1981 ADJ MTG MIN AUG 27 - Laserfiche WebLink

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Moved by Councilman Hayes, seconded by Councilwoman Garcia to approve Resolution 9 7 No. 4143. Unanimous vote. RESOLUTION NO. 4143 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON ADOPTING A BUDGET FOR THE FISCAL YEAR 1981-82. ELECTRIC UTILITY: S.C.P.P.A. Mr. Gale Drews, Electric Utility Director, introduced Mr. Alan Watts, Attorney for the Southern California Public Power Authority and Mr. Ronald Locher, of R.W. Beck and Associates - Engineers and Consultants. Mr. Drews stated both of these men are working with the City of Colton on the feasibility of the City participating in the Palo Verde Nuclear Generation Station. Attorney Alan Watts with the Santa Ana Law Firm of Rourke and Woodruff, addressed the Council stating he would present a brief historical review of SCPPA and their involvement with the Palo Verde Project. Mr. Watts reported that in November of 1980 the Southern California Public Power Authority was formed with all cities in Southern California involved in the transmission of power and the Imperial Irrigation Agency as members. Mr. Watts said the Authority was formed to conduct studies of power resources and SCPPA does finance the participation in those power resources that prove to be sound. N Mr. Watts said because SCPPA was formed as a Joint Power Agency, it has the authority to issue bond to finance projects and this is done when one or more members find a project they wish to participate in. Q Q Mr. Watts stated that among the various documents that will be forthcoming to the Council should Colton wish to participate in the Palo Verde Project, is a power sales contract. This power sales contract is between SCPPA and those members of the authority who wish to participate in the project, this obligates the contracting member to pay their share of SCPPA's bonded indebtedness for which they are contracting for. Mr. Watts said the power sales contract is the principle document as it provides for the security of the bonds which SCPPA shall secure. Attorney Watts said SCPPA does not have any of its own staff; contracts and other documents are drawn up on donated member staff time, such as Los Angeles, and the Water District. Mr. Watts said SCPPA has retained a Bond Counsel, R.W. Beck & Associates for Engineering and J.J. Lowery as Financial Advisors. Attorney Watts said he would now like to talk about the document that will be coming before the City Council at their next regular meeting. Mr. Watts reported the document to be presented is an Integrated Operations Agreement with Southern California Edison. Mr. Watts explained that the Council is aware that the City currently purchases all of its power from Edison, this Integrated Operations Agreement would permit the City of Colton to obtain power from resources, other than Edison, such as the Palo Verde Project. Mr. Watts said this establishes a new relationship between Colton and So. California Edison and it is realized the City is not going to be independent of Edison for some time in the future. Mr. Watts explained the Cities of Anaheim and Riverside have entered into this Integrated Agreement and this allows them to plan their power resources, to integrate and operate with Southern California Edison. Attorney Watts said by going this route, the cities receive a power credit on their bills from Edison whereby power purchased from resources other than Edison, show as power killowatts deducted from those purchased through Edison. City Attorney Edwards advised the Council that action on the Integrated Operations Agreement with Southern California Edison would not be required tonight and that this material was not before them as it was very lengthy and bulky. Attorney Watts briefly described the Palo Verde Nuclear Generating Project as being three plant units located west of the City of Phoenix each of which will generate 1,270 mega watts. Attorney Watts reported SCPPA has entered into an agreement with Salt River Project, who is an owner of the Palo Verde Project, to purchase 5.91% of their power and this comes out to 225 mega watts. Mr. Watts outlined the ownership of Palo Verde as being managed by the Arizona Public Service Company with a 29.1 % ownership interest, Salt River with a 29.1% interest, however, Salt River has agreed to sell SCPPA 5.91% and under separate agreement, has agreed to sell 5.7% to the Water & Power Co. of Los Angeles, other owners are Southern California Edison, Public Service Company of New Mexico and AUG 2 7 1981