HomeMy WebLinkAbout1993-136 Agrmt - BPA No DE-MS79-92BP93666 AUTHENTICATED COPY
• Contract No. DE-MS79-92BP93666
10-23-92
REIMBURSABLE AND O&M AGREEMENT
executed by the
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
acting by and through the
BONNEVILLE POWER ADMINISTRATION
and
THE CITY OF ASHLAND
Index to Sections
---------------------------------------------------------------.---------------------------------------------------
• Section................................................................................................................Page
1. Term of Agreement............................................................................................
2. Exhibits...........:........................................................................................................3
3. Revision of Exhibits...............................................................................:.................3
4. Reimbursable Work...................................:.............................................................4
5. Removal of Facilities................................................................................................6
6. Salvage.....................................................................................................................6
7. Duties of Bonneville.................................................................................................7
8. Duties of the City.....................................................................................................'7
9. Extension of Time....................................................................................................7
10. Ownership of Facilities............................................................................................7
11. Operation, Maintenance, and`Removal of Facilities by Bonneville and
PaymentTherefor....................................................................................................8
12. Operation, Maintenance, and Removal of Facilities by the City and
PaymentTherefor....................................................................................................9
13. Hazardous Materials............................................................................................. 11
14.Permit.........................:.......................................................................................... 12
15. Liability ...............................................................................................................12
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Exhibit A(Provisions Required by Statute or Executive Order, dated 3/16/82) .........3
Exhibit B (Reimbursable Work)....................................................................................3
Exhibit C (Facilities Operated and Maintained by Bonneville at City
Expense)...................................................................................................................3
Exhibit D (Facilities Operated and Maintained by the City at Government .
Expense)...................................................................................................................3
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This REIMBURSABLE AND O&M AGREEMENT (Agreement), executed
April 1 . 19Dby the UNITED STATES OF AMERICA(Government),
Department of Energy, acting by and through the BONNEVILLE POWER
ADMINISTRATION (Bonneville), and THE CITY OF ASHLAND (City), a municipal
corporation of the State of Oregon,
WITNESSETH :
WHEREAS the parties hereto, on December 18, 1981, executed a power sales
• contract, designated as Contract No. DE-MS79-81BP90432 (which, as amended or
replaced, is hereinafter referred to as "Power Sales Contract") which provides for the
sale to the Utility of its firm power requirements by Bonneville; and
WHEREAS the City may, from time to time, request Bonneville to design,
construct, and install City facilities, including any component thereof, which are
interconnected with the Federal Columbia River Transmission System (FCRTS);
and
WHEREAS the parties hereto desire to provide for such design, construction, and
installation upon the approval of Bonneville when the parties determine that such
design, construction, and installation are mutually beneficial; and
WHEREAS, from time to time, the parties wish to provide for Bonneville to
operate and maintain facilities owned or leased by the City, and for the City to
operate and maintain facilities owned or leased by Bonneville as set forth in this
• Agreement; and
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• WHEREAS Bonneville is authorized pursuant to law to market electric power
and energy generated at various federal hydroelectric projects in the Pacific
Northwest, or acquired from other resources, to construct and operate transmission
facilities, to provide transmission and other services, and to enter into agreements to
carry out such authority;
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Term of Agreement. This Agreement shall be effective at 2400 hours on the
date of execution(Effective Date) and shall continue in effect until terminated by
either party upon one-year written notice to the other. All liabilities incurred
hereunder shall be and are hereby preserved until satisfied.
2. Exhibits. Exhibits A through D are hereby made a part of this Agreement.
In Exhibit A, the City shall be the "contractor".
3. Revision of Exhibits.
• (a) Exhibit B: Reimbursable work. Bonneville shall prepare, for execution by
the parties hereto, an additional table to Exhibit B each time the parties agree .
that additional work is to be performed hereunder. Such table shall specify the
facilities to be installed, the work to be performed by each party, the
reimbursable amount, terms of the ownership of facilities, and provisions for
operation and maintenance.
