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HomeMy WebLinkAbout2003/07/11 - Agenda Packet - Spec Joint (SCE) AGENDA I~kNCHO CUCAMONGA }PMENT AGENCY~ FIRE PROTECTION DISTRICT AND CITY COUNCIL SPECIAL JOINT MEETING .... ,~:,~ . /:,,,,,: 4- 4:00 p.m. Rancho Cucamonga City Hall 4- Council Chambers 10500 Civic Center Drive 4- Rancho Cucamonga, CA 91730-3801 A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call: Alexander __, Gutierrez , Howdyshell , Kurth , Williams__ B. COMMUNICATIONS FROM THE PUBLIC This is the time and place for the general public to address the Redevelopment Agency, Fire Protection District and the City Council. State law prohibits the Agency/Board/ Council from addressing any issue not previously included on the agenda. The Agency/Board/Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual. C. REDEVELOPMENT AGENCY ITEM OF BUSINESS 1. Approval of a Resolution authorizing the execution of a Corporate Guaranty Agreement in connection with the Interconnection Facilities Agreement with Southern California Edison Company (CO RA 03-025) for the construction of the SCE-owned portion of the Arbors Electric Substation to be located at Rochester Avenue and Stadium Parkway. (Page 1) RESOLUTION NO. RA 03-010 (Page 3) A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY, RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE CHAIRMAN TO EXECUTE A CORPORATE GUARANTY ON BEHALF OF THE CiTY OF RANCHO CUCAMONGA FOR PAYMENT FOR CONSTRUCTION OF ELECTRIC DISTRIBUTION FACILITIES AGENDA ' RANCHO CUCAMONGA REDEVELOPMENT AGENCY, Frae PROTECTION DISTRICT AND CITY COUNCIL D. CITY COUNCIL ITEM(S) OF BUSINESS 1. Approval to authorize the execution of an I nterconnection Facilities Agreement with Southern California Edison Company (CO 03-070) by the City Manager or his duly-appointed representative, for the construction of the SCE-owned portion of the Arbors Electric Substation to be located at Rochester Avenue and Stadium Parkway, authorize the posting of a deposit in the amount of $891,000 to reimburse SCE for all related costs, to be funded from Acc. No. 10250015603, and approve an appropriation of $891,000 to Acct. No. 10250015603. (Page 5) 2. Approval to authorize the execution of a Service Agreement for Wholesale Distribution Service with Southern California Edison Company (CO 03-071 ) by the City Manager, or his duly-appointed representative for the provision of retail electric service by the Rancho Cucamonga Municipal Utility to new development within the Victoria Arbors Master Plan and immediately adjacent commercially zoned areas. (Page 7) THE REDEVELOPMENT AGENCY AND FIRE PROTECTION DISTRICT WILL ADJOURN TO A CLOSED SESSION TO DISCUSS: CONFERENCE WITH PROPERTY NEGOTIATORS PER GOVERNMENT CODE SECTION 54956.6 FOR PROPERTY GENERALLY LOCATED NORTH OF FOOTHILL BOULEVARD, WEST OF 1-15 FREEWAY, FOREST CITY DEVELOPMENT CA, INC. & LEWIS INVESTMENT CO., LLC; LINDA D. DANIELS, RDA DIRECTOR, NEGOTIATING PARTY, REGARDING TERMS OF AGREEMENT - RDA LABOR NEGOTIATIONS PER GOVERNMENT CODE SECTION 54957.6 TO GIVE GEORGE RIVERA, ADMINISTRATIVE SERVICES MANAGER; PAMELA EASTER, DEPUTY CITY MANAGER; AND LARRY TEMPLE, ADMINISTRATIVE SERVICES DIRECTOR, DIRECTION IN REGARDS TO THE MEET AND CONFER PROCESS - FIRE I, Debra J. Adams, City Clerk of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on July 10, 2003, per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California. R A N C H O C U C A M O N GA F, NC, INI~I~DING DI~DAI~T~ ~.NT DA~E: July 11, 2003 TO:. Chairman and Members of the Redevelopment Agency Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Robert Lemon, Assistant Engineer SU&IEC'r: Approval of a resolution authorizing the execution of a Corporate Guaranty Agreement in connection with the Intemonnection Facilities Agreement with Southern California Edison Company for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway RECOMMENDATION: it is recommended the Redevelopment Agency approve a resolution authorizing the execution of a Corporate Guaranty Agreement in connection with the Intemonnection Facilities Agreement with Southern California Edison Company for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway. BACKGROUND/ANALYSIS: In response to the unstable energy situation in the State of California, the City of Rancho Cucamonga on August 31, 2001, authorized