REPORT TO COUNCIL
SUBJECT
Title
Action on Addition of Five Electric Program Manager Positions in Silicon Valley Power and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara’s Electric Utility, Silicon Valley Power (SVP), has provided dependable electric service for 125 years. SVP’s current peak load is about 600 MW and provides nearly 4,110 Gigawatt-hours (GWh) a year to SVP’s customers. Additional projects have received entitlements with the City of Santa Clara which represents an increase of 618 MW. Based on SVP’s experience with how new load develops, SVP is preparing for its system peak load to double over the next 10 years and increase the number of substations from twenty-three (23) to up to thirty-three (33) by 2026.
Over the last two years, staff has continued to review the overall organization to determine opportunities to fill in gaps and enhance services. In addition, staff has focused and started implementing proactive maintenance programs throughout the Utility. The Council has taken a number of actions approving new programs, new positions, new power purchase agreements, new master agreements for services such as engineering, routine maintenance, and repair services, and additional actions including accepting the new $300 million system expansion capital program to rehabilitate/replace obsolete facilities and accommodate future growth.
The five proposed positions will support existing needs, continue to implement and expand proactive maintenance, and will also help to facilitate future expansion. The proposed positions are for four Electric Program Managers (Job Code 424) in the Operations Division and one Electric Program Manager (Job Code 424) in the Business Services Division. The five positions will provide services in:
• Safety
• Environmental Compliance
• Business Services and Contracts
• Operations
o Transmission and Distribution
o Substations
DISCUSSION
Electric Program Manager (Safety) (Job Code 424)
Based on the size and scope of SVP, it is unusual that SVP doesn’t currently have a qualified full-time safety officer. The type of work and number of employees would be better served by having this full-time position. A summary of the type of items (not comprehensive) the position will focus on are:
• Injury Illness Prevention Program (IIPP) (required by CCRT8 sec3203)
• Implementation of IIPP programs across the Utility
• Qualified Electrical Worker (QEW) Program/Policy
• Development of a comprehensive and regulatory compliant Utility Safety Program OSHA Standard 1910.269, CalOSHA Title 8, US Department of Transportation which includes:
• Update of 104 individual and unique Safety Standards across SVP
• Identification and correction of potential deficiencies that could lead to violations and injuries if unidentified or unresolved
• Implementation of Utility wide Safety Training Program
In addition, the Safety Electric Program Manager will hold regular utility wide safety meetings, mentor managers and supervisors in performing job hazard analysis, safety audits, incident investigations, and implementing a Safety-First culture.
Electric Program Manager (Environmental Compliance) (Job Code 424)
Similar to the Safety Electric Program Manager it is unusual that SVP doesn’t currently have a qualified full-time Environmental Compliance Electric Program Manager based on the size and scope of SVP. The type of work performed by a full-service electric utility requires a significant number of environmental permits. SVP’s compliance would be best served by a full-time position focused on management of compliance with environmental regulations and permits. A summary of the type of items (not comprehensive) the position will focus on are:
• Generation Plant Air Permit Compliance (40CFR Part 60 and 75) including:
• Continuous Emission Monitoring Compliance Program
• Environmental Protection Agency (EPA) Title 5 compliance
• Generation Plants and Substations Department of Toxic Substances Control
• Certified Unified Program Agencies (CUPA) requirements including:
• Spill Prevention Control and Countermeasure (SPCC) plans maintenance and updates
• Hazardous Materials Business Plan (HMBP’s) maintenance and updates
• Identification and correction of potential violations of Above Ground Petroleum Storage Act (APSA) violations for spill prevention
• Substation Sulfur Hexafluoride Gas Monitoring
• Stormwater Permits at Generation Plants and Substations
• Certified Unified Program Agencies (CUPA) Inspections at Northern CA Plants
• Wastewater Permit Compliance
Electric Program Manager (Business Services and Contracts) (Job Code 424)
Over the last 18 months staff has completed an incredible amount of work in formalizing contracts and formalizing the contract process within SVP, and the work continues to increase. In the last 18 months staff has:
• Completed over 500 contracts items including contracts for services, substation agreements, power purchase agreements, leases, spare parts, and interconnection agreements.
• Over 50 solicitations and over 150 contracts associated with services
This list will continue to grow as existing contracts expire and new programs are needed or are developed, especially additional contracts to support growth and improved preventative maintenance. Currently SVP has:
• Over 70 pending purchasing solicitations including bids, requests for proposals, evaluation of cooperative purchase options, or similar solicitations.
• 80 pending contracts in the Operations Groups alone.
The new position is needed to support the current level of work and future work.
Electric Program Manager (Operations) (Job Code 424)
The proposed Electric Program Manager positions in the Operations Division will be allocated to the Substations Division and Transmission and Distribution (T & D) Division. Both groups already provide a great level of service with minimal outages, but additional management is needed to implement proactive maintenance and develop and manage associated contracts and services.
In Substations and T & D there are currently 52 positions with only two managers. This does not provide enough management support to complete all day-to-day supervision while also comprehensively manage contracts and other administrative issues such as human resources, capital projects, and budget. Without the additional positions, SVP will not have the ability to continue the new proactive maintenance approach, provide appropriate contract support, and continue other critical management activities while meeting and maintaining all day to day activities.
While the two positions will provide staff supervision support, the focus will be on contract execution and management. As noted above, there are over 80 pending contracts within operations.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(2) in that it is an administrative activity (personnel-related action).
FISCAL IMPACT
The cost to add five (5) FTE Electric Program Managers (Job Code 424) is estimated at $1,500,000 annually including salaries and benefits. These costs will be funded by the Electric Utility Operating Fund using customer service revenue to support ongoing maintenance with no impact to the General Fund.
A budget amendment to appropriate funds for new positions from the Electric Utility Operating Fund for the remainder of Fiscal Year 2021/2022 is detailed below. The funding covers position costs for three months of the current fiscal year and factors in time for the hiring process.
Budget
FY 2021/2022
|
Electric Utility Operating Fund (091) |
|
|
|
|
|
|
|
Current |
Increase/(Decrease) |
Revised |
|
Expenditures |
|
|
|
|
Electric Department |
$52,256,025 |
$375,000 |
$52,631,025 |
|
Salaries and Benefits |
|
|
|
|
|
|
|
|
|
Unrestricted Ending |
$121,198,721 |
($375,000) |
$120,823,721 |
|
Fund Balance |
|
|
|
Appropriations needed in future years will be requested as part of the regular biannual budget process.
Consistent with City Charter Section 1305, “At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least five members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenue not included in the budget…”
COORDINATION
This report has been coordinated with the Finance Department, Human Resources, and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Approve the addition of five (5) new Electric Program Manager (Job Code 424) Positions in Silicon Valley Power; and
2. Approve a FY 2021/22 budget amendment in the Electric Utility Operating Fund to increase the Electric Department Salaries and Benefits appropriation by $375,000 and reduce the unrestricted ending fund balance by $375,000 (five affirmative Council votes required for the use of unused balances.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager