CITY COUNCIL MEETING AGENDA January 2, 2024
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
January 2, 2024
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Janice Powell
Vice Mayor: Tena Eisenbeisz
Council Members: Justin Jones, Pamelyn Morgan, Greg Watkins
OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.org/meetings • Submit public comment electronically before the meeting to:
[email protected]. Public comment by email will be read into the record during consideration of the item the comment addresses. Each public comment will be limited to three minutes of reading. Include the item number you are commenting on in the subject line of the email. Once the vote has taken place on an item, no additional public comments will beaccepted.
• Submit public comment by mail addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019. Mailed comments must be received one day prior to the meeting to be included.
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Call to order (please place electronic devices on silent)
1.2 Statement for the record of Council Members present or absent
1.3 Pledge of Allegiance
1.4 Invocation
2.0 AWARDS & RECOGNITIONS:
2.1 Proclamation Acknowledging January 9th as Law Enforcement Appreciation Day.
3.0 PRESENTATIONS: None
CITY COUNCIL MEETING AGENDA January 2, 2024
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS: None
5.0 PUBLIC COMMENT:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the regular agenda, please address the Council when that item is open for public comment. Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies. Pursuant to The Brown Act, the City Council cannot take action on Public Comment Items.
6.0 CONSENT AGENDA:
The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.
6.1 Minutes of the Regular Meeting of December 19, 2023. (pg.7)
6.2 Payrolls: (pg.11)
PE 12/23/2023 PD 12/28/2023 $155,187,89
PE 12/29/2023 PD 12/29/2023 $15,639.21
6.3 Resolution approving an application for funding not to exceed $250,000 and the execution of a Grant Agreement from the Community Development Block Grant Mitigation Planning and Public Services Program for a Citywide Resiliency Plan. (pg.13)
6.4 Resolution approving a supplemental appropriation of $1,753,000 for the Caltrans Clean CA Local Grant for the Shasta Lake Community Parks Revitalization Project (pg.19)
6.5 Resolution approving a supplemental budget appropriation in the amount of $130,000.00 for the Water Treatment Plant (WTP) Filter No. 2 Rehabilitation CITY COUNCIL MEETING AGENDA January 2, 2024
Project and increase the construction contingency up in the amount of $20,000, bringing the total contract amount for the project to $60,000. (pg.23)
6.6 Resolution approving the Interconnected Operations Agreement with the Western Area Power Administration (WAPA) and authorizing the City Manager to sign the IOA on the City’s behalf. (pg.29)
7.0 PUBLIC HEARINGS:
7.1 Public Hearing for property owner protest balloting, approve the formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, confirm the Engineer’s report, assessment diagram and order of the levy and collection of assessments. (pg. 103)
Discussion and Possible Action to Approve the Following:
1. Resolution CC-2024-XX Declaring the Results of the Property Owner Protest Ballot Proceeding Conducted for the Levy of Assessments Related to the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Commencing in Fiscal Year 2023/2024; and
2. Resolution CC-2024-XX Approving the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Confirming the Engineer’s Report, the Assessment Diagram, and Ordering the Levy and Collection of Assessments Commencing in Fiscal Year 2023/2024.
Staff is requesting this item be continued to the regularly scheduled City Council meeting on February 20, 2024.
8.0 REGULAR AGENDA: None
9.0 STAFF COMMENTS:
10.0 CITY COUNCIL COMMENTS AND REPORTS:
This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported. Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
CITY COUNCIL MEETING AGENDA January 2, 2024
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.
ADJOURNMENT:
Meetings are broadcast on the Wednesday following the meeting at 6:00 PM and the following Friday at 2:00 PM on Charter Channel 181. Videos of meetings are also available through the City website: www.cityofshastalake.org In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
JANUARY 9, 2024
“NATIONAL LAW ENFORCEMENT APPRECIATION DAY”
WHEREAS, law enforcement officers play an integral part in our society, acting as guardians of our way of life and of our safety; and
WHEREAS, every day, hundreds of thousands of law enforcement officers across our country put on their badge and go to work knowing that they may face extremely dangerous situations; and WHEREAS, thousands of officers are injured in the line of duty each year, scores of officers die in the line of duty each year, and hundreds of officers commit suicide each year; and
WHEREAS, in light of recent negativity directed toward law enforcement nationally, there is a need to show law enforcement officers that our citizens recognize the difficult career they have chosen, in public service to us all.
NOW, THEREFORE, I, Janice Powell, Mayor of the City of Shasta Lake, on behalf of the City Council, citizens, and employees of the City, do hereby proclaim January 9, 2024, as National Law Enforcement Appreciation Day and encourage all citizens to show their support for our law enforcement officers.
Dated this 2nd day of January, 2024
JANICE POWELL, Mayor
5 6
CITY COUNCIL MEETING AGENDA November 7, 2023
MEETING OF THE CITY OF SHASTA LAKE CITY COUNCIL
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, DECEMBER 19, 2023, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 6:00 PM CALL TO ORDER – REGULAR SESSION
Mayor Powell convened the regular meeting at 6:00 PM
Council Members present: Eisenbeisz, Jones, Morgan, Powell, Watkins Pledge of Allegiance
Invocation
2.0 AWARDS & RECOGNITIONS
None
3.0 PRESENTATIONS
None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS
Kay Kobe with the Shasta Lake Chamber of Commerce announced the Community Christmas Lights Contest winners.
Greg Watkins, explained why SRTA turned down an awarded grant for a hydrogen fuel cell station.
5.0 PUBLIC COMMENT
Jim Mark commented on the denial of the SRTA grant and the need for body cameras for our police officers.
6.0 CONSENT AGENDA
The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.
6.1 Minutes of the Regular Meeting of December 5, 2023.
6.2 Information Items:
Checks, E-payments, and wires:
11/15/2023 $798,080.92
Payrolls:
PE 12/9/2023 PD 12/15/2023 $156,776.66
7 CITY COUNCIL MEETING AGENDA November 7, 2023
LAIF:
11/30/2023 $13,983,858.51
Chandler:
11/30/2023 $34,074,482.00
Motion/Vote:
Item 6.2 Chandler Report was pulled from the Consent Agenda for staff clarification at a future meeting.
Item 6.3 was pulled from the Consent Agenda for further discussion.
Item 6.4 was pulled from the Consent Agenda for further discussion.
By motion made/seconded (Watkins/Morgan), and carried, the consent agenda was approved.
6.3 Resolution CC 2023-84 to declare Bay Area Tree Specialists of San Jose, CA. the lowest, responsive, responsible bidder, and award a construction contract in the amount of $173,889 for the Lake Blvd. Tree Removal Project, and approve a total expenditure for construction not to exceed $209,000.
Motion/Vote:
Item was acted on separately after discussion. By motion made/seconded (Eisenbeisz/Jones), and carried, the item was approved.
6.4 Resolution CC 2023-85 Approving an Application for funding not to exceed $2,500,000 and the execution of a Grant Agreement from the Community Development Block Grant Mitigation Resilience Infrastructure Program for the design, engineering, and construction of phase one of the Lake Boulevard water transmission line.
Motion/Vote:
Item was acted on separately after discussion. By motion made/seconded (Watkins/Eisenbeisz), and carried, the item was approved.
7.0 PUBLIC HEARINGS
None
8.0 REGULAR AGENDA
8.1 Discussion and possible action accept and endorse the AT HOME Shasta 2023- 2025 Action Plan established by staff and AT HOME Ad Hoc committee members. 8 CITY COUNCIL MEETING AGENDA November 7, 2023
Public comment was made by Patrick Henry Jones, Board of Supervisors.
Motion/Vote:
By motion made/seconded (Watkins/Eisenbeisz), and carried, to endorse the AT HOME Shasta 2023-2025 Action Plan.
8.2 Mayor’s annual appointments to Committees/Commissions/Boards Motion/Vote:
By motion made/seconded (Eisenbeisz/Jones), and carried, to accept the Mayor’s annual appointments.
8.2 Resolution CC 2023-86 authorizing the closeout of CDBG Grant No. 18- CDBG012918 Housing Rehab Loan.
Motion/Vote:
By motion made/seconded (Eisenbeisz/Morgan), and carried, Resolution CC 2023-86 was approved.
9.0 STAFF COMMENTS
City Manager Jessaca Lugo announced that there would be a free dump day on January 20th.
The Summit City sewer feasibility study and presentation is anticipated to come before City Council on February 6, 2024.
10.0 CITY COUNCIL COMMENTS AND REPORTS:
• Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.
11.0 ADJOURNMENT
With no further business, Mayor Powell adjourned the meeting at 7:56 pm. ____________________________
Charity Tatlow, Deputy City Clerk
9 10
11 12
Report and Recommendations 6.2
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager DATE: January 2, 2024
SUBJECT: RESOLUTION APPROVING AN APPLICATION FOR FUNDING NOT TO EXCEED $250,000 AND THE EXECUTION OF A GRANT
AGREEMENT FROM THE COMMUNITY DEVELOPMENT BLOCK
GRANT MITIGATION PLANNING AND PUBLIC SERVICES
PROGRAM FOR A CITYWIDE RESILIENCY PLAN
FILE NO.: NEW FILE (under G-100-050)
RECOMMENDATION:
Staff recommends the City Council approve a resolution authorizing an application for funding not to exceed $250,000 and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State Community Development Block Grant (CDBG) Mitigation Planning and Public Services (MIT-PPS) Program for a Citywide Resiliency Plan.
BACKGROUND
In response to the California wildfires of 2018, resulting in the Carr, Mendocino Complex, Camp, and Woolsey Fires, on January 6, 2021, the U.S. Department of Housing and Urban Development (HUD) released Federal Register Notice 86 FR 561 that allocated an additional $64,907,000 of Community Development Block Grant (CDBG) mitigation funds to the State of California. The California Department of Housing and Community Development (HCD) has dedicated approximately $10 million of those funds to create the Planning and Public Services Program (MIT-PPS). The purpose of the program is to assist communities with Mitigation-related planning and public service needs to support risk reduction from the three primary hazards (wildfire, flooding, and earthquakes). 13 HCD released a Notice of Funding Availability (NOFA) on November 14, 2023 for the 20172018 CDBG MIT-PPS program. The NOFA details program funding and eligibility as follows:
The City of Shasta Lake is eligible to apply under the 2018-MIT-PPS Program.
Applications are first come, first served until all funds are expended, and no later than March 29, 2024. There is no limit to the number of Project Applications an Eligible Applicant can submit; however, there is a $1,500,000 cap on per-project funding and a minimum award of $125,000. There is no match funding required for this program.
Project Details
The City would like to apply for $250,000 in MIT-PPS funding for a Citywide Resiliency Plan. The Resiliency Plan would implement provisions within the City’s Local Hazard Mitigation Plan, identify capital projects, and provide preliminary engineering, cost estimates, and environmental review for identified projects. Anticipated projects addressed in the Plan could include evacuation routes, drainage improvements, and road network deficiencies. Data provided in the Resiliency Plan would be utilized as funding opportunities become available for identified projects. 14 FISCAL IMPACT
No fiscal impact. If funding is awarded, a supplemental appropriation to the budget will be brought to the City Council for review and approval.
ATTACHMENTS
Resolution CC-2024-XX
DISTRIBUTION
City Council
15 APPENDIX D
Department of Housing and Community Development
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA Resolution of the Governing Body
Applicants are required to use this Resolution in content and form.
RESOLUTION NO.__
A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE
EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023-2024 FUNDING YEAR OF THE STATE CDBG MITIGATION (CDBGMIT) RESILIENT PLANNING AND PUBLIC SERVICES (MIT-PPS) PROGRAM BE IT RESOLVED by the of the of [ENTER JURISDICTION
NAME]_______________________________________ as follows:
SECTION 1:
The has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $______________ for the following CDBG-MIT activities, pursuant to the 2017/2018 CDBG MIT-PPS, and MIT-RIP NOFA:
List activities and amounts (activity totals should include Activity Delivery dollars and General Administration associated with the activity)
Activity (i.e. Public Services, Planning) Dollar Amount Being Requested for the Activity
$
$
$
$
SECTION 2:
The acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
No.
16 APPENDIX D
Department of Housing and Community Development
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA SECTION 3:
The hereby authorizes and directs the (ENTER TITLE OF DESIGNATED OFFICIAL) ___________________, or designee*, to execute and deliver all applications and act on the Choose Type’s behalf in all matters pertaining to all such applications.
SECTION 4:
If an application is approved, the , or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant.
SECTION 5:
If an application is approved, the , or designee, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.
* Important Note: If the designee is signing any application, agreement, or any other document on behalf of the designated official of the City/County, written proof of designee authority to sign on behalf of such designated official must be included with the Resolution, otherwise the Resolution will be deemed deficient and rejected.
Additionally, do not add limitations or conditions on the ability of the signatory or signatories to sign documents, or the Resolution may not be accepted. If more than one party’s approval is required, list them as a signatory. The only exception is for county counsel or city attorney to approve as to form or legality or both, IF such approval is already part of the standard city/county signature block as evidenced by the signed Resolution itself. Inclusions of additional limitations or conditions on the authority of the signer will result in the Resolution being rejected and will require your entity to issue a corrected Resolution prior to the Department issuing a Standard Agreement. 17 APPENDIX D
Department of Housing and Community Development
Revised 02/03/23 2017/2018 CDBG MIT-PPS and MIT-RIP NOFA PASSED AND ADOPTED at a regular meeting of the of the
of ___________ held on ________ by the following vote:
Instruction: Fill in all four vote-count fields below. If none, indicate “0” for that field.
AYES: _____
ABSENT: _____
__________________________________________
Name, City/County Clerk of the City/County of
_____________________, State of California
By: _____________________________________
Note: The attesting officer cannot be the person identified in the Resolution as the authorized signer.
STATE OF CALIFORNIA
City/County of ________________
I, __________________, City/County Clerk of the City/County of ________________, State of California, do hereby attest and certify the foregoing Resolution to be a full, true and correct copy of a resolution duly passed and adopted on the date stated thereon and that said Resolution has not been amended, modified, repealed, or rescinded since the date of adoption and is in full force and effect as of this ___ day of _____________, 20____. 20
NOES: _____
ABSTAIN: _____
_________________________________
Janice Powell, Mayor
City of Shasta Lake City Council
18 Report and Recommendations 6.3
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Whitney Zeller, Community and Economic Development Manager DATE: January 2, 2024
SUBJECT: Resolution approving a supplemental appropriation of $1,753,000 for the Caltrans Clean CA Local Grant for the Shasta Lake Community Parks Revitalization Project
FILE NO.: NEW FILE NUMBER
RECOMMENDATION:
Staff recommends the City Council approve a supplemental budget appropriation in the amount of $1,753,000 for the Shasta Lake Community Parks Revitalization Project, funded by the Caltrans Clean California Local Grant Program.
BACKGROUND
The Clean California initiative is a multiyear clean-up effort led by Caltrans to keep roads and waterways free of litter, create jobs, and transform state and local public spaces through beautification efforts. The City was awarded $1,753,000 through this program for the Community Parks Revitalization Project, which includes a covered picnic pavilion and new restroom facilities at Margaret Polf Park and a covered picnic pavilion, restroom facility, and Community Spirit Parkway at the Civic Center Campus.
The City Council approved to execute agreements with Caltrans for the project at their October 17, 2023 meeting. With the funding approved after the adoption of the current budget, a supplemental appropriation is required to add it to the City’s budget.
FISCAL IMPACT
Supplemental appropriation not to exceed $1,753,000
The project is 100% grant-funded
19 ATTACHMENTS
Resolution CC-2024-XX
DISTRIBUTION
City Council
Finance Department
20 RESOLUTION NO CC-2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPROVING A SUPPLEMENTAL APPROPRIATION OF $1,753,000 FOR THE SHASTA LAKE COMMUNITY
PARKS REVITALIZATION PROJECT FUNDED BY THE CLEAN CA LOCAL GRANT
PROGRAM
WHEREAS, Caltrans’ Clean California Local Grant Program provides funds to local communities to beautify and improve local streets and roads, tribal lands, parks, pathways, and transit centers; and
WHEREAS, Caltrans has awarded the City of Shasta Lake $1,753,000 to complete the Shasta Lake Community Parks Revitalization Project; and
WHEREAS, the City will utilize the funding to complete the project within the identified scope; and WHEREAS, the City and Caltrans have executed a Restricted Grant Agreement; and WHEREAS, the Restricted Grant Agreement was received after the FY2023/24 budget; and WHEREAS, this project is funded from the following program fund:
Clean CA Local Grant Program – CCL-5474-021
Expenditure Account: 270-109-XXXX - $1,753,000
Revenue Account: 270-000-XXXX - $1,753,000
NOW THEREFORE, the City Council of the City of Shasta Lake hereby:
Approves a supplemental appropriation in the amount of $1,753,000 PASSED, APPROVED, AND ADOPTED this 2nd day of January, 2024 by the following vote:
AYES:
NOES:
ABSENT:
JANICE POWELL, Mayor
ATTEST:
CHARITY TATLOW
City Clerk
21 22
Report and Recommendations 6.4
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: William Bond, City Engineer / Public Works Director DATE: January 2, 2024
SUBJECT: Construction Contract Contingency Increase
Supplemental Budget Appropriation
WTP Filter No. 2 Rehabilitation Project – Bid No. 2023-07 FILE NO.:
RECOMMENDATION:
Staff requests that the City Council consider a supplemental budget appropriation in the amount of $130,000.00 for the Water Treatment Plant (WTP) Filter No. 2 Rehabilitation Project and increase the construction contingency up in the amount of $20,000, bringing the total contract amount for the project to $60,000.
BACKGROUND:
The WTP Filter No. 2 Rehabilitation project was awarded to ERS Industrial Services, Inc. (ERS) on September 19, 2023 via Resolution CC-2023-061 in amount of $31,100.00 and approved a total of $40,000.00 to allow for a contract contingency.
The increase in construction contingency is requested due to unknown damage to the air header diffusers when the media was removed. To remedy the air header, a change order was issued to ERS to make the appropriate repairs to ensure the filter will function properly and continue to provide safe and clean potable water.