the creation and operation of a municipally owned utility for the purpose of providing various utility services. The purpose of this formation was to enable the City to explore options in dealing with energy issues at the local level. Subsequently, on August 21, 2002, the Redevelopment Agency authorized the filing of a Wholesale Distribution Access Tariff (WDAT) Application with Southern California Edison Company (Edison) for the potential provision of electric service to the Victoria Arbors development area by the Rancho Cucamonga Municipal Utility. Since the time, the City has entered into various agreements with Edison including two System Impact Study Agreements, a Facilities Study Agreement, and a Letter Service Agreement for the engineering, design, and procurement of related materials for the Edison-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway. The final two agreements required to complete the WDAT process, an Intemonnection Facilities Agreement and a Service Agreement for Wholesale Distribution Service, have CITY COUNCIL STAFF REPORT CORPORATE GUARANTY FOR INTERCONNECTION FACILITIES AGREEMENT WITH SOUTHERN CALIFORNIA EDISON JULY 11, 2003 PAGE 2 been drafted and are being presented to the City Council as Consent Calendar items at the City Council meeting of July 11,2003. The Interconnection Facilities Agreement includes a provision requiring a corporate guaranty from a parent corporation with a suitable credit rating. As the City does not have a parent corporation nor a credit rating, due to an absence of indebtedness, Edison has indicated that it will accept a Corporate Guaranty from the Rancho Cucamonga Redevelopment Agency to fulfill this requirement. The Redevelopment Agency's credit rating, established as part of its 2001 bond issuance, meets all the necessary requirements. It is recommended the Redevelopment Agency approve a resolution authorizing the execution of a Corporate Guaranty Agreement in connection with the Intemonnection Facilities Agreement with Southern California Edison Company for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway. Respectfully Submitted, William J. O'Neil City Engineer RESOLUTION NO. RA-03- ~/~ n RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE A CORPORATE GUARANTY ON BEHALF OF THE CITY OF RANCHO CUCAMONGA FOR PAYMENT FOR CONSTRUCTION OF ELECTRIC DISTRIBUTION FACILITIES THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Southern California Edison Company ("Edison") has requested that thc City of Rancho Cucamonga ("City") provide a guaranty for its payment obligation to Edison for the construction of electric distribution facilities. Section 2. Edison has agreed that the Rancho Cucamonga Redevelopment Agency ("Agency") may provide the guaranty to Edison for the City's payment obligation, and has requested that the Agency execute a Corporate Guaranty Agreement to guarantee the City's payment obligation. Section 3. The Chairman of the Agency is hereby authorized to execute the Corporate Guaranty Agreement which is attached hereto as Exhibit A to this Resolution. Section 4. The Agency Secretary shall certify to the passage and adoption of this Resolution, and this Resolution shall thereupon take effect and be in full force. PASSED, APPROVED, AND ADOPTED this th day of July, 2003. AYES: NOES: ABSENT: ABSTAINED: William J. Alexander, Chairman ATTEST: Jack Lam, Secretary 11244\0001\739745-1 I, JACK LAM, Secretary of the Rancho Cucamonga Redevelopment Agency of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Redevelopment Agency of the City of Rancho Cucamonga, California, at a Regular Meeting of said Redevelopment Agency held on the __th day of July, 2003. Executed this ~ day of July, 2003, at Rancho Cucamonga, California. Jack Lam, Secretary 11244\0001\739745-1 R A N C H O C U C A M O N G a ]~ N G IN EI~I~IN G DI~PAI~TM E N T Staff Relmrt DATE: July 11, 2003 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Robert Lemon, Assistant Engineer SUBJECT: Authorize the execution of an Intemonnection Facilities Agreement with Southern California Edison company by the city manager or his duly appointed representative for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway, and authorize the posting of a deposit in the amount of $891,000 to reimburse SCE for all related costs, to be funded from Acct. No. 