Resolution 14444CITY OF ALAMEDA RESOLUTION NO.
RATIFYING THE PUBLIC UTILITY BOARD'S APPROVAL OF THE
TERMINATION OF THE NATURAL GAS PROCUREMENT
PROGRAM THIRD PHASE AGREEMENT AND AUTHORIZING
THE GENERAL MANAGER OF ALAMEDA MUNICIPAL POWER
TO EXECUTE THE TERMINATION OF THE AGREEMENT
WHEREAS, on or about November 6, 1991 the Northern California
Power Agency (NCPA) and certain NCPA members consisting of Alameda,
Lodi, Lompoc, Palo Alto and the Turlock Irrigation District entered into the
Natural Gas Procurement Program (NGPP) Third Phase Agreement authorizing
NCPA to contract for the transportation, storage and supply of natural gas as
fuel to the NCPA Combustion Turbine Project No. 1 (CT1) and for the needs of
NCPA members; and
WHEREAS, on or about September 15, 1993 the entitlements and
obligations of participants in CT1 under the Natural Gas Procurement Program
were transferred to the participants in CT2; and
WHEREAS, under the NGPP Third Phase Agreement forward purchases
of gas by individual members to fix fuel costs are not permitted; and
WHEREAS, under the NGPP Third Phase Agreement the NCPA
Commission must approve natural gas purchases above $1 5,000, which
reflects gas prices from 1991 and is too low of a threshold in today's market;
and
WHEREAS, the Turlock Irrigation District, an original signatory, wishes to
terminate its involvement in the NGPP Third Phase Agreement; and
WHEREAS, Palo Alto, an original signatory, was permitted to terminate
its participation in the NGPP Third Phase Agreement in 1993 by adoption of a
resolution without amendment to the NGPP; and
WHEREAS, given these restrictions and in recognition of the fact that the
NGPP Third Phase Agreement does not reflect current gas procurement
practices, NCPA desires to formally terminate the NGPP Third Phase
Agreement; and
WHEREAS, concurrent with the termination of the NGPP Third Phase
Agreement, NCPA seeks to establish new Schedules as attachments to the
Facilities Agreement by which NCPA intends to contract for the transportation,
storage and supply of natural gas as fuel to CTI and CT2, as well as such other
NCPA Projects which may hereafter require natural gas; and
WHEREAS, upon the termination of the NGPF) Third Phase Agreement
by all the participants and formal approval by the NCPA Commission, Facilities
Agreement Schedules 9.01 and 9.05 will become effective to allow NCPA to
secure needed fuel and transportation rights; and
WHEREAS, at its May 17, 2010 meeting, the Public Utilities Board
approved the termination of the Natural Gas Procurement Program Third Phase
Agreement and recommended that the City Council authorize the General
Manager of AMP to execute the termination of the agreement.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
Alameda that:
I. The Council ratifies the Public Utilities Board's approval of the
termination of the Natural Gas Procurement Program Third Phase
Agreement.
2. The General Manager of Alameda Municipal Power is authorized to
execute the termination without material change.
1, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Council of the City of Alameda during the Regular
Meeting of the City Council on the 18th day of May, 2010, by the following vote to wit:
AYES: Councitmembers deHaan, Gilmore, Matarrese, Tam
and Mayor Johnson - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, 1 have hereunto set my hand and affixed the official seal of
said City this 19th day of May, 2010.
Lara Weisiger, City
City of Alameda