 5. REVISION OF SECTION 5.2:
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Section 5.2 to the Firm Wholesale Power Agreement No.2 is hereby revised to read as
follows:
"5.2 The initial date of service under this Agreement shall be 12:01 a.m. Mountain
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Standard Time, January 1, 1995, or the date specified in writing by Vernon to
SRP on which Vernon is able to commence delivery over the Edison system,
whichever is later; and the Agreement shall terminate on the earliest to occur
of i) midnight Mountain Standard Time on December 31, 1997, ii) the date
determined pursuant to Section 10.3 hereof, or iii) the last day of the month
for which Vernon gave 30 days notice to SRP that this agreement shall
terminate, but in any event no sooner than September 30, 1996 and only if
Vernon does not have a firm transmission path for this transaction pursuant
to Section 10.5 hereof. All obligations to pay money incurred prior to
termination shall survive termination until satisfied."
11 6. ADDITION OF SECTION 10.5:
12 "10.5 If despite its good faith efforts, Vernon does not expect to have a firm
13 transmission path from Victorville-Lugo Midpoint [the point where Edison's
14 Control area meets the Los Angeles Department of Water and Power
15 (LADWP) control area between Edison's Lugo substation and LADWP's
16 Victorville substation] to the city of Vernon, Vernon shall make a good faith
17 effort to obtain 35 MW of firm transmission service from either Mead or
18 Eldorado Substation. If Vernon obtains such firm transmission service, then
19 SRP agrees that the Point of Delivery shall be changed at Vernon's Authorized
20 Representative's request to either Eldorado Substation or Mead Substation.
21 SRP shall credit Vernon's bill pursuant to Section 11 hereof by an amount
22 equal to the difference in cost to Vernon for firm transmission service from
23 Victorville-Lugo Midpoint to Vernon and the cost of firm transmission service
24 from Mead/Eldorado to Vernon, but in no event shall such credit exceed
25 $0.38/kW-Month."
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7. OTHER PROVISIONS NOT AFFECTED:
2 Except as expressly provided in this Amendment No.1, the Firm Power Sale Agreement
3 dated June 1'3, 1991, shall remain in full force and effect.
4 8. SIGNATURE CLAUSE:
5 The signatories hereto represent that they have been appropriately authorized to enter
6 into this Amendment No.1, on behalf of the Party for whom they sign. This
7 Amendment No. 1 is hereby executed as of the -:2!!.!!aay of ~d ' 1996.
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SALT RIVER PROJECT AGRICULTURAL
IMPROVEMENT AND POWER DISTRICT
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22 ATTEST:
By:
J{?~-::~
Title: Associate General Manager
Marketing, Customer Service,
Finance and Planning
CITY OF VERNON
Approved as to Form:
J // Do--:J~ \:>A ~/
// / 4/R~~vid B'. Jlfearl~u -r
r~ t.- ..I- ~., C~ty Attorney
25 /fI~/f/tfJrfy/ Bruce V. Malkenhorst
City Clerk
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