The project requires that ERS remove the filter media and screens and replace with City furnished media and screens. Due to the long lead time to obtain the media and screens, the City purchased the material and equipment several months in advance of the contract award. The City furnished materials, along with the construction contract exceeded the approved budgeted amount ($150,000.00), thus the request for supplemental budget appropriation in the amount of $130,000.00. The pre-purchased media and screens cost approximately $216,000.00. Staff did not anticipate the increased costs of the media (clarifier beads) and screens when preparing the budget for approval in 2022. 23 FISCAL IMPACTS:
The supplemental will come from Water Capital Reserves (510-340) ATTACHMENTS:
Resolution, CC-2023-061 Contract Award
DISTRIBUTION:
City Council
24 RESOLUTION CC 2024-xx
________________________________________________________________________________
A RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL TO APPROVE A CONTRACT
CONTINGENCY INCREASE FOR ADDITIONAL WORK ON THE WATER TREATMENT PLANT FILTER NO.2 REHABILITATION PROJECT IN THE AMOUNT OF $20,000, BRINGING THE TOTAL CONTRACT AMOUNT FOR THE PROJECT TO $60,000 AND A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $130,000 FOR INCREASE IN PROJECT COSTS
________________________________________________________________________________ WHEREAS, on September 19, 2023 the City Council awarded a construction contract to ERS Industrial Services, Inc. in the amount of $40,000 via Resolution CC 2023-061; and WHEREAS, Additional work is required to the Water Treatment Plant Filter No. 2. to maintain safe and clean drinking water; and
WHEREAS, the Water Treatment Plant Filter No. 2 project was approved by Council as a Capital Improvement Project on June 21, 2022 via Resolution CC 2022-072 in the amount of $150,000; and WHEREAS, the materials and construction costs for the project has exceeded the budgeted amount.
NOW, THEREFORE, BE IT RESOLVED THAT the City of Shasta Lake City Council hereby:
Approves a contract contingency increase of $20,000 for the Water Treatment Plant Filter No. 2 Rehabilitation project, bringing the total contract amount to $60,000 and a Supplemental Budget Appropriation in the amount of $130,000 for increase in materials cost.
PASSED, APPROVED, AND ADOPTED this 2nd day of January 2024, by the following vote:
AYES:
NOES:
ABSENT:
JANICE POWELL, MAYOR
ATTEST:
Charity Tatlow, Deputy City Clerk
25 Report and Recommendations 4.X
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Will Bond, City Engineer/Public Works Director
DATE: September 19, 2023
SUBJECT: Construction Contract Award
WTP Filter No. 2 Clarifier Rehabilitation - Bid No. 2023-07 FILE NO.:
RECOMMENDATION:
Staff requests that the City Council consider awarding the WTP Filter No. 2 Clarifier Rehabilitation project to ERS Industrial Services Inc. of Fremont, CA in the amount of $31,100.00 and approve a total of $40,000.00 to allow for a contract contingency.
BACKGROUND:
The WTP Filter No. 2 Clarifier Rehabilitation project is being constructed to replace the clarifier media in one of the Microfloc Trident TR-840A tri-media gravity filters at the City’s water treatment plant. The City has prepurchased the new media and media retention screens; the Contractor will be responsible for removing and replacing the media and installing the screens, along with other miscellaneous work.
The City advertised the project for bid on July 31, 2023 and two (2) bids were received on September 7, 2023. The low bid of $31,100 was approximately 22% below the Engineer’s Estimate of $40,000, and the high bid of $50,200 was approximately 25% above the Engineer’s Estimate. A Bid Summary is attached.
FISCAL IMPACTS:
This project is funded through currently budgeted water utility funds (510-340).
ATTACHMENTS:
Project Exhibit, Resolution, and Bid Summary
DISTRIBUTION:
City Council
26 PROJECT EXHIBIT
27 28
Report and Recommendations 6.5
Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: James Takehara, Electric Utility Director
DATE: January 2, 2024
SUBJECT: Request for Approval of Interconnected Operations Agreement with the Western Area Power Administration
FILE NO.: New
RECOMMENDATION:
Staff recommends the City Council adopt a resolution that approves the Interconnected Operations Agreement (IOA) with the Western Area Power Administration (WAPA) and authorizes the City Manager to sign the IOA on the City’s behalf.
BACKGROUND
The City of Shasta Lake (City) operates an electric utility whose powerline assets tie into power facilities owned and operated by WAPA. It is standard industry practice for parties with connected electric grids to enter into several contracts that establish “good neighbor” practices, since actions from one party could adversely affect the other. One such good neighbor contract between City and WAPA is the Interconnected Operations Agreement.
The current IOA between the City and WAPA (Contract 04-SNR-00849) will expire at the end of 2024 after its twenty-year term. Both City and WAPA have mutually agreed, subject to City Council approval, to continue the IOA practices by entering into a replacement contract (Contract 23-SNR-02977, attached), which would run concurrently with the 30-year Contract for Base Resource (i.e., Federal hydropower), which was approved by Resolution CC-21-11. The IOA provisions can be summarized to a few principles that both parties: (a) will follow good utility practice, (b) will pay for any costs it causes, and (c) will communicate with the other if there are any significant regulatory or 29 operational changes that could foreseeably impact others. There is little difference between the IOA expiring in 2024 and the new, proposed IOA attached. Much of the detailed obligations of the IOA are administered by the City of Redding as part of the Master Agreement for Power Management Services.
FISCAL IMPACT
There is no new fiscal impact associated with signing the attached IOA relative to the current IOA. Today, costs associated with the IOA amount to about $10,000 per month, which are included in the annual budget. Staff does not expect significant changes to IOA-related costs or budgetary practices when administering the attached IOA.
ATTACHMENTS
Resolution CC-2024-XX
WAPA Contract 23-SNR-02977 (IOA)
DISTRIBUTION
City Council
30 RESOLUTION NO CC-2024-XX
A RESOLUTION BY THE CITY OF SHASTA LAKE CITY COUNCIL APPROVING
THE INTERCONNECTED OPERATIONS AGREEMENT WITH
THE WESTERN AREA POWER ADMINISTRATION
WHEREAS, the City of Shasta Lake (City) operates an electric utility whose powerline assets are connected to powerline assets of the Western Area Power Administration (WAPA), a division of the Department of Energy of the United States of America; and WHEREAS, the City and WAPA are signatory to numerous contracts, including an Interconnected Operations Agreement (IOA) Contract 04-SNR-00849 that acts as a master agreement that addresses several “good neighbor” practices related to the interconnection of powerline assets to each other’s respective electric systems; and WHEREAS, the existing IOA, Contract 04-SNR-00849, expires on December 31, 2024; and
WHEREAS, the City of Shasta Lake and Western Area Power Administration desire to enter into a replacement IOA, Contract 23-SNR-02977, with contract term January 1, 2025 through December 31, 2034.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake approves the Interconnected Operations Agreement, Contract 23-SNR-02977, with the Western Area Power Administration and authorizes the City Manager to execute and administer the contract throughout its term on the City’s behalf.
PASSED, APPROVED, AND ADOPTED this 2nd day of January 2024 by the following vote:
AYES:
NOES:
ABSENT:
JANICE POWELL, Mayor
ATTEST:
CHARITY TATLOW
Deputy City Clerk
31 Contract 23-SNR-02977
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
INTERCONNECTED OPERATIONS AGREEMENT
WITH
CITY OF SHASTA LAKE
32 Contract 23-SNR-02977
Contract 23-SNR-02977 i
UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
INTERCONNECTED OPERATIONS AGREEMENT
WITH
CITY OF SHASTA LAKE
Section Table of Contents Page
1. Preamble................................................................................................................. 1
2. Explanatory Recitals ............................................................................................... 1
3. Agreement............................................................................................................... 3
4. Effective Date, Term, and Termination.................................................................... 3
5. Definitions ............................................................................................................... 4
6. Sub-Balancing Authority Standard ........................................................................ 13
7. Interconnection...................................................................................................... 13
8. Significant Regulatory or Operational Change ...................................................... 13
9. Planning Standard................................................................................................. 16
10. Operations............................................................................................................. 16
11. Metering ................................................................................................................ 29
12. Billing And Payment .............................................................................................. 32
13. Severability............................................................................................................ 35
14. Modification of This Contract................................................................................. 35
15. Exhibits.................................................................................................................. 35
16. Records and Audits............................................................................................... 36
17. Relationship of the Parties .................................................................................... 36
18. Non-Dedication of Facilities................................................................................... 37
19. Governing Law ...................................................................................................... 37
20. Default................................................................................................................... 37
21. Notices .................................................................................................................. 37
22. Dispute Resolution ................................................................................................ 38
23. General Power Contract Provisions ...................................................................... 39
24. Authority To Execute............................................................................................. 39
25. Execution by Counterparts.................................................................................... 39
26. Electronic Signatures ............................................................................................ 39 33 Contract 23-SNR-02977
Contract 23-SNR-02977 ii
Signature Clause
Exhibit A – City of Shasta Lake Net Interchange Determination Exhibit B – Scheduling Procedures
Exhibit C – Reserve Obligations
Exhibit D – Maximum Deviation Band Calculation
Exhibit E – Notices
General Power Contract Provisions
Schedule of Rate for Regulation and Frequency Response Service, CV-RFS4 Schedule of Rate for Energy Imbalance Service, CV-EID5
Schedule of Rate for Generator Imbalance Service, CV-GID2 Schedule of Rate for Energy Imbalance Market Energy Imbalance Service, CV-EIM4S Schedule of Rate for Energy Imbalance Market Generator Imbalance Service, CVEIM9S 34 Contract 23-SNR-02977
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UNITED STATES
DEPARTMENT OF ENERGY
WESTERN AREA POWER ADMINISTRATION
SIERRA NEVADA REGION
INTERCONNECTED OPERATIONS AGREEMENT
WITH
CITY OF SHASTA LAKE
1. PREAMBLE:
This Contract, made this pursuant to the Acts of Congress approved June 17, 1902 (32 Stat. 388); August 4, 1977 (91 Stat. 565); and Acts amendatory or supplementary to the foregoing Acts; between the UNITED STATES OF AMERICA, acting by and through the Administrator, Western Area Power Administration, Department of Energy, hereinafter called WAPA, represented by the officer executing this Contract or a duly appointed successor, hereinafter called the Contracting Officer, and City of Shasta Lake, a general law city, organized and existing under the laws of the State of California, hereinafter called Shasta Lake, its successors and assigns; each sometimes individually called Party, and all sometimes collectively called Parties.
2. EXPLANATORY RECITALS:
2.1 WAPA is a power marketing administration of the Department of Energy that has established a contract based Sub-Balancing Authority Area within the Balancing Authority of Northern California (BANC).
2.2 Shasta Lake operates an Electric Power System in northern California. 35 Contract 23-SNR-02977
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2.3 Shasta Lake operates an Electric Power System with physical ties to WAPA’s Sub-Balancing Authority Area, schedules deliveries of power from WAPA, and imports to and exports from WAPA’s Sub-Balancing Authority Area.
2.4 As a result of Shasta Lake's Electric Power System being located within WAPA's Sub-Balancing Authority Area, WAPA may, by default or otherwise, perform certain services for Shasta Lake.
2.5 On April 3, 2019, BANC, as the Energy Imbalance Market (EIM) Entity, and Sacramento Municipal Utility District (SMUD), as an EIM Participating Resource, commenced operating in the California Independent System Operator’s (CAISO) EIM; and on March 25, 2021, the Modesto Irrigation District (MID), the City of Redding (Redding), and the City of Roseville (Roseville), along with WAPA began to participate in EIM.
2.6 MID, Redding, Roseville and City of Shasta Lake are herein after collectively called the “IOA Customers”.
2.7 The Parties are currently operating under the terms and conditions of Contract 04-SNR-00849, which terminates on December 31, 2024.
2.8 The Parties wish to continue their contractual relationship and provide the vehicle to establish the operational rights and obligations of the Parties, identify the services provided, and provide for compensation for the services rendered under the terms and conditions contained in this Contract.
2.9 Shasta Lake has executed a Transmission Service Agreement and/or a Contract for Interconnection.
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3. AGREEMENT:
The Parties agree to the terms and conditions set forth herein.
4. EFFECTIVE DATE, TERM, AND TERMINATION:
This Contract shall be effective January 1, 2025, and, subject to prior termination pursuant to Sections 4.1 through and including 4.4 hereof, shall remain in effect through December 31, 2034.
4.1 Shasta Lake may terminate this Contract upon one (1) year advance written notice given to WAPA. Such notice shall include the identity of the Balancing Authority Area into which Shasta Lake will move or a statement that Shasta Lake will become a Western Electricity Coordinating Council (WECC) recognized Balancing Authority, the proposed actions that are necessary to accomplish the movement or to become a Balancing Authority, and the proposed timetable for such actions. If Shasta Lake’s proposed actions require WAPA to reprogram its internal systems, Shasta Lake would be responsible for WAPA’s costs to perform these actions.
4.2 WAPA may terminate this Contract upon one (1) year advance written notice given to Shasta Lake if WAPA determines that it cannot reasonably continue to provide the services covered by this Contract.
4.3 Either Party may terminate this Contract if the other Party defaults pursuant to Section 20.
4.4 In the event of termination, Shasta Lake, at its own expense, shall make arrangements for and move into another Balancing Authority Area or form its own Balancing Authority.
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If Shasta Lake fails to make such arrangements, WAPA, at its election, may require Shasta Lake to take service under the terms and conditions of the applicable tariffs developed by WAPA through a public process.
5. DEFINITIONS: The following terms, whether in the singular or the plural, when initially capitalized and used in this Contract shall have the meanings specified:
5.1 “Adverse Impact” means an impact on a Party’s Electric Power System resulting from a Modification or new facility addition to the other Party’s Electric Power System that: (1) materially degrades reliability of a Party’s Electric Power System; or (2) materially reduces the Party’s ability to conduct power transfers into or out of its Electric Power System.
5.2 “Automatic Generation Control” means equipment which automatically adjusts generation from a central location to maintain an entity’s system interchange schedule, plus frequency bias obligation, if any.
5.3 “Balancing Authority” means the responsible entity that integrates resource plans ahead of time, maintains demand and resource balance within a Balancing Authority Area, and supports the frequency of the interconnection in real time.
5.4 “Balancing Authority Area” means the collection of generation, transmission, and loads within the metered boundaries of the Balancing Authority.
5.5 “Balancing Authority Operator” means the entity responsible for operating a Balancing Authority that performs all duties for such an entity as specified by ///
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applicable North American Electric Reliability Corporation (NERC) and Western Electricity Coordinating Council (WECC) documents.
5.6 “Business Day” means any day other than Saturday, Sunday, or a legal public holiday as designated in Section 6103 of Title 5, U.S. Code or by Executive Order or federal statute or any WECC designated holidays.
5.7 “Contract” means this Contract for interconnected operations between WAPA and Shasta Lake.
5.8 “Contract for Interconnection” means Contract 23-SNR-02977 or its successor, between WAPA and Shasta Lake for interconnection of the Parties’ Electric Power Systems.
5.9 “Dispatch Instruction” means an instruction by the Market Operator (MO) for an action with respect to a specific resource participating in EIM for increasing or decreasing its energy supply or demand.
5.10 “Dispatch Operating Target (DOT)” means the expected operating point, in megawatts (MW), of a resource participating in EIM that has received a Dispatch Instruction from the MO. The Dispatch Operating Target means the MW output of a resource participating in EIM due to an EIM bid being accepted and the participating resource receiving a Dispatch Instruction.
5.11 “Electric Power System” means all properties and assets that are owned by either Party, including any interests in jointly-owned facilities, such as the California-Oregon Transmission Project, and that are used for or pertain to the generation, transmission, transformation, control, or distribution of electric power, 39 Contract 23-SNR-02977
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including all additions, replacements, extensions, expansions, improvements, and betterments thereto, and equipment associated therewith. Communication systems and equipment associated with the operation of the Electric Power System shall be included as part of the Electric Power System. To the extent that either Party is not the sole owner of an asset or property, only that Party’s ownership or entitlement interest in such asset or property shall be considered part of its Electric Power System.
5.12 “Emergency” means any abnormal system condition that requires automatic or immediate manual action to prevent or limit the failure of transmission facilities or generation supply that could adversely affect the reliability of the Bulk Electric System. Insufficient prime mover energy, fossil fuel, or other shortages of prime-mover energy shall not be considered an Emergency unless such insufficiency or shortage is the result of an Uncontrollable Force.
Drought shall not be considered an Emergency. In addition, losses or interruptions resulting from the following events shall not be considered an Emergency: (1) Dispatchable or non-dispatchable generating resources having recurring or chronic operational, maintenance, or contractual problems, (2) failures of dispatchable generating resources to start up on demand, (3) failures of non-dispatchable generating resources to produce power to meet their scheduled output, (4) pre-scheduled curtailments or pre-scheduled interruptions of power or transmission service, (5) curtailments or interruptions of power or transmission service that occur with advance notice of at least one hour, or (6) curtailments or interruptions of power or transmission service that occur without notice where such curtailment or interruption can reasonably be expected and should be planned for consistent with Good Utility Practice. In determining whether a Party has suffered a bona-fide Emergency, especially regarding whether a particular curtailment or interruption of service could reasonably have 40 Contract 23-SNR-02977
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been anticipated by that Party, the other Party shall give due consideration to the standards applicable to planning for contingencies in keeping with Good Utility Practice and the standard set forth in Section 9 hereof.
5.13 “Energy Imbalance Market (EIM) Entity” means a Balancing Authority that enters into the MO’s EIM Entity Agreement to enable the EIM to occur in its Balancing Authority Area. BANC is the EIM Entity for the BANC EIM Entity Balancing Authority Area. For the purpose of this IOA, the EIM Entity is the BANC EIM Entity or the entity selected by the BANC EIM Entity who is certified by the MO. WAPA and Shasta Lake,(or its agent), participate in the CAISO EIM under the BANC EIM Entity.
5.14 “FERC” means the Federal Energy Regulatory Commission or its successor.
5.15 “Forced Outage” means any full or partial unplanned outage of a Party's generating resources and/or transmission/sub-transmission facilities.
5.16 “Good Utility Practice” means any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. ///
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5.17 “Interconnection Facilities” means each Point of Interconnection and the facilities and equipment supporting it as determined consistent with Good Utility Practice (e.g., circuit breakers, protective devices, relays, and metering).
5.18 “Interruptible Energy” means Energy which is subject to curtailment for any reason with or without advance notification by the supplier/receiver.
5.19 “Locational Marginal Pricing (LMP)” means the CAISO calculated marginal cost ($/MWh) of serving the next increment of demand at that Pricing Node consistent with existing transmission constraints and the performance characteristics of resources.
5.20 “Market Operator (MO)” means the entity responsible for operation, administration, settlement, and oversight of the EIM. The CAISO is the current MO of EIM.
5.21 “Maximum Deviation Band” means the maximum megawatt, averaged over each five (5) minute interval, deviation of metered energy relative to EIM DOTs allowed, both positive (over generation) and negative (under generation), within which deviations are accounted for, as specified in Section 10.6.4 hereof.
5.22 “Most Severe Single Contingency (MSSC)” means the generating capacity equal to the greater of: (1) the largest, single on-line generating resource; (2) the sum of a utility’s on-line generating resources or purchases of firm power served by a single transmission circuit; or (3) the loss of a credible single or multiple system element(s) consistent with WECC practices.
