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HomeMy WebLinkAboutResolution 2008-108 utility bill crediting contractMARANA RESOLUTION N0.2008-108 RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE UTILITIES DIRECTOR TO EXECUTE A BILL CREDITING CONTRACT AMONG THE MARANA WATER DEPART- MENT, TRICO ELECTRIC COOPERATIVE, INC., AND THE ARIZONA ELECTRIC POWER COOPERATIVE, INC., FOR ELECTRIC SERVICE. WHEREAS the Marana Water Department received an allocation ofhydro-electric power from the Parker-Davis Project; and WHEREAS the Marana Water Department, Trico Electric Cooperative, Inc., and the Arizona Electric Power Cooperative, Inc., desire to enter into a Bill Crediting Contract to take advantage of the benefits of the Parker-Davis allocation; and WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of the public to enter into such a contract. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the Bill Crediting Contract among the Marana Water Department, Trico Electric Cooperative, Inc., and the Arizona Electric Power Cooperative, Inc., attached to and incor- porated bythis reference in this resolution as Exhibit A is hereby approved, and the Utilities Director is hereby authorized to execute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town's Manager and staffare hereby directed and au- thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of the contract: PASSED and ADOPTED by the Mayor and Council of the Town of Maran ,Arizona, this 12~' day of August, 2008. Ma r Ed onea ATTEST: elyn C. ronson, Town Clerk FJC.•cds F. ANN RODRIGUEZ, RECORDER RECORDED BY: JCC f PIA ` DEPUTY RECORDER 0305 PE6 .r . o ~ .`~9 a'~'~ ~OOd sMARA ' ~z ~ ~3 TOWN OF MARANA `l' ~~ ATTN : .TOWN CLERK `9RIZ0~¢` 11555 W CIVIC CENTER DR MARANA AZ 85653 BILL CREDITING CONTRACT AMONG DOCKET: PAGE NO. OF PAGES SEQUENCE: CTR 13375 294 13 20081630147 08/21/2008 12:09 MAIL. AMOUNT PAID $ 12.00 THE TOWN OF MARANA ARIZONA WATER DEPARTMENT, TRICO ELECTRIC COOPERATIVE, INC., AND ARIZONA ELECTRIC POWER COOPERATIVE, INC. 1. PREAMBLE: This Bill Crediting Contract (Contract) is dated this day of August, 2008, among the Town of Marana, an Arizona municipal corporation, acting by and through its Water Department, hereinafter collectively referred to as the "Town of Marana AZ Water Department"; Arizona Electric Power Cooperative, Inc., anon-profit electric cooperative corporation organized under the generation and transmission cooperative laws of the State of Arizona, hereinafter referred to as "AEPCO;" and Trico Electric Cooperative, Inc., an Arizona nonprofit corporation, hereinafter referred to as "Trico." Town of Marana AZ Water Department, AEPCO and Trico may hereinafter be referred to individually as "Party" and collectively as "Parties." 2. EXPLANATORY RECITALS: 2.1 Western Area Power Administration (Western) is a Federal agency under the Department of Energy that markets and transmits wholesale electric power and energy from Federal hydropower projects, including the Parker-Davis Project (PDP) (Federal Power). Western's Administrator approved allocations of Federal Power as published in the Federal Register at 49 FR 50582, December 28, 1984; corrections, 50 FR 7823, February 26, 1985, and adjusted those allocations as published in the Federal Register at 68 FR 23709, dated May 5, 2003. Western has committed an allocation of Federal Power to the Town of Marana AZ Water Department (Marana Water Department Allocation), which is embodied in Contract No. 07-DSR-11766, between the United States Department of Energy Western Area Power Administration Desert Southwest Region Parker-Davis Project and the Town of Marana AZ Water Department, For Electric Service municipal use and consumption, dated August 13, 2007 (Contract No. 07-DSR- 11766). 2.2 Contract No. 07-DSR-11766 provides for the delivery of the Marana Water Department Allocation of Federal Power beginning on October 1, 2008, by which Western delivers the Marana Water Department Allocation at the Marana Tap 115 kV interconnection point between Southwest Transmission Cooperative, Inc.'s (SWTC) transmission system and Western's transmission system. 2.3 Trico provides retail electric service to the Town of Marana AZ Water Department. 2.4 AEPCO is Trico's sole wholesale power supplier, which power is transmitted by SWTC. 2.5 Because the Town of Marana AZ Water Department cannot benefit directly from the Marana Water Department Allocation without establishing an operating utility, it has requested an arrangement whereby AEPCO will accept the Marana Water Department Allocation for AEPCO's use, and pass through a credit of said Federal Power to Trico, so that Trico may pass through a credit of the net metered Marana Water Department Allocation to the Town of Marana AZ Water Department in the manner hereinafter described. 2.6 To give effect to such arrangement, AEPCO will provide scheduling services relating to the Marana Water Department Allocation as agent on behalf of the Town of Marana AZ Water Department, as set forth herein. And the Parties further agree that Trico shall provide the cost benefit of the net metered Marana Water Department Allocation to the Town of Marana AZ Water Department by means of the bill crediting program, as set forth herein. 2.7 The Parties desire to enter into this Contract to identify the responsibilities of each Party to enact the bill crediting program 3. AGREEMENT: In view of good and sufficient consideration, the receipt of which is SAP hereby acknowledged, the Parties agree as follows: ~:~ a,~ 4. TERM: This Contract shall become effective on the date of its execution,. and shall remain in effect and be binding upon each Party through September 30, 2028, provided that this Contract shall terminate automatically upon, and concomitant to, the termination of Contract No. 07-DSR-11766, and provided further that this Contract is subject to early T:\corp cnsl\PL\AEPCO\Generation\Contract\3866.doc 2 termination (i) by mutual consent of the Parties; (ii) unilaterally by the Town of Marana 5. 6. 7. AZ Water Department upon ninety (90) days advance written notice to the other Parties; or (iii) by AEPCO or Trico upon one (1) year advance written notice to the other Parties. DATE OF INITL~I. SERVICE: The date of initial service under this Contract shall be October 1, 2008, or the first day of the next Winter or Summer Marketing Season as defined in Contract No. 07-DSR-11766. TRANSFER OF CONTRACTUAL RESPONSIBILITIES: The Town of Marana AZ Water Department hereby designates AEPCO as its scheduling agent for the limited purpose of scheduling the Marana Water Department Allocation in accordance with and pursuant to Sections 6.3, 9, 10 and 12 of Contract 07-DSR-11766, and its Exhibit A and Exhibit B, a copy of which contract and exhibits shall be provided to AEPCO. Such designation shall not be construed as an assignment to AEPCO, or any third party, of any right or title to the Marana Water Department Allocation, held by the Town of Marana AZ Water Department. BILL CREDITING PROGRAM: 7.1 The Parties hereby establish a bill crediting program, which shall provide the Town of Marana AZ Water Department with the benefit of the Marana Water Department Allocation while continuing to use the existing transmission and distribution systems and the existing delivery arrangements of AEPCO and Trico respectively (Bill Crediting Program). The Town of Marana AZ Water Department shall receive the Marana Water Department Bill Credit as a monthly credit on its electric service billing from Trico, or in another manner as may be agreed upon from time to time (Marana Water Department Bill Credit). The method for determining the amount of the Marana Water Department Bill Credit .shall be as set forth in Exhibit A "Determination of Monthly Marana Arizona Water Department Bill Credit," attached hereto and incorporated by this reference. 7.2 In the unlikely event that the Marana Water Department Bill Credit is calculated as a negative value in any month, such amount shall be reflected as a charge to the T:\corp cnsl\PL\AEPCO\Generation\Contract~3866.doc 3 Town of Marana AZ Water Department as follows: AEPCO shall add such amount as a positive charge in its bill to Trico; Trico shall pass on such amount in its bill to the Town of Marana AZ Water Department; the Town of Marana AZ Water Department shall remit such amount to Trico; and Trico shall remit such amount to AEPCO. 8. RESPONSIBILITIES OF TOWN OF MARANA AZ WATER DEPARTMENT: 8.1 The Town of Marana AZ Water Department, with the assistance of Trico, shall, upon the occurrence of any substantial change in load, furnish Western with load data demonstrating that the Town of Marana AZ Water Department's load continues to be adequate to consume the Marana Water Department Allocation. 8.2 The Town of Marana AZ Water Department shall, at its own cost, coordinate with Trico to construct and place into service the necessary metering and communications equipment to monitor such Town of Marana AZ Water Department load characteristics as necessary to fulfill the obligations set forth herein. 8.3 The Town of Marana AZ Water Department shall provide AEPCO with a copy of Contract No. 07-DSR-11766, its exhibits, and any amendments or modifications thereof, and any other relevant information that AEPCO may require to carry out its duties as scheduling agent. 9. RESPONSIBILITIES OF AEPCO: 9.1 AEPCO shall, using the telemetered data provided to it by Trico, pursuant to Section 10.3 below, monitor energy deliveries under this Contract to ensure that such deliveries do not exceed the amount of energy required to serve the Town of Marana AZ Water Department qualified load, in accordance with Exhibit A to Contract No. 07-DSR-11766. 9.2 AEPCO shall, in accordance with Section 7 and Exhibit A of this Contract, calculate the amount of the Marana Water Department Bill Credit each month and credit the entire amount of the Marana Water Department Bill Credit to Trico. 9.3 AEPCO hereby accepts designation by the Town of Marana AZ Water Department as scheduling agent for the Marana Water Department Allocation. T:\corp cnsl\PL\AEPCO\Generation\Contract\3866.doc 4 AEPCO's duties and responsibilities as scheduling agent include, but are not limited to, performing: (i) scheduling, accounting and billing procedures; (ii) scheduling and accounting of energy and capacity deliveries; and (iii) billing determinations. 9.4 AEPCO shall exercise the scheduling agent duties assumed on behalf of the Town of Marana AZ Water Department pursuant to this Contract in the same manner as Western and AEPCO have previously established for deliveries of AEPCO's own allocations of Federal Power. As such, AEPCO shall accept Federal Power from Western in the amount of the Marana Water Department Allocation set forth in Exhibit A to Contract No. 07-DSR-11766 or in the amount of the actual Town of Marana AZ Water Department metered load, whichever is less. 10. RESPONSIBILITIES OF TRICO: 10.1 Trico shall coordinate with the Town of Marana AZ Water Department, at the Town of Marana AZ Water's sole cost, to construct and place into service the necessary metering and communications equipment to appropriately monitor the Town of Marana AZ Water Department load characteristics as necessary to fulfill the obligation of this Contract. 10.2 Trico shall credit the entire amount of the Marana Water Department Bill Credit received from AEPCO to the Town of Marana AZ Water Department within thirty (30) days after receipt of a bill from AEPCO, which identifies the quantity of energy delivered to AEPCO from Western on behalf of the Town of Marana AZ Water Department and the associated amount credited to Trico. 10.3 Trico shall provide the Town of Marana AZ Water metering data to AEPCO in a form and format necessary for AEPCO to meet its obligations set forth in Section "~" 9 herein. 11. SUBORDINATION: This Contract is intended to implement certain terms and conditions of Contract No. 07-DSR-11766 but not to modify or amend it, and is therefore subordinate to Contract No. 07-DSR-11766. T:\corp cnsl\PL\AEPCO\Generation\Contract\3866.doc 5 12. 13. 14. AUDIT AND DISPUTE RESOLUTION: Any Party or its authorized representative shall have the right, during normal business hours, to examine and inspect the billing records of another Party, as such records relate to the Marana Water Department Allocation and to the extent permitted by law and consistent with the policies of said examined party relating to inspection of records. In the event of any dispute concerning the Marana Water Department Allocation or the benefits associated therewith, the Parties shall make a good faith effort to resolve such dispute, including review by senior management. In the event such informal dispute resolution does not provide a satisfactory resolution, the Parties shall have the right to pursue any remedies available to them under Federal laws as may be applicable to Western, or the laws of the State of Arizona, if Western is not a party to the dispute. AUTHORIZED REPRESENTATIVES: Each Party shall, within thirty (30) days of execution of this Contract, by written notice to all the other Parties, designate the representative(s) who is (are) authorized to act on its behalf with respect to those matters contained herein. Each Party may change the designation of its authorized representative(s) upon written notice to the other Parties. The authorized representatives shall have no authority to change any of the terms and conditions of this Contract. NOTICES: Any notice, demand, or request required by this Contract to be in writing shall be considered properly given when delivered in person, or sent by either registered or certified mail, postage prepaid, or prepaid common courier addressed to each Party's Authorized Representative at the address listed below. The initial addresses listed below maybe changed by thirty (30) days advance written notice to the other Parties. For Town of Marana AZ Water Department: Brad DeSpain 5100 West Ina Road Tucson, AZ 85743 For Trico: Karen Cathers P. O. Box 930 Marana, AZ 85653-0930 T:\corp cnsl\PL\AEPCO\Generation\Contract\3866.doc 6 For AEPCO: Walter Bray Manager of Power Trading 1000 S. Hwy 80 Benson, AZ 85602 15. SUCCESSORS AND ASSIGNS: This Contract shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto, as permitted below. Each Party shall have the right at any time to mortgage, create or provide for a security interest in, or convey in trust all or a part of its interest in this Contract, under deeds of trust, mortgages, indentures or security agreements, as security for its present or future bonds or other obligations or securities, without need for the consent of the other Parties. Except as provided herein, no Party shall assign its interest in this Contract in whole or in part without the prior written consent of the other Parties, which consent will not be unreasonably withheld. 16. EXHIBITS: Inasmuch as certain provisions of this Contract may change during the term hereof, they will be set forth in exhibits from time to time agreed upon by the authorized representatives of the Parties. The initial Exhibit A, and all future exhibits shall be attached hereto and made a part hereof, and each shall be in force and effect in accordance with its terms unless superseded by a subsequent exhibit. 17. NON PRECEDENTIAL CONTRACT: The Parties agree that the sole. purpose of this Contract is to provide arrangement with respect to the allocation of Federal Power that Western has allotted to the Town of Marana AZ Water Department pursuant to Contract No. 07-DSR-11766, referred to herein as the Marana Water Department Allocation. This Contract shall not provide any rights of any kind or nature in any other allocation of ," Federal Power, by Western or others whether under said Contract or otherwise, to the Town of Marana AZ Water Department. Any other allocations of Federal hydroelectric power that may be available or are available for allocation to any of the Parties shall be determined based upon the then existing circumstances at such time as it may be or is 1 available and none of the Parties shall rely upon this Contract in any manner in any application for future Federal Power. T:\corp cnsl\PL\AEPCO\Generation\Contract~866.doc 7 18. EXECUTION BY COUNTERPARTS: This Contract may be executed in any number of counterparts, and upon execution of this Contract by all Parties, the executed counterparts together shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page of this Contract maybe detached from any counterpart hereof without impairing the legal effect of any signature thereon, and may be attached to another counterpart of this Contract identical in form hereto but having attached to it one or more signature pages. 19. SIGNATURE CLAUSE: The signatories hereto represent that they have been appropriately authorized to enter into this Contract on behalf of the Party for whom they sign. TOWN OF MARANA ARIZONA WATER DEPARTMENT TRICO ELECTRIC COOPERATIVE, INC. By: Name: Title: Chief Executive Officer /General Manager Date: ~ I ,1 ~ 13_~ ARIZONA ELECTRIC PO By: Name: Gar`s Grim Title: Senior Vi e Presid Date: d _ ~ ~ COOPERATIVE, INC. Chief T:\corp cnsl\PL\AEPCO\Generatiob\Contract\3866.doc 8 EXHIBIT A TO THE BILL CREDITING CONTRACT DETERMINATION OF MONTHLY MARANA ARIZONA WATER DEPARTMENT BILL CREDIT The Monthly Marana Water Department Bill Credit shall be calculated using each month's Town of Marana AZ Load Demand and Energy data derived as illustrated on Attachment 1 "Example Estimate Calculation of Monthly Marana Water Department Bill Credit" attached and made a part hereof, in accordance with the following formula: Monthly Marana Water Department Bill Credit = Cost A - Cost B -Cost C Where: Cost A =The resulting total o£ The product o£ (a) the Marana Metered Load Demand at AEPCO's system peak hour of the month (Coincident Peak) increased by dividing by the difference obtained by subtracting Trico's distribution system loss factor (expressed as a decimal) from one; multiplied by (b) the AEPCO demand rate then in effect to Trico (currently $14.64 per kilowatt -month). The current Trico loss factor is 6.0%. PLUS The product of: (a) the Marana Metered Load Energy for an entire month increased by dividing by the difference obtained by subtracting Trico's distribution system loss factor; multiplied by (b) the AEPCO energy rate then in effect to Trico (currently $0.02073 per kilowatt -hour). Cost B =The resulting total of: The product of: (a) the Marana Metered Load Demand at AEPCO's Coincident Peak minus the Marana Water Department Allocation Demand at the time of AEPCO's Coincident Peak (Remaining Marana Metered Load Demand) increased by dividing by the difference obtained by subtracting Trico's distribution system loss factor (expressed as a decimal) from one; multiplied by (b) the AEPCO demand rate then in effect to Trico. ,~~ PLUS ~''N ~: The product of: (a) the Marana Metered Load Energy for an entire month minus the Marana Water Department Allocation Energy for an entire month (Remaining Marana Metered Load Energy) increased by dividing by the difference obtained by subtracting Trico's distribution system loss factor; multiplied by (b) the AEPCO energy rate then in effect to Trico. T:\corp cnsl\PL\AEPCO\Generation\Contract~866.doc Cost C =The resulting total o£ The Marana Water Deparhnent Allocation Monthly Demand multiplied by the then in effect AEPCO transmission provider (SWTC) Ancillary Service No. 2 for Var Support/Voltage Control rate, (currently $0.089 per kilowatt -month). PLUS The Marana Water Department Allocation Monthly Demand multiplied by the then in effect AEPCO transmission provider (SWTC) Ancillary Service No. 3 for Regulation and Frequency Control rate, (currently $0.463 per kilowatt -month). PLUS The AEPCO monthly scheduling and accounting fee (currently $3,000 per month with a 3.5% annual escalator each October 1). PLUS The current Trico monthly incremental metering and communication charge (estimated at $231 per month). T:\corp cnsl\PL\AEPCO\Generation\Contract\3866.doc 10 MONTHLY MARANA ARIZONA WATER DEPARTM AEPCO Char s to TRICO Based on Ori final Martina. Load Total Re uiremenis Cast A 1,804 _ _. _m Coincident Demand of Martina Laad at AEPCO Meter - kW .. __._ ____ __.,_ _ _ _.._ __w.. ~ ~_ _ _ $14 64 _ _ AEPCO Demand Rate $!kW-mo (includes AS#2 and #3 #5 and #6} _ _ $26 410.56 AEPCO Demand Charge _ $ _w_ 520,535 _ -- _ Martina Energy Requirement at AEPCO meter kWh j $OA2073 AEPCO Energy Rate - $lkWh $0.01313 AEPCO Fuel Adj. $JkWh a $17 625.32 AEPCO Energy Charge - $ 544.035.88 AEPCO Total Char e - $ , __ _ AEPCO Char s to TRICO far Remairtin Martina Load Re uirements Cost B 804 Remaining Martina Load Demand Requirement - kW $14.64 AEPCO Demand Rate - $JkW-mo (includes AS#2 and #3, #5, #6) $11.770.56 AEPCO Demand Charge - $ 21,535 __ Martina Laad Energy Requirement -kWh- _ $0.02073 AEPCO Energy Rate - $JkWh $0.01313 AEPCO Fuel Ada- $fkWh $729.18 AEPCO Energy Charge - $ 512 399.74 AEPCO Remainin Frlarana Total Char e - $ --- AEPCO/TRICO Charges Related to Martina ALLOCATION Cost C~ 1,000 _ Martina ALLOCATION AT AEPCO METER - kW _ _ $0.094 AEPCO ANCILLARY SERVICE No. 2 RATE - $/kW-mo $0.472 AEPCO ANCILLARY SERVICE No. 3 RATE - $1kW-mo $3.000 AEPCO SCHEDULING AND ACCOUNTING CHARGE - $/mo _ __ _ $23 t TRICO METERING COMMUNICATIONS CHARGE - $ $3.797.00 AEPCO Martina Fed Resource Demand Total Charge - $ x Char s from Western M Martina AZ Water De artment Related Martina ALLOCATION 1,000 Martina ALLOCATION CROD -1,000 kW _ _ _ - -. __ - € 51.45 Martina ALLOCATION CROD RATE $lkW-ma _ _.... . _ _ _._......_. _ . _. $1.450.00 Martina ALL4CATIOPJ CROD CHARGE - $ r.__.___ _.. ____ _. _ _. _ _____ ____ _ __._.. _ ____. ,.._ _ ._..._._.__. __.._. _ ..__ _ _ . _____~ .__ _ ~ ._ _ _ ~.._ 1,000 PD Fed Resource Demand __....__. $1.08____.