Resolution No. 9658--1--
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RESOLUT-ION NO. 9658
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
GENERATION TIE -LINES STUDY AGREEMENT BY AND BETWEEN
THE CITY OF VERNON AND SOUTHERN CALIFORNIA ED_ISON
COMPANY REGARDING THE VERNON POWER PLANT
WHEREAS, the City of Vernon (the "City") owns and operates
its own electric system which services the City's constituents; and
WHEREAS, the City is a Participating Transmission Owner with
the California Independent System Operator Corporation ("ISO"); and
WHEREAS, the City is in the process of developing a 914 MW
net combined -cycle generating facility located within City limits
designated the Southeast Region Energy Project ("SREP"), formerly
known as the Vernon Power Plant, for the purpose of installing
additional generating capacity that will yield an efficient, cost-'
effective, and reliable source of electric generation; and
WHEREAS, on October 12, 2005, the City Council of the City
adopted Resolution No. 8873 approving an Interconnection System Impact
Study with Southern California Edison Company's ("SCE") to access the
impact of interconnecting the SREP to the ISO Controlled Grid at an
output of 610 MW net; and
WHEREAS, on June 21, 2006, the City Council of the City
adopted Resolution No. 9075 approving an Interconnection System Impact
Study Agreement with SCE to access the impact of interconnecting the
SREP at an additional output of 304 MW net to the proposed 610 MW; and
WHEREAS, the SREP will be interconnected to Southern
California Edison Company's ("SCE") Laguna Bell Substation 220 KV bus
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via a double -circuit 220 KV transmission line ("Generation Tie -Lines")
for the delivery of energy and/or ancillary services to the ISO
Controlled Grid; and
WHEREAS, in order to accommodate the Generation Tie -Lines,
the Laguna Bell 66 KV system will be reconfigured and additional
studies are needed concerning the Los Angeles River Route with the 220
KV interface located along Randolph Street east of the 720 Freeway and
at the end of the SCE fee -owned right-of-way (the "220 KV Interface");
and
WHEREAS, the City and SCE desire to enter into a Generation
Tie -Lines Study Agreement (Vernon Power Plant) (the "Agreement")
clarifying the terms and conditions under which SCE shall perform the
220 KV Interface study; and
WHEREAS, under the terms and conditions of the Agreement, the
City will pay actual costs of SCE performing the study, in the
estimated sum of $70,000.00; and
WHEREAS, the Director of Light & Power has recommended that
the Agreement with SCE be approved and a check issued for the cost of
the study; and
WHEREAS, the City Council of the City has determined that,
pursuant to the provisions of subsection (a) of Section 2.27 of the
Vernon City Code, it is in the public interest and necessity to enter
into an agreement with SCE.
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.
- 2 -
1__ SECTION_2: The City Council of the City of Vernon hereby
2 approves Generation Tie -Lines Study Agreement (Vernon Power Plant)
3 with SCE, a copy of which is attached hereto as Exhibit A and
4 incorporated by reference and approves the payment of costs in advance
5 in the sum of $70,000.00.
6 SECTION 3: The City Council of the City of Vernon hereby
7 authorizes the Mayor or Mayor Pro -Tern to execute said Agreement for,
8 and on behalf of, the City of Vernon and the City Clerk is hereby
9 authorized to attest thereto.
10 SECTION 4: The City Council of the City of Vernon hereby
11 authorizes and empowers the City Administrator, or his designee, to
12 execute such other agreements and documents and to take such actions
13 as may be necessary or convenient to carry out the City's obligations
14 hereunder and to effect the purposes of the Agreement and the
15 transactions therein authorized.
16 SECTION 5: The City Council of the City of Vernon hereby
17 directs the City Clerk, or her designee, to send a fully executed
18 Agreement together with a check in the sum of $70,000.00 by July 14,
19 2008 to SCE.
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1 SECTION 6: The City Clerk of the City of Vernon shall
2 certify to the passage of this resolution, and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 7th day of July, 2008.
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7 Name: Leonis C. Malburg
8
Title: Mayor / M
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10 ATTEST:
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M UELA GIRON, City Clerk
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STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9658, was
duly adopted by the City Council of the City of Vernon at a regular
meeting of the City Council duly held on Monday, July 7, 2008, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Vernon.
(SEAL)
0
hzb� Att�-
PANUELA GIRON, ity Clerk
- 5 -
EXHIBIT A
CITY OF VERNON —
SOUTHERN CALIFORNIA EDISON COMPANY
GENERATION TIE -LINES STUDY AGREEMENT
(Vernon Power Plant)
1. Summary: The City of Vernon ("Vernon") proposes to construct a 914 MW natural-
gas -fired combined -cycle plant ("Project") to be located at 3200 Fruitland Avenue in
Vernon, California. Vernon has submitted two separate Interconnection Requests to
the California Independent System Operator Corporation ("ISO") for Interconnection
of the Project pursuant to Section 25 (formerly Section 5.7) of the ISO Tariff. The first
Interconnection Request is for the first 610 MWs ("610 MW Project") and the second
Interconnection Request is for the remaining 304 MWs ("304 MW Project"). The
Project proposes to interconnect to Southern California Edison Company's ("SCE")
Laguna Bell Substation 220 W bus via a double -circuit 220 W transmission line
("Generation Tie -Lines") for the delivery of Energy and/or Ancillary Services to the
ISO Controlled Grid. hi order to accommodate the Generation Tie -Lines, the Laguna
Bell 66 W system will be reconfigured by undergrounding portions of 66 W lines,
removing other portions of 66 W lines, and re-routing other portions of lines utilizing
two 66 W idle lines. System Impact Studies and Facilities Studies have been
completed for the Project; however, re -studies are in process for the 304 MW Project
as a result of the withdrawal of a project ahead of the 304 MW Project in the
Interconnection application queue. As provided for under the 610 MW Project's
Facilities Study Agreement executed between the ISO and Vernon on August 21,
2006, preliminary studies on the scope of work, estimated cost and schedule, and rights
analysis were performed for the Generation Tie -Lines and the associated 66 kV work
on two proposed 220 kV routes (i.e., the "Randolph Street Route" and the "Los
Angeles River Route") assuming various alternatives for the 220 kV interface location.
In a meeting held between SCE and Vernon on February 19, 2008 to discuss the
various Generation Tie -Lines options, Vernon directed SCE to perform detailed
Generation Tie -Lines and 66 kV studies associated with the "Option 1" scope of work,
comprised of the Los Angeles River Route with the 220 kV interface located along
Randolph Street east of the 710 Freeway and at the end of the SCE fee -owned right-of-
way ("Study"). Accordingly, SCE and Vernon desire to enter into this non -tariff
Generation Tie -Lines Study Agreement ("Agreement") providing the terms for SCE to
perform such Study.
2. Definitions: All terms with initial capitalization not otherwise defined herein shall
have the meanings assigned to them in SCE's TO Tariff.
3. Study Scone and Content:
The Study will include the following scope of work for Option 1:
a. A "Level 3" rights analysis (i.e., SCE's most complete rights analysis) to identify
the easements or other land rights necessary for Vernon to acquire for the portion
of the Generation Tie -Lines and associated 66 kV facilities to be constructed and
owned by SCE.
-2-
b. The detailed scope of work, estimated cost, and estimated construction schedule
for the portion of the Generation Tie -Lines and associated 66 kV facilities to be
constructed and owned by SCE.
c. The scope of work for the 66 kV facilities to be constructed and owned by Vernon
in order to accommodate the Generation Tie -Lines.
d. A load flow analysis and short-circuit duty analysis, including circuit breaker
evaluation, for SCE's 66 kV system as a result of the 66 kV line re -configuration.
e. A charging current analysis, including circuit breaker evaluation, for SCE's 66 kV
system as a result of the 66 kV line re -configuration.
f. Evaluation of protection requirements as a result of SCE's system re -configuration.
4. Assumptions: The assumptions utilized in performing the Study shall be as follows:
a. The Generation Tie -Lines route under Option 1 will be the Los Angeles River
Route with the 220 kV interface point located east of the 710 Freeway at the end of
SCE's fee -owned right-of-way ("220 kV Interface Point") as shown on Exhibit A.
b. SCE will construct and own the portion of the Generation Tie -Lines located in
SCE's fee -owned right-of-way from Laguna Bell Substation to the 220 kV
Interface Point. Vernon will construct and own the Generation Tie -Lines beyond
the 220 kV Interface Point.
c. The ownership of the 66 kV lines will remain unchanged (i.e., the point of change
of ownership will remain at the Vernon city boundary). SCE will perform the
66 kV work outside the Vernon city boundary to accommodate the Generation Tie-
-3-
Lines. Vernon will be responsible for performing the 66 kV work within its city
boundary. A diagram of the preliminary scope of work is shown on Exhibit B.
d. Vernon will be responsible for acquiring all permits, easements, and/or land rights
necessary for Vernon and SCE to construct the Generation Tie -Lines and
associated 66 kV facilities.
5. Time to Complete Study: SCE will use due diligence to complete the Study within
ninety (90) calendar days following receipt of a fully executed copy of this Agreement
and payment pursuant to Sections 9 and. 11 of this Agreement.
6. Additional Time For Completion: At any time that SCE determines that the Study
cannot be completed within the time period specified in Section 5 of this Agreement,
SCE shall notify Vernon and provide an estimated completion date, along with an
explanation of the reasons why additional time is required to complete the Study.
7. Exchange of Information: SCE and Vernon shall confer with one another as
necessary to exchange information that will provide for the most accurate analysis
possible with the information available at the time the Study is performed.
8. Third Party Review: The Study results will not reflect any review or analysis by any
third party.
9. Payment: Vernon shall pay the full cost for SCE to perform the Study as follows:
a. Vernon shall reimburse SCE for SCE's actual cost of performing the Study,
including labor and associated labor burden costs, materials and supplies, outside
services, and administrative and general expenses. SCE estimates that the cost of
the Study will be $70,000.
-4-
b. Vernon shall advance to SCE $70,000 for the Study upon execution of this
Agreement. SCE shall refund to Vernon, without interest, any amounts received
by SCE which exceed the cost of the Study. In the event that the actual costs to
perform the Study exceed $70,000, Vernon shall pay, without interest, any amounts
owed by Vernon within twenty (20) calendar days of receipt of SCE's notification
of the final Study costs and the associated invoice.
10. Records and Accounts: SCE shall maintain records and accounts of all costs incurred
in performing the Study in sufficient detail to allow verification of all costs incurred,
including, but not limited to, labor and associated labor burden costs, materials and
supplies, outside services, and administrative and general expenses. Vernon shall have
the right, upon reasonable notice, within a reasonable time at SCE's offices and at its
own expense, to audit SCE's records as necessary and as appropriate in order to verify
costs incurred by SCE. Any audit requested by Vernon shall be completed, and written
notice of any audit dispute provided to SCE's representative, within one hundred
eighty (180) calendar days following receipt by Vernon of SCE's notification of the
final Study costs.
DI
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-5-
11. Signature Clause: This Agreement shall become effective on the date the fully
executed Agreement and payment pursuant to Section 9 of this Agreement are received
by SCE. If SCE does not receive the fully executed Agreement and payment within
fifteen (15) calendar days of Vernon's receipt, then the offer reflected in this
Agreement will expire and this Agreement will be of no effect.
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SOUTHERN CALIFORNIA EDISON COMPANY
ACCEPTED AND AGREED to this day of
CITY OF VERNON
By:
Name:
Title:
2008
ATTEST:
By:
Manuela Giron, City Clerk
APPROVED AS TO FORM:
Jeff A. Harrison, City Attorney
-6.
EXHIBIT A
EXHIBIT B
I
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: July 7, 2008
TO: Donal O'Callaghan, Director of Light & Power
FROM Nelly Giron, City Clerk
RE: Resolution No. 9658 - A Resolution of the City Council
of the City of Vernon Approving and Authorizing the
Execution of a Generation Tie -Lines Study Agreement By
and Between the City of Vernon and Southern California
Edison Company Regarding the Vernon Power Plant
Herewith for your transmittal is a copy of Resolution No. 9658,
referenced above, which was approved by City Council on July 7,
2008, along with a copy of the fully executed agreement.
