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HomeMy WebLinkAbout37-79 '.. . -r~I" ,1 .$.~.f'''l RESOLUTION NO. ..11-7'1 1 A RESOLUTION of the City of Port Angeles, authorizing the Mayor and City Clerk to execute a contract amending the Net Bill- ing Agreement between the City of Port Angeles, the Bonneville Power Administra- tion and the Washington Public Power Supply System. 2 3 4 5 The City of Port Angeles (hereinafter "City") has 6 entered into Net Billing Agreements with the Bonneville Power Ad- 7 ministrator (hereinafter "Bonneville") and Washington Public 8 Power Supply System (hereinafter "System"). 9 These agreements do not provide authority for Bonneville 10 to make direct payments to cover any amounts which cannot be paid 11 through the Net Billing Agreements between the City, other partic- 12 ipants in similar agreements, Bonneville and the System. 13 The agreement between the City, Bonneville, and the 14 System, should be amended to provide for this authorit~which procedure eliminates substantial paperwork for all of the parties to the Net Billing Agreement. Now, therefore, in consideration of the above findings, IT IS HEREBY RESOLVED AS FOLLOWS BY THE CITY COUNCIL OF THE CITY OF PORT ANGELES: 1. The Mayor and Clerk are authorized to sign four copies of Contract No. DE-MS79-79BP900l9, dated July 3, 1979, be- tween the United States of America, Department of Energy, acting by and through the Bonneville Administration and Washington Public Power Supply System and the City of Port Angeles, providing for amendment of the Net Billing Agreements previously entered into between the same parties. 2. The Clerk is directed to transmit four copies, with original signatures and seals, accompanied by four certified copies of the minutes of the meeting of the City Council at which this resolution is passed to the Department of Energy, Bonneville Power Administration. /' / 4.. '.1' 1 This resolution PASSED by the City Council of the City 2 of Port Angeles at a regular meeting of the Council held on 3 the 16th day of October, 1979. . ---~~- " ,~-~ '; 7 ATTEST: ". d~~4,~~ ~ MA R 4 5 6 .-.. '... ~~ ~/~ 9 Mar1anC.Parrish, C1ty Clerk 8 10 11 APPROVED AS TO FORM: 12 ~ ./' /P?4'; /L 13 C~ Miller, City A<torney 14 15 16 17 18 19 20 21 22 23 24 . 25 26 27 28 , 29 30 31 32 -2- . . I ; State of Washington ss County of Clallam I, the undersigned City Clerk of the City of Port Angeles, Washington, do hereby certify that the following is a true excerpt from the minutes of the City Council's regular meeting held on the 16th day of October, 1979. . "The City Council met in regular session at 7:30 P.M. Officers present were Mayor Haguewood, Councilmen Anderson, Boardman, Buck, Duncan, Hordyk, Wray, City Manager Whorton, Attorney Miller and Deputy Clerk Caso. Following roll-call, Councilman Anderson resigned his office as Council- man as he is no longer a resident of the City of Port Angeles. Mr. Anderson thanked the Council and the public and left the Council Chambers. V LEGISLATION 3. RESOLUTION: AMENDMENT TO WPPSS BILLING PROCEDURE Mayor Haguewood read Light Director Honnold's memorandum which advised the Council that the purpose of the amendment is to provide authority for the Bonneville Power Administrator to make direct payments to cover any amounts which cannot be paid through the Net Billing Agreements between the City, Bonneville and the Washington Public Power Supply System. The revised procedure eliminates the need for Bonneville to notify each participant of proposed direct payments to the Supply System, which should reduce administrative costs. Mayor Haguewood then introduced and read by title Resolution No. 37-79 entitled, Resolution No. 37-79 A RESOLUTION of the City of Port Angeles, authorizing the Mayor and City Clerk to execute a contract amending the Net Bill- ing Agreement between the City of Port Angeles, the Bonneville Power Administra- tion and the Washington Public Power Supply System e . e Councilman Hordyk moved the Council adopt Resolution No. 37-79 as read by title by Mayor Haguewood. The motion was seconded by Councilman Buck and carried unanimously." WITNESS my hand and official seal this 17th day of October, 1979. ...'..........-- t""'"' ...... ,~~ " ........ .....'" ...-........ --. ~u~.g~ Marian C. Parrish, Clerk City of Port Angeles, washington " .. ....... Department qf Energy Bonneville Power Administration Seattle Area Office 415 First Avenue North. Room 250 Seattle, Washington 98109 . i--:~ .... :; . ~ ..r-.-.