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 -