Upon execution by the parties, each additional table to Exhibit B shall be
attached to and deemed to be. a part of this Agreement and shall be effective on
the date specified therein.
(b) Exhibits C and D: Operation and Maintenance. Tables may be added to
Exhibits C and D, or existing tables of such exhibits may be revised, to add or
delete facilities and equipment to be operated and maintained as the parties may
. agree. Each such table shall specify the facilities to be operated and maintained,
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• location of the facilities, ownership of facilities, annual operation and
maintenance charges, and monthly operation and maintenance payments.
Upon execution by the parties, new or revised tables to Exhibits C and D
shall be attached to and deemed to be a part of this Agreement and shall be
effective on the effective date specified therein.
If Bonneville or the City, as appropriate, determines that the charges
specified in Exhibit C or D must be adjusted to conform to each such party's
current costs of operating and maintaining like facilities, such party may revise
such charges upon 90 days written notice to the other party,but not more often
than once every 12 months provided, however, that any revisions to such charges
shall be by mutual consent of the parties. A revised Exhibit C or D incorporating
such revised charges shall be prepared by Bonneville and made a part of this
• Agreement effective as of the date specified in such notice.
4. Reimbursable Work.
(a) The City hereby agrees to pay to Bonneville an amount, equal to the
estimated cost to Bonneville of performing the work specified in each table of
Exhibit B, to be held in an account (Account) established for this Agreement.
Such amount shall be used only for payment of the actual cost, including
overhead costs, of performing the duties pursuant to sections 6 and 7 which are
to be done at the City's expense and shall be specified in each such table of
Exhibit B. The City shall make payments as provided in the appropriate table of
Exhibit B, in amounts and at the times requested by Bonneville. If at any time
Bonneville determines that such amounts are insufficient to pay the actual cost
of completing Bonneville's duties, the City shall advance to Bonneville, when
Bonneville, upon written notice, requests and in such installments as may be
• specified by Bonneville, such additional moneys as Bonneville estimates shall be
required for such completion. If payments are not received on the scheduled due
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• date, Bonneville may (1) stop work in progress, or (2) accrue interest on the
amount due from the scheduled due date to the date paid at the higher of the
Department of Treasury's current value of funds rate or the Bonneville cost of
borrowing rate, or(3)both.
(b) The cost of performing the work and furnishing the materials referred to
in section 7, as such work and materials relate to the appropriate table of
Exhibit B, shall be proper and reasonably incurred charges against the Account,'
and shall be determined by charging the cost elements exclusive of interest in
the same reasonable and prudent manner as if Government funds were being
expended, including among other items, salaries and wages and employee
benefits, materials and supplies, equipment rental and associated depreciation
and transportation costs, and an overhead rate specified in such table in
Exhibit B.
• (c) If at any time Bonneville requests the City to advance additional moneys
pursuant to subsection 4(a) for work specified in a table of Exhibit B, Bonneville
shall, within a reasonable time after the City so requests, make a full accounting
to the City showing the receipts, expenditures, adjustments for salvage values,
and the balance of the Account. Bonneville shall, at the same time, submit a
statement to the City showing in detail Bonneville's estimate of the additional
moneys required to pay the cost of completing Bonneville's responsibilities as
specified in section 7.
(d) Within a reasonable time after completion of the work specified in each
table of Exhibit B for which the Account has been established pursuant to the
terms hereof, Bonneville shall make a full accounting in regard to such work to
the City showing the receipts, expenditures, adjustments for salvage vah-. s, and
• the balance of the Account. Bonneville shall remit to the City any unexpended
balance of the Account within a reasonable time thereafter or bill the City for
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• any appropriate costs in excess of the deposits in the Account. The City shall pay
any excess costs within 30 days of the date of the bill.
5. Removal of Facilities.
(a) If requested by the City, or if Bonneville determines it is necessary,
Bonneville shall, at the City's expense, remove and'return to the City the
salvable facilities which are owned by the City as described in Exhibit C. After
such removal, Bonneville may, at the City's expense, return the Government's
facilities altered under the terms of this Agreement to the configuration existing
before this Agreement was executed, or as mutually agreed by the parties. Any
payment made by the City under this subsection shall be under the Account,
pursuant to the provisions of section 4.
(b) If Bonneville requests, or if the City determines it is necessary, the City
• shall, at Bonneville's expense, remove and return to Bonnevill e the salvable
facilities which are owned by the Government, as described in Exhibit D. After
such removal, the City may, at Bonneville's expense, return the City's Exhibit D
facilities altered under the terms of this Agreement to the configuration existing
before execution of this Agreement, or as mutually agreed by the parties. Any
payment made by Bonneville under this subsection shall be under the Account,
pursuant to the provisions of section 4.
6. Salvage. At any time before completion of the duties specified in each table
of Exhibit B, the City upon written notice to Bonneville, may elect to have the
salvable equipment installed pursuant to such table, removed and returned to the
owner. In such event, Bonneville will cease all work performed pursuant to such
table and proceed (1) with removal and restoration of the facilities altered
hereunder, or (2) as agreed to by the parties. The City shall advance to Bonneville,
. when Bonneville so requests and in such installments as Bonneville may specify,
any additional moneys Bonneville estimates shall be required for such work. Any
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• uncommitted funds remaining in the Account on the effective date of the City's
election to remove and salvage facilities shall be applied to Bonneville's cost of such
removal.
7. Duties of Bonneville.
(a) Bonneville shall perform the duties specified for it in each table of
Exhibit B.
(b) All work done at the City's expense hereunder shall be performed in
whole or in part by force account, by contract, or by both, in the same manner
and subject to the same limitations as if all funds being expended therefor were
Government funds.
8. Duties of the City.
(a) The City shall perform the duties specified for it in each table of
Exhibit B.
• (b) The City may perform such duties in whole or in part by force account, by
contract, or by both, in accordance with prudent utility practices.
9. Extension of Time. Completion dates specified for either party in each table
of Exhibit B shall be extended for a time equivalent to such delays, if any, as are
caused by events which such party could not have reasonably avoided by the
exercise of reasonable diligence and foresight.
10.Ownership of Facilities.
(a) Title to and ownership of facilities shall be as specified in each table of
Exhibit B, except those parts of such facilities that cannot be removed without
irreparable damage to Government property. Title to and ownership of such
excepted parts shall be and remain in the Government.
(b) The City shall identify its facilities ins`iMod in Government facilities
• under each table of Exhibit B by permanently affixing thereto suitable markers
plainly stating that the property so identified is owned by the City.
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• 11 Operation Maintenance and Removal of Facilities by Bonneville and
Payment Therefor.
(a) Bonneville will consult with the City prior to any planned outage of
equipment for maintenance to determine:
(1) the length of a mutually acceptable period of time, prior to the outage,
required by the City to prepare for the outage and
(2) the length of a mutually acceptable period of time in which to
accomplish the required maintenance.
(b) Bonneville, at the City's expense, shall:
(1) operate and maintain the City's facilities, described in Exhibit C, in
the same manner in which Bonneville operates and maintains similar
facilities of the Government; and
• (2) operate and maintain the Government's power system control
facilities which are necessary to integrate the City's facilities, described in
Exhibit C, with the Government's control system and, from time to time,
when Bonneville determines it is necessary pursuant to subsection 11(0,
modify or replace such Government power system control facilities.
(c) The City shall, for such maintenance specified in subsection 11(b)(1)
above and upon election by Bonneville, either:
(1) provide all replacement parts at City expense;
(2) reimburse Bonneville for parts Bonneville may provide; or
(3) replace such parts, provided by Bonneville, in kind at City expense.
(d) In the event of a major failure of any of the facilities specified herein, the
parties shall use every reasonable effort in good faith to negotiate and execute a
mutually acceptable agreement providing for the replacement, repair, or removal
. of City owned or leased equipment at City expense.
