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HomeMy WebLinkAbout5.939 Original Contract ~ORTANGELES WAS H I N G TON, U. S. A. Public Works & Utilities Department June 8, 2009 Ms. Shannon Greene Account Executive Power Services Mail Stop: PSW-Seattle 909 First Avenue, Suite 380 Seattle, WA 98104-3636 Reference: Accord and Satisfaction Aqreement Dear Shannon, I am pleased to provide you an executed original Accord and Satisfaction Agreement. The Accord and Satisfaction Agreement discharges two legacy weatherization agreements and the billing credits agreement. We sincerely appreciate the perseverance it took on your part to bring this agreement to fruition. SiniJ . Larry DU~ Deputy D~~:~tJof Power Systems Cc Becky Upton, City Clerk Phone: 360-417-4800 ! Fax: 360-417-4542 Website: www.cityofpa.us! Email: publicworks@cityofpa.us 321 East Fifth Street - P.O. Box 1150! Port Angeles, WA 98362-0217 5. q~4 5.9dQ Contract No. 09PB-12043 ACCORD AND SATISFACTION AGREEMENT Executed by the BONNEVILLE POWER ADMINISTRATION and THE CITY OF PORT ANGELES, WASHINGTON Table of Contents Section 1 2. 3. 4. Page Term and Termination ................................................................................. 2 Acco rd .............................................................................................................. 2 Sa ti sf ac ti 0 n ..................................................................................................... 2 Signature s ....................................................................................................... 3 Exhibit A Calculations \-;~ ?::. 't ~ "" ..,~, This ACCORD AND SATISFACTION AGREEMENT (Agreement) is executed by the UNITED STATES OF AMERICA, Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (BPA), and THE CITY OF PORT ANGELES, WASHINGTON (Port Angeles). BPA and Port Angeles are sometimes referred to individually as "Party" and collectively as "Parties." NOW THEREFORE, the Parties agree as follows: 1. TERM AND TERMINATION This Agreement shall be effective upon execution by the Parties and shall continue in effect until such time as both Parties have satisfied the conditions of section 3. 2. ACCORD By this Agreement, BPA and Port Angeles hereby mutually agree to discharge the following three existing agreements between them: BPA contract # DE-MS79-81BP90811 ("Weatherization Agreement I") BPA contract # DE-MS79-80BP90170 ("Weatherization Agreement 2") BPA contract # DE-MS79-91BP93489 ("Billing Credits Agreement") Upon satisfaction ofthe requirements of section 3 ofthis Agreement, the Parties' rights and obligations under Weatherization Agreement 1, Weatherization Agreement 2, and the Billing Credits Agreement shall be extinguished. 3. SATISFACTION The Parties hereby mutually agree that Port Angeles has financial obligations to BPA arising under Weatherization Agreements 1 and 2. The Parties hereby mutually agree that BPA has financial obligations to Port Angeles arising under the Billing Credits Agreement. The Parties hereby mutually agree that the combined amount Port Angeles owes to BPA under Weatherization Agreements 1 and 2 is equal to the amount BPA owes to Port Angeles under the Billing Credits Agreement. The Parties hereby mutually agree that the amounts due to each other under the three existing agreements offset themselves and the Parties hereby mutually agree to discharge all three existing agreements without further compensation to either Party. Upon execution of this Agreement, Weatherization Agreement 1, Weatherization Agreement 2, and the Billing Credits Agreement shall be discharged and the parties shall relinquish all rights and be relieved of all obligations thereunder. The Parties hereby mutually agree that this Accord and Satisfaction does not address outstanding loans between Port Angeles and homeowners made pursuant to Weatherization Agreements 1 and 2 except that, upon execution of this Accord and Satisfaction, any rights or obligations under such loans belong solely to Port Angeles and the homeowners, BP A shall have no rights or obligations under such loans. 4. SIGNATURES Each Party represents that it has the authority to execute this Agreement and that it has been duly authorized to enter into this Agreement. THE CITY OF PORT ANGELES UNITED STATES OF AMERICA Department of Energy Bonneville Power Administration By: By: 01vJ/Vt/YlW J) .)JUt/!A-L Name: Name: Shannon K. Greene Title: Title: Account Executive Date: Date: 4-/3-()'1 (Psw-S: \PM\CUST_SKG \ PORT ANGELES \Financial Obligation Settlement IPa_09PB-12043_AcrdSatAgrmt_04132009_RevisedFina1.docJ 4/13/2009 1. CALCULATIONS Exhibit A CALCULATIONS 1.1 Port Angeles Zero Interest Weatherization Loan Agreement & Billing Credit Agreement Settlement Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Totals Loan Default I nflation Rate Borrowing Rate Discount Rate (Real Cost of Capital) AC-PF (mills/Kwh) Net Present Value City Payment Owed SPA (Due From SPA) Port Angeles Payment Loan payoff estimate $ 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 21,300 298,200 $ $ BP A Payment Billing credit estimate 18,300 18,700 19,200 19,700 20,200 20,700 21 ,200 21,700 22,200 22,700 23,300 23,900 24,500 25,100 301 ,400 0.00% Port Angeles 1.95% 4.91% 6.86% BPA 1.95% 4.67% 6.62% 1997 2008 Average Annual Escalation 33.60 43.87 2.45% $187,800.00 $187,800.00 $ (PSW-S: \ PM \ CUST _SKG \PORT ANGELES \ Financial Obligation Settlement \Pa_09PB-12043_AcrdSatAgrmt_04132009_RevisedFinal.doc) 4/13/2009 09PB-12043, Port Angeles Accord and Satisfaction Agreement 1 of 1