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HomeMy WebLinkAboutCC Reso 2022-23 - Authorizing Execution of NCPA & Western Area Power Admin Contracts RESOLUTION 2022-23 RESOLUTION OF CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE EXECUTION OF CONTRACTS 2122-223 AND 2122-224 BETWEEN THE CITY OF UKIAH, NCPA AND WESTERN AREA POWER ADIMINISTRATION WHEREAS, the United States Department of Energy Western Area Power Administration Sierra Nevada Region (Western) markets the surplus generation and capacity from, and operates a high-voltage transmission system as a part of the Central Valley Project(CPV); and WHEREAS, this generation, capacity and transmission product(Base Resource) is marketed in accordance with the Western final 2025 Power Marketing Plan (Marketing Plan) as published in the Federal Register(82 FR 38675); and WHEREAS, the Marketing Plan provides that starting on January 1, 2025, Western will provide 98 percent of available CVP power to its existing customers, including the City of Ukiah, and Western has, under separate contract with the City of Ukiah executed on April 7, 2021, provided a percentage of the Base Resource consistent with the Marketing Plan; and WHEREAS,the City of Ukiah desires to assign its Base Resource percentage to Northern California Power Agency (NCPA)to enable NCPA to administer the City of Ukiah's Base Resource percentage jointly with other assigned NCPA Member Base Resource percentages, and to create a joint power resource portfolio for the City of Ukiah and other assigning Member; and WHEREAS, in order for the City of Ukiah to assign all or a portion of its Base Resource percentage to NCPA, the City of Ukiah is required to enter into a Request for Assignment of Base Resource Percentage Agreement between the City of Ukiah and NCPA, which is also subsequently approved by Western; and WHEREAS, in addition to the 2025 Base Resource Contract, since the City of Ukiah is electing to assign all of its Base Resource percentage to NCPA for joint administration, the City of Ukiah will also be required to execute the Assignment Administration Agreement(AAA) between the City of Ukiah and NCPA. The AAA sets forth the terms and conditions under which NCPA will administer the City of Ukiah's Base Resource percentage, and establishes the City of Ukiah's obligation to pay for all Base Resource costs incurred by NCPA as a result of the assignment; and NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah approves the Request for Assignment of Base Resource Percentage Agreement and Assignment Administration Agreement, and authorizes the City Manager to execute the Request for Assignment of Base Resource Percentage and Assignment Administration Agreement on behalf of the City of Ukiah. PASSED, ADOPTED and APPROVED this 20th day of April, 2022, by the following vote on roll call: AYES: Councilmembers Orozco, Crane, Rodin, Duenas, and Mayor Brown NOES: None ABSENT: None ABSTAIN: None ATTEST: im O. Brown, Mayor ristine Lawler, City Clerk /