Resolution No. 76811
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RESOLUTION NO. 7681
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
LETTER AGREEMENT BY AND BETWEEN THE CITY OF VERNON
AND SOUTHERN CALIFORNIA EDISON COMPANY PROVIDING FOR
THE USE OF THE VERNON-EDISON TRANSMISSION RIGHTS BY
THE CALIFORNIA INDEPENDENT SYSTEM OPERATOR
WHEREAS, the City of Vernon is located within the Independent
System Operator ("ISO") control area, is a customer of the -ISO and owns
and operates a system for the generation, transmission, and purchase of
electric capacity and energy and for the distribution, sale, and use of
such electricity within its community; and
WHEREAS, on November 30, 2000, the ISO approved Vernon's
(application, as amended, to become a Participating Transmission Owner
("PTO") effective January 1, 2001; and
WHEREAS, by Resolution No. 7672 adopted on December 5, 2000,
the City Council of the City of Vernon approved for execution a
Transmission Control Agreement ("TCA") between Vernon and ISO, subject
to the issues reserved for FERC approval in a letter dated December 5,
2000, from Bruce V. Malkenhorst to the ISO; and
WHEREAS, Southern California Edison Company ("Edison") and the
City of Vernon are parties to the following three transmission service
agreements: Edison -Vernon Firm Transmission Service Agreement, Edison -
Vernon Mead Firm Transmission Service Agreement and Edison -Vernon
Victorville-Lugo Firm Transmission Service Agreement; which agreements
provide transmission rights to Vernon (Converted Rights); and
WHEREAS, pursuant to the Edison -Vernon 1997 Restructuring
JAgreement, Edison and Vernon desire to agree that (1) the current
(definition of Third'Party in each of the.three Edison -Vernon
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transmission service agreements is sufficient for the ISO to use
Vernon's Converted Rights; and (2) such Converted Rights may be used by
those entities the ISO allows to use Converted Rights pursuant to the
ISO Tariff; and
WHEREAS, by letter dated December 14, 2000, Bruce V.
Malkenhorst, City Administrator/City Clerk., has recommended that
authorization be granted to the Director of Utilities to execute said
letter agreement for and on behalf of the City of Vernon.
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 hereby finds
and determines that the recitals contained hereinabove are true and
correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Letter Agreement with Edison, a copy of which is attached,
hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Director of Utilities to execute said Letter Agreement
for, and on behalf of, the City of Vernon.
SECTION 4: The City Council of the City of Vernon hereby.
directs the City Clerk, or his designee, to send one fully executed
Letter Agreement to:
Southern California Edison Company
Attn. Gil Tam, Manager of Grid Contracts
2244 Walnut Grove Avenue
Rosemead, CA 91770
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SECTION 5: 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 19th day of December, 2000.
ATTEST:01
/
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MALB G MaY r
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE.V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7681, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Tuesday, December 19,
2000, and thereafter was duly signed by the Mayor of the City of
Vernon.
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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EXHIBIT
0
FROM SCE GRID CONTRACTS' GO1, 4TH FLOOR
(TUE)12, 19' 00 11 4 7/ST. 11: 46/NO. 356076 r798 P
.J 5C)U1141-RN CAI IFORNIA
ED1 SON
An rnlsoN IN'Tr-RNArroNAV4 Compaq
December 19, 2000
Kenneth J. DeDario, Director of Utilities
City of Vernon
Utilities Department
4305 Santa Fe Avenue
Vernon, California 90059
Subject: Edison -Vernon Firm Transmission Service Agreements
Gilbert It. L. Tina
Manager of Grid Contracts
Dear Mr. eDario:
We luuderstand that Vernon is now in the process of obtaining approvals from the California
Independent System Operator ("ISO") to become a Participating Transmission Owner ("PTO")
and to convert its existing transmission service rights to Converted Rights, as those rights are
defined in the ISO Tariff, to be effective January 1, 2001. Pursuant to the Edison -Vernon 1997
Restructuring Agreement, each of the three (3) Edison -Vernon transmission service agreements
was amended to provide that if Vernon becornes a PTO and converts.its transmission service
rigbts to Converted Rights, then the definition of Third Party contained in each agreement "shall
be amended to be consistent with the definition of entities eligible to purchase transmission
service from the ISO as set forth in the ISO Tariff."'
We agree that the current definition of Third Party in each of the three transmission service
agreements, referenced above, is sufficient for the ISO to use Vernon's Converted Rights and that
we agree that such Converted Rights may be used by the ISO and by those entities the ISO allows
to use Converted Rights pursuant to the ISO Tariff. Therefore, this letter confim's that it is no
longer necessary to modify the definition of Third Party when Vernon becomes a PTO and
converts its transmission service rights to Converted Rights.
If you agree with the above, please indicate your agreement by signing in the space designated
below on both copies of this letter. Please keep one copy of the letter and return the other tome.
Agreed to this da of December, 2000.
rt
Southern California Edison,
Manager of Grid Contracts
Kenneth J. De Dario
City of Vernon,
Director of Utilities
'See §5.13 of Amendment No-1 to the Edison -Vernon Firm Transmission Service Agreement, §5.10 of
Amendment No. 2 w the Edison -Vernon Mead Firm Transmission Service Agreemem, and §5.9 of
Amendment No. l to the Edison -Vernon Victorville-Lugo Firm Transmission Service Agreement.