8
• (e) Commencing on the Effective Date specified in Exhibit C, the City shall
pay Bonneville the monthly payment specified in Exhibit C for the duties
specified in subsection 11(b) above. Except for the cost of the replacement parts
pursuant to subsection 11(c) above, and major failure described in
subsection 11(d) above, such monthly payment shall constitute payment in full
for the cost of the operation and maintenance during each month. Billing for
these services shall be included in the Wholesale Power Bill. If service is for less
than or more than the normal billing month, the monthly payment stated in
Exhibit C shall be adjusted appropriately. Payments made by the parties under
this subsection shall not be part of the Account.
(f) The City agrees to bear the cost of modifying or replacing any of the
power system control facilities associated with the City's facilities specified in
• Exhibit C if and when Bonneville notifies the City that such action is necessary
to make the operation of such facilities compatible with the operation of
Government facilities. Bonneville shall provide reasonable written notice to the
City consistent with the availability of facilities and budgetary planning. Any
such modification or replacement of facilities shall be required only (1)when
Bonnevill e, in keeping with prudent utility practice, replaces or modifies similar
facilities owned by the Government at the same location; (2) as a part of a
programmed project involving a significant portion of the Government's system;
or (3) by mutual agreement of the parties.
12 Oneration Maintenance and Removal of Facilities by the City and Payment.
Therefor.
(a) The City will consult with Bonneville prior to any planned outage of
equipment for maintenance to determine:
. (1) the length of a mutually acceptable period of time, prior to the outage,
required by Bonneville to prepare for the outage and
9
• (2) the length of a mutually acceptable period of time in which to
accomplish the required maintenance.
(b) The City, at the Government's expense and as described in Exhibit D,
shall:
(1) operate and maintain the Government's facilities, described in
Exhibit D, in the same manner in which it operates and maintains similar
facilities of the City; and
(2) operate and maintain the City's power system control facilities, which
are necessary to integrate the Government's facilities, described in Exhibit D,
with the City's control system and, from time to time, when the City
determines it is necessary pursuant to subsection 12(o,. modify or replace
such City power system control facilities.
• (c) Bonneville shall, for such maintenance specified in subsection 12(b)(1)
above and upon election by the City, either:
(1) provide all replacement parts at Bonneville expense;
(2) reimburse the City for parts the City may provide; or
(3) replace parts, provided by the City, in kind at Bonneville expense.
(d) In the event of a major failure of any of the facilities specified herein, the .
parties shall use every reasonable effort in good faith to negotiate and execute a
mutually acceptable agreement providing for the replacement, repair, or removal
of Government owned or leased equipment at Government expense.
(e) Commencing on the Effective Date, specified in Exhibit D, Bonneville
shall pay the City the monthly payment specified in Exhibit D for the duties
specified in subsection 12(b) above. Except for the cost of the replacement parts
pursuant to subsection 12(c) above, and major failure described in
• subsection 12(d) above, such monthly payment shall constitute payment in full
for the cost of operation and maintenance during each month. Payment for these
10
• services will be included in the Wholesale Power Bill. If service is for less than or
more than the normal billing month, the monthly payment stated in Exhibit D
shall be adjusted appropriately. Payments made by the parties under this
subsection shall not be part of the Account.
(� Bonneville agrees to bear the cost of modifying or replacing any of the
power system control facilities associated with the Government's facilities
specified in Exhibit D if and when the City notifies Bonneville that such action is
necessary to make the operation of such facilities compatible with the operation
of City facilities. The City shall provide reasonable written notice to Bonneville
consistent with the availability of facilities and budgetary planning. Any such
modification or replacement of facilities shall be required only (1) when the City,
in keeping with prudent utility practice, replaces or modifies similar facilities
• owned by the City at the same location; (2) as a part of a programmed project
involving a significant portion of the City's system; or (3)by mutual agreement of
the parties.
13.Hazardous Materials.