Thank you.
NG:dr
c: Resolution No. 9658
Agreement 08-061
NO 505709
CITY OF VERNON, LIGHT &
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GENERATION TIE -LINES STUDY AGRMT.
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4015
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70,000.00
NONE
07/02/2008
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70, 000.00
PLEASE DETACH BEFORE DEPOSITING
City of Vernon - Light & Power
4305 Santa Fe Ave
' y
Vernon, CA 90058
(323) 583-8811
IMoA)
PAY Seventy Thousand Dollars and No Cents
TO THE SOUTHERN CALIFORNIA
ORDER EDISON COMPANY
OF
003X
ILE THROUGH
OF AMERICA 1220
07/07/2008 1 505709 1 70,000.00
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CITY OF VERNON —
SOUTHERN CALIFORNIA EDISON COMPANY
GENERATION TIE -LINES STUDY AGREEMENT
(Vernon Power Plant)
1. Summary: The City of Vernon ("Vernon") proposes to construct a 914 MW natural-
gas -fired combined -cycle plant ("Project") to be located at 3200 Fruitland Avenue in
Vernon, California. Vernon has submitted two separate Interconnection Requests to
the California Independent System Operator Corporation ("ISO") for Interconnection
of the Project pursuant to Section 25 (formerly Section 5.7) of the ISO Tariff. The first
Interconnection Request is for the first 610 MWs ("610 MW Project") and the second
Interconnection Request is for the remaining 304 MWs ("304 MW Project"). The
Project proposes to interconnect to Southern California Edison Company's ("SCE")
Laguna Bell Substation 220 W bus via a double -circuit 220 W transmission line
("Generation Tie -Lines") for the delivery of Energy and/or Ancillary Services to the
ISO Controlled Grid. In order to accommodate the Generation Tie -Lines, the Laguna
Bell 66 W system will be reconfigured by undergrounding portions of 66 W lines,
removing other portions of 66 W lines, and re-routing other portions of lines utilizing
two 66 W idle lines. System Impact Studies and Facilities Studies have been
completed for the Project; however, re -studies are in process for the 304 MW Project
as a result of the withdrawal of a project ahead of the 304 MW Project in the
Interconnection application queue. As provided for under the 610 MW Project's
Facilities Study Agreement executed between the ISO and Vernon on August 21,
2006, preliminary studies on the scope of work, estimated cost and schedule, and rights
analysis were performed for the Generation Tie -Lines and the associated 66 kV work
on two proposed 220 kV routes (i.e., the "Randolph Street Route" and the "Los
Angeles River Route") assuming various alternatives for the 220 kV interface location.
In a meeting held between SCE and Vernon on February 19, 2008 to discuss the
various Generation Tie -Lines options, Vernon directed SCE to perform detailed
Generation Tie -Lines and 66 kV studies associated with the "Option 1" scope of work,
comprised of the Los Angeles River Route with the 220 kV interface located along
Randolph Street east of the 710 Freeway and at the end of the SCE fee -owned right-of-
way ("Study"). Accordingly, SCE and Vernon desire to enter into this non -tariff
Generation Tie -Lines Study Agreement ("Agreement") providing the terms for SCE to
perform such Study.
2. Definitions: All terms with initial capitalization not otherwise defined herein shall
have the meanings assigned to them in SCE's TO Tariff.
3. Study Scope and Content:
The Study will include the following scope of work for Option 1:
a. A "Level 3" rights analysis (i.e., SCE's most complete rights analysis) to identify
the easements or other land rights necessary for Vernon to acquire for the portion
of the Generation Tie -Lines and associated 66 kV facilities to be constructed and
owned by SCE.
-2-
b. The detailed scope of work, estimated cost, and estimated construction schedule
for the portion of the Generation Tie -Lines and associated 66 kV facilities to be
constructed and owned by SCE.
c. The scope of work for the 66 kV facilities to be constructed and owned by Vernon
in order to accommodate the Generation Tie -Lines.
d. A load flow analysis and short-circuit duty analysis, including circuit breaker
evaluation, for SCE's 66 kV system as a result of the 66 kV line re -configuration.
e. A charging current analysis, including circuit breaker evaluation, for SCE's 66 kV
system as a result of the 66 kV line re -configuration.
f. Evaluation of protection requirements as a result of SCE's system re -configuration.
