83R-434
RESOLUTION NO. 8 3R-4 34
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM,
CALIFORNIA, APPROVING THE EXECUTION OF THE INTERIM
SAN ONOFRE UNIT 2 OPERATING AGREEMENT AND AUTHORIZING
THE PUBLIC UTILITIES GENERAL MANAGER TO TAKE ALL
NECESSARY AND APPROPRIATE ACTIONS THEREUNDER.
WHEREAS, as of November 1, 1977, the City of Anaheim
("Anaheim"), Southern California Edison Company ("Edison"), San
Diego Gas & Electric Company ("SDG&E") and the City of
Riverside ("Riverside"), (collectively, the "Parties"), entered
into the San Onofre Units 2 and 3 participation Agreement
("Participation Agreement") providing, among other things, for
the participation by Anaheim in the ownership, construction and
operation of San Onofre Nuclear Generating Station ("San
Onofre") Units 2 and 3 and the Common Facilities; and
WHEREAS, the Participation Agreement provides, among other
things, that the Parties shall negotiate an operating agreement
covering the operation and maintenance of Units 2 and 3 and
that, except as mutually agreed, the operating agreement is to
provide for the operation and maintenance of Units 2 and 3 in
substantially the same manner as the Unit 1 Operating Agreement
provides for San Onofre Unit 1 as supplemented by the San
Onofre Units 2 and 3 Letter Agreement; and
WHEREAS, the Parties are negotiating an operating
agreement covering, among other things, the operation and
maintenance of San Onofre Units 2 and 3 and the Common
Facilities ("Operating Agreement"). However, San Onofre Unit 2
will be placed in service before the Parties have completed and
executed the Operating Agreement; and
WHEREAS, an Interim San Onofre Unit 2 Operating Agreement
has been negotiated by the Parties to provide for the operation
and maintenance of, and capital improvements for, Unit 2 and
the Common Facilities; and
WHEREAS, the City Council desires to authorize the Public
Utilities General Manager to take all necessary and appropriate
actions under the Interim San Onofre Unit 2 Operating Agreement.
NOW, THEREFORE, the City Council of the City of Anaheim
hereby resolves as follows:
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Ol06hl10483
8.40.1
1. The Interim San Onofre Unit 2 Operating Agreement,
attached hereto as Exhibit "A", is approved, and the Mayor and
City Clerk are authorized and directed to execute and attest to
the same.
2. The Public Utilities General Manager is hereby
authorized to take all necessary and appropriate actions under
said Agreement, including, but not limited to, appointing
representatives provided for in the Agreement or necessary to
the operation and maintenance of SONGS Unit 2 and the Common
Facilities.
THE FOREGOING RESOLUTION is approved and
Council of the City of Anaheim this 8th day of
ATTEST:
C?i:.L. j~
CITY CTIERK OF THE CIT OF ANAHEIM
APPROVED AS TO FORM:
0106hll0483
8.40.1
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INTERIM SAN ONOFRE UNIT 2 OPERATING AGREEMENT
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1. PARTIES: The Parties to this Interim San Onofre Unit 2
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Operatin~ A~reement ("Agreement") are: SOUTHERN CALIFORNIA
EDIS ON COMPANY, a Cali fornia corporation ("Ed i son"); SAN DIEGO
GAS & ELECTRIC COMPANY, a California corporation
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("San Diego"); CITY OF RIVERSIDE, a municipal corporation of
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the State of California ("Riverside"); and CITY OF ANAHEIM, a
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municipal corporation of the State of California ("Anaheim");
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individually, "Party" and, cOllectively, "Parties".
2. RECITALS:
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2.1 As of November 1, 1977, Edison, San Diego, Anaheim,
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and Riverside entered into the San Onofre Units 2 and 3
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Participation Agreement ("Participation Agreement") providing,
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among other things, for the participation by Anaheim and
Riverside in the ownership, construction, and operation of
Units 2 and 3 and the Common Facilities.
2.2 Section 6.6 of the Participation Agreement reads as
follows:
"6.6 Edison, San Diego, Riverside, and Anaheim shall
ne~otiate in good faith and execute an operating agreement
covering the operation and maintenance of Units 2 and 3.
Except as mutually a~reed or except as provided by this
Participation A~reement, said operating agreement shall
provide for the operation and maintenance of Units 2 and 3 in
substantially the same manner and under substantially the same
terms and conditions as the Unit 1 Operating Agreement
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1 I provides for Unit 1 as supplemented by the San Onofre Units 2
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2 I and 3 Letter A~reement. Edison shall be the Operatin~ Agent
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3 for Units 2 and 3. The Parties hereby appoint the Operating
4 A~ent as their agent, and the Operating Agent shall undertake
5 as their agent and as principal on its own behalf, to carry
6 out the duties and responsibilities provided hereunder to be
7 performed by it."
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2.3 The Parties are negotiating in good faith an
9 operating agreement covering, among other things, the
10 operation and maintenance of, and capital improvements for,
11 Units 2 and 3 and the Common Facilities ("Operating
12 Agreement"). It appears, however, that Unit 2 will be placed
13 in service before the Parties have completed and executed the
14 Operating A~reement.
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2.4 The Parties desire by this Agreement to provide for
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the operation and maintenance of, and capital improvements
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for, Unit 2 and the Common Facilities prior to the date as of
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which the Operating Agreement is executed.