- Western Parker Days System Transmissioh Rate $/kW mo $1.08000 PD Fed Resource Transmission Charge - $~~ ~~~- ~~ ~ ~~_~ ~~~~~~ ~~ 52.53D OD PD h~larana Fed Resource Total Demand Gharae -_~ _ 499,000 Martina ALLOCATION ENERGY -kWh ___ _ _.._ $0 0078 Martina ALLOCATION ENERGY RATE - $IkWh ,_ $3.902m18 Martina ALLOCATION ENERGY CHARGE, $ 56.432.18 Martina ALLOCATION TOTAL CHARGE iVJESTERNI - 1 $27.739.1A Martina Water Deutintment Bill Credit fCast A - Cast B -Cost C) I ATTACHMENT 1 to EXHIBIT A: EXAMPLE ESTIMATE CALCULATION OF ENT BILL CREDIT j 521.306.96 I Martina Water Department Savings after Western Charges ~ T:\corp ensl\PL\AEPCO\Generation\Contract\3866.doc 11 ARIZONA ELECTRIC POWER COOPERATIVE, INC. The following resolution was adopted. at an executive session of the Board of Directors of Arizona Electric Power Cooperative, Inc. (AEPCO), held in Benson, Arizona on August 13, 2008. RESOLUTION WHEREAS, the Town of Marana, through its Water Department, has received a Federal hydropower resource allocation from Western Area Power Administration (Western), and delivery of such resource is scheduled to begin on October 1, 2008; and WHEREAS, the hydropower resource will be delivered to the Marana Tap, a 115 kV interconnection point on Southwest Transmission Cooperative, Inc. 's (SWTC) and Western's systems; and WHEREAS, the Town of Marana Water Department is not an electric utility and cannot accept the hydropower resource directly, and has therefore negotiated a Bill Crediting arrangement with Trico Electric Cooperative, Inc. (Trico) and Arizona Electric Power Cooperative, Inc. (AEPCO) whereby AEPCO will provide scheduling services and take the hydropower resource and pass through an applicable credit for such resource to Trico, who will then provide a credit to the Town of Marana Water Department; and WHEREAS, because AEPCO will receive an appropriate fee for performing scheduling services under the Bill Crediting Contract, and further, because such arrangement appears to be beneficial to Trico and its member, the Town of Marana, Management recommends that the Board of Directors approve the Bill Crediting Contract; and WHEREAS, the Board of Directors of AEPCO deems approval of the Bill Crediting Contract to be in the best interests of the Cooperative and its member-consumers; NOW, THEREFORE BE IT RESOLVED, that the Board of Directors of Arizona Electric Power Cooperative, Inc. hereby approves the Bill Crediting Contract among AEPCO, Trico Electric Cooperative, Inc., and the Town of Marana Water Department and authorizes and directs Management to execute such contract and to undertake any and all additional actions as may be necessary to effectuate the intent and purpose of such transaction. I, Thomas N. Powers, do hereby certify that I am Secretary of AEPCO, and that the foregoing is a t and correct copy of the Resolution adopted by the Board of Directors at an executive session held August 13, 200. - (se:.rli M:~AEPCO~Reso~2.008~Iv1azanaWtr. doc Secretary August 11, 2008 { _ __ ______ . __ __ _ _. "~, flrtginat - -Copt'- Adopted by Council ~-l~ - ~ ~ rdinance # -Resolution # ~ ,~~i ~ ~ wn erk Dat MARANA RESOLUTION N0.2008-108 RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE UTILITIES DIRECTOR TO EXECUTE A BILL CREDITING CONTRACT AMONG THE MARANA WATER DEPART- MENT, TRICO ELECTRIC COOPERATIVE, INC., AND THE ARIZONA ELECTRIC POWER COOPERATIVE, INC., FOR ELECTRIC SERVICE. WHEREAS the Marana Water Department received an allocation ofhydro-electric power from the Parker-Davis Project; and WHEREAS the Marana Water Department, Trico Electric Cooperative, Inc., and the Arizona Electric Power Cooperative, Inc., desire to enter into a Bill Crediting Contract to take advantage of the benefits of the Parker-Davis allocation; and WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of the public to enter into such a contract. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the Bill Crediting Contract among the Marana Water Department, Trico Electric Cooperative, Inc., and the Arizona Electric Power Cooperative, Inc., attached to and incor- porated bythis reference in this resolution as Exhibit A is hereby approved, and the Utilities Director is hereby authorized to execute it for and on behalf of the Town of IVlarana. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and au- thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of the contract: PASSED and ADOPTED by the Mayor and Council of the Town of Maran ,Arizona, this 12th day of August, 2008. Ma r Ed onea ATTEST: elyn C. ronson,. Town Clerk FJC.•cds