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5.23 “NERC” means the North American Electric Reliability Corporation or successor agency.
5.24 “Points of Interconnection or (POI)” means those places on the transmission system where facilities are established to connect the Electric Power System of WAPA with the Electric Power System of Shasta Lake and the Electric Power Systems of Third Parties to the Electric Power System of Shasta Lake. The Points of Interconnection are made up of Points of Receipt (POR) and Points of Delivery (POD) as typically recognized by NERC in the Transmission System Information Networks (TSIN) Registry.
5.25 “Pricing Node (PNode)” means a single network node or subset of network nodes where a physical injection or withdrawal is modeled by the CAISO and for which the CAISO calculates an LMP that is used for financial settlements by the CAISO and the EIM Entity.
5.26 “Reserves”
5.26.1. “California-Oregon Intertie (COI) Mitigation Reserves” means generation (synchronized or capable of being synchronized to the system) that is fully available to serve load within the disturbance recovery period following the contingency event.
5.26.2. Contingency Reserves” means the provision of capacity that may be deployed by the Balancing Authority to respond to a Balancing Contingency Event and other contingency requirements (such as Energy Emergency Alerts as specified in the associated EOP standard). A Balancing Authority may include in its restoration of Contingency Reserve readiness to reduce Firm Demand and include it if, and only if, the Balancing Authority:
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5.26.2.1. Is experiencing a Reliability Coordinator declared Energy Emergency Alert level and is utilizing its Contingency Reserve to mitigate an operating emergency in accordance with its emergency Operating Plan.
5.26.2.2. Is utilizing its Contingency Reserve to mitigate an operating emergency in accordance with its emergency Operating Plan.
5.26.3. “Frequency Response Reserves” means Spinning Reserve that responds automatically to frequency deviations, due to the unit’s governor, within thirty (30) seconds of the event and sustains response for at least one (1) minute.
5.26.4. “Spinning Reserve” means unloaded generation which is synchronized to the system and ready to serve additional demand.
Frequency Response Reserves fall under this category.
5.27 “Scheduled Maintenance” means an outage for overhaul, repair, or maintenance of a Party’s generating units or Transmission Facilities or SubTransmission Facilities that are coordinated and scheduled in advance.
5.28 “Shasta Electric Dispatch Center” means Shasta Lake’s primary dispatch center. If this facility is not manned 24 hours per day, Shasta Lake will be responsible for designating the after-hour’s point-of-contact.
5.29 “Shasta Net Interchange” means the calculations as set forth in Exhibit A.
5.30 “Shasta Lake System Load” means the summation of all Shasta Lake’s net internal metered generation minus the total net power flows at all Points of 44 Contract 23-SNR-02977
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Interconnection where power flow into Shasta Lake’s Electric Power System are a negative value and power flow out of Shasta Lake’s Electric Power System are a positive value. Net power flows will include dynamic schedules and pseudo ties.
5.31 “Significant Operational Change” means any operational change proposed by a Party that could reasonably be expected to significantly affect the other Party’s Electric Power System or Balancing Authority. Actions taken by the Balancing Authority operator which may cause a significant change in the way a Party operates or must operate its Electric Power System or Balancing Authority or the Points of Interconnection between the Parties. Significant Operational Changes include but are not limited to the following:
5.31.1. The connections of a generator or group of generators with capacity of greater than 25 MW on Shasta Lake’s Electric System;
5.31.2. Load connections greater than 25 MW on Shasta Lake’s Electric System;
5.31.3. Transmission line construction, re-enforcements, upgrades, downgrades at voltages greater than 70 kV on Shasta Lake’s Electric System; or
5.31.4. Modifications to WAPA’s Electric System that would limit or prevent WAPA from providing service to Shasta Lake under the terms of this agreement.
5.32 “Significant Regulatory Change” means any course of action ordered by Congress, the President of the United States, or by a Federal Executive Branch Agency, including the Department of Energy, directive or State of California directive that significantly affects the ability of either Party to fulfill its obligations under this Contract.
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5.33 “Sub-Balancing Authority” means an Electric Power System operating within a host Balancing Authority that is bounded by meters and is responsible for Balancing Authority-like performance of generation, load, and transmission.
5.34 “Sub-Transmission Facility” means an interconnected group of lines and associated equipment for the movement or transfer of electric energy between points of supply and points at which it is transformed for delivery to customers or is delivered to other electric systems at voltages generally between 33 kV and up to 100 kV.
5.35 “System Operations Center (SOC)” means WAPA’s dispatch center located in Folsom, California. May also be referred to as Folsom Dispatch Office (FDO).
5.36 “Third Party” means a person or entity other than WAPA or Shasta Lake.
5.37 “Transmission Facility” means an interconnected group of lines and associated equipment for the movement or transfer of electric energy between points of supply and points at which it is transformed for delivery to customers or is delivered to other electric systems at voltages generally above 100-kV.
5.38 “Uncontrollable Force” means any cause beyond the control of the Party affected including, but not restricted to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, pandemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority and action or non-action by, or failure to obtain the necessary authorizations or approvals from, any government agency or authority, which by exercise of due diligence such Party could not 46 Contract 23-SNR-02977
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reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome.
5.39 “Uninstructed Imbalance Energy (UIE)” means settlement charges incurred by Shasta Lake due to uninstructed deviations of supply or demand as settled by the EIM Entity or MO.
5.40 “WECC” means the Western Electricity Coordinating Council or its successor agency.
6. SUB-BALANCING AUTHORITY STANDARD:
If the Balancing Authority Operator implements FERC, NERC or WECC standards and/or requirements in a manner that results in charges paid by WAPA, the Parties shall meet and confer on any allocation of increased responsibilities and/or costs to Shasta Lake. WAPA will charge Shasta Lake its share of additional charges, as determined by WAPA in a public process, and Shasta Lake shall pay such charges, to the extent such charges are not covered in an existing rate schedule.
7. INTERCONNECTION:
The Electric Power Systems of the Parties shall be interconnected at the Points of Interconnection as provided for in the Contract for Interconnection.
8. SIGNIFICANT REGULATORY OR OPERATIONAL CHANGE:
8.1 Notice: If, at any time during the term of this Contract, either Party becomes aware of a Significant Regulatory Change or Significant Operational Change that impacts a provision of this Contract, such Party shall provide notice to the other Party no later than one month after becoming aware of such Significant Regulatory Change or Significant Operational Change. The notice 47 Contract 23-SNR-02977
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shall contain a description of the Significant Regulatory Change or Significant Operational Change, including expected time schedules and studies, in accordance with Section 8 hereof. If the Party giving notice believes that it will be necessary to amend this Contract to address the anticipated change, then the notice to the other Party may include a proposal that the Parties meet in order to negotiate an appropriate amendment to this Contract.
8.2 Significant Operational Change:
8.2.1. Studies of Significant Operational Change: If, in accordance with Section 8.1, a Party receiving notice from the other Party of a Significant Operational Change believes that the proposed change may reasonably be expected to affect the operation of its Electric Power System materially, it may request a study of any such Significant Operational Change to determine the potential for any Adverse Impact and any potential avoidance or mitigation measures thereto. The Parties shall cooperate in providing information necessary to conduct such study. If WAPA determines that, in addition, a system planning study is required, WAPA shall perform such study within 120 days of notice of the Significant Operational Change. The study costs shall be the responsibility of the Party whose proposal will cause the Significant Operational Change, or will be shared by the Parties if; (1) the Balancing Authority Operator is an entity other than WAPA and is the one who causes or will cause the Significant Operational Change; or (2) the Significant Operational Change is a proposal of a Third Party; provided, that such costs may be paid by a responsible Third Party. The study shall identify options for mitigation measures, if any. Upon completion of the necessary studies, the Parties will each review the study results and discuss any recommendations for avoidance and/or mitigation of Adverse Impacts.
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8.2.2. Mitigation and Costs: Unless otherwise agreed by the Parties, the Party whose proposal or action causes the Significant Operational Change (modifying Party) shall be responsible for compensating the other Party (affected Party) for the reasonable cost, if any, of mitigating any Adverse Impact on the affected Party’s Electric Power System caused by the change; provided, that such costs may alternatively be paid by a responsible Third Party. Any reasonable cost incurred by the affected Party, in its cooperation with the modifying Party, shall be reimbursed by the modifying Party. All avoidance or mitigation measures shall be completed and any compensation due to the affected Party shall be agreed upon before the Significant Operational Change is made; provided that if the Significant Operational Change is caused by a Third Party, the allocation of costs of any Adverse Impacts shall be agreed upon by the Parties.
8.2.3. A Party exercising its contractual or legal rights to terminate the Contract will not cause a Significant Operational Change.
8.3 Significant Regulatory Changes: If, in accordance with Section 8.1, a Party receiving notice from the other Party of a Significant Regulatory Change believes that the proposed change may reasonably be expected to affect its performance under this Contract, either Party may propose modifications to this Contract. However, the modifications cannot be any broader than the scope that is reasonably necessary to address the issues raised by the Significant Regulatory Change. After receiving notice of a proposed Significant Regulatory Change, the Parties shall promptly meet and attempt to negotiate any necessary modifications. If the Parties are unable to negotiate any modifications, WAPA may take the necessary steps to implement the actions necessitated as a result of the Significant Regulatory Change. In the event WAPA incurs any costs 49 Contract 23-SNR-02977
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associated with a Significant Regulatory Change or the implementation thereof, WAPA will charge Shasta Lake its share of such additional costs, as determined by WAPA, after consultation with Shasta Lake, and Shasta Lake shall pay such charges to the extent not covered by a then-current rate schedule.
9. PLANNING STANDARD:
Each Party shall plan independently to meet its own load, reserves, and contingencies through advance resource and transmission planning, construction of generating resources and transmission resources, and power purchases. In so planning, the Parties shall be obligated under this Contract to utilize a planning standard at least equal to NERC reliability standards and WECC regional criteria, as may be revised, amended, or superseded from time to time.
10. OPERATIONS:
WAPA complies with the operating standards, including the reliability standards, of FERC, NERC and WECC for the registered functions associated with its transmission system. WAPA also complies with NERC and WECC standards associated to a Balancing Authority, under contract with the host Balancing Authority Operator, as a Sub-Balancing Authority. Shasta Lake, as an independent interconnected utility operating within WAPA’s Sub-Balancing Authority Area, agrees and shall be obligated to abide by the operating standards and requirements of FERC, NERC and WECC, or WAPA acting as the Sub-Balancing Authority Operator, and the requirements set forth expressly in this Section 10, as these standards and requirements may be modified from time to time, and to provide the necessary information to ensure that WAPA can carry out its responsibilities as Sub-Balancing Authority Operator. WAPA will similarly be obligated to provide Shasta Lake the information necessary to ensure that Shasta Lake can maintain compliance with applicable reliability standards. ///
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10.1 Shasta Lake shall maintain or otherwise provide for Reserves at all times equal to Shasta Lake's share of Contingency Reserves required and calculated in accordance with Exhibit C, made a part hereof.
10.1.1. All Reserves required to be provided by Shasta Lake to meet the requirements of Exhibit C hereof shall be scheduled by Shasta Lake with WAPA, in accordance with Exhibit B hereto. WAPA will include Shasta Lake’s scheduled Reserves in calculating the Reserves available for the Sub-Balancing Authority Area. WAPA may call on Operating Reserves carried by Shasta Lake to respond to Emergency situations as determined by WAPA dispatchers.
10.1.2. In addition to the ability to purchase Reserves under the WAPA Open Access Transmission Tariff, Shasta Lake may purchase and import Frequency Response Reserve/Spinning Reserve and Non-Spinning Reserve from any entity within the BANC Balancing Authority Area or from a Balancing Authority Area adjacent to the BANC Balancing Authority Area to meet its Operating Reserve requirement. Shasta Lake will be responsible for the acquisition of transmission service either from WAPA or a Third Party sufficient to ensure the availability and delivery of Reserves. If Shasta Lake purchases Reserves from any other entity on its behalf, Shasta Lake is responsible for scheduling and communicating such arrangement with WAPA. Shasta Lake may also import Reserves from Balancing Authorities not adjacent to the BANC Balancing Authority if the practices of the BANC Balancing Authority allow for Reserve purchase and import from other non-adjacent Balancing Authorities.
10.1.3. If, at any time, the Reserves provided by Shasta Lake fall below Shasta Lake's Operating Reserve requirement and has not been dispatched to cover an urgent situation, Shasta Lake shall take immediate action to restore its Operating Reserve within ten (10) minutes to meet the 51 Contract 23-SNR-02977
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Operating Reserve requirement. In the event Shasta Lake takes such action and, despite its best efforts, is unable to eliminate the deficiency in its Operating Reserve, such deficiency shall be deemed to have been supplied and purchased as Operating Reserve from WAPA. Such purchase shall be made for all hourly scheduling periods and portions thereof in which the deficiency in either Frequency Response Reserves, Spinning Reserve or Non-Spinning Reserve occurred. For example, if such deficiency occurs within an hourly scheduling period and is restored within the next hourly scheduling period, the purchase will be deemed to be made for two hourly scheduling periods. Shasta Lake shall pay for its deficiency in accordance with the rates, calculated for hourly periods, set forth in the Schedules of Rates posted by WAPA on WAPA’s OASIS.
10.1.4. If (1) WAPA’s obligations change for providing Operating Reserve for the Sub-Balancing Authority because of actions taken by the host Balancing Authority, FERC, WECC or NERC, and (2) such changed obligations justify a revision to the Operating Reserve requirement or requirement for additional Operating Reserves, WAPA shall revise the Parties’ obligations pursuant to Exhibit C, so as to maintain Shasta Lake's share of the changed obligations. WAPA shall notify Shasta Lake of any such revisions and the Parties shall have an opportunity to discuss the revisions before implementing them.
10.2 The Parties shall coordinate Scheduled Maintenance as required by this Section 10.2.
10.2.1. The Parties agree that each Party will make best efforts to schedule maintenance on generating units for times of the year when the units are not necessary to meet that Party’s Electric Power System load and firm power sales. Shasta Lake will submit outages in accordance with 52 Contract 23-SNR-02977
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WAPA’s operating procedures in advance of the date specified for the particular maintenance outage to WAPA and shall notify WAPA of any schedule adjustments when they become known.
10.2.2. Each Party shall (1) notify the other Party based on the outage coordination timeline cited in WAPA Operating Procedure before beginning any Scheduled Maintenance of its facilities that may materially affect the other Party’s Electric Power System, and (2) notify the other Party and obtain that Party’s concurrence based on the outage coordination timeline cited in WAPA Operating Procedure, before beginning any Scheduled Maintenance of its facilities that are directly interconnected with the other Party’s Electric Power System; provided, however, that a Party may withhold concurrence only to the extent that Party is experiencing unusual operating conditions on its Electric Power System and, in that event, that Party will agree on an appropriate date and time to reschedule such Scheduled Maintenance.
10.3 Shasta Lake shall schedule its resources to meet its load, including sales to Third Parties, on a real-time basis, in accordance with the requirements and procedures described in Exhibit B hereto. WAPA may modify these procedures at any time and shall notify Shasta Lake of the changed procedure at least thirty (30) days in advance of their scheduled implementation; provided, however, that any such modification(s) shall be nondiscriminatory, and consistent with Good Utility Practice. For purposes of this Section 10.3, the term “procedures” shall include, but shall not be limited to, the time for submitting pre-schedules and the date of the monthly forecast. For accounting purposes under this Contract, the hourly metered amounts shall be the algebraic sum (net) of the hourly metered amounts at each POI between Shasta and WAPA and Shasta Lake and Third Parties.
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10.4 WAPA requires specific operating data pertinent to operation of the SubBalancing Authority Area. Shasta Lake shall, at its own expense, provide such data to WAPA by owning, installing, and maintaining telemetering equipment at its generation resources and Points of Interconnection with WAPA and Third Parties to measure power and reactive flows between Shasta Lake’s Electric Power System and WAPA and between Shasta Lake’s Electric Power System and Third Parties, and such other data as may be agreed upon. Shasta Lake shall telemeter data from these resources and points to WAPA’s SOC, unless otherwise agreed. Further, if Shasta Lake owns such meters at the time meters are tested, WAPA shall be notified of the time and place for such test and shall be afforded the opportunity to witness such test. Shasta Lake shall provide documentation that its telemetering equipment is accurate within one quarter (1/4) of one (1) percent.
10.5 Each Party shall take immediate action to relieve or remedy an Emergency. Each Party shall notify the other Party’s schedulers or dispatchers immediately following an Emergency or Forced Outage of key facilities in accordance with the following:
10.5.1. Key facilities are generating resources that are considered important to interconnected operations by the Electric Power System that owns the facilities. Key facilities generally include:
10.5.1.1. An interconnection between Balancing Authorities.
10.5.1.2. Transmission operated at 100 kV and higher that can significantly affect inter- and intra-Balancing Authority operation.
10.5.1.3. Transmission from generating resources.
10.5.1.4. Generating equipment greater than Shasta Lake’s deviation band.
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10.5.2. Shasta Lake shall notify WAPA’s SOC immediately, but in no case later than ten (10) minutes, following an Emergency or Forced Outage on a Shasta key facility. WAPA shall notify Shasta Lake’s pointof-contact within ten (10) minutes following a Forced Outage on a WAPA key facility that WAPA determines, in its sole judgment, will materially affect Shasta Lake’s Electric Power System. Such notification of an Emergency or Forced Outage of a key facility shall include information regarding generator name or line terminal names, outage starting time, expected outage duration and reason for the outage. Forced Outages of equipment associated with key transmission circuits (capacitors, reactors, transformers, etc.) shall be reported in the same manner as key transmission circuits, if the outage significantly and materially affects the operation of the key transmission circuit.
10.5.3. If Shasta Lake experiences an Emergency or Forced Outage, Shasta Lake shall, at the time of notification to WAPA, use its best efforts to adjust its resources as necessary to balance loads and resources within the current hour. In addition, Shasta Lake shall continually keep the SOC appraised of the status of the Emergency and of corrective actions taken and planned.
10.5.4. Each Party shall promptly report to the other Party’s dispatchers or schedulers significant operating events that may materially affect the other Party’s Electric Power System or its operations. Significant operating events to be reported shall include, but not be limited to, any of the following events that may materially affect the other Party’s Electric Power System or operations:
10.5.4.1. Paralleling or separating the Parties’ Electric Power Systems;
10.5.4.2. Paralleling or separating a Party’s generating unit; 55 Contract 23-SNR-02977
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10.5.4.3. Failure of a Party’s generating unit to start;
10.5.4.4. Scheduled or unscheduled shutdown or equipment clearance on transmission switches, breakers, transformers or any other electrical equipment associated with a key facility; and
10.5.4.5. Opening of connections between Shasta Lake’s
substations. Each Party shall keep the other Party’s dispatchers or schedulers apprised of the status of the significant operating event and of the corrective actions taken and planned, if applicable.