3. AGREEMENT: The Parties agree as follows:
4. DEFINITIONS: In this Agreement, the following terms
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shall have the following meanings, exclusively:
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4.1 The terms Unit 1, Unit 2, Unit 3, Unit 1 Operating
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A~reement, Construction Agreement, Construction Costs,
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San Onofre Units 2 and 3 Letter Agreement, and Operating Agent
have the same meanin~s, respectively, that those terms have in
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the Participation Agreement.
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4.2 Common Facilities: Those facilities which shall
serve in connection with the operation of Units 1, 2, and 3
and which include, but are not necessarily limited to, the
administrative, warehouse and shop buildin~, including any
associated facilities installed therein for the use of all
three units; the security system; the sewage treatment plant;
the microwave facility and telecommunication facilities,
except for those that serve only Unit 1 or only Unit 2 and/or
Unit 3; the common fencing, beach walkway, bicycle path, and
landscaping; the on-site and off-site environmental monitoring
equipment; a portion of the railroad spur track; the plant
access roads; the probable maximum flood protection
facilities; the on-site and off-site emergency preparedness
facilities; the emergency operations facility and training
building; the automotive services garage; the medical
facility; the warehouses; the health physics facility; and
the domestic water connections.
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5.
INTERIM OPERATION AND MAINTENANCE: During the term of
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this Agreement, the operation and maintenance of Unit 2 and
the Common Facilities, and the rights, duties, and obligations
of the Parties with respect thereto, shall, except as provided
in the Participation Agreement, be as nearly as possible in
the same manner and as nearly as possible under the same
terms and conditions as the Unit 1 Operating Agreement
provides for Unit 1 as supplemented by the San Onofre Units 2
and 3 Letter Agreement. Such operation and maintenance
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includes, among other things, that Edison, as Operatin~ Agent,
2 shall operate, maintain, and make capital improvements to Unit
3 2 and the Common Facilities and the Parties shall share in the
4 benefits and burdens thereof, including the payment of their
5 shares of costs.
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6.
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7 I 6.1 This A~reement shall be effective as of Au~ust 8,
8 1983. Edison shall, during the period commencin~ August 8,
TERM OF THIS AGREEMENT AND TREATMENT OF CERTAIN COSTS:
9 1983 until the date when the California Public Utilities
10 Commission (CPUC) makes effective rates which reflect all or
11 part of the costs of Unit 2, determine costs hereunder, and
12 bill the other Parties for their shares thereof, as if such
13 costs were Construction Costs under the Construction
14 Agreement. On and after said latter date, Edison shall
15 determine costs and bill the other Parties as provided for
16 hereunder.
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6.2 Unless otherwise agreed by the Board of Review
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members to be appointed by the Parties hereunder, this
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Agreement shall terminate on the earlier of (1) December 31,
1983 at 11:59 p.m. or (2) the date as of which the Operating
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A~reement is executed.
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COMPLETION OF THE OPERATING AGREEMENT: The Parties shall
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continue in good faith to complete ne~otiations of, and
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execute, the Operatin~ Agreement as promptly as possible.
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BILLING ADJUSTMENTS: Within 60 days after the Operatin~
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Agreement is executed, Edison shall make adjustments to any
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billings made under this Agreement (except those billings
2 hereunder that are for costs which, pursuant to Section 6.1
3 hereof, are to be treated as Construction Costs under the
4 Construction Agreement) so that cost sharing among the Parties
5 will be in accordance with the provisions of the Operating
6 A~reement. With respect to billings due on or before November
7 1, 1983, such adjustments shall not include interest. With
8 respect to billings due after November 1, 1983, such
9 adjustments shall include interest from the date payments were
10 due under this A~reement to the date such adjustments are due.
11 The amount of interest due shall be determined on a daily
12 basis (with no compounding) using the annualized Bank of
13 America NT & SA prime interest rate minus one (1) percent in
14 effect on that day. This provision for interest shall not
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apply to any adjustments made in a subsequent calendar year
for the purpose of adjusting expenses associated with payroll
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taxes, pensions and benefits, and administrative and general
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expenses from an estimated to a recorded basis.
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9. AGREEMENT AND SIGNATURE: The Parties have caused this
2 A~reement to be executed on their behalf and the si~natories
3 hereto represent that they have been duly authorized to enter
4 into this Agreement on behalf of the Party for whom they sign.
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APP~OVED A~ TO F:OP-M
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1~. f .1983
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ATTEST:
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eity Clerk ..
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By
Its
Date
By
Its
Date
BV
Its
Date
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By
Date
SOUTHERN CALIFORNIA EDISON COMPANY
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SAN DIEGO GAS & ELECTRIC COMPANY
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Mana~emen~
Vice President-Resource
September l6, 1983
CITY OF ANAHEIM ~
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Mavor
November 8. 1981
CITY OF RIVERSIDE
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