1981 ADJ MTG MIN AUG 27 - Laserfiche WebLink

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9,q-1 Paso Electric. Mr. Watts explained the three generating plants are currently under construction and are expected to go on-line in May of 1983, 1985 and 1986 respectively. Mr. Watts continued that in regards to our association with the Salt River Project, they are an Agricultural District formed under the laws of the State of Arizona and as a public agency they serve water and power in the Phoenix metropolitan area. Mr. Watts said SCPPA has entered into an agreement with Salt, it is called an Assignment Agreement to buy the 5.91% and in addition they have agreed to deliver the SCPPA energy to two different points in Arizona, those being the Navajo and Mohave locations which are owned by Los Angeles. Los Angeles will then make deliverty to Victorville to the Lugo Enter - tie station owned by Edison and Edison will deliver it to Colton. Attorney Watts stated various transmission service agreements will be necessary in this chain of events. Mr. Watts reported that both Anaheim and Riverside have had similar agreements since 1977 and to the best of his knowledge, Anaheim has savings of approximately one million dollars per year due to purchase of non -verb energy power. Attorney Watts closed by saying three documents are before the Council tonight, however, they do not commit or obligate Colton to participate in the Palo Verde Project. Mr. Watts stated a resolution on the Negative Declaration prepared by SCPPA and filed in County Clerk's Office is to be considered, as well as, the ordinances regarding authorizing SCPPA to issue Bonds and Notes. Mr. Ron Locher of R. W. Beck, addressed the City Council saying they have, upon our request prepared estimates of power costs to the City of Colton if Colton purchases a share of Palo Verde power through SCPPA and for comparison purposes, they have also prepared estimates of power costs assuming that the City continues to purchase all of its power requirements from Southern California Edison. Mr. Locher stated the City presently proposes to purchase 1% or 2.250 killowatts and associated energy of SCPPA's proposed 225,00 KW entitlement in the Palo Verde Project. Mr. Locher reviewed Table 1 of the Study showing a summary of estimated power costs with Palo Verde power purchased vs purchase of all power from Edison; the table indicates that annual savings under the plan of purchasing Palo Verde power are expected to continually increase. Mr. Locher gave the estimated savings for the period 1984 through 1985 resulting from the purchase of Palo Verde power as $5,643,000. Discussion followed as to when the City would be able to offer financial relief to its citizens. Mr. Locher explained that the savings to be realized are not to be interpreted as a form of money to be rebated to the City, but rather, that these savings mean that the City will not have to continually raise its electric rates or that the rates will not increase as much or as rapidly. Mr. Locher said the City must resign itself that the cost of power is going to continue to rise. City Attorney Edwards introduced Resolution No. 4144 reading it as to number and title and reporting that this concerns our agreement with the SCPPA findings of a Negative Declaration. Mr. Edwards said the Planning Commission has reviewed this and they accept the findings. Moved by Councilman Hayes, seconded by Councilwoman Garcia, to approve Resolution No. 4144. Unanimous vote. RESOLUTION NO. 4144 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON CERTIFYING THAT IT HAS REVIEWED AND CONSIDERED THE NEGATIVE DECLARATION PREPARED BY THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY WITH RESPECT TO THE PURCHASE OF A 5.91 PERCENT INTEREST IN THE PALO VERDE NUCLEAR GENERAT- ING STATION, UNITS 1, 2 AND 3. City Attorney Edwards introduced Ordinance No. 1606 for second reading, reading it as to number and title. Mr. Edwards stated that it would be in order to pass a motion to waive further reading unless, the Council wished the ordinance read in full. Moved by Councilman Hayes, seconded by Councilwoman Garcia to waive full reading Ordinance No. 1606. Unanimous vote. Moved by Councilwoman Cisneros, seconded by Councilwoman Garcia, to adopt Ordinance No. 1606. Unanimous vote. ORDINANCE NO. 1606 - ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COLTON AUTHORIZING THE ISSUANCE OF POWER PROJECT REVENUE BONDS BY SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY. AUG 2 7 1981