Resolution No. 72771
RESOLUTION NO. 7277
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING -AND AUTHORIZING THE EXECUTION OF A
4 SERVICE AGREEMENT FOR POINT-TO-POINT TRANSMISSION BY
AND BETWEEN THE UNITED STATES OF AMERICA DEPARTMENT
5 OF ENERGY ACTING BY AND THROUGH THE BONNEVILLE POWER
ADMINISTRATION AND THE CITY OF VERNON
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7 WHEREAS, the City of Vernon desires to enter into Short -Term
8 Firm and Non -Firm transmission arrangements with the Bonneville Power
9 Administration (BPA); and
10 WHEREAS, BPA desires to sell to the City of Vernon such
11 transmission service in accordance with the terms and conditions set
12 forth in the Service Agreement for Point -to -Point Transmission.
13 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
14 CITY OF VERNON AS FOLLOWS:
15 SECTION 1: The City Council of the City of Vernon does
16 hereby find and determine that the recitals contained hereinabove are
17 true and correct.
18 SECTION 2: The City Council of the City of Vernon hereby
19 approves the Service Agreement for Point -to -Point Transmission, a copy
20 of which has been presented to the City Council concurrently with this
21 resolution, and the City Council hereby orders said Agreement to be
22 received and filed by the City Clerk.
23 SECTION 3: The City Council of the City of Vernon hereby
24 authorizes the Mayor and the City Clerk to execute said Agreement for,
25 and on behalf of, the City of Vernon.
26 SECTION 4: The City Clerk of the City of Vernon shall
27 certify to the passage of this resolution and thereupon and thereafter
28 the same shall be in full force and effect.
1 APPROVED AND ADOPTED this 16th day of February, 1999.
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LEONIS C. MA BURG, Mayor
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ATTEST*�
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5 BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
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2 COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
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hereby certify that the foregoing Resolution, being Resolution No.
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7277, was duly adopted by the City Council of the City of Vernon at a
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regular meeting of the City Council duly held on Tuesday, February 16,
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1999, and thereafter was duly signed by the Mayor of the City of
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Vernon.
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BRUCE V. MALKENHORST, City Clerk
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12 (SEAL)
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
February 24, 1999
Mr. Kippen R. Moxness
Transmission Account Executive
Transmission Marketing and Sales
Bonneville Power Administration
P.O. Box 491
Vancouver, Washington 98666-0491
Re: Service Agreement No. 99TX-10207
Point -to -Point Transmission Service Agreement
Dear Mr. Moxness:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
Enclosed is a fully executed duplicate original of the above referenced
agreement for your files.
The said agreement was approved by the Vernon City Council on February
16, 1999 through Resolution No. 7277.
If you have any questions, please refer them to Mr. Ken DeDario, our
Director of Utilities at Ext. 211.
VeR
y yours,
0 co
Chut City Clerk
GJO:rcm
c: Ken DeDario
enclosure
Service Agreement No. 99TX-10207
SERVICE AGREEMENT
for
POINT-TO-POINT TRANSMISSION
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through the
BONNEVILLE POWER ADMINISTRATION
and
CITY OF VERNON
Index
Article
Page
1
Scope of Service Agreement...........................................................
1
2
Definitions..........................................................................................
2
3
Term of Service Agreement............................................................
2
4
Charges and Payments....................................................................
3
5
Notices.................................................................................................
3
6
Miscellaneous....................................................................................
4
7
Signatures..........................................................................................
6
Exhibit A (Statement of Specifications for Long -Term Firm
Transmission Service)
Exhibit B (Facilities Charges)
Exhibit C (Ancillary Services)
This TRANSMISSION SERVICE AGREEMENT is made and entered into this
day ofiaf2u ,199� by and between the Bonneville Power Administration
(hereinafter refereed to as `BPA') and the City of Vernon (hereinafter referred to as "the
Transmission Customer"). The Transmission Customer and BPA are sometimes referred to
individually as "Party" and collectively as "Parties," as the context suggests below.
