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HomeMy WebLinkAbout13 NCPA AgreementAgenda Item # 13 CONSENT To: Board of Directors From: Stephen Hollabaugh Date: June 01, 2011 Subject: Consideration of Approving the NCPA and Truckee Donner Public Utility District Power Management Agreement Amendment No. 4 1. WHY THIS MATTER IS BEFORE THE BOARD This item concerns an amendment to a contract that was originally authorized signed by the Board, therefore the proposed amendment must also be authorized by the Board. 2. HISTORY The Board authorized the Power Management Agreement between the Northern California Power Agency (NCPA) and Truckee Donner Public Utility District (District) on August 1, 2007, and was to terminate automatically, according to the terms of the agreement on June 30, 2008. The parties subsequently executed Amendment No. 1 to extend the term of the Power Management Agreement through June 30, 2009 and Amendment No. 2 that extended the term through June 30, 2010 and Amendment No.3 that extended the term through June 30, 2011. 3. NEW INFORMATION The parties again propose to extend the term of the Power Management Agreement via Amendment No. 4. The 2009 cost was $75,344 to the District, NCPA Power Management Cost Allocation Study was completed. in 2009 District staff reviewed this allocation study and was successful in reducing the cost to the District and only paying for the services needed by the District. The modification requested by District staff resulted in an annual cost to the District of $65,604 for 2010. The July 1,2011 through June 30, 2012 cost is slightly higher at $66,590. NCPA has forwarded to the District Amendment No. 4 to the Power Management Agreement (Attachment 1). This amendment extends the existing agreement to June 30, 2012. 4. FISCAL IMPACT Funding for this service is currently included in the 2011 budget. 5. RECOMMENDATION Authorize Amendment No. 4 to and Truckee Donner PUD. �A 44-1� Stephen Hollabaugh the Power Management Agreement between NCPA Michael D. Holley Assistant General Manager General Manager Attachment 1 �o�xEw��A�Fa�PPAY NORTHERN CALIFORNIA POWER AGENCY AND TRUCKEE DONNER PUBLIC UTILITY DISTRICT POWER MANAGEMENT AGREEMENT AMENDMENT NO. 4 Recitals: This Amendment No. 4 to the Power Management Agreement between the Truckee Donner Public Utility and the Northern California Power Agency (collectively, "the Parties") is made with reference to the following facts, among others: The above referenced Power Management Agreement contained an Effective Date of August 1, 2007, and was to terminate automatically, according to its own terms, on June 30, 2008. Subsequently each year the Parties have executed an amendment to extend the term of the Power Management Agreement for the next fiscal year, most recently by Amendment No. 3 which extended the Power Management Agreement through June 30, 2011. The Parties again desire to extend the term of the Power Management Agreement through this Amendment No. 4 as more fully described below, and to adjust the amount payable for service provided hereunder to reflect the results of the NCPA Power Management Cost Allocation Study as approved by the NCPA Commission. Therefore, the Parties agree as follows: Section 3.5 of the Power Management Agreement is replaced in its entirety with the following: Effective Date: As per Section 4.1. Section 4.1 of the Power Management Agreement is replaced in its entirety with the following: Effective Date: This Agreement shall become effective on July 1, 2011. Section 4.2 of the Power Management Agreement is replaced in its entirety with the following: Termination: This Agreement shall automatically terminate at 2400 hours PPT, June 30, 2012. All obligations accrued prior to termination shall be preserved until satisfied. Section 5.1.2 of the Power Management Agreement is replaced in its entirety with the following: Scheduling; Coordination Services: District shall pay NCPA an annual amount of $66,590 for Scheduling Coordination Services, such that each billing month District shall pay a charge of $5,549.17 for Scheduling Coordination Services. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Title: Date: NORTHERN CALIFORNIA POWER APPROVED AS TO FORM AGENCY By: Title: By: Title: General Counsel Date: Date: