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HomeMy WebLinkAboutResolution 2019-094 Approving WAPA Resource Aggregation Water Agreement Second AmendmentMARANA RESOLUTION NO. 2019-094 RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE WATER DIRECTOR TO SIGN AMENDMENT NO.2 TO RESOURCE AGGREGATION CONTRACT NO. 11 DSR 12215 AMONG UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION, TOWN OF MARANA, ARIZONA WATER DEPARTMENT, AND ARIZONA ELECTRIC POWER COOPERATIVE, INC. WHEREAS the United States Department of Energy Western Area Power Ad- ministration allocated 1000 kW of electrical power (hydropower) from the Parker -Davis Project Electric Service to the Town of Marana Utilities Department (now named the Water Department by Marana Ordinance No. 2015.015); and WHEREAS the Town of Marana, the United States Department of Energy West- ern Area Power Administration, and Arizona Electric Power Cooperative, Inc. entered into Resource Aggregation Contract No. 11 DSR 12215 dated March 3, 2011, allowing the Water Department to lay off its unused hydropower to Arizona Electric Power Co- operative, Inc., and be reimbursed for all cost to Marana, saving the Water Department approximately $20,000 per year; and WHEREAS the current term of the Resource Aggregation Contract, as previously amended by Marana Resolution No. 2015-067, ends on September 30, 2019, and the par- ties desire to extend it; and WHEREAS the Mayor and Council of the Town of Marana find that further ex- tension of the Resource Aggregation Contract is in the best interests of the Town of Ma- rana and the public. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that Amendment No. 2 to Resource Aggregation Contract No. 11 DSR 12215 is hereby approved, and the Water Director of the Town of Marana is hereby authorized to execute it in substantially the form attached as Exhibit A to and incorporated by this reference in this resolution, for and on behalf of the Town of Mara- na, extending the term of the Resource Aggregation Contract to September 30, 2028. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby di- rected and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the contract as so amended. 00065477.DOCX /1 Resolution No. 2019-094 - 1 - 9/6/201.9 2:40 PM PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17th day of September, 2019. Mayor Ed H nea ATTEST: APPROV AS TO FORM: Cherry L. wson, Town Clerk Frank Cassi , Town Atto MARANA AZ ESTABi_ i SHED 1977 f 00065477.DOCX /1 Resolution No. 2019-094 - 2 - 9/6/2019 2:40 PM Section AMENDMENT NO.2 TO CONTRACT NO. 11 -DSR -12215 AMONG UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Regional Office Parker -Davis Project Salt Lake City Area Integrated Projects AND TOWN OF MARANA, ARIZONA WATER DEPARTMENT AND ARIZONA ELECTRIC POWER COOPERATIVE, INC. FOR RESOURCE AGGREGATION Table of Contents Title Page No. 1 Preamble...................................................................................... 2 Explanatory Recitals.................................................................... 3 Agreement.................................................................................... 4 Modification of Section 5 of the Original Contract ..................... (Effective Date and Term) 5 Term of Amendment.................................................................... 6 Original Contract to Remain in Effect ......................................... 7 Execution in Counterpart............................................................. 8 Authority to Execute.................................................................... SignatureClause .................................................................................................. I 1 2 2 2 2 2 2 4 AMENDMENT NO.2 TO CONTRACT NO. 11 -DSR -12215 AMONG UNITED STATES DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION Desert Southwest Regional Office Parker -Davis Project Salt Lake City Area Integrated Projects AND TOWN OF MARANA, ARIZONA WATER DEPARTMENT AND ARIZONA ELECTRIC POWER COOPERATIVE, INC. 1 _t RESOURCE AGGREGATION 1. PREAMBLE: This Amendment No. 2 (Amendment) is made this day of 2019, as part of Contract No. 11 -DSR -12215 (Original Contract), among Western Area Power Administration (WAPA), the Town of Marana, Arizona Utilities Department (Marana) (now renamed the Water Department by Marana Ordinance 2015.015), and the Arizona Electric Power Cooperative, Inc. (AEPCO), pursuant to the same authorities as the Original Contract and subject to all of the provisions of the Original Contract, except as amended herein. WAPA, Marana, and AEPCO may individually be referred to as Party and collectively as Parties; except that Marana and AEPCO may be referred to individually as Contractor and collectively as Contractors. 2. EXPLANATORY RECITALS: 2.1 The Contractors have entered into contracts with WAPA for firm electric service from the P -DP and/or SLCA/IP. 2.2 The Parties entered into the Original Contract to include the Contractors' electrical loads and generation resources for power scheduling; and have AEPCO, as Marana's Administrative Agent, manage and act on behalf of Marana in the performance of the Original Contract. 2.3 The Parties now desire to extend the term of the Original Contract. AGREEMENT: The Parties agree to the terms and conditions set forth herein. 4. MODIFICATION OF SECTION 5 OF THE ORIGINAL CONTRACT (EFFECTIVE DATE AND TERM): Section 5 of the Original Contract is deleted in its entirety and replaced with the following: "This Contract, as amended herein, shall become effective upon execution, and except as otherwise provided for in Section 9, shall remain in effect until midnight, September 30, 2028." 5. TERM OF AMENDMENT: This Amendment shall become effective upon execution, and shall remain in effect and terminate concurrently with the Original Contract, as amended. 6. ORIGINAL CONTRACT TO REMAIN IN EFFECT: Except as expressly modified by this Amendment, the Original Contract shall remain in force and effect, and this Amendment shall be subject to all terms of the Original Contract. 7. EXECUTION IN COUNTERPART: This Amendment may be executed in any number of counterparts and, upon execution and delivery by each Party, the executed and 2 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 Amendment may be detached by any counterpart of this Amendment without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Amendment identical in form hereto, by having attached to it one or more signature pages. S. AUTHORITY TO EXECUTE: Each individual signing this Amendment certifies that the Party represented has duly authorized such individual to execute this Amendment that binds and obligates the Party. 9 The Parties named below have caused this Amendment No. 2 to Contract No. 11 -DSR -12215 to be executed in accordance with Section 1 herein. DEPARTMENT OF ENERGY WESTERN AREA POWER ADMINISTRATION By Jimmy Kendrick Title Vice President of Power Marketing___ for Desert Southwest Region Address Desert Southwest Region P.O. Box 6457 Phoenix AZ 85005-6457 TOWN OF MARANA, ARIZONA WATER DEPARMENT By Scott Schladweiler ATTEST: Title Acting Water Director Title Address 5100 West Ina Road M Marana AZ 85743 The Party named below have caused this Amendment No. 2 to Contract No. 11 -DSR -12215 to be executed in accordance with Section 1 herein. ARIZONA ELECTRIC POWER COOPERATIVE, INC. I:MFA Patrick F. Ledger Title Executive Vice President and Chief Executive Officer ATTEST Address Arizona Electric Power Cooperative Inc 1000 South Highway 80 Title Benson Arizona 85602-3631 5