ARTICLE 1
SCOPE OF SERVICE AGREEMENT
1.1 TERMS AND CONDITIONS
BPA agrees to provide and the Transmission Customer agrees to take and pay for
PTP Transmission Services in accordance with the provisions of this Service
Agreement and the Open Access Transmission Tariff (Tariff). The Tariff in effect at
the time of execution of this Service Agreement is hereby incorporated by this
reference. BPA may change the terms and conditions of the Tariff upon, and only
upon, a determination by the Commission that such change is just and reasonable
and not unduly discriminatory or preferential.
1.2 STATEMENT OF SPEC[ ICA77jON FOR LONG-TERM FIRM
TRANSMISSION SERVICE
The Statement of Specifications for Long -Term Firm PTP Transmission Service
under this Service Agreement requested by the Transmission Customer for each
individual transaction and accepted by BPA is hereby incorporated and made a part
of this Service Agreement as Exhibit A and made applicable to that transaction.
1.3 WHOLESALE POWER AND TRANSMISSION RATES SCHEDULES
BPA's Wholesale Power and Transmission Rates Schedules are hereby incorporated by
this reference.
1.4 FACILITIES CHARGES
All applicable charges pursuant to the Direct Assignment Facilities Provisions for
existing facilities and facilities built as a result of this Service Agreement are hereby
incorporated as Exhibit B.
1.5 ANCILLARY SERVICES
The Ancillary Services for PTP Transmission Service under this Service Agreement
are hereby incorporated as Exhibit C.
ARTICLE 2
DEFINITIONS
Unless otherwise defined herein, all capitalized terms shall have the meanings set forth in
the Tariff.
ARTICLE 3
TERM OF SERVICE AGREEMENT
Service under this Service Agreement shall commence at 2400 hours on the Date of
Execution. Service under this Service Agreement shall terminate at 2400 hours five years
from the Date of Execution. All liabilities and obligations incurred under this Service
Agreement shall be preserved until satisfied..
Service Agreement No. 99TX-10207 2
ARTICLE 4
CHARGES AND PAYMENTS
4.1 CHARGES FOR TRANSMISSION SERVICE
The Transmission Customer shall pay BPA the applicable charges for services
provided hereunder pursuant to the BPA Wholesale Power and Transmission Rate
Schedules.
4.2 BILLING AND PAYMENT
Bills for all services provided under this Service Agreement shall be payable in
accordance with the Tariff.
4.3 BPA APPROPRIATIONS REFINANCING ACT, PUBLIC LAW 104-134 ,
The Transmission Customer and BPA agree that provisions of Section 3201(i) of
Public Law 104-134 (BPA Refinancing Act) are incorporated in their entirety and
hereby made a part of this Service Agreement.
ARTICLE 5
NOTICES
5.1 NOTICES RELATING TO PROVISIONS OF THE SERVICE AGREEMENT
Any notice, request, demand, or statement which is given to or made upon either
Party by the other Party under any of the provisions of this Service Agreement,
except those specified in Article 5.2 below, shall be in writing and shall be
considered delivered when either personally delivered to the following or deposited
in the mail postage prepaid and properly addressed to the following:
If to City of Vernon
City of Vernon
4305 Santa Fe Ave.
Vernon, CA 90058
Attention: Kenneth J. DeDario
Director of Utilities
Phone (323) 583-1983
Fax (323) 583-1983
If to BPA
Bonneville Power Administration
P. O. Box 491
Vancouver, WA 98666-0491
Transmission Account Executive for:
City of Vernon
Phone (360) 418- 2246
Fax (360) 418-8320
5.2 NOTICES OF AN OPERATING NATURE
Any notice, request, or demand pertaining to matters of an operating nature,
exclusive of requests for additional or modified transmission service under the
Tariff, shall be sufficient if given in writing, by telephone, by facsimile, or orally in
person to the person designated in writing by the Party as its representative for
such purposes, provided that should such notice, request, or demand not be in
writing, confirmation thereof shall be made in writing as soon as reasonably
practicable thereafter, upon request of the Party being served. The representative
Service Agreement No. 99TX-10207
3
for receiving notices pursuant to this Article and such representative's address shall
be communicated by the Parties under separate letter within 45 days from the date
of execution of this Service Agreement.