10250015603, and appropriate $891,000 to Acct. No. 10250015603 RECOMMENDATION: It is recommended the City Council authorize the execution of an Intemonnection Facilities Agreement with Southern California Edison Company by the City Manager or his duly appointed representative for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway, and authorize the posting of a deposit in the amount of $891,000 to reimburse SCE for all related costs, to be funded from Acct. No. 10250015803, and appropriate $891,000 to Acct. No. 10250015603. BACKGROUND/ANALYSIS: In response to the unstable energy situation in the State of California, the City of Rancho Cucamonga on August 31, 2001, authorized the creation and operation of a municipally owned utility for the purpose of providing various utility services. The purpose of this formation was to enable the City to explore options in dealing with energy issues at the local level. Subsequently, on August 21, 2002, the Redevelopment Agency authorized the filing of a Wholesale Distribution Access Tariff (WDAT) Application with Southern California Edison Company (Edison) for the potential provision of electric service to the Victoria Arbors development area by the Rancho Cucamonga Municipal Utility. Since the time, the City has entered into various agreements with Edison including two System Impact Study Agreements, a Facilities Study Agreement, and a Letter Service Agreement for the CITY COUNCIL STAFF REPORT INTERCONNECTION FACILITIES AGREEMENT WITH SOUTHERN CALIFORNIA EDISON JULY 11, 2003 PAGE 2 engineering, design, and procurement of related materials for the Edison-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway. The execution of the Letter Service Agreement and posting of a previous deposit of $1,991,000, which was approved by Council on April 16, 2003, allowed Edison to expedite the design process for the City's project and begin work on the initial stages of the substation while the subsequent Interconnection Facilities Agreement (IFA) was drafted and negotiated. The drafting and negotiation of the IFA has now been completed and is presented to the Council for its approval. Edison has submitted a cost estimate of $891,000 for all related construction costs and the City is required to post a deposit in this amount prior to Edison initiating services. All actual costs will be tracked and applied against this deposit and the City will incur only those actual expenditures realized by Edison. This IFA represents one of two final agreements required to complete the WDAT process. The other final and complementary agreement, the Service Agreement for Wholesale Distribution Service, has also been placed as a Consent Calendar item on the Agenda of the same City Council meeting at which the IFA is being considered. It is recommended that City Council authorize the execution of an Interconnection Facilities Agreement with Southern California Edison Company by the City Manager or his duly appointed representative for the construction of the SCE-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway, and authorize the posting of a deposit in the amount of $891,000 to reimburse SCE for all related costs, to be funded from Acct. No. 10250015603, and appropriate $891,000 to Acct. No. 10250015603. Respectfully Submitted, William J. O'Neil City Engineer R A N C h 0 C U C A M 0 N G A ]~ N G IN E E E~I N G DE PA~TMI~N T Staff Report DATE~ July 11,2003 TO: Mayor and Members of the City Council Jack Lam, AICP, City Manager FROM: William J. O'Neil, City Engineer BY: Robert Lemon, Assistant Engineer SUBJECI': Authorize the execution of an Service Agreement for Wholesale Distribution Service with Southern California Edison Company by the city manager or his duly appointed representative for the provision of retail electric service by the Rancho Cucamonga Municipal Utility to new development within the Victoria Arbors Master Plan and immediately adjacent commemially zoned areas RECOMMENDATION: It is recommended the City Council authorize the execution of an Service Agreement for Wholesale Distribution Service with Southern California Edison Company by the City Manager or his duly appointed representative for the provision of retail electric service by the Rancho Cucamonga Municipal Utility to new development within the Victoria Arbom Master Plan and immediately adjacent commemially zoned areas. BACKGROUND/ANALYSIS: In response to the unstable energy situation in the State of California, the City of Rancho Cucamonga on August 31, 2001, authorized the creation and operation of a municipally owned utility for the purpose of providing various utility services. The purpose of this formation was to enable the City to explore options in dealing with energy issues at the local level. Subsequently, on August 21, 2002, the Redevelopment Agency authorized the filing of a Wholesale Distribution Access Tariff (WDAT) Application with Southern California Edison Company (Edison) for the potential provision of electric service to the Victoria Arbors development area by the Rancho Cucamonga Municipal Utility. Since the time, the City has entered into various agreements with Edison including two System Impact Study Agreements, a Facilities Study Agreement, and a Letter Service Agreement for the engineering, design, and procurement of related materials for the Edison-owned portion of the Arbors electric substation to be located at Rochester Avenue and Stadium Parkway. The execution of the Letter Service Agreement and posting of a previous deposit of $1,991,000, which was approved by Council on April 16, 2003, allowed Edison to expedite 7 CITY COUNCIL STAFF REPORT SERVICE AGREEMENT FOR WHOLESALE DISTRIBUTION SERVICE WITH SOUTHERN CALIFORNIA EDISON JULY 11,2003 PAGE 2 the design process for the City's project and begin work on the initial stages of the substation while the subsequent Interconnection Facilities Agreement (IFA) and Service Agreement for Wholesale Distribution Service was drafted and negotiated. The. drafting and negotiation of the Service Agreement now been completed and is presented to the Council for its approval. This agreement establishes the terms and conditions of service for the receipt of energy via Edison transmission system. This Service Agreement represents one of two final agreements required to complete the WDAT process. The other final and complementary agreement, the Interoonnection Facilities Agreement, has also been placed as a Consent Calendar item on the Agenda of the same City Council meeting at which the Service Agreement is being considered. It is recommended the City Council authorize the execution of an Service Agreement for Wholesale Distribution Service with Southern California Edison Company by the City Manager or his duly appointed representative for the provision of retail electric service by the Rancho Cucamonga Municipal Utility to new development within the Victoria Arbors Master Plan and immediately adjacent commercially zoned areas. Respectfully Submitted, William J. O'Neil City Engineer RESOLUTION NO. RA-03- O/b A RESOLUTION OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE A CORPORATE GUARANTY ON BEHALF OF THE CITY OF RANCHO CUCAMONGA FOR PAYMENT FOR CONSTRUCTION OF ELECTRIC DISTRIBUTION FACILITIES THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Southern California Edison Company ("Edison") has requested that the City of Rancho Cucamonga ("City") provide a guaranty for its payment obligation to Edison for the construction of electric distribution facilities. Section 2. Edison has agreed that the Rancho Cucamonga Redevelopment Agency ("Agency") may provide the guaranty to Edison for the City's payment obligation, and has requested that the Agency execute a Corporate Guaranty Agreement to guarantee the City's payment obligation. Section 3. The Chairman of the Agency is hereby authorized to execute the Corporate Guaranty Agreement which is attached hereto as Exhibit A to this Resolution. Section 4. The Agency Secretary shall certify to the passage and adoption of this Resolution, and this Resolution shall thereupon take effect and be in full force. PASSED, APPROVED, AND ADOPTED this th day of July, 2003. AYES: NOES: ABSENT: ABSTAINED: William J. Alexander, Chairman ATTEST: Jack Lam, Secretary 11244\0001\739745-1 I, JACK LAM, Secretary of the Rancho Cucamonga Redevelopment Agency of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the Redevelopment Agency of the City of Rancho Cucamonga, California, at a Regular Meeting of said Redevelopment Agency held on the __th day of July, 2003. Executed this__t~ day of July, 2003, at Rancho Cucamonga, California. Jack Lam, Secretary 11244\0001\739745-1