10.5.5. Shasta Lake shall notify WAPA’s SOC as soon as Shasta Lake determines a limitation of its resources available to meet load. Shasta Lake’s notification shall include the duration and nature of such limitation.
Shasta Lake shall continually keep WAPA’s SOC appraised of the status of the resource limitation and of the corrective actions taken and planned.
10.6 The goal of each Party is to minimize deviations between its own loads and resources. In keeping with this goal, Shasta Lake shall have an affirmative obligation to follow its DOT within each five (5) minute interval to minimize deviations within each five (5) minute interval. Shasta Lake’s net deviations within each five (5) minute interval, including Shasta Lake’s EIM participation, shall be accounted for in accordance with this Section 10.6.
10.6.1. During periods when WAPA and Shasta Lake are participating in EIM, deviations will be calculated in five (5) minute intervals. The method for determining Shasta Lake’s net deviation per five (5) minute interval is as follows:
10.6.1.1. Shasta Lake’s deviation is calculated for each five (5) minute interval as the algebraic sum of the delta between the EIM load forecast and metered load, and the delta between the 56 Contract 23-SNR-02977
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generation DOTs and metered generation. The formula method for determining Shasta Lake’s net deviation over each five (5) minute interval shall be as follows:
DEVIATION5-minute (MW) = (LFEIM minus ΣLA) plus
(ΣGenA minus ΣDOT)
Where:
- LFEIM is EIM Load Forecast value for the 5-minute
interval;
- ΣLA is the average actual load for the 5-minute
interval;
- ΣGenA is the average actual total generation for the
5-minute interval; and,
- ΣDOT is the sum of Shasta Lake’s DOTs for the 5-
minute interval.
In the above calculation, a negative value indicates
under-generation by Shasta Lake’s Electric Power
System, and a positive value indicates overgeneration by Shasta Lake’s Electric Power System.
10.6.1.2. When EIM is not providing imbalance services, deviations occur over the scheduling hour when the net of Shasta Lake's schedules at Shasta Lake's POIs with WAPA’s system do not match the net of Shasta Lake's power flows at Shasta Lake’s POIs for the same hour. When EIM is not
providing imbalance services, the formula method for
determining Shasta Lake's net deviation over an integrated onehour scheduling period shall be as follows:
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DEVIATION (MWh) = (ΣPOIA) minus (ΣPOIS)
Where:
- ΣPOIA is the net of all POI actual metered
inflows plus actual metered outflows for the hour;
and,
- ΣPOIS is the net of all POI scheduled imports
plus scheduled exports for the hour.
- In the above calculation, a negative value
indicates under-generation by Shasta Lake’s
Electric Power System, and a positive value
indicates over-generation by Shasta Lake’s
Electric Power System.
10.6.2. Shasta Lake’s Maximum Deviation Band shall, unless otherwise agreed, be calculated according to Exhibit D and shall apply to each five (5) minute interval when EIM is providing imbalance services and over each integrated hour when EIM is not providing imbalance services.
Shasta Lake shall pay for the Maximum Deviation Band elected under WAPA’s then-effective Schedule of Rate for Regulation and Frequency Response Service and such purchase shall fulfill Shasta Lake’s regulation requirements.
10.6.2.1. If, for any applicable interval, Shasta Lake's deviation is positive (over-generation) or negative (under-generation) and exceeds the Maximum Deviation Band, Shasta Lake shall take steps to reduce the deviation to an amount within the Maximum Deviation Band as soon as possible by ensuring generation is following the DOT(s) and by taking steps to correct EIM load forecast errors, as applicable.
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10.6.3. After the fact, WAPA shall calculate and provide the data used to calculate the deviations to Shasta Lake for each five (5) minute interval of the hour.
10.6.4. For hours when EIM is providing imbalance services, Shasta Lake and WAPA agree to settle deviations financially as follows:
10.6.4.1. For deviations within the Maximum Deviation Band, both positive and negative, there will be no financial settlement between WAPA and Shasta Lake. Shasta Lake agrees to settle the energy with MO or EIM Entity for EIM UIE.
10.6.4.2. For positive deviations above the Maximum Deviation Band (over-generation), Shasta Lake agrees to settle the energy with MO for EIM UIE.
10.6.4.3. For negative deviations below the Maximum
Deviation Band (under-generation), Shasta Lake agrees the amount of negative deviation energy in excess of the Maximum Deviation Band shall be subject to a penalty payable to WAPA equal to fifty (50) percent of the greater of the Central Valley Project (CVP) generation actual cost or the Day-Ahead LMP of CVP generation pursuant to the CAISO/WAPA Market Efficiency Enhancement Agreement Day-Ahead LMP or the Day-Ahead
LMP at the CVP generation aggregated Pnode after MEEA
expires for the deviation energy that exceeds the Maximum Deviation Band as provided for in the then-effective Schedule of Rate for Energy Imbalance Market Energy Imbalance Service and Schedule of Rate for Energy Imbalance Market Generator Imbalance Service.
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10.6.5. For hours when EIM is not providing imbalance services, WAPA and Shasta Lake agree to settle the energy for all deviations financially in accordance with the then-effective Schedule of Rate for Energy Imbalance Service and Schedule of Rate for Generator Imbalance Service, or any superseding rate schedules.
10.6.5.1 For negative deviations below the Maximum Deviation Band (under-generation), Shasta Lake agrees the amount of negative deviation energy in excess of the Maximum Deviation Band shall be subject to a penalty payable to WAPA equal to 50 percent of the greater of the CVP generation actual cost or the Day-Ahead LMP of CVP generation per CAISO/WAPA Market
Efficiency Enhancement Agreement or the Day-Ahead LMP at CVP generation aggregated Pnode after MEEA expires for the deviation energy that exceeds the Maximum Deviation Band.
10.6.6. If Shasta Lake experiences an Emergency or unexpected loss or interruption of generating or transmission facilities that results in a net negative (under-generation) deviation in excess of the Maximum Deviation Band, Shasta Lake shall, within ten (10) minutes of that loss or interruption, notify WAPA regarding necessary changes to Shasta Lake’s schedules. Shasta Lake will not be subject to the under-generation deviation penalty such as that cited in Paragraphs 10.6.4.3 or 10.6.5.1 or similarly in the applicable Schedule of Rate, if the Emergency or unexpected loss is reported within ten (10) minutes.
10.7 Each Party shall use its best efforts to minimize the net reactive power flow between the Parties’ Electric Power Systems measured at the POI, unless otherwise agreed. To meet this obligation, each Party shall install and operate the necessary facilities on its own Electric Power System at its own expense to 60 Contract 23-SNR-02977
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monitor and control its reactive power flow. Shasta Lake shall use best efforts to follow the area voltage schedules implemented by WAPA specific to each POI, as those schedules may be revised from time to time by WAPA.
10.8 Programs for manual load shedding and rotating interruptions of Shasta Lake’s load are essential for reliable utility operation. The requirements and standards contained in this Section 10.8 represent Good Utility Practice, are required by FERC, NERC and WECC standards, and are mutual for both Parties.
10.8.1. Shasta Lake shall cooperate with WAPA to develop and implement, as necessary, plans for manual load shedding, voluntary and mandatory, consistent with both of the following: (1) plans for load shedding observed in the Balancing Authority; and (2) regulations and orders of regulatory or other agencies having jurisdiction over such matters. Such plans shall include provisions for cases of sudden emergency loss of an energy resource of sufficient size or capacity to require interruption of service to non-interruptible utility customers such as failure of certain generation or transmission facilities.
10.8.2. If, at any time, the load requirements of WAPA’s Sub-Balancing Authority exceed the power sources available to the Sub-Balancing Authority to meet such load requirements and the Balancing Authority is unable to help the situation, the Parties shall implement load shedding, so as to maintain bulk electricity reliability, as far as practicable, with due consideration for the requirements of public health and safety. Load shedding amounts will be based upon annually calculated load shed share calculated using each entity’s previous year’s peak load and documented in WAPA operating procedures, unless required otherwise by circumstances beyond the control of the Parties. When manual load shedding or rotating interruptions are necessary, WAPA’s SOC shall notify 61 Contract 23-SNR-02977
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Shasta Lake’s dispatchers of the required action in the form of an Operating Instruction, and Shasta Lake shall comply immediately. WAPA shall not initiate load shedding for economic reasons or for lack of sufficient energy supply by another customer of WAPA to meet the load of such other customer of WAPA.
10.9 WAPA may temporarily separate all or any part of the facilities of its Electric Power System from all or any part of Shasta Lake's Electric Power System if WAPA determines at any time that the following conditions exist or that the described action is necessary: (1) in case of an Emergency that directly affects WAPA’s ability to provide power to Shasta Lake; (2) to prevent a hazard to life or property; or (3) when the operation of WAPA’s Electric Power System is suspended, interrupted or interfered with as a result of an Uncontrollable Force.
In that event, WAPA’s SOC shall notify Shasta Lake’s dispatchers or schedulers if Shasta Lake’s action is required, and Shasta Lake shall comply immediately.
Service so interrupted or interfered with shall be restored as soon as practicable.
WAPA shall contact Shasta Lake's schedulers or dispatchers to review changes to Shasta Lake's schedules and coordinate plans to restore service or parallel facilities.
10.10 All interruptions of service or separation of the Electric Power Systems of the Parties, other than those expressly described in Sections 10.8 and 10.9 hereof, shall be made as mutually scheduled by the Parties.
10.11 The Parties have installed automatic devices to assist in maintaining the integrity and reliability of their respective Electric Power Systems and to protect their customers from damage, injury, or prolonged outages. Service under this Contract is subject to interruption in the event of the operation of such devices. 62 Contract 23-SNR-02977
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Service interrupted or reduced as a result of the operation of such devices shall be restored at the earliest possible time. If (1) automatic protective devices on WAPA’s Electric Power System operate, (2) Shasta Lake’s service from WAPA is reduced as a result of that operation, and (3) Shasta Lake provides energy to WAPA at that time, the following shall apply:
10.11.1. Shasta Lake shall be obligated to adjust its operations during the hourly scheduling period in which the event occurred to prevent energy deliveries to WAPA, unless WAPA requests such energy from Shasta Lake; and
10.11.2. If so requested by WAPA, the energy delivered by Shasta Lake to WAPA within that first hourly scheduling period in excess of Shasta Lake’s Maximum Deviation Band shall, at Shasta Lake’s option, either be paid for by WAPA under a separate agreement, or returned by WAPA during a like time period or at a time mutually acceptable to the Parties.
10.12 In the event WAPA incurs additional charges for the performance of this Contract, WAPA shall meet and confer with Shasta Lake to determine the allocation of such charges. WAPA will charge Shasta Lake its reasonable share, as determined by WAPA, and Shasta Lake shall pay such charges, to the extent such charges are not covered in an existing rate schedule.
11. METERING:
Power delivered to Shasta Lake through its interconnections with WAPA and Third Parties shall be measured by suitable electric meters installed at the Points of Interconnection and at Shasta Lake's generating resources directly connected or proposed to be directly connected to WAPA’s Electric Power System in accordance with the provisions of the Contract for Interconnection and the terms herein.
11.1 Except for meters owned by WAPA and Third Parties, Shasta Lake shall 63 Contract 23-SNR-02977
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provide, install, own, operate, and maintain meters, backup meters and associated equipment at each Point of Interconnection and generating resource, unless otherwise agreed.
11.2 Metering equipment located at Points of Interconnection shall measure and record real and reactive power flow in both directions.
11.3 Shasta Lake’s metering equipment for its generating resources shall measure and record both net real and reactive power generated.
11.4 Such “in” and “out” meters specified under Section 11.2 and 11.3 hereof shall be designed to prevent reverse registration and measure and record continuously deliveries of kilowatts, kilovars, and, if required, line loss.
11.5 Shasta Lake shall provide written notice to WAPA and other interconnected parties if it intends to have the meters specified in this Section 11 replaced, except in the case of equipment failure. In the case of equipment failure, when mutually agreed, oral notification may be deemed to fulfill the notification requirements.
11.6 All meters shall be sealed and the seals shall be broken only upon occasions when the meters are to be inspected, tested, or adjusted.
11.7 Measurement of power deliveries at Points of Interconnection and generating resources shall be made at the high voltage bus (net of station uses), unless otherwise agreed by the Parties.
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once every thirty (30) months, all other meters shall be inspected and tested at least once each year, and at any reasonable time upon request of the other Party. Representatives of the other Party shall be afforded the opportunity to be present on such occasions.
11.9 Any metering equipment found to be defective or inaccurate shall be repaired, adjusted, or replaced. Should any meter fail to register, the demand created and energy delivered hereunder during such period of failure to register shall be replaced with those recorded by the backup meters in the corresponding period, or if the backup meters also fail to register, demand created and energy delivered should be estimated by the Parties and appropriate Third Parties from the best information available.
11.10 Meters found to be inaccurate by one (1) percent or more shall be immediately repaired, adjusted, or replaced. Adjustment shall be made to compensate for the effect of the inaccuracy. Such adjustment shall be made to correct all measurement made by the inaccurate meter for: (1) the actual period during which inaccurate measurements were made, if that period can be determined; or if not, (2) the period immediately preceding the test from the date of the last previous test of the meter, unless provided differently in other written contracts and agreements between the Parties.
11.11 Corrections in billing resulting from inaccurate meters shall be made as soon as possible. Such correction, when made, shall constitute full adjustment of any claim between the Parties arising out of such inaccuracy of meters.
11.12 Representatives present at the meter tests shall use best efforts to estimate the amount of capacity and energy created during the meter test. 65 Contract 23-SNR-02977
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Demand and energy so created shall be adjusted from the meter registration accordingly.
11.13 The owner of the meters shall be responsible for the reading of the meters, which shall be done on the first Business Day of each calendar month, and at such other times as may be required to carry out the provision of this Contract.
11.14 WAPA assumes no liabilities for any claims, demands, cost, losses, causes of action, damages, or liability of whatsoever kind associated with or arising out of or resulting from Shasta Lake’s use of WAPA meter data obtained either directly from the meter (Remote Interrogation via Meter Data Management System) or indirectly by downloading such data via Secured File Transfer Protocol. Shasta Lake agrees to indemnify and hold harmless WAPA, its employees or agents, from any claims, demands, costs, losses, causes of action, damages, or liability of whatsoever kind associated with or arising out of or resulting from Shasta Lake’s use of WAPA meter data.
12. BILLING AND PAYMENT:
WAPA may collect in advance, by billing on or before the fifteenth (15th) day of the preceding month, for charges associated with the Maximum Deviation Band for the following month. Charges for other services rendered or costs incurred during the preceding month shall be billed to Shasta Lake on or after the last day of each month.
Charges shall be separately itemized. Sufficient supporting information and documentation to establish the basis for and appropriateness of each charge in the bill shall accompany each bill submitted. Any claim by Shasta Lake that WAPA has not provided sufficient information and documentation shall not relieve Shasta Lake of its obligations under this Contract.
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12.1 If charges cannot be determined accurately for preparing a bill under this Contract, WAPA may use its best estimates in preparing the bill. All estimated charges shall be labeled as such, and WAPA shall document the basis for the estimate used. Estimated billings shall be prepared and paid in the same manner as other billings under this Contract.
12.2 When final and complete billing information becomes available and charges can be determined accurately, WAPA will prepare and submit an adjusted bill to Shasta Lake. Additional payments by Shasta Lake shall be made in accordance with the payment provisions of this Section 12. At WAPA’s discretion, refunds by WAPA may be a payment to Shasta Lake or appear as a credit on the next monthly bill(s) to Shasta Lake.
12.3 All payments for services provided pursuant to this Contract shall be made directly to WAPA unless otherwise agreed to and arranged for by the Parties.
Shasta Lake's payments of its obligations arising under this Contract are not subject to any reduction, whether by offset, payments into escrow, or otherwise as a result of: (1) a dispute between Shasta Lake and WAPA; (2) a dispute between Shasta Lake and a Third Party, or (3) the rights and obligations of WAPA and Shasta Lake under any separate agreement between them.
12.4 Payments of any bills to WAPA are due and payable by Shasta Lake before the close of business ten (10) calendar days after the date of issuance of each bill or the next Business Day thereafter if said day is not a Business Day.
Payments should be sent by Shasta Lake to WAPA at the address contained in Exhibit E.
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due date shall thereafter accrue a late charge calculated in accordance with WAPA’s General Power Contract Provisions then in effect.
12.6 If any portion of a bill is disputed, Shasta Lake shall pay the full amount and, on or before the payment due date notify WAPA in writing of the amount in dispute and the specific basis for the dispute. Within thirty (30) days of WAPA’s receipt of Shasta Lake's notice of a dispute (or such extended period as the Parties may agree upon), the Parties shall attempt to agree on any adjustments that may be appropriate to the disputed portion of the bill, including any refund.
12.7 Shasta Lake shall pay for the service furnished hereunder in accordance with the rates, charges, and conditions set forth in the CVP Schedule of Rate for Regulation and Frequency Response Service, Schedule of Rate for Energy Imbalance Service, Schedule of Rate for Generator Imbalance Service, Schedule of Rate for Energy Imbalance Market Energy Imbalance Service, and/or Schedule of Rate for Energy Imbalance Market Generator Imbalance Service, effective October 1, 2024, or any superseding rate schedule.
12.8 Shasta Lake shall be obligated to pay any costs incurred by WAPA under EIM due to Shasta Lake’s operations that are not otherwise settled by Shasta Lake directly with MO or EIM Entity.
12.9 The Parties expect each IOA Customer will settle, with the MO or EIM Entity, all imbalance charges associated with its loads and resources within WAPA’s Sub-Balancing Authority. If WAPA is assigned any imbalance charges (including penalties) associated with any IOA Customer’s loads or resources, WAPA will pass through such charges to the responsible IOA Customer. WAPA will pass through the charges in the same manner as such charges are assigned 68 Contract 23-SNR-02977
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to WAPA. If WAPA is unable to determine how to pass through such charges, the Parties will meet in an attempt to determine a fair allocation of such charges between the IOA Customers. If the Parties are unable to reach a resolution, after considering the IOA Customers’ input, WAPA will decide the allocation. After a decision is made by WAPA staff, if Shasta Lake is not satisfied with the decision, Shasta Lake shall have fifteen (15) days from the date of WAPA’s decision to appeal the change to WAPA’s Senior Vice President and Sierra Nevada Regional Manager. WAPA should not incur any costs due to Shasta Lake’s participation in EIM or due to Shasta Lake’s use of the Deviation Band.
13. SEVERABILITY:
In the event that any material term, covenant, or condition of this Contract, or the application of such material term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, the Parties shall have ninety (90) days, or such other time as agreed by the Parties, to negotiate provisions which restore the benefits and burdens of this Contract between the Parties. If the Parties fail to agree on such provisions, this Contract shall terminate and be of no further force or effect; except that obligations to pay for service rendered hereunder shall remain until satisfied.
14. MODIFICATION OF THIS CONTRACT:
Except as provided herein, neither this Contract nor any term, covenant, or condition hereof may be terminated, amended, supplemented, waived, or modified except by an instrument in writing, mutually agreed to and executed by each Party.
15. EXHIBITS:
The initial Exhibits A, B, C, D, and E are attached hereto, made a part hereof and shall be in full force and effect in accordance with their respective terms until superseded by 69 Contract 23-SNR-02977
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a subsequent Exhibit(s). The Exhibit(s) may be modified from time to time, in accordance with this Contract.
16. RECORDS AND AUDITS:
Each Party shall maintain appropriate records and supporting documentation applicable to the provisions of this Contract. Such records and supporting documentation shall be retained for at least three (3) years after the close of the calendar year. Upon written request and reasonable notice, each Party agrees to provide to the other Party access to such records and supporting documentation for review and inspection. The records and supporting documentation may be inspected and copied, at the requesting Party’s expense, any time during regular office hours. Any exceptions noted in any audit process will be forwarded to the audited Party for review and response. The audited Party agrees to respond within sixty (60) days after receipt of any such exception. Any adjustments to records and supporting documentation as a result of an agreed audit exception shall be made for the period to which such exception applies.
17. RELATIONSHIP OF THE PARTIES:
Except to the extent otherwise provided herein, the covenants, obligations and liabilities of the Parties are intended to be several and not joint or collective, and nothing herein contained shall ever be construed to create an association, joint venture, trust or partnership, or to impose a trust or partnership covenant, obligation or liability on or with regard to any one or more of the Parties. Each Party shall be responsible for its own covenants, obligations and liabilities as herein provided. No Party shall be under the control of or shall be deemed to control the other Party. No Party shall be the agent of or have a right or power to bind the other Party without its express written consent, except as expressly provided in this Contract. Except as provided herein, no provision of this Contract is intended to, or shall be for the benefit of, or construed to create rights in, or grant remedies to, any person or entity not a Party hereto. 70 Contract 23-SNR-02977
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18. NON-DEDICATION OF FACILITIES:
The Parties do not intend to dedicate and nothing in this Contract shall be construed as constituting a dedication by either Party of its properties or facilities, or any part thereof, to the other Party or to the customers of either Party.
19. GOVERNING LAW:
This Contract shall be interpreted, governed by and construed under the laws of the State of California or the laws of the United States, as applicable, as if executed and to be performed wholly within the State of California.
20. DEFAULT:
The failure of either Party to perform any of its material obligations under this Contract shall constitute a default under this Contract. If either Party defaults under this Contract, the other Party may terminate this Contract; provided that prior to such termination the other Party must provide the defaulting Party with written notice stating:
1) the Party’s intent to terminate; 2) the date of such intended termination; 3) the specific grounds for termination; 4) specific actions which the defaulting Party must take to cure the default, if any; and 5) a reasonable period of time, which shall not be less than sixty (60) calendar days, within which the defaulting Party may take action to cure the default and avoid termination, provided there is any action which can be taken to cure the default.
21. NOTICES:
Any notice, demand, or request required by this Contract to be given in writing to either Party shall be considered properly given when delivered in person, or sent by either registered or certified mail, postage prepaid, or prepaid telegram addressed to the person and the address set forth in Exhibit E attached hereto. Any Party may change the designation of the person or the address to which such notices are to be sent by 71 Contract 23-SNR-02977
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notice in writing to the other Party given in accordance with the foregoing provisions.
22. DISPUTE RESOLUTION:
Any dispute arising between the Parties regarding their rights or the performance of their obligations under this Contract shall be resolved according to the following procedures. This section does not create any rights to modify or amend this Contract.
22.1 Informal Settlement Procedure. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Contract promptly by negotiations between Shasta Lake’s General Manager or his or her designated representative and an executive of similar authority of WAPA. Either Party may give the other Party written notice of any dispute and, within twenty (20) calendar days after delivery of such notice, the executives shall meet at a mutually acceptable time and place and thereafter as often as they reasonably deem necessary, but at least weekly, to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within sixty (60) calendar days of the first meeting, either Party may initiate a mediation of the controversy or may initiate formal dispute resolution under Section 22.2.
22.2 Formal Settlement Procedure. In the absence of a voluntary resolution reached in accordance with Section 22.1, either Party may seek to resolve a dispute by seeking judicial relief. The Party, with the written consent of the other Party, in the alternative may submit the dispute to non-binding arbitration which shall be conducted using any procedures agreed to by the Parties. No litigation or arbitration shall be commenced until not less than twenty (20) calendar days after notice of the initiation of proceedings has been provided to both Parties; Provided, however, that the preceding requirement shall not preclude a Party from initiating litigation or arbitration to secure any legal right which may ///
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otherwise be forfeited due to limitation or requirements imposed by rule or statute.
23. GENERAL POWER CONTRACT PROVISIONS:
The General Power Contract Provisions (GPCP), dated September 1, 2007, as they may apply, are attached hereto, and are hereby made a part of this Contract the same as if they had been expressly set forth herein; Provided that Provisions 5, 6, 7, 8, 9, 12, 15, 16, 17, 18, 19, 20, 21, and 22 shall not apply to this Contract.
24. AUTHORITY TO EXECUTE:
Each individual signing this Contract certifies that the Party represented has duly authorized such individual to execute this Contract which binds and obligates the Party.
25. EXECUTION BY COUNTERPARTS:
Contract may be executed in any number of counterparts and, upon execution and delivery by each Party, the executed and delivered counterparts together shall have the same force and effect as an original instrument as if all Parties had signed the same instrument. Any signature page of this Contract may be detached from any counterpart of this Contract without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Contract identical in form hereto, by having attached to it one or more signature pages.
26. ELECTRONIC SIGNATURES:
The Parties agree that this Contract may be executed by handwritten signature or digitally signed using Adobe Sign or DocuSign. An electronic or digital signature is the same as a handwritten signature and shall be considered valid and acceptable. ///
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IN WITNESS WHEREOF, WAPA and Shasta Lake have caused this Contract to be executed as of the date first written above.
CITY OF SHASTA LAKE
By: Name:
(Attest) Title:
By: Address__________________________
Title:
WESTERN AREA POWER ADMINISTRATION
By: Bryan W. Griess
Title: Vice President and Manager
of Operations for Sierra Nevada Region
Address: 114 Parkshore Drive
Folsom, CA 95630
74 City of Shasta Lake
Exhibit A to
Contract 23-SNR-02977
EXHIBIT A
Shasta Lake Net Interchange Determination
1. This Exhibit A, to be effective under and as a part of Contract 23-SNR-02977 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit A or termination of the Contract.
2. This Exhibit A applies to net interchange accounting required to calculate Shasta Lake’s deviations in accordance with this Contract. This Exhibit A may be changed by agreement of the Parties to reflect Shasta Lake’s Electric Power System changes, addition or deletion of Points of Interconnection, metering changes, or such other modifications to Shasta Lake or WAPA Electric Power Systems that require a modification to this Exhibit A. To determine Shasta Lake’s System Net Interchange, including both demand and energy, it is necessary to add algebraically the various metered inflows of power to and outflows of power from Shasta Lake’s Points of Interconnection.
3. Hourly Net Interchange Determination:
Shasta Lake’s Net Interchange shall be determined for any hour by algebraically summing the following metered deliveries to and from Shasta Lake, adjusted for losses using the applicable loss factors from Section 5, net of adjustments in Section 4. Net Interchange demand and energy for any hour shall be the algebraic sum of the following metered Points of Interconnection:
• Flanagan KY1A
• Flanagan KY3A
• Keswick from Knauf Substation 115-kV
The Net Interchange energy for any month shall be the sum of the hourly measured quantities so determined from the Points of Interconnection.
4. Adjustments to Shasta Lake Net Interchange:
Shasta Lake Net Interchange as determined in Section 3 shall be adjusted to reflect Shasta Lake’s power deliveries to Shasta Lake’s customers outside of its system.
Presently, these customers are:
• Shasta Lake has no such customers.
Loss factors from Section 5 of this Exhibit A shall be applied to the above customer loads to reflect losses from Shasta Lake’s system to the loads. 75 City of Shasta Lake
Exhibit A to
Contract 23-SNR-02977
5. Loss Factors:
Loss and transmission adjustment factors to be multiplied by Shasta Lake scheduled quantities at Points of Interconnection and for load specified in Section 4 are as follows:
• Base Resource Allocation Delivery Loss Factor = 0%
• Shasta Lake Imports/Exports over CVP Transmission = 1.6% • Transformation Losses, if any
Losses shall be settled with WAPA in accordance with its business practices.
6. Existing Meters:
The table below provides a list of the meters currently in place to monitor Shasta Lake’s Net Interchange and implement the net interchange accounting specified in this Exhibit A. WAPA shall revise Table A-l to correspond with any additions or deletions to the list of meters pursuant to this Contract.
Listing of Meters Used to Determine Net Interchange
FlanaganKY1A
FlanaganKY3A
Keswick-Knauf 115-kV metering
76 City of Shasta Lake
Exhibit B to
Contract 23-SNR-02977
EXHIBIT B
Scheduling Procedures
1. This Exhibit B, to be effective under and as a part of Contract 23-SNR-02977 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit B or termination of the Contract.
2. General:
Shasta Lake shall separately schedule power deliveries to its Electric Power System, to loads outside Shasta Lake’s Electric Power System but within WAPA's Sub-Balancing Authority Area, and to loads outside WAPA's Sub-Balancing Authority Area. Shasta Lake shall schedule generation from each of its generating resources with WAPA in a form and format to be agreed upon. Shasta Lake may change its generating resources as necessary to meet its load. Shasta Lake's hourly schedules at the Points of Interconnection and to loads outside of Shasta Lake’s Electric Power System shall be in whole megawatts and be transmitted by NERC E-tag and any changes confirmed by voice communication to WAPA's Energy Control Center. In the event of a failure of the data link, Shasta Lake shall send data to WAPA by electronic mail or use any other agreed upon method of data transfers. All losses shall be accounted for pursuant to Exhibit A hereto; provided, however, that separate loss factors may be specified for services provided under separate agreements but scheduled in accordance with this Contract. In that event, such separate loss factors shall apply to those specific services scheduled under this Contract.
2.1 WAPA and Shasta Lake, (or its agent), are participants in the California Independent System Operator’s (CAISO) Western Energy Imbalance Market (EIM) which transfers energy dynamically during the scheduling hour. Prior to the operating hour, Shasta will create and update electronic tags in accordance with the EIM Entity business practices and Section B.5 of this Exhibit B.
3. Monthly Forecast:
Five (5) Business Days before the end of each month, Shasta Lake shall provide WAPA with a non-binding daily forecast for the following month including on-peak and off-peak information specifying: (1) generation from each of Shasta Lake's generating resources, (2) daily purchase of WAPA energy, (3) Non-Interruptible and Interruptible Third Party capacity and energy purchases (imports), (4) Non-Interruptible and Interruptible Third Party capacity and energy sales (exports), (5) purchases of any other power services from WAPA or Third Parties, (6) Contingency Reserves provided by Shasta Lake, (7) monthly total schedules for items 1-6 (8) forecasted monthly peak, and (9) other information as agreed. Such information shall be provided by Shasta Lake in a typical weekday, Saturday and Sunday format.
77 City of Shasta Lake
Exhibit B to
Contract 23-SNR-02977
4. Daily Preschedule:
WAPA and Shasta Lake agree to use the WECC Preschedule Calendar as a basis for developing the prescheduling dates.
4.1 For schedules outside of WAPA's Sub-Balancing Authority Area, Shasta Lake shall notify WAPA no later than 10:00 a.m. on each Business Day, or as otherwise agreed by the Parties, of its preschedules for each following day, up to and including the following Business Day. Such preschedules shall include suppliers and purchasers, type of transaction, (e.g., Unit Contingent or Interruptible or NonInterruptible) hourly amounts, and daily totals. In addition, Shasta Lake shall notify WAPA of the type of transmission arrangements made with intervening Balancing Authority Areas to affect the transactions. A properly completed NERC E-tag meets this requirement.
4.2 By 2:00 p.m. of each Business Day, Shasta Lake shall transmit to WAPA the hourly preschedules, containing the information listed in Section B.11 of this Exhibit B, in a format agreed upon by the Parties. Shasta Lake may update the preschedules before midnight as more current information becomes available, so that the preschedules can reflect Shasta Lake’s most current Electric Power System conditions.
5. At Midnight:
The preschedule becomes the schedule of the day. Shasta Lake shall make any changes to the schedule in accordance with timeframes and communication protocols outlined in the Business Practices of the Market Operator. Shasta Lake shall also contact the SOC by voice communication no later than twenty (20) minutes before the hour to verify Shasta Lake's net schedules. The Parties dispatchers may mutually agree to verify several hours of schedules before implementation but must confirm any changes. After this twenty (20) minute lock out period, no additional changes to the schedule shall be accepted, except when Shasta Lake, WAPA, or the Balancing Authority Area suffers an Emergency or when schedules into WAPA's Sub-Balancing Authority Area are curtailed or modified because of Unscheduled Flow or abnormal operating conditions. In that event, the Parties shall agree to schedule changes after the twenty (20) minute lockout period; after the scheduling hour has passed, the schedule, so changed, becomes the final schedule of the hour and Shasta Lake may no longer change the final schedule.
5.1 If the scheduling data link between WAPA and Shasta Lake fails, Shasta Lake shall effect the schedule changes by voice communication, confirmed by electronic mail transmittal; the time of the schedule change shall be the time of the voice communication or as agreed by the Parties. Changes received after the lockout 78 City of Shasta Lake
Exhibit B to
Contract 23-SNR-02977
time shall not be accepted, unless otherwise agreed.
6. EIM:
6.1 Dynamically scheduled energy as a result of EIM dispatch is permitted as necessary for participation in EIM which transfers energy dynamically during the scheduling hour. There are two EIM dynamic E-tags created for each day with no energy profile and maximum expected transmission profile – one created by WAPA’s Merchant and one created by the Customer, both of which can only be updated by the entity that created them [outside of the automated dynamic E-tag hourly updates performed by the EIM Entity (SMUD/BANC)]. After each hour, SMUD/BANC’s automated system will enter the net energy transferred due to EIM dispatches during the hour into the appropriate EIM dynamic E-tag.
6.2 If the EIM dynamic E-tag automated value is incorrect due to WAPA or Customer issues (bad forecast data, technical issues, etc.) WASN and the Customer will work to resolve the issue and may adjust the appropriate EIM dynamic E-tag with the new agreed upon values within NERC guidelines (currently within 168 hours or one week).
6.3 If the EIM dynamic E-tag automated value is incorrect due to CAISO issues ((bad forecast data, technical issues, etc.) resolution will be via the CAISO issue resolution process (currently CIDI tickets).
7. Deviation Energy:
7.1 During normal operations (EIM is balancing Sub-Balancing Authority Area real time loads), WAPA EMS will calculate deviations for each five (5) minute interval.
The data points used in the calculations will be shared with Shasta Lake for their tracking of deviations.
7.2 During periods that EIM is unavailable, after each scheduling hour, when the actual integrated hourly Shasta Lake Net Interchange is available, WAPA shall calculate the amount of deviation for each hour based on the calculation described in Section 10.6.1.2 of the Contract. Shasta Lake and WAPA will check out on deviations after each hour.
8. Final Schedules:
At the end of each day (midnight), the final hourly schedules, including Shasta Lake's actual generation from its generating resources, after verification by Shasta and WAPA, shall become the schedule of that day subject to the conditions stated above in B.5. 79 City of Shasta Lake
Exhibit B to
Contract 23-SNR-02977
9. Emergency:
If during the current scheduling hour, Shasta Lake suffers an Emergency, including, but not limited to, a Forced Outage of transmission or interruption of scheduled firm power supply, Shasta Lake shall notify WAPA of the interruption. Shasta Lake shall inform WAPA regarding the necessary adjustments to the schedules for the scheduling hour by voice communication within the first ten (10) minutes after the Emergency occurs. If the Emergency extends beyond the current scheduling hour, Shasta Lake shall adjust subsequent hourly schedules to reflect Shasta Lake’s then-current Electric Power System conditions.
10. Reports:
Unless otherwise agreed by the Parties, Shasta Lake shall provide WAPA with daily reports transmitted in a mutually agreed upon manner at least twice a week throughout the month, and monthly reports, within five (5) Business Days after the end of each calendar month, in a format agreed upon by both Parties consisting of:
10.1 Actual daily and hourly final scheduled transactions with daily totals.
10.2 Actual daily and hourly generation of Shasta Lake's generating resources.
10.3 Actual daily and hourly Shasta Lake System load.
10.4 Monthly summary of the final schedules for items 1-4.
10.5 Operating Reserves for each hour.
11. Reconciliation of Actual and Scheduled Data:
Except as otherwise provided in this Contract, or unless otherwise agreed by the Parties:
11.1 When EIM is available, the integrated 5-minute interval telemetered data shall serve as the normal basis for deviation accounting within the Maximum Deviation Band as set forth in Exhibit D. Each 5-minute interval will be settled separately, and
11.2 When EIM is not available, the integrated hourly telemetered data shall serve as the normal basis for deviation accounting within the Maximum Deviation Band as set forth in Exhibit D.
WAPA shall use the actual revenue meter register data to calculate charges for deviation outside the Maximum Deviation Band.
80 City of Shasta Lake
Exhibit B to
Contract 23-SNR-02977
12. Information to be Scheduled by Shasta:
The hourly preschedules and schedules shall include the following quantities pursuant to Exhibit A of this Contract:
12.1 Shasta Lake Electric Power System load,
12.2 Generation from each generation resource,
12.3 Total generation from generating resources,
12.4 Schedules at Points of Interconnection:
12.4.1 Firm power purchases from each Third Party
12.4.2 Firm power sales to each Third Party
12.4.3 Interruptible Energy purchases from each Third Party
12.4.4 Interruptible Energy sales to each Third Party
12.4.5 Energy purchased from WAPA
12.4.6 Energy sold to WAPA
12.4.7 Contingency Reserves self-provided and purchased by source
12.4.8 Shasta Lake-owned generation wheeled across WAPA’s system,
12.5 Amount of limitation on Shasta Lake's generating resources,
12.6 Dynamic Schedules for energy received or delivered via EIM,
12.7 Other information, as agreed from time to time.
13. Electronic Tagging
The Balancing Authority Area and WAPA require all energy transactions crossing the host Balancing Authority Area boundary, WAPA's Sub-Balancing Authority Area boundary, or those wheeled entirely within the WAPA Sub-Balancing Authority Area or host Balancing Authority Area to be tagged with a NERC E-tag. 81 City of Shasta Lake
Exhibit C to
Contract 23-SNR-02977
EXHIBIT C
Reserve Obligations
1. This Exhibit C, to be effective under and as a part of Contract 23-SNR-02977 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit C or termination of the Contract.
2. Determination of Shasta Lake Reserve Quantities:
2.1 WAPA is responsible for assuring that adequate Operating Reserves are available to cover WAPA’s share of the Balancing Authority Area’s contingency reserve requirement, as determined on an hourly basis by the Balancing Authority Operator. Shasta Lake will have the responsibility for covering Shasta Lake’s Load Ratio Share (LRS) of Contingency Reserves as part of such Operating Reserve requirements, plus any additional Contingency Reserves required for Shasta Lake’s use of Interruptible Energy. WAPA shall promptly notify Shasta Lake of any change to the Contingency Reserve requirements.
2.2 The purpose of this Exhibit C is to define the Contingency Reserve requirements of the WAPA Sub-Balancing Authority and to specify the method of calculating the apportionment thereof among WAPA and each interconnected utility or load resident within the WAPA Sub-Balancing Authority Area that has a contractual obligation for an apportionment of the Sub-Balancing Authority Contingency Reserves. All Contingency Reserve requirement calculations derived herein shall be rounded up to the next whole megawatt.
2.3 This Exhibit C has been developed for the purpose of sharing Contingency Reserves based on the annual non-coincident peak load of each interconnected utility or load resident within the WAPA Sub-Balancing Authority that has a contractual obligation for an apportionment of the Sub-Balancing Authority Contingency Reserves. Any Reserve requirements necessary to meet NERC and WECC standards for interruptible imports, and on-demand contracts are the responsibility of Shasta Lake.
2.4 For the purpose of this Exhibit C, Shasta Lake’s Annual Peak Load shall mean the annual maximum non-coincident peak demand (in whole MWs) of Shasta Lake’s Electric Power System during the period from November 1st of the prior year through October 31st of the current year.
2.5 In December of each year, Shasta Lake’s Annual Peak Load Obligation shall be determined by calculating the difference between Shasta Lake’s Annual Peak 82 City of Shasta Lake
Exhibit C to
Contract 23-SNR-02977
Load and the product of WAPA’s Annual Peak Load obligation (maximum base resource scheduled in current year) multiplied by Shasta Lake’s Base Resource allocated percentage.
2.6 In December of each year, WAPA shall determine its Annual Peak Load Obligation, which is defined as WAPA’s annual peak Base Resource delivery (expressed in MWs) during the period from November 1st of the prior year through October 31st of the current year.
3. WAPA may change the Reserves requirements as necessary to reflect any changes under the Balancing Authority Area agreement with the Balancing Authority Operator.
4. The LRS for Shasta Lake is determined as follows:
Shasta Lake LRS = (Shasta Lake Annual Peak Load Obligation) divided by (Shasta Lake Annual Peak Load Obligation + WAPA Annual Peak Load Obligation + Third Party Annual Peak Load Obligation)
Where:
• Shasta Lake’s Annual Peak Load Obligation = Shasta Lake’s annual maximum non-coincident peak load obligation as set forth in Section 2.5. • WAPA Annual Peak Load Obligation = WAPA’s annual peak load obligation as set forth in Section 2.6.
• Third Party Annual Peak Load Obligation = Annual maximum noncoincident peak load of all Third Party Electric Power Systems resident within the WAPA Sub-Balancing Authority Area that have a contractual obligation to provide Sub-Balancing Authority Contingency Reserves to WAPA.
• The LRS for Shasta Lake will be calculated using the equation in this Section, based on data provided by Shasta Lake to WAPA, on November 1st of each year to establish Shasta Lake’s Annual Peak Load Obligation for the period November 1st of the prior year through October 31st of the current year. Using Shasta Lake’s Annual Peak Load Obligation provided by Shasta Lake to WAPA on November 1st, WAPA shall calculate Shasta Lake’s updated LRS becoming effective on January 1st each year. 83 City of Shasta Lake
Exhibit C to
Contract 23-SNR-02977
5. The quantity of Contingency Reserves to be provided by Shasta Lake under this Contract in any hour shall be calculated by WAPA:
Shasta Lake Contingency Reserve Obligation = (Shasta Lake’s LRS) x (SubBalancing Authority share of Contingency Reserves) Where:
• Sub-Balancing Authority share of Contingency Reserves = Sub-Balancing Authority Area share of the Balancing Authority Area Contingency Reserves as calculated by SMUD as the BANC operator.
6. Each Party is responsible for supplying its Frequency Response Reserves, Contingency Reserves and COI Mitigation Reserves. Any Reserves activated due to the occurrence of any event shall be restored by the affected Party in as short a period of time as possible. If Shasta Lake self-provides or purchases its LRS of Reserves from a Third Party, WAPA shall periodically test the availability of such Reserves, as set forth in Section 9 hereof.
7. At the end of each hour, WAPA shall compare the actual amount of Reserves carried by Shasta Lake to Shasta Lake’s Reserve requirement. Shasta Lake will be deficient in Reserves if the actual amount of Reserves carried by Shasta Lake is less than Shasta Lake’s obligation.
8. Penalties imposed by NERC or WECC on the BANC Balancing Authority Area that are assessed by SMUD on the WAPA Sub-Balancing Authority Area for failure to carry required Reserves shall be applied only to the Party(ies) that caused the Reserve deficiency in proportion to which such Party(ies) contributed to the Reserve deficiency.
In the event it cannot be determined who caused the Reserve deficiency such costs shall be borne by the Parties in accordance with their respective LRS calculated pursuant to Section 4 hereof.
9. Activation of Reserves:
9.1 If Shasta Lake experiences a loss of resource, Shasta Lake shall immediately notify WAPA that they have lost a resource and need assistance. Shasta Lake will immediately begin actions to replace the lost resource, communicating with WAPA regularly.
9.2 If WAPA or a Third Party resident within the WAPA Sub-Balancing Authority Area experiences a loss of a resource, WAPA may direct Shasta Lake to activate Shasta Lake’s total LRS of Reserves or a portion thereof. 84 City of Shasta Lake
Exhibit C to
Contract 23-SNR-02977
10. Supplying or Receiving Reserve Energy:
10.1 Shasta Lake shall be required to activate its LRS of Reserves called upon within ten (10) minutes from the time notified by WAPA. Shasta Lake has no obligation to supply more than its LRS of Reserve energy, nor beyond of period sixty (60) minutes from the time notified by WAPA.
10.2 Settlement for Supplying Reserve Energy will be consistent with current business practice.
11. California-Oregon Intertie Overload Mitigation:
In the operation of the COI, WAPA, as the Sub-Balancing Authority Operator, has agreed to curtail schedules, as directed by BANC, and deploy COI Mitigation Energy to alleviate overloading on the COI. The deployment of COI Mitigation Energy is pursuant to WASN Business Practice COI Mitigation Procedure, BP-019. Updates to this BP will be coordinated with all affected parties prior to approval.
11.1 Schedule Curtailments: Shasta Lake’s share of the schedule curtailment will be determined in proportion to Shasta Lake’s schedules on COI. BANC will direct curtailment of the Sub-Balancing Authority Area’s COI schedules.
11.2 COI Mitigation Energy: Shasta Lake’s share of COI Mitigation Energy will be determined by multiplying the SBA’s total mitigation requirement (as determined by BANC) by Shasta Lake’s LRS. Shasta Lake may self-provide its COI Mitigation Energy with any resource that can provide the required energy within 30 minutes.
12. Penalties imposed by NERC and WECC on the BANC Balancing Authority that are assessed by BANC to WAPA for failure to recover from a disturbance shall be applied only to the Party(ies) that caused such failure.
13. All billings and payments associated with this Exhibit C shall be made in accordance with the Contract.
85 City of Shasta Lake
Exhibit D to
Contract 23-SNR-02977
1 EXHIBIT D
Maximum Deviation Band Calculation
1. This Exhibit D, to be effective under and as a part of Contract 23-SNR-02977 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit D or termination of the Contract.
2. Shasta Lake’s Maximum Deviation Band will be determined as follows:
Shasta Lake’s Maximum Deviation Band = +/- (0.05LD+5) MW Where:
• LD = Largest load change in any two consecutive hours during the last calendar year
WAPA and Shasta Lake have agreed upon a Maximum Deviation Band, effective upon the effective date of this Contract, of plus or minus 2 MW deviation from Shasta Lake’s net scheduled interchange value for each hour. Shasta Lake may request a change to this value, but not more often than once every year. If WAPA approves such change, it will become effective upon the first day of a month. A revised Exhibit D will be sent to Shasta Lake upon approval and will contain the effective date of such change.
86 City of Shasta Lake
Exhibit E to
Contract 23-SNR-02977
1 EXHIBIT E
Notices
1. This Exhibit E, to be effective under and as a part of Contract 23-SNR-02977 (Contract), shall become effective upon execution of the Contract; and shall remain in effect until either superseded by another Exhibit E or termination of the Contract.
2. The following Mailing Addresses are to be used to provide Notice in accordance with Section 21 of the Contract:
Western Area Power Administration
Vice President and Manager
Of Power Operations
For Sierra Nevada Region
114 Parkshore Drive
Folsom, CA 95630-4710
City of Shasta Lake
Electric Utility Director
4332 Vallecito Street
Shasta Lake, CA 96019
3. Each Party to the Contract, by written notice to the authorized representatives of the other Party, shall keep all participants informed of any changes of address, as they occur. These written notices shall take effect and remain in effect until another Exhibit E is drafted.
87 Effective September 1, 2007
WESTERN AREA POWER ADMINISTRATION
GENERAL POWER CONTRACT PROVISIONS Page
I. APPLICABILITY.
1. Applicability ............................................................................................................................................. 1 II. DELIVERY OF SERVICE PROVISIONS.
2. Character of Service...................................................................................................................................... 1
3. Use of Capacity or Energy in Excess of Contract Obligation....................................................................... 1
4. Continuity of Service .................................................................................................................................... 1
5. Multiple Points of Delivery........................................................................................................................... 2
6. Metering........................................................................................................................................................ 2
7. Existence of Transmission Service Contract................................................................................................. 3
8. Conditions of Transmission Service ............................................................................................................. 3
9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.......................................................... 3
10. Construction, Operation, and Maintenance of Contractor’s Power System............................................... 3-4 III.RATES, BILLING, AND PAYMENT PROVISIONS.
11. Change of Rates ............................................................................................................................................ 4
12. Minimum Seasonal or Annual Capacity Charge........................................................................................... 4
13. Billing and Payment................................................................................................................................... 4-5
14. Nonpayment of Bills in Full When Due ....................................................................................................... 5
15. Adjustments for Fractional Billing Period .................................................................................................... 5
16. Adjustments for Curtailments to Firm Service .......................................................................................... 5-6 IV. POWER SALES PROVISIONS.
17. Resale of Firm Electric Service (Wholesale Sales for Resale)...................................................................... 6
18. Distribution Principles .................................................................................................................................. 6
19. Contract Subject to Colorado River Compact............................................................................................... 6 V. FACILITIES PROVISIONS.
20. Design Approval ........................................................................................................................................ 6-7
21. Inspection and Acceptance............................................................................................................................ 7
22. As-Built Drawings ........................................................................................................................................ 7
23. Equipment Ownership Markers .................................................................................................................... 7
24. Third-Party Use of Facilities......................................................................................................................... 7
25. Changes to Western Control Facilities....................................................................................................... 7-8
26. Modification of Western Facilities................................................................................................................ 8
27. Transmission Rights...................................................................................................................................... 8
28. Construction and Safety Procedures .......................................................................................................... 8-9
29. Environmental Compliance........................................................................................................................... 9
30. Responsibility for Regulated Materials......................................................................................................... 9 VI. OTHER PROVISIONS.
31. Authorized Representatives of the Parties .................................................................................................... 9
32. Effect of Section Headings ......................................................................................................................... 10
33. Operating Guidelines and Procedures......................................................................................................... 10
34. Uncontrollable Forces................................................................................................................................. 10
35. Liability....................................................................................................................................................... 10
36. Cooperation of Contracting Parties........................................................................................................ 10-11
37. Transfer of Interest in the Contract or Change in Preference Status........................................................... 11
38. Choice of Law and Forum .......................................................................................................................... 12
39. Waivers ...................................................................................................................................................... 12
40. Notices ........................................................................................................................................................ 12
41. Contingent Upon Appropriations and Authorization .................................................................................. 12
42. Covenant Against Contingent Fees............................................................................................................. 12 * 43. Contract Work Hours and Safety Standards ............................................................................................... 13
44. Equal Opportunity Employment Practices.................................................................................................. 13
45. Use of Convict Labor.................................................................................................................................. 13 *Legal Citation Revised September 1, 2007
88 Effective September 1, 2007
1 WESTERN AREA POWER ADMINISTRATION
GENERAL POWER CONTRACT PROVISIONS
I. APPLICABILITY.
1. Applicability.
1.1 These General Power Contract Provisions (Provisions) shall be a part of the contract to which they are attached. In the event these Provisions differ from requirements of the contract, specific terms set forth in the contract shall prevail.
1.2 If the Contractor has member utilities which are either directly or indirectly receiving benefits from the contract, then the Contractor shall require such members to comply with Provisions 10, 17, 18, 19, 29, 30, 36, 43, 44, and 45 of these General Power Contract Provisions.
II. DELIVERY OF SERVICE PROVISIONS.
2. Character of Service.
Electric energy supplied or transmitted under the contract will be three-phase, alternating current, at a nominal frequency of sixty (60) hertz (cycles per second).
3. Use of Capacity or Energy in Excess of Contract Obligation.
The Contractor is not entitled to use Federal power, energy, or capacity in amounts greater than the Western contract delivery obligation in effect for each type of service provided for in the contract except with the approval of Western. Unauthorized overruns of contract delivery obligations shall be subject to charges specified in the contract or the applicable rate schedules. Overruns shall not establish any continuing right thereto and the Contractor shall cease any overruns when requested by Western, or in the case of authorized overruns, when the approval expires, whichever occurs first. Nothing in the contract shall obligate Western to increase any delivery obligation. If additional power, energy, or capacity is not available from Western, the responsibility for securing additional power, energy, or capacity shall rest wholly with the Contractor.
4. Continuity of Service.
Electric service will be supplied or transmitted continuously except for: (1) fluctuations, interruptions, or reductions due to uncontrollable forces, as defined in Provision 34 (Uncontrollable Forces) herein, (2) fluctuations, interruptions, or reductions due to operation of devices installed for power system protection; and (3) temporary fluctuations, interruptions, or reductions, which, in the opinion of the party supplying the service, are necessary or desirable for the purposes of maintenance, repairs, replacements, installation of equipment, or investigation and inspection. The party supplying service, except in case of emergency, will give the party to whom service is being provided reasonable advance notice of such temporary interruptions or reductions and will remove the cause thereof with diligence. 89 Effective September 1, 2007
2 5. Multiple Points of Delivery.
When electric service is supplied at or transmitted to two or more points of delivery under the same rate schedule, said rate schedule shall apply separately to the service supplied at or transmitted to each point of delivery; Provided, That where the meter readings are considered separately, and during abnormal conditions, the Contractor’s system is interconnected between points of delivery such that duplication of metered power is possible, the meter readings at each affected point of delivery will be adjusted to compensate for duplication of power demand recorded by meters at alternate points of delivery due to abnormal conditions which are beyond the Contractor’s control or temporary conditions caused by scheduled outages.
6. Metering.
6.1 The total electric power and energy supplied or transmitted under the contract will be measured by metering equipment to be furnished and maintained by Western, a designated representative of Western, or where situations deem it appropriate as determined by Western, by the Contractor or its agent(s). In the event metering equipment is furnished and maintained by the Contractor or its agent(s) and the equipment is used for billing and other accounting purposes by Western, the Contractor shall ensure that the metering equipment complies with applicable metering policies established by Western.
6.2 Meters shall be secured by appropriate security measures and meters shall not be accessed except when the meters are to be inspected, tested, adjusted, or repaired. Representatives of affected parties shall be afforded reasonable opportunity to be present upon such occasions. Metering equipment shall be inspected and tested each year by the party responsible for meter maintenance, unless a different test interval is determined in accordance with good utility practices by an applicable regional metering policy, or as agreed upon by the parties.
Meters shall also be tested at any reasonable time upon request by a party hereto, or by an affected supplemental power supplier, transmission agent, or control area operator. Any metering equipment found to be damaged, defective, or inaccurate shall be repaired and readjusted or replaced by the party responsible for meter maintenance as soon as practicable. Meters found with security breaches shall be tested for tampering and, if appropriate, meter readings shall be adjusted by Western pursuant to Provision 6.3 below.
6.3 Except as otherwise provided in Provision 6.4 hereof, should any meter that is used by Western for billing or other accounting purposes fail to register accurately, the electric power and energy supplied or transmitted during the period of failure to register accurately, shall, for billing purposes, be estimated by Western from the best available information.
6.4 If inspections and tests of a meter used by Western for billing or other accounting purposes disclose an error exceeding 2 percent, or a lesser range in error as agreed upon by the parties, then a correction based upon the inaccuracy found shall be made to the service records for the period of inaccuracy as determined by Western. If the period of inaccuracy cannot be determined, the inaccuracy shall be assumed to have existed during the entire monthly billing period immediately preceding the billing period in which the inspection or test was made and the resulting correction shall be made accordingly.
6.5 Any correction in billing or other accounting information that results from a correction in meter records shall be made in a subsequent monthly bill rendered by Western to the Contractor. Payment of such bill shall constitute full adjustment of any claim between the parties arising out of inaccurate metering equipment. 90 Effective September 1, 2007
3 7. Existence of Transmission Service Contract.
If the contract provides for Western to furnish services using the facilities of a third party, the obligation of Western shall be subject to and contingent upon the existence of a transmission service contract granting Western rights to use such facilities. If Western acquires or constructs facilities which would enable it to furnish direct service to the Contractor, Western, at its option, may furnish service over its own facilities.
8. Conditions of Transmission Service.
8.1 When the electric service under the contract is furnished by Western over the facilities of others by virtue of a transmission service arrangement, the power and energy will be furnished at the voltage available and under the conditions which exist from time to time on the transmission system over which the service is supplied.
8.2 Unless otherwise provided in the contract or applicable rate schedule, the Contractor shall maintain a power factor at each point of delivery from Western’s transmission agent as required by the transmission agent.
8.3 Western will endeavor to inform the Contractor from time to time of any changes planned or proposed on the system over which the service is supplied, but the costs of any changes made necessary in the Contractor’s system, because of changes or conditions on the system over which the service is supplied, shall not be a charge against or a liability of Western.
8.4 If the Contractor, because of changes or conditions on the system over which service under the contract is supplied, is required to make changes on its system at its own expense in order to continue receiving service under the contract, then the Contractor may terminate service under the contract upon not less than sixty (60) days written notice given to Western prior to making such changes, but not thereafter.
8.5 If Western notifies the Contractor that electric service provided for under the contract cannot be delivered to the Contractor because of an insufficiency of capacity available to Western in the facilities of others over which service under the contract is supplied, then the Contractor may terminate service under the contract upon not less than sixty (60) days written notice given to Western prior to the date on which said capacity ceases to be available to Western, but not thereafter.
9. Multiple Points of Delivery Involving Direct and Indirect Deliveries.
When Western has provided line and substation capacity under the contract for the purpose of delivering electric service directly to the Contractor at specified direct points of delivery and also has agreed to absorb transmission service allowance or discounts for deliveries of energy over other system(s) to indirect points of delivery and the Contractor shifts any of its load served under the contract from direct delivery to indirect delivery, Western will not absorb the transmission service costs on such shifted load until the unused capacity, as determined solely by Western, available at the direct delivery points affected is fully utilized.
10. Construction, Operation, and Maintenance of Contractor’s Power System.
The Contractor shall, and, if applicable, shall require each of its members or transmission agents to construct, operate, and maintain its power system in a manner which, as determined by Western, will not interfere with the operation of the system of Western or its transmission agents over which electric services are furnished to the Contractor under the contract, and in a manner which will coordinate with the protective relaying and other protective arrangements of the system(s) of Western or Western’s transmission agents. Western may reduce or 91 Effective September 1, 2007
4 discontinue furnishing services to the Contractor if, after notice by Western, the Contractor fails or refuses to make such changes as may be necessary to eliminate an unsatisfactory condition on the Contractor’s power system which is determined by Western to interfere significantly under current or probable conditions with any service supplied from the power system of Western or from the power system of a transmission agent of Western. Such a reduction or discontinuance of service will not relieve the Contractor of liability for any minimum charges provided for in the contract during the time said services are reduced or discontinued. Nothing in this Provision shall be construed to render Western liable in any manner for any claims, demands, costs, losses, causes of action, damages, or liability of any kind or nature arising out of or resulting from the construction, operation, or maintenance of the Contractor’s power system.
III. RATES, BILLING, AND PAYMENT PROVISIONS.
11. Change of Rates.
Rates applicable under the contract shall be subject to change by Western in accordance with appropriate rate adjustment procedures. If at any time the United States promulgates a rate changing a rate then in effect under the contract, it will promptly notify the Contractor thereof. Rates shall become effective as to the contract as of the effective date of such rate. The Contractor, by written notice to Western within ninety (90) days after the effective date of a rate change, may elect to terminate the service billed by Western under the new rate.
Said termination shall be effective on the last day of the billing period requested by the Contractor not later than two (2) years after the effective date of the new rate. Service provided by Western shall be paid for at the new rate regardless of whether the Contractor exercises the option to terminate service.
12. Minimum Seasonal or Annual Capacity Charge.
When the rate in effect under the contract provides for a minimum seasonal or annual capacity charge, a statement of the minimum capacity charge due, if any, shall be included in the bill rendered for service for the last billing period of the service season or contract year as appropriate, adjusted for increases or decreases in the contract rate of delivery and for the number of billing periods during the year or season in which service is not provided. Where multiple points of delivery are involved and the contract rate of delivery is stated to be a maximum aggregate rate of delivery for all points, in determining the minimum seasonal or annual capacity charge due, if any, the monthly capacity charges at the individual points of delivery shall be added together.
13. Billing and Payment.
13.1 Western will normally issue bills to the Contractor for services furnished during the preceding month within ten (10) days after the end of the billing period.
13.2 If Western is unable to issue timely monthly bill(s), Western may elect to render estimated bill(s). Such estimated bill(s) shall be subject to the same payment provisions as final bill(s), and any applicable adjustments will be shown on a subsequent monthly bill.
13.3 Payments of bills issued by Western are due and payable by the Contractor before the close of business on the twentieth (20th) calendar day after the date of issuance of each bill or the next business day thereafter if said day is a Saturday, Sunday, or Federal holiday. Bills shall be considered paid when payment is received by Western. Bills will be paid electronically or via the Automated Clearing House method of payment unless a written request to make payments by mail is submitted by the Contractor and approved by Western.
Should Western agree to accept payments by mail, these payments will be accepted as timely and without assessment of the charge provided for in Provision 14 (Nonpayment of Bills in Full When Due) if a United States 92 Effective September 1, 2007
5 Post Office first class mail postmark indicates the payment was mailed at least three (3) calendar days before the due date.
13.4 The parties agree that net billing procedures will be used for payments due Western by the Contractor and for payments due the Contractor by Western for the sale or exchange of electric power and energy, use of transmission facilities, operation and maintenance of electric facilities, and other services. Payments due one party in any month shall be offset against payments due the other party in such month, and the resulting net balance shall be paid to the party in whose favor such balance exists. The parties shall exchange such reports and information that either party requires for billing purposes. Net billing shall not be used for any amounts due which are in dispute.
14. Nonpayment of Bills in Full When Due.
14.1 Bills not paid in full by the Contractor by the due date specified in Provision 13 (Billing and Payment) hereof shall bear a charge of five hundredths percent (0.05%) of the principal sum unpaid for each day payment is delinquent, to be added until the amount due is paid in full. Western will also assess a fee of twentyfive dollars ($25.00) for processing a late payment. Payments received will first be applied to the charges for late payment assessed on the principal and then to payment of the principal.
14.2 Western shall have the right, upon not less than fifteen (15) days advance written notice, to discontinue furnishing the services specified in the contract for nonpayment of bills in full when due, and to refuse to resume such services so long as any part of the amount due remains unpaid. Such a discontinuance of service will not relieve the Contractor of liability for minimum charges during the time service is so discontinued. The rights reserved to Western herein shall be in addition to all other remedies available to Western either by law or in equity, for the breach of any of the terms hereof.
15. Adjustments for Fractional Billing Period.
The demand or capacity charge and minimum charges shall each be proportionately adjusted when fractional billing periods are applicable under this contract. A fractional billing period can occur: 1) at the beginning or end of electric service; 2) at the beginning or end of irrigation pumping service each year; 3) for a fractional billing period under a new rate schedule; or 4) for fractional periods due to withdrawals of electric services. The adjustment will be made based on the ratio of the number of hours that electric service is available to the Contractor in such fractional billing period, to the total number of hours in the billing period involved.
Energy billing shall not be affected by fractional billing periods.
16. Adjustments for Curtailments to Firm Service.
16.1 Billing adjustments will be made if firm electric service is interrupted or reduced because of conditions on the power system of the United States for periods of one (1) hour or longer in duration each. Billing adjustments will not be made when such curtailment of electric service is due to a request by the Contractor or a discontinuance of electric service by Western pursuant to Provision 14 (Nonpayment of Bills In Full When Due).
For purposes of billing adjustments under this Provision, the term power system of the United States shall include transmission facilities used under contract but not owned by the United States.
16.2 The total number of hours of curtailed firm electric service in any billing period shall be determined by adding: (1) the sum of the number of hours of interrupted electric service to (2) the product, of each reduction, of: the number of hours reduced electric service and the percentage by which electric service was reduced below the delivery obligation of Western at the time of each said reduction of electric service. The demand or capacity charge and applicable minimum charges shall each be proportionately adjusted in the ratio that 93 Effective September 1, 2007
6 the total number of hours of electric service determined to have been curtailed bears to the total number of hours in the billing period involved.
16.3 The Contractor shall make written claim within thirty (30) days after receiving the monthly bill, for adjustment on account of any curtailment of firm electric service, for periods of one (1) hour or longer in duration each, alleged to have occurred that is not reflected in said bill. Failure to make such written claim, within said thirty-day (30-day) period, shall constitute a waiver of said claim. All curtailments of electric service, which are due to conditions on the power system of the United States, shall be subject to the terms of this Provision; Provided, That withdrawal of power and energy under the contract shall not be considered a curtailment of electric service.
IV. POWER SALES PROVISIONS.
17. Resale of Firm Electric Service (Wholesale Sales for Resale).
The Contractor shall not sell any firm electric power or energy supplied under the contract to any electric utility customer of the Contractor for resale by that utility customer; Provided, That the Contractor may sell the electric power and energy supplied under the contract to its members on condition that said members not sell any of said power and energy to any customer of the member for resale by that customer.
18. Distribution Principles.
The Contractor agrees that the benefits of firm electric power or energy supplied under the contract shall be made available to its consumers at rates that are established at the lowest possible level consistent with sound business principles, and that these rates will be established in an open and public manner. The Contractor further agrees that it will identify the costs of firm electric power or energy supplied under the contract and power from other sources to its consumers upon request. The Contractor will demonstrate compliance with the requirements of this Provision to Western upon request.
19. Contract Subject to Colorado River Compact.
Where the energy sold under the contract is generated from waters of the Colorado River system, the contract is made upon the express condition and with the express covenant that all rights under the contract shall be subject to and controlled by the Colorado River Compact approved by Section 13 (a) of the Boulder Canyon Project Act of December 21, 1928, 43 U.S.C. §§ 617a-e, and the parties to the contract shall observe and be subject to and controlled by said Colorado River Compact in the construction, management, and operation of the dams, reservoirs, and powerplants from which electrical energy is to be furnished by Western to the Contractor under the contract, and in the storage, diversion, delivery, and use of water for the generation of electrical energy to be delivered by Western to the Contractor under the contract.
V. FACILITIES PROVISIONS.
20. Design Approval.
All facilities, construction, and installation by the Contractor pursuant to the contract shall be subject to the approval of Western. Facilities interconnections shall normally conform to Western’s current “General Requirements for Interconnection,” in effect upon the signing of the contract document providing for each interconnection, copies of which are available from Western. At least ninety (90) days, unless otherwise agreed, 94 Effective September 1, 2007
7 prior to the date the Contractor proposes to commence construction or to incur an obligation to purchase facilities to be installed pursuant to the contract, whichever date is the earlier, the Contractor shall submit, for the approval of Western, detailed designs, drawings, and specifications of the facilities the Contractor proposes to purchase, construct, and install. The Contractor assumes all risks for construction commenced or obligations to purchase facilities incurred prior to receipt of approval from Western. Western review and approval of designs and construction work in no way implies that Western is certifying that the designs meet the Contractor’s needs.
21. Inspection and Acceptance.
Western shall have the right to inspect the materials and work furnished by the Contractor, its agents, employees, and subcontractors pursuant to the contract. Such inspections shall be at reasonable times at the work site. Any materials or work that Western determines is defective or not in accordance with designs, drawings, and specifications, as approved by Western, shall be replaced or modified, as directed by Western, at the sole expense of the Contractor before the new facilities are energized.
22. As-Built Drawings.
Within a reasonable time, as determined by Western, after the completion of construction and installation of facilities pursuant to the contract, the Contractor shall submit to Western marked as-built prints of all Western drawings affected by changes made pursuant to the contract and reproducible drawings the Contractor has prepared showing facilities of Western. The Contractor’s drawings of Western facilities shall use drawing title blocks, drawing numbers, and shall be prepared in accordance with drafting standards all as approved by Western.
Western may prepare, revise, or complete said drawings and bill the Contractor if the Contractor fails to provide such drawings to Western within a reasonable time as determined by Western.
23. Equipment Ownership Markers.
23.1 The Contractor shall identify all movable equipment and, to the extent agreed upon by the parties, all other salvageable facilities constructed or installed on the United States right-of-way or in Western substations pursuant to the contract which are owned by the Contractor, by permanently affixing thereto suitable markers clearly identifying the Contractor as the owner of said equipment and facilities.
23.2 If requested by the Contractor, Western shall identify all movable equipment and, to the extent agreed upon by the parties, all other salvageable facilities constructed or installed on the Contractor’s right-of-way or in the Contractor’s substations pursuant to the contract which are owned by the United States, by permanently affixing thereto suitable markers clearly identifying the United States as the owner of said equipment and facilities.
24. Third-Party Use of Facilities.
The Contractor shall notify Western of any proposed system change relating to the facilities governed by the contract or allowing third-party use of the facilities governed by the contract. If Western notifies the Contractor that said system change will, as solely determined by Western, adversely affect the operation of Western’s system the Contractor shall, at no cost to Western, provide a solution to said adverse effect acceptable to Western.
25. Changes to Western Control Facilities.
If at any time during the term of the contract, Western determines that changes or additions to control, relay, or communications facilities are necessary to maintain the reliability or control of Western’s transmission 95 Effective September 1, 2007
8 system, and said changes or additions are entirely or partially required because of the Contractor’s equipment installed under the contract, such changes or additions shall, after consultation with the Contractor, be made by Western with all costs or a proportionate share of all costs, as determined by Western, to the be paid by the Contractor. Western shall notify the Contractor in writing of the necessary changes or additions and the estimated costs to be paid by the Contractor. If the Contractor fails to pay its share of said estimated costs, Western shall have the right, after giving sixty (60) days’ written notice to the Contractor, to terminate the applicable facility installation provisions to the contract and require the removal of the Contractor’s facilities.
26. Modification of Western Facilities.
Western reserves the right, at any time, to modify its facilities. Western shall keep the Contractor informed of all planned modifications to Western facilities which impact the facilities installation pursuant to the contract. Western shall permit the Contractor to change or modify its facilities, in a manner satisfactory to and at no cost or expense to Western, to retain the facilities interconnection pursuant to the contract. At the Contractor’s option, Western shall cooperate with the Contractor in planning alternate arrangements for service which shall be implemented at no cost or expense to Western. The Contractor and Western shall modify the contract, as necessary, to conform to the new facilities arrangements.
27. Transmission Rights.
If the contract involves an installation which sectionalizes a Western transmission line, the Contractor hereby agrees to provide a transmission path to Western across such sectionalizing facilities at no cost or expense to Western. Said transmission path shall be at least equal, in terms of capacity and reliability, to the path in the Western transmission line prior to the installation pursuant to the contract.
28. Construction and Safety Procedures.
28.1 The Contractor hereby acknowledges that it is aware of the hazards inherent in high-voltage electric lines and substations, and hereby assumes full responsibility at all times for the adoption and use of necessary safety measures required to prevent accidental harm to personnel engaged in the construction, inspection, testing, operation, maintenance, replacement, or removal activities of the Contractor pursuant to the contract. The Contractor and the authorized employees, agents, and subcontractors of the Contractor shall comply with all applicable safety laws and building and construction codes, including the provisions of Chapter 1 of the Power System Operations Manual, entitled Power System Switching Procedure, and the Occupational Safety and Health Administration regulations, Title 29 C.F.R. §§ 1910 and 1926, as amended or supplemented. In addition to the safety program required herein, upon request of the United States, the Contractor shall provide sufficient information to demonstrate that the Contractor’s safety program is satisfactory to the United States.
28.2 The Contractor and its authorized employees, agents, and subcontractors shall familiarize themselves with the location and character of all the transmission facilities of Western and interconnections of others relating to the work performed by the Contractor under the contract. Prior to starting any construction, installation, or removal work, the Contractor shall submit a plan of procedure to Western which shall indicate the sequence and method of performing the work in a safe manner. No work shall be performed by the Contractor, its employees, agents, or subcontractors until written authorization to proceed is obtained from Western.
28.3 At all times when the Contractor, its employees, agents, or subcontractors are performing activities of any type pursuant to the contract, such activities shall be under supervision of a qualified employee, agent, or subcontractor of the Contractor who shall be authorized to represent the Contractor in all matters pertaining to the activity being performed. The Contractor and Western will keep each other informed of the names of their designated representatives at the site.
96 Effective September 1, 2007
9 28.4 Upon completion of its work, the Contractor shall remove from the vicinity of the right-ofway of the United States all buildings, rubbish, used materials, concrete forms, and other like material belonging to the Contractor or used under the Contractor’s direction, and in the event of failure to do so the same may be removed by Western at the expense of the Contractor.
28.5 In the event the Contractor, its employees, agents, or subcontractors fail to comply with any requirement of this Provision, or Provision 21 (Inspection and Acceptance) herein, Western or an authorized representative may issue an order to stop all or any part of the work until such time as the Contractor demonstrates compliance with the provision at issue. The Contractor, its employees, agents, or subcontractors shall make no claim for compensation or damages resulting from such work stoppage.
29. Environmental Compliance.
Facilities installed under the contract by any party shall be constructed, operated, maintained, replaced, transported, and removed subject to compliance with all applicable laws, including but not limited to the National Historic Preservation Act of 1966, 16 U.S.C. §§ 470x-6, the National Environmental Policy Act of 1969, 42 U.S.C. §§ 4321-4347, the Endangered Species Act of 1973, 16 U.S.C. §§ 1531-1544, and the Archaeological Resources Protection Act of 1979, 16 U.S.C. §§ 470aa-470mm, and the regulations and executive orders implementing these laws, as they may be amended or supplemented, as well as any other existing or subsequent applicable laws, regulations, and executive orders.
30. Responsibility for Regulated Materials.
When either party owns equipment containing regulated material located on the other party’s substation, switchyard, right-of-way, or other property, the equipment owner shall be responsible for all activities related to regulated materials in such equipment that are necessary to meet the requirements of the Toxic Substances Control Act, 15 U.S.C. §§ 2601-2692, the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901-6992k, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601-9675, the Oil Pollution Act of 1990, 33 U.S.C. §§ 2702-2761, the Clean Water Act, 33 U.S.C. §§ 1251-1387, the Safe Drinking Water Act, 42 U.S.C. §§ 300f-j26, and the regulations and executive orders implementing these laws, as they may be amended or supplemented, and any other existing or subsequent applicable laws, regulations, and executive orders. Each party shall label its equipment containing regulated material in accordance with appropriate laws and regulations. If the party owning the equipment does not perform activities required under appropriate laws and regulations within the time frame specified therein, the other party may perform or cause to be performed the required activities after notice to and at the sole expense of the party owning the equipment.
VI. OTHER PROVISIONS.
31. Authorized Representatives of the Parties.
Each party to the contract, by written notice to the other, shall designate the representative(s) who is (are) authorized to act in its behalf with respect to those matters contained in the contract which are the functions and responsibilities of the authorized representatives of the parties. Each party may change the designation of its authorized representative(s) upon oral notice given to the other, confirmed promptly by written notice. 97 Effective September 1, 2007
10 32. Effect of Section Headings.
Section headings or Provision titles appearing in the contract or these General Power Contract Provisions are inserted for convenience only and shall not be construed as interpretations of text.
33. Operating Guidelines and Procedures.
The parties to the contract may agree upon and put into effect from time to time, such other written guidelines and procedures as may be required in order to establish the methods of operation of the power system to be followed in the performance of the contract.
34. Uncontrollable Forces.
Neither party to the contract shall be considered to be in default in performance of any of its obligations under the contract, except to make payment as specified in Provision 13 (Billing and Payment) herein, when a failure of performance shall be due to an uncontrollable force. The term “uncontrollable force” means any cause beyond the control of the party affected, including but not restricted to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority and action or nonaction by, or failure to obtain the necessary authorizations or approvals from, any governmental agency or authority, which by exercise of due diligence such party could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. Nothing contained herein shall be construed to require a party to settle any strike or labor dispute in which it may be involved. Either party rendered unable to fulfill any of its obligations under the contract by reason of an uncontrollable force shall give prompt written notice of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch.
35. Liability.
35.1 The Contractor hereby agrees to indemnify and hold harmless the United States, its employees, agents, or contractors from any loss or damage and from any liability on account of personal injury, death, or property damage, or claims for personal injury, death, or property damage of any nature whatsoever and by whomsoever made arising out of the Contractors’, its employees’, agents’, or subcontractors’ construction, operation, maintenance, or replacement activities under the contract.
35.2 The United States is liable only for negligence on the part of its officers and employees in accordance with the Federal Tort Claims Act, 28 U.S.C. §§ 1346(b), 1346(c), 2401(b), 2402, 2671, 2672, 2674- 2680, as amended or supplemented.
36. Cooperation of Contracting Parties.
If, in the operation and maintenance of their respective power systems or electrical equipment and the utilization thereof for the purposes of the contract, it becomes necessary by reason of any emergency or extraordinary condition for either party to request the other to furnish personnel, materials, tools, and equipment for the accomplishment thereof, the party so requested shall cooperate with the other and render such assistance as the party so requested may determine to be available. The party making such request, upon receipt of properly itemized bills from the other party, shall reimburse the party rendering such assistance for all costs properly and reasonably incurred by it in such performance, including administrative and general expenses, such costs to be determined on the basis of current charges or rates used in its own operations by the party rendering assistance.
Issuance and payment of bills for services provided by Western shall be in accordance with Provisions 13 (Billing 98 Effective September 1, 2007
11 and Payment) and 14 (Nonpayment of Bills in Full When Due) herein. Western shall pay bills issued by the Contractor for services provided as soon as the necessary vouchers can be prepared which shall normally be within twenty (20) days.
37. Transfer of Interest in Contract or Change in Preference Status.
37.1 No voluntary transfer of the contract or of the rights of the Contractor under the contract shall be made without the prior written approval of the Administrator of Western. Any voluntary transfer of the contract or of the rights of the Contractor under the contract made without the prior written approval of the Administrator of Western may result in the termination of the contract; Provided, That the written approval of the Administrator shall not be unreasonably withheld; Provided further, That if the Contractor operates a project financed in whole or in part by the Rural Utilities Service, the Contractor may transfer or assign its interest in the contract to the Rural Utilities Service or any other department or agency of the Federal Government without such prior written approval; Provided further, That any successor to or assignee of the rights of the Contractor, whether by voluntary transfer, judicial sale, foreclosure sale, or otherwise, shall be subject to all the provisions and conditions of the contract to the same extent as though such successor or assignee were the original Contractor under the contract; and, Provided further, That the execution of a mortgage or trust deed, or judicial or foreclosure sales made thereunder, shall not be deemed voluntary transfers within the meaning of this Provision.
37.2 The Contractor shall maintain its status as an entity eligible for preference in Western’s sale of Federal power pursuant to Reclamation law, as amended and supplemented.
37.3 Western shall give the Contractor written notice of Western’s proposed determination that the Contractor has violated Provision 37.1 and Western’s proposed action in response to the violation.
37.4 The Contractor shall have 120 days after receipt of Western’s notice provided under Provision 37.3 to submit a written response to Western. The Contractor may also make an oral presentation to the Administrator during this 120-day period.
37.5 At any time during this process, the Contractor and Western may agree upon corrective action to resolve Western’s proposed determination that the Contractor is in violation of Provision 37.1.
37.6 Within 30 days of receipt of the Contractor’s written response provided under Provision 37.4, Western will notify the Contractor in writing of its final decision. The Administrator’s written notice will include the intended action, the effective date thereof, and the reasons for taking the intended action. Implementation of the Administrator’s action shall take place no earlier than 60 days from the Contractor’s receipt of such notice.
37.7 Any successor to Western shall be subject to all the provisions and conditions of the contract to the same extent as though such successor were an original signatory to the contract.
37.8 Nothing in this Provision shall preclude any right to judicial review available to the Contractor under Federal law.
99 Effective September 1, 2007
12 38. Choice of Law and Forum.
Federal law shall control the obligations and procedures established by this contract and the performance and enforcement thereof. The forum for litigation arising from this contract shall exclusively be a Federal court of the United States, unless the parties agree to pursue alternative dispute resolution.
39. Waivers.
Any waivers at any time by either party to the contract of its rights with respect to a default or any other matter arising under or in connection with the contract shall not be deemed a waiver with respect to any subsequent default or matter.
40. Notices.
Any notice, demand, or request specifically required by the contract or these Provisions to be in writing shall be considered properly given when delivered in person or sent by postage prepaid registered or certified mail, commercial delivery service, facsimile, electronic, prepaid telegram, or by other means with prior agreement of the parties, to each party’s authorized representative at the principal offices of the party. The designation of the person to be notified may be changed at any time by similar notice. Where facsimile or electronic means are utilized for any communication covered by this Provision, the sending party shall keep a contemporaneous record of such communications and shall verify receipt by the other party.
41. Contingent Upon Appropriations and Authorization.
41.1 Where activities provided for in the contract extend beyond the current fiscal year, continued expenditures by the United States are contingent upon Congress making the necessary appropriations required for the continued performance of the United States’ obligations under the contract. In case such appropriation is not made, the Contractor hereby releases the United States from its contractual obligations and from all liability due to the failure of Congress to make such appropriation.
41.2 In order to receive and expend funds advanced from the Contractor necessary for the continued performance of the obligations of the United States under the contract, additional authorization may be required. In case such authorization is not received, the Contractor hereby releases the United States from those contractual obligations and from all liability due to the lack of such authorization.
42. Covenant Against Contingent Fees.
The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure the contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, Western shall have the right to annul the contract without liability or in its discretion to deduct from the contract price or consideration the full amount of such commission, percentage, brokerage, or contingent fee. 100
Effective September 1, 2007
13 43. Contract Work Hours and Safety Standards.
The contract, to the extent that it is of a character specified in Section 103 of the Contract Work Hours and Safety Standards Act (Act), 40 U.S.C. § 3701, as amended or supplemented, is subject to the provisions of the Act, 40 U.S.C. §§ 3701-3708, as amended or supplemented, and to regulations promulgated by the Secretary of Labor pursuant to the Act.
44. Equal Opportunity Employment Practices.
Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as amended by Executive Order No. 12086, 43 Fed. Reg. 46501 (1978), as amended or supplemented, which provides, among other things, that the Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin, is incorporated herein by reference the same as if the specific language had been written into the contract, except that Indian Tribes and tribal organizations may apply Indian preference to the extent permitted by Federal law.
45. Use of Convict Labor.
The Contractor agrees not to employ any person undergoing sentence of imprisonment in performing the contract except as provided by 18 U.S.C. § 3622(c), as amended or supplemented, and Executive Order No. 11755, 39 Fed. Reg. 779 (1973), as amended or supplemented. 101
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Report and Recommendations 7.1 Reviewed and Approved
City Manager
AGENDA ITEM
City Council Meeting
TO: Mayor and City Council Members
FROM: Jessaca Lugo, City Manager
DATE: January 2, 2024
SUBJECT: CONDUCTING THE PUBLIC HEARING FOR A PROPERTY OWNER
PROTEST BALLOTING, APPROVE THE FORMATION OF THE
SHASTA GATEWAY INDUSTRIAL PARK LANDSCAPE AND
LIGHTING MAINTENANCE DISTRICT, CONFIRM THE ENGINEER’S
REPORT, ASSESSMENT DIAGRAM AND ORDER OF THE LEVY AND
COLLECTION OF ASSESSMENTS
FILE NO.:
RECOMMENDATION:
Staff recommends the City Council:
1. Conduct the Public Hearing upon the proposed formation and consider all objections and protests, whether written or oral; if any; and
2. Close the Public Hearing and direct staff to conduct Property Owner Protest Ballot Proceedings and tabulate Ballots for the Formation of Shasta Gateway Industrial Park Landscape and Lighting Maintenance District; and
3. Adopt Resolution CC-2024-XX Declaring the Results of the Property Owner Protest Ballot Proceeding Conducted for the Levy of Assessments Related to the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Commencing in Fiscal Year 2023/2024; and
4. If Applicable: Adopt Resolution CC-2024-XX Approving the Formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, Confirming the Engineer’s Report, the Assessment Diagram and Ordering the Levy and Collection of Assessments Commencing in Fiscal Year 2023/2024.
BACKGROUND:
On November 7, 2023, the City Council initiated proceedings for a formation and balloting process for the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District 103
along with adopting Resolution CC-2023-XX declaring the City’s intention to form the special district, to levy and collect assessments, approved the Engineer’s Report and Assessment Diagram, and declared the public hearing to conduct Property Owner Protest Ballot Proceedings (Proposition 218).
During the Public Hearing, the City Council shall consider all objections or protests, if any, to the proposed assessments, whether oral or written. Upon close of the Public Hearing, Proposition 218 ballots received will be opened and tabulated, consistent with all applicable procedures required by Proposition 218 and its implementing statutes, weighted by the proposed assessment amount on each property, and the results announced. If the time to tabulate the ballot exceeds the time for the City Council meeting, the City Council may continue the tabulation to the next scheduled council meeting, so long as such time and location are announced during the meeting.
The returned ballots will remain unopened and in the charge of the City Clerk until the close of the public hearing. At the close of the public hearing the City Clerk will direct staff or designated party to tabulate the ballot. For purposes of tabulation, the return ballots submitted, and not withdrawn, will be tabulated and weighted according to the financial obligation of the particular parcel. Article XIIID of the California Constitution provides that if, as a result of the assessment ballot proceeding, a majority protest is found to exist, the City Council shall not have the authority to form the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District. A majority protest exists if the assessment ballots submitted, opposes to the annexation and assessments. If there is no Majority Protest, the City Council may approve the proposed formation and assessments of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District, by adopting the appropriate resolution(s) attached to this Staff Report. If approved, the assessments may be manually billed for Fiscal Year 2023/2024.
FISCAL IMPACTS:
No Fiscal Impact
ATTACHMENTS:
FY 2023-2024 Engineer’s Report for Proposed Formation of Shasta Gateway Industrial Park Landscape and Lighting Maintenance District.
Resolution CC-2024-XX
Resolution CC-2024-XX
DISTRIBUTION:
City Council
City Attorney
Finance Department
City Clerk
RESOLUTION CC-2024-XX
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE, COUNTY OF
SHASTA, STATE OF CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY
OWNER PROTEST BALLOT PROCEEDING CONDUCTED FOR THE LEVY OF
ASSESSMENTS RELATED TO THE FORMATION OF THE SHASTA GATEWAY
INDUSTRIAL PARK LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT, COMMENCING IN FISCAL YEAR 2023/2024
WHEREAS, the City Council of the City of Shasta Lake (“City”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2, Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “Act”), did by previous resolutions, initiate proceedings for the formation of the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District (the “District”) and declared its intention to conduct a protest balloting to establish maximum assessments for the Districts commencing in Fiscal Year 2023/2024 for the special benefits received by properties therein for the operation, maintenance and servicing of landscaping and lighting improvements, and all appurtenant facilities related thereto; and,
WHEREAS, in accordance with the provisions of the California Constitution, Article XIIID, the City Council has caused and conducted a property owner protest ballot proceeding for the formation of the District and the proposed annual levy off assessments; and, WHEREAS, the assessment presented to the property owner of record within the District reflects the special benefit and financial obligation for the costs and expenses related to the maintenance, servicing and operation of local landscaping and lighting improvements therein as authorized by the Act and the provisions of the California Constitution and the ballot presented clearly identified the total amount balloted on the property, the proposed assessment rate, the property’s annual amount commencing with Fiscal Year 2023/2024 and the inflationary adjustment applicable to future assessments; and WHEREAS, upon the close of the Public Hearing held on January 2, 2024, the protest ballots returned by the landowner of record within the District, was opened and tabulated, the results of which are illustrated below:
Yes _______________
No _______________
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION 1. That the foregoing recitals are true and correct.
SECTION 2. The protest proceedings were conducted with the notices and ballots of the proposed new assessments presented to the qualified property owners within the District as required by law, with a required receipt of the returned ballots to the City Clerk prior to the close of the Public Hearing on January 2, 2024.
SECTION 3. The canvass of the protest ballots cast for the proposed assessments and formation of the District, received prior to the close of the public hearing and weighted 105
according to the proportional financial obligation of the affected properties is hereby approved and confirmed.
SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of this meeting, which shall constitute the official declaration of the result of such property owner protest ballot proceeding.
SECTION 5. This Resolution shall become effective immediately upon its adoption and the City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 2nd day of January 2024 by the following vote.
AYES:
NOES:
ABSENT:
__________________________
JANICE POWELL, Mayor
ATTEST:
____________________________
Charity Tatlow, Deputy City Clerk
106
RESOLUTION CC-2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE, COUNTY OF
SHASTA, STATE OF CALIFORNIA APPROVING THE FORMATION OF THE SHASTA
GATEWAY INDUSTRIAL PARK LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT, CONFIRMING THE ENGINEER’S REPORT, THE ASSESSMENT DIAGRAM
AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS COMMENCING IN FISCAL YEAR 2023/2024
WHEREAS, the City Council of the City of Shasta Lake (“City”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2, Division 15 of the California Streets and Highways Code, commencing with Section 22500 (“Act”), did by previous resolutions, initiate proceedings for the formation of an assessment District within the City to be known and designated as the Shasta Gateway Industrial Park Landscape and Lighting Maintenance District (“District”) and to conduct a protest balloting for the levy of new or increased assessments commencing in Fiscal Year 2023/2024 for the special benefits received by properties therein for the operation, maintenance and servicing of landscaping and lighting improvements, and all appurtenant facilities related thereto in accordance with the provisions of the California Constitution Article XIIID (the “Constitution”); and, WHEREAS, an Engineer’s Report containing an Assessment Diagram has been prepared, filed and presented to the City Council in connection with the proceedings for the formation of the District and the annual levy of assessments related thereto commencing on Fiscal Year 2023/2024 as required by the Act and the Constitution; and, WHEREAS, the City Council has duly held a public hearing regarding these matters and has conducted a property owner protest ballot proceeding for the proposed new assessments related thereto, the results of which have been presented and confirmed by this City Council; and,
WHEREAS, the City Council desires to levy and collect an assessment against the parcels of land within the District for the fiscal year commencing July 1, 2023 and ending June 30, 2024 (Fiscal Year 2022/2023), to pay the costs and expenses of the ongoing operation, maintenance, and servicing of local landscaping and lighting improvements, appurtenant facilities; and the incidental expenses related thereto that have been determined to be of special benefit to the property and the development of property, as described in the Engineer’s Report.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION 1. That the foregoing recitals are true and correct.
SECTION 2 Based on testimony given, the results of the property owner protest ballot proceedings and the documents and discussion presented, the City Council has directed and confirmed any necessary modifications or amendments to the Engineer’s Report previously presented and filed based on the tabulation of the property owner protest ballots, and said modifications or amendments so reflected by the minutes of this meeting shall by reference be incorporated into the approved Engineer’s Report.
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SECTION 3. The Engineer’s Report and Assessment Diagram connected therewith as approved, shall constitute the territory and properties within the District, and confirm and establish the method of apportionment and the maximum assessment rate including the assessment range formula as presented to the property owners of record in the ballot proceeding. Said assessments as described in the Engineer’s Report as submitted or amended, including the assessment range formula described therein, are hereby confirmed and adopted by the City Council.
SECTION 4. Based upon its review (and amendments, as applicable) of the Engineer’s Report, which has been filed with the City Clerk, the City Council hereby finds and determines that:
a. The land within the District as approved will receive special benefit from the operation, maintenance and servicing of landscaping and lighting improvements and all appurtenant facilities related thereto, to be provided by the District as described in the approved Engineer’s Report.
b. The District defined by the Assessment Diagrams in the approved Engineer’s Report includes all the lands receiving such special benefit.
c. The net amount to be assessed upon the land within the District as approved has been applied based on the formula and method which fairly applies the net amount on the parcel based on the special benefit to be received by the parcel from the improvements and services to be provided commencing with Fiscal Year 2023/2024.
SECTION 5. The City Council hereby orders the proposed improvements as described within the approved Engineer’s Report to be made. The improvements so described generally include, but are not limited to, the maintenance, operation and servicing of the local landscaping and lighting improvements established or installed in connection with the development of properties within the approved District or directly associated with the properties within District and shall be maintained by the City for the special benefit of the properties therein pursuant to the Act.
SECTION 6. The adoption of this Resolution constitutes the formation of the District, proposed assessments, the boundaries of which are contained in the Assessment Diagram; the establishment of the maximum assessment rate and assessment range formula connected therewith; and the assessments for the fiscal year commencing July 1, 2023 and ending June 30, 2024, as described in the approved Engineer’s Report and adopted by the City Council, and for each parcel of land the amount of levy so described in the approved Engineer’s Report, and such levies shall be collected annually via County tax bill as directed.
For Fiscal Year 2023/2024 the property owner(s) will receive a manual assessment invoice.
SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the City Council’s approval of the formation of the District, proposed assessments, the adoption and confirmation of the Assessment Diagram, and the establishment of the maximum assessment rate(s), assessment range formula and the assessments for Fiscal Year 2023/2024 as described in the approved Engineer’s Report as submitted or amended herein.
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SECTION 8. The City Clerk or their designee is hereby authorized and directed to manually bill the levy of assessments for Fiscal Year 2023/2024 as approved, upon adoption of the annual Resolution confirming the annual assessments for all parcels in the District.
PASSED, APPROVED, AND ADOPTED this 2nd day of January 2024 by the following vote.
AYES:
NOES:
ABSENT:
__________________________
JANICE POWELL, Mayor
ATTEST:
____________________________
Charity Tatlow, Deputy City Clerk
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