(a) Bonneville shall, at the City's expense, assure compliance with
Bonneville's polychlorinated biphenyl (PCB) policy and guidelines, as well as any
other Bonneville hazardous material policies and guidelines which are in effect
at the time Bonneville performs the duties specified in sections 7 and 11 above.
(b) The City shall, at Bonneville expense, assure compliance with
Bonneville's polychlorinated biphenyl (PCB) policy and guidelines, as well as any
other Bonneville hazardous material policies and guidelines which are in effect
at the time the City performs the duties specified in sections 8 and 12 above.
(c) The parties agree to comply fal'_y with the substantive requirements of all
• applicable federal, state, and local environmental laws and to mitigate and abate
adverse environmental impact accordingly. The City shall assure compliance
• with Bonneville's adopted policy and guidelines for secondary oil containment in
substations. Each party shall be responsible for the cost of compliance incurred
for their own facilities, even when those facilities are located on the property of
the other party.
14. Permit. Each party grants to the other party a permit to, among other
matters, enter the property of the other to construct, install, test, maintain, inspect,
replace, operate, and remove facilities associated with this Agreement.
16. Liability. Bonneville and the Board agree that neither party is the agent or
principle for the other and the parties agree that they will not represent to any other
party that they act in the capacity of agent or principal for the other.
•
•
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• IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
several counterparts.
UNITED STATES OF AMERICA
Department of Energy
Bonneville Power Administration
/s/ GEORGE E. BELL By L Y
Lower Columbia Area Manager Lower Co mbia Area Manager
Name-c7-.e a-',,sz Ili. 1
r r c or Type
April 1, 1993 Date:
THE CITY OF ASHLAND ��/�
By ^ `°�'`-� /s/ CATHERINE M. GOLDEN
Name Gv 6k L-,
Print or Type
Title Mayor Mayor
• Date March 17, 1993
ATTEST:
By!, / /s/ NAN E. FRANKLIN
Name' r✓r�i✓ �` �.�i�U /iii'
Print or Type
Title nil✓ TEWe2• City Recorder
Date -27-/7—yam March 17, 1993
(LG-CRG_GEN.RAS)
•
13
J
• Exhibit B
Table 1, Page 1 of 1
Contract No. DE-MS79-92BP93666
The City of Ashland
Effective at 2400 hour's on the
Effective Date
Reimbursable Work
[None]
(W-CRO_GEN.RAS) .
•
• J
14
• Exhibit C
Table 1, Page 1 of 1
Contract No. DE-MS79-92BP93666.
The City of Ashland
Effective at 2400 hours on the
Effective Date
Facilities Operated and Maintained by Bonneville at City Expense
1. On November 27, 1991, the City picked up load through Bonneville's mobile
transformer bank and the City's bus voltage regulator installed in PacifiCorp
Electric Operations' (Pacific) Ashland Substation. In exchange for the benefits that
Bonnevill e will receive from having the voltage regulator installed at this point of
delivery, Bonneville agrees that the monthly payment pursuant to section (11) (e)
hereof for regulator maintenance shall be zero. It is also the intent that Bonneville
will maintain the voltage regulator with no monthly payment by the City if the
regulator is relocated to another location.
2. Bonneville's responsibility is limited to routine preventive maintenance.
Major failure of the regulator will be handled pursuant to subsection 11(d) of this
agreement.
• Annual 0&M
Location Facility Charge
Pacific's Ashland City's Bus Voltage Regulator no charge
Substation
Total no charge
Annual Charge for Operation & Maintenance: no charge 1/
Monthly Payment: no charge
1/ The annual charge for operation and maintenance has been adjusted to allow
12 equal monthly payments.
(LG-CRO_GEN.RAS)
•
15
• Exhibit D
Table 1, Page 1 of 1
Contract No. DE-MS79-92BP93666
The City of Ashland
Effective at 2400 hours on the
Effective Date
Facilities Operated and Maintained by the City at Government Exuense
[None]
(LG-CRO_GEN.RAM
•
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