P. A. Box Soo
2244 walnut Crave Ave
Rosemead. CA 91770
626-302 177 t
tax 626-302 9292
SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
City Council
City of Vernon
Honorable Members:
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
December 14, 2000
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
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
A draft Letter Agreement by and between the Edison -Vernon Firm
Transmission Agreement has been submitted by Southern California
Edison Company. This is to confirm the covenant between Vernon and
Edison in which it is agreed to have the transmission service being
transferred to the California Independent System Operator (ISO) be
used by the ISO pursuant to the ISO tariff.
The Letter of Agreement has been
and it is hereby recommended that
Director of Utilities to execute
BVM/ng
reviewed by our Special Consultant
authorization be granted to the
said Letter Agreement.
Very truly yours,
Bruce V. Malkenhorst
City Administrator/City Clerk
,D CONTRACTS
V
Nevmnbw-24December 6,2000
GO 4TH FLOOR
(WED)12.06A0 17: 55/ST. 17: 54/NO. 356076 7731 P 2
DRAn
Kenneth 1. DeDario, Director of Utilities
City of Vernon
Utilities Department
4305 Santa Fe Avenue
Vernon, California 90058
Subject: I Edison -Vernon Firm Transmission Service Agreements
Dear Mr. DeDario:
We understand that Vernon is now in the process of obtaining approvals from the
California Independent System Operator C ISOD to become a Participating Transmission
owner ("PT011) and to convert its e—xistliIaLtransmission service rights to Converted
Rights as those rillts ate defined in the ISO Tariff, to be effective January 1, 2001.
Pursuant to the'Edison-Vernon 1997 RestrucWring Agreement, each of the three (3)
'Edison -Vernon transmission service agreements was amended to provide that if Vernon
becomes a PTO and converts its transmission service rights to Converted Rights, as *es
rightsara elm in the ISO Tafiff-,-then the definition of Third Party contained in each
d—
agreement "shall be amended to be consistent with the definition of entities eligible to
ff.991
purchase transmission service from the ISO as set forth in the ISO Tari
This letter is to confirm discussions between our representatives that it is no longer
necessary to modify the definition of Third Party when Vernon becomes a PTO and
converts its transmission service rights to Converted Rights effective January 1, 2001.
As Converted Rights, Vernon's existin transmission contract entitlements will be placed
under ISO Operation Control and such entitlements ma be used by the ISO_pursuant to
the ISO Tariff.
If you agree with the above, please indicate your agreement by signing in the space
designatedbelow on both copies of this letter. Please keep one copy of the letter and
return the other to me.
Sincerely;
Gil Tam
Vernon Signature block
'See §5.13 of Amendment No. Ito the Edison -Vernon Firm TrAnsmission ServireAgreernent, §5.10 of
)Gcndmen_i No. 7- to the Edison -Vernon Mead Firm Transmission Service Agreement, and §5.9 Of
Amendment No. 1 to the Edison -Vernon Victorville-Lugo Firm Transmission Service Agreement.
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December 14, 2000
TO: Bruce V. Malkenhorst, City Administrator _
FROM: Kenneth J. DeDario, Director of Utilities
SUBJECT: Edison Letter Agreement
I recommend authorizing me, as the authorized representative for the Edison -Vernon Firm
Transmission Agreement, to sign the attached Letter Agreement by and between The City of
Vernon and Southern California Edison. This Letter Agreement confirms that Vernon and
Edison agrees that our transmission service being transferred to the California ISO may be used
by the ISO pursuant to the ISO tariff. This Letter Agreement has been reviewed by the Special
Consultant.
If you have any questions or comments, please contact me. Thank you for your consideration.
Attachment
OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: January 25, 2001
TO: Kevin Wilson
Director of Community Services & Water
FROM: Gloria J. Orosco, Chief Deputy City Clerk
RE: Resolution No.7681
Transmitted herewith is a copy of the above -stated resolution, which
was approved by Vernon City Council on December 19, 2000..
Authorizing a letter agreement by and between the City of Vernon and
Southern California Edison Company providing for the use of the
Vernon -Edison transmission rights by the California Independent
System Operator.
Thank you.
GJO:mt
Attachment
Trujillo, Marisol
From Lehr, Judy
Sent: Tuesday, December 19, 2000 12:28 PM
To: Orosco, Gloria
Cc: Trujillo, Marisol
Subject: Changed Resolution Title of 7681
Importance: High
The Resolution title of 7681 has been changed to:
A Resolution Of The City Council Of The City Of Vernon Approving And
Authorizing The Execution Of A Letter Agreement By And Between The City Of
Vernon And Southern California Edison Company Prcv d:n Qr.The Use,=.0- Thy
1
Giron, Nei
From: Orosco, Gloria
Sent: Tuesday, December 19, 2000 1:44 PM
To: Giron, Nelly
Subject: FW: Changed Resolution Title of 7681
Importance: High
use this new title when you do the minutes
-----Original Message ----
From:
Lehr, Judy
Sent:
Tuesday, December 19, 2000 12:28 PM
To:
Orosco, Gloria
Cc:
Trujillo, Marisol
Subject:
Changed Resolution Title of 7681
Importance:
High
The Resolution title of 7681 has been changed to:
A Resolution Of The City Council Of The City Of Vernon Approving And
Authorizing The Execution Of A Letter Agreement By And Between The City Of
Vernon And Southern California Edison Comnanv The Use„ Ot The