ARTICLE 6
MISCELLANEOUS
6.1 INTERCONNECTION WITH OTHER SYSTEMS
Nothing contained in this Service Agreement shall restrict or limit either Party from
establishing, altering, or terminating interconnection points with any entity not a
party to this Service Agreement or amending or entering into such agreements.
6.2 GOVERNING LAW
This Service Agreement shall be interpreted, construed, and enforced in accordance
with Federal law.
6.3 AMENDMENTS
Except as provided in Article 1.1 and Article 6.4, and unless otherwise mutually
agreed in writing by the Parties, BPA may change this Service Agreement upon,
and only upon, a determination by the Commission that such change is just,
reasonable and not unduly discriminatory or preferential. Otherwise, this Service
Agreement may be amended only upon mutual agreement of the Parties, which
amendment shall be reduced to writing and executed by both Parties.
6.4 REVISION OF EXHIBITS
If any changes to Exhibits A, B, or C are necessary to reflect changes specified
below, new exhibits shall be substituted for the exhibits then in effect and shall
become effective as of the date specified therein. The Transmission Customer may
use the dispute resolution procedures available under the Tariff to challenge such
changes.
6.4.1 Subject to the rights and obligations of the Parties as set forth in the Tariff, if
the Parties agree to change Exhibit A pursuant to this Service Agreement,
BPA shall prepare a revised Exhibit A. BPA reserves the unilateral right to
amend contiguous point of delivery provisions in Exhibit A of this Service
Agreement.
6'.4.2 If the Parties agree to change Exhibit B, BPA shall prepare a new Exhibit B.
BPA reserves the right to revise Exhibit B annually to reflect changes
consistent with the provisions of Exhibit B, section 1.
6.4.3 If -the Parties agree to change Exhibit C, BPA shall prepare anew Exhibit C.
BPA reserves the right to update the loss factors identified in Exhibit C,
section 2, Transmission Loss Factors.
Service Agreement No. 99TX-10207
9
6.5 TEMPORARY LOAD SHIFTS AND MAINTENANCE NOTIFICATION
The Parties may temporarily interrupt, reduce, or shift deliveries of electric power if
any such Party determines that such interruption, reduction, or load shift is
necessary or desirable in case of system emergencies or operational constraints on
the system of either Party, or to install equipment in, make repairs to, make
replacement within, conduct investigations and inspections of, or perform other
maintenance work on the Parties' facilities. To the extent reasonable or
appropriate, the Parties will use temporary facilities or equipment to minimize the
effect of any such interruption, reduction, or load shift.
The Transmission Customer must submit a report concerning any such interruption,
reduction, or load shift to BPA within 4 days of such interruption, reduction, or load
shift. Reports may be made by telephone, mail, or other electronic processes. The
point of contact for each Party will be designated pursuant to Article 5.2 of this
Service Agreement. On receipt of the Transmission Customer's report, BPA will
adjust the Transmission Customer's billing determinants pursuant to BPA's billing
procedures. If the Transmission Customer does not submit the report within 4 days
of the interruption, reduction, or load shift, BPA shall assess charges based on
available data.
6.6 SEVERABILITY
In the event any of the terms, covenants, or conditions of this Service Agreement, or
any amendment hereto, or the application of such terms, covenants, or conditions
shall be held invalid as to any Party or circumstance by the Commission or by any
court having jurisdiction, all other terms, covenants, and conditions of this Service
Agreement or any amendment hereto, and their application shall remain in full
force and effect.
6.7 COMPUTATION OF TIME
To compute any period of time prescribed or allowed by this Service Agreement, the
day of the act, event, or default from which the designated period of time begins to
run shall not be included. The last day of the period so computed shall be included
unless it is a Saturday, Sunday, or legal holiday, in which event the period shall run
until the end of the next day which is neither a Saturday, Sunday, or legal holiday.
For purposes of the administration of this Service Agreement, Pacific Time shall be
used.
6.8 NO THIRD PARTY BENEFICIARIES
This Service Agreement creates rights and obligations only between the Parties
hereto. The Parties hereto do not intend to create any obligation or promise of
performance to any other person or entity nor have the Parties conferred any right
to enforce this Service Agreement or any remedy upon any third person or entity
other than the Parties hereto, their respective successors and assigns.
Service Agreement No. 99TX-10207 5
6.9 WAIVERS
Any waiver at any time by either Party of its rights with respect to a default under
this Service Agreement, or with respect to any other matter arising in connection
with this Service Agreement, shall not be deemed a waiver with respect to any other
or subsequent default or matter.
6.10 SUCCESSORS AND ASSIGNS
This Service Agreement shall inure to the benefit of and be binding upon the Parties
and their respective successors and assigns.
6.11 SERVICE AGREEMENT GOVERNS
In the event of any irreconcilable difference between the Tariff and this Service
Agreement, the language of this Service Agreement shall govern.
6.12 ENTIRE AGREEMENT
This Service Agreement constitutes the entire agreement between the Parties with
respect to the subject matter hereof, and there are no other understandings or
agreements between the Parties with respect hereto.
ARTICLE 7
SIGNATURES
The signatories represent that they are authorized to enter into this Service Agreement on
behalf of the Party for who they sign.
CITY OF VERNON
By: ,
Name: eonis C. Malburg
(Print/Type)
Title: MAYOR
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
By:�yC r.Ula—
Name:/%�i° MG.r✓lit'SS
(Print/Type)
Title: Transmission Account Executive
Date: �� °2'2 �9� Date:
ATTES
�nice V. tj;J, r�h4Fgt CITY CLERK
w:\mcp\tmc\ct oc 02/0�/99
APPROVED AS TO FORM:
�12(
Service Agreement No. 99TX-10207 6
EXHIBIT A
STATEMENT OF SPECIFICATIONS FOR
LONG-TERM FIRM TRANSMISSION SERVICE
Long -Term service has not been requested at this time under this Service Agreement.
(w: \mcp\tmc\ct\10207. doc)(02/03/99)
99TX-10207 (City of Vernon) Page 1 of 1
EXHIBIT B
FACILITIES CHARGES
Facilities Charges are not required at this time for the service under this Service
Agreement.
1. USE -OF -FACILITIES COSTS FOR WHICH THE TRANSMISSION
CUSTOMER IS RESPONSIBLE
(a) Calculation of Charges Pursuant to the UFT-96 Rate Schedule
I&A I&A O&M Sum of Non -
Annual Annual Annual Coincidental
Facilitv Investment Cost Ratio Cost Cost Demands $/kW/vr
1 2 3
Substation $ % $ $ $
Total UFT Charge = $0./kW/mo
kW to apply UFT charge to: 0 kW
(b) Changes in Costs and Demands. BPA may revise Exhibit B annually to
reflect changes in: (1) the yearly noncoincidental demands on the facility
under this Service Agreement and other agreements; (2) I&A annual cost
ratios; (3) O&M annual costs; and (4) investments in facilities.
2. DIRECT ASSIGNMENT FACILITIES CHARGES
1 199X computation.
2 Based on ACR table dated
8 Based on O&M table dated
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99TX-10207 (City of Vernon) Page 1 of 1
1.
EXHIBIT C
ANCILLARY SERVICES
ANCILLARY SERVICES PROVIDED
(a) Scheduling and Dispatch
(b) Energy Imbalance
Provided Contract
By No.
BPA (TBL 11)
N/A
(c) Control Area Reserves for Resources N/A
(d) Control Area Reserves for Interruptible
Purchases NIA
(e) Load Regulation N/A
(f) Reactive Supply and Voltage Control N/A
(g) Transmission Losses BPA(TBL)
[If the provider is BPA (PBL) add a footnote to define: BPA's Power Business Line]
Compensation for Transmission Losses associated with the delivery of power
over the FCRTS under this Service Agreement shall be governed by the
following provisions:
(1) Transmission Losses Associated with Federal Power
Losses associated with Federal power purchased pursuant to BPA's
PF-96, NR-96, and IP-96 Wholesale Power and Transmission Rate
Schedules are provided by BPA and included in the rate for such
power. No additional compensation is required.
(2) Transmission Losses Associated with Non -Federal Power and
Other Classes of Federal Power
The Transmission Customer shall compensate BPA for losses BPA
incurs when providing transmission service over the FCRTS for non -
Federal power and other classes of Federal power (unless otherwise
specified in the Transmission Customer's contract for the purchase of
such power), integrated at Points of Interconnection, except those
amounts associated with purchases specified in 1(g)(1) above. The
1 BPA's Transmission Business Line.
99TX-10207 (City of Vernon) Page 1 of 4
compensation shall be determined by multiplying the amount of power
delivered under this Service Agreement by the applicable Loss Factor
listed below in section 2; and
(A) adding the resulting amount to the billing factor for the
Transmission Customer's purchases of Federal power; or
(B) Transmission Customer purchasing the resulting amount from
BPA pursuant to the APS-96 rate schedule (or its successor) for
Transmission Losses. The options for purchasing losses (i.e.
fixed price, NYMEX) shall be specified in the annual
notification letter described in section 1(g)(4)(A) below; or
(C) Transmission Customer returning the resulting amount to
BPA from a single Control Area 168 hours after the time of
delivery of power for which loss compensation is required.
(3) Transmission Losses Associated with Delivery Facilities
Transmission Losses associated with Delivery Facilities shall be
determined annually, by Fiscal Year zl, pursuant to the following
procedure:
(A) determining the ratio of power delivered over Delivery
Facilities to the total power delivered to the Transmission
Customer over the FCRTS; and
(B) multiplying the resulting ratio by the total amount of power
delivered to the Transmission Customer less amounts
described in 1(g)(1) above; and
(C) multiplying the result derived in step 1(g)(3)(B) by the Delivery
Facility loss factor listed below in section 2; and
(D) Transmission Customer purchasing the resulting amount from
BPA pursuant to the APS-96 rate schedule (or its successor) for
Transmission Losses. The options for purchasing losses (i.e.
fixed price, NYMEX) shall be specified in the annual
notification letter described in section 1(g)(4)(A) below.
2 Fiscal Year is defined as the twelve-month period from October 1 through September 30.
99TX-10207 (City of Vernon) Page 2 of 43
Exhibit C, Ancillary Services
(4) Notification
(A) Each Fiscal Year except the Fiscal Year during which this
Service Agreement is executed, BPA shall send a letter by
August 1 requesting that the Transmission Customer shall
choose one of the methods described in section 1(g)(2). The
Transmission Customer shall indicate in the letter its choice for
compensating BPA for transmission losses during the following
Fiscal Year, countersign the letter and return one copy to BPA
by September 1 of the then current Fiscal Year. The
countersigned letter shall serve as the Transmission
Customer's confirmation and shall constitute a revision to
section 1(g)(5) of Exhibit C.
(B) If the Transmission Customer selects option 1(g)(2)(C) above,
the Transmission Customer shall designate in the letter the
single Control Area the Transmission Customer will use during
the subsequent Fiscal Year.
(C) In the event that, in any Fiscal Year, the Transmission
Customer does not notify BPA by September 1 of the method it
has chosen, the Transmission Customer's compensation
method shall be the method used for the then current Fiscal
Year.
(5) Transmission Customer's Method of Compensation of Annual
Transmission Losses during a Fiscal Year The Transmission
Customer has elected to purchase Transmission Losses, pursuant to
the APS-96 rate schedule, at a rate of 22.8 mills per kWh for the
period 2400 hours on the Date of Execution through 2400 hours
September 30, 1999.
2. TRANSMISSION LOSS FACTORS
Network Loss Factor: 1.9 percent of kWh delivered
ET Loss Factor: 1.9 percent of kWh delivered
Delivery Facility Loss Factor: 0.6 percent of kWh delivered
IS Loss Factor: 3.0 percent of kWh delivered
99TX-10207 (City of Vernon) Page 3 of 43
Exhibit C, Ancillary Services
BPA reserves the right, after consultation with the Transmission Customer,
to review the loss methodology and to revise this Exhibit C as appropriate,
but not more frequently than once in a 12-month period, to incorporate loss
factors which represent then -current FCRTS operating conditions. BPA shall
prepare a new Exhibit C incorporating any revision and the revised Exhibit
shall become effective as of the date specified therein..
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99TX-10207 (City of Vernon) Page 4 of 43
Exhibit C, Ancillary Services