-. J-' '. '1 ~ ' In reply refer to: ase September 7, 1979 . Mr. Kenneth Whorton, City Manager City of Port Angeles P.O. Box 711 Port Angeles, WA 98362 Dear Ken: Bonneville h~s been using its authority under 'the Transmission Act to make direct payments to cover the amounts which cannot be paid through net-billing. This procedure eliminates the cumbersome process of reassignment of participants' shares to utilities with surplus net-billing capability. Our experience with direct payments on both Trojan and WPPSS No. 2 has demonstrated the overall timesaving and simplicity of the direct payment procedure. Enclosed are two copies of an agreement providing for the revised procedure and eliminates the ne~d to notify each participant of proposed direct payments. If you find the agreement satisfactory, please return: a. One signed copy of the agreement. b. Four copies (each copy with original signatures and seals) of the authorizing resolution. c. Four copies certified minutes or extracts of minutes of the meeting at which the resolution was passed (each copy with original signatures and.seals). ~ iJ If you have questions or' comments regarding this agreement. please contact me at 442-1764. Your early attention to this matter will be appreciated. S incerely ~ ~O?n Thomas M. Noguchi Area Power Manager Enclosures: . 1 - Copy of Background Statement 2 - Copies of Contract No. DE-MS79-79BP900l9 .e -.:r.......~ ..--~-~ .........;.- ~~ -_. '!.- ---~. -- ...--....-- ~,-_. -----...---~ - " ". .. ./ .., ~,..., III ~ , ., . 'e . . BACK~OUND STAID1ENT ON NET-BILLrnG AOOEMENT DE-MS79-79BP90019 As a result of the enactment of the Federal Columbia River Transmission System Act (P.L. 93-454) the Bonneville PQwer Administration (BPA) is able to use its revenues to pay the l~ashington Public Power Supply System (Supply System) the costs of its ~uclear Projects Nos. 1, 2, and its 70 percent oMlership share of Nuclear Project No. 3 which are not able to be paid through the participants' billjng credits pursuant to the net-billing agreements for the projects. BPA has exercised this authority to pay amounts not paid through the net-billing procedure since 1975 in connection with the Trojan Net-Billing Agreements, and has more recently diTectly paid the Supply System amounts not paid through hNP No.2 Participants' billing credits. Our experience in the case of both the Trojan Project payments and the payments in connection with WNP N:J. 2 has 8emonstrated the overall timesaving and simplicity of the direct payment procedure as opposed to the complex system of assignments of -participants' 'shares as provided -- 'tmder the net-billing agreements when a participant TS share of the cost of a project exceeds the participant's net-billing credits from BPA. However, the procedure for. direct payment of these arnOl.ll1ts by BPA has not been accomplished by a fonnal agreement. Each time BPA proposed to pay project costs in excess of participants' billing credits, rather than seek assignment, of participants' shares to utilities having a . surplus of net-billing capability, BPA formally notified each participant of the proposed payment. . Pubiic Utility Districts and }imicipalities may \Vant to consider any obligations they might have under the State Environmental Policy Act. In recognition of the overall savings in time and reduction in cost achieved through direct payments rather than reassignments of participants 1 shares and in recognition of the now established practice of making direct pa)~ents, BPA urges execution of this agreement providing a revised procedure which eliminates the need to ri'otify each participant of proposed direct payments. ... "'-.. ~./" _ "" ':':' . lf~ J ~./ . '1./' ~>- /..../ ~ . '. ,fr;- ~~ )03 c. ...... TO: MAYOR, CITY COUNCIL AND CITY MANAGER. FROM: T. G. HONNOLD, LIGHT DEPARTMENT DIRECTOR. DATE: SEPTEMBER 13, 1979. SUBJECT: AMMENDHENT TO WPPSS NET BILLING PROCEDURE. The net billing concept has allowed payment of WPPSS obligations through our power purchases from Bonneville. In other words, in place of making payments to Bonneville, payments are made directly to WPPSS until our net billing obligation is paid for a given billing period with payments for the remainder of that period going to Bonneville. Because of inflation and delayed construction schedules, sOme utility net billing Obligations are exceeding their total power bill. Through authority granted Bonneville under the Transmission Act, they can make direct payments following a significant effort of cross assignments. The cross assignment procedure represents an annual notification of net billing deficiencies seeking participants willing to assume a larger net billing obligation. Subsequent contracts are then developed representing a significant effort. This amendment will then allow Bonneville to make this cross assignment 'automatically eliminating the bureaucratic and nonproductive formalities of notification and contract development. There is no cost to any participant involved in this change. In fact there should be an administrative cost reduction. Therefore, I recommend approval of the resolution. TGH/nes -'