Loading...
SR-502-008 . 6' tJ 7- 00.g . b-E GS:SES:BG:JSH dwp Council Meeting: September 11, 1990 SEP j i 199a Santa Monica, california TO: Mayor and City Council FROM: city staff SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute a Contraet with the Department of Water and Power of the City of Los Angeles for the Hydroelectric Generating Facility Introduction This report requests the city Council authorize the City Manager to negotiate and execute a contract with the Department of Water and Power of the city of Los Angeles for purchase of excess power generated at the hydroelectric generating facility located at the city's Water Treatment Plant. Background In 1981, funds wer~ budgeted to study the feasibility of utilizing the excess pressure from the Metropolitan Water District's water supply to the city to generate electrical power. Any power not required for operation of the City's Water Treatment Plant would be sold to the Department of Water and Power (DWP). As a result of the study, the City Council awarded a contract to Capital Conservation Corporation (formerly named HEC) to design, construct and manage for 27 years a small hydroelectric facility. The City of Santa Monica retained ownership of the facility. 6-L - 1 - SEP 1 1 i~'1J . . At that time, it was estimated that the facility would generate .15 megawatts of power, enough for approximately 120 homes. Construction was completed in 1983 at which time Capital Conservation Corporation entered into a contract with DWP for the purchase of electrical power generated from the facility. Recently, DWP notified the City that pursuant to the Department of Water and Power of the City of Los Angeles' Electric Rate Ordinance 16398 DWP must contract with the owner of an electrical generating station, not the operator. The proposed contract would contain the same terms as the contract between DWP and Capital Conservation Corporation with the exception of the insurance clause which requires that the O\'1Tner maintain a $1.0 million per occurrence insurance policy. DWP has agreed to accept the city's self-insurance program under the new contract. Capital Conservation corporation will continue to maintain a $3.0 million per occurrence insurance policy holding the City harmless as required by its contract with the ci ty and, as facility manager, will continue to provide excess power to DWP under the terms of the new contract between the city and DWP. BUdget/Financial Impac~ There is no budget/financial impact since the payment procedures and contractual amounts will not change. - 2 - . . Recommendation It is recommended thlt the City council authorize the City Manager to negotiate Qnd execute a contract with the Department of Water and Power of the city of Los Angeles for purchase of excess power generated at the hydroelectric generating facility located at the City's Water Treatment Plant. Prepared by: Stan Scholl, Director of General Services Byron Gaines, utilities Manager Jean Stanley Higbee, Administrative Analyst - 3 -