4. Assumptions: The assumptions utilized in performing the Study shall be as follows:
a. The Generation Tie -Lines route under Option 1 will be the Los Angeles River
Route with the 220 kV interface point located east of the 710 Freeway at the end of
SCE's fee -owned right-of-way ("220 kV Interface Point") as shown on Exhibit A.
b. SCE will construct and own the portion of the Generation Tie -Lines located in
SCE's fee -owned right-of-way from Laguna Bell Substation to the 220 kV
Interface Point. Vernon will construct and own the Generation Tie -Lines beyond
the 220 kV Interface Point.
c. The ownership of the 66 kV lines will remain unchanged (i.e., the point of change
of ownership will remain at the Vernon city boundary). SCE will perform the
66 kV work outside the Vernon city boundary to accommodate the Generation Tie-
-3-
Lines. Vernon will be responsible for performing the 66 kV work within its city
boundary. A diagram of the preliminary scope of work is shown on Exhibit B.
d. Vernon will be responsible for acquiring all permits, easements, and/or land rights
necessary for Vernon and SCE to construct the Generation Tie -Lines and
associated 66 kV facilities.
5. Time to Complete Study: SCE will use due diligence to complete the Study within
ninety (90) calendar days following receipt of a fully executed copy of this Agreement
and payment pursuant to Sections 9 and 11 of this Agreement.
6. Additional Time For Completion: At any time that SCE determines that the Study
cannot be completed within the time period specified in Section 5 of this Agreement,
SCE shall notify Vernon and provide an estimated completion date, along with an
explanation of the reasons why additional time is required to complete the Study.
7. Exchany-e of Information: SCE and Vernon shall confer with one another as
necessary to exchange information that will provide for the most accurate analysis
possible with the information available at the time the Study is performed.
8. Third Party Review: The Study results will not reflect any review or analysis by any
third party.
9. Payment: Vernon shall pay the full cost for SCE to perform the Study as follows:
a. Vernon shall reimburse SCE for SCE's actual cost of performing the Study,
including labor and associated labor burden costs, materials and supplies, outside
services, and administrative and general expenses. SCE estimates that the cost of
the Study will be $70,000.
-4.
b. Vernon shall advance to SCE $70,000 for the Study upon execution of this
Agreement. SCE shall refund to Vernon, without interest, any amounts received
by SCE which exceed the cost of the Study. In the event that the actual costs to
perform the Study exceed $70,000, Vernon shall pay, without interest, any amounts
owed by Vernon within twenty (20) calendar days of receipt of SCE's notification
of the final Study costs and the associated invoice.
10. Records and Accounts: SCE shall maintain records and accounts of all costs incurred
in performing the Study in sufficient detail to allow verification of all costs incurred,
including, but not limited to, labor and associated labor burden costs, materials and
supplies, outside services, and administrative and general expenses. Vernon shall have
the right, upon reasonable notice, within a reasonable time at SCE's offices and at its
own expense, to audit SCE's records as necessary and as appropriate in order to verify
costs incurred by SCE. Any audit requested by Vernon shall be completed, and written
notice of any audit dispute provided to SCE's representative, within one hundred
eighty (180) calendar days following receipt by Vernon of SCE's notification of the
final Study costs.
//
-5-
11. Signature Clause: This Agreement shall become effective on the date the fully
executed Agreement and payment pursuant to Section 9 of this Agreement are received
by SCE. If SCE does not receive the fully executed Agreement and payment within
fifteen (15) calendar days of Vernon's receipt, then the offer reflected in this
Agreement will expire and this Agreement will be of no effect.
APPROVED
S''-A` " TT
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SOUTHERN CALIFORNIA EDISON COMPANY
LOW
ACCEPTED AND AGREED to this ql�-day of , 2008
CITY OF VERNON
Name:
Title:
ATTES .
By:
anuela Giron, City Clerk
TO FORM:
e-
AA jarrison, City Attorney
-6.
EXHIBIT A
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