Resolution No. 7616e
1 RESOLUTION NO. 7616
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE UTILITIES
4 DEPARTMENT TO SEEK PROPOSALS TO PURCHASE POWER
5 FOR THE NEXT TEN YEARS PURSUANT TO THE WESTERN
SYSTEMS POWER POOL (WSPP) AGREEMENT, APPROVING
6 AND AUTHORIZING THE FORM OF DOCUMENTS FOR
REQUESTS FOR PROPOSALS FOR POWER SUPPLY,
7 APPROVING AND AUTHORIZING THE EXECUTION BY THE
CITY ADMINISTRATOR OF TRANSACTION CONFIRMATION
8 AGREEMENTS, AND APPROVING AND RATIFYING POWER
9 SALES AGREEMENTS MADE BY THE UTILITIES DEPARTMENT
WITH IDAHO POWER COMPANY
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11 WHEREAS, the City Council has approved a Resource
12 Procurement Plan & Credit Risk Management Policy (the "Plan & Policy")
13 for the Utilities Department (the "Department") in order to enable the
14 Department to plan, execute and control the management of a variety of
15 risks inherent in power resource procurement in the deregulated power
16 market;
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WHEREAS, the City's annual load is approximately 1,250,000
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MWh while its committed power supply for the next five years ranges
19 from 409,000 MWh to 830,000 MWh per year;
20 WHEREAS, the Department seeks the flexibility in an
21 uncertain market to purchase power for the balance of the current year
22 and for periods up to the next ten (10) years in order to fill the
23 City's power supply needs; and
24 WHEREAS, the City Administrator has recommended to the City
25 Council that it adopt a resolution to (1) authorize the Department to
26 seek power supply proposals when the Department deems it necessary and
27 timely by either issuing a Request for Proposal ("RFP") or directly
28 soliciting vendors and negotiating a transaction, for the balance of
29 the current year and for periods of up to ten (10) years, (2)
30 authorize the Department to approve the financial qualifications of
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1 prospective power suppliers and negotiate transaction confirmation
2 agreements pursuant to the WSPP Agreement, (3) approve the form of the
3 RFP documents, (4) authorize the City Administrator or his authorized
4 designee to execute transaction confirmation agreements for power
5 supply, and (5) approve and ratify transaction confirmation agreements
6 the Department previously entered into with Idaho Power Company.
7 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
8 CITY OF VERNON AS FOLLOWS:
9 SECTION 1: The City Council of the City of Vernon does
10 hereby find and determine that the recitals contained hereinabove are
11 true and correct.
12 SECTION 2: The City Council of the City of Vernon hereby
13 authorizes the Utilities Department (the "Department") to issue a
14 Request for Proposal ("RFP") for power supply at this time and at
15 other times as the Department deems it necessary and timely given
16 conditions in the wholesale electric power market at that particular
17 time for various time periods for the balance of the current year to
18 the end of the year 2010, approve the financial qualifications of
19 power supply vendors and negotiate transaction confirmation agreements
20 pursuant to the Western Systems Power Pool ("WSPP") Agreement.
21 SECTION 3: The City Council of the City of Vernon hereby
22 authorizes the Department to directly solicit proposals for power
23 supply at its discretion for various time periods for the balance of
24 the current year to the end of the year 2010, from power supply
25 vendors, approve the financial qualifications of power supply vendors
26 and negotiate transaction confirmation agreements pursuant to the WSPP
27 Agreement.
28 SECTION 4: The City Council of the City of Vernon hereby
29 approves and authorizes a form of an RFP, attached hereto as
30 Exhibit A.
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SECTION 5: The City Council of the City of Vernon hereby
approves and authorizes the City Administrator, or his authorized
designee, which may include the Director of the Department or the
Assistant Director of Resource Management of the Department, to
execute transaction confirmation agreements pursuant to the WSPP
Agreement with various power supply vendors for various time periods
for the balance of the current year to the end of the year 2010.
SECTION 6: The City Council of the City of Vernon hereby
approves and ratifies the separate transaction confirmation agreements
with Idaho Power Company for 25 MW of on -peak energy for calendar
years 2001, 2002, 2003, 2004 and 2005, which the Department has
previously entered into.
SECTION 7: The City Council of the City of Vernon hereby
authorizes the City Administrator to make whatever changes, upon
advice of counsel, to the RFP and all transaction confirmation
documents as is necessary to carry out the intent of this Resolution.
SECTION 8: 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 5ch day of September, 2000.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
EONIS C. MALB RG, MAY R
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1 STATE OF CALIFORNIA )
2 COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon,
5 do hereby certify that the foregoing Resolution, being Resolution
6 No. 7618, was duly adopted by the City Council of the City of Vernon
7 at a regular meeting of the City Council duly held on Tuesday,
8 September 5, 2000, and thereafter was duly signed by the Mayor of the
9 City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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September 5, 2000
SAMPLE FORM OF
REQUEST FOR PROPOSAL FOR POWER SUPPLY
1.0 INTRODUCTION
2.0
VERNON UTILITIES DEPARTMENT
The City of Vernon, California (the "City") has authorized its Utilities Department (the
"Department") to issue a Request for Proposal ("RFP") for long-term power supply.
The City is an exclusively industrial city of 5.5 square miles, located in Los Angeles
County, approximately 6 miles from the Los Angeles Civic Center. The City is
electrically part of the California ISO control area.
The Department is seeking Proposals from one or more suppliers ("Bidders") to enter
into various long-term power supply contractual arrangement pursuant to the Western
System Power Pool (°WSPP") Agreement and in the form of the Transaction
.Confirmation Agreement attached.
Responses to the RFP shall be signed by an officer of the Bidder who has the authority
to bind the Bidder to the proposed transactions. Proposal shall include suitable
evidence which verifies the officer's capability to bind the Bidder. Each Bidder shall
submit, along with its response to this RFP, the form of an executable Transaction
Confirmation Agreement which shall be signed by both Parties within 48 hours of written
acceptance by the City of the Bidder's Proposal.
CONTRACT LIMIT
The Department is seeking proposals for on- and off-peak power supply in 25 MW
increments for any of the following periods, with and without the Fourth Quarter ("Q4").
Bids that include Q4 shall be limited to 50 MW.
Time Periods
Calendar years 2001 through 2005
Calendar years 2001 through 2006
Calendar years 2001 through 2007
Calendar years 2001 through 2008
Calendar years 2001 through 2009
Calendar years 2001 through 2010
3.0 PROPOSAL REQUIREMENTS
On -Peak Off -Peak
75 MW
50 MW
50 MW
50 MW
50 MW
50 MW
25 MW
25 MW
25 MW
25 MW
25 MW
25 MW
If multiple proposals are submitted, specify whether one or more proposals are
contingent upon each other. Proposals shall be submitted according to the following
requirements.
3.1 POINT OF DELIVERY
SP-15 - As defined by the California ISO or, if modified, the zone that includes
Laguna Bell Substation in the City of Commerce, California.
3.2 PRODUCT
Product shall be Firm per WSPP Service Schedule C for either of the following
two (2) delivery periods.
3.2.1 On -Peak Product: HE 07:00 to HE 22:00 Monday through Saturday
. (excluding NERC Holidays).
3.2.2 Off -Peak Product: HE 23:00 through HE 06:00 Monday through
Saturday, all day Sunday, and NERC Holidays.
3.3 PRICE
The Bidder shall submit one fixed price for the on -peak product and/or one fixed
price for the off-peak product for each term.
3.4 SCHEDULING
All energy deliveries shall be prescheduled no later than 07:00 a.m., Pacific
Prevailing Time (PPT) on the day that both parties observe as a workday
preceding the date of delivery or, if necessary in the sole judgement of the
Department, at such time as required to meet California ISO requirements.
Bidders oposing to includ ny addition visions in A chm
form of the ansaction nfir 4ion A eement ttache he to,
such additiona ae to the D rtment no late
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3.0 DEADLINE TO SUBMIT PROPOSAL
Proposals shall be received by the Department no later than
Proposal should be mailed or faxed to:
Jorge C. Somoano
Assistant Director of Resource Management
Vernon Utilities Department
4305 Santa Fe Avenue
Vernon, California 90058
Tel: (323) 583-8811, Extension 248
Fax: (323) 583-1983
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4.0 NOTIFICATION OF PROPOSAL STATUS
The Department will notify each Bidder of the status of the proposal by
The Department expressly reserves the right to modify, or withdraw from, the process
initiated and described herein. No rights shall be vested in any party, individual or entity
by virtue of its preparation to participate in, or its participation in, such process. The
Department expressly reserves the right to modify, for any reason, the schedule and any
provision contained herein. The Department reserves to itself the selection of winning
Bidders, if any, in the exercise of its sole discretion.
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TRANSACTION CONFIRMATION AGREEMENT
Date:
The following shall confirm the agreement reached on , 2000 between
and City of V6M, on, pursuant to the WSPP Agreement as it is supplemented and modified below.
Buyer:
Vernon Utilities Department
Seller:
4305 Santa Fe Avenue
Vernon, CA 90058
Attn:
Kenneth J. DeDario
Attn
Phone:
(323) 583-8811
Phone:
Fax:
(323) 583-1983
Fax:
Contract
Contract
Reference #:
Reference #:
Scheduling #:
(323) 589-6302
Scheduling #:
Quantity (MW):
Quantity (MWhrs):
Price:
Product: Firm On -Peak Energy
Start Date:
End Date:
Day of Week:
Monday through Saturday,
Hours: H.E. 0700 to H.E. 2200 PPT
excluding NERC Holidays.
Delivery Point:
SP-15 as currently defined by the California ISO.
Scheduling:
Buyer shall preschedule all deliveries of energy by 11:00 PPT on the workday
preceding the date of delivery.
Special Provisions: See Attachment A as an addendum to the WSPP Agreement. Buyer shall
exercise commercially reasonable efforts to limit deliveries to two sources per
day with only one change between resources.
Enabling Agreement: WSPP
Other:
If the above accurately reflects your understanding of our agreement, please
indicate your approval by signing a copy of this letter and returning it via fax
to (323) 583=1983.
City of Vernon
By:_
Name:
Kenneth J. DeDario
Title: Director of Utilities
By:
Name:
Title:
All Dollar Figures are in US Dollars
A1.0
ATTACHMENT A
Scheduling
Seller shall be responsible for ensuring that Service Schedule C transactions are scheduled as
firm power consistent with the most recent rules adopted by the applicable North American
Electric Reliability Council ("NERC").
Parties shall preschedule all deliveries of energy by 07:00 a.m., Pacific Prevailing Time. or as
mutually agreed, on the day that both Parties observe as a workday preceding the date of
delivery or, if necessary in the sole judgment of Buyer, at such time as required to meet California
ISO requirements. Schedules may only be changed due to Uncontrollable Forces on either
system or by mutual agreement of both parties.
A2.0 Uncontrollable Forces
An Uncontrollable Force shall not be based on either the Buyer's loss of markets or inability.
economically to use or resell the product purchased or the Seller's loss or failure of supply or
ability to sell the product at a price greater than the contract price.
Both Parties shall have secured firm transmission service to effectuate a NOB point of delivery
transaction. That portion of transmission service used to effectuate the transaction at the NOB
point of delivery and which was curtailed by the responsible party in control of the transmission
facilities pursuant to the applicable tariff or contract, shall be considered an Uncontrollable Force.
A3.0 Transmission Arrangement and Other Costs
Seller shall arrange and be responsible for transmission service to the Delivery Point and shall
Schedule or arrange for .Scheduling services with its Transmission Providers to deliver electric
energy to the Delivery Point. Unless otherwise agreed, Seller shall also be responsible for all
costs and charges (excluding any Stranded Costs) imposed on or associated with the delivery of
the Contract Quantity, including control area services, inadvertent energy - flows, losses and
environmental costs, including emission allowances imposed on or in respect of the electric
energy, prior to the delivery of the electric energy to the Delivery Point. The Buyer shall arrange
and be responsible for transmission service at and after the Delivery Point and shall Schedule or
arrange for Scheduling services with its Transmission Providers to accept electric energy at the
Delivery Point. Unless otherwise agreed, the Buyer shall also be responsible for all costs or
charges imposed on or associated with the delivery of the Contract Quantity, including control
area services, inadvertent energy flows, losses and environmental costs, including emission
allowances imposed on or in respect to the electric energy from the delivery of the electric energy
to the Buyer at and after the Delivery Point.
A4.0 Reliability Guidelines
Each Party shall adhere to accepted electric industry practice and, without limiting the foregoing,
to the applicable operating policies, criteria and/or guidelines of NERC and any regional or
subregional requirements.
SUPPORTING
DOCUMENTS
. CfTY 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
August 27, 2001
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
STEVEN E. PARKER
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
To: Prospective Vendors of Electric Energy to the City of
Vernon, California
The purpose of this correspondence is to confirm the City's
authorization to Kenneth J. DeDario, Director of the Utilities
Department, and Jorge C. Somoano, Assistant Director of Resource
Management, to bind and obligate the City of Vernon, California,
to agreements for the purchase of power, pursuant to the Western
Systems Power Pool Agreement, as amended or supplemented, ("WSPP
Agreement") for power sales transactions for any term through
December 31, 2010, for up to 75 MW of energy with a single power
supply vendor.
This letter also confirms that the City is expressly authorized
to enter into the above -referenced transactions and that no
rules, laws, regulations or resolutions restrict or prohibit the
City from entering into and being bound by the WSPP Agreement.
If you have any questions about this correspondence, you may
contact this office.
Sincerely,
CITY OF VERNON y�f
Bruce V. Malkenhorst
City Administrator
BVM:jl
cc: Kenneth J. DeDario
Jorge C. Somoano
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
August 22, 2001
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
STEVEN E. PARKER
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
To: Prospective Vendors of Electric Energy to the City of
Vernon, California
The purpose of this correspondence is to confirm the City's
authorization to Kenneth J. DeDario, Director of the Utilities
Department, and Jorge C. Somoano, Assistant Director of Resource
Management, to bind and obligate the City of Vernon, California,
to agreements for the purchase of power, pursuant to the Western
Systems Power Pool ("WSPP") Agreement, for power sales
transactions for any term through December 31, 2010, for up to
75 MW of energy with a single power supply vendor.
If you have any questions about this correspondence, you may
contact this office.
Sincerely,
CITY OF VERNON
Bruce V. Malkenhorst
City Administrator
BVM:jl
cc: Kenneth J. DeDario
